Abstract

The Russian Federation constituents differ not only in size and population but also in economic potential and, asa consequence, in the financial abilities to apply their budget authorities. The result is that the RF budget systemfeatures imbalances that are regulated at the federal level through equalisation transfer. This is associated withsuch principles of the RF budget system as unity and equality of budget laws. This paper describes the case studyof horizontal imbalance of the RF budget system being a result of economic disparity of the regions: the fiscalequalisation mechanism is described and appraised for its efficiency.

This work is licensed under a Creative Commons Attribution 4.0 License.