Transfer Mechanism: Has the Crisis Been Overcome?

Abstract

During recent years the intensive activity on perfection of mechanisms and tools of financial support of regions from the federal budget has taken place. The algorithm of distribution of the Fund of financial support of regions has been changing almost annually with the purpose of equalization of parameters of the regional budget per capita incomes. Meanwhile, the differentiation of these parameters is growing. Using wide empirical base the authors try to answer the following question: why cannot the decision of the priority task put before the transfer mechanism be reached?