Home  Journals  Financial Analytics: Science and Experience  24(258) - 2015 June

'Horizontal' inter-budget transfers: best practices of foreign countries and their applicability in Russia

Vol. 8, Iss. 24, JUNE 2015

Article PDF Version

Available online: 30 June 2015

Subject Heading: SCHOLAR DISPUTE

JEL Classification: 

Pages: 55-68

Subject The article reviews the practice of Canada, the USA and Western European countries in using the 'horizontal' inter-budget transfers and compares the international and Russian practice of using such transfers.
     Objectives The aim of the article is to analyze the inter-municipal and inter-regional economic cooperation, using 'horizontal' inter-budget transfers, and to develop appropriate solutions for Russia.
     Methods Drawing on the comparative analysis, we review the practice of inter-municipal and inter-regional economic cooperation and 'horizontal' inter-budget transfers in Canada, the USA and Western European countries.
     Results The analysis helped formulate major advantages and disadvantages of different forms of inter-municipal and inter-regional economic cooperation and solutions for Russia. We recommend introducing provisions to the Fiscal Code of the Russian Federation to govern the use of interregional transfers, and adopting a federal law on formation of contracts and agreements on inter-regional economic cooperation, as inter-budget transfers are applied as a tool for implementing these contracts and agreements.
     Conclusions and Relevance The performed analysis of the practice of inter-municipal and inter-regional economic cooperation and 'horizontal' inter-budget transfers, and the identified advantages and disadvantages of their use contribute to the study of this financial mechanism in the Russian Federation to improve the quality of public finance management.

Keywords: public finance, regional finance, efficiency, budget expenditure, public administration, sector, inter-budget transfers, fiscal legislation, budget management

References:

1. Arumova E.S. Organizatsiya mezhmunitsipal'nogo sotrudnichestva: rossiiskii i zarubezhnyi opyt [Organization of inter-municipal cooperation: Russian and foreign experience]. Problemnyi analiz i gosudarstvenno-upravlencheskoe proektirovanie = Problem Analysis and State Management Design, 2011, vol. 4, no. 2, pp. 37–46.
2. Ataeva A.G., Ulyaeva A.G., Yaparov G.Kh. Analiz vliyaniya vnutriregional'nykh aglomeratsionnykh protsessov na finansovoe razvitie munitsipal'nykh obrazovanii [Analyzing the impact of intraregional agglomeration processes on the financial development of municipalities]. Fundamental'nye issledovaniya = Fundamental Research, 2014, no. 8-2, pp. 365–371.
3. Babichev I.V., Volkov V.V., Panasyuk A.M. Pravovoe regulirovanie voprosov mezhmunitsipal'nogo sotrudnichestva. Formy mezhmunitsipal'nogo sotrudnichestva [Legal regulation of inter-municipal cooperation. Forms of inter-municipal cooperation]. Mestnoe pravo = Local Law, 2009, no. 9-10, pp. 3–18.
4. Voprosy razvitiya mezhmunitsipal'nogo khozyaistvennogo sotrudnichestva [Issues of developing inter-municipal economic cooperation]. Moscow, State Duma Publ., 2010, 156 p.
5. Isupova S.S., Markvart E. Mezhmunitsipal'noe sotrudnichestvo v Germanii: vidy i formy, preimushchestva i riski [Inter-municipal cooperation in Germany: types and forms, benefits and risks]. Mestnoe pravo = Local Law, 2009, no. 9-10, pp. 19–30.
6. Kur'yanova E.A. Formirovanie sistemy mezhbyudzhetnykh otnoshenii: problemy i perspektivy [Building the system of inter-budget relations: problems and prospects]. Novye tekhnologii = New Technologies, 2011, no. 4, pp. 180–183.
7. Mikhailova M.A. Gorodskaya aglomeratsiya kak novaya forma mezhmunitsipal'nogo sotrudnichestva [Urban agglomeration as a new form of inter-municipal cooperation]. Izvestiya IGEA = Izvestiya of Irkutsk State Economics Academy, 2010, no. 6, pp. 114–117.
8. Mikhailova M.A. Vozmozhnosti mezhmunitsipal'nogo sotrudnichestva v kontekste sotsial'no-ekonomicheskogo razvitiya munitsipal'nykh obrazovanii, vkhodyashchikh v irkutskuyu aglomeratsiyu [Potential for inter-municipal cooperation in the context of socio-economic development of municipalities included in the Irkutsk agglomeration]. Izvestiya IGEA = Izvestiya of Irkutsk State Economics Academy, 2011, no. 3, pp. 68–71.
9. Mikhailova M.A. Formy organizatsii mezhmunitsipal'nogo sotrudnichestva v gorodskoi aglomeratsii [Forms of organizing inter-municipal cooperation in metropolitan area]. Izvestiya IGEA = Izvestiya of Irkutsk State Economics Academy, 2011, no. 4, pp. 105–109.
10. Nazarov V.S. Mezhdunarodnyi opyt evolyutsii metodik raspredeleniya vyravnivayushchikh transfertov [International experience in the evolution of methods for distribution of equalizing transfers]. Moscow, RANEPA Publ., 2013.
11. Petrova I.V. Organizatsionno-pravovye aspekty upravleniya razvitiem territorial'nykh obrazovanii [Organizational and legal aspects of managing the development of territorial units]. Vestnik ChGU = Vestnik Chuvashskogo Universiteta, 2010, no. 4, pp. 425–430.
12. Oreshnikov V.V., Nizamutdinov M.M. Razrabotka strategii razvitiya munitsipal'nykh obrazovanii na osnove imitatsionnogo modelirovaniya [Devising development strategies for municipalities on the basis of simulation modeling]. Ekonomicheskie i sotsial'nye problemy: fakty, tendentsii, prognoz = Economic and Social Problems: Facts, Trends, Forecast, 2011, no. 5, pp. 138–146.
13. Pobedin A.A. Perspektivy mezhmunitsipal'nogo sotrudnichestva pri razvitii gorodskikh aglomeratsii: opyt zarubezhnykh stran i Rossii [Prospects for inter-municipal cooperation in the development of urban conglomerations: experience of foreign countries and Russia]. Vestnik OmGU. Ser. Ekonomika = Bulletin of Omsk State University. Economics Series, 2013, no. 4, pp. 43–48.
14. Problemy mezhbyudzhetnykh otnoshenii v Rossii: nauchnye trudy [Problems of inter-budget relations in Russia: scholarly works]. Moscow, Gaidar Institute for Economic Policy Publ., 2012, 188 p.
15. Rostanets V.G., Churkin A.O. Mezhmunitsipal'noe sotrudnichestvo kak instrument aktivizatsii investitsionnykh protsessov [Inter-municipal cooperation as a tool for enhancing investment processes]. Available at: Link. (In Russ.)
16. Sakhieva R.A. Opyt sub"ektov RF v zaklyuchenii i realizatsii vnutrigosudarstvennykh dogovorov i soglashenii [The experience of the Russian Federation regions in making and implementing national contracts and agreements]. Available at: Link. (In Russ.)
17. Shubina L.V. Predostavlenie byudzhetnykh kreditov [Granting public budget loans]. Byudzhetnyi uchet = Budgetary Accounting, 2014, no. 1, pp. 20–25.
18. Building Competitive Regions: Strategies and Governance. OECD, 2005, p. 98.
19. Slack E. Inter-Municipal Cooperation: Sharing of Expenditures and Revenues. Toronto, ICURR Publications, 1997, April, p. 5, p. 12.

View all articles of issue

ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

Journal current issue

Vol. 17, Iss. 1 March 2024

Archive