Scientific periodical

ISSN 2658-5332

Financial Journal № 2(48) March-April 2019

CONTENTS

V. V. Gromov, N. S. Milogolov
Simplified Taxation System and Unified Tax on Imputed Income: Objectives, Problems, Long-term Vision, p. 9-21
Abstract
One of the main goals of the Russian tax policy for recent years is to find some opportunities to reduce the tax burden on small companies. Increase of tax incentives is usually associated with the growth of small business, but the pace of development of this economy sector in Russia is still low and the tax system loses its due degree of simplicity and transparency. Therefore, the subject of the study is the problem of small business taxation in Russia. The article points out that special tax regimes, such as the simplified taxation system and the unified imputed income tax for certain types of activity, have lost their targeted nature to date, since their development has no internal logic and is carried out mainly under the current economic challenges without taking into account the long-term effects of the measures taken. Against this background the purpose of the study is to develop recommendations for improvement of above mentioned special tax regimes. The authors conclude that, on one hand, regular increases in turnover thresholds for the purposes of simplified taxation system is an unpromising tax policy direction and, on the other hand, granting access to the taxation system in the form of a unified tax on imputed income regardless of a taxpayer’s turnover defeats partially the objectives of small business support. In common, this creates the conditions for abuse and therefore requires revision of certain provisions of the Russian tax legislation.
Keywords: small business, tax incentives, simplified taxation system, unified tax on imputed income, special tax regimes, tax policy, tax system, business fragmentation, tax abuse.
JEL: E62, H25, K34
For citation: Gromov V.V., Milogolov N.S. Simplified Taxation System and Unified Tax on Imputed Income: Objectives, Problems, Long-term Vision. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 9–21 (In Russ.). DOI: 10.31107/2075-1990-2019-2-9-21
https://doi.org/10.31107/2075-1990-2019-2-9-21

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A. V. Korytin, T. A. Malinina
International Experience in Taxation of Business Personal Property, p. 22-36
Abstract
Various and ambiguous changes in business personal property taxation in Russia in 2013–2018 demonstrate the relevance of a careful analysis of this problem, including the international experience context. The article considers business property tax characteristics in the OECD and BRICS by means of the comprehensive tax law analysis with regard to these countries. The authors emphasise the experience of the countries, which treat (or treated earlier) elements of the personal property taxation. In these cases the authors consider tax design in detail and establish that only in Russia, Japan and the US personal property tax is widely treated. Furthermore, there is a global trend towards taxation of the only real property. Thus the planned business personal property tax abandonment in Russia is not just a tax exemption, it is a transition to the generally accepted and reasonable tax standard.
Keywords: business property tax, fixed assets, personal property taxation, real property taxation.
JEL: H25
For citation: Korytin A.V., Malinina T.A. International Experience in Taxation of Business Personal Property. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 22–36 (In Russ.). DOI: 10.31107/2075-1990-2019-2-22-36
https://doi.org/10.31107/2075-1990-2019-2-22-36

