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The System of Intergovernmental Relations: are there any Incentives for Economic Development

https://doi.org/10.21686/2073-1051-2021-1-80-99

Abstract

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.

About the Author

L. N. Lykova
Federal State Budgetary Institution of Science Institute of Economics of the Russian Academy of Sciences
Russian Federation

LYKOVA Lyudmila N. - Dr. Sc. (Econ.), professor, chief researcher
 

32, Nakhimovsky av., Moscow, 117218



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Review

For citations:


Lykova L.N. The System of Intergovernmental Relations: are there any Incentives for Economic Development. Federalism. 2021;(1):80-99. (In Russ.) https://doi.org/10.21686/2073-1051-2021-1-80-99

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