Financial Journal Vol.13 No.6 2021
Olga V. Bogacheva, Oleg V. Smorodinov
Financial Support for Research, Development and Engineering Instruments and Technology Readiness Levels, p. 8-24
At present, the methodology of technology readiness levels (TRL) is used worldwide by both public organizations and private companies to address a number of issues. In the system of public support for the development of the science, technology and innovation (STI) sector, TRL is increasingly used as a tool for R&D project management and funding. At the same time, the TRL methodology is not integrated into the budget process in any country in the world, which does not allow the full potential of TRL to be actualized. For Russia, where the role of state scientific and research organizations and public funding of STI is extremely important, this task is a real challenge. As the authors conclude, not only should the TRL methodology be adapted to the tasks of managing budget expenditures for R&D, but the public funding system with its financial instruments should also be adjusted taking into account the requirements of TRL. The key direction of integrating the TRL methodology into the budgetary process is linking of TRLs with elements of types of budgetary expenditures. This task could be accomplished after having taken the following measures: improvement of the budget classification in terms of R&D expenditures; application of a unified project approach to all instruments of state financial support and a unified classification of R&D projects; provision of a unified system for recording expenditures on science; improvement of public support instruments; and determination of the required ratio of R&D funding from budgetary and extrabudgetary sources for various TRL intervals. This work should include development and implementation of a new approach to understanding the boundaries of the STI sector, stages (types) of scientific activities, planning methods and conditions for the provision of public support, as well as improvements in the conceptual apparatus and tools of the support.
Keywords: technology readiness levels; science, technology, and innovation sector; instruments of public support for development; public funding of research and technology development
JEL: O31, O32
For citation: Bogacheva O.V., Smorodinov O.V. Financial Support for Research, Development and Engineering Instruments and Technology Readiness Levels. Financial Journal, 2021, vol. 13, no. 6, pp. 8–24 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-8-24.
© Bogacheva O.V., Smorodinov O.V., 2021
Samvel S. Lazaryan, Maria A. Elkina
Financial Sector’s Role in Transmission of Monetary and Fiscal Shocks in Russian Economy:
Estimation Under Different Assumptions About Production Sector, p. 25-53
The financial sector plays a crucial role in the economy, not only being a simple intermediary between creditors and borrowers, but also having a significant impact on the economy’s development and its various characteristics. For this reason, accounting for financial sector peculiarities is critical when developing policy-oriented general equilibrium models for practical use. This drives the interest of many researchers in development of approaches to describing the financial sector and financial frictions in DSGE models. In financial frictions models one can describe the production side of the economy in a simplistic way. However, it could be important to model the production sector in more detail. For instance, separating tradable and non-tradable sectors of the economy could be of great significance, especially for developing economies which depend on foreign trade a lot. In this paper we analyze the role of the financial sector and how important it is for transmission of monetary and fiscal shocks under different assumptions about the production sector. Namely, we compare two-sector economy with tradable and non-tradable sectors with a simplistic model which assumes that the economy produces only tradable goods. According to the results, financial frictions impact tradable and nontradable sectors asymmetrically. In the two-sector model the effect of financial frictions is quantitatively smaller than in the one-sector economy. Therefore, using the latter simplifying assumption could lead to overestimating the role of financial frictions in the transmission of monetary and fiscal shocks. In addition, the paper provides estimates of how changes in monetary and fiscal policy instruments impact the Russian economy given the existence of financial frictions.
Keywords: financial sector, financial accelerator, financial frictions, fiscal policy, monetary policy, DSGE model
JEL: E60, E52, E62
Funding: The research was funded by the Russian Science Foundation, project 21-18-00482, https://rscf.ru/project/21-18-00482/
For citation: Lazaryan S.S., Elkina M.A. Financial Sector’s Role in Transmission of Monetary and Fiscal Shocks in Russian Economy: Estimation Under Different Assumptions About Production Sector. Financial Journal, 2021, vol. 13, no. 6, pp. 25–53 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-25-53.
© Lazaryan S.S., Elkina M.A., 2021
Aleksandra L. Osmolovskaya-Suslina, Sofiia R. Borisova, Victoria A. Moskvina
Integral Tax Collection Index as a New Approach to Assessing Tax Administration, p. 54-80
Budget mobilization and improvements in the quality of tax administration are always among the top priorities for fiscal authorities. During periods of instability the role of tax compliance and budget execution increases even more. Times like these require quick analysis and adaptation of the tax system to changing economic conditions, and do not always allow conventional scientific approaches to be used in the analysis of tax collection. Fiscal authorities are faced with the need to create relatively simple tools for assessing that would allow one to analyze revenues with a minimum set of data and to assess the efficiency of the tax authorities taking into account changes in the macroeconomic environment. The integral index of collection presented in this work can help solve this problem. The essence of the approach is to analyze the coherence of two dynamics: actual tax receipts and their proxy tax base. The methodical advantages of the proposed indicator are its relative simplicity and versatility. It is applicable for most of the tax and non-tax payments and can be used both independently and in conjunction with other indicators of tax collection completeness. The above makes the index a convenient tool for quick analysis at different stages of the budget process—it can be useful not only for ex-post understanding of trends in budget revenues execution and tax administration dynamics, but also for improving the accuracy of budget forecasts ex-ante.
