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ИД «Финансы и кредит»






Regional Economics: Theory and Practice

Formation of a functional and effective model of tax federalism: Criteria and factors

Vol. 21, Iss. 9, SEPTEMBER 2023

Received: 1 October 2020

Received in revised form: 19 October 2020

Accepted: 2 November 2020

Available online: 18 September 2023


JEL Classification: H20, H21, H23

Pages: 1709–1727


Magomed M. SULEIMANOV Dagestan State University (DSU), Makhachkala, Republic of Dagestan, Russian Federation


Subject. This article explores the criteria and factors of forming a functional effective model of tax federalism, the combination of financial relationships arising in the process of allocation of taxes between public power levels. The Russian model of tax federalism is the subject of research.
Objectives. The article aims to develop theoretical provisions and practical recommendations to improve the system of delimitation of authorities for government agencies and municipalities, build a functional and effective model of tax federalism to stimulate the growth of tax potential of the subjects of the Russian Federation and municipal entities.
Methods. For the study, I used the methods of comparative analysis, synthesis, and comparison.
Results. The article proposes criteria and factors that determine the formation of a functional effective model of tax federalism aimed at increasing the tax potential of the Russian Federation constituent entities and municipalities.
Conclusions and Relevance. The article concludes that the most important characteristic of the tax federalism model is functional efficiency. When determining the quality of the existing model, it is necessary to rely on the degree of implementation of the functional purpose of tax federalism. The significance of the study lies in the development of theoretical provisions and practical recommendations aimed at forming a functional and effective model of tax federalism.

Keywords: tax federalism, tax potential, regional budget, financial autonomy, tax system


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