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‘Model’ Budgets: Consequences for the Russian Federal Subjects

Author

Listed:
  • Roman Sergeyevich Afanasyev

    (Financial Research Institute of the Ministry of Finance of the Russian Federation)

  • Leonid Nikolayevich Bogdanov

    (Financial Research Institute of the Ministry of Finance of the Russian Federation)

  • Ruslan Vitalyevich Gulidov

    (Federal Scientific Institution ‘Eastern Center of State Planning’ Ministry of Eastern Development of the Russian Federation)

  • Sergey Nikolaevich Leonov

    (Economic Research Institute FEB RAS)

Abstract

The article studies the proposed method of distribution of subsidies among the subjects of the Russian Federation based on the calculations of ‘model’ budget. The authors analyzed the real consequences of the mechanism of redistribution of total subsidies aimed at equalizing the budgetary security and clarified the method of increasing the subsidies to the least secure regions to realize two goals: 1) provide equal access to constitutional rights to all the citizens; 2) limit the burden on federal budget and decrease the level of subsidies to the federal subjects of Russia. The analysis of consequences of using ‘model’ budget was based on the Far Eastern subjects of Russia. There are positive and negative sides to changing to the ‘model’ budget method for the Far East. In case of using the ‘model’ budget there is a discrepancy between budget expenses and estimated demand for subsidies. It is necessary to fully account for appreciation factors and coefficients, population numbers and the specifics of transportation expenses of institutions that provide the access to constitutional rights, including the specifics of transport network of every federal subject. The hypothesis is that the ‘model’ budget has to be based on the norms of financial expenses required to carry out the authority by a particular subject. Otherwise the regional budgets will be based on the current actual average expenses, which will lead to the transfer of budgetary means from the northern and Far Eastern subjects to the others

Suggested Citation

  • Roman Sergeyevich Afanasyev & Leonid Nikolayevich Bogdanov & Ruslan Vitalyevich Gulidov & Sergey Nikolaevich Leonov, 2019. "‘Model’ Budgets: Consequences for the Russian Federal Subjects," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 132-156.
  • Handle: RePEc:far:spaeco:y:2019:i:1:p:132-156
    DOI: 10.14530/se.2019.1.132-156
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    References listed on IDEAS

    as
    1. A. Kudrin & I. Sokolov., 2017. "Fiscal rules as an instrument of balanced budget policy," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
    2. Nataliya V. Golovanova, 2018. "Intergovernmental Transfers: Diversity of Terms and Russian Practice," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 24-35, April.
    3. Sergey Nikolaevich Leonov & Tatyana Vladimirovna Kazantseva, 2006. "Problems of Improving Interbudgetary Relations at a Level of a Subject of the Russian Federation," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 29-43.
    4. Vladimir V. Klimanov & Anna M. Korotkikh, 2016. "The Allocation of Intergovernmental Transfers: Theoretical Background and the Russian Practice," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 7-15, October.
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    Cited by:

    1. Elena B. Veprikova & Aleksei A. Novitskii, 2021. "Public Expenditure in Regions: Current State and Problems (Exemplified by Registries of Expenditure Commitments of the Regions in the Russian Far East)," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 117-131, December.

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    More about this item

    Keywords

    ‘model’ budget; budget transfers; subsidies on equalizing the budgetary security; inter-budget relations; subject of the Russian Federation; Far Eastern Federal District; Russian Federation;
    All these keywords.

    JEL classification:

    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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