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Are Intergovernmental Transfers in Russia Equalizing?


  • Kitty Stewart


Since the break-up of the Soviet Union in 1991, the 88 regions of the Russian Federation have enjoyed increasing autonomy, and by 1994 almost half of all budgetary expenditure in Russia was spent at the regional level. This paper examines the system of transfers which has developed in Russia over the last few years and asks how far it has succeeded in making up for regional revenue disparities. Transfers seem to be directed in broadly the right direction before and after the introduction of the formula mechanism: transfers are higher to regions with greater needs. The bad news, however, is that the impact of the transfers has been minimal. Lower revenue regions may have received more in transfers than higher revenue regions, but not nearly enough to offset the difference in revenue.

Suggested Citation

  • Kitty Stewart, 1997. "Are Intergovernmental Transfers in Russia Equalizing?," Papers iopeps97/7, Innocenti Occasional Papers, Economic Policy Series.
  • Handle: RePEc:ucf:iopeps:iopeps97/7

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    References listed on IDEAS

    1. Scott Edwards & Tito Boeri, 1998. "Long-term unemployment and short-term unemployment benefits: The changing nature of non-employment subsidies in Central and Eastern Europe," Empirical Economics, Springer, vol. 23(1/2), pages 31-54.
    2. Blundell, Richard & Fry, Vanessa & Walker, Ian, 1987. "Modelling the Take-up of Means-tested Benefits: the Case of Housing Benefits in the United Kingdom," Economic Journal, Royal Economic Society, vol. 98(390), pages 58-74, Supplemen.
    3. Bird, Richard & Wallich, Christine, 1992. "Financing local government in Hungary," Policy Research Working Paper Series 869, The World Bank.
    4. Micklewright, J & Nagy, G, 1996. "A Follow-Up Survey of Unemployment Insurance Exhausters in Hungary," Economics Working Papers eco96/08, European University Institute.
    5. Duclos, Jean-Yves, 1995. "Modelling the take-up of state support," Journal of Public Economics, Elsevier, vol. 58(3), pages 391-415, November.
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    Cited by:

    1. Jameson Boex, 2003. "The incidence of local government allocations in Tanzania," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0311, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. 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.

    More about this item


    economic and social development; economic transition; public expenditures; tax revenues;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects


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