Budget parameters of metropolises and their impact on the economic development of regions

Currently, metropolises are making a great contribution to the development of regions. It is assumed that the development of urban finance is a prerequisite for accelerating regional development. The study focuses on such tasks as comparing the budget parameters of metropolises, assessing the interrelationships of transferring tax regulations beyond the mandatory minimum to city budgets, receiving large amounts of targeted transfers and the level of economic development of regions. The budget indicators of 14 Russian million-plus cities are analyzed. It is revealed that the level of development of the region, which was assessed based on the indicators of the gross regional product and ratings of scientific and technological development, has no stable relationship with the structure of tax revenues of the administrative center. At the same time, there were practically no significant changes in this area over the five-year period. The receipt of intergovernmental transfers is also largely determined by the established patterns of interaction between authorities at various levels, rather than economic expediency. In this case, the “rut effect” is clearly manifested, when the established practice is repeated throughout the period under consideration. As a result, it was concluded that large cities do not receive sufficient budgetary incentives to promote the economic, scientific and technological development of the regions, the potential for budgetary interaction with these cities is underutilized, and it is affected by the “rut effect”. It seems advisable in future studies to pay attention to the formation of recommendations to federal authorities and authorities of constituent entities of the Russian Federation on improving budgetary cooperation with local governments of cities that are drivers of innovative development of territories.