The acute problem of the budget system of the Russian Federation is horizontal and vertical disbalance. The world experience and Russian practice prove the necessity further institutional transformation on the way of building federal, democratic, social and economically effective state. The system of intergovernmental relations is to provide redistribution of revenue of the state between different subjects considering tasks to be done and powers and connected with them expenditures. Sum of compensation payments is ranged taking into account the rate of income at the territory and coefficients of taxes and compensation assignments. The system of intergovernmental relations depends on federal state order. One can state that each type of federalism corresponds to definite type of financial constitution. So the building of democratic, federal state with social-oriented market economy is the most important institutional condition to form balanced and effective system of intergovernmental relations.
Keywords: fiscal federalism, intergovernmental relations, horizontal and vertical disbalance