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Fiscal Decentralization and Fiscal Equalization within Regions: The Case of Russia
Academic journal article from Journal of Public Budgeting, Accounting & Financial Management, Vol. 18, No. 1
Beginning of article
ABSTRACT.
The impact of fiscal decentralization on equalization between regions has received significant attention but there has been much less research of the impact of decentralization on equalization within regions. Theory suggests that the tradeoff between local fiscal autonomy and equalization ought to be most pronounced at the sub-region level where rural-urban disparities in the level of development are substantial. This paper is an empirical analysis of the impact of fiscal decentralization on equalization within one Russian region, Leningrad (State). We show that the regional government uses a mixture of fiscal instruments to strike a balance between giving more budgetary …
