Domestic state policy is mainly aimed at solving those problems that affect aspects of the life of the population of certain regions. For the most part, people are divided, so the state is faced with the issue of applying regional policy.
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Regional policy is an integral component of the state’s internal policy, which is aimed at equalizing the average standard of living in the regions with the help of a variety of economic, legislative and fiscal measures.
Regional policy implies a reasonable administrative-territorial division, as well as its study with the whole conduct of competent domestic policy. With the help of legislative and economic levers, the state, by building a vertical ladder of interconnection between the subjects and the center, can quickly and comprehensively solve not only problems within the regions, but also allows it to become an arbiter in resolving conflict situations between different entities of the country.
Regional policy has several directions, including:
- definition of underdeveloped regions and subjects of the country;
- stimulating the development of needy regions;
- subsidies and other economic injections into the economies of needy regions;
- allocation of regions - recipients and regions - donors.
Regional policy includes a number of elements that are designed to influence the life of the regions as a whole:
- Fiscal policy - a set of tools and methods for organizing the collection of taxes by region and country;
- Budget policy - the most rational distribution of budget funds for pouring them into the regions;
- Pricing policy - setting prices and tariffs in various territories of the country;
- Social policy - the implementation of policies to support citizens in various subjects of the state.
In particular, one of the main tasks of regional policy is the development of the national economy through stimulating the development of entrepreneurship and industry of the regions. The allocation of donor and recipient regions allows the state to more efficiently “pump out” free cash from wealthy regions and inject their “poor” regions.