Influence of Inter-Budgetary Relations on the Effective Development of Socio-Economic Sphere of the Regions

The main purpose of this article is to investigate the effectiveness of inter–budgetary relations in the socio-economic sphere and industry of the regions of the Russian Federation. The policy of modernization of budgets of various levels, in particular, regional, has allowed to shift the improvement of the public administration system in this process. It should be noted that the regions of the Russian Federation have expanded powers to carry out additional spending of their available finances in order to implement activities carried out on subsidies provided from the federal budget. The amendments introduced to the Budget Code of the Russian Federation at the end of 2023, aimed at expanding the powers of state authorities of the regions of Russia, established differentiated standards for allocating funds to regional budgets (taxes and fees legally subject to deduction to the budget of the region), which contribute to the development of interaction between regions. Conclusion: the study confirms the hypothesis of insufficient efficiency and effectiveness of the functioning of inter-budgetary relations, expressed in a high level of budget inequality, differentiation of socio-economic development and the growth of subsidies.