Financial stability of regional budgets in conditions of cyclic development of the Russian economy. Part 1

This article is devoted to a comparative analysis of the financial stability of the development of regional budgets of certain constituent entities of the Russian Federation - Rostov Region, Republic of Kalmykia and Orel Region in comparison with the dynamic fluctuations of Russia’s economic development over the period 2010-2019. The relevance of the research topic is due to the need to create a methodology for assessing the financial stability of regional budgets of the constituent entities of the Russian Federation. The purpose of this scientific article is to studyand test the methodology suggested by the authors for the analysis of financial stability of regional budgets of Russia in the process of cyclical changes in the financial and economic environment of the national economy, as well as to demonstrate its practical application. The regional budgets of such constituent entities of the Russian Federation such as Rostov Region, Republic of Kalmykia, which are part of the Southern Federal District, and Orel Region, which is a constituent entity in the Central Federal District, were selected as the objects of the study. The authors define the subject of research as a system of financial and economic indicators that characterize the implementation of regional budgets of territorial units under analysis in the period 2010-2019. The obtained statistical data for the regions under analysis will be used in the subsequent material for the tests of the suggested methodology. When choosing the criteria for the assessment of the independence of the regional budget, the authors rely on the fundamental budget parameters, including its effectiveness, financial stability and balance of the revenue and expenditure parts of the budget. When analyzing the dynamics of the level of stability of the regional budgets of Rostov region, Republic of Kalmykia and Orel region, it was found that the region with a more developed social and economic infrastructure is more comfortable with cyclical shifts in the national economy (with the least losses, both for further development prospects of the region and for the population living in this territory). For regions where the social and economic situation is deteriorating, economic crises in the country have a multiplier effect, increasing both the gap in comparison with the developed regions of the Russian Federation, and the degree of imbalance of the regional economy and finance.