Budgetary federalism as an auxiliary factor of inter-budget relations

The article deals with the interaction of the subjects of budgetary relations of the Russian Federation and the municipalities. The author describes the role of budgetary federalism acting as a legal regulator of different aspects of inter-budget relations. It is emphasized that implementation of the distribution function of interbudget relations is a mechanism allowing to maintain the stability of the budget system of the Russian Federation. It is concluded that the financial mechanism is intended to determine the replenishment and balance of budgets, and exploit the distribution function of the inter-budgetary relations.