Allocation of interbudgetary transfers in the Vologda oblast: practice and efficiency

The article raises one of the most urgent issues in the budgetary system of the region - increase in the efficiency of interbudgetary transfers, allocated to municipalities. It substantiates the necessity of new methodological approaches to the assessment of effective interbudgetary relations in the regions. It reveals that the present order of distribution of interbudgetary transfers has some significant drawbacks. The work draws attention to the use of interbudgetary transfers stimulating development of municipalities. It proposes author’s methodological approaches to the analysis of efficiency of allocated interbudgetary transfers on the basis of the implementation of levelling and stimulating functions. The author’s method helps to identify critical problems in the management of interbudgetary relations in the Vologda Oblast. The study proposes the ways to improve distribution of interbudgetary transfers in the region to stimulate economic development of municipalities and reduce interregional differentiation.