Open AccessThe System of Intergovernmental Relations: are there any Incentives for Economic Development
Author(s) -
Lyudmila Lykova
Publication year - 2021
Publication title -
federalizm
Language(s) - English
Resource type - Journals
ISSN - 2073-1051
DOI - 10.21686/2073-1051-2021-1-80-99
Subject(s) - incentive , subsidy , revenue , diversification (marketing strategy) , economics , tax revenue , value (mathematics) , public economics , economic system , microeconomics , business , market economy , finance , marketing , machine learning , computer science
In the last decade, the system of inter-budgetary relations has undergone some changes, which were mainly of a partial nature. The result is an established model with a significant and non-decreasing number of subsidized regions, a high level of income concentration, and subfederal budgets that differ significantly in the degree of income base diversification. At the same time, if half of the regions have an insufficient level of economic development to finance the necessary expenditures (relative to GRP), then for the other half this level is quite sufficient within the GRP potential, but the current tax system and the procedure for distributing tax revenues do not allow this, which requires replacing tax revenues with federal transfers. This model does not generate intention in supporting economic growth and economic activity in the regions and deprives them of incentives for development. The way out of this situation may be to take into account the formed macro-trends (changes in the place of the hydrocarbon economy, the place in the value chains, etc.) in the formation of an explicitly asymmetric model of intergovernmental relations, which may allow us to use the intention in economic development at the level of the subjects of the Russian Federation.