SUBSIDIZATION OF LOCAL BUDGET AND THE WAY TO OVERCOME IT

The problem. To achieve the results and effectiveness of distribution of budget funds, the scientific grounding of the mechanism of regulation of subsidization of interbudget sphere relations is necessary. The aim of the article is the analysis of local budget subsidization and the definition of the ways of its overcoming. Methods. Methods of logic, economic and system analysis which are characterized by the use of the system of budget indices and the study of the reasons of these indices changes are used in the article. The results of researches. Under the condition of transfer of expenses responsibility from one level of budget system to another the practice of using the interbudget transfers in the way of subsidies is being spred. As a result the mechanism of granting the financial aid is reduced to one aim ? to provide the balance of income and expenses. Systems of interbudgetary transfers in the most parts of regions are ineffective; it is because of the fact that the financial aid is not oriented at ensuring the development of the region in the long-term perspective. Conclusion. The main aim of the following researches should be the development of the directions of minimization of local budgets subsidization, reduction of dependence of local budgets from transfers out of state budget.