What Are the "Targets" of the Targeted Aid to the Poor

Abstract

The targeted aid to the poor in Russia is based on both federal and regional approaches. The federal one resting on budget equalization is realized in the case of subsidies for children. The regional approach based on using regional budget resources is applied in cases of housing compensations and welfare. Both approaches contradict to targeting because of considerable difference in economic development across the regions and urban localities. It is impossible to eliminate this difference by means of social policy therefore measures of economic policy are needed.