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The Law on Benefits Monetization: Delineation of Spending Powers and Unfunded Mandates

Author

Listed:
  • Anna B. Zolotareva

    (Russian Presidential Academy of National Economy and Public Administration; Director of Center for Legal Studies of Gaidar Institute for Economic Policy)

Abstract

The article concentrates on the analysis of practical application of the Federal Law №122-FZ of August 22, 2004 in the context of delineation of spending powers in the social protection sphere between the state and local governments. The author concludes that the Law №122-FZ, having significantly streamlined the system of delineation of spending powers in the social protection sphere, failed to solve all the problems in that field and in a number of cases gave rise to new ones. The main shortcomings of the Law №122-FZ are: inconsistencies on the issue of preserving in-kind benefits for the federal benefit holders, whose right to receive them had arisen before the Law entered into force, and also uncertainty on the issue of unfunded mandates, i. e. strictly specified by federal law spending obligations of lower level budgets without compensating costs of satisfying them. The article contains the author’s propositions on the amendments to the legislation aiming to solve the identified problems.

Suggested Citation

  • Anna B. Zolotareva, 2014. "The Law on Benefits Monetization: Delineation of Spending Powers and Unfunded Mandates," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 4, pages 94-104, December.
    • Handle: RePEc:fru:finjrn:140409:p:94-104
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