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Taxation and Public Finance in a Transition Economy: A Case Study of Russia

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  • Robert W Mc Gee
  • Galina G Preobrageskya

Abstract

Countries that are moving from central planning to a market economy face unique problems in many areas, including taxation and public finance. The methods of collecting the revenue needed to fund government services were much different under a socialist system. Shifting to a market system requires government to create new institutions and methods of collecting revenue. All transition economies face similar problems in this regard and several different approaches have been tried in an attempt to find the solution that is best for each particular country. This paper summarizes the methods the Russian Federation is using and comments on the problems Russia still faces as it attempts to install a system of taxation and public finance that is appropriate for its emerging market economy.

Suggested Citation

  • Robert W Mc Gee & Galina G Preobrageskya, 2005. "Taxation and Public Finance in a Transition Economy: A Case Study of Russia," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 79-86, January.
  • Handle: RePEc:icf:icfjae:v:04:y:2005:i:1:p:79-86
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