Fiscal capacity of the regions in the Northwestern federal district

The policy of rigid centralization of financial resources and an incessant revision of spending powers in the vertical power structure lead to the decrease in the degree of fiscal capacity of the NWFD regions at the expense of own financial resources against the background of unstable foreign economic situation and the danger of another wave of recession in the domestic economy. The article analyzes the situation concerning the NWFD consolidated budgets in 2006–2012. It proposes a number of measures, which should enhance the fiscal capacity of the NWFD regions.