International Practice of Financial Support for Socio-economic Development at the Subfederal Level

Abstract

Regional development is an important component that determines the quality of economic growth in a federal state, and the problem of its financial support requires a comprehensive solution. The study aims to analyze the international experience of financial support for regional development in countries and associations that have developed effective approaches to solving sub-federal level problems. The analysis focuses on the European Union, the People’s Republic of China, the Republic of India, and the Federal Republic of Germany. Their experiences can provide insights into approaches to solving intergovernmental budgetary issues, stimulating economic growth in regions, and financing strategic infrastructure and environmental projects. The results of the study show that successful practices of financial support for regional development programs are determined by a complex of interrelated mechanisms of interbudgetary alignment, the creation of targeted funds for the implementation of strategic projects, the promotion of competition and economic reforms at the sub-federal level, and the integration of sustainable development goals into regional policy. The use of international experience, considering country and regional specifics, is advisable when forming an optimal Russian model of financial support for socio-economic development at the sub-federal level.