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Financial Journal Vol.15 No.6 2023

CONTENTS

A.L. Osmolovskaya-Suslina, S.R. Borisova
Non-resource Revenues to the Consolidated Budget: Analysis by Types of Economic Activity
, p. 8-26
Abstract
This paper presents an analysis of non-resource revenues of the consolidated budget of Russia by types of economic activity. The purpose of this study was to identify which sectors are the most sensitive to shocks form the fiscal point of view, and to answer the questions: how long it takes for the revenues of different sectors recover from “local lows” and how the sectoral structure of budget revenues affects the volatility of payments. In accordance with the set objectives, we examined the dynamics of consolidated budget revenues in real terms for the period 2008–2022 as a whole and by sector. In addition, a sectoral analysis was provided for CIT. The calculations were based on the data of the Federal Tax Service prepared by excluding payments on natural rent. The analysis showed that revenue fluctuations are largely determined by the dynamics of payments from the extractive sector (especially oil production), and an increase in the sector’s share is likely to increase the overall volatility of revenues. In fiscal terms, the processing sector is the most sustainable for total revenues but provides a source of volatility in CIT dynamics. Revenues from financial activities show the fastest recovery from the crises. Trade and finance have a stabilizing effect on both total revenues and CIT dynamics. The results of the study can be used at the stage of budget planning.
Keywords: taxes, budget revenues, CIT, budget risks, budget revenues by sector
JEL: E64, H24, H25, H72
For citation: Osmolovskaya-Suslina A.L., Borisova S.R. (2023). Non-resource Revenues to the Consolidated Budget: Analysis by Types of Economic Activity. Financial Journal, 15 (6), 8–26 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-8-26
© Osmolovskaya-Suslina A.L., Borisova S.R., 2023

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P.E. Zhukov
Capital Flight from Russia and Possible Sources of Financing Budget Expenditures
, p. 27-42
Abstract
The article considers the problems of capital flight from Russia in current conditions and the related problems of financing budget expenditures. The difference between capital export and capital flight, which occurs in conditions of extremely high risks or unfavorable investment climate, is substantiated. The balance of payments of Russia in 2022 is analyzed, and it is substantiated that in the current situation capital flows are largely capital flight from political and economic risks. The author estimates the size of capital flight from Russia in 2022 (approximately $232 billion), and concludes that the mandatory sale of foreign exchange earnings in modern conditions can be replaced by more flexible control measures. Further, the paper analyzes a set of complex problems of financing the federal budget expenditures of Russia in the current conditions. Three possible mechanisms of financing the budget deficit (or additional expenditures) are considered: at the expense of new public debt, at the expense of the National Welfare Fund and sale of state assets, as well as at the expense of new emergency taxes. It is concluded that attraction of new sources for government borrowing is practically impossible without a significant increase in interest expenditures. At the end of the paper, for the recovery of the Russian economy, there is a proposal to introduce a new flexible tax on the export of capital, which can create incentives for investment in the Russian economy and solve the problems of financing federal budget expenditures in modern conditions.
Keywords: foreign direct investment, capital flight, capital export, budget revenues, budget deficit, emergency tax
JEL: F21, G11, H50, H61, H68
For citation: Zhukov P.E. (2023). Capital Flight from Russia and Possible Sources of Financing Budget Expenditures. Financial Journal, 15 (6), 27–42 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-27-42
© Zhukov P.E., 2023

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A. Patalaha, M.A. Shchepeleva
Bank Crisis Management Policies and the New Instability
, p. 43-60
Abstract
This research focuses on the determinants of banking crises. Despite all efforts to create systems of leading indicators, banking crises still occur, leading to negative consequences not only in the financial but also in the real sector of the economy. Our objective is to figure out how the characteristics of past banking crises, in particular the amount of liquidity support provided by the government, are related to the probability of subsequent banking crises. To accomplish this task, we use a classification tree methodology which we apply to a sample of 56 countries over the period 2000–2021. In addition to the characteristics of past crisis episodes, we add to the list of potential predictors of banking crises indicators related to the depth, structure and efficiency of the banking sector; institutional and macroeconomic indicators; and the index of macroprudential policy. To test the robustness of our results, we perform variable selection through Bayesian model averaging. Our results suggest that liquidity support during the past banking crisis is important for future crises. We demonstrate that excessive government support aimed at stabilizing the system during a crisis may affect future banking sector stability mainly by increasing the level of moral hazard in the financial system.
Keywords: classification tree, banking crisis, Bayesian model averaging, moral hazard
JEL: G01, G17, G28
Funding: The research was funded by the Russian Science Foundation (project No. 23-18-00756).
For citation: Patalaha A., Shchepeleva M.A. (2023). Bank Crisis Management Policies and the New Instability. Financial Journal, 15 (6), 43–60 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-43-60
© Patalaha A., Shchepeleva M.A., 2023

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A.A. Tsyganov, I.A. Bystronovskaya
Possible Organizational and Economic Schemes of Index Insurance in Russian Agriculture
, p. 61-75
Abstract
Agricultural risks, given climate change and the crisis of globalization, are increasingly considered as national security risks. In global practice, insurance has proven to be one of the most successful and sustainable ways to manage agricultural risks. In the Russian Federation, agricultural insurance is also state-supported, which emphasizes the importance of containment of agricultural sector hazards. However, the level of insurance penetration in Russian agriculture is insufficient. Indices in agricultural insurance, i.e. insurance in which insurance payments are made not on the basis of the assessment of damage to the insurance object, but on the basis of the behavior of a special index, are used in many countries around the world. The main idea of index insurance is that there is no need to establish the fact and calculate the amount of loss, which makes it especially demanded for those activities in the real sector of the economy where speed, transparency and simplicity of insurance payments are important, as well as the need to attract additional well-trained employees to carry out the insurance process and claims settlement. Reduced workload due to the absence of the need to calculate the amount of loss reduces the time required to process claims. The procedures of claim settlement in index insurance can be called the most simplified for the client and the least costly for the insurance company, but the advantages and positive features of index insurance do not end there. The authors have investigated and systematized the possibilities of index insurance, for which they also considered the successful experience of a country with similar socio-cultural codes, Mexico, in the field of agricultural index insurance. The article also suggests ways to overcome the difficulties of index insurance implementation in the Russian insurance realities. The positive features of the index insurance identified by the authors can make it a promising alternative to classical (traditional) insurance, including for the further development of agricultural insurance with state support.
Keywords: insurance theory, index insurance, agricultural insurance, insurance legislation
JEL: G22
Funding: the article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Tsyganov A.A., Bystronovskaya I.A. (2023). Possible Organizational and Economic Schemes of Index Insurance in Russian Agriculture. Financial Journal, 15 (6), 61–75 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-61-75
© Tsyganov A.A., Bystronovskaya I.A., 2023

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P.K. Koval, A.V. Polbin
Estimation of Heterogenous Consumption and Income Parameters
, p. 76-92
Abstract
In modern economic literature, much attention is paid to estimates of the structural parameters of consumer choice and the process of income generation. Such estimations play an important role in determining the optimal insurance system, optimal monetary and fiscal policies, as well as in assessing the welfare of the population. In this paper, we estimate a set of parameters that determine the dynamics of household income and consumption in Russia. These parameters are heterogeneous at the household level; the paper uses the estimation method proposed in [Alan et al., 2018]. To estimate the parameters we use RLMS panel data for the period 2005–2019. The results indicate the presence of significant co-dependent heterogeneity of the parameters determining the dynamics of income and consumption. These results reflect the specifics of the consumer behavior of households in Russia. In particular, significant heterogeneity in the sensitivity of consumption to income shocks indicates a large variability of consumption insurance mechanisms available to households. In addition, there is significant heterogeneity in the dispersion of income shocks, which is critical in the context of the discussion of heterogeneous insurance instruments against income shocks (e.g., access to financial assets), as households with higher variation in unanticipated income change value these instruments more. This study is the first to estimate the full distribution of heterogeneous parameters of consumption and income dynamics using Russian data. Estimates of heterogeneous parameters are important for constructing theoretical models of consumer choice and analyzing optimal social policy. In particular, high values of the level of parameter heterogeneity indicate that standard models with a representative agent are not suitable for optimal policy choices.
Keywords: heterogenous parameters, consumption, income, households, RLMS, structural model
JEL: D10, D12, E21
For citation: Koval P.K., Polbin A.V. (2023). Estimation of Heterogenous Consumption and Income Parameters. Financial Journal, 15 (6), 76–92 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-76-92
© Koval P.K., Polbin A.V., 2023

