Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

The impact of fiscal sharing technique on the financial stability of the Russian Federation regions

Vol. 25, Iss. 9, SEPTEMBER 2019

Received: 26 February 2019

Received in revised form: 3 July 2019

Accepted: 17 July 2019

Available online: 30 September 2019

Subject Heading: FISCAL SYSTEM

JEL Classification: H21, H23, H61, H77

Pages: 2069–2082

https://doi.org/10.24891/fc.25.9.2069

Yashina N.I. Institute of Economics and Entrepreneurship, National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation
yashina@iee.unn.ru

ORCID id: not available

Malyshev S.A. Institute of Economics and Entrepreneurship, National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation
malyshevsa@iee.unn.ru

ORCID id: not available

Chesnokova L.A. Institute of Economics and Entrepreneurship, National Research Lobachevsky State University of Nizhny Novgorod (UNN), Nizhny Novgorod, Russian Federation
chesnokova@iee.unn.ru

ORCID id: not available

Subject This article explores the relationships between the financial stability of the Russian Federation regions and the formation of the revenue part of the Russian budgets, the fiscal sharing between the budget system levels, in particular.
Objectives The article aims to substantiate, using calculated analytical data, that a proposed original algorithm for the allocation of regulatory taxes contributes to the increase in the regions' fiscal sustainability.
Methods For the study, we used generally accepted approaches and formulas for assessing the fiscal sustainability based on the Russian Federal Tax Service website official data.
Results The article forms an adjusted income basis of the Russian entities according to the standards of personal income tax payments to the federal and consolidated budgets of the Russian Federation, income tax, VAT, and excise taxes, determined using the proposed original methodology. The article shows that when applying the new standards, the region fiscal sustainability indicators under study demonstrate positive dynamics and prove that transfers of revenues from regulatory and budget revenue generating taxes can contribute to the self-sufficiency and financial sustainability of regional budgets.
Conclusions The proposed technique of tax allocation increases the region's own income, expenditure commitments coverage, and reduces the dependence on inter-budget transfers, i.e. it improves the financial stability of regional budgets.

Keywords: fiscal sustainability, own earnings, regulatory tax, tax differentiation

References:

  1. Gladkovskaya E.N., Tsalo I.M., Teterkina L.B. [Evaluation of financial sustainability of regional budgets in Russia: methodology and algorithm of its applications]. Voprosy upravleniya = Management Issues, 2017, no. 6, pp. 119–131. URL: Link (In Russ.)
  2. Khol'nova E.G. [The Russian practice of State regulation of the bank stability]. Mir ekonomiki i prava = World of Economics and Law, 2013, no. 10, pp. 47–61. URL: Link (In Russ.)
  3. Stoian A., Brașoveanu L.O., Brașoveanu I.V., Dumitrescu B. A Framework to Assess Fiscal Vulnerability: Empirical Evidence for European Union Countries. Sustainability, 2018 vol. 10, no. 7, p. 2482. URL: Link
  4. Bolívar M.P.R., Galera A.N., Muñoz L.A., López Subires M.D. Analyzing Forces to the Financial Contribution of Local Governments to Sustainable Development. Sustainability, 2016, vol. 8, no. 9, p. 925. URL: Link
  5. Tin'gaev A.M., Barashkov O.A. [Relevant approaches to the analysis of the budgetary stability of the region]. Ekonomika i effektivnost' organizatsii proizvodstva = Economy and Efficiency of the Organization of Production, 2011, no. 14, pp. 61–67. URL: Link (In Russ.)
  6. Yushkova O.O., Kirina L.S., Malis N.I. et al. Tax Revenues and Balanced Budgets. European Research Studies Journal, 2018, vol. 21, no. 1, pp. 675–686. URL: Link
  7. Musaeva K.M., Suleimanov M.M., Isaeva S.M., Pinskaya M.R. Improvement of the Efficiency of the Instruments of Tax Regulation in the Context of the Development of Fiscal Federalism and Strengthening of the Taxable Capacity of the Subject of the Russian Federation. Ecology, Environment and Conservation, Suppl. Issue August 2015, vol. 21, pp. 71–80. URL: Link
  8. Altuf'eva T.Yu. [Financial sustainability of territorial systems: assessment methodology and test results]. Ekonomika i upravlenie: nauchno-prakticheskii zhurnal = Economics and Management, 2014, no. 4, pp. 44–50. URL: Link (In Russ.)
  9. Sorokina T.V. [Estimation of financially-budgetary stability of municipal units]. Baikal Research Journal, 2010, no. 5, pp. 83–87. URL: Link (In Russ.)
  10. Tatarkin A.I., Zakharchuk E.A., Pasynkov A.F. [Financial stability of territories: statement of a problem]. Finansy i biznes = Finance and Business, 2008, no. 2, pp. 35–42. URL: Link (In Russ.)
  11. Kononov A.S. [Financial stability of the Russian Federation as a condition for the development of the social sphere]. Audit i finansovyi analiz = Audit and Financial Analysis, 2013, no. 2, pp. 434–437. (In Russ.)
  12. Shah A. The Reform of Intergovernmental Fiscal Relations in Developing and Emerging Market Economies. Washington, D.C., The World Bank, 1994, 90 p. URL: Link
  13. Galukhin A.V. [Domestic and foreign experience improving the financial sustainability of the revenue base of the territorial budgets]. Izvestiya vysshikh uchebnykh zavedenii. Seriya: Ekonomika, finansy i upravlenie proizvodstvom = News of Higher Educational Institutions. Series: Economy, Finance and Production Management, 2016, no. 1(27), pp. 3–9. (In Russ.)
  14. Bukina I. [Tax system and fiscal federalism in Germany]. Federalizm = Federalism, 2015, no. 2, pp. 181–196. (In Russ.)
  15. Chesnokova L.A., Malyshev S.A., Yashina N.I. [Differentiation of receipts of the VAT between budgets of federal and regional levels]. Nalogi i nalogooblozhenie = Taxes and Taxation, 2016, no. 6, pp. 439–446. URL: Link (In Russ.)
  16. Yashina N., Ginzburg M., Chesnokova L. Fiscal Federalism and Redistributive Politics for Income Taxes: Case of Russia’s Regions. Proceedings of the 13th International Scientific Conference “European Financial System 2016”. Masaryk University, Faculty of Economics and Administration, Department of Finance and Institute for Financial Market, 2016, pp. 862–871.
  17. Yashina N.I., Ginzburg M.Yu., Chesnokova L.A. Fiscal Federalism and Personal Income Tax Redistribution: Case of Russia's Regions. Proceedings of the 21th Scientific Conference “Current Trends in Public Sector Research” 2017. Brno, Masaryk University, 2017, pp. 223–230.
  18. Minchenko M.M. [Current problems of resource provision for territorial development in the Russian Federation]. Problemy prognozirovaniya = Problems of Forecasting, 2004, no. 3, pp. 70–83. URL: Link (In Russ.)
  19. Aivazov A.A., Ishina M.S. [Methodical approaches to estimate the tax-budgetary potential of region]. Audit i finansovyi analiz = Audit and Financial Analysis, 2009, no. 4, pp. 10–12. URL: Link (In Russ.)
  20. Korotina N.Yu. [Analysis procedure to assess the municipal financial budgets]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2014, vol. 7, iss. 20, pp. 36–47. URL: Link (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 25, Iss. 9
September 2019

Archive