Inter-budget Transfers Research Articles

Statistics of regional differences and the status of budgetary system of the Russian Federation

The purpose of the article is to assess the current state and develop measures of state policy to overcome consistently the interregional differences in the level and quality of life of the population based on promoting the independence of regional and local authorities of the Russian Federation. The applied purpose of the work is to determine the optimal values of the distribution of revenues of the consolidated budget of the Russian Federation at the levels of the budget system as a financial condition of the solvency of the subnational authorities. Due to the provisions of the Decree of the President of the Russian Federation from 07.05.2018 No. 204 “On National Goals and Strategic Objectives of the Development of the Russian Federation for the Period up to 2024” the range of issues is of critical importance, as it requires the inclusion of regional and local authorities in the implementation of national projects.Materials and methods. The paper analyzes the changes in the level of interregional differences in the main indicators of socio-economic development of the Russian Federation for 2000, 2005 and 2016–2018. Based on the analysis of interregional differentiation by the own and total revenues of their consolidated budgets, the changes in the level of financial independence of subnational authorities were assessed. As factors, hindering the development of regions with “selfreliance”, the state debt policy, the policy of inter-budget transfers, as well as the structure of income of the three-level budget system of the country are indicated and analyzed. The methodological basis of the study is the work on regional statistics, structural analysis, quantitative modeling. Tabular and graphic methods of visualization of research results, statistical methods of processing of initial data were used. For the solution of research tasks, the standard packages of the applied programs of Microsoft Windows were used.Results. The article shows the excessive centralization at the Federal level of the main decisions that determine the fiscal and debt policy of regional and local authorities, the “explosive” growth in the volume of subnational debt for these years, as well as the “blurring” of inter-budget transfers from the Federal budget to the budgets of the subjects of the Russian Federation. The debt policy of the state and inter-budgetary regulation are estimated as not fully corresponding to the tasks of spatial development of the country. A system solution for optimizing the structure of three-level budget system of the Russian Federation is proposed and a method for determining the optimal values of the distribution of revenues of the consolidated budget of the Russian Federation by levels of the budget system is given.Conclusion. The paper deals with the differentiation of Russian regions in terms of the level and quality of life of the population, analyzes the factors that led to this differentiation. The high heterogeneity of Russia’s spatial development is one of the features of its economy. State fiscal and debt policy, inter-budget transfer policy are the key factors in consistently solving the problems of overcoming interregional differences in the level and quality of life of the population, improving the competitiveness of the country, ensuring sustainable economic growth. Achieving the optimal structure of the budget system (as well as the movement to it) will create conditions not only for the inclusion of subnational authorities in the implementation of national projects, but also for the implementation of the diversity of the potential of its regions – a unique advantage of the Russian Federation.

Russian Regional Debt Sustainability Estimation

The article deals with estimation of Russia debt stability policy on regional level. Topicality of the issues is stipulated, on the one hand, by the fact that certain entities of the Russian Federation cannot support their spending liabilities by their own resources and have to use debt financing. On the other hand, budget restrictions of regions cannot be considered strict. The article analyzes ways of estimating debt stability, which are used in today's research and grounds the choice of assessing the function of fiscal response as a key method. By using cluster analysis through k-means method entities of the Russian Federation were divided by the degree of subsidy need and indicators of economic efficiency into three clusters: developed, medium and dependent. For the first two groups with the population of regions sufficient for correct model building the function of primary budget balance in response to debt accumulation is estimated. By results of assessing regressions by the generalized method of moments (two-step Arellano-Bond procedure) favorable primary budget balance was found for the developed group (considerable 10% impact of the accumulated debt), which proves stability of debt policy. As for medium regions considerable impact is not fixed in the model specification. However, if we take into account budget credits in the total amount of debt and transfers - in the budget balance, then debt policy of medium regions is estimated as stable at 5% level. It means that for medium regions stability of their debt is provided by federal support: such regions have a wide access to transfers from the federal center and do not need budget credits. Our hypothesis concerning soft budget restrictions for Russian regions was proved: cut in own earnings of the region affects the growth in inter-budget transfers without taking into account transfers for leveling. Findings of the research show instability of debt policy in many Russian regions and to a certain extent, models' ability to provide quantitative estimation of fiscal response and to identify problematic regions requiring individual recommendations.

