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Issue № 29. December 2011

Perfecting the Regional Budgetary Regulation Mechanism (the Vladimir region Experience)

Irina V. Terentieva

Ph.D., associate professor, Economics Department, Murom Branch, Vladimir State University.
E-mail: terentieva-murom@yandex.ru

The author proposes a methodology of regional budgetary regulation at territorial level. The methodology is directed at development of the economic initiative of local authorities, reduction of quantity of the territories receiving grants, and elimination of irrational counter financial flows in region. The author uses a model of the relations between the regional budget and budgets of municipal formations of Vladimir region, designing three distinct approaches to budget management: the alignment at the expense of grants (current methodology), the alignment at the expense of regulating taxes (proposed methodology) and alignment due to the replacement of grants deductions from the tax on incomes of physical persons (legislative approach). On the basis of comparative analysis the author identifies the advantages of the proposed methodology of budget regulation.

Keywords

Budgetary regulation, regulating taxes, grants, budgetary security, financial alignment.

Comments:
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