The essence of federalism as a model of state structure and democratic way of state power distribution on a territorial basis is shows. Variants of classification of federal states are proposed. The general design of a federal state structure is looks quite simple and clear at the first sight but in practice a number of problems related with the ratio of rights and powers between the center and the federation entities are arises. The most controversial issues in economic aspect are the establishment of efficient ratio of fiscal powers and powers of property ownership and management between the center and the federation entities. The key practical issue of “budgetary federalism” depends on the point, where a balance of interests between the federal center and the entities in the distribution of revenue powers and expenditure responsibilities will be found for the most effective solving of the tasks at current historical stage of federalism development. It is substantiated that Russian state’s financial practice has not yet found such point. According to the authors’ opinion, the economic science should equip the theory of «budgetary federalism» with the necessary scientific and methodological tools. 

federalism, federal state, the economic model of federalism, budgetary federalism, regionalization