Financial Support of Regions as a tool to Equalize budgetary Security of the Constituent Entities of the Russian federation

The authors have considered current forms and methods of financial support for the regions in Russia. The dynamic analysis allowed to obtain a comprehensive assessment of the interbudgetary transfers provided by the federal budget for the socioeconomic development of the regions in recent years with a view to reducing their economic differentiation and ensuring the implementation of the state regional powers. The methods of economic and statistical analysis were used. The authors conclude that the main form of financial support for the regions of Russia is subsidies to equalize fiscal security. The study proved that the increasing financial assistance in the form of subsidies leads to a decrease of the budgetary support level of the regions. Financial support for the Russian regions in the form of subsidies and subventions has a number of serious shortcomings: the multi-channel financial assistance to the region and the lack of an integrated approach which leads to dispersal and low return on public funds and makes it difficult to control their spending; fragmentation of its provision; reduction of incentives for self-development; difficulty in assessing the amount of assistance needed; refinancing. The identified problems require further implementation of motivation mechanisms for the state authorities of the constituent entities of the Russian Federation to increase the tax revenues of the regional budget. The article outlines possible ways to form financial incentives for independent regional development. It is proposed to provide the regions with consolidated subsidies. The regions will be able to independently determine the directions for their spending. This will allow for a balanced transition from the state control over spending the subsidies to the control over the results of their allocation.

BUDGETARY REVENUE BREAKDOWN AT THE LOCAL LEVEL OF PUBLIC ADMINISTRATION IN FEDERAL COUNTRIES

Ensuring the financial autonomy of local government bodies is an important component for creating conditions on accelerating the development of individual territories of the country and increasing the efficiency of their use. Creation of mechanisms for providing sufficient amounts of financial resources, activities of the above-mentioned authorities require thorough research in this area, especially within the study of foreign experience by building budget systems and organizing redistribution of financial resources between their individual components at different levels. Experience of federative countries is particularly significant in this area. The outlined confirms the relevance of the chosen topic of the article. Accordingly, the following goal of the research was set – to identify structural features and trends in the transformation of budget revenues at the local level of public administration in federative countries from 2000 to 2015. To achieve this goal, the following tasks were set: to determine the revenues structure of local government in federative countries; to analyse main tendencies of the change of the specified structure during 2000–2015; to apply cluster analysis in order to identify groups of countries that are similar to the processes of revenue generation of local government budgets in federative countries. Methodology. Statistics for assessment of budgetary revenue’s breakdown in several federative countries by the IMF data was processed, assessment of breakdown transformation with the use of the Ryabtsev index was done, and similarity and distinctions of revenue’s breakdown in different countries with the use of the hierarchical cluster analysis was investigated. Outcomes. It was found that among the analysed federative countries, the own tax revenue has a significant share (higher than 30% in a breakdown of all revenue) only in Belgium, Germany, Australia, Canada, and also in Bosnia and Herzegovina; the inter-budgetary transfers take the main position in financing of local budgets in Austria, Belgium, Canada, Russia, and Brazil; own non-tax revenues in local budgets are significant only in Australia and Bosnia and Herzegovina. It was proved that in fifteen years only in Russia, the opposite type of revenues breakdown sources was created and it demonstrates shifting to the centralization of public finance. It was also revealed that in 2000, the countries’ cluster structure by breakdown sign had obviously expressed group character, but further it evolved from a group structure to the step structure displaying specifics in the formation of local budgets’ revenues in each country. Practical implications. Practical outcomes of the study are analytical information on the structure of revenues of local government in federative countries, which may be useful by introducing new mechanisms for increasing the financial autonomy of local self-government. In addition, the obtained data may be useful for other not federative countries in terms of studying peculiarities of the formation of budget revenues of local government and analysis of the impact of such revenues on the socio-economic development of separate territories. Value/originality. The conducted study is relevant given the importance of developing local government in federative countries and providing it with the necessary financial resources for independent self-functioning. The data obtained during the research implementation are of practical value and can be used in the process of implementing measures to increase the financial independence of budget revenues at the level of local self-government in federative countries. This research was carried out within the framework of the scientific work performing of the Department of Finance, Banking and Insurance of the Chernihiv National University of Technology on the following topics: “Financial stability of economic systems in crisis management” (No. 0115U001149) and “Theoretical and applied aspects on financial provision of the national economy” (State Registration No. 0113U002741).

