T.V. Starikova - Ph.D. (Econom.), Presidential Academy of National Economy and Public Administration (Vladimir branch). E-mail: happystartv@gmail.com

This article analyzes the main stages of the reform of the budget system of the Russian Federation. A review of the basic regulations is aimed at improving the legal budget, development of the budget process, the implementation of effective methods of providing financial aid to different levels. Special attention is paid to the issues improving performance and efficiency of budget spending. The analysis of the budget parameters and indicators of socio-economic development of the Vladimir region in 2007-2011. It is concluded that the sustained growth of budget revenues and expenditure indicators of socio-economic development are not a clear positive trend. To solve this problem one needs to strengthen relationships between public expenditure and strategic directions of the Vladimir region through the formation and implementation of fiscal policies in the region.