Regional Disparities and Fiscal Federalism in Russia
IMF Working Papers, May 20, 2021
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- Regional Disparities and Fiscal Federalism in Russia
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Bibliographic details
- Authors: Oksana Dynnikova, Annette J Kyobe, Slavi T Slavov
- Published: May 20, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513573649.001
Evolution of regional disparities
- Regional disparities have fallen over the past two decades but remain relatively high.
- Income levels have shown faster growth and convergence across regions, yet socioeconomic outcomes remain worse in lagging regions.
- The twin shocks of COVID-19 and lower oil prices appear to have impacted richer regions disproportionately.
Revenue structure and intergovernmental fiscal relations
- Compared to other large countries with federal systems of government, Russia stands out with its high reliance on direct taxes as a revenue source for its regions.
- Transfers from the federal budget to the regions provide some redistribution by reducing the dispersion in real per capita fiscal spending.
- Federal transfers in the aggregate tend to be procyclical and are fairly unresponsive to shocks to regions’ own revenues.
Redistribution, risk sharing, and social transfers
- The Russian fiscal system offers degrees of redistribution and risk sharing of around 26 and 18 percent, respectively.
- In-kind social transfers contribute the most to redistribution.
Growth and transfers
- Transfers are associated with reduced dispersion in real per capita fiscal spending but also tend to be associated with lower growth.
Subject areas and keywords (as listed)
- Subject: Disposable income, Economic sectors, Financial crises, Fiscal federalism, Fiscal policy, Income, Income inequality, National accounts, Revenue administration
- Keywords: complex system, Disposable income, Fiscal federalism, Global, Income, Income inequality, inequality in Russia, risk sharing, Russia's system, transfers from the federal budget
IMF Working Paper No. 2021/144 — Oksana Dynnikova, Annette J Kyobe, Slavi T Slavov; May 20, 2021.
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