E. N. Timusheva, V. A. Yagovkina. Regulation and Characteristics of Reserving Budget Funds in Russian Regions

https://doi.org/10.15507/2413-1407.129.032.202404.618-634

UDC 373:351(470+571)

Abstract

Introduction. The relevance is due to the fact that very little attention is paid to this topic in domestic papers despite the importance of reserving budget funds as an instrument of countercyclical policy and sustainability of regional development. The purpose of the study is to identify the peculiarities of reserve funds regulation in the constituent entities of the Russian Federation, which will allow a better understanding of the motivation and incentives of the authorities and their risk management activities.

Materials and Methods. With the help of general scientific methods the analysis of regional laws on reserve fund and budget process and profile governmental resolutions for each subject of the Russian Federation was carried out, the original database on the main features of reserve funds at the regional level in Russia was created. This made it possible to systematize disparate information on various aspects of budget reserves in Russian regions, highlight common features and peculiarities – a step towards improving the institution of reserving funds to ensure regional financial stability.

Results. The main features and differences between the reserve fund of the subject of the Russian Federation as a public legal entity and the reserve fund (funds) of the executive authority of the subject are identified. It has been established that the reserve fund of the subject of the Russian Federation as a public legal entity is provided for by legislation in not more than half of the regions of the Russian Federation, while the reserve fund of the executive authority operates in every subject. The sources of the funds are, as a rule, a sharp increase in tax and non-tax revenues during the year and the balance on accounts at the beginning of the year. Areas of expenditures from the fund are usually limited and universal, but depending on the conditions of a particular region they can be diverse.

Discussion and Conclusion. The reserve fund of the subject of the Russian Federation remains an unpopular instrument. Unlike the reserve fund of the executive authority, its formation is not necessary, and there is no and spending of funds in the regions. The practical implication consists in the possibility of supplementing the measures of the federal policy of financial stability, as well as in the use of the presented results at the level of a regional administration regarding the experience of other regions in terms of regulation and the practice of formation and of reserve funds.

Keywords: regional reserve fund, countercyclical fiscal policy, regional legislation, financial stability, reservation of budgetary funds, interregional differentiation

Conflict of interests. The authors declare no conflict of interest.

Funding. The article was written in the course of fulfillment of the state assignment of the Russian Presidential Academy of National Economy and Public Administration of the Russian Federation.

For citation: Timushev E.N., Yagovkina V.A. Regulation and Characteristics of Reserving Budget Funds in Russian Regions. Russian Journal of Regional Studies. 2024;32(4):618–634. https://doi.org/10.15507/2413-1407.129.032.202404.618-634

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About the authors:

Evgeniy N. Timushev,Cand.Sci. (Econ.), Senior Researcher, Center for Regional Policy, Institute of Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration (82-84 Vernadsky Ave., Moscow 119571, Russian Federation); Institute for Socio-Economic & Energy Problems of North Komi Science Centre of the Ural Branch of the Russian Academy of Sciences (26 Kommunisticheskaya St., Syktyvkar 167982, Russian Federation), ORCID: https://orcid.org/0000-0002-5220-3841, Researcher ID: U-3491-2018, Scopus ID: 57201315444, SPIN-code: 2445-0220, timushev-en@ranepa.ru

Vita A. Yagovkina, Cand.Sci. (Law), Associate Professor, Leading Researcher. Center for Regional Policy, Institute of Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration (82-84 Vernadsky Ave., Moscow 119571, Russian Federation), ORCID: https://orcid.org/0000-0001-5448-9508, Scopus ID: 57493287200, SPIN-code: 3402-3444, yagovkina-va@ranepa.ru

Contribution of the authors:

E. N. Timushev – statement of problem; development of the research concept and program; scientific guidance; structuring and analysis of results; critical analysis of primary materials; scientific revision of the text.

V. A. Yagovkina – main concept; analysis of literature; data collection; presentation of results and formulation of conclusions; preparation of the text.

Availability of data and materials. The datasets used and/or analyzed during the current study are available from the authors on reasonable request.

The authors have read and approved the final manuscript.

Submitted 05.07.2024; revised 26.08.2024; accepted 07.09.2024.