Problems of Ensuring the Balance of Regional Budgets in The Conditions of Sanctions Pressure

Abstract

Having  successfully passed the tests of the pandemic, the Russian  economy  has faced new challenges.  Unprecedented   sanctions  have  been  imposed  on  our  country  by  unfriendly States.  They  affected  the Bank  of Russia  and  are related  to the management  of reserves and  assets,  as a result of which  more than  half are blocked.  A number  of Russian  banks have disconnected  from the SWIFT payment  system and restricted cross-border transfers. Against the background  of such a difficult geopolitical situation, the regional economy  and the budget system were under  serious threat.  However, the «pandemic»  experience  gained allowed the Government of the Russian Federation, the Parliament, and regional management teams not to react slowly to the events taking place and take the necessary steps to contain external sanctions pressure. Priority actions were aimed at stabilizing the situation in financial markets, tax  incentives  and  reducing  regulatory restrictions, import support, speeding up budget  procedures  and  the  use of funds  from  state-owned  companies, support for SMEs and  system-forming  enterprises. The  rights of the Government  of the Russian  Federation have  been expanded  and  the opportunity  has been given to direct the funds  of the NWF for the purchase of Russian  government securities and shares of Russian  issuers, to identify specific investment  projects in the tourism industry. In addition, legislative norms have been adopted  that allow  regions to respond quickly  to changes in the geopolitical situation  and the economic situation and reduce the impact of negative factors on the budget system. This article examines  the issues of the state of regional budgets in modern  conditions, analyzes the state measures  taken  to preserve the stability  of the budget system, and  also suggests mechanisms  aimed  at further  strengthening  and  stabilizing  the situation  in the regions to ensure the balance  of regional budgets.