An important aspect of economic reforms in Russia and China over the last several decades has been the transformation of their public finances and, in particular, the revision of the status and the capacities of the two countries’ regional budgets. In search of effective approaches to the division of revenues and expenditures between national and subnational authorities, the Russian Federation and the People’s Republic of China have chosen different paths. While China’s central authorities have delegated more responsibilities and provided more resources to local governments, Russian regions’ role in the budget system have diminished. These differences are outlined and explained.