The Importance Of Budget Federalism In Economic Development Of Regions

Work provides analysis of the issues of budget federalism. The author's opinion is that formation of the part of costs of the budgets of local self-government units based on the social standards and financial norms should provide basis for the methodology of budget regulation.it emphasizes that the legislative basis for regional development in Georgia requires improvement and development in accordance with the requirements of European Charter on Local Self-government. Foreign Experience of Regional Economic Policies provides comparative analysis of the experience of regional economic policies of Georgia and foreign countries. Full realization of the economic potential of the region greatly depends upon regulation and control of local financial relations, as well as development of the relevant legislative basis etc., discusses also the problems of budget federalism.