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O. V. Bogacheva, O. V. Smorodinov
Major Aspects of Organization of Public R&D Funding in OECD Countries, p. 37-50
Abstract
The article focuses on several challenges that OECD countries are currently facing when planning and providing public funding of R&D sphere. These issues are analyzed within more general framework — increase of efficiency of public spending of R&D and Science, Technology and Innovation (STI) sector as a whole. The authors examine application of public R&D funding based on socio-economic classification (Frascati Manual 2015), optimal choice of forms and instruments of R&D public funding, which is linked with desired outputs and socio-economic outcomes, and methodologies of efficiency evaluation of public funding of R&D in OECD. Moreover, the authors draw the conclusion about marked extension of the list and variety of forms, methods and instruments of R&D public funding after 2007-08 global financial crisis. In addition to traditional institutional (block grants) and project financing, new form — Research Excellence Initiative (REI) — has evolved. It combines features of institutional core funding (longtermed, program format, etc.) with competitive organization and outcome orientation. It is especially efficient and effective when the focus is made on exceptional quality of research, interdisciplinary and multi-university studies. Integration of performance budgeting elements in institutional funding (e.g., performance contracts) is another noticeable trend in the evolution of public financing in OECD countries during the last decade. At the same time, the certain limits of project-based financing and application of competitive mechanisms in organization of R&D public funding became more evident, because of shorter terms and more risks associated with such projects. One more conclusion refers to wider application of holistic approach to efficiency evaluation of R&D public funding in OECD countries,  when efficiency is evaluated at every stage of R&D process. Results of the research can be used in spending reviews in R&D or STI area as well as in recommendations for increasing efficiency of public governance of these areas.
Keywords: Efficiency of public R&D expenditures, institutional and project-based funding, Research Excellence Initiatives, functional classification, Frascati Manual.
JEL: H50, O30, O38
For citation: Bogacheva O.V., Smorodinov O.V. Major Aspects of Organization of Public R&D Funding in OECD Countries. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 37–50 (In Russ.). DOI: 10.31107/2075-1990-2019-2-37-50
https://doi.org/10.31107/2075-1990-2019-2-37-50

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V. V. Vagin, N. A. Shapovalova, N. V. Gavrilova
The Monitoring of Initiative Budgeting Development in Russian Regions: Methodology and Practice of Organization, p. 51-64
Abstract
The article presents an approach to monitoring of the initiative budgeting practices implementation. Within this monitoring the data is collected from the regional authorities and used in the framework of the Procedure for Interaction between the Ministry of Finance of the Russian Federation and the financial authorities of the constituent entities of the Russian Federation on the formation of the Report on Best Practices for Initiative Budgeting Development in the Subjects of the Russian Federation and Municipalities. Today this monitoring is the only federal source of data on how initiative budgeting practices are developed in Russia, therefore it solves the problems of not only studying, but also scaling the best practices of initiative budgeting in the country. The article describes the evolution of monitoring since 2015, its methodology, quantitative and qualitative indicators, characteristics and objectives of the transition from monitoring to evaluation of the effectiveness of such practices. In this study the authors analyze the data for 2017, create the typology of practices of subjects of the Russian Federation in the context of the applied citizen participation mechanisms, identify the most popular types of public infrastructure projects chosen by citizens. Furthermore, the article defines the problems associated with monitoring, in particular the inability to verify the real participation of citizens through the desk research methods.
Keywords: participatory budgeting, initiative budgeting, citizen engagement, public participation, direct democracy, monitoring of the initiative budgeting development.
JEL: H72, H76, H79
For citation: Vagin V.V., Shapovalova N.A., Gavrilova N.V. (2019). The Monitoring of Development Initiative Budgeting in Russia’s Regions: Methodology and Practice of Organization. Finansovyj žhurnal — Financial Journal, no. 2, pp. 51–64 (In Russ.). DOI: 10.31107/2075-1990-2019-2-51-64
https://doi.org/10.31107/2075-1990-2019-2-51-64

