State Fund of Regional Development: Problems and Ways of Functioning Improvement

The article is devoted to the analysis of the functioning of the State Fund of Regional Development (SFRD) and to the improvement of approaches to the formation of consumption requirements at the regional level during the implementation of capital investments in the infrastructure of local significance from the state budget resources. Legal and regulatory framework of the State Fund of Regional Development was disclosed. It was made the analysis of the scope dynamics of the State Fund of Regional Development for the period from 2012 to 2016 and the composition of objects to which funds was allocated. It was revealed that due to imperfect budget allocation procedure the excessive fragmentation takes place. Special attention is paid to the criteria for allocation of SFRD funds between regions. The suitability of using an index of regional human development in the allocation of SFRD funds was justified. It was proposed to establish appropriate funds for regional development in the regions and to give regions the opportunity to carry out the preparation, evaluation, selection and approval of investment programs and projects in accordance with the procedure established by the legislation in accordance with the procedure established by the legislation.