Ensuring fiscal balance at the sub-national level
Purpose of work. Despite some progress in the methods of regulation of regional and local budgets, at the moment, their state creates perverse incentives for effective economic policy at the sub-national level. The centralization of the most sustainable and controlled taxes on the Federal level, growing dependence of regional and local budgets from financial aid, the incomplete process of differentiation of account powers between levels of public power - all of this further exacerbates the problems of financial security. Materials and methods. In this regard, important questions remain to further strengthen the revenue base of regional and local budgets, improvement of intergovernmental relations, contributing to the objectives and tasks of socio-economic development of the country and its territories. Results. According to the author the implementation of the proposed mechanisms to create a background to display a large part of municipalities of the crisis. Conclusion. The results can be used to improve the budgetary balance at the sub-national level.