Importance The article studies the human development parameters for evaluating the performance of the executive authorities of the constituent entities of the Russian Federation. Objectives The paper analyzes methods of providing the constituent entities of the Russian Federation with grants in the form of intergovernmental fiscal transfers and gives a rationale for the proposals to modernize the rules enabling distribution of grants between the subjects of the Federation for achievements in human development. Methods The methodological basis of the research are statistical observation, comparison and synthesis methods used in collecting information about the results of the activities of the executive bodies of subjects of the Russian Federation in the formation of the human potential of the regions. Results The paper presents a critical appraisal of the existing methods of providing grants to the constituent entities of the Russian Federation and proposes allocation of incentive grants. Conclusions and Relevance The developed technique of measuring the role of regions in shaping human potential is a theoretically coherent and methodologically improved alternative to the official methodology for evaluating the performance of the executive authorities. It applies to formulate stimulating effects for the authorities of regions. The results of this research can be used to support the activities of the State regional policy aimed at improving the quality of life of the population.
Keywords: index of regional development, human potential, effectiveness evaluation, grants, inter-budgetary transfers
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