Regional budgets of 2014: problems of formation and implementation

Over the last years execution of territorial budgets is characterized by advanced rising scale of expenditures based on the necessity of implementing inaugural decrees of the President of the Russian Federation. While searching the sources of their financing territorial entities of the Russian Federation are forced to cut investments, that leads to repressing regional economics and decreasing potential tax revenues. Steady decline in the share of territorial budgets’ incomes in GDP confirms the long-term deficit in financial resources at the regional level.Low quality of predictions concerning main budget indicators and imperfection of the budgetary policy infringe the rhythm of executing budgets of territorial entities of the Russian Federation, which leads to significant amounts of unused resources and distorting the real situation with the budget deficit. Displacing the burden of government responsibilities at the regional level caused unprecedented debt crisis of the most of territorial budgets. The Government of the Russian Federation is not taking active actions regarding deflection of destabilizing processes. On the contrary, the Minister of Finance offered the President to fire Governors of the regions having constant debts, therefore trying to shift responsibility for events in the budget sphere to the regional authorities. However, such measure would hardly solve the debt problem without drastic revision of the conservative budget policy, whereas nowadays the regions have more expenditure obligations than resources for their provision.The article presents the results of the analysis concerning the execution of budgets in territorial entities of the Russian Federation over 9 months of 2014. The author gives the assessment of their execution at the end of 2014. The researcher draws a conclusion about the continuation of the crisis regarding regional budget systems and states the variants for overcoming this crisis.