The article discusses the purpose and role of the regional budget expenditures. The relevance of this study is to identify the problematic aspects of the expenditure of the regional budget, and the development of ways to improve their current state. An effective budget policy at the regional level in terms of reducing the revenue side of the budget eliminates the negative trends and economic growth in the future. The authors carried out a detailed analysis of the expenditure side of the budget (the trend, vertical and horizontal analysis) and evaluated the current state of the Sverdlovsk region budget for the period 2013–2015. The authors identified the social orientation of the regional budget. During the analyzed period, the main budget spending areas are social policy, health and education. Based on this analysis, the authors identified the problem of financing the regional budget and proposed measures to optimize the regional budget.