Assessing federal transfers' role in the subnational budget system of the Russian Federation

Assessing federal transfers' role in the subnational budget system of the Russian Federation

Автор: Kolomak Evgeniya A., Sumskaya Tatyana V.

Журнал: Economic and Social Changes: Facts, Trends, Forecast @volnc-esc-en

Рубрика: Public finance

Статья в выпуске: 2 т.13, 2020 года.

Бесплатный доступ

Subfederal authorities' financial independence is an essential condition for their effective functioning. Currently, in Russia, the procedure of inter-budgetary regulation is excessively centralized, and the share of transfers in the structure of regional revenues is high. At the same time, subfederal budgets arethebasiclevelofthebudgetsystem, whichconcentratesthemainpartofsociallysignificantexpenditures. In this regard, the development of a comprehensive tool for the empirical analysis of tax revenues and the effectiveness of inter-budget transfers, undertaken in the study, seems relevant. The purpose of the research is to develop an economic and statistical apparatus for assessing the results of transferring inter-budget transfers from the federal budget to the constituent entities of the Federation. Achieving this goal required to: consider the features of the structure of budget revenues in the regions; determine the scale of the territories' budget revenues heterogeneity, and give its quantitative assessment; identify the directions of the federal center's transfer policy; find out the nature of gratuitous transfers impact on the regional budgets. The novelty of the presented work is the creation of an economic and statistical apparatus for the study of the impact of federal budget policy on the region's public finance. This allowed us to characterize gratuitous transfers from the federal budget to the regions and determine whether there is a motivation to increase tax revenues in the Russian Federation's subjects or not. It is concluded that improving inter-budgetary relations should include measures to strengthen the Russian regions' tax potential, which is impossible if the stability of securing tax revenues is not ensured. Authorities need measures to prevent a direct correlation between actual and projected budget revenues and expenditures and the volume of transfers received from the federal budget to equalize budget security. The results of the research can be used to study the possibilities of improving budget policy in the direction of equalizing and stimulating the regions to strengthen their own revenue base.

Еще

Transfers, income received, disposable income, heterogeneity, empirical analysis, regional budget, interbudgetary relations

Короткий адрес: https://sciup.org/147225456

IDR: 147225456   |   DOI: 10.15838/esc.2020.2.68.6

Список литературы Assessing federal transfers' role in the subnational budget system of the Russian Federation

