M. M. GUDOV, S. M. MAKEIKINA, A. M. GUDOV. DEVELOPMENT OF INTER-BUDGET RELATIONS IN THE CONTEXT OF FINANCIAL SUPPORT OF A REGION

UDC 336.143:336.15

M. M. GUDOV, S. M. MAKEIKINA, A. M. GUDOV. DEVELOPMENT OF INTER-BUDGET RELATIONS IN THE CONTEXT OF FINANCIAL SUPPORT OF A REGION

Keywords: region; grants; inter-budget relations; inter-budget transfers; subsidies; subventions; financial dependence; financial aid; regional budget

Introduction: under the current conditions, the role of inter-budget relations has been increasing in the context of ensuring sustainable socio-economic development of territories. Inter-budget relations provide the level of the minimum social standards and a decent standard of living guaranteed to every citizen. Through the mechanisms of financial assistance to regional and local budgets, inter-budget relations help to ensure balanced budget system and fiscal capacity. The Russian system of inter-budget relations is characterized by significant financial dependence of regional and local budgets upon federal budgets, by excessive centralization of revenues and by insufficient tax potential of the constituent entities and municipalities. In this regard, there is a need to study the system of inter-budget relations in the context of strengthening the financial capacity of the regions to achieve sustainable socio-economic development of a region and to develop new mechanisms encouraging the regional authorities to replenish their own revenue base.

Materials and Methods: the research is based on the official data of the Ministry of Finance of the Republic of Mordovia, normative legal acts of the Republic of Mordovia, the Budget Code of the Russian Federation, as well as on methodical and practical aspects of implementation of inter-budget relations through the provision of financial aid to the regions. The following general scientific methods made up the methodological basis of the research: analysis and synthesis, generalization, systematic approach, observation and collection of facts from official sources.

Results: the increased rate of inter-budget transfers provided to the budget of a region together with the growth of their share in the own revenues indicate that cyclical fluctuations in the economy to a greater extent impact regional budgets. This determines the need for measures to strengthen the financial independence of the region, for creation of incentives to find their own sources of revenues and fund budgets at the regional level, for empowerment of regional authorities to manage their own revenue base.

Discussion and Conclusions: the current state of the inter-budget relations between the Federal Center and the Republic of Mordovia was analyzed; recommendations for strengthening financial independence of the region aimed at creating incentives to search for its own sources of revenues were formulated.

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Contribution of the authors:

Mikhail M. Gudov — academic advising, critical evaluation of the materials on the research issues and conclusions.

Svetlana M. Makeikina — preparation of the initial draft text of the article and its revision, a comprehensive analysis of implementation of practical aspects of the inter-budget relations in the Republic of Mordovia.

Andrei M. Gudov — search for analytical materials in official sources and processing them, preparation of visual materials.

About the authors:

Mikhail M. Gudov, Candidate of Economic Sciences, Professor at the Department of Finance and Credit, National Research Mordovia State University (68 Bolshevistskaya St., Saransk, 430005, Russia) (е-mail: secretary@adm.mrsu.ru). ORCID: http://orcid.org/0000-0001-8798-883X

Svetlana M. Makeikina, Candidate of Economic Sciences, Associate Professor at the Department of Finance and Credit, National Research Mordovia State University (68 Bolshevistskaya St., Saransk, 430005, Russia) (е-mail: makeikinasm@yandex.ru). ORCID: http://orcid.org/0000-0002-9870-2793

Andrei M. Gudov, Postgraduate at the Department of Organization Management, National Research Mordovia State University (68 Bolshevistskaya St., Saransk, 430005, Russia) (е-mail: andrey.gydov1988@gmail.com). ORCID: http://orcid.org/0000-0003-0600-9957

For citation: Gudov M.M., Makeikina S.M., Gudov A.M. [Development of Inter-Budget Relations in the Context of Financial Support of a Region]. REGIONOLOGIYA = REGIONOLOGY. 2017; 2(25):172—186.

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