Interlevel Financial Flows in the Budget System of the Russian Federation

The article examines direct and reverse financial flows between regions and the federal center. The objectives of regional and budgetary policy are considered. The methodological problems of assessing the scope of financial flows and their interchangeability are discussed. The author agrees that donor and recipient regions should be distinguished according to the criterion of balance of all interlevel financial flows, rather than being based only on receipt of funding or transfers from the federal budget. Such an approach makes it possible to partially eliminate changes in budget legislation on allocation of funding to regions. Comparison of the results of studies conducted in 1996–1998 and now shows that the number of donor regions has slightly increased for the period under review. It was found that consolidation of public finances in Russia did not lead to a significant reduction in differentiation in the development levels for regions. A trend of partial replacement of interbudgetary transfers by direct federal budget expenditures is revealed.

Проблемы управления «транзитными» доходами федерального бюджета в Российской Федерации

The article is dedicated to issues related to management of the so-called transit revenues in modern budgeting in Russia. By “transit” revenues the authors mean the category of non-tax budget revenues which are managed outside of established budgetary procedures, are not reflected in federal laws on budget, and are only included in the annual budget execution reports prepared by the Russian Treasury. The authors focus on the two most widespread types of “transit” revenues, i.e. on revenues of foreign establishments from legally permitted activities, and on remaining balances of subsidies and other targeted inter-budget transfers, returned to the federal budget. The major problem of “transit” revenues is that their volume increase and scope extension could cause additional risks associated with stability and robustness of the Russian budgetary system. As a result of the analysis, it was concluded that there is no universal solution to this problem, since each type of “transit” revenues is caused by its own reason or group of reasons. The authors analyze modern international experience in similar areas of revenue management and assess the viability of its application in budget revenue management in Russia. “Transit” revenues of foreign establishments originate from their unique legal status, allowing them to keep part of the revenues in the current year and/or in the future periods. Thus, they function in accordance with the net budgeting principle. As for “transit” revenues originated from the return of remaining balances of inter-budget transfers to the federal budget, their growth could be limited by the introduction of a new budgetary instrument, namely a revenue plan.

Інструменти нарощення потенціалу бюджетів об’єднаних територіальних громад

The article deals with the substantiation of the tools used to increase the budget potential of amalgamated territorial communities. The purpose of the research is to substantiate individual elements of the budget potential of amalgamated territorial communities and to provide their analytical assessment. The purpose determined the following tasks: to outline and characterize the elements of the potential of territorial communities; to identify and theoretically substantiate possible tools to increase budget potential of territorial communities as a financial basis for their sustainable development. In the course of the research, the following methods were applied: system and benchmarking analysis, abstract-logical method, economic and statistical method, method of graphic representation, tec. It was established that the potential of a territorial community can be defined as a complex of natural, production, demographic, financial and economic, investment and innovation, labor and social potential with relevant resource provision and possibilities for development. The elements of the potential are characterized; and their features for territorial communities are highlighted. It is emphasized that resources that form the potential of an amalgamated territorial community can be divided into two groups: basic (environmental conditions, territory, population of different age groups and work status with different level of expertise, as well as socioeconomic level of the development of a region) and acquired (those tangible and intangible assets which a community has formed in the course of its development: tangible and intangible assets, objects of social and transport infrastructure, community’s image, etc.). The method of correlation analysis was used to prove that the availability of a certain resource potential is not an ultimate prerequisite for the community development. The article identifies and theoretically substantiates possible tools to increase the budget potential of amalgamated territorial communities in terms of tax and non-tax revenues to local budgets, income from operations with capital and inter-budgetary transfers. The further research will be aimed at the development of proposals how to improve the revenue management of amalgamated territorial communities

