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Evaluating the involvement of the State into the public life of municipalities in the Arctic zone of Russia

Vol. 15, Iss. 6, JUNE 2019

Received: 20 March 2019

Received in revised form: 6 April 2019

Accepted: 22 April 2019

Available online: 17 June 2019

Subject Heading: ECONOMIC POLICY OF THE STATE

JEL Classification: J31, H51, H52, H61, H75

Pages: 1038–1056

https://doi.org/10.24891/ni.15.6.1038

Chapargina A.N. Luzin Institute for Economic Studies, Kola Science Centre of Russian Academy of Sciences (IES KSC RAS), Apatity, Murmansk Oblast, Russian Federation
achapargina@yandex.ru

https://orcid.org/0000-0002-4399-4063

Emel'yanova E.E. Luzin Institute for Economic Studies, Kola Science Centre of Russian Academy of Sciences (IES KSC RAS), Apatity, Murmansk Oblast, Russian Federation
emelya@iep.kolasc.net.ru

https://orcid.org/0000-0003-4737-8265

Subject The article focuses on budgetary obligations and public income brackets in the socially important sectors.
Objectives The study evaluates the governmental involvement in the public life from perspectives of the social focus of budgets in the Arctic municipalities.
Methods The article relies upon general scientific methods, techniques of analysis and synthesis, methods of comparison and analogy. We also refer to proceedings of scholars in municipal administration, fiscal laws and public standards of living. The study is based on legislative instruments, documents on the socio-economic development of areas, web resources, data from the Federal State Statistics Service.
Results We evaluate the fiscal capacity in the Arctic municipalities from 2009 through 2016 in terms of welfare. We analyze the standard of living and income of the employable population in urban districts of the Russian Arctic zone in socially important sectors. The article presents the ratio of funding for some items of fiscal expenditures per capita to the average salary in a certain sector. We also determine the crucial issues and social focus of local budgets.
Conclusions and Relevance We outlined some suggestions for improving the social security in the Arctic zone of the Russian Federation. Social security corrodes year by year in the Arctic since healthcare and education expenditures are tightened, with the level of salaries declining as well. The development of socially important sectors should be backed with budgetary and extrabudgetary funds, which could be raised through PPP schemes. The findings may prove useful by public authorities to outline the budgetary policy and set up local development programs.

Keywords: Arctic region, budgetary spending, salary, municipality, social sector

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