Conceptual Approaches to the Concepts of Tax and Budget Federalism

Abstract

In the work carried out, the theoretical aspects of budget and tax federalism were explored, taking into account the diversity of proposed conceptual approaches to their content and the lack of a unified approach to defining these concepts. The vagueness and diversity of interpretations of budgetary and tax federalism reduces their scientific validity and certainty, which hinders their effective implementation in the process of developing management decisions. Features of the organization of the system of state and municipal government in the Russian Federation in matters of delimitation of budgetary and tax powers between levels of government lead to the emergence of many problems, the key of which is the high level of differentiation of the subjects of the Russian Federation in terms of budgetary security. The purpose of the study was to develop a conceptual approach to understanding the concepts of “fiscal federalism” and “tax federalism” based on existing scientific definitions, as well as taking into account the peculiarities of their implementation in the Russian Federation. To carry out the work, methods of fundamental developments in the field of financial theory, scientific generalizations and comparative analysis were used. The results of the study were theoretical generalizations and analysis of the practical implementation of fiscal regulation mechanisms, as well as the author’s definition of the concept of “tax federalism”, and the key elements of its focus were highlighted. The final part of the article formulates the main conclusions based on the results of the analysis of the theory of budgetary and tax federalism, characterizes the features of their implementation in the Russian Federation, reveals the economic essence of tax federalism, its functional basis for the purpose of improving the mechanism of interbudgetary relations.