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E.I. Brichka, Yu.S. Evlakhova
Three Levels of Digital Inequality of the Population in the Financial Sphere
, p. 93-109
Abstract
The article examines the problems of digital inequality in the financial sphere at three levels. The purpose of the study is to characterize and assess (quantitatively or qualitatively) the digital inequality of the Russian population in the financial sphere (at each of the three levels). The achievement of the research goal is ensured by using the index method, methods of graphical analysis, as well as comparative analysis of empirical data. The result of the work is the developed index of the first-level digital inequality in the financial sphere, which allows to give an aggregate assessment. The calculated values of the index confirm the conclusions about the steady decline in the Russian economy of the first-level digital inequality in the financial sphere. As for the second-level digital inequality, the following results were obtained: In 2021, a significant part of the Russian population possessed such basic skills as sending files via e-mail and messengers, working with a text editor and copying or moving files; the share of the population possessing advanced skills increased, while the availability of basic and standard digital skills remained virtually unchanged; the level of digital literacy does not affect the population’s activity in ordering financial services online. A list of digital financial skills has been formulated, which can be assessed in further analysis of the second-level digital inequality. The theoretical description of the third-level digital inequality led us to conclude that to better understand this level, an expanded analysis is required, as well as progress in overcoming the digital gaps of the first and second levels.
Keywords: digital inequality, digital technologies, digital skills, digital competencies, digital inequality index, financial market
JEL: G20, O33
Funding: the article is based on the results of the research performed under the Russian Science Foundation grant № 23-28-00590, https://rscf.ru/project/23-28-00590/
For citation: Brichka E.I., Evlakhova Yu.S. (2023). Three Levels of Digital Inequality of the Population in the Financial Sphere. Financial Journal, 15 (6), 93–109 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-93-109
© Brichka E.I., Evlakhova Yu.S., 2023

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L.N. Ivanova, E.N. Badmaeva
Cross-border Approach to Economic Cooperation between Russia and Kazakhstan in the Sphere
of Turnover of Precious Metals and Stones
, p. 110-122
Abstract
In the conditions of expanding interaction between friendly countries, the cross-border approach to economic cooperation in strategically important areas is becoming increasingly important. The methodological basis of this study was the dialectical method of cognition, which allows analyzing and synthesizing economic phenomena, dissecting them into separate elements. The methods of logical, economic and situational analysis were also used. The authors give a bibliographic review of economic cooperation between Russia and the Republic of Kazakhstan using a cross-border approach to the analysis of the precious metals and stones market; show the role of the Republic of Kazakhstan at historical stages in the formation of integration processes in the Eurasian space; characterize the structure of the market of precious metals and stones and products made of them. The market of precious metals, gemstones and products made of them is a promising direction of Kazakhstan's economic development. The Republic of Kazakhstan is successfully improving the state regulation of the precious metals and gemstones industry, taking into account global trends and best practices in this area. Cross-border cooperation between Kazakhstan and Russia will contribute to their further economic development.
Keywords: Russia, Kazakhstan, cross-border approach, precious metals, gemstones
JEL: D51, G28, G32, O29, L15
Funding: the article was prepared as part of the research work under the state assignment of the Financial Research Institute.
For citation: Ivanova L.N., Вadmaeva E.N. (2023). Cross-border Approach to Economic Cooperation between Russia and Kazakhstan in the Sphere of Turnover of Precious Metals and Stones. Financial Journal, 15 (6), 110–122 (In Russ.). https://doi.org/10.31107/2075-1990-2023-6-110-122
© Ivanova L.N., Вadmaeva E.N., 2023

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V.V. Olkhovik, R.S. Afanasev, E. Juchnevicius, T.N. Malofeeva
Fiscal Mechanism for Stimulating Domestic Production in Some BRICS and European Countries
, p. 123-135
Abstract
The issue of stimulating domestic production is multifaceted and has a long history of study. At present, it is particularly relevant due to the introduction of restrictive measures, including the termination of supplies of a number of foreign goods to the Russian Federation. As one of the possible measures to increase the production of goods by Russian companies and entrepreneurs, the authors consider a new incentive mechanism of redistribution of value added tax (VAT) received by the federal budget, which implies the direction of the amounts of social grants taking into account the economic activity of the region associated with the production of value added on its territory. The purpose of the article is to justify a new methodology that includes a financial mechanism for redistributing the amounts of VAT in the form of grants to producers, aimed at creating effective budgetary incentives for regions to organize their own production of goods. For this purpose, the experience of VAT distribution in two BRICS countries — Brazil and China — is considered. In addition, the article summarizes effective measures of Germany, France, Greece, Austria and Norway to optimize calculation and payment of VAT, which resulted in economic growth. Discussion. One notable approach proposed by the authors to create a new incentive mechanism for redistribution of VAT revenues to the federal budget. This mechanism involves the allocation of social grants depending on the economic activity of the regions, particularly related to the production of valueadded goods on their territory. This approach represents a departure from traditional fiscal policies aimed at aligning incentives with local production. Results. This research represents a significant contribution to the ongoing debate on stimulating domestic production. By advocating a new mechanism of VAT redistribution and drawing on international experiences, the study seeks to address the challenges posed by restrictive measures and promote economic growth in the Russian Federation.
Keywords: commodity production, stimulating, value added tax, social grants, economic activity, redistribution, budgetary incentives, BRICS countries, VAT distribution, economic growth
JEL: H30, H87
For citation: Olkhovik V.V., Afanasev R.S., Juchnevicius E., Malofeeva T.N. (2023). Fiscal Mechanism for Stimulating Domestic Production in Some BRICS and European Countries. Financial Journal, 15 (6), 123–135. https://doi.org/10.31107/2075-1990-2023-6-123-135
© Olkhovik V.V., Afanasev R.S., Juchnevicius E., Malofeeva T.N., 2023

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Financial Journal Vol.15 No.5 2023

CONTENTS

A.I. Votinov, V.A. Gribova, S.S. Lazaryan
Analysis of the Transmission Mechanism of Public Investments: The Case of the DSGE Model
, p. 8-26
Abstract
This paper attempts to assess the impact of public investment within the framework of a simple DSGE model calibrated on Russian data. To this end, three versions of the DSGE model were constructed. The first model, referred to as the baseline model, assumes efficient allocation of public investment. The second model considers inefficient use of public investment when it is not fully converted into capital. The third model examines crowding out of private investment by public investment. The primary focus of this paper is to analyze the effects of public investment shock on various components of the economy. Two distinct effects are identified with regard to investment. The first effect relates to a short-term increase in demand due to an increase in investment activity. The size of this effect is strongly influenced by the crowding-out phenomenon, in particular by the ability of the economy to absorb investment effectively. The second effect is a reduction in marginal costs in the medium to long run, which facilitates economic growth even at the expense of increased private investment. This effect depends primarily on the efficiency of transformation of public investment into capital. The study also analyzes the sensitivity of the results to parameterization, including the degree of economic openness. The findings of the study explain the transmission mechanism of public investment, including the factors affecting its efficiency. It is important to note that the main objective of the study was to investigate the transmission mechanism and its determinants, while the next stage of the research is expected to include a comprehensive assessment of the parameters using Russian data.
Keywords: public investment, DSGE models, crowding-out effect, investment efficiency, depreciation rate, income ratio, rate of substitution
JEL: E22, E62, H54, R53
Funding: The study was supported by the Russian Science Foundation Grant No. 21-18-00482, https://rscf.ru/project/21-18-00482/
For citation: Votinov A.I., Gribova V.A., Lazaryan S.S. (2023). Analysis of the Transmission Mechanism of Public Investments: The Case of the DSGE Model. Financial Journal, 15 (5), 8–26 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-8-26
© Votinov A.I., Gribova V.A., Lazaryan S.S., 2023

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L.V. Sannikova
Legal Framework for Central Bank Digital Currencies and the Digital Ruble
, p. 27-44
Abstract
The introduction of central bank digital currencies (CBDCs) requires an appropriate legal framework. Its absence creates serious legal and reputational risks that may undermine citizens' confidence in the new digital form of national currency. The purpose of this article is to explore the approaches to the formation of the legal basis for the functioning of CBDCs based on the analysis of foreign experience and Russian legislation. The article highlights the legal features of CBDCs that allow to distinguish them from other state digital financial instruments. The author proposes a legal taxonomy of retail CBDCs, revealing the legal consequences of the choice of CBDC design. Special attention is paid to the problem of legal balance between user privacy and security. The article investigates legal approaches to the regulation of CBDC of foreign countries, primarily China. The author analyses the legislation on the digital ruble, which showed the insufficiency of legal guarantees to protect the rights of citizens — users of the digital ruble platform, which may negatively affect public confidence in the digital ruble.
Keywords: central bank digital currency (CBDC), legal taxonomy, retail CBDCs, programmable CBDCs, digital ruble, digital yuan
JEL: G21, G28
Funding: This research was supported by the Russian Foundation for Basic Research via grant 21-511-93004 КАОН “Rule of Law in the Digital Economy in China and Russia: Current State, Challenges and
Future Development”.
For citation: Sannikova L.V. (2023). Legal Framework for Central Bank Digital Currencies and the Digital Ruble. Financial Journal, 15 (5), 27–44 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-27-44
© Sannikova L.V., 2023

