ESTIMATES OF THE IMPACT OF INTER-BUDGETARY GOVERNMENT GRANTS ON REGIONAL DEVELOPMENT IN THE RUSSIAN FEDERATION
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ESTIMATES OF THE IMPACT OF INTER-BUDGETARY GOVERNMENT GRANTS ON REGIONAL DEVELOPMENT IN THE RUSSIAN FEDERATION
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PII
S042473880000540-3-1
Publication type
Article
Status
Published
Pages
18-37
Abstract

Basing on the knowledge of the developing system of the inter-budgetary transfers from 1995 to 2013 and the academic prerequisites of their efficiency, we have collected and analyzed the statistical data; substantiated choosing the criteria for evaluating the inequality of regions; selected a great number of necessary analytic indicators, characteristic of regional inequality; suggested an econometric model; conducted testing of two research hypotheses: (1) grants-in-aid inter alia lead to equalizing regional fiscal capacities; (2) inter-budgetary transfers lead to reducing the trans-regional inequality according to socio-economic indicators. The author's analysis shows that there is no scientific support to both hypotheses: inter-budgetary transfers do not statistically influence trans-regional inequality according to socio-economic indicators, and they do not lead to reducing significantly the inequality according to the actual fiscal capacity level. We propose that it might be caused not by inefficient expenditure, but by the missing correlation between the inter-budgetary transfer size and the regional socio-economic development level. The work results call for new scientific research with a view to substantiating a reconsideration of the budgetary policy and optimizing the financial mechanism.

Keywords
budget, intergovernmental transfers, inter-regional inequality, budgetary provision, socio-economic development
Date of publication
01.07.2017
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0
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54
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