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Russia's federal fiscal grants: regional equalisation and growth

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  • Karen Vartapetov

Abstract

This article reviews recent developments in federal fiscal arrangements in Russia and evaluates the complicated system of centre-to-regions grants until 2010. The objective of the research is to assess the equalisation effect of federal fiscal grants to the regions over the last decade and look into the proposed changes in 2010-12. The development of fiscal inequality between Russia's regions is discussed and the contribution of the grant system is analysed. The research also compares Russia's territorial fiscal fortunes with the evolution of regional economic disparities. The article suggests that the stochastic and often non-transparent system of federal-to-regions grants coupled with modest revenue and expenditure discretion of sub-national governments might present a barrier to long-term economic growth in Russia's regions.

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  • Karen Vartapetov, 2010. "Russia's federal fiscal grants: regional equalisation and growth," Post-Communist Economies, Taylor & Francis Journals, vol. 22(4), pages 471-481.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:4:p:471-481
    DOI: 10.1080/14631377.2010.518452
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    References listed on IDEAS

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    1. Lavrov, Aleksei & Litwack, John & Sutherland, Douglas, 2001. "Fiscal federalist relations in Russia: a case for subnational autonomy," MPRA Paper 26537, University Library of Munich, Germany.
    2. Treisman, Daniel, 1996. "The Politics of Intergovernmental Transfers in Post-Soviet Russia," British Journal of Political Science, Cambridge University Press, vol. 26(3), pages 299-335, July.
    3. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
    4. Martinez-Vazquez, Jorge & Timofeev, Andrey, 2008. "Regional-local dimension of Russia's fiscal equalization," Journal of Comparative Economics, Elsevier, vol. 36(1), pages 157-176, March.
    5. Vladimir Popov, 2004. "Fiscal Federalism in Russia: Rules versus Electoral Politics," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 46(4), pages 515-541, December.
    6. Jin, Hehui & Qian, Yingyi & Weingast, Barry R., 2005. "Regional decentralization and fiscal incentives: Federalism, Chinese style," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1719-1742, September.
    7. Andrei Chernyavsky & Karen Vartapetov, 2004. "Municipal finance reform and local self-governance in Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 16(3), pages 251-264.
    8. Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications - Books, The World Bank Group, number 15248, December.
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    Cited by:

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