scholarly journals Assessing Regional Inequality based on Revenues of the Federal Budget using the Pareto Principle

2020 ◽  
Vol 16 ◽  
pp. 1377-1392
Author(s):  
Leyla B. Mokhnatkina

The use of fiscal instruments for regulating territorial development has both positive and negative macroeconomic effects related to the withdrawal of revenue from more economically developed regions. Therefore, using the Pareto principle, this paper assesses the negative effects of budgetary reallocation. This study considers inter-budgetary reallocation as an annually recurring four-stage process of regional budgets reproduction. The article analyses the firs t stag e o f th e process , namely , the creation of resource allocation base. A hypothesis has been tested to examine whether the centralisation of tax revenues in the federal budget and, consequently, an increase in inter-budgetary reallocation does not reduce, but exacerbates inequality in regions due to their revenue depletion and limited self-development. The study assessed the contribution of federal districts and individual constituent entities of the Russian Federation to the federal budget, withdrawal of regional revenues, and the concentration of territorial revenues to the federal budget. Based on the ranking of regional contributions to federal revenues, I built a Pareto diagram, checking the 80/20 rule for grouped and non-grouped data. Calculations and comparison of the data for 2017 and 2010 confirm numerous negative effects. For example, there is an increase in the withdrawal of regional revenues and a significant concentration of federal revenues for a limited number of regions. Additionally, negative effects include the existence of a direct relationship between regional revenues and the rate of their withdrawal, as well as the predominance of the equalising component over the stimulating one in regional socio-economic development. These effects lead to revenue depletion in the territories and increased centralisation of budgetary resources, contradicting the principles of fiscal federalism. Authorities can use the research results, conclusions and suggestions for managerial decision-making to improve intergovernmental relations in the Russian Federation.

1994 ◽  
Vol 12 (3) ◽  
pp. 277-292 ◽  
Author(s):  
J Martinez-Vazquez

This paper is an examination of the critical role the assignment of expenditure responsibilities must play in building the Russian Federation. The fiscal federalism system and the expenditure assignments inherited from the Soviet Union were not truly decentralized. All the real decisions were made back in Moscow. Although subnational governments now have authority to create their own budgets, past processes and institutions still undermine local autonomy. However, the most serious threat to the Russian Federation comes from the lack of a stable assignment of responsibilities. Primarily for budgetary convenience, the federal government has jettisoned certain expenditure responsibilities onto oblast and rayon governments in the past two years, putting Russian intergovernmental relations on a perilous path. So far, the Parliament and the Executive have failed to recognize that a stable expenditure assignment is the first and necessary step in the design of a lasting system of intergovernmental fiscal relations. Instead, the political system has concentrated entirely on revenue assignments which have not endured. The author analyzes several sets of issues that must be addressed in the design of a stable assignment of expenditure responsibilities in the Russian Federation, including the reassignment of social expenditures and social safety-net responsibilities, the reassignment of capital spending responsibilities, and the divestiture of public services by state enterprises.


2019 ◽  
Vol 7 (4) ◽  
pp. 151-175
Author(s):  
Elena Ryabova

The paper is devoted to the issue of centralization in public finance in Russia, and highlights one of the problems of interpretation of the Russian Constitution clauses. The Rulings of the Russian Federation Constitutional Court from the period 1997–2006 created legal grounds for the process of centralization and reduction of the regional powers regarding budgeting and taxation. But all arguments of the Court are debatable. Wherein, the centralization is justified by the constitutional principle of uniform economic area. The author argues that the Russian Constitution does not have clauses establishing the uniform budget and tax systems directly, and any model of intergovernmental relations might comply with the Russian Constitution. Uniformity of economic area does not imply uniformity in taxation and budgeting in the sense of sameness. Study of foreign practices shows different approaches to the understanding of uniformity in economy, and in taxation and budgeting. The contemporary Russian public finance law is formed under the influence of the Constitutional Court’s legal positions, and the process of centralization is still evolving. The Russian history of intergovernmental relations (1991–1997) shows another model of fiscal federalism – the decentralized federalism. Replacement of the fiscal federalism models is determined by the political considerations, not by constitutional requirements.


2004 ◽  
pp. 111-125 ◽  
Author(s):  
V. Klimanov ◽  
A. Lavrov

The article considers the main changes in the intergovernmental fiscal relations in Russia in the beginning of the 2000s and current problems of the realization of the governmental Program of the Development of Fiscal Federalism in the Russian Federation till 2005. The experience of forming several funds for financial aid to sub-national budgets in the federal budget is examined, financial issues of the reform of federal relations and local self-government are analyzed.


