Mechanism for distribution of budget funds: essence, goals and objectives

The relevance of this study is due to the need to transform the mechanism for distributing budget funds due to a decrease in its effectiveness in Russia due to sanctions pressure and the increased influence of internal and external risks. The mechanism for distributing budget funds is intended to provide subjects of budgetary relations with additional financial resources for the implementation of the goals of tax, social, economic, budget policy, as well as for the implementation of other goals. At the same time, in recent years, due to increased pressure on the state budget, excessive centralization of budget revenues leads to budget deficits at other levels. Additional research is required in the field of distribution of budget funds and the search for new, more effective distribution mechanisms, which, first of all, will increase the independence of subjects of budgetary relations. In this study, the author analyzed the essence of the mechanism for distributing budget funds, proposed expanding the list of principles for distributing budget funds through the edition of the Budget Code of the Russian Federation, and also substantiated the need for its transformation. The article states that today the regions of the country do not have a sufficient level of budgetary independence, and therefore need to receive budget transfers. In order to increase the stability of the budget system and the efficiency of the distribution of budget funds, a revision of the mechanism for the distribution of budget funds is required in the long term for the purpose of its conceptual and qualitative transformation.