+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Tax revenues of local budgets and their distribution: Evidence from the Komi Republic

Vol. 22, Iss. 17, MAY 2016

PDF  Article PDF Version

Received: 3 March 2016

Accepted: 14 March 2016

Available online: 17 May 2016

Subject Heading: INTER-BUDGETARY RELATIONS

JEL Classification: H24, H71, H77

Pages: 40-52

Timushev E.N. Institute of Social, Economic and Power Problems of the North, Komi Science Center, Ural Branch of Russian Academy of Sciences, Syktyvkar, Komi Republic, Russian Federation
timushev@iespn.komisc.ru

Subject The article presents a method to analyze the distribution of revenues from personal income tax (PIT) in the budgetary system of Russia. The method is applied to review the distribution specifics on the case of the budgetary system of the Komi Republic. Income tax is important for local budgets; however, there is a recent trend in reducing tax revenues, growing centralization and losing independence by local budgets.
Objectives The study aims to unveil the features of revenue distribution from the PIT in the budgetary system of the Komi Republic.
Methods The analysis rests on mathematical calculation of ratios. The study also employs methods of collection, calculation, interpretation, and comparison of absolute and relative indexes.
Results There was an increase in the PIT distribution ratio, which resulted in redistribution of tax revenues in favor of the republican budget of the Komi Republic. The changes in the differentiated distribution ratio for local budgets increased the share of revenues of districts. In general, the reallocation of funds was at the expense of revenues from the PIT in city budgets. The findings show that changes in the single distribution ratio have a greater impact on city budgets (negative), while changes in differentiated distribution ratio influence mainly the districts’ budgets (positively in this case).
Conclusions The study confirms the thesis about centralization of budget funds in the budgetary system of the Komi Republic, and offers measures to align the conditions of local budgets aimed at increasing the efficiency of expenditures.

Keywords: tax, personal income tax, distribution ratio

References:

  1. Turgenev N.I. Opyt teorii nalogov. V kn.: U istokov finansovogo prava. Tom 1 [Experience in the tax theory. At the origins of the financial law. Vol. 1]. Moscow, Statut Publ., 1998, pp. 107–268.
  2. Mankiw G.N. Principles of Economics. 6th revised edition. South-Western, 2011.
  3. Gaidar E. [State burden on the economy]. Voprosy Ekonomiki, 2004, no. 9, pp. 4–23. (In Russ.)
  4. Oates W.E. An Essay on Fiscal Federalism. Journal of Economic Literature, 1999, vol. 37, no. 3, pp. 1120–1149.
  5. Chuzhmarova S.I. Metodologiya formirovaniya i realizatsii nalogovoi politiki v severnykh regionakh Rossii: monografiya [A methodology for building and implementing the fiscal policy in the northern regions of Russia: a monograph]. Moscow, Ekon-Inform Publ., 2014, 385 p.
  6. Khristenko V.B. Mezhbyudzhetnye otnosheniya i upravlenie regional'nymi finansami: opyt, problemy, perspektivy [Inter-budgetary relations and regional finance management: experience, problems, prospects]. Moscow, Delo Publ., 2002, 608 p.
  7. Shah A. Fiscal Decentralization and Fiscal Performance. World Bank, Policy Research Working Paper, 2005, no. 3786.
  8. Oates W.E. The Theory of Public Finance in a Federal System. The Canadian Journal of Economics, 1968, vol. 1, no. 1, pp. 37–54.
  9. Musgrave R.A. The Voluntary Exchange Theory of Public Economy. The Quarterly Journal of Economics, 1939, vol. 53, no. 2, pp. 213–237.
  10. Carver T.N. The Minimum Sacrifice Theory of Taxation. Political Science Quarterly, 1904, vol. 19, no. 1, pp. 66–79.
  11. Radygin A., Entov R. ['Government failures': the theory and policy]. Voprosy Ekonomiki, 2012, no. 12, pp. 4–32. (In Russ.)
  12. Rubinshtein A. [Public interests and the theory of public goods]. Voprosy Ekonomiki, 2007, no. 10, pp. 90–113. (In Russ.)
  13. Tiebout C.M. A Pure Theory of Local Expenditures. Journal of Political Economy, 1956, vol. 64, no. 5, pp. 416–424.
  14. Ludwig von Mises. Human Action. A Treatise on Economics. Auburn, Alabama, Ludwig von Mises Institute, 1998.
  15. Rotbard M. [A myth about neutral taxation]. Ekonomicheskaya politika = Economic Policy, 2009, no. 6, pp. 165–192. (In Russ.)
  16. Friedman M. The Welfare Effects of an Income Tax and an Excise Tax. Journal of Political Economy, 1952, vol. 60, no. 1, pp. 25–33.
  17. Strategiya-2020: Novaya model' rosta – novaya sotsial'naya politika. Itogovyi doklad o rezul'tatakh ekspertnoi raboty po aktual'nym problemam sotsial'no-ekonomicheskoi strategii Rossii na period do 2020 goda [Strategy 2020: A new model of growth: a new social policy. A final report on expert work results on topical issues of Russia’s economic strategy for the period up to 2020]. Moscow, Delo Publ., 2013, 430 p.
  18. Young A.A. Review of 'A Study in Public Finance', by A.C. Pigou. The Economic Journal, 1929, vol. 39, no. 153, pp. 78–83.
  19. Gaidar E. Vvedenie. Rossiiskaya ekonomika v 2006 godu. Tendentsii i perspektivy. Vypusk 28 [Introduction. The Russian economy in 2006. Trends and prospects. Iss. 28]. Moscow, Gaidar Institute Publ., 2007, pp. 9–31.
  20. Makroekonomicheskii analiz vliyaniya izmeneniya stavok nalogov na gosudarstvennyi byudzhet i uchastnikov rynka: analit. doklad [Macroeconomic analysis of the impact of changes in tax rates on the State budget and market participants]. Moscow, NRU HSE Publ., 2014, 57 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive