Federal intergovernmental transfers in the Russian Federation: experience and results of implementation

Alexander A. Pobedin ()
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Alexander A. Pobedin: The Russian Presidential Academy of National Economy and Public Administration (RANEPA), Ekaterinburg, Russia

R-Economy, 2024, vol. 10, issue 2, 174-189

Abstract: Relevance. Intergovernmental budgetary regulation is pivotal for promoting territorial equalization and bridging socio-economic gaps among regions. It ensures equitable access to public goods for all citizens, irrespective of their location. The effective distribution of federal financial assistance, guided by the principles of budget federalism, is essential for maintaining macroeconomic stability and fostering sustainable socio-economic development on the national and regional levels. Research objective. The study aims to assess the competitive positions of Russian regions within the distribution system of federal intergovernmental transfers. Data and methods. To investigate Russia’s system of intergovernmental transfers, the research employs statistical methods, including structural-dynamic, grouping, and graphical analysis, along with novel analytical tools like the dependence coefficient and income coefficient. The study encompasses data from 2015 to 2022, sourced from the Federal Treasury and Federal State Statistics Service (Rosstat). Results. The study analyzes the dynamics of transfers from the federal budget to regional budgets and shows significant transformations in the transfer structure, revealing a decrease in non-targeted transfers and an increase in targeted ones. The study also examines the differences between regions in the distribution of these transfers. Russian regions were grouped depending on the share of federal transfers in their total budget income and the average per capita income in their consolidated budget. The study introduces a novel methodological approach through the use of newly developed tools—the dependence coefficient and income coefficient—to evaluate regional competitiveness. Conclusions. Despite an overall increase in federal transfers, persistent regional disparities intensify competition for financial assistance. These findings can be of interest to policymakers at federal and regional levels, researchers, and educators in relevant fields.

Keywords: regions; interbudgetary transfers; subsidies; grants; subventions; budget federalism; regional budgets; interregional differentiation; regional competitiveness; regional policy (search for similar items in EconPapers)
JEL-codes: G28 R1 R5 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:journl:v:10:y:2024:i:2:p:174-189

DOI: 10.15826/recon.2024.10.2.011

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