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26. Federal Fund for Financial Support of the Subjects of the Russian Federation
As part of the federal budget, a special fund for subsidized deductions to the regions is being formed - the Federal Fund for Financial Support of the Subjects of the Russian Federation. The purpose of creating this Fund was to equalize the budgets of the constituent entities of the Russian Federation.
The volume of the Federal Fund for Financial Support of the Subjects of the Russian Federation, subject to approval for the next financial year, is determined by multiplying the volume of the said Fund, subject to approval for the current financial year, by the inflation rate forecast for the next financial year (consumer price index). The volume of financial resources of the fund is approved in the second reading, and the distribution of subsidies takes place in the third.
The total amount of subsidies from the Fund allocated to the subject of the Russian Federation is determined by the formula:
FFPR = U1 + U2 + U3,
where FFSR is the total amount of subsidies from the Fund allocated to a constituent entity of the Russian Federation;
U1- the amount of subsidies from the Fund allocated to the subject of the Russian Federation at the first stage;
U2- the amount of subsidies from the Fund allocated to the subject of the Russian Federation at the second stage;
U3- the volume of subsidies from the Fund allocated to a constituent entity of the Russian Federation in special cases. At the first stage, the level of estimated budgetary security for the distribution of subsidies from the Fund is determined (it should not exceed the level established as the first criterion for equalizing the estimated budgetary security). Determined by the formula: U1 = The degree of reduction of the gap between the estimated budgetary provision of the constituent entities of the Russian Federation from the level established as the first criterion for equalizing the estimated budgetary provision, is taken equal to 85% x The amount of funds required to bring the level of the estimated budgetary provision of the constituent entity of the Russian Federation to the level established as the first criterion for equalizing budgetary provision
At the second stage, the amount of subsidies from the Fund is distributed among the subjects of the Russian Federation, the level of estimated budgetary security of which, taking into account subsidies from the Fund distributed at the first stage, does not exceed the level established as the second criterion for equalizing the estimated budgetary security, and is determined by the formula:
U2 = (the amount of donations from the Fund for the next financial year, excluding the amount of funds defined as additional grants - U2)хThe amount of funds required to bring the level of estimated budgetary security of a constituent entity of the Russian Federation, taking into account subsidies from the Fund distributed at the first stage, to the level established as the second criterion for equalizing the estimated budgetary security / / The total amount of funds required to bring the level of estimated budgetary security of all subjects of the Russian Federation, taking into account subsidies from the Fund distributed at the first stage, to the level established as the second criterion for equalizing the estimated budgetary sufficiency.
Author: Novikova M.V.
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