Effective Management of Public Finance in the Context of Russian Budget Federalism

Abstract

Public finance help to develop and optimize the structure of local government. The author suggests a concept of interbudgetary relations which orients the change of budget flows to the approximation of levels of public services provision for administrative territorial entities with similar social, economic and financial parameters. Provision is made for the introduction of a component aimed to stimulate local administrations to increase territorial economic and financial potential into the procedures for calculating the volume of financial support to local budgets.