Tax aspects of financial resources decentralization

Olga Yu. Ivanova, Olga Yu. Polyakova

Abstract


The article is devoted to topical issues of socio-economic development of regions through decentralization of financial resources ion terms of reallocation of tax revenue. The methodical approach to modeling scenarios of adjusting the tax component of the regional fiscal policy, which consists of five interrelated sequential steps: setting goals; building a model of adjusting the tax component of the regional fiscal policy; identifying the impact of the factors on developing the financial self-sufficiency of regional development; identifying scenarios of tax revenue reallocation between the budgets of different levels; recording potential risks; developing performance criteria for financial resource decentralization and checking scenarios for their compliance; modeling scenarios; selection of the most rational scenario in accordance with economic, social, and organizational effectiveness. In order to identify the most effective options of adjusting the tax component of the regional fiscal policy the article considers four possible scenario variants: the scenario for 2011-2014 years; the governmental scenario for 2015; two scenarios proposed by the authors in terms of securing a share of national taxes to local budgets. For each scenario it considers the risks and the related losses of budgetary funds: temporary, transactional and corruption risks. To model the scenarios, a simulation model of the regional financial resources dynamics using the example of the local budget of Kharkov in the Vensim medium has been built. Modelling the proposed scenario variants has shown deterioration in the scenario 2 of both the budget dependence coefficient and the level of the budget balance in comparison with the pre-existing conditions in 2014. Improvement in the budget dependence indicator and the balance as compared with the retrospective period is achieved in the fourth scenario under consideration. At that, there is a reduction of the volume and the share of the intra-budget transfers and related losses. Legislative recognition of responsibility for implementing reallocated functions will allow to increase their efficiency.

Keywords


taxes; tax revenue; local taxes; decentralization; financial resources; regional development; simulation modelling

Full Text

PDF

References


Blak J.; Osadchaya I. M. (ed.). Ekonomika. Tolkovyi slovar’ [Econoimics. Definition Dictionary]. Originally published by Oxford university press. Moscow, Infra-M Publ., Ves’ Mir Publ., 2000. 840 p.

Raizberg B. A., Lozovskii L. Sh., Starodubtseva E. B. Sovremennyi ekonomicheskii slovar’ [Modern Economic Dictionary]. Moscow, Infra-M Publ., 1999. 479 p.

Іvanova O. Yu. Formuvannya potentsіalu samorozvitku regіonіv Ukraїni v kontekstі transformatsіinikh protsesіv [Formation of self-development potential in Ukraine regions in the context of transformation processes]. Khar’kiv, ІNZhEK Publ., 2014. 304 p. 

Podgornyi V. V. Gosudarstvennoe regulirovanie khozyaistvennoi deyatel’nosti regionov: sostoyanie, problemy, perspektivy [Governmental regulation of regional economic activities: state, problems, prospects]. Donetsk, VІK Publ., 2009. 463 p.

Karasev M. N. Nalogovaya politika i pravovoe regulirovanie nalogooblozheniya v Rossii [Tax policy and legal regulation of taxation in Russia]. Moscow, Vershina Publ., 2004. 224 p.

Varnalіya Z. S. (ed.). Derzhavna regіonal’na polіtika Ukraїni : osoblivostі ta strategіchnі prіoriteti [State regional policy of Ukraine: features and strategic priorities]. Kiiv, NІSD Publ., 2007. 768 p.

Tatarkin A. I., Tatarkin D. A. Self-developing regions in economic system of Russia. Federativnye otnosheniya i regional’naya sotsial’no-ekonomicheskaya politika = Federal relations and regional socio-economic policy, 2008, no. 11, pp. 4–10. (In Russian).

Maiburov I. A., Yaroshenko I. V., Ivanov Yu. B. Nalogovo-byudzhetnye aspekty regional’nogo razvitiya [Tax-budget aspects of regional development]. Khar’kiv, ІNZhEK Publ., 2013. 344 p.

Oates W. Fiscal Federalism. New York, Harcourt, Brace, Jovanovich, 1972. 517 p.

Grіnevs’ka S. M.National Economy modernization by supporting regions self-development. Aktual’nі problemi ekonomіki = Actual Problems of Economics, 2012, no. 11 (137), pp. 169–174. (In Ukrainian).

Morgan Brait Gordon, Samoilova S. S., Fedorova A. Yu. Modern tendencies of shaping inter-budget transfers in the revenue structure of the RF budgets. Sotsial’no-ekonomicheskie yavleniya i protsessy = Social and economic phenomena and processes, 2013, no. 3 (049), pp. 117–121. (In Russian).

Kaspruk A. Yu. Income of local budgets: problems of and reserves increase. Ekonomіchnі nauki. Ceriya: Oblіk і fіnansi = Economic Science. Part: Accounting and Finance, 2012, iss. 9 (2), pp. 60–70. (In Ukrainian).

Tsaples G., Pruyt E., Kővári A., Vasilopoulos Sh. Shock to the System: How can Land Value Taxation change the Face of Cities? Proceedings of the 31st International Conference of the System Dynamics Society. 2013. Cambridge, Massachusetts, USA. Available at: www.systemdynamics.org/conferences/2013/proceed/papers/P1243.pdf/.




DOI: http://dx.doi.org/10.15826/jtr.2016.2.1.015

Copyright (c) 2016 Olga Yu. Ivanova, Olga Yu. Polyakova

eLibrary logoeLibrary logo  DOAJ logo ERIH PLUS logo 

 

© Journal of Tax Reform : ISSN 2414-9497 (online), ISSN 2412-8872 (print)