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A.I. Lukashov
Improvement of Treasury Control Tools as a Measure to Increase the Efficiency of Budget Expenditures
, p. 45-60
Abstract
The article is devoted to the issues related to the need to improve the efficiency of budget funds. The author proposes to supplement the "classical" criteria of budget funds usage efficiency with the criterion of legality. The study summarizes and analyzes the results of control activities of the Accounts Chamber of the Russian Federation and the Federal Treasury. In view of the significant number of violations detected by the state financial control bodies, the author concludes that it is necessary to improve the treasury control tools, such as treasury service, treasury support, budget monitoring and preliminary control in the field of procurement. The author also considers approaches to improving the operational efficiency of the use of budgetary funds. The empirical basis of the study are the results of the federal budget execution for the past five years, as well as indicators of the federal budget receivables. Special attention is paid to the prospects for the development of centralized budget accounting.
Keywords: state financial control, treasury control, treasury service, treasury support, centralized budget accounting
JEL: G32, H12, M15, M38, O32
For citation: Lukashov A.I. (2023). Improvement of Treasury Control Tools as a Measure to Increase the Efficiency of Budget Expenditures. Financial Journal, 15 (5), 45–60 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-45-60
© Lukashov A.I., 2023

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E.N. Timushev, V.A. Yagovkina
Reserve Funds in Russian Regions: Factors of Formation and Efficiency Assessment
, p. 61-78
Abstract
The article considers the main characteristics of the Russian Federation subjects’ reserve funds analyzes the factors of their formation and assesses their effectiveness through the lens of the regions’ countercyclical fiscal policy. In theory, reserve funds serve not only as a source of additional budgetary funds, but also as an instrument of anti-crisis policy and financial stability. In practice, the reserve funds of Russian regions are believed not to fulfill the designated tasks, although the number of relevant studies is extremely limited. The latter determines the relevance of this study. The authors establish that the regional reserve fund of the subject as a public-law entity was established only in about half of the Russian regions and in many respects their creation coincided with the recovery growth after the crisis of 2009–2010. The theoretical provisions are also consistent with the fact that on average the reserve fund is owned by the entities whose economy is more dependent on the mining industry, has greater fiscal capacity, is less subsidized and has a lower level of debt. At the same time, greater fiscal capacity or debt sustainability can hardly be considered as factors in the creation of reserve funds. A number of models are constructed to assess the effectiveness of reserve funds of Russian regions from the point of view of countercyclical fiscal policy. It is concluded that reserve funds in their current form are ineffective for smoothing regional expenditures and maintaining overall fiscal stability. Nevertheless, many questions remain in this topic, including alternative model specifications and evaluation techniques. Based on the results obtained, the directions for further research are formulated.
Keywords: countercyclical fiscal policy, financial stability, intergovernmental fiscal relations, regional legislation, interaction variable, dummy variable, reserve funds
JEL: H61, H72, H77
Funding: the manuscript is based on the results of research carried out within the framework of the RANEPA state assignment.
For citation: Timushev E.N., Yagovkina V.A. (2023). Reserve Funds in Russian Regions: Factors of Formation and Efficiency Assessment. Financial Journal, 15 (5), 61–78 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-61-78
© Timushev E.N., Yagovkina V.A., 2023

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V.V. Klimanov, A.A. Mikhaylova, Z.I. Egorsheva
Moscow Budget Policy: Opportunities for Responding to the Challenges of the New Reality
, p. 79-93
Abstract
At present in Russia there is a need to improve the quality of budget policy as the most important element of state policy, and Moscow is undoubtedly the leading region for its implementation. The purpose of the study is to determine whether Moscow's budget policy can respond to the challenges of the new reality through the instrument of state programs. To achieve this goal, the article considers the retrospective of Moscow budget execution in terms of expenditures, paying special attention to the program structure of expenditures. With the help of statistical and analytical methods the authors analyze the dynamics of budget expenditures distribution within the framework of Moscow state programs, and examine the approved and executed budgets and the percentage of deviation of the executed expenditures from the initially approved ones by subprograms. It is concluded that the Moscow budget is quite adaptive. The dynamics of budget expenditures shows that the distribution of budget allocations has been adjusted due to the need of the megapolis to respond to various challenges. If earlier such challenges included the need to fight the COVID-19 pandemic, now it is a tense foreign policy situation and sanctions from unfriendly states.
Keywords: Moscow budget policy, megapolis finances, financial sustainability, state programs and projects
JEL: H74, H77, Q58, R51
Funding: The research was supported by the Russian Science Foundation. Project No. 22-28-20117 «Megapolis Budget Policy as a Tool for Responding to the Challenges of the New Reality». https://rscf.ru/project/22-28-20117/
For citation: Klimanov V.V., Mikhaylova A.A., Egorsheva Z.I. (2023). Moscow Budget Policy: Opportunities for Responding to the Challenges of the New Reality. Financial Journal, 15 (5), 79–93 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-79-93
© Klimanov V.V., Mikhaylova A.A., Egorsheva Z.I., 2023

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A.I. Potapov
Assessing the Margin Requirements Impact on the Russian Futures Market Liquidity
, p. 94-116
Abstract
The implementation of a margin system in derivatives markets has a positive effect on market liquidity and market pricing efficiency. At the same time, portfolio diversification and hedging are not fully taken into account when assessing margin requirements. Therefore, in order to comply with regulatory requirements, the exchange sets excessive margins. IAs Charoula Daskalaki and George Skiadopoulos have shown, overestimation of margin requirements reduces the positive effect of the existence of a margin system. However, quantification of this observation has not been presented in studies before. This paper quantifies the dependence of market liquidity on the level of margin. The study is conducted on data from futures contracts for 19 underlying assets traded on the Moscow Exchange between 2014 and 2021, using an autoregressive moving average model with exogenous factors (ARMAX). The stability of the obtained results is determined by comparing different model specifications with different sliding window sizes. The analysis not only confirmed the fact that margin requirements, which protect the exchange's capital, reduce the positive effect of implementing a margin system but also allowed to evaluate it quantitatively: a 1% increase in margin requirements in relative terms reduces trading volume from 2.5 to 7% and the volume of open positions from 0.2 to 0.9%, depending on the type of position and trader. The impact on trading volume is on average stable over time, and there are local trends and tipping points for the volume of open positions.
Keywords: derivatives, time series analysis, liquidity, margin requirements
JEL: C32, C51, G12
For citation: Potapov A.I. (2023). Assessing the Margin Requirements Impact on the Russian Futures Market Liquidity. Financial Journal, 15 (5), 94–116 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-94-116
© Potapov A.I., 2023

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V.D. Smirnov
Evolution of the Bank-firm Relationship
, p. 117-132
Abstract
Increasing competition in all sectors of the economy, caused by the accelerated introduction of new technological advances in manufacturing processes, the creation of innovative products and the use of new business models, generates increased uncertainty in the development prospects of each market organization. The natural reaction of many commercial structures is to deepen specialization and competencies in their core activities. The purpose of the study is to identify the circumstances affecting interaction between a company and a bank in the new conditions. The article for the first time examines these relationships from the point of view of the need for each party to improve its own business, which objectively requires closer cooperation between them. Based on the results of the study, the author concludes that strengthening collaboration between a firm and a bank in the field of credit and payment operations and management of related risks is based on pursuit of each party’s own goals and increases the value of each of them. Forms of cooperation between a company and a bank can be different, but the most effective for each organization seems to be a partnership form of relationship, allowing the participants of cooperation to receive the greatest benefits and, at the same time, to strengthen and reinforce their positions in the core activities of each party.
Keywords: specialization, competition, cooperation, mutual benefit, efficiency, firm, bank
JEL: G21, G32
For citation: Smirnov V.D. (2023). Evolution of the Bank-firm Relationship. Financial Journal, 15 (5), 117–132 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-117-132
© Smirnov V.D., 2023

