The Balance of Financial Flows Between Russia’s Center and Regions

Abstract

ABSTRACT This article discusses the process whereby “direct” federal budget expenses are distributed throughout the territory of Russia. This process determines the status of “donor” regions, as well as the flow of funding to and from specific regions (including population areas). The article considers the role of each federal subject of Russia in forming federal and regional budgets and describes the significant differences between different federal subjects in terms of tax concentration and the share of financial assistance. 1