Improvement of the method of providing subsidies t municipalities from the budget of St. Petersburg

Subsidy is a co-financing tool that provides payment of expenses according to the authority of local governments. The provision of subsidies contributes to national challenges and impacts on the balance of the budget. The purpose of this topic is to identify the main limitations of the subsidy distribution system and to develop directions for improving the distribution of subsidies in St. Petersburg. Nowadays methodology for the distribution of subsidies doesn’t apply, the amount of subsidy is calculated based on the expected indicators of the final results of the implementation of municipal programs. The author proposes the method for the distribution of subsidies. Distribution of subsidies by the author’s method is a stimulating element in the inter-budget relations of St. Petersburg.