Timushev E.N.Institute of Social, Economic and Power Problems of the North, Komi Science Center, Ural Branch of Russian Academy of Sciences, Syktyvkar, Komi Republic, Russian Federation firstname.lastname@example.org ORCID id: not available
Subject The article presents a method to analyze the distribution of revenues from personal income tax (PIT) in the budgetary system of Russia. The method is applied to review the distribution specifics on the case of the budgetary system of the Komi Republic. Income tax is important for local budgets; however, there is a recent trend in reducing tax revenues, growing centralization and losing independence by local budgets. Objectives The study aims to unveil the features of revenue distribution from the PIT in the budgetary system of the Komi Republic. Methods The analysis rests on mathematical calculation of ratios. The study also employs methods of collection, calculation, interpretation, and comparison of absolute and relative indexes. Results There was an increase in the PIT distribution ratio, which resulted in redistribution of tax revenues in favor of the republican budget of the Komi Republic. The changes in the differentiated distribution ratio for local budgets increased the share of revenues of districts. In general, the reallocation of funds was at the expense of revenues from the PIT in city budgets. The findings show that changes in the single distribution ratio have a greater impact on city budgets (negative), while changes in differentiated distribution ratio influence mainly the districts’ budgets (positively in this case). Conclusions The study confirms the thesis about centralization of budget funds in the budgetary system of the Komi Republic, and offers measures to align the conditions of local budgets aimed at increasing the efficiency of expenditures.
Keywords: tax, personal income tax, distribution ratio
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