Fiscal federalism: Consequences for regions

The significance of the research topic can be attributed to the substantial dependence of regional budgets on federal transfers, resulting from the excessive centralization of fiscal revenue in the federal budget. There are no taxes in the local fiscal revenues that stimulate economic growth (VAT, income tax). Regional budgets do not receive VAT, and resource-extracting regions do not receive mineral extraction tax, hydrocarbon revenue tax. The purpose and objectives of the study are to analyze the effectiveness of the fiscal mechanism, the consequences of centralization using the example of budgets and the level of socio-economic development of Moscow and the Siberian Federal District. The research established that the advancement of regions is not possible without redistributing fiscal revenues to regional and local budgets.