There are two basis avenues of transferring resources from one level of government to another: sharing of revenues or a system of grants. In a multi-level governmental relationship, like that between the central government and its states or between a state and its localities, transfers can compensate lower governments for expenditures for services of national importance that exceed other revenues available to them, reduce the problems created by fiscal disparity (correct horizontal imbalance), compensate the recipient government for benefit spillovers, thereby encouraging programs that are valuable to non-residents, reduce special problems associated with regional economic decline, and induce governments toward management or political reform by making those reforms a condition for receiving aid. There are the criteria of different transfer’s types in Russia Equalization transfers: per capita tax capacity (based on average tax effort) population, expenditure factors (age structure of population, distant areas, urbanization), development transfers per project distribution (criteria to be determined by relevant regulations), co-financing, based on planned budgets for particular expenditures.