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M.E. Kosov, E.V. Golubtsova, E.S. Novikova
The Role of State Financial Regulation in Solving Key Problems of Russian Regions on the Example of the Far Eastern Federal District
, p. 133-149
Abstract
The relevance of this research is defined by the importance of the Far Eastern Federal District in the context of reorientation of Russia’s logistics and infrastructure from West to East. The aim of the paper is to test the hypothesis about the positive impact of the used measures of state financial regulation on the development of the Far Eastern Federal District in order to solve its key problems. The authors faced the task to analyze and develop essential measures of state financial regulation at the regional level. The scientific novelty of the study lies in the development of those measures taking into account the changing importance of the region in Russia’s trade turnover. The practical relevance consists in the possibility of using the results in the development of public financial policy in the region. In addition, the article considers key problems of the region, the solution of which will have a positive impact on the country’s economic growth and can be achieved through the government financial measures suggested by the authors. Such measures include increasing the capacity of the Far East sea ports, which means the simultaneous development of the Russian logistical infrastructure, primarily railway infrastructure, to organize uninterrupted delivery of goods to the ports of the region; changing the structure of the trade turnover with a shift towards the export of high-tech products; solving the demographic problems and increasing the scientific and technological potential of the Russian Far East. The results of this study can be used to analyze other Russian regions in order to increase the economic potential of the country as a whole.
Keywords: import substitution, state regulation, regional economics, tax incentives, preferential lending, subsidies, investments
JEL: G18
For citation: Kosov M.E., Golubtsova E.V., Novikova E.S. (2023). The Role of State Financial Regulation in Solving Key Problems of Russian Regions on the Example of the Far Eastern Federal District. Financial Journal, 15 (5), 133–149 (In Russ.). https://doi.org/10.31107/2075-1990-2023-5-133-149
© Kosov M.E., Golubtsova E.V., Novikova E.S., 2023

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Financial Journal Vol.15 No.4 2023

CONTENTS

A.B. Zolotareva
Problems and Methods of Improving the Legal Regulation of Public Investment in Russia
, p. 8-26
Abstract
The article describes the main conclusions of the research work aimed at identifying key problems of and ways to improve the legal regulation of public investment in Russia. This work was based on the analysis of legislation and practice of its application. The analysis leads to the conclusion that there are significant shortcomings in the current legislation on planning and implementation of public investment, which hinder their efficiency. Among such shortcomings, the author highlights contradictions on the issue of bodies authorized to make key investment decisions; duplication of the investment component of state programs and national (federal) projects; approval of budget allocations for projects that are not ready for implementation; unclear grounds for raising the price of construction contracts, as well as for centralizing the functions of planning and implementation of sectoral investments, reduction of requirements for justification of investment projects. To mitigate these shortcomings, the author suggests to ensure systematic planning of large investments as part of national and federal projects, excluding these costs from the state programs; as a general rule, to abandon the practice of approving decisions on the implementation of budget investments by individual acts of the government and financing projects without the necessary documentation; to organize a comparative assessment of the efficiency of centralized and sectoral customers in investment management according to legally defined criteria; to return to the use of some previously applied criteria for the efficiency of investment projects.
Keywords: public investments, budget investments, federal targeted investment program (FTIP), planning of public investments, implementation of public investments
JEL: H11, H50, H54, H60, H68, O20
For citation: Zolotareva A.B. (2023). Problems and Methods of Improving the Legal Regulation of Public Investment in Russia. Financial Journal, 15 (4), 8–26 (In Russ.). 
https://doi.org/10.31107/2075-1990-2023-4-8-26.
© Zolotareva A.B., 2023

 

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O.K. Yastrebova, O.I. Karasev
Financing Instruments and Outcomes for R&D Public Funding
, p. 27-42
Abstract
The key actual task of improving the tools of scientific and technological policy is the focus of R&D on obtaining socially significant results, including the creation of in-demand innovative products and technologies. Its solution requires appropriate improvement of the system of financial support for science. The authors of the article consider the existence of a clearly structured relationship between the national goals set for the scientific field as a whole and specific tools for their achievement as a necessary condition for effective management of this sphere. The paper analyzes the key instruments of R&D financing from the point of view of approaches to ensuring their effectiveness. The necessity of linking the volume of funding with the achieved results is shown, and specific proposals to solving this problem are made, including those based on the assessment of the technology readiness level (TRL).
Keywords: S&T policy, R&D financing instruments, performance indicators, technology readiness level, state program
JEL: O31, O32, O38
For citation: Yastrebova O.K., Karasev O.I. (2023). Financing Instruments and Outcomes for R&D Public Funding. Financial Journal, 15 (4), 27–42 (In Russ.). 
https://doi.org/10.31107/2075-1990-2023-4-27-42.
© Yastrebova O.K., Karasev O.I., 2023

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B.I. Alekhin
Monetary Poverty and Education in Russia
, p. 43-62
Abstract
Russian economic literature on poverty abounds with empirically unsupported assertions about the positive relationship between education and living standards. The purpose of this study is to find empirical evidence of this relationship using panel data for 82 regions of the Russian Federation for 2000–2021. We applied a dynamic OLS estimator to estimate a panel cointegrating equation and found strong negative and statistically significant dependence of indicators of absolute and relative monetary poverty on the highest level of education of the regional working-age population. We also performed the Dumitrescu-Hurlin pairwise causality test, which shows that higher education does not homogeneously cause more absolute monetary poverty, but more absolute monetary poverty does homogeneously cause better education as people try to avoid poverty by raising their educational level. The results of these econometric procedures suggest that the purpose of the study has been achieved.
Keywords: monetary poverty, education, cointegration, region, Russia
JEL: I24, C23
For citation: Alekhin B.I. (2023). Monetary Poverty and Education in Russia. Financial Journal, 15 (4), 43–62 (In Russ.).
https://doi.org/10.31107/2075-1990-2023-4-43-62.
© Alekhin B.I., 2023

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A.I. Denisova, D.A. Sozaeva, K.V. Gonchar, G.A. Aleksandrov
Improving the Methodology for Assessing the Economic Efficiency of Public E-procurement of Medicines
, p. 63-81
Abstract
The study raises the issue of evaluating the effectiveness of public procurement, especially procurement of medicines. This topic is relevant, since a significant part of state funding is directed specifically to the healthcare system. In addition, the quality of organization of procurement activities affects the work of hospitals and polyclinics. In this regard, the improvement of the methodology for assessing the economic efficiency of public procurement, particularly procurement of medicines, is critically important. The paper presents the results of statistical analysis showing the need to develop a more comprehensive methodology that takes into account the volume of failed purchases in the context of efficiency assessment. The issue of "repeated" purchases was studied separately, since information about them would allow drawing conclusions about the existing patterns in tenders and the reasons for recognizing a purchase as failed. The methodological novelty is associated with the description of the approach to the formation of a sample for research and the algorithm for identifying "repeated" procurement procedures. All calculations are based on real data on procurement under the Federal Law No. 44-FZ for 2021–2022. The data was aggregated from the Unified Information System for Procurement. A statistical analysis of the scale of failed and repeated purchases in the context of regions, medicines and pharmacotherapeutic groups has been conducted. Based on the analysis, approximate estimates of hidden costs of the state budget related to re-organizing and re-conducting of trade procedures are given. The results of the work can be used for further scientific research in the field of public procurement efficiency, as well as to improve public policy in the field of procurement and provision of medicines.
Keywords: state and municipal procurement, effectiveness of public procurement, procurement of medicines, repeated purchases, failed purchases, big data
JEL: C55, C81, C40, H57, I18
Acknowledgments: The study was carried out at the State University of Management in cooperation with Roseltorg.Lab (JSC "Unified Electronic Trading Platform"). The authors are grateful to JSC "United Electronic Trading Platform" for the supportof the company's employees research activities.
For citation: Denisova A.I., Sozaeva D.A., Gonchar K.V., Aleksandrov G.A. (2023). Improving the Methodology for Assessing the Economic Efficiency of Public
E-procurement of Medicines. Financial Journal, 15 (4), 63–81 (In Russ.). https://doi.org/10.31107/2075-1990-2023-4-63-81.
© Denisova A.I., Sozaeva D.A., Gonchar K.V., Aleksandrov G.A., 2023