LOCAL TAXES AND CHARGES IN LOCAL BUDGETS’ INCOME GENERATION

The aim of the article is to determine the role of local taxes and charges in local budgets’ income generation, as well as to conduct a comparative legal study of regulatory legal acts that determine the legal basis for local budgets’ income generation by local taxes and charges. The subject of the study is local taxes and charges in local budgets’ income generation. Methodology. The study is based on the dialectical method of scientific knowledge and corresponding general scientific methods, such as analysis, comparative, analogy, induction, and others. The results of the study revealed that to implement positive foreign experience in generating incomes of local budgets, a number of negative aspects should be restricted. Unfortunately, the ratio of subventions and subsidies in the incomes of local budgets of Ukraine demonstrate no positive trend. In Ukraine, local bodies have very little and weak powers even for the use of funds distributed via the budgetary system. Therefore, most of the funds transferred from the State Budget of Ukraine to local budgets, in reality, are only their imaginary income. Practical implications. Local taxes and fees in the context of their participation in local budgets’ income generation are under the study. Negative tendencies of a significant proportion of inter-budgetary transfers in the financial provision of regions and territorial communities are identified. The author argues that the increase in revenues from local taxes and charges, accretion of local bodies’ tax powers is aimed at ensuring the independence of local budgets, reducing the burden on the State Budget of Ukraine. Relevance/originality. A legal analysis of local taxes and charges in local budgets’ income generation and definition of problems in the budgetary sphere are the foundation for the development of the most promising spheres for domestic legislation improvement in respect of the aspect.

Using Conditional Inter-Budgetary Transfers to Equalize the Living Standards

Using Conditional Inter-Budgetary Transfers to Equalize the Living Standards

ОЦІНКА СТАНУ ДЕЦЕНТРАЛІЗАЦІЇ МІСЦЕВИХ БЮДЖЕТІВ УКРАЇНИ

Необхідною умовою формування ефективного місцевого самоврядування є децентралізація влади. Тому важливо поглибити теоретико-методичні засади оцінки стану децентралізації місцевих бюджетів України. Встановлено, що оцінка стану децентралізації місцевих бюджетів вимагає використання комплексу показників, які б найповніше характеризували фінансову децентралізацію. Запропоновано розподілити показники оцінки стану децентралізації місцевих бюджетів за трьома критеріями: впливу децентралізації на формування доходів місцевих бюджетів; децентралізації місцевих бюджетів згідно з бюджетною класифікацією; залежності місцевих бюджетів від міжбюджетних трансфертів.Запропоновано систему окремих показників, які можна використовувати для оцінки стану децентралізації місцевих бюджетів, і визначено критерії оцінки впливу децентралізації на формування доходів місцевих бюджетів згідно із запропонованою методикою розрахунку. За результатами аналізу окремих показників оцінки стану децентралізації місцевих бюджетів встановлено, що такий аналіз не дає загального уявлення про стан їх децентралізації, тому авторами розраховано показники за окремими критеріями з використанням вагових коефіцієнтів.Обгрунтовано, що параметри моделі лінійного тренду для критеріїв оцінки впливу децентралізації на формування доходів місцевих бюджетів свідчать про велику визначеність процесу їх спадання. Протягом останніх років простежується тенденція до зниження критеріїв оцінки впливу децентралізації на формування доходів місцевих бюджетів. Встановлено нестабільну тенденцію до зміни критеріїв оцінки децентралізації місцевих бюджетів згідно з бюджетною класифікацією. При цьому параметри моделі лінійного тренду для субіндексів критеріїв оцінки залежності місцевих бюджетів від міжбюджетних трансфертів говорять про велику визначеність їх спадної тенденції.У процесі дослідження розроблено систему показників для визначення стану децентралізації місцевих бюджетів. Апробація методики розрахунку інтегрального показника підтвердила можливість її використання для аналізу стану децентралізації місцевих бюджетів.

