Scientific Journal of KubSAU

The relevance of the article is because the authorities of the constituent entities of the Russian Federation have to pursue an active debt policy in order to strengthen the financial autonomy of the regions, search funds for the implementation of regional social programs, programs of modernization and innovation. However, this policy leads to the significant accumulation of public debts by a number of regions, major increase in the debt burden on the budget of the constituent entity of the Russian Federation, violation of debt sustainability parameters. The author's interpretation of "debt sustainability of the constituent entity of the Russian Federation" concept is given. The performed comparison of the amounts and dynamics of the debt for the constituent entities with these entities’ security costs by their own income let us highlight the periods of intensifying debt activity of the constituent entities of the Russian Federation. The inverse relation between absolute growth of the public debt of the constituent entities of the Russian Federation and entities’ security costs by their own income is also established. The range assessment of violation of Russian budget legislation by the regional authorities with respect to regulatory compliance of debt burden on the budget of the constituent entity of the Russian Federation is given. The conclusion on irrationality of the current debt structure of the constituent entities of the Russian Federation in ensuring entities’ debt sustainability is made. A number of doubts concerning the adequacy of mechanism (proposed by the Ministry of Finance of the Russian Federation) that improves debt sustainability of regions and upgrades the penalties of regional authorities for its debt policies were expressed. This is because all the possibilities of operating mechanism were not implemented