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How Public Finances Regulation Influences the Regional Economies and Budgets

Author

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  • V.A.Shirobokova (verash111@mail.ru)

Abstract

The paper presents a case study on budget analysis for regions included in the Siberian Federal District, and how public finances regulation influences their regional economies and budgets. We can state that intergovernmental regulation negatively impacts on the situation in several regions, and effectiveness of the current policies in relation to regional public finances is open to serious question. To solve many such problems, we would like to propose some other approaches to building intergovernmental fiscal regulation. For example, according to our calculations made on actual data, a value-added tax replaced by a sales tax would be more effective since such approach, instead of the ongoing practice to correct mechanisms of intergovernmental fiscal regulation, would allow higher regional revenues and more incentives to have revenues high.

Suggested Citation

  • V.A.Shirobokova (verash111@mail.ru), 2013. "How Public Finances Regulation Influences the Regional Economies and Budgets," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 2.
    • Handle: RePEc:nos:regioe:2013-2_6
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