Importance The article profoundly analyzes what makes regional and municipal budgets dependent on financial aid of the government. We evaluate this aspect using indicators and statistical data on a growing sovereign debt of constituent entities of the Russian Federation. Methods The research is based on methods of scientific and information framework synthesis of resultant data into theoretical tenets and practical recommendations. The methodological and theoretical underpinning comprises scientific proceedings of the Russian and foreign scholars majoring in the theory and practice of economic and financial support. Results We suggest each region should adopt the differentiated measurement of intergovernmental relations. Fiscal federalism will help regions cover their sovereign debts, restructure their economies and make them differentiable. Conclusions and Relevance Sovereign debts of regions become a national issue of primary significance. Budgeting policies of the federal government make the regions financially dependent, since 60 to 75 percent of taxes collected there are accumulated at the federal level.
Keywords: budget, sovereign debt, grant, subsidy, subvention
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