The purpose of this analysis is to describe the financial structure of the Leningrad Oblast government and its rayons, to describe the financial relations between the oblast and local governments, to identify the fiscal policy issues with which the government must deal in the next few years, and to suggest options for policy reform. The analysis reviews: Public Finances of the Region and the Regional Government Leningrad Regional Economy Budgetary Position in The Region: The Consolidated Government Sector Budgetary Position of the Oblast Government Oblast-Local Fiscal Relations Deficits and Deficit Financing Policy Issues and Reform Options Federal - Regional Issues Oblast-Local Relations A Proposed Revenue Sharing Approach For Leningrad Region