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Toward budgetary independence of municipal units

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  • D.P. Pupenko

Abstract

Within the framework of fiscal policy it is suggested using regulating taxes along with financial aid from higher-level budgets to provide financial independence for local government. On the case of personal income tax of the Novosibirsk region it is shown that introduction of differentiated rates in distribution of regulating taxes yields equalizing effect. It is concluded, therefore, that it is necessary to go from universal subsidies to technologies of earmarked programmatic funding based on concrete priorities of regional budgetary policy.

Suggested Citation

  • D.P. Pupenko, 2003. "Toward budgetary independence of municipal units," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
    • Handle: RePEc:nos:regioe:2003-4_13
    Note: Issues of Local Government and Municipal Development
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