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Prospects for the use of the “model budget” in the distribution of equalization grants in Russia
https://doi.org/10.32609/0042-8736-2019-4-21-38
Abstract
The paper analyzes the impact of the “model budget” on the problems of intergovernmental relations in the Russian Federation: a high proportion of expenditure obligations of regional and local budgets and a high degree of interregional inequality in fiscal capacity and socio-economic development. It was concluded that the planned broader use of the “model budget” will not solve the problem of unfunded mandates and will lead first to a significant reduction in incentives for regional authorities to develop the territorial revenue base, and then to economic slowdown in the country. As an alternative approach to improving intergovernmental relations, options are being considered for adjusting the parameters of the equalization transfers distribution formula, the procedure for determining their total volume and calculating the budget expenditure index. In solving the problem of unfunded mandates, an equally important role is given to the procedure for preparing a financial and economic rationale for draft laws.
About the Authors
Alexander N. Deryugin
Russian Presidential Academy of National Economy and Public Administration; Financial Research Institute of the Ministry of Finance of the Russian Federation
Russian Federation
Moscow
Russian Federation
Moscow
Ilya A. Sokolov
Russian Presidential Academy of National Economy and Public Administration; Russian Foreign Trade Academy of the Ministry for Economic Development of the Russian Federation
Russian Federation
Moscow
Russian Federation
Moscow
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Review
For citations:
Deryugin A.N., Sokolov I.A. Prospects for the use of the “model budget” in the distribution of equalization grants in Russia. Voprosy Ekonomiki. 2019;(4):21-38. (In Russ.) https://doi.org/10.32609/0042-8736-2019-4-21-38
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