Transformation of the mechanism for writing off budget loans to the regions of the Russian Federation and its consequences

In recent years, such an instrument of inter-budgetary relations as a budget loan has been developing significantly. There is not only their prolongation, lower interest rates and easier conditions. They have acquired regulatory and stimulating functions for the development of territories and economic sectors. In particular, this allows for the implementation of an infrastructure budget loan issued on preferential terms by the federal budget for the implementation of investment projects of the regions of the Russian Federation. The improvement continued, and the right to write off such budget loans appeared, allowing the released funds to be directed to newly implemented investment projects. Therefore, the purpose of this study is to analyze the development of the regulatory framework for the functioning of the above-mentioned tools, identify problems, consider the actual results of their operation using the example of the Republic of Adygea and the Krasnodar Territory, as well as foreign experience in the implementation of such programs. It is also argued that at the moment the volume of write-offs of budget loans to the subjects of the Russian Federation is not significant, which causes difficulties in implementing new investment projects at the expense of the released funds. The present study was conducted using such methods as analysis, comparison, generalization, and synthesis. The results of the article draw several conclusions regarding changes in the mechanism for writing off budget loans during its term, their consequences and disadvantages. Firstly, there is a tendency to expand the scope and methods of applying the mechanism of writing off budget loans for the regions of the Russian Federation, as well as to increase the degree of its regulation. The legislator's direction of the mechanism for future development and further dissemination is observed, as evidenced by a significant increase in the number of regions' budget loans written off in 2024. The main result of the study is the revelation of the problems with investments projects of the regions and their inability to use the released funds for infrastructure development projects. Proposals were also made for better implementation of investment projects and prevention of possible risks based on the analysis of foreign experience.