The paper is devoted to the examination of issues related to the increasing importance of budgetary regulation for the proper functioning of a modern innovative society. The key role of the budgetary regulation in the financial process of the State is particularly acute in the context of systemic crises that include socio-economic consequences caused by the spread of a new coronavirus infection (COVID-19) in Russia. In the course of the study, the features of changes in the state financial policy caused by the above-mentioned crisis phenomena are highlighted. The paper describes various approaches to the interpretation of the budgetary regulation as a category of financial law, explores various types and legal forms of methods of the budgetary regulation, analyses mechanisms and the impact of the State on the budget system through the existing legal structure of the budgetary regulation. It is determined that the rules of financial law governing the whole complex of public relations concerning the distribution and redistribution of the national product between the levels of the budget system of the Russian Federation constitute the institution of financial law, namely: the budgetary regulation. The author concludes that the approach based on the concentration of basic powers in the financial field at the federal level significantly slows down the dynamics of development of economic activity in the majority of regions of Russia, while the need for breakthrough innovative development of Russian society determinates the expansion of long-term tax sources of income for regional budgets. In this regard, it is proposed to consolidate additional regulation for revenues gained by regional and local budgets in the form of targeted deductions from federal taxes on a long-term basis.