  • Musgrave R.A., Musgrave P.B. Gosudarstvennye finansy: teoriya i praktika [Public Finance in Theory and Practice]. Moscow: Biznes Atlas, 2009. 708 p.
  • Oates W. An essay on fiscal federalism. Journal of Economic Literature, 1999, vol. 37, no. 3, pp. 1120–1149.
  • Oates W.E. On the evolution of fiscal federalism: Theory and institutions. National Tax Journal, 2008, vol. LXI, no. 2, pp. 313–334.
  • Shah A., Boadway R. Fiscal Federalism: Principles and Practices of Multi-Order Governance. Cambridge: Cambridge University Press, 2009. 628 p.
  • Tiebout C.M. A pure theory of local expenditures. Journal of Political Economy, 1956, vol. 64, no. 5, pp. 416–424.
  • Kollman K., Miller J.H., Page S.E. Political institutions and sorting in a Tiebout model. The American Economic Review, 1997, vol. 87, no. 5, pp. 977–992.
  • Levaggi R. Decentralized budgeting procedures for public expenditure. Public Finance Review, 2002, vol. 30, no. 4, pp. 273–295.
  • McLure C.E. Administrative considerations in the design of regional tax incentives. National Tax Journal, 1980, vol. 33, no. 2, pp. 248–256.
  • Bahl R., Puryear D. Regional tax base sharing: Possibilities and implications. National Tax Journal, 1976, vol. 29, no. 3, pp. 328–335.
  • Oates W., Schwab M. The allocative and distributive implications of local fiscal competition. Competition Among States and Local Governments. Ed. Kenyon D.A., Kincaid J. Washington: The Urban Institute Press, 1991, pp. 127–145.
  • Wilson J. D. A Theory of interregional tax competition. Journal of Urban Economics, 1986, vol. 19, pp. 296–345.
  • Wildasin D. Interjurisdictional capital mobility: Fiscal externalities and a corrective subsidy. Journal of Urban Economics, 1989, vol. 25, pp. 193–212.
  • Peterson P.E. The Price of Federalism. Washington, D.C.: The Brooking Institution, 1995. 239 p.
  • Wallack J., Spinivasan T.N. Federalism and Economic Reform. International Perspectives. Cambridge: Cambridge University Press, 2006. 516 p.
  • Hueglin T., Fenna A. Comparative Federalism: A Systematic Inquiry. Quebec City: Broadview press, 2006. 390 p.
  • Nemec J., Wright G. Public Finance. Theory and Practice in Central European Transition. Bratislava: NISPAcee, 1997. 458 p.
  • Zhuravskaya E. Federalism in Russia. In: Russia after the Global Economic Crisis. Washington, D.C.: Peterson Institute for International Economics, 2010, pp. 59–77.
  • Klimanov V.V., Korotkikh A.M. The allocation of intergovernmental transfers: Theoretical background and the Russian practice. Finansovyi zhurnal=Financial Journal, 2016, no. 5, pp. 7–15. (in Russian)
  • Klimanov V.V., Lavrov A.M. Intergovernmental fiscal relations in Russia in the present time. Voprosy ekonomiki=Voprosy Ekonomiki, 2004, no. 11, pp. 111–125. (in Russian)
  • Lavrov A.M. Byudzhetnaya reforma v Rossii. Ot upravleniya zatratami k upravleniyu rezul’tatami [Budget Reform in Russia. From Cost management to Result-Based Management]. Moscow: KomKniga, 2005. 555 p.
  • Pchelintsev O.S. Regional’naya ekonomika v sisteme ustoichivogo razvitiya [Regional Economy in the Sustainable Development System]. Moscow: Nauka, 2004. 258 p.
  • Khristenko V.B. Mezhbyudzhetnye otnosheniya i upravlenie regional’nymi finansami: opyt, problemy, perspektivy [Intergovernmental Fiscal Relations and Regional Finance Management: Experience, Problems, Prospects]. Moscow: Delo, 2002. 606 p.
  • Golovanova N.V., Dombrovskii E.A. Federal center and regions: Assignment of powers changes in 2005–2015. Finansovyi zhurnal=Financial Journal, 2016, no. 2, pp. 41–51. (in Russian)
  • Gorlova O.S. Fiscal policy of the Russian Federation in the sphere of budget income: improvement of the implementation mechanism. Ekonomika i predprinimatel’stvo=Journal of Economy and Entrepreneurship, 2015, no. 10-2 (63), pp. 431–435. (in Russian)
  • Chernyavskii A. Problems of balancing regional budgets. Finansy=Finance, 2015, no. 8, pp. 15–21. (in Russian)
  • Akindinova N., Chernyavskii A., Chepel A. Analysis of regional fiscal balance. Voprosy ekonomiki=Voprosy Ekonomiki, 2016, no. 10, pp. 31–48. (in Russian)
  • Arlashkin I.Yu., Deryugin A.N., Proka K.A. Separation of jurisdiction between governmental tiers in Russia: Budgetary issues. Finansovyi zhurnal=Financial Journal, 2015, no. 4, pp. 85–93. (in Russian)
  • Dombrovskii E.A. Ten steps towards the budget balance of the subjects of the Russian Federation. Finansy i kredit=Finance and Credit, 2015, no. 37, pp. 52–64. (in Russian)
  • Eroshkina L.A. Development of inter-budgetary relations and forms of intergovernmental transfers in the Russian Federation. Kazanskii ekonomicheskii vestnik=Kazan Economic Vestnik, 2015, no. 4, pp. 79–86. (in Russian)
  • Deryugin A.N., Nazarov V.S., Mamedov A.A. Development of consolidated budgets of Russian regions in the medium term: Problems and solutions Finansovyi zhurnal=Financial Journal, 2014, no. 3, pp. 5–19. (in Russian)
  • Eroshkina L.A. Strategic directions of development of interbudgetary relations in the Russia Federation. Finansy=Finance, 2016, no. 7, pp. 7–15. (in Russian)
  • Klimanov V. V., Mikhailova A. A. Intergovernmental fiscal relations: recent trends and prospects. Gosudarstvennyi audit. Pravo. Ekonomika=State Audit. Law. Economics, 2016, no. 4, pp. 31–34. (in Russian)
  • Khugaeva M. Improvement of inter-budgetary relations in Russia. Ekonomicheskaya politika=Economic Policy, 2014, no. 4, pp. 146–152. (in Russian)
  • Chernyshova N. A. Trends and regional priorities in providing intergovernmental fiscal transfers last decade. Obshchestvennye finansy=Public Finance, 2016, no. 2, pp. 48–72. (in Russian)
  • Bukharsky V. V., Lavrov A. M. Impact evaluation of the equalizing and stimulating effects of intergovernmental transfers to the subjects of the Russian Federation. Finansovyi zhurnal=Financial Journal, 2017, no. 1, pp. 9–21. (in Russian)
  • Mamedov A.A., Nazarov V.S., Siluanov A.G., Alaev A.A., Zarubin A.V. Problemy mezhbyudzhetnykh otnoshenii v Rossii [Issues of Interbudgetary Relations in Russia]. Moscow: Institut Gaidara, 2012. 188 p.
  • Siluanov A.G. Mezhbyudzhetnye otnosheniya v usloviyakh razvitiya federalizma v Rossii [Interbudgetary Relations in the Conditions of the Development of Federalism in Russia]. Moscow: Delo, 2011. 296 p.
  • Siluanov A.G., Starodubrovskaya I.V., Nazarov V.S. Methodological approach to evaluating intergovernmental relations in the Russian Federation. Ekonomicheskaya politika=Economic Policy, 2011, no. 1, pp. 5–22. (in Russian)
  • Valieva D.G., Bogoviz A.V. Regional disparities in the Russian Federation and the mechanisms of its smoothing. Izvestiya Altaiskogo gosudarstvennogo universiteta=Izvestiya of Altai State University, 2011, no. 2-2 (70), pp. 350–354. (in Russian)
  • Mikhailova A.A., Klimanov V.V., Safina A.I. The impact of intergovernmental fiscal transfers on economic growth and the structure of the regional economy. Voprosy ekonomiki=Voprosy Ekonomiki, 2018, no. 1, pp. 91–103. (in Russian)
  • Barakhovskii A.C., Busarova A.B., Vaksova E.E., Efimov I.L. Monitoring kachestva upravleniya subnatsional’nymi obshchestvennymi finansami [Monitoring the Quality of Subnational Public Finance Management]. Moscow.: Lenand, 2005. 112 p.
  • Sumskaya T.V. Main trends of subfederal fiscal policy. Region: ekonomika i sotsiologiya=Region: Economics and Sociology, 2014, no. 3, pp. 58–74. (in Russian)
Еще
Статья научная
QR-код для установки приложения SciUp Наведите камеру и скачайте бесплатное приложение SciUp