On the Possibilities of Tax Decentralization in Russia

Abstract

During the structural transformation of the Russian economy, it is especially important to ensure the balance of consolidated regional budgets, in particular through tax decentralization. The article presents the results of modeling the redistribution of tax revenues between the federal and regional levels of the budget system. The purpose of modeling was to find such parameters of tax decentralization which do not worsen the horizontal balance of consolidated regional budgets. The scientific novelty of the paper lies in modeling the effects of tax decentralization on the level of differentiation of regional tax revenues according to the latest available tax and budget reporting data for 2019–2022. As a result, it was shown that an increase in regional shares for personal income tax, certain components of the mineral extraction tax, water tax and fees for the use of water biological resources up to 100% will not lead to a significant increase in inter-regional differentiation of tax revenues. The prospects of the study are to take into account the impact of the structural transformation of the economy on the territorial distribution of tax bases and the level of taxation, as well as to detail the calculations for personal income tax and mineral extraction tax as new data are accumulated.