Coordination between Federal and Regional Governments While Conducting Anti-recession Policy: International Practice

Abstract

In countries with multilevel budget system the efficiency of anti-recession policy largely depends on the coordination between federal, regional and municipal governments. It can be achieved by using various intergovernmental fiscal instruments such as reduction of federal taxes and tax redistribution between government levels, softening credit requirements for subnational governments, unconditional and block grants, federal investments in regional infrastructure and co-financing of regional programs affecting people with low and moderate income. Analysis of international practice helps to understand whether it is reasonable to use these instruments in Russia.