Finance and Credit

Fiscal federalism: Theoretical basis and the Russian model

Vol. 24, Iss. 7, JULY 2018

Received: 7 May 2018

Received in revised form: 21 May 2018

Accepted: 4 June 2018

Available online: 27 July 2018

Subject Heading: Financial system

JEL Classification: H20, H30, H61, H77

Pages: 1721–1735

Tatarnikova V.V. National Research Tomsk Polytechnic University, Tomsk, Russian Federation

Subject This article examines the intergovernmental relations of the authorities, the security of budgets of various levels of the budget system of the Russian Federation.
Objectives The article aims to determine the budgetary federalism specifics, reveal the main models of fiscal federalism, and describe the Russian model in the context of financial resources decentralization and budget independence.
Methods For the research, I used the methods of analysis, synthesis, analogy, idealization, as well as the systems approach and analysis of variance. Besides, the work employs the methods of economic and statistical groupings, tabular and graphical visualization of statistical data.
Results The article describes the modern Russian model with an emphasis on decentralization of financial resources. It proves the effect of reducing the security of the authorities' own income while moving to the lower level: Federation – Regions – Municipal entities.
Relevance The results of the work can be used by the legislative and executive bodies of the Russian government to improve the inter-budgetary relations.

Keywords: fiscal federalism, inter-budgetary relations, budget revenues, decentralization


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