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Regions with Low Financial Sustainability: Analysis and Enhancement of Development

Author

Listed:
  • Pavel V. Stroev

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

  • Olga V. Pivovarova

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

  • Khasanbi V. Sheozhev

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

  • Anna I. Dudnik

    (Financial University under the Government of the Russian Federation, Moscow, Russian Federation)

Abstract

This article presents an analysis of the socio-economic development and fiscal position of the subjects of the Russian Federation with low financial sustainability. The existing domestic and foreign approaches to understanding the concept of "financial sustainability of territory" are analyzed. It is proved that the regions with low financial sustainability include the subjects of the Russian Federation with a high level of gratuitous receipts in the structure of the regional budget and lagging behind the average Russian regions in terms of basic economic parameters. The relevance of the study lies in identifying problems that hinder the economic growth of such regions, as well as in developing measures to improve interbudget relations. ITo carry out the analysis and identify the specifics of management of these territories, the authors identify a group of regions with low financial sustainability, having different geographical location and degree of intensity of this problem (the Republics of Mordovia and Tyva, the Trans-Baikal Territory, the Pskov and Oryol Regions, the Jewish Autonomous Region), and apply an original methodological approach based on the assessment of the socio-economic situation and the fiscal position. As a result, both general socio-economic (depopulation, low wages, unemployment, depreciation of fixed assets, low investment and innovation activity) and fiscal (budget imbalance, low level of financial independence, debt burden) problems of these subjects of the Russian Federation, as well as problems specific to each of them, are identified. Measures to enhance economic development and growth of the income base of regions with low financial sustainability are proposed, and suggestions for improving regulatory legal acts in the field of state regional management are formulated.

Suggested Citation

  • Pavel V. Stroev & Olga V. Pivovarova & Khasanbi V. Sheozhev & Anna I. Dudnik, 2023. "Regions with Low Financial Sustainability: Analysis and Enhancement of Development," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 1, pages 26-44, February.
    • Handle: RePEc:fru:finjrn:230102:p:26-44
    DOI: 10.31107/2075-1990-2023-1-26-44
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial dependence of regions; regional financial sustainability; economic growth; regional debt; fiscal position; spatial development;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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