Russian fiscal system and the coming crises of regional finances

Abstract

Financial standing of Russian regions in 2013 has impaired dramatically. In short-term perspective part of them will correspond to the bankruptcy criterions. This situation is the logical result of the structural characteristics of the Russian fiscal system. The last in its basic features coincides with fiscal systems of less developed countries and strongly differs from fiscal systems of western countries with acting progressive scale of income taxes and where the main share of taxes is paid by households, but not by business. The paper considers the connections of municipal and regional economic development and the Russian fiscal system.