The article deals with the essence of fiscal federalism and its model in the world. Characterized by features inter-budget relations in Russia, their forms and methods of implementation. Represents an acting mechanism of formation and management of income and expenditure budgets of various levels and their relationship. Particularly detailed analysis of the problem of budgetary provision of local budgets, the ways of solving them. It is proved that the basis for the rationalization of inter-budget relations and real fiscal federalism is the progressive development of its economy, increase their own taxable capacity. The successful solution of problems of fiscal federalism, the author believes, depends largely on preserving the integrity of the Russian state, increasing its credibility in the international arena
fiscal federalism; a model of federalism; inter-budget relations; management; revenues and expenditures of regional and local budgets.