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On the Possibilities of Tax Decentralization in Russia

Author

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  • Igor Yu. Arlashkin

    (RANEPA, Moscow, Russian Federation)

Abstract

During the structural transformation of the Russian economy, it is especially important to ensure the balance of consolidated regional budgets, in particular through tax decentralization. The article presents the results of modeling the redistribution of tax revenues between the federal and regional levels of the budget system. The purpose of modeling was to find such parameters of tax decentralization which do not worsen the horizontal balance of consolidated regional budgets. The scientific novelty of the paper lies in modeling the effects of tax decentralization on the level of differentiation of regional tax revenues according to the latest available tax and budget reporting data for 2019–2022. As a result, it was shown that an increase in regional shares for personal income tax, certain components of the mineral extraction tax, water tax and fees for the use of water biological resources up to 100% will not lead to a significant increase in inter-regional differentiation of tax revenues. The prospects of the study are to take into account the impact of the structural transformation of the economy on the territorial distribution of tax bases and the level of taxation, as well as to detail the calculations for personal income tax and mineral extraction tax as new data are accumulated.

Suggested Citation

  • Igor Yu. Arlashkin, 2023. "On the Possibilities of Tax Decentralization in Russia," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 78-90, June.
    • Handle: RePEc:fru:finjrn:230305:p:78-90
    DOI: 10.31107/2075-1990-2023-3-78-90
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    References listed on IDEAS

    as
    1. Alexander Deryigin & Irina Filippova & Igor Arlashkin, 2021. "Impact of intraregional tax decentralization on the development of the income base of the regions [Влияние Внутрирегиональной Налоговой Децентрализации На Развитие Доходной Базы Регионов]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 8-33, April.
    2. Richard M. Bird, 2008. "Tax Assignment Revisited," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0805, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    3. Alexander D. Andryakov & Evgeniy A. Dombrovskiy, 2020. "Fiscal Measures to Boost the Economic Development of Russian Territories," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 99-113, October.
    4. Aleksandra L. Osmolovskaya-Suslina & Sofiia R. Borisova, 2022. "Regional Budget Revenues in Early 2022: Main Trends and Risk Factors," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 25-43, December.
    5. Vladislav Bukharskiy & Alexey Lavrov, 2021. "Intergovernmental Relations And Public Administration: Opportunities And Limitations Of Decentralization," Public administration issues, Higher School of Economics, issue 2, pages 126-153.
    6. Mr. Richard Miller Bird, 1999. "Rethinking Subnational Taxes: A New Look At Tax Assignment," IMF Working Papers 1999/165, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    redistribution of tax revenues; tax decentralization; fiscal federalism; regional budgets; balance of budgets;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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