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Problems of inter-regional cooperation in current conditions are extremely wide and diverse. As one of important aspects of this problem are the intergovernmental fiscal relations, fiscal competition between regions and fiscal equalization of welfare branches between municipalities. They are as serious incentives in regional and interregional development. Practice shows that the countries having more decentralized fiscal systems achieve more perfect intergovernmental fiscal relations, actively use mechanisms of the fiscal competition between municipalities, and apply fair methods of fiscal equalization.

 Since disintegration of the Soviet Union, The Republic of Belarus, as well as all other post-Socialist countries, has been engaged in economic reforms and reforming intergovernmental fiscal relations. Among numerous reformations of that period the aspiration and determination to reform the economic and fiscal relations at sub-national levels to follow civilized models of the regional and local government, based on fiscal decentralization took place. However since the beginning of 2000 year the spirit of reformation in Belarus began to die away considerably. Without having taken serious steps in this direction, "return" to socialist models of the fiscal relations and financial management was performed. Thus a "kickback" to supercentralization has been made. However, it at all doesn't mean that the intergovernmental fiscal relations together with inter-regional development shouldn't be improved. On the contrary, approach to fiscal decentralization can be performed from more its remote positions: improvement of separate fiscal instruments, models, formulas, experiments, pilot projects.

What Belarus has now, and on what way the intergovernmental fiscal relations, instruments of tax- sharing and fiscal equalization, proceeding from features and traditions of the Belarusian economy will be developed. This paper will be devoted to these issues.

Yuri Krivorotko


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