Abstract

The issue of decentralization in the public administration system in Russia has acquired new urgency in the context of the 2020 crisis. Other countries of the world have faced similar new challenges. The object of the research is the system of separation of powers between regions and the center in a federal state. The purpose of the study is to determine the principles and limitations of authority delegation from higher to lower tiers (i.e. decentralization), potential benefits and prerequisites of delegation. This research provides an extensive review of the literature on decentralization around the world. Based on the analysis of findings and their synthesis, theoretical ideas are formed as to how to distribute powers within the budgetary system, as well as how decentralization and economic growth are connected. Scientific novelty of the paper lies in revealing the prospective areas of research on the problems of authority delegation and economic growth. It is established that decentralization and close interdependence of revenues and expenditures of territorial budgets promotes private sector development. At the same time, the risks of inefficiency of

Abstract

The subject of the study is the distribution of tax revenues between the levels of the budget system in the Russian Federation. The relevance of the study is caused by the need to strengthen the vertical balance of the budget system through tax decentralization in the context of the restructuring of the Russian economy. The aim of the study is to find parameters of tax decentralization that do not worsen the horizontal balance of regional budgets. The research method is the modeling of tax revenues of the consolidated regional budgets. The study used data from the Federal Treasury, the Federal Tax Service and the Ministry of Finance of Russia for 2019–2021. The scientific novelty of the study consists in modeling the effects of tax decentralization on the level of differentiation of regional tax revenues using the latest available data. As a result of the study, it was shown that an increase in regional shares for personal income tax, some components of the MET, water tax and fees for the use of aquatic biological objects up to 100 % will not lead to an increase in inter-regional differentiation of per capita tax revenues. The conclusion of the study is that there is a potential for tax decentralization in Russia, which can be realized by redistributing tax revenues to the regional level without worsening the horizontal budget balance. The prospects of the study are to take into account the effects of the structural transformation of the economy on the territorial distribution of tax bases and the level of taxation, as well as to detail the calculations of the MET as new data are accumulated.