THE EXTERNAL SHOCKS’ IMPACT ON THE REVENUES OF SUBJECTS OF THE RUSSIAN FEDERATION BUDGETS

Abstract

The modern Russian economy is a small open economy, subject to considerable impact of the external shocks. The regional budgets as well as federal budget suffer of the consequences of these shocks. Russian tax system passed through three main stages of its formation and within each there was inefficient from the point of view of economic theory combination of the degree of tax policy activity and the exchange rate regulation. In modern conditions the role of the federal budget in the budget system of the country is extremely great. This leads to the fact that the risks of external shocks are translated to the budget system as a whole, which is crucial dependent on transfers from the federal budget. The paper identifies a group of subjects of the Russian Federation, whose budgets are largely dependent on the corporate income tax revenue and for which the decline of the budget revenue of this source creates a real threat. Improving the stability of the budget system in relation to external shocks implies as well the growing resistance of regional budgets to these shocks.