Regional and Municipal Finance in Strategic Planning

Abstract

The financial independence of the constituent entities of the Russian Federation and municipalities is one of the most important conditions for their full-fledged functioning, as well as for more active involvement in the processes of strategic planning. To ensure the long-term socio-economic development of municipalities, regions and the country as a whole, strategic development and planning is of great importance, while there are problems associated with the implementation of this tool on the ground and in the regions, which determines the relevance of this study. The processes of centralization in the distribution of budget revenues in Russia hinder the effective use of the potential of the regional and local budget system for the development of regions. The main purpose of this research is to study the general and distinctive features of the formation of regional and municipal finance in the Russian Federation. The article examines the regulatory and legal framework for budgetary support for strategic planning of regions and municipalities, studies the current works of Russian and foreign authors on this topic, provides the experience of foreign countries, analyzes the existing principles of the budgetary systems of regions and municipalities, touches on the problems of budgetary provision of regional and municipal strategic planning, as well as proposed solutions to the identified problems, formulated directions for further research. In the course of the work, the authors identified trends in the budgetary reallocation of funds in the regions, proposed ways to improve and optimize it in order to increase the efficiency of regional and municipal strategic planning. The results of the study make it possible to determine the role of the distribution of budgetary funds within the region, as well as interbudgetary transfers in the process of strategizing, as well as to outline ways to improve the existing systems.