Fiscal federalism in Russia: To be or not to be?

2021 ◽  
pp. 143-160
Author(s):  
B. L. Lavrovskii ◽  
E. A. Goryushkina
Keyword(s):  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
The State ◽  
Russian Regions ◽  
Balance Budget ◽  
Fundamental Possibility ◽  
Regional Budget ◽  
Regional Budgets ◽  
Territorial Division ◽  
Budget System

The ratio of the total volume of taxes coming from the territory to the budget system of the country and the expenses of the territorial budget illustrates the fundamental possibility or impossibility of forming intergovernmental relations in the spirit of fiscal federalism. The article tests its initial message: tax and non-tax revenues produced by the territory (given the administrative-territorial division of the country) should be, at minimum, sufficient to balance the budget and solve regional budget problems. It is shown that at present in 40% of Russian regions total revenues are enough to ensure budget surplus, the participation of these regions in solving national problems. In the remaining 60% of the regions, all revenues from the territory to the budget system are not able to balance budget revenues and expenses. The picture of intergovernmental relations was fundamentally changed, because in most regions that had deficit budgets in 2015, revenues in 2018 began to exceed expenses. The paper considers the opportunities to qualitatively change the state of regional budgets.

scholarly journals BUDGETARY EXPENDITURE: PROBLEMS OF INHOMOGENEITY IN THE REGIONS OF RUSSIA

2021 ◽  
Vol 9 (2) ◽  
pp. 38-48
Author(s):  
Vera Zareckaya ◽  
Vladislav Borzenkov ◽  
Yuriy Zaharov
Keyword(s):  
Regional Differences ◽  
The State ◽  
Regional Convergence ◽  
Russian Regions ◽  
Housing Conditions ◽  
Economic Space ◽  
Government Action ◽  
Regional Budget ◽  
Per Capita ◽  
Budgetary Expenditure

The state, as a system, presupposes the homogeneity of the economic space, which also applies to budget expenditures per capita in each region. Russia is distinguished by extremely uneven size of the regional budget, which, according to the authors, poses a threat to the integrity of the economic space and hinders economic growth in general. The aim of the study is to show the heterogeneity of Russian regions in terms of the level of budget expenditures per capita. The work investigated the ongoing processes of convergence and divergence in terms of the level of regional budgetary expenditures. Standard deviation and coefficient of variation were used as a tool to measure the level of convergence. In the course of the study, distinct convergence processes were identified until 2013, and then the termination of these processes. The processes of regional convergence require more active government action in the redistribution of budgetary funds, which was possible before the onset of the financial crisis and general stagnation processes that have been observed in the economy after 2012. The task of the state at this stage is to overcome regional differences in the provision of the basic needs of the inhabitants of the regions (education, medicine, housing conditions).

scholarly journals DECENTRALIZATION OF INTER-BUDGET RELATIONS: THEORY, PRACTICE, AND INTERNATIONAL EXPERIENCE

2019 ◽  
Vol 5 (4) ◽  
pp. 182
Author(s):  
Liudmyla Pidchosa ◽  
Igor Lyutyy ◽  
Oleksandr Pidchosa
Keyword(s):  
Financial Stability ◽  
Statistical Data ◽  
Intergovernmental Relations ◽  
Practical Implication ◽  
Economic Effect ◽  
Cash Flows ◽  
The State ◽  
Budget Process ◽  
Budget Policy ◽  
Budget System

The purpose of the article is to justify the methods of budget policy for the redistribution of cash flows in terms of differentiating powers at different levels of government and to analyse intergovernmental regulation improvement. The subject of the study is the methods of budget policy and intergovernmental regulation improvement. Research methodology. The research is based on analysis, comparison, and generalization of statistical data concerning territorial development, distribution of production capacities, migration of population and its determinants, statistical data on the state of macro-financial turbulence. The hypothesis is based on the above data. Practical implication. The budget policy is directed to reaching a certain socio-economic effect at a certain stage of social development, is implemented by the authorities with appropriate powers in a certain territory. In the administrative and budgetary reform, intergovernmental relations are multidimensional and their research needs to be conducted from the point of their categorization in terms of scale and long-term achievement of the set goals and objectives, as well as depending on priorities in the budget process management. Achievement of the effective system of intergovernmental relations is possible only if there is the unity of all subjects of the budget system. In this context, the most pressing issues of intergovernmental interactions and regulation of cash flows are highlighted. Value/originality. The proposed model of principles, tools, and mechanism of distribution and regulation of intergovernmental fiscal flows will provide an opportunity to ensure the unity of all levels of the budget system and their interaction, which, in turn, will ensure macro-financial stability of the state, efficient allocation of budget expenditure, development of society’s democratization and uniform socio-economic development of some regions.

