HOW TO DEVELOP FISCAL FEDERALISM?
Studio, Clock
Panellists:
Natalya Zubarevich, Chief Researcher, Institute for Social Analysis and Forecasting, RANEPA; Professor, Lomonosov Moscow State University
Alexey Kudrin, Chairman, Accounts Chamber of the Russian Federation
The task of increasing the autonomy of the constituent entities, as well as the sustainability of regional and municipal finances is set by the President of the Russian Federation V.V. Putin in his Address to the Federal Assembly in 2021. In accordance with the identified priority, decisions were made on granting budget loans to the regions, on substitution of commercial loans with budget loans, as well as on taking other measures. But taking into account the accumulated problems (lack of revenue base required to secure the powers, growth of the cost of powers in connection with the regulation of their fulfilment, reduction of motivation to increase the revenue base due to changes in tax legislation not in favor of the constituent entity level, etc.), the measures taken will be only a temporary relief for regional budgets. In order to comprehensively perform the task set by the President, it is necessary to elaborate a new model of inter-budgetary relations.
Discussion points:
• Potential for subsidy consolidation: opportunities and risks
• Subsidization and quality of governance. Is there potential for revenue growth?
• Who and how measures the quality of governance at the regional level?
• Additional sources to replenish the revenue side
