Abstract: the socio-economic situation of a Federal state largely depends on the economic condition of its constituent subjects of the Federation. In modern conditions the majority of budgets of subjects of the Russian Federation are scarce. This situation is due to both external and internal factors. The problem of insufficient own financial resources in the revenue base of the budget, and the risk of their reduction directly affects the ability to implement all expenditure obligations. In these conditions, the most important task is to improve the process of planning expenditures of regional budgets. A significant degree of autonomy of the regions allows you to choose the most priority areas of budget spending, taking into account the available opportunities. The purpose of the article is to substantiate a set of measures aimed at improving the quality of budget planning and financing. The implementation of such measures will ensure the implementation of the principles of building the country’s budget system and sustainable socio-economic development of the regions, which will ultimately lead to the achievement of state policy goals and improve the lives of the population. As a result of the analysis of budget planning and financing on the example of a specific subject of the Russian Federation-the Republic of Mordovia-the problems of a systemic nature are identified and recommendations for their solution are proposed.
Keywords: budget, planning, budget obligations, financing, state programs, budget expenditures