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T.I. Vinogradova
Green Budgeting Tools and Practice
, p. 82-97
Abstract
Russia is following the course of implementation of the Sustainable Development Goals and shaping its climate strategy. In March 2023, Russia approved the National Action Plan for the second phase of adaptation to climate change for the period until 2025. The public budget is the main tool for achieving the political goals of the government, therefore, in order to implement the public policy in the field of environmental protection and counteraction to climate change, green budgeting is being introduced. The purpose of this article is to actualize the ideas of green budgeting, systematize such budgeting tools within the framework of the general concept of green budgeting, taking into account foreign experience of their use. The author uses general scientific methods, in particular methods of analysis and synthesis of relevant scientific literature, legal information and publications of international organizations. The following conclusions are made: The public budget system is able to minimize those economic activities that are adverse for the environment by creating the possibility of tracking, analysis, evaluation and adjustment of budget expenditures using the tools of green budgeting. The latter does not require restructuring of the public finance management system; the prerequisite for its practical use is the presence of environmental care among the state national goals.
Keywords: green budget, green budgeting, green public finance management, climate budgeting, green budget tagging, environmental impact assessment, audit of green expenditures
JEL: F53, F64, H61, H72, Q01, Q51
For citation: Vinogradova T.I. (2023). Green Budgeting Tools and Practice. Financial Journal, 15 (4), 82–97 (In Russ.). https://doi.org/10.31107/2075-1990-2023-4-82-97.
© Vinogradova T.I., 2023

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Zh.A. Mingaleva, I.A. Nikitina, I.A. Kruglova
On the Feasibility of Using the Environmental Performance Index to Assess
the Level of Socio-ecological Development of Russian Regions
, p. 98-111 
Abstract
Introduction: Investment decisions by many private and institutional investors are made taking into account the information (current estimates, forecasts, trends) contained in various country ratings regularly published by leading international financial and regulatory organizations (IMF, IBRD, UN), which allows investors to assess the level of risk and return on investment in various projects in these countries. The article evaluates the Environmental Performance Index (EPI), the most common in international studies, from the point of view of its use as a comprehensive tool for comparative analysis and an indicator for assessing the success of achieving the goals of sustainable social and environmental development of Russian regions. Purpose: Analysis of the feasibility of using EPI and its individual elements as part of an integrated approach to assessing the effectiveness of social and environmental development of Russia and its regions. Results: The authors reviewed the transformation of the methodology for calculating EPI over the entire period of its compilation; analyzed the dynamics of indicators, directions and blocks that make up the Index; assessed their adequacy to the geographical and sectoral features of social and environmental development. Conclusions: An extremely high level of politicization of the Index and inconsistency of its calculation methodology with the real conditions of Russia’s economic development were revealed. The inexpediency of its use in the present conditions to assess the social and environmental development of Russian regions, to build a rating of their sustainable development, to develop criteria for evaluating the effectiveness of environmental programs and projects, including in the field of green and environmental investments, was proved.
Keywords: socio-ecological development, comparative analysis, Environmental Performance Index, assessment indicators
JEL: Q54, Q56, Q58, Q52
Acknowledgments: the article was prepared as part of the implementation of the Strategic Academic Leadership Program “Priority 2030” by the Russian Presidential Academy of National Economy and Public Administration (RANEPA).
For citation: Mingaleva Zh.A., Nikitina I.A., Kruglova I.A. (2023). On the Feasibility of Using the Environmental Performance Index to Assess the Level of Socio-ecological Development of Russian Regions. Financial Journal, 15 (4), 98–111 (In Russ.). https://doi.org/10.31107/2075-1990-2023-4-98-111.
© Mingaleva Zh.A., Nikitina I.A., Kruglova I.A., 2023

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I.V. Kiviko, N.I. Malis
The Tax Policy of the Republic of Crimea: Reducing Subsidization of the
Region, p. 112-122
Abstract
Currently, the Republic of Crimea is a subsidized region, and for objective reasons the level of subsidization will not be significantly reduced in the near future, as a result of which the implementation of the indicators reflected in the Law of the Republic of Crimea "On the Strategy of Socio-economic Development of the Republic of Crimea until 2030" does not seem realistic. At the same time, the tax policy of the republic is developing measures to increase its own budget revenues, and they are already giving their positive results. Undoubtedly, the expansion of the revenue side of the regional budget should be based on increasing the manageability of the tax potential, which is formed taking into account the indicators of the dynamics of economic development. The unique geographical, resource and climatic conditions of the Republic of Crimea allow for a widely diversified economic development policy and, accordingly, regional tax policy. Based on the peculiarities of the territorial location and a large number of health resort and recreational complexes, it is possible to form a program of short-term measures to increase the tax base under special tax regimes, personal income tax and other taxes due to the cascade effect of business activity of individuals and SMEs. Full or partial solution of the problem of seasonality of active use of tourist infrastructure will increase the tax potential and, in turn, reduce subsidized dependence on the federal center. The management of tax potential should certainly be based on the analysis of the level of tax burden due to the fact that excessive tax burden can lead to the effect of reverse increase in tax payments.
Keywords: Republic of Crimea, budget, tax incentives, gross regional product, profit, small business, tax potential
JEL: G28, D63, D78
For citation: Kiviko I.V., Malis N.I. (2023). The Tax Policy of the Republic of Crimea: Reducing Subsidization of the Region. Financial Journal, 15 (4), 112–122 (In Russ.). 
https://doi.org/10.31107/2075-1990-2023-4-112-122.
© Kiviko I.V., Malis N.I., 2023

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A.Yu. Mikhaylov, V. Khare, S. E. Uhunamure, Ts. Chang, D.I. Stepanova
Bitcoin Price Short-term Forecast Using Twitter Sentiment Analysis
, p. 123-137
Abstract
The goal of the article is to develop an innovative forecasting approach based on the Random Forest and fuzzy logic models for predicting crypto-asset prices (IFSs, PFSs, q-ROFSs). The baseline forecast horizon is 90 days (additional horizons are 30, 60, 120 and 150 days), which allows to estimate the significance of the chosen features and the impact of time on the forecast accuracy. The paper proposes an optimal data selection approach for the Random Forest and fuzzy logic models to improve the prediction of the daily closing price of Bitcoin, using online social network activity, trading parameters, technical indicators, and data on other cryptocurrencies. This paper utilizes a tree-based machine learning prediction and a fuzzy logic model for Bitcoin. The article attempts to prove that automated Bitcoin forecasting using machine learning algorithms is very effective for the cryptocurrency market. Nevertheless, the latter is characterized by high volatility, significant rate hikes of the most liquid cryptocurrencies (mainly Bitcoin). Therefore, investments in cryptocurrencies, especially long-term ones, involve significant risks. This defines the paper’s significance for investors and regulators. As shown by simulation studies of data selection approaches generalizing the accuracy performance of the Random Forest and fuzzy logic models to real preferences of forecasting, even under significant noise measurements, the proposed selection approach leads to fast convergence of estimates. The accuracy of the model’s results exceed 85.21 on a 90-day time horizon.
Keywords: cryptocurrency, investor behavior, Bitcoin, inflation, Twitter sentiment
JEL: D53, E31, E44, F21
For citation: Mikhaylov A.Yu. et al. (2023). Bitcoin Price Short-term Forecast Using Twitter Sentiment Analysis. Financial Journal, 15 (4), pp. 123–137.
https://doi.org/10.31107/2075-1990-2023-4-123-137.
© Mikhaylov A.Yu. et al., 2023

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Financial Journal Vol.15 No.3 2023

CONTENTS

S.D. Shatalov, M.R. Pinskaya, V.A. Prokaev, K.N. Tsagan-Mandzshieva
The Rent Taxation Concept for Solid Minerals Extraction and Recovery
, p. 9-24
Abstract
The article considers the conceptual approaches to the taxation of natural resource use. The purpose of the article is to identify the governmental tax risks in the implementation of various scenarios of mining rent withdrawal and to substantiate the methodology of resource taxation in extraction and processing of solid minerals, based on the principle of tax justice. The authors reveal the factors of tax risks for the state in exercising its sovereign right to the mining rent. The article formulates the requirements to the tax system, the observance of which will allow to consider the factors of the state tax risks. Advantages and disadvantages of certain fiscal payments for extraction of mineral raw materials are determined. It is shown that the resource tax should be based on the present value, calculated as the net present value of the investor for the entire lifetime of the project. The authors propose a mining rent taxation mechanism, which would increase budget revenues while maintaining the incentives for mining companies to invest in exploration. The main forks in the design of such a rent income tax are shown.
Keywords: mining rent, mineral extraction tax, additional income tax, multicomponent complex ore, solid minerals
JEL: D60, E20, L10, Q38
For citation: Shatalov S.D, Pinskaya M.R., Prokaev V.A., Tsagan-Mandzshieva K.N. (2023). The Rent Taxation Concept for Solid Minerals Extraction and Recovery. Financial Journal, 15 (3), 9–24 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-9-24.
© Shatalov S.D, Pinskaya M.R., Prokaev V.A., Tsagan-Mandzshieva K.N., 2023