scholarly journals Regional and Municipal Budget Balance as a Tool of Facilitating Economic Security Based on the Example of the Krasnoyarsk Territory (Krai)

2019 ◽  
pp. 514-529
Author(s):  
Edham Sh. Akbulatov ◽  
Irina O. Volkova ◽  
Elizaveta V. Gavrikova ◽  
Anna V. Kosygina
Keyword(s):  
Intergovernmental Relations ◽  
Raw Materials ◽  
Economic Security ◽  
Added Value ◽  
Budget Balance ◽  
Economic Activities ◽  
Important Indicator ◽  
Sectoral Structure ◽  
Regional Budget ◽  
Regional Budgets

In modern conditions, the problems of economic security of socio-economic systems of various levels are in the focus of attention of Russian and foreign scientists. These problems are particularly acute for territories that have a pronounced source of raw materials and underdeveloped high-added value industries. Economic security of the city and the region cannot be ensured without due regard to the sectoral structure of the economy and the balance of budgets of all levels. An important indicator of the budget balance is the structure of the regional budget revenue, or, particularly, the structure of tax revenues to the budget, as well as the expenditure structure. The article discusses the distinctive formation features of revenue and expenditure parts of the regional and local budgets, analyses the most typical sources of revenue for different territories. The consolidated budget structure for the region and some municipalities based on the example of the Krasnoyarsk Territory (Krai) is analysed. The dynamics of revenues and expenditures is considered, the limitations stipulated by the regional law on intergovernmental relations are examined. As a result of the study, the authors arrived at the conclusions about the lack of balance between the analysed budgets, their inconsistency with the needs of the region, and, as a result, the existing threats to the economic security of the territory in question. The article contains recommendations on the development of economic activities in the Krasnoyarsk Territory that take into account the specifics of the studied region and that can improve the balance of local and regional budgets

Hinaus aus der Selbstblockade – Ziele und Wege zur Reform des Förderalismus

2005 ◽  
Vol 54 (2) ◽  
Author(s):  
Rudolf Hrbek ◽  
Martin T.W. Rosenfeld ◽  
Gerhard Schick
Keyword(s):  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Local Level ◽  
State Level ◽  
The State ◽  
Decision Makers ◽  
Reform Proposal ◽  
Procedural Approach ◽  
Basic Features ◽  
Cooperative Federalism

AbstractRudolf Hrbek summarizes the arguments for the project of reforming German federalism. He describes the positions adopted at the beginning of the work of the Reform Commission set up in fall 2003 by the federal government and the state governments respectively. The Commission ended with a failure; there were some reform proposals in single issues, but no comprehensive reform proposal. His article tries to identify reasons explaining the failure. Hrbek recommends a new procedural approach: instead of the Reform Commission composed by members who as office or mandate holders would be affected directly by reform measures, a Convention should be established composed of a smaller number of members (representing a broader range of actors: e.g. local level, Land-Parliaments, elder statesmen). A broad mandate should enable the Convention to elaborate a reform proposal as package deal which the two houses of Parliament would then have to decide on finally. A major political function of the Convention would be to generate a broad debate on basic features of a federal system and in the meaning of “unity in diversity”, as a prerequisite for modernizing German federalism.Martin T. W. Rosenfeld states that for more than fifty years, there had been many attempts to reform the German system of cooperative federalism and to reduce the power of the federal level of government. But, so far, no one of these attempts had been successful. In 2004, the “Commission on the Modernization of Cooperative Federalism” had worked out a proposal for reforming intergovernmental relations in Germany. Rosenfeld points out that from the view of the theory of fiscal federalism, this proposal may be regarded as a step in the direction of more efficiency – but just as a very small step. Unfortunately, the decision-makers of the federal and the state level of government did not come to an agreement on the proposed reform. With regard to the current distribution of costs and benefits which arise for the decision-makers from the existing institutions of cooperative federalism in Germany, this result is not surprising for him. In his opinion an agreement on reforming intergovernmental relations is only likely to be achieved if relevant external changes will take place.Gerhard Schick emphasizes that one of the weaknesses of the commission was that excessive debt of jurisdictions was not seen as one of the core problems of German federalism, even though the debt burden might endanger the very existence of at least some of the states. This omission reflects both individual interests of participants in the commission and the fact that neither proponents nor opponents of competitive federalism put forward convincing and politically viable solutions. According to him, a new reform will need proposals to overcome the debt problem that avoid raising fears of tax competition and that reflect the asymmetrical character of German federalism.

