Stimulating the revenue potential and fiscal independence of regions

Стимулирование доходного потенциала и финансовая самостоятельность регионов

Klimanov, Vladimir (Климанов, Владимир) (), Timushev, Evgeny (Тимушев, Евгений) () and Mikhaylova, Anna (Михайлова, Анна) ()
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Klimanov, Vladimir (Климанов, Владимир): The Russian Presidential Academy of National Economy and Public Administration
Timushev, Evgeny (Тимушев, Евгений): The Russian Presidential Academy of National Economy and Public Administration
Mikhaylova, Anna (Михайлова, Анна): The Russian Presidential Academy of National Economy and Public Administration

Working Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: The relevance of this study is due to the lack of comprehensive and systematic knowledge on measures to stimulate the economic development of regions based on a solid theoretical and methodological basis and practical experience of federal countries. The purpose of the study is to establish the most promising directions and instruments of the policy of inter- governmental fiscal relations for stimulating regional economic development, applicable in foreign countries for the implementation of best practices in the budget system of the Russian Federation. The object of the study is the mechanisms of stimulating the fiscal capacity while preserving the budgetary independence of public authorities at the subnational level. The conducted international survey shows that in most federal countries of the world there are long-term trends of increasing fiscal and administrative powers of regions and municipalities. This may indicate the practical success of controlled tax decentralization in ensuring the development of the general tax potential of the state and the efficiency of the public sector as a whole. It is established that the tax sharing arrangements (shared taxes) as an instrument under the policy of budgetary stimulation of regional development are the most promising in the current conditions of the budgetary system of the Russian Federation. In this context, the mechanism for allocating intergovernmental grants should fulfil the function of supporting national development projects and regulating horizontal fiscal imbalance. The control of emerging risks will reduce costs while also ensure a positive effect 3 caused by the growth of fiscal independence within the relevant powers of subnational public authorities. The novelty of this research is backed by a comprehensive analysis using scientific methods of foreign experience in the development and application of tools to stimulate the regional fiscal capacity and the proposal on this basis the promising areas and tools to stimulate regional economic development applicable in the conditions of the budgetary system of the Russian Federation. Research methodology: analysis of budget legislation, review of foreign studies, grouping, comparison, systematization and system analysis, comparative analysis.

Keywords: international experience; tax sharing arrangement; shared taxes; elements of taxation; tax sharing rates; intergovernmental grants (search for similar items in EconPapers)
JEL-codes: H72 H75 H76 H77 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2023
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