STATE AND TENDENCIES OF INTERGOVERNMENTAL REGULATION IN UKRAINE IN CONDITIONS OF FISCAL DECENTRALIZATION

A balanced socio-economic development of any country is closely related to the efficiency of the system of intergovernmental relations, which should be aimed at optimizing the process of fiscal decentralization and clear definition of the powers of local government. Interbudgetary regulation in Ukraine reflects processes of the national and political importance and is of great importance in the composition of intergovernmental fiscal relations, which priority is growing in terms of decentralization reforms. Purpose. The main objectives of this study are: to summarize a complex task that is resolved in the process of budgetary control; to analyze the dynamics of revenues of the consolidated budget of Ukraine in 2007-2016 and the proportion of own local revenues in GDP; to distinguish formation features of Ukrainian local budgets by region; to analyze volumes of local budgets per capita in terms of area; to highlight the leverage rate of local budgets; to analyze the share of interbudget transfers in total local budgets. Results. The study is a synthesis of the complex challenges that must be resolved in the process of budgetary control, such as: balancing the budget; foster the interest of local governments in the maximum revenue mobilization; reallocation of existing budgetary resources, taking into account local features. The dynamics of the revenues of the consolidated budget of Ukraine in 2007-2016 was analyzed and concluded that the proportion of own local revenues in GDP tended to decrease with a simultaneous increase in the share of the interbudget transfers from the state budget. Abovementioned resulted in the ensuring of a stable share of local budgets in the GDP structure (at 14-15%). As a result of the intergovernmental fiscal decentralization reform by the results of 2016 the share of own revenues of local budgets Ukraine in GDP rose to 7.2%, or 1.1% compared to 2015 with a simultaneous decrease in the interbudget transfers share from the state budget to 8.2% (0.6% compared to 2015). Analyzed the share interbudget transfers in total local budgets, which for a long period tended to increase (from 47.2% in 2007 to 53.4% in 2016), which is contrary to the basic principles of fiscal decentralization. Conclusion. Grounded features of Ukrainian local budget revenues by region and proved that the unevenness of income between regions of Ukraine are often equivalent to the level of industrial production. Analyzed volumes of local budgets per capita in terms of area. Presented the list of influence instruments on local budgets indexes of incomes, including the increase in the minimum wage, inflation, continuing reform of the budget system in the direction of fiscal decentralization and transfer volumes.

Factors of the industrial regions’ development: for modernization on an innovative basis

Modernization of the economy implies the formation of an effective industrial structure that should be modernized on an innovative basis. Using the statistical models, it will be investigated in the paper which modernization factors reveal a statistically significant relationship with the gross regional product (GRP). The purpose of the article is to test three working hypotheses: not all factors of development have a statistically significant relationship with the level of regional income; the strength of this relationship differs depending on the factor; the impact of factors and the strength of relationship depend on the level of the region’s industrial development. To do this, the regions of Ukraine were divided into three groups: industrially developed regions, regions of average industrial development and underdeveloped industrial regions. The results of modeling showed that for industrially developed regions, as well as for regions of average industrial development and underdeveloped industrial regions, the factor of R&D, innovations and of the modern sector of the economy still do not play principal role in the formation of the regional income in Ukraine. In the industrially developed regions, almost the entire amount of GRP was determined by the impact of direct foreign investment and local budgets’ revenues (excluding transfers). Moreover, the impact of the former increased significantly in 2015 in comparison with 2010. A comprehensive analysis has shown that the funds of local budgets cannot be considered as an effective resource for modernizing the economy on an innovative basis. Major part of these funds is distributed on solving current social problems in the regions. Moreover, funds of local budgets are not sufficient enough to cover the expenditures, while the share of inter-budgetary transfers in the structure of local budget revenues remains rather high. As far as foreign direct investment is concerned, for now they can compensate domestic institutions’ weakness, such as access provision to skills and capital for enterprises. On the other hand, foreign investment can be considered as the factor that restrains the development and even such that causes degradation. To provide a successful modernization of the economy, the industrial regions should rely on the internal resources for innovative growth, using the advantages and positive effects of foreign direct investment.

