Abstract

Russia's system of fiscal federalism is examined and evaluated. Current theories of fiscal federalism provide criteria for evaluating such systems. Developments in OECD countries are examined to provide comparative perspectives. Data from Russia's Goskomstat and the Ministry of Finance, which provide an overview of Russia's regional economic characteristics, are used to apply the selected evaluation criteria to Russia's system of fiscal federalism and to identify several reasons that suggest the need for a redistribution of income among regions. Finally, reform proposals are discussed.

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