Tax competition and the activity of the regional tax policy

2020 ◽  
pp. 5-27
Author(s):  
S. M. Drobyshevsky ◽  
N. S. Kostrykina ◽  
A. V. Korytin
Keyword(s):  
Tax Competition ◽  
Tax Policy ◽  
Fiscal Federalism ◽  
Policy Instruments ◽  
Tax Incentives ◽  
Fiscal Autonomy ◽  
Tax Legislation ◽  
Tax Exemptions ◽  
Open Question ◽  
Regional Budgets

The problem of efficiency of regional tax expenditures is an actual issue of the fiscal policy and fiscal federalism in Russia. A large fiscal autonomy allows federal subjects to realize a more active tax policy to attract new investments. One cannot claim current fiscal powers of the Russian regions to be wide. However, not all the regions use even existing tax policy instruments. Moreover, out of the regions that use them only few provide incentives to stimulate investment decisions. Others use regional tax measures to support businesses that already have strong positions in the region. And it is an open question whether such tax incentives are efficient. On the other hand, an aggressive tax competition for investors can also be wasteful for regional budgets. In this paper, we calculate indicators that characterize the depth and scope of tax exemptions provided at the regional level. The calculations are based on the open tax statistics. Through the analysis of the tax legislation as well as the economic structure of selected regions, we reveal the inducements of their higher activity: federal regional tax policy, tax competition or benefits for budget-forming companies of the region.

On the diversity of the effects of the state support for agriculture

2019 ◽  
pp. 59-73 ◽  
Author(s):  
Nikolai M. Svetlov ◽  
Renata G. Yanbykh ◽  
Dariya A. Loginova
Keyword(s):  
Agricultural Production ◽  
The State ◽  
Russian Regions ◽  
Negative Effects ◽  
State Support ◽  
Soft Budget Constraints ◽  
Institutional Conditions ◽  
Positive Effects ◽  
Production Factors ◽  
Corporate Farms

In this paper, we assess the effects of agricultural state support of corporate farms on their revenues from agricultural production sales in 14 Russian regions that differ in technology, environment and institutional conditions. In addition to the direct effect of the state support, the indirect effects via labor and capital are revealed. For this purpose, we identify production functions and statistical models of production factors for each of these regions separately. We find out diverse effects of the state support on revenues among the regions. Positive effects prevail. Negative effects are mainly caused by labor reductions that follow subsidy inflows. Another cause of negative effects is the soft budget constraints phenomenon.

PERTANGGUNGJAWABAN KERUGIAN NEGARA DALAM PENGELOLAAN KEUANGAN DAERAH

EDUKASI ◽  
2018 ◽  
Vol 16 (1) ◽  
Author(s):  
Hendra Karianga
Keyword(s):  
Financial Management ◽  
Criminal Liability ◽  
The State ◽  
Legal Proceedings ◽  
Regional Finance ◽  
Regional Budget ◽  
State Finance ◽  
Budget Policy ◽  
Definition Of ◽  
The Impact

Sources of revenue and expenditure of APBD (regional budget) can be allocated to finance the compulsory affairs and optional affairs in the form of programs and activities related to the improvement of public services, job creation, poverty alleviation, improvement of environmental quality, and regional economic growth. The implications of these policies is the need for funds to finance the implementation of the functions, that have become regional authority, is also increasing. In practice, regional financial management still poses a complicated issue because the regional head are reluctant to release pro-people regional budget policy, even implication of regional autonomy is likely to give birth to little kings in region causing losses to state finance and most end up in legal proceedings. This paper discusses the loss of state finance and forms of liability for losses to the state finance. The result of the study can be concluded firstly,  there are still many differences in giving meaning and definition of the loss of state finace and no standard definition of state losses, can cause difficulties. The difficulty there is in an effort to determine the amount of the state finance losses. The calculation of state/regions losses that occur today is simply assessing the suitability of the size of the budget and expenditure without considering profits earned by the community and the impact of the use of budget to the community. Secondly, the liability for losses to the state finance is the fulfillment of the consequences for a person to give or to do something in the regional financial management by giving birth to three forms of liability, namely the Criminal liability, Civil liability, and Administrative liability.Keywords: state finance losses, liability, regional finance.