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S. S. Lazaryan, I. V. Nikonov, A. I. Votinov, E. A. Gubkova
International Practice of Fiscal Rules: Formation of Modern Approaches, p. 65-80
Abstract
According to a range of theoretical studies, implementation of fiscal rules implying numerical limits on fiscal aggregates has some advantages over the discretionary measures. Thus, their use leads to the improvement in deficit management and to the increase of macroeconomic stability. Moreover, recent empirical studies on the effect of fiscal rules support the theory. Namely, their use has a positive influence on long-term economic growth and government finances. At the same time, actual experience with fiscal rules has not always been successful, therefore, the rules were exposed to frequent changes and improvements. The article discusses the evolution of the worldwide approaches to elaborate a system of fiscal rules. The main stages of their development are highlighted and the reasons for the observed modifications in fiscal rule framework are analyzed. To characterize the recent tendencies in fiscal rule design the data of international institutions, e.g. International Monetary Fund and World Bank, as well as the national legislation of the countries applying fiscal rules are used. The research shows the increasing popularity of expenditure growth rules tending to be applied in combination with debt and budget balance rules. The complication of debt rules is also registered. The other notable finding is the expanding use of the rules that incorporate an adjustment for economic cycles, which shows the governments’ endeavor to conduct countercyclical fiscal policy. In addition, the rules has become more flexible due to the introduction of escape clauses and autocorrection mechanisms. Finally, the control over compliance with the prescribed limits has become more stringent.
Keywords: fiscal rules, fiscal policy, government finance, government debt sustainability, economic cycles, countercyclical policy, policy effects.
JEL: E62, F01, H60
For citation: Lazaryan S.S, Nikonov I.V., Votinov A.I., Gubkova E.A. International Practice of Fiscal Rules: Formation of Modern Approaches. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 65–80 (In Russ.). DOI: 10.31107/ 2075-1990-2019-2-65-80
https://doi.org/10.31107/2075-1990-2019-1-65-80

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S. M. Ivashchenko
DSGE Models: Problem of Trends, p. 81-95
Abstract
There are trends (deterministic and stochastic) in the most macroeconomic time series. Dynamic Stochastic General Equilibrium (DSGE) models have to take into account these data features. Data detrending is one of the popular approaches that imply exogenous (to the model) decomposition of time series into cycle and trend components, and dropping of the last one. The aim of the paper is to analyze the consequences of such approach. This paper shows that the methods described above distort the model, save some specific conditions. If one of the following conditions remains, then detrending disturbs the model unsystematically. Trend is eliminated from each time series separately. One variable has different nonlinear transformation than the other (example: one variable is in-logs while the other in-levels). Correlation of trend divergence (i.e. difference between trends of one and another variable) with exogenous shocks is incorrect (correct correlation can be nonzero). If trends are dropped from the model, then detrending distorts the model systematically. The author presents numerical results of detrending analysis and creates DSGE model. Then the model was estimated on multiple arrays of simulated data with different detrending schemes including the absence of detrending. Data detrending leads to 1.5–3 times higher errors of parameters estimation. More flexible detrending scheme leads to worse results (HP filter produces the worst result). However, if trend is eliminated from the data and DSGE model without trend is used then estimation errors increases additionally by 4–10 times.
Keywords: DSGE, trend, detrending, HP-filter, estimation accuracy, RMSE.
JEL: C32; E30; E32
For citation: Ivashchenko S.M. DSGE Models: Problem of Trends. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 81–95 (In Russ.). DOI: 10.31107/2075-1990-2019-2-81-95
https://doi.org/10.31107/2075-1990-2019-2-81-95

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S. V. Krivoruchko
Demand for Money and Circulation of Large Face Value Banknotes: Current Trends, p. 96-108
Abstract
Central banks around the world issue banknotes of large face value in response to demand from the public. Understanding of the nature of the cash need in the context of banknotes gradation is very important for predicting their effective emission, not allowing banknotes excess or deficit. Therefore, the aim of this work is to identify the main monetary and non-monetary factors in formation of demand for large face value banknotes, based on the study of the global experience in optimization of the cash circulation structure. The analysis is based on a comparison of the conversion rates of large banknotes in different countries and the factors affecting them. It has been revealed that in countries with high level of economy large banknotes are used to a greater extent as a means of savings, which increases in the period of almost zero interest rates, compared to other countries with less stable currencies, where central banks support higher interest rates. For countries with depreciation of national currency consistent increase in the face value of the largest banknote is typical, while demand on small face value decreases. In the history of monetary circulation reforms in some countries there have been cases of sudden cancellation or replacement of large face values in order to force people to withdraw cash from their stocks, as well as to confiscate illegal wealth. Waiting for such actions from government can distort the demand in cash. The attribution of the national currency to the list of world reserve currencies also stimulates the demand for banknotes of large face value, in particular because such currencies are in use in other countries along with local currencies and are used not only for saving as a “stronger” currency, but also for payments and settlements in large transactions, especially in the shadow economy. Optimization of the cash structure can significantly reduce the costs of circulation. The state can stimulate or weaken the demand for large face values. The fight against corruption with established barriers to illegal trade and trafficking justifies the efforts of some jurisdictions to remove very large banknotes from circulation. At the same time, it is extremely important to ensure transparency and timely notification of the public of making such decisions.
Keywords: money circulation, behavior, demand for money, cash, central bank.
JEL: E41, E58, D14
For citation: Krivoruchko S.V. Demand for Money and Circulation of Large Face Value Banknotes: Current Trends. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 96–108 (In Russ.). DOI: 10.31107/2075-1990-2019-2-96-108
https://doi.org/10.31107/2075-1990-2019-2-96-108