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D.Yu. Fedotov
Fiscal Role of Special Duties on Imported Goods
, p. 25-40
Abstract
The article considers the measures of customs regulation of foreign trade activities used in the world practice. Due to the liberalization of world trade, most countries reduce the use of customs tariff regulation measures, compensating them with the introduction of special duties on imported goods. The purpose of the study is to analyze the international practice of applying those special duties. Analysis of the application of special duties to and against the EAEU countries was carried out, and the implementation of the fiscal function of special duties was examined in particular. The hypothesis of the study is the assumption that special duties play an insignificant fiscal role in the state budget revenues. Analysis of the practice of applying special duties was conducted on the basis of data from the World Trade Organization and the Treasury bodies of the Russian Federation. In the course of the study, the economic and logical methods of comparison, detailing, as well as the balance method were actively used. It was found that anti-dumping duties, which account for 2/3 of all special duties, are most often used to regulate the import of foreign goods. Russia applies 25 protective measures to goods imported from other countries, and 93 protective measures are applied to Russian goods. Special duties are currently insignificant in revenues of the federal budget of Russia; in 2021 their ratio with the receipt of import customs duties amounted to 1.5%. At the same time, there is a steady growth in the receipt of special duties: over the past 10 years, it has increased 13-fold. To increase the fiscal role of special duties, it is advisable to change the order of their distribution among the EAEU countries, so that the entire amount of special duties on imported goods is credited to the budget of the country that initiated their introduction.
Keywords: non-tariff regulation of foreign trade, special duties, budget revenues, anti-dumping measures, countervailing measures, import customs duties
JEL: F13, H87
For citation: Fedotov D.Yu. (2023). Fiscal Role of Special Duties on Imported Goods. Financial Journal, 15 (3), 25–40 (In Russ.).
https://doi.org/10.31107/2075-1990-2023-3-25-40.
© Fedotov D.Yu., 2023

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V.V. Gromov
Assessing the Complementarity of Preferential Tax Regimes in the Sakhalin Region
, p. 41-58
Abstract
State regulation of the anthropogenic impact on nature, including the policy of limiting greenhouse gas emissions, makes it necessary to support those enterprises that are willing to invest in climate projects. The relevance of incentives in this field is confirmed by the task set by the Arctic Council chaired by Russia at the Research and Training Conference on Climate Change and Permafrost Thawing 2023, namely to find reasonable, practical solutions for adapting the global economy to such changes. In the area of taxation, there is a solution prepared by the Russian Ministry of Economic Development willing to provide a package of tax benefits for investors. According to the draft, they should be exempted from paying VAT and income tax. At the same time, the variety of previously introduced preferential ‘investment’ tax regimes calls into question the rationality of new tax incentives due to the assumption of their redundancy. The fact is that they have similarities in the basic idea of support aimed at the growth of regional investment activity. For this reason, the purpose of the article is to answer the following questions: Is it really worthwhile to expand the number of tax regimes once again? Is it possible to use existing incentives instead of introducing new ones? To achieve the purpose, we rely on the results of comprehensive, comparative analysis of the developed incentives and the current tax preferential regimes on the example of the Sakhalin region. It stands out among other regions of Russia by its carbon-neutral pilot project and the greater number of preferences already enjoyed by investors, so we can provide representative and practically significant results. The hypothesis of the study is based on the concept of complementarity, meaning that the newly developed tax incentives will contribute to the complexity of the Russian tax system but will not cross the scope of the other mentioned tax regimes. The results show that climate projects have their own specifics in terms of objectives as well as areas of investment that require special approaches in tax policy, since investors create a useful economic effect in the form of reducing greenhouse gas emissions rather than producing goods, and no taxable profit is generated until the investor profitably sells carbon units in the market.
Keywords: climate policy, experiment, greenhouse gas emissions, tax incentive, tax policy, tax regime, Sakhalin region
JEL: E62, Q54, R11
For citation: Gromov V.V. (2023). Assessing the Complementarity of Preferential Tax Regimes in the Sakhalin Region. Financial Journal, 15 (3), 41–58 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-41-58.
© Gromov V.V., 2023

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A.A. Pugachev
Impact of the Level and Structure of the Tax Burden on Citizens Inequality
, p. 59-77
Abstract
The purpose of this study is to determine the impact of the structure and level of the tax burden on inequality of citizens, using the example of the countries of the Organization for Economic Cooperation and Development (OECD). The hypothesis was that the structure and level of the tax burden affect citizens inequality. This hypothesis was tested using a correlation and regression analysis of the dependence of citizens inequality level on the tax burden structure by decomposing it into separate taxes. The Gini coefficient and the share of income of the tenth decile group were chosen as indicators of inequality. The calculations were carried out using the Data Analysis in MS Excel for the years 2000 and 2020 on the basis of statistical data from the World Bank and OECD. The data set formed for the study contains about 1 thousand indicators. The share of all taxes in GDP has the closest relationship with inequality: it explains the dynamics of the level of inequality by 53–74%. The severity of the tax burden has a more significant impact on inequality than its structure. The decrease or increase in the share of a tax in the structure of the tax burden characterizes the weakening or strengthening of the impact of this tax on inequality. The change in the structure of the tax burden in OECD countries in 2020 compared to 2000 contributed to the smoothing of citizens inequality by increasing the share of income tax while reducing the share of indirect taxes. The relationship between the indicators of tax burden and inequality is non-linear. It fits into the concept of A. Laffer. Establishing the type of this dependence will make it possible to solve the problem of optimizing the structure of tax burden in order to smooth inequality.
Keywords: inequality of citizens, income tax, indirect taxes, Gini coefficient, income of the tenth decile group, OECD countries
JEL: H21, H24
Funding: The Research was prepared supported by the grant of the Russian Science Foundation No. 23-28-00365, https://rscf.ru/en/project/23-28-00365/.
For citation: Pugachev A.A. (2023). Impact of the Level and Structure of the Tax Burden on Citizens Inequality. Financial Journal, 15 (3), 59–77 (In Russ.).
https://doi.org/10.31107/2075-1990-2023-3-59-77.
© Pugachev A.A., 2023

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I.Yu. Arlashkin
On the Possibilities of Tax Decentralization in Russia
, p. 78-90
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.
Keywords: redistribution of tax revenues, tax decentralization, fiscal federalism, regional budgets, balance of budgets
JEL: H71, H73, H77
Funding: the article was written on the basis of the RANEPA state assignment research program.
For citation: Arlashkin I.Yu. (2023). On the Possibilities of Tax Decentralization in Russia. Financial Journal, 15 (3), 78–90 (In Russ.).
https://doi.org/10.31107/2075-1990-2023-3-78-90.
© Arlashkin I.Yu., 2023

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T.V. Tischenko
International Practice of Tax Expense Identification
, p. 91-103
Abstract
While it is generally accepted in foreign jurisdictions to treat tax expenditures as foregone budget revenues, due to the application of certain provisions of the tax code, significant cross-country differences emerge in determining which of these can be recognized as deviations and which as the norm. There is no consensus on which approaches can be recognized as best practice. The topic of methods for determining tax expenditures remains relevant. The purpose of the study is to identify the principles and criteria of tax expense accounting. Theoretical basis of the study consists of legal acts and approaches to definition of normative tax structure. The research is conducted with the use of empirical methods, including synthesis and comparative analysis of cases. As a result of the study a classification of tax preferences was developed and two methods of tax expense identification, normative and conditional, were proposed. A certain correlation between the concepts of tax expenses and methods of their identification was revealed. The international practice of attributing preferences to tax expenses was reviewed, which helps to understand the differences in the identification methods suggested by the author. The conclusion on advantages and limitations of the use of the two methods of tax expense accounting is made.
Keywords: tax expenditure, tax preferences, normative and conditional methods of identification
JEL: H24, H87
Funding: the article was prepared as part of the research work in RANEPA.
For citation: Tischenko T.V. (2023). International Practice of Tax Expense Identification. Financial Journal, 15 (3), 91–103 (In Russ.).
https://doi.org/10.31107/2075-1990-2023-3-91-103.
© Tischenko T.V., 2023

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M.Yu. Malkina, R.V. Balakin
The Relation of Financial and Industrial Stresses to Monetary Policy Parameters in the Russian Economy
, p. 104-121
Abstract
The paper examines the relationship between financial and industrial stresses in the Russian economy in 2006–2019, mediated by the monetary policy of the state. Stress indices are constructed on the basi of a number of financial market and industrial sector indicators of the Russian economy. These variables are aggregated using the principal component analysis. Stress indices are calculated as the moving difference between the standard deviation and the mean value of the first principal component. The graphical and correlation analysis confirms that industrial stress in the Russian economy grows during financial crises, accompanied by an increase in credit interest rates (including the key rate) and the scale of refinancing of credit institutions by the Bank of Russia. Based on the construction of ARDL models, we obtained convincing evidence of the positive impact of both a short-term increase in the key interest rate and a longer increase in the scale of refinancing of credit institutions by the Bank of Russia on the reduction of financial and industrial stresses in the Russian economy, which, however, appears in different time intervals. We concluded that the combined management of industrial and financial stresses, taking into account their interaction and sensitivity to different instruments, requires the search for the optimal combination of monetary regulation methods. The results obtained may be useful in conducting a prudent monetary policy in periods of financial instability.
Keywords: Russian economy, financial stress index, industrial stress index, monetary policy, key rate, refinancing of credit institutions by the Bank of Russia
JEL: G01, C58, E44
Funding: The study was supported by the Russian Science Foundation grant No. 23-28-00453, https://rscf.ru/project/23-28-00453/
For citation: Malkina M.Yu., Balakin R.V. (2023). The Relation of Financial and Industrial Stresses to Monetary Policy Parameters in the Russian Economy. Financial Journal, 15 (3), 104–121 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-104-121.
© Malkina M.Yu., Balakin R.V., 2023

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Z.Kh. Srojiddinova
Public Finance System: Management Reform, Directions of Improvement in the Republic of Uzbekistan
, p. 122-142
Abstract
The article is devoted to the reform of public finance management in the Republic of Uzbekistan. Its informative basis consisted of laws, by-laws and a large body of empirical information material on the country’s public finance system from 1991 to the present, as well as on its development in accordance with the directions and measures defined by two strategies for reforming public finance management of the Republic of Uzbekistan (2007, 2020). The article shows its relevance, purpose and objectives, describes stages of reforming and development of the public finance system of Uzbekistan, as well as achieved results, problems and directions of its further improvement.
Keywords: public finance, public finance management reform, fiscal transparency, financial control, initiative budgeting, mahalla, mahalla budget, medium-term planning, strategic planning
JEL: E6, H6, H7
For citation: Srojiddinova Z.Kh. (2023). Public Finance System: Management Reform, Directions of Improvement in the Republic of Uzbekistan. Financial Journal, 15 (3), 122–142 (In Russ.). https://doi.org/10.31107/2075-1990-2023-3-122-142.
© Srojiddinova Z.Kh., 2023

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Financial Journal Vol.15 No.2 2023

CONTENTS

M.E. Kosov, A.Yu. Chalova, R.G. Akhmadeev, E.V. Golubtsova
Federal Budget and State Fiscal Policy: Macroeconomic Adaptation until 2025, p. 8-26
Abstract
The article examines the modern concept of the state fiscal policy in Russia and the possibilities of its implementation through the federal budget in the face of new global challenges. To this end, the authors assessed the resource base of the federal budget of the Russian Federation, as well as the adequacy of measures of fiscal regulation of the current economic situation. In this regard, the authors evaluated the feasibility of the initial macroeconomic indicators underlying the parameters of the federal budget for 2023–2025, primarily its revenues, and the risks of their possible change. The authors associate the key risks of failure to achieve the stated goals of the budget and tax policy for the period 2023–2025 with a sharp reduction in the resource base of the federal budget, especially its oil and gas revenues in the context of worsening geopolitical tensions and increasing sanctions pressure on the Russian Federation. The study focuses on the justification of approaches to minimize the negative consequences of external shocks both for the subjects of the Russian economy and for public finances. In the course of the study, the authors used the methods of statistical data processing, factor modeling, regression analysis and expert evaluation. The scientific novelty of the study lies in the assessment of the impact of new global challenges on the balance of the Russian federal budget and substantiation of approaches to transform fiscal regulation measures in response to these challenges. The practical significance of the study lies in the possibility of using its results in the development of state fiscal policy in the medium term under the conditions of dramatic changes in the scenario conditions of formation of the federal budget.
Keywords: federal budget, fiscal policy, fiscal expansion, tax spending, oil and gas revenues, factor model, budget rules
JEL: E62
For citation: Kosov M.E., Chalova A.Yu., Akhmadeev R.G., Golubtsova E.V. (2023). Federal Budget and State Fiscal Policy: Macroeconomic Adaptation until 2025. Financial Journal, 15 (2), 8–26 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-8-26
© Kosov M.E., Chalova A.Yu., Akhmadeev R.G., Golubtsova E.V., 2023

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A.E. Abramov, A.A. Pershin, M.I. Chernova
Measuring the State Sector and Assessing Its Effectiveness: Approaches and Implications, p. 27-46
Abstract
Despite the increasing role of the state sector in the economies of many countries, the criteria and approaches to comparative analysis and evaluation of the performance of state-owned enterprises are still ambiguous, as are the methods for cross-country comparisons of the scale of state presence in the economy. The purpose of the article is to systematize the main approaches to measurement of the size of the state sector using Russian economy as an example, as well as to substantiate the significance of this information in assessing the performance of companies with different forms of ownership in the investment and managerial decision-making process. The problems of the information environment, such as the fragmentation of data, incomplete publication of company reports, and the specifics of national databases in different countries, complicate and distort empirical research. Meanwhile, there are significant differences in the performance of state-owned and private companies, as well as in their investment attractiveness to investors in the financial market. International approaches to solving these problems consist in the formation of consolidated and unified databases, inclusion of stateowned companies in the system of national accounts, and creation of guidelines on uniform principles of transparency and accessibility of financial reports. Given the growing restrictions on access to information along with the trend towards the growth of the state sector in Russia, there is an increasing need to develop a unified methodology to measure its scale and assess its impact on the economy, investment and stock market. The proposed methodology and the obtained empirical results allow not only to comprehensively assess the contribution of the state sector in creating GDP and increasing the capitalization of the stock market, but also to conduct comparative studies of performance indicators and stock returns in companies with different ownership structure, as well as an international empirical analysis of the state sector impact on the economies and the financial and economic performance of companies.
Keywords: state-owned enterprises, state sector, assessment methods, developing countries, scale of state sector
JEL: D20, D60, G38, H82, H83, L30, P20
For citation: Abramov A.E., Pershin A.A., Chernova M.I. (2023). Measuring the State Sector and Assessing Its Effectiveness: Approaches and Implications. Financial Journal, 15 (2), 27–46 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-27-46
© Abramov A.E., Pershin A.A., Chernova M.I., 2023

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A.V. Maslov, K.V. Shvandar
New International Projects on the Use of Central Bank Digital Currencies in Transforming Cross-border Settlements, p. 47-58
Abstract
In 2023, digital ruble is expected to appear in Russia. It is planned to allow for delay-free settlement of transactions with digital financial assets, automation of the use of smart contracts, and tracking of budget calculations. The Ministry of Finance plans to use the Russian digital currency in budget settlements. The first phase of the experiment to use a digital ruble has already involved a number of banks that are testing the opening of digital wallets on the Bank of Russia platform: deposits, transfers between citizens, as well as payments for goods and services. However, the question remains whether the digital ruble in today's environment will help solve the most important task — to facilitate crossborder payments. While the stage of development and testing is underway, it is necessary to pay particular attention to the issues of risk management, system stability, the peculiarities of interaction with other forms of fiat money, and to ensure the use of digital ruble in cross-border settlements. This article discusses test projects which are aimed at studying the functioning of the main channels of digital transactions, identification of problem areas and improvement of modern technologies in the field of cross-border payments. The purpose of this article is not an in-depth analysis of the results of any particular project, but a brief description of a number of projects to illustrate the activities of central banks of different countries in this area. Nor is it intended to compare these projects and draw conclusions about their results. An example of a more thorough study of some projects in order to use existing experience for new projects is the Report of the National Bank of Kazakhstan “Digital Tenge Project” (2021). All these projects are usually initiated by central banks, as well as international organizations and global financial market participants actively involved in international payment relations. The study of the results achieved during the testing of the projects give us an understanding of how settlements in CBDCs, including cross-border ones, may develop in the near future.
Keywords: cross-border payments, central bank digital currencies, central banks, international calculations
JEL: G21
For citation: Maslov A.V., Shvandar K.V. (2023). New International Projects on the Use of Central Bank Digital Currencies in Transforming Cross-border Settlements. Financial Journal, 15 (2), 47–58 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-47-58
© Maslov A.V., Shvandar K.V., 2023