Author(s):  
Valery Grebennikov

The article shows the possibility of solving the problem of horizontal budget equalization withinthe framework of the Russian model of program budgeting, implemented through the system of federal, sub-federal governmental programs and municipal programs. To achieve this goal, it is proposed to solve two interrelated tasks: increasing the budgetary self-sufficiency of the subjects of the Russian Federation and redistributing intergovernmental transfers in accordance with their socio-economic characteristics. To solve the first task the necessity of providing the process of management (development, implementation and monitoring) of governmental and municipal programs with the proposed measures aimed at ensuring control of the ratio of budget expenditures for the implementation of social and commercial projects is substantiated. These measures should be complemented with a time-limited policy of redistributing intergovernmental transfers, taking into account the different socio-economic situation of the subjects of the Russian Federation. For this purpose, test indicators have been calculated to determine the extent to which the annual dynamics of the actual distribution of the volumes of intergovernmental transfers between the subjects of the Russian Federation for each of the eight federal districts for the period 2000–2018 corresponds to the criterion proposed by us in previous works. Those were the negative value of the Spearman's ordinal correlation coefficient between the variables “the share of non-repayable receipts” and “the budgetary self-sufficiency potential”. An attempt is made to establish a correlation relationship between the calculated values of these indicators and the socio-economic characteristics of the federal districts. It is concluded that for a correct assessment of the impact of governmental program budgetingon regional development, it is necessary to take into account the parameters of programs at all levels of the budgetary system of the Russian Federation in the context of a separate territory, i.e. subject of the Russian Federation or their group.


2020 ◽  
Vol 1 (12) ◽  
pp. 74-78
Author(s):  
A. A. BISULTANOVA ◽  

The author touched upon topical issues of inter-budget alignment, budget provision of regions with financial resources, focusing on factors that directly affect the stability of the budget system, as well as highlighting problems in the budget sphere that require urgent attention from the authorities. It is concluded that the level of interregional differentiation continues to increase, and the modern mechanism of budget equalization requires urgent amendments and adjustments. It is emphasized that the main goals of socio-economic development of the Russian Federation related to the transition to an innovative type of development, changes in the structure of the national economy, set out in strategic documents and messages of the President of the Russian Federation and declared since 2009, are not being implemented, and the effectiveness of state economic policy and Federal budget expenditures for its implementation remains low. This indicates the need to review the current system.


2018 ◽  
Vol 35 (2) ◽  
pp. 102-108
Author(s):  
G. I. Nemirova ◽  
L. B. Mokhnatkina

The article analyzes threats to regional economic security caused by a high degree of centralization of revenues at the Federation level with decentralization of expenditure obligations. The influence of the global economy on the formation of the revenues of the federal budget and the budgets of the subjects of the Russian Federation is determined. On the basis of the system approach, proposals have been developed to establish targets for the formation of interbudgetary relations from the point of ensuring regional economic security. 


2021 ◽  
Vol 23 (3) ◽  
pp. 86-91
Author(s):  
OLGA FIOFANOVA ◽  

The article discusses a new technology in the field of administration – a method of data-based management. In the field of education, analytics is the necessary manager’s competence to fulfill his work duties. The author identified the problem of transforming legal norms when working with open data, which did not affect the change in institutional and cultural norms of “data- based management” in managerial decision-making practice. The article provides a comparative analysis of the professional standards’ requirements and educational programs for the managerial personnel’s professional development in the field of education. The author analyzed two aspects of the development of a data-based management system: personnel – the development of educational programs for training managerial specialists who can use such technology, and infrastructure – the development of digital open data services and digital data processing services for making managerial decisions. The tasks of developing education through the analysis of data for assessing its quality are reflected in the Decree of the President of the Russian Federation “On national goals and strategic objectives for the development of the Russian Federation for the period up to 2024” and can be implemented based on the professional capital of managers using tools for analyzing such data. It is necessary to improve the interaction of electronic information exchange services for more effective information interaction and the construction of analytical reporting. This will allow for the efficient integration of data from different information systems and electronic resources and obtain the necessary data of the information of interest.


2020 ◽  
Vol 60 (4) ◽  
pp. 5-8
Author(s):  
A.M. Abakarov ◽  
◽  
Sh.Sh. Shamkhalov ◽  

Author(s):  
A. G. Ryazanova ◽  
E. B. Ezhlova ◽  
N. D. Pakskina ◽  
O. V. Semenova ◽  
L. Yu. Aksenova ◽  
...  

Analysis of the anthrax incidence in the Russian Federation over the period of 2009–2018 showed that the infections among the population were recorded in 14 regions of 6 Federal Districts. 23 anthrax outbreaks among people were revealed, where 90 people got sick with 3 lethal outcomes. In comparison to the previous ten-year period (1999–2008), the number of cases of the disease was reduced by 1.6 times. Three cases of cutaneous anthrax were registered in two constituent entities of the Russian Federation in 2018 – the Republic of Dagestan (1) and the Republic of Tyva (2). Outbreaks of infection among livestock animals and people were recorded in such neighboring states as Georgia, Kazakhstan, China, Kyrgyzstan, and Ukraine. Epizootiological and epidemiological instability as regards anthrax was observed in several countries of Asia and Africa. Human infection occurred as a result of contact with sick and dead animals in the process of slaughter and cutting of carcasses, consuming infected meat. Anthrax morbidity rates among animals and people in the Russian Federation in 2019 will depend on the comprehensiveness of implementation of the plans for anthrax prevention, and in case those plans will be realized at the maximum scale incidence will be limited to single cases.


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