Solomko Maria N.

The purpose of this paper is to give characteristic of the federal intergovernmental transfers, providing to the constituent entities of the Far-Eastern Federal District, compare its purposes and structure to economic development priorities of the Far East and trend of public finance and economic growth of the Federal District. On the one hand decrease of the share of the Far-Eastern Federal District in the federal intergovernmental transfers’ distribution is due to the faster growth of tax revenues and fiscal capacity. On the other hand such decreasing carries risk of economic dynamic deterioration in the Far-Eastern Federal District connected with deficit of budget funds. Despite the faster growth of tax and non-tax revenues in the budgets of the constituent entities of the Far-Eastern Federal District, and the decrease in their dependence on transfers from the federal budget, including subsidies, contribution of the region to the formation of tax revenues in the consolidated budget of the Russian Federation and GDP remains low. The system of intergovernmental transfer remains poorly focused on achieving balanced economic growth, which involves overcoming the raw materials specialization of the regions of the Far East and concentrating resources on developing its production and technological potential. The relatively weak links between the dynamics of targeted transfers, on the one hand, and GDP, investments, and gross value added in the manufacturing industry, on the other, indicate that there is potential for regulation, but it is not being used effectively. Based on this, it is concluded that the system of intergovernmental transfers should be reoriented to provide more active support for industrial development and other aspects of the regional economy that are directly related to innovation and the implementation of modern production technologies.