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






Finance and Credit

A comprehensive assessment of the aggregate fiscal sustainability of subnational heavily subsidized budgets

Vol. 28, Iss. 10, OCTOBER 2022

Received: 22 August 2022

Received in revised form: 8 September 2022

Accepted: 22 September 2022

Available online: 27 October 2022

Subject Heading: FISCAL SYSTEM

JEL Classification: H23, H61, H77, R13

Pages: 2285–2317


Magomed R. TASHTAMIROV Kadyrov Chechen State University (Kadyrov CHSU), Grozny, Chechen Republic, Russian Federation


Subject. This article tests the author-developed methodology for assessing the level of aggregate fiscal sustainability of high-subsidized budgets at the subnational level of Russia.
Objectives. The article aims to determine the level of aggregate fiscal sustainability and stability of high-subsidized budgets at the subnational level of Russia and identify the features of such sustainability in the process of functioning of the mechanism of inter-budgetary regulation and fiscal equalization.
Methods. For the study, I used the methods of time series, comparison and collation, grouping, logical generalization, and the ratio analysis.
Results. The article presents a rating of stability of high-subsidized budgets of the subjects of Russia, compiled on the basis of an assessment of the aggregate budgetary stability of five groups of indicators. The article also reveals the systematic verticalization and centralization of the system of inter-budgetary regulation in relation to high-subsidized regions.
Conclusions and Relevance. Applying the methodology of comprehensive assessment of the sustainability of high-subsidized budgets made it possible to identify the problematic aspects of the budgetary state of regional finances. This can be used by the executive authorities, namely the financial ones, in order to analyze the state of the subnational budgets of the country's budget system. Also, this technique can be used in determining the volume of inter-budgetary transfers to equalize the budget provision in relation to the high-subsidized budgets of the regions of Russia. This can help increase the level of per capita budgeting of depressed subjects of the country.

Keywords: budget system, regional budget, subsidies, grant-in-aid, income sources


  1. Mikhailova A.A. [Fiscal sustainability of Russian regions: problems and solutions]. Finansy = Finance, 2019, no. 7, pp. 19–24. (In Russ.)
  2. Buiter W.H., Patel U.R. Debt, Deficits, and Inflation: An Application to the Public Finance of India. Journal of Public Economics, 1992, vol. 47, iss. 2, pp. 171–205. URL: Link90047-J
  3. Krejdl A. Fiscal Sustainability – Definition, Indicators and Assessment of Czech Public Finance Sustainability. Czech National Bank Working Paper, 2006, no. 3, 36 p. URL: Link
  4. Ostry J.D., Ghosh A.R., Espinoza R. When Should Public Debt Be Reduced? IMF Staff Discussion Note, 2015, vol. 15/10. URL: Link
  5. Lazarova L.B., Gurieva L.K., Khubaev T.A. [Model of ensuring budget sustainability of subjects of the Russian Federation: problems and realities]. Finansovaya zhizn' = Financial Life, 2020, no. 3, pp. 12–15. (In Russ.) URL: Link
  6. Lazarova L.B., Khubaev T.A. [To the question of sustainability of the Russian Federation subjects budget in modern conditions]. Finansovaya zhizn' = Financial Life, 2020, no. 4, pp. 39–41. (In Russ.) URL: Link
  7. Mikhailova A.A., Timushev E.N. [Russia's budgetary system: How much sustainable?]. Ekonomicheskii zhurnal Vysshei shkoly ekonomiki = Higher School of Economics Economic Journal, 2020, vol. 24, no. 4, pp. 572–597. (In Russ.) URL: Link
  8. Klimanov V.V., Mikhailova A.A., Kazakova S.M. [Regional resilience: Theoretical basics of the question]. Ekonomicheskaya politika = Economic Policy, 2018, vol. 13, no. 6, pp. 164–187. (In Russ.) URL: Link
  9. Pinto H., Noronha T., Vaz E. Correction to: Resilience and Regional Dynamics. In: Pinto H., Noronha T., Vaz E. (eds) Resilience and Regional Dynamics. Advances in Spatial Science. Springer, Cham, 2018. URL: Link
  10. Kramer A.M., Rodríguez-Izquierdo E., Cid A. Resilience of Urban Systems: Perspective for the Integration of Climate Resilience Actions in the Resilient Cities Network. In: The Elgar Companion to Urban Infrastructure Governance. Edward Elgar Publishing, 2022, chapter 17, pp. 308–328.
  11. Sitokhova T.E., Tashtamirov M.R. Approaches to Developing Methodology for Typologizing Regional Budgets by Level of Subsidization. In: Bataev D.K., Gapurov S.A., Osmaev A.D. et al. (eds) Knowledge, Man and Civilization – ISCKMC 2020. European Proceedings of Social and Behavioural Sciences, 2021, vol. 107, pp. 2542–2550. URL: Link
  12. Hill Е.W., Wial Н., Wolman Н. Exploring Regional Economic Resilience. Institute of Urban and Regional Development Working Paper, 2008, no. 2008-04, 17 p. URL: Link
  13. Tashtamirov M.R. [Efficiency of inter-budgetary regulation of heavily subsidized budgets at the subnational level]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2022, vol. 26, no. 2, pp. 136–159. (In Russ.) URL: Link
  14. Yushkov A.O., Oding N.Yu., Savul'kin L.I. [Transfer-dependent regions of Russia: Scenarios for increasing the budget revenues]. Voprosy Ekonomiki, 2018, no. 12, pp. 46–65. (In Russ.) URL: Link
  15. Kazakova S.M., Mikhailova A.A. [Subsidization as a factor of the resilience of regional economic systems]. Rossiiskii ekonomicheskii zhurnal = Russian Economic Journal, 2018, no. 2, pp. 29–37. (In Russ.)
  16. Mil'chakov M.V. [Heavily non-purpose grants-financed Russian regions: Budgetary conditions and tools of State support]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal = Research Financial Institute. Financial Journal, 2017, no. 1, pp. 22–38. URL: Link (In Russ.)
  17. Sugarova I.V. [Interbudgetary relations and options for solving the problems of budget subsidies]. Vestnik Universiteta, 2019, no. 12, pp. 87–91. (In Russ.) URL: Link

View all articles of issue


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

Journal current issue

Vol. 28, Iss. 11
November 2022