It is the main financial instrument through which the central government tax revenue transfers to each of the regions for the realization of projects and development works and impact regional, provincial and local levels. Its management is primarily to the regional governments and the Secretariat for Regional and Administrative Development.

The Constitution of the Republic and, specifically, the Constitutional Organic Law on Regional Government and Administration, define it as "a public investment program, for purposes of territorial compensation, intended to finance actions in the various fields of social infrastructure and economy of the region, aiming to obtain a harmonious and equitable regional development. At the same time, you should strive to maintain a development consistent with the preservation and enhancement of the environment, which requires projects funded through FNDR to undergo an environmental impact assessment.

Moreover, the FNDR includes a set of provisions, which are generated in order to provide guidance to national sectoral policies from a regional perspective. The distribution of these, SUBDERE executed during the current budget year obeying particular methods of inter-regional distribution. At present there are the following provisions: