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Problems of regional development as the reflection of the effectiveness of public administration

Author

Listed:
  • Vladimir Ilyin

    (the Institute of Socio-Economic Development of Territories of the Russian Academy of Sciences)

  • Anna Povarova

    (the Institute of Socio-Economic Development of Territories of the Russian Academy of Sciences)

Abstract

. Economic policy of extreme neoliberalism, having been held in Russia for more than twenty years, has led to the present stagnation of socio-economic development of the country. Its concentrated expression has resulted in a rapid deterioration of the budgetary system, especially at the regional level. In the next three-year budget cycle (2014–2016) a great number of Russian regions will be with the deficit and debt load on the verge of bankruptcy. The Russian government doesn’t take any action to prevent crisis processes. On the contrary, the Ministry of Finance, as the conductor of rigid conservative policy, in a less degree is interested in making regionally oriented decisions. Trying to shift the blame for what is happening in the public sector to the regional authorities, the Minister of Finance has offered to the President to dismiss regional governors who have chronic debts. However, this is unlikely to solve the debt problem, because at the present time, the regions have more expenditure commitments than resources for their providing. On the basis of the analysis of the situation in the field of subnational finance, the authors have come to the conclusion that it is necessary to change the approaches to fiscal policy in the system of regional regulation and offer a number of measures in this direction.

Suggested Citation

  • Vladimir Ilyin & Anna Povarova, 2014. "Problems of regional development as the reflection of the effectiveness of public administration," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 48-63.
    • Handle: RePEc:ura:ecregj:v:1:y:2014:i:3:p:48-63
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    Cited by:

    1. Vladimir Ilyin & Anna Povarova, 2019. "Consolidated Taxation and Its Consequences for Regional Budgets," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 70-83.

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