On the impact of fiscal federalism models on the organization of inter-budgetary relations

The federal structure of the state has a direct impact on the functioning of financial and legal regulation, in particular budgetary regulation, often complicating it. There are questions regarding the differentiation of subjects of reference, the formation of revenue and the fulfillment of expenditure obligations, etc. The models of fiscal federalism that exist in the economies of various countries have special institutional characteristics. Moreover, certain forms of federalism are often modified in terms of the division of powers between levels of government and subjects of jurisdiction, and the reform of the state’s tax system. Budgetary federalism as a form of organization of budgetary relations and a way of governing the state allows us to harmoniously combine both the interests of the federation and the subjects, communities at the local level in the performance of assigned functions in conditions of independence of all budgets. The article presents theoretical and practical issues of the influence of models of budgetary federalism on the organization of inter-budgetary relations in the system of implementation of state financial policy.