Romanova A.A.

Inter-budget transfers and budget security of the Chuvash Republic: efficiency analysis

Keywords: inter-budget transfers, budget security, inter-budget relations, socio-economic development of the region, effectiveness of inter-budget transfers

The Chuvash Republic, like many regions of the Russian Federation, is characterized by significant dependence on financial support from the federal government. Inter-budget transfers play a key role in equalizing budget provision and financing socially significant expenditure obligations. However, in modern conditions, it is not only the scale of the support provided that is becoming a pressing issue, but also the issue of its ultimate effectiveness – namely, the ability of inter-budget transfers to serve as a means of genuinely raising a region’s socio-economic standards, reducing its structural lag, and creating sustainable incentives for the growth of its own revenue. The assessment of the effectiveness of using these funds is necessary to adjust both federal and regional budget policies. The purpose of the study is to assess the effectiveness of inter–budget transfers provided to the Chuvash Republic by analyzing their impact on the dynamics and structure of budget provision, as well as on key indicators of socio-economic development of the region in the medium and long term. Materials and methods. The study uses official data from the Federal Treasury and the Ministry of Finance of the Russia on inter-budget transfers to the subjects of the Russian Federation, budget implementation reports of the Chuvash Republic, data from the Unified Portal of the Budget System of the Russian Federation, scientific publications, monographs and analytical reports on problems of inter-budget relations and regional finance. The study period is 2022–2024. The main methods are dynamic analysis, coefficient and index analysis, synthesis and generalization. Results. The analysis revealed a significant structural shift in the inter-budgetary financing of the Chuvash Republic. Against the background of a general reduction in transfers, the share of non-targeted subsidies increased from 30.6% (2022) to 57.1% (2024), while the volume of targeted financing decreased by more than half. Equalization grants demonstrate high absolute effectiveness, compensating for an average of 31-34% of the estimated budget deficit and raising its final level to 0.722. However, its relative level remains below the national average (0.850), which confirms that it continues to be structurally dependent on federal assistance. Transfers continue to play a stabilising role, as reflected in the growth in household income and the industrial production index. Nevertheless, the current model does not sufficiently stimulate the growth of the region's own income. The reduction in funding for national projects is a particular cause for concern. Despite high budgetary discipline (95–97% execution rate), this poses risks to implementation of strategic development programmes. Thus, the key problems are: a shift in the structure in favor of non-targeted assistance, limiting targeted investment; compensatory, but not developing, nature of transfers; risks associated with a reduction in funding levels. Solving these problems requires adjusting inter-budgetary policy at the federal and regional levels. Conclusions. Transfers to the Chuvash Republic effectively ensure the region’s current financial stability, but do not enable it to overcome its relative budgetary lag. The predominance of non-targeted subsidies limits their focus on investment, and the socio-economic growth observed is stabilising rather than stimulating in nature. This indicates the systemic limitations of the current model, which prevents the transition from subsidized dependence to independent development.

About authors

Romanova Anna A.

Assistant Lecturer, Department of Finance, Credit and Economic Security, Chuvash State University, Russia, Cheboksary (anaalekceevna10@mail.ru; )

Article link

Romanova A.A. Inter-budget transfers and budget security of the Chuvash Republic: efficiency analysis [Electronic resource] // Oeconomia et Jus. – 2026. – №1. P. 60-71. – URL: https://oecomia-et-jus.ru/en/single/2026/1/6/. DOI: 10.47026/2499-9636-2026-1-60-71.