The balance of economic interests of Russian regions as subjects of intergovernmental fiscal relation

Issues of the state of the intergovernmental relations system in Russian Federation are raised in the article on the example of the regions of the North Caucasus Federal District (NCFD), the revenue base of the consolidated budgets of the subjects of the NCFD is analyzed on the basis of official statistics. It is become apparent that the regions of the North Caucasus don’t have sufficient financial independence, since the bulk of their income is financial assistance from a higher budget Consequently, and tax revenues are underutilized. In order to identify additional opportunities for budget replenishment of these subjects, income sources studied the system. The authors came to the conclusion that the share of taxes accumulated in the North Caucasian Federal District and credited to the federal budget is so small that it is unable to provide financial independence even if they are sent to the consolidated budgets of the subjects themselves. Based on the analysis, it was concluded that the regions are losing motivation to expand their own revenue base, and this requires improving the system of intergovernmental relations aimed at increasing the financial independence of the subjects of Russian Federation both by searching for the optimal model for redistributing the resources accumulated by the state and increasing the tax potential of the studied regions.