Impact of the Far East regional socio-economic level of development on its budget system

The development of the Far East has a crucial role in ensuring the entire country economic growth, as this region possesses unique natural resources and potential for the development of the economy various sectors. However, despite these advantages, most subjects of the Far Eastern Federal District face problems related to the low self-sufficiency of their budgets. There are many reasons for this, but the authors primarily highlight a weak district infrastructure, which limits the regions’ ability to develop industry and improve the population quality of life. The uneven socio-economic level of the regions also affects the budget system development. Having determined this level, it is possible to group regions according to the degree of their socio-economic development and identify the common features to implement the budgetary policy. The authors have reviewed the income and expenses for some of the Far Eastern regions. In addition, it has been given the structure of income generation and highlighted general directions of the budget expenditure share. Thus, regions with a high level of socio-economic development, as a rule, have more stable budget system, less dependence on federal transfers and greater ability to finance their own needs. At the same time, less developed regions require more active support from federal agencies and special programs to develop infrastructure and stimulate economic activity. The article provides general recommendations for the Far East to stabilize its budget system, reduce dependence on the government aid and equalize socio-economic differences between the regions by fulfilling the Federal District key tasks.