BUDGETARY REVENUE BREAKDOWN AT REGIONAL LEVEL OF PUBLIC ADMINISTRATION IN THE FEDERAL COUNTRIES

Urgency of the research. Process of democratization of public administration assumes redistribution of powers down within hierarchy of governance. Nevertheless, despite increase in a role of regional level of governance, financial resources of regional bodies are limited. Target setting. Regions in the most of federal countries have no full financial self-sufficiency. The truth is also that in the federal countries there is no uniform model of distribution of public incomes between the central and regional authorities. The specified circumstances induce to carry out the comparative analysis of regional budgets' revenues breakdown in these countries. Actual scientific researches and issues analysis. Nowadays more and more researches are devoted to studying of experience of various countries in formation of local budgets’ resource base: Foremny D. et al., Bobáková V., Malikká L., Reznichenko D. S. et al., Muzyka O, Volokhova I. and some other are the most noticeable. Uninvestigated parts of general matters defining. At the same time, more careful comparative analysis is necessary for understanding of an overall picture and regularities of fixing of certain financial resources to regional budgets. The research objective. To identify structural features and the directions of transformation of budgetary revenue breakdown at regional level of public administration in the federal states from 2000 till 2015. The statement of basic materials. Statistical materials for assessment of budgetary revenue breakdown is processed. Dynamics of revenue’s structural changes for budgets of regional level of public governance at federal states as well as similarity and distinctions of revenue’s breakdowns of regional budgets in federal countries are analyzed. Conclusions. A tendency to reduction of own tax revenues and increase the interbudgetary transfers share was revealed as well as two clusters (with domination of interbudgetary transfers in regional budgets’ revenue breakdown and with relatively higher of financial autonomy) were described. There is no strong evidence for real dependence between autonomy of the regional power and federal type of state system.

Совершенствование налоговой политики на региональном уровне: основные направления

Different financial possibilities of the regions in the implementation of social and economic policy require the development of a tax policy that would comply these features. The present system of tax authority distribution is characterized by its considerable centralization at the federal level. The article considers the problem of achieving a regional budgets’ balance based on raising of their tax revenues. In particular, the author analyzes the ratio of revenue sources and expenditure obligations of the Russian Federation subjects’ budget, including their dependence on inter-budgetary transfers. In addition, the author proposes the measures to improve the regional tax policy, including reducing inefficient tax benefits, the reform of a personal income tax, improvement of the efficiency in small businesses taxation and legalizationof self-employed citizens.

Drawbacks of Financial Control Legal Regulation (on the Example of Interbudgetary Transfers)

The paper is devoted to the analysis of the legal regulation of state financial control in the Russian Federation. The author, not having the purpose to consider all the components of financial control, scrutinizes only certain drawbacks of organization and implementation of budget control. Thus, the paper examines the issues of allocation of budgetary powers between the bodies of financial control of different levels of governmental and departmental affiliation, of interaction and coordination of plans for carrying out inspections of financial control bodies, and of directions of budget control. The author makes suggestions for the improvement of the budget legislation in the field in question. In particular, it is proposed to detail the competence of certain bodies of budget control, to establish barriers to the duplication of control measures, to clarify the wording of the Budget Code of the Russian Federation in the part of vertical differentiation of budgetary powers of bodies of financial control. The study is based on financial control analysis in the field of inter-budget transfers.

