Reserves for the increase of financial self-sufficiency of the regions

The article is devoted to the analysis of and to the search for reserves to enhance the regions' financial self-sufficiency. The author has calculated the financial self-sufficiency coefficients and proved that Russia's regions are heavily dependent on the federal center. This is particularly evident in the implementation of fiscal policy, which, if it is changed at the federal level, often leads to the loss of revenues of sub-federal budgets. The current level of financial self-sufficiency does not provide complete coverage of expenditure powers assigned to the regional and locallevels of government; this fact requires identification and use of reserves for its growth. At the same time, the analysis of the Russian legislation regulating the budget process, made it possible to determine that the reserves to improve financial self-sufficiency of the regions are strictly limited. In our view, financial self-sufficiency can be enhanced if the current model of fiscal federalism is transformed specifically pertaining to the formation of a greater number of revenue sources.