Finances of public legal structure as part of regional financial system (on the example of the Republic of Karelia)

Theoretical basics of the essence and structure of the regional financial system are considered. Key parameters of the regional social and economic development, on the example of the Republic of Karelia, characterizing finances of the territory are analyzed. Dynamics and structure of the income and expenses of the budget of Karelia and the budget of Karelian territorial fund of obligatory medical insurance are studied. The structure and dynamics of the state credit and a public debt of the Republic of Karelia are considered. Despite a certain growth of profitable receipts in the budget, growth rates of the expenses increase too. Such financial dynamics leads to the growth of the budget deficit, and, as a result, to the growth of the public debt of Karelian republic. The structure of Karelian budget income consists from taxes which make up 2/3 of the budget income. At the same time a share of uncompensated receipts tends to decrease. The biggest portion of finances is spent on social needs, health care, and education, which speaks about social orientation of the budget. A budget of Territorial fund of obligatory medical insurance is accepted in the balanced condition and has doubled for the last three years. Results of the conducted analysis helped to reveal the main problems of the functioning financial system.