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V. N. Alekseev, N. N. Sharkov
Approaches to Development of Financial Infrastructure Informational-Regulative System, p. 109-121
Abstract
Objective of the article is to form approaches to development of financial infrastructure informationalregulative system in terms of global competition challenges and to define prior mode of its functioning. The article explores financial infrastructure informational-regulative system. In the framework of the research based on Russian and foreign authors’ researches, the analysis of various functioning modes of financial infrastructure informational-regulative is given with implementation of statistical, logical, comparative and retrospective analysis methods. The authors form the approaches to development of financial infrastructure informational-regulative system and propose the models of informational communication between regulators and financial infrastructure subjects. In addition, the authors analyze the main functioning modes of financial infrastructure informational-regulative system and determine the optimal mode. The article presents the set of financial security criteria and indicators of financial security of Russia and defines the limits for indicators. The Russian Federation financial security level assessment is performed based on its financial infrastructure compliance with financial security criteria and indicators. Authors conclude that development and implementation of financial infrastructure informational-regulative system could allow Russian regulators, legislators and law executors to respond relevantly on global competition challenges and manage risks arising from globalization of financial processes.
Keywords: financial infrastructure, intangible financial infrastructure, adaptation, informational-regulative system, financial security. 
JEL: F63, F65, G20, G28
For citation: Alekseev V.N., Sharkov N.N. Approaches to Development of Financial Infrastructure Informational-Regulative System. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 109–121 (In Russ.). DOI: 10.31107/2075-1990-2019-2-109-121
https://doi.org/10.31107/2075-1990-2019-2-109-121

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I. E. Mizikovsky
Formation of the Planned Calculation of the Production Cost at Manufacturing Enterprises, p. 122-130
Abstract
Comprehensive implementation of the planning and accounting function is the primary task of the modern enterprise of the manufacturing industry. Rational use of resources radically changes the strategy of the enterprise, which is of particular importance in modern terms, when the most important is the permanent cost reduction, ensuring compliance with the economically justified resource saving mode. People need a modern method of planned calculation of production cost (work, services), functionally oriented to the rational use of production resources in all processes of the value stream. Thus, the aim of the study is to develop the above methodology, the most “deployed” in the direction of information requests for effective management. The author’s observations of phenomena and processes in a number of manufacturing enterprises, their systematization and classification, system analysis, the use of structural-substrate and process approaches, measurement and results’ synthesis allowed to develop a modern methodology of planned calculation integrated into the information method part of an enterprise.
Keywords: planned calculation, costs, cost, cost accounting, planning, calculation, manufacturing enterprise.
JEL: D24, М11, М41
For citation: Mizikovsky I.E. Formation of the Planned Calculation of the Production Cost at Manufacturing Enterprises. Finansovyj žhurnal — Financial Journal, 2019, no. 2, pp. 122–130 (In Russ.). DOI: 10.31107/2075-1990-2019-2-122-130
https://doi.org/10.31107/2075-1990-2019-2-122-130

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Scientific periodical

ISSN 2658-5332