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A.O. Volodina, M.B. Trachenko
ESG Investment Profitability in Developed and Emerging Markets with Regard to the Time Horizon, p. 59-73
Abstract
The development of the ESG (Environmental, social, and governance) concept has led to the rapid spread of financial instruments for investing in sustainable development on all continents. The purpose of the article is to study the attractiveness of sustainable investing in the developed and emerging markets of America, Europe and Asia, in particular, to conduct a comparative analysis of the returns of market indices based on ESG criteria and those of indices that do not take them into account. Particular attention is paid to the duration of the investment period: the authors studied profitability on time intervals from one to five years. The object of the study is stock indices. The subject of the study is profitability of ESG-oriented and ESG-neutral indices. A comparative analysis of 28 market indices, 15 of which were formed with ESG indicators in the period from 2013 to 2022 led to the conclusion that it is advisable to invest in ESG index funds in both developed and emerging markets, since in more than 50% of cases, the return of ESG indices is higher than that of non-ESG indices. Investments in ESG indices over a longer time horizon tend to have higher returns on invested capital than traditional investments in non-sustainable indices. Analysis of European stock market returns has shown insufficient efficiency of ESG investments and requires additional analysis of the factors that have influenced this. A promising direction for further research is also the analysis of the mutual influence of stock markets of developed and developing countries on financial ESG instruments and indices. The applied value of the study lies in the possibility of using the results of the analysis in the reorientation of Russian investors in the face of sanctions pressure on stock markets in the Asia-Pacific region.
Keywords: ESG, profitability, stock indices, exchange-traded funds, sustainable development, investment
JEL: G32
For citation: Volodina A.O., Trachenko M.B. (2023). ESG Investment Profitability in Developed and Emerging Markets with Regard to the Time Horizon. Financial Journal, 15 (2), 59–73 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-59-73
© Volodina A.O., Trachenko M.B., 2023

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S.I. Chuzhmarova, A.I. Chuzhmarov
Tax Incentives for Investments in Green Technologies: Experience of Selected Countries
, p. 74-89
Abstract
The relevance of the research topic is due to the need to solve the problems of fiscal support for investment in the context of increasing environmental and climate risks that push countries to form the fiscal policy under the influence of the climate agenda, capable of ensuring the financial interests of governments and investors. The main objective of the article is to characterize the processes of transformation of national fiscal policy under the influence of the global climate agenda and tax incentives for investments in green technologies. The authors analyze the sources of investment financing mobilized by developed countries, the main of which are carbon taxes and energy taxes. Changes in the tax policy of the Russian Federation aimed at stimulating the best available technologies and R&D are exposed. The following conclusions are made. Developed countries are actively implementing fiscal measures to support investment in green technologies; the topic of tax transformation has moved from a discussion format to the plane of practical application, although not always successful. Today countries introduce new incentives, use preferential environmental taxation of innovative activities of the energy-intensive sector and voluntary tax agreements of authorities with investment companies, form ratings based on unified comparable indicators. The Russian Federation lags behind developed countries in mobilizing financial resources for green economic growth and in the development of fiscal tools that have proven effective. The problem today is tax regulation of technological development, which covers investment incentives and disincentives to environmental pollution. The next promising action could be the formation of a financial basis for green economic growth, investment in green technology.
Keywords: tax incentives, tax breaks, green technology, innovation, investment
JEL: H22, H61
Funding: the article was prepared within the framework of the research work of the state assignment of Syktyvkar State University named after Pitirim Sorokin.
For citation: Chuzhmarova S.I., Chuzhmarov A.I. (2023) Tax Incentives for Investments in Green Technologies: Experiences of Selected Countries. Financial Journal, 15 (2), 74–89 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-74-89
© Chuzhmarova S.I., Chuzhmarov A.I., 2023

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Ju.A. Tarasova, E.I. Lyashko
The Influence of Institutional Factors on Green Bond Issuance: a Look Back to 2021
, p. 90-102
Abstract
ESG factors are becoming an integral part of financial relationships, thereby increasing the demand for responsible financing instruments. Thanks to the latter, an investor can not only get the expected rate of return, but also contribute to the achievement of sustainable development goals. Green bonds, which are an example of such an instrument, help to raise financing for green activities and projects. By the end of 2021, the total amount of issued green bonds exceeded the record $1.5 trillion mark. The crisis year of 2022 contributed to a revision of many ESG criteria and the relevance of green agenda as a whole. Such changes can have serious consequences for the green bond market, but their analysis is a matter for the future. The main purpose of the research is to analyze the determinants that have influenced green bond issuance in European countries in 2021. The authors find a significant relationship between institutional factors and the volume of issued green bonds using correlation and regression analysis on a sample of European countries. Among institutional factors, the most significant are environmental regulation and the level of sustainability development.
Keywords: ESG factors (principles), determinants of bond issuance, regulatory mechanisms, sustainable development
JEL: C51, G15, G23
For citation: Tarasova Yu.A., Lyashko E.I. (2023). The Influence of Institutional Factors on Green Bond Issuance: A Look Back to 2021. Financial Journal, 15 (2), 90–102 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-90-102
© Tarasova Yu.A., Lyashko E.I., 2023

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Yu.A. Spletukhov
Environmental Insurance: Insurable Risks and Losses Subject to Compensation
, p. 103-115
Abstract
The article discusses issues related to the implementation of environmental insurance. Its purpose is to consider a number of problems, the solution of which can contribute to increasing its role in the compensation of losses caused by environmental pollution. To this end, it is proposed to expand the circle of legal entities obliged to provide financial guarantees of compensation for such losses and to use environmental insurance as one of the mechanisms of such guarantees. The effectiveness of guarantees provided by concluding insurance contracts can be ensured by regulating its conditions in a separate regulatory act. In turn, the preparation of the latter requires consideration of some aspects related to the mechanism of conducting environmental insurance. The article, in particular, characterizes the types of environmental pollution and, on this basis, draws conclusions about the possibility, expediency and specificity of insurance in relation to each of them. The insured event in environmental insurance contracts, according to the author, should be the consequences of accidental, sudden and unintentional pollution, i.e., those caused by an accident, disaster or other emergency events of man-made or natural nature. Another problem considered in the article is related to the range of losses that should be included in the scope of insurers’ liability under the insurance contracts concluded in order to provide financial guarantees of compensation for damage caused by environmental pollution. According to the author it should include losses caused by the insured to other legal entities and individuals in the form of damage to natural objects and associated with the implementation of measures aimed at reducing the damage caused by the insured event. A significant place in the article is given to the peculiarities of assessment of damage to be compensated by insurance companies. First of all, it concerns how to calculate the losses caused by damage directly to the natural environment. The results obtained in this part of the article include, in particular, the conclusion that when choosing a method of assessment of such damage one should mainly take into account the amount of costs for environmental restoration.
Keywords: environmental insurance, insurance risks, losses, reimbursable damage
JEL: G22
For citation: Spletukhov Yu.A. (2023). Environmental Insurance: Insurable Risks and Losses Subject to Compensation. Financial Journal, 15 (2), 103–115 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-103-115
© Spletukhov Yu.A., 2023

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O.V. Obukhova, A.S. Bogomazova
General Expenses in the Provision of Public Health Services in Hospitals
, p. 116-129
Abstract
Specific expenses for general business needs as a part of the basic standard cost rate for a public service in the healthcare sector reflect the costs for the infrastructure facility itself, including the area of subdivisions of medical organizations in which a public service is provided, the conditions for providing medical care, and the capacity of the medical organization. Calculation of costs for this part of the basic rate is usually carried out by the method of the most effective institution or by the median method. This leads to high differentiation of the value of the basic standard cost for the corresponding public service, and to artificial and unreasonable use of correction coefficients individualizing the costs of medical organizations, which contradicts to the state policy on control of efficiency of the use of budgetary funds. The purpose of the study is to develop proposals for changing the methodology for accounting general expenses in the structure of the standard of financial costs for public health services on the example of the state service “Specialized medical care (except for high-tech medical care), not included in the basic program of compulsory medical insurance, according to the profile Phthisiology”, provided in hospital conditions.
Keywords: general business expenses, public service, state assignment, healthcare, state medical organizations
JEL: H51, H54, H61
For citation: Obukhova O.V., Bogomazova A.S. (2023). General Expenses in the Provision of Public Health Services in Hospitals. Financial Journal, 15 (2), 116–129 (In Russ.). https://doi.org/10.31107/2075-1990-2023-2-116-129
© Obukhova O.V., Bogomazova A.S., 2023

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Scientific periodical

ISSN 2658-5332