Russian regions: challenges of the crisis and modernization

The article highlighted the major trends influence of the crisis on the socio-economic development of regions. The slow exit from the crisis of the real sector of economy creates conditions for the formation of long-term and stagnant unemployment, which usually leads to the degradation of human capital and contributes to social problems. Largescale growth of social transfers mitigated the negative social consequences. However, inter-budgetary relations, as well as fiscal policy within the regions, were not very effective as anti-crisis oriented ones and very expensive. This article argues that overcoming the defects of the Russian system of control is due to the increased feedback channels between the regions and the center, increasing transparency of decision-making on allocation of budgetary resources and the development of civil control.