The paper relies upon the fact that actually there are no proper conditions created in Russia to increase the performance of public law entities both in state (municipal) sector and state (municipal) services, their availability, and quality provision. The aim of this paper is studying the activity of public law entities of all levels to increase the efficiency of Russia's budget system costs. To achieve the goal, authors started to solve problems like indicating the place of Russia in a world ratings and indicators showing the quality of the state activity, defining a set of approaches to increase the efficiency of performance-based budgeting, examining the concept of budget system reform, identifying appropriate conditions to increase the efficiency of federal and local budgets, describing the essential problems of public law entities' activity in increasing the cost efficiency course and their solutions. Some conclusions in introducing of state entities' budget costs standards, proper budget transfers' allocation pattern, state policy funds' diversification, and budget funds flows' as well as public law activity's transparency gain are provided in the paper.
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