Reformation of inter-budget relations and social policy of regions

The authors claim that analysis of the different types of social support funded from the budgets of the RF subjects shows great regional differences in the list and amount of benefits as well as in the qualifying conditions that to a considerable extent depends on the financial and economic situation and the cost of living in the regions. They believe that the world financial crisis will bring about reduction in the social outlays and decline in the living standards of the most Russian population, despite all assurances by the RF Government that the State Reserve Fund will make it possible to get out of the crisis with minimum losses. The present decline in the production output has already resulted in the growth of unemployment, reduction in real wages of all employees and in nominal wages of a significant part of them. And this is only a beginning of the process. And even greater problems with budget revenues are awaiting regional governmental bodies. The need for social transfers will significantly rise in regions.