Multidimensional analysis of the state of Russian studies on the education issues over 1993–2016

2018 ◽  
pp. 50-62
Author(s):  
Дмитрий Рубвальтер ◽  
Dmitry Rubvalter ◽  
Александр Либкинд ◽  
Alexander Libkind ◽  
Валентина Маркусова ◽  
...  
Keyword(s):  
Web Of Science ◽  
The State ◽  
Multidimensional Analysis ◽  
Russian Regions ◽  
Global Flow ◽  
Educational Issues ◽  
Foreign Countries ◽  
High Level ◽  
The Web ◽  
Made In

A multidimensional analysis of the state of Russian studies on the education issues over 1993–2016 was carried out based on the materials of the data contained in the Web of Science (SSCI, A & HCI and SCI-E databases). There were determined the dynamics and trends of a number of relevant indicators, such as the number of Russian publications by year, the share of these publications in the global flow of publications on education issues, the dynamics of the share of publications made in co-authorship with foreign colleagues, etc. A number of distributions of Russian publications on educational issues was compiled and analyzed: by journals, by Russian regions and cities, by organizations and authors of the publications. It was found that most of these distributions were characterized by a high level of non-uniformity. A list of journals (125 titles) in which Russian works on education issues had been published was compiled. Russian organizations (308) and domestic researchers (about two thousand) engaged in studying the issues of education were identified. It was discovered that more than 200 organizations and about 400 academicians from 60 foreign countries had participated in Russian studies on the education issues.

Budgetary Regulation in the Context of Preventing the Consequences of the Spread of a New Coronavirus Infection in the Russian Federation

Lex Russica ◽  
2021 ◽  
Vol 74 (2) ◽  
pp. 64-79
Author(s):  
R. V. Tkachenko
Keyword(s):  
Public Relations ◽  
Russian Federation ◽  
The State ◽  
Russian Society ◽  
Coronavirus Infection ◽  
The Russian Federation ◽  
Legal Forms ◽  
The Impact ◽  
Budget System

The paper is devoted to the examination of issues related to the increasing importance of budgetary regulation for the proper functioning of a modern innovative society. The key role of the budgetary regulation in the financial process of the State is particularly acute in the context of systemic crises that include socio-economic consequences caused by the spread of a new coronavirus infection (COVID-19) in Russia. In the course of the study, the features of changes in the state financial policy caused by the above-mentioned crisis phenomena are highlighted. The paper describes various approaches to the interpretation of the budgetary regulation as a category of financial law, explores various types and legal forms of methods of the budgetary regulation, analyses mechanisms and the impact of the State on the budget system through the existing legal structure of the budgetary regulation. It is determined that the rules of financial law governing the whole complex of public relations concerning the distribution and redistribution of the national product between the levels of the budget system of the Russian Federation constitute the institution of financial law, namely: the budgetary regulation. The author concludes that the approach based on the concentration of basic powers in the financial field at the federal level significantly slows down the dynamics of development of economic activity in the majority of regions of Russia, while the need for breakthrough innovative development of Russian society determinates the expansion of long-term tax sources of income for regional budgets. In this regard, it is proposed to consolidate additional regulation for revenues gained by regional and local budgets in the form of targeted deductions from federal taxes on a long-term basis.

scholarly journals Regional budget policy: conceptual dominants and vectors of development

2021 ◽  
Vol 11 (-) ◽  
pp. 27-30
Author(s):  
Vitalii ZIANKO ◽  
Tetiana NECHYPORENKO
Keyword(s):  
Policy Development ◽  
Local Governments ◽  
Local Level ◽  
Public Authorities ◽  
Budget Planning ◽  
Regional Budget ◽  
Budget Policy ◽  
State And Local ◽  
Definition Of ◽  
Regional Budgets

The paper is devoted to the implementation of regional budget policy in Ukraine. The main vectors of budget policy development as a component of socio-economic policy at the local level are highlighted. Within the framework of the declared budget policy, the peculiarities of the formation and functioning of local (regional) budgets are considered. The interpretation of the definitions of "budget" and "policy" is presented, and the author's definition of the essence of the budget policy of the region is offered. The conceptual dominants of budget policy, the implementation of which takes place through the budget mechanism, are studied. It is proved that budget policy is an important lever of influence and a real reflection of the tactics and strategy of public authorities and local governments in the budget sphere. It is substantiated that the effectiveness of the implementation of regional budget policy directly depends on the sequence of steps aimed at increasing the level of competitiveness of the regions and overcoming the existing regional disparities. On the basis of generalization of thematic researches and practice the offers concerning application of levers of budgetary regulation which define a level of efficiency of budgetary policy of region are formulated. It is stated that the content of the budget policy of the region should be to determine the course, tasks and activities of the state and local governments in the field of formation and use of budget funds. Full implementation of the budget policy of the region stimulates the functioning of economic activity of administrative-territorial units, promotes rational budget planning, as well as the effective filling, distribution and use of local financial resources.

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