The determinants of budget revenues of Russian regions

This paper discusses the determinants of regional budget revenues and evaluates their impact on the level of budget provision of Russian regions. We used the panel data on 80 Russian regions in 2006-2014 embracing average population, GRP disaggregated by main economic activities, tax revenues both collected and allocated at the regional level, intergovernmental aid and total budget revenues of consolidated budgets. We applied the least-squares methods with fixed and random effects to estimate the regressions between the structure of employment in main economic activities and the collected tax revenues in Russian regions. The constructed model allowed us to distinguish activities with positive and negative influence of employment on the general tax level and to determine the elasticity of the collected tax revenue per capita with respect to the shares of employees engaged in various economic activities. Further we applied the weighted least-squares method to estimate the model, demonstrating dependency of the budget revenue per capita in Russian regions on the collected tax revenue per capita, the level of tax absorption and the share of intergovernmental transfers in consolidated regional budgets. The constructed model demonstrated high elasticity of budget provision of Russian regions with respect to the general tax level, and even more with respect to the level of tax absorption. Nevertheless, the inter-budgetary transfers showed a very slight positive impact on the dispersion of the regional budget revenue per capita over the given period. Our findings are applicable to the management of budget revenues at the regional level and to the improvement of the Russian model of fiscal federalism.

The Budget System and Inter-budget Transfers in Ukraine

The budget system is the leading element of public fi- nances and the structure of state is a determining factor in the formation of the budget system. In the unitary countries, which include Ukraine, the budget system unites two links: budget of central government and local budgets, otherwise in the federal states there is the third link: members of fed- eration’s budgets. Local governments are the largest element of the budget system in Ukraine (totally there were 12,052 independent local budgets to 01.12.2010), but now their number is reduced in the connection with the financial de- centralization and the creation of integrated communities. local governments are independent, and the main sources of revenues are own, fixed revenues and іnter-budget transfers. The main forms of іnter-budget transfers contain the basic subsidy, subvention, reversible subsidy, additional subsidies. Transfers are the most common tools of financial support to local budgets; that the volume of local budget revenues was sufficient to delegated and own powers, and to provide pub- lic services is not below the minimum of social guarantees.

Опыт внедрения новых форм предоставления целевых межбюджетных трансфертов в Республике Саха (Якутия)

Опыт внедрения новых форм предоставления целевых межбюджетных трансфертов в Республике Саха (Якутия)

ФИНАНСОВЫЕ И ПРАВОВЫЕ ПРОБЛЕМЫ ПРЕДОСТАВЛЕНИЯ МЕЖБЮДЖЕТНЫХ ТРАНСФЕРТОВ ИЗ БЮДЖЕТА СУБЪЕКТА РФ МЕСТНЫМ БЮДЖЕТАМ

Standard-legal documentation of the subject of the Russian Federation (Bryansk Region) regulating a process of interbudget transfers provision in the form of subsidies from the budget of the subject of the Russian Federation to local budgets are analyzed. According to the results of the analysis carried out there are revealed law enforcement problems the elimination of which allows ensuring higher budget efficiency.

Simulation of the Role of Government in Spatial Agent-Based Model

The paper describes the further development of an agent-based multiregional input-output model of the Russian economy. We consider the idea of incorporating the government into the model and analyze the results of experimental calculations for the conditional example of spatial economy. New agents are included into the model such as the federal and regional governments, pension fund and also the state enterprises producing public goods at the federal and regional levels. The government sets four types of taxes (personal and business income taxes, VAT and payroll taxes), ensures the provision of public goods and provides social, investment and interbudgetary transfers to households, firms and budgets. Social transfers consist of social assistance and unemployment benefits. The utility functions of households are expanded by the terms associated with national and regional public goods. The budget policy is designed in accordance with the maximization of isoelastic function of social welfare that formalizes the choice between the different concepts of social justice. The Gini index is used for the monitoring the inequality of income distribution. The results of experimental calculations present the convergence of the new version of the model to the state of quasi-equilibrium. The special attention is paid an optimal level of the taxation maximizing the social welfare function. Four variants of the optimal tax rates are defined: for three major taxes at a fixed proportion of rates and for each of the tax separately at zero rates of two other taxes. The further directions of modelling are identified, they allow to investigate the spatial development of the Russian economy taking into account the decision-making by private agents in responding to government policies.