In contrast to Russia, where the unity of approaches to the calculation of transfers for all regions and the task of equalizing budget revenues are required by the Budget code, in the People's Republic of China there is a differentiated approach to regions of different socio-economic status. Partial equalization is carried out in relation not to all regions at once, but within each of several groups of provinces. Along with a differentiated approach to the calculation of transfers, the model of budget decentralization in China is also interesting for Russia. The majority of budget expenditures in China are made at the subnational / local level. At the same time, there is not so much of a decentralization of budget powers (and hence of budget policy) as of a decentralization of budget and administrative functions while control and directing functions of the central authorities are maintained. China's experience shows that the transfer to the provincial level of broad budgetary management capacity (including through transfers), provided that the center retains budgetary priority-setting functions and broad control and adjustment capabilities, can be an effective solution to the problem of incentives for regional authorities in the context of large-scale redistribution of resources through the central budget. In Russia, the transfer of the actual administration of such expenditures to the authorities of the constituent entities of the federation, while preserving the functions of goal-setting and final control for the federal bodies (as is done in China), could help to increase the motivation and political responsibility of the regional leadership.