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Forming the Russian Model of Fiscal Federalism

Olga Bogacheva

Problems of Economic Transition, 1996, vol. 39, issue 1, 69-82

Abstract: Russian fiscal federalism is going through a complex, painful stage in its formation that is characterized on the one hand by the inevitable struggle between regions with fiscal "traditions" of the totalitarian state, and on the other, by the attempt to preserve Russia as a single whole, preventing the prevalence of local interests over national ones. The given stage is complicated by the accelerated imbalance of the fiscal system both vertically (i.e., at different fiscal levels) and horizontally (i.e., at the same level). While aggregate regional budget revenues had already exceeded expenditures in 1992, the consolidated regional budget deficit in 1993 reached approximately 3 trillion rubles, or 10 percent of expenditures. By 1994, the aggregate deficit totaled 18.6 trillion rubles, or 17.5 percent of expenditures (see Table 1).

Date: 1996
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DOI: 10.2753/PET1061-1991390169

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Handle: RePEc:mes:prectr:v:39:y:1996:i:1:p:69-82