scholarly journals Problems of organizing intergovernmental relations in the Russian Federation

2020 ◽  
Vol 60 (4) ◽  
pp. 5-8
Author(s):  
A.M. Abakarov ◽  
◽  
Sh.Sh. Shamkhalov ◽  
Keyword(s):  
Russian Federation ◽  
Intergovernmental Relations ◽  
The Russian Federation

The Challenge of Expenditure-Assignment Reform in Russia

1994 ◽  
Vol 12 (3) ◽  
pp. 277-292 ◽  
Author(s):  
J Martinez-Vazquez
Keyword(s):  
Soviet Union ◽  
Russian Federation ◽  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Critical Role ◽  
Safety Net ◽  
The Soviet Union ◽  
Capital Spending ◽  
The Russian Federation ◽  
Social Expenditures

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.

scholarly journals Debt Burden of the Subjects of the Russian Federation

Federalism ◽  
2021 ◽  
Vol 26 (3) ◽  
pp. 121-141
Author(s):  
I. S. Bukina
Keyword(s):  
Russian Federation ◽  
Intergovernmental Relations ◽  
Social Spending ◽  
Intergovernmental Transfers ◽  
Budget Management ◽  
Institutional Effects ◽  
Debt Burden ◽  
The Russian Federation ◽  
Socio Economic Factors

The growth of regional debts produces risks both at the regional level and in the sphere of intergovernmental relations. The article shows that with a low debt burden at a long-term level, the subjects of the Russian Federation are highly differentiated by the level of debt, and even with a decrease in overall debt, a variation of debt load is growing. On the basis of cluster analysis, four groups of the subjects of the Russian Federation were allocated, depending on the variation of the debt burden and the share of social spending in total regional expenditures. It is concluded that the level of debt burden and its dynamics are explained both by the socio-economic factors for the regional development and the quality of budget management in any subject of the Russian Federation. Accordingly, the procedure for the distribution of intergovernmental transfers and budgetary rules should be agreed with the accounting of objective relationships and institutional effects.

scholarly journals Main Directions of Regulation of Intergovernmental Relations at the Subfederal Level during the Pandemic and Economic Crisis

2020 ◽  
pp. 061-065
Author(s):  
A. B. D. Dukhani ◽  
Keyword(s):  
Economic Crisis ◽  
Russian Federation ◽  
Intergovernmental Relations ◽  
Economic Conditions ◽  
Constituent Entity ◽  
The Russian Federation ◽  
Federal Center

The article shows the problems of intergovernmental relations at the subfederal level in the context of the pandemic and economic crisis. Possible risks of a decrease in revenues to the consolidated budget of a constituent entity of the Russian Federation, which can have a significant impact on the efficiency of intergovernmental relations in the implementation of national projects, are considered. The assessment of changes in intergovernmental relations between the federal center and the regions is given, on the basis of which recommendations for their improvement in difficult economic conditions are proposed.

scholarly journals The Constitutional Principle of Uniform Economic Area and Centralization of Public Finance in the Russian Federation: Analysis of the Russian Federation Constitutional Court’s Rulings

2019 ◽  
Vol 7 (4) ◽  
pp. 151-175
Author(s):  
Elena Ryabova
Keyword(s):  
Public Finance ◽  
Russian Federation ◽  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Constitutional Court ◽  
Regional Powers ◽  
Constitutional Principle ◽  
Economic Area ◽  
Russian Constitution ◽  
The Russian Federation

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.

scholarly journals Sustainability of Regional Budget Revenues and Its Sources

2021 ◽  
Vol 17 (4) ◽  
pp. 1376-1389
Author(s):  
M.Yu. Malkina ◽  
Keyword(s):  
Russian Federation ◽  
Growth Rates ◽  
Intergovernmental Relations ◽  
Linear Time ◽  
Time Correlation ◽  
Tax Revenues ◽  
Steady Growth ◽  
Regional Budget ◽  
The Russian Federation ◽  
Per Capita

Sustainability of regional budget revenues and the overall regional economic sustainability are mutually influential. The present research contributes to the identification of internal sources of budget sustainability observed in the constituent entities of the Russian Federation. The study proposed and tested an approach to distinguishing between steady growth rates of real revenues per capita of sub-federal budgets and their volatility using linear time regressions. The variance of the residuals is considered as an absolute measure of risk (instability), while the ratio of the residual standard deviation to the average income value is seen as a relative measure. Based on the construction of partial time regressions and use of variance rules, indicators of budget sustainability were decomposed according to income sources. The proposed methodology was applied to assess average real budget revenues per capita and determine steady growth rates, absolute and relative risks in 83 entities of the Russian Federation in 2010–2017. Budget systems of certain mining and border regions are characterised by low stability, while some highly diversified regional economies of the European Russia proved to be the most stable. In the group of tax revenues, the profit tax is the relative amplifier of budget risk, and the personal income tax is the risk damper. In the group of non-tax revenues, income from the sale of assets is the instability enhancer, and income from the use of property is seen as the damper. Among gratuitous receipts, subventions, followed by grants, play a stabilising role, while subsidies act as destabilisers. The dissimilarity between budget risk structures of the regional average and country portfolio, the most notable in the group of transfers, was explained by different time correlation of budget revenues in Russian regions. The proposed approaches can be improved by using non-linear regressions and appropriate methods for decomposing indicators of budget sustainability according to sources. The research findings can be used for the management of sustainable regional development and intergovernmental relations in the Russian Federation.

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
Keyword(s):  
Russian Federation ◽  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Federal Budget ◽  
Pareto Principle ◽  
Territorial Development ◽  
Negative Effects ◽  
Managerial Decision ◽  
Federal Districts ◽  
The Russian Federation

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.

scholarly journals The Main Aspects of Financial Support of Local Governments in the Russian Federation

2019 ◽  
Vol 19 (2) ◽  
pp. 99-115
Author(s):  
T. V. Sumskaya
Keyword(s):  
Russian Federation ◽  
Local Governments ◽  
Intergovernmental Relations ◽  
Revenue Sources ◽  
Budget Policy ◽  
The Russian Federation ◽  
Regional Authorities ◽  
Social Expenditures ◽  
The Impact ◽  
Municipal Level

For the effective functioning of local governments an important role is played by the sufficiency of the revenue base of local budgets. It is the municipal level of power in the Russian Federation that is responsible for the most important social expenditures of the state. The purpose of this work is to analyze the revenue sources of local governments, as well as the expenditures of municipal budgets in Russia in the framework of the sub-federal fiscal policy. A set of calculations based on materials from municipalities of the Russian Federation allows to determine the main directions of formation of revenues and expenditures of budgets of local governments, as well as assess the impact of the budget policy of regional authorities on incentives for the socio-economic development of municipalities. The analysis of budget revenues and expenditures by types of municipalities in Russia has been carried out in order to identify their budget solvency both in statics and in dynamics. The results of the study can be applied in studying the possibilities of improving budget policy in the direction of leveling and stimulating local governments to strengthen their own revenue base. It has been concluded that the improvement of intergovernmental relations should include measures to strengthen the tax potential of municipalities, which is impossible without ensuring stable fixed tax revenues for local budgets.

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