In spite of the necessity to modernize the economy the state is obliged to supporttraditional branches of industry as they are the principal source of taxproceeds and jobs. Such support contradicts the modernization policy, slowsdown its progress, though it is inevitable to maintain balance of the system andto prevent crisis situations.Th e goal of the article is to sum up the directions of the regional governmentactivity to provide economic growth with the minimal participation of the state.