Structural shifts in the economy of the region and tax federalism

The article is devoted to the study of the causes of the modern socio-economic situation in the regions of Russia and those problems that have a negative impact on the situation in the regions. The article presents an overview of scientific research on the processes of development of regions and factors that determine the socio-economic situation in the region. The authors note that competitiveness of the region can be real only under the conditions of an innovative development model: combining the efforts of enterprises producing various goods and services, scientific organizations, educational institutions and regional authorities. The situation in the Udmurt Republic, which is a typical example of an industrial region in the Urals, is considered. The methodological basis of the study is made up of modern studies of the problem of the region's transition to an innovative development model. The article points out that the economy of Udmurtia does not meet modern requirements for ensuring its competitiveness, which does not allow counting on the implementation of an optimistic scenario for the development of the regional economy. The authors substantiate the proposal that the solution of many problems of the socio-economic development of Russian regions can become possible only if the principles of tax federalism are observed. As practice from the federal centre shows, it is impossible to objectively assess the situation in the regions, which negatively affects the speed and content of decisions being made.