Legislative Issues of Equalization Transfers Distribution to Municipalities
In recent years, a large number of amendments to the Budget Code of the Russian Federation were adopted, which is one way or another connected with the distribution of equalization grants at the regional level. Many of them, because of inconsistencies with each other as well as with existing provisions of the Budget Code, may result in the restrictions in the provision of tax shares to the local level, as well as unreasonable methodological limitations of using certain methods of equalization transfers. In the conditions of economic growth slowing and deficit of financial resources, which are necessary to carry out the obligations at the subnational level, reduction of the flexibility of providing financial assistance to local budgets doesn't contribute to fiscal sustainability of the budgetary system. The article presents solutions to mentioned problems within the existing budget legislation, as well as recommendations for its improvement.