Keywords: taxes, budget, tax collection, tax administration
JEL: H22, H26, H68
For citation: Osmolovskaya-Suslina A.L., Borisova S.R., Moskvina V.A. Integral Tax Collection Index as a New Approach to Assessing Tax Administration. Financial Journal, 2021, vol. 13, no. 6, pp. 54–80 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-54-80.
© Osmolovskaya-Suslina A.L., Borisova S.R., Moskvina V.A., 2021
Anna V. Tikhonova
Key Issues of Taxation of the Self-Employed in the CIS Countries, p. 81-97
The present article examines the prospect of forming a special chapter of the Model Tax Code for the CIS countries, “Tax on Professional Income.” The relevance of this issue is explained by two circumstances—first, a growing share of self-employed citizens, among whom a significant part work outside the legal framework; and second, the possible labor migration of this category of payers between the CIS countries. As a consequence, both factors lead to the need for the formation of common approaches to taxation of self-employed individuals in the member states, codified in the form of a chapter in the Model Tax Code. The purpose of the study is to determine the key elements of the tax on professional income in the CIS countries, which should be indicated in the CIS Model Tax Code as the basic conditions and principles of taxation of self-employed citizens. In accordance with the goal, the author analyzed the tax and labor legislation of the CIS member states, as well as the associated member, the Republic of Turkmenistan. A review of legal acts showed that there is no single conceptual apparatus (“self-employment,” “selfemployed”) in the analyzed countries. This fact prevents the development of a unified approach to determining the circle of taxpayers within the special regime. National legislation has developed three approaches to taxing the self-employed. The first approach is that the self-employed are singled out into an independent category of payers with the presence of the corresponding features of taxation. The second approach consists in the absence of specific conditions of taxation in the presence of a standard individual income tax levied on a general basis. The third approach involves the formation in the construct of a number of taxes and special tax regimes of specific conditions for the taxation of the self-employed. At the end of the article, recommendations are given on the content of a special chapter of the Model Tax Code, taking into account the peculiarities of economic and social development, the state of tax administration, and the “tax” susceptibility of the population of the CIS countries. As an approach to taxation of the self-employed, it is proposed to apply the first one cited, based on the allocation of an independent category of payers.
Keywords: tax on professional income, model tax code, self-employment, imputed income, tax administration, entrepreneurship
JEL: H24, H22, H3
For citation: Tikhonova A.V. Key Issues of Taxation of the Self-Employed in the CIS Countries. Financial Journal, 2021, vol. 13, no. 6, pp. 81–97 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-81-97.
© Tikhonova A.V., 2021
Аnna A. Mikhaylova, Evgeny N. Timushev
Concept of Vertical Fiscal Imbalance in the Analysis of Fiscal Sustainability at the Regional Level, p. 98-116
The paper analyzes the concept and indicator of vertical fiscal imbalance (VFI) and its capability in assessing the creditworthiness (debt sustainability) of Russian regions. It is found that VFI does not replace other indicators of debt and broader fiscal sustainability, but complements them by providing diagnostics of the balance of incoming and outgoing intergovernmental transfers in addition to the balance of expenditures and revenues (budget deficit). Vertical fiscal imbalance has a close inverse pair correlation with the share of own (tax and non-tax) revenues and fiscal capacity, and can therefore reflect creditworthiness (along with the amount of debt and capital expenditures). Technically, it is advisable to carry out an analysis using VFI with a recalculation accounting for subventions. It is concluded that vertical fiscal imbalance is an important element of the methodology of diagnosing fiscal sustainability. Further study of features of the concept, as well as the use of VFI in the analysis and regulation of intergovernmental relations, suggests a promising outlook.
Keywords: fiscal sustainability, dependency on transfer, fiscal capacity, subventions, regional debt, capital expenditures, factor analysis
Funding: The article was prepared within the framework of the state assignment of the RANEPA.
For citation: Mikhaylova A.A., Timushev E.N. Сoncept of Vertical Fiscal Imbalance in the Analysis of Fiscal Sustainability at the Regional Level. Financial Journal, 2021, vol. 13, no. 6, pp. 98–116 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-98-116.
© Mikhaylova A.A., Timushev E.N., 2021
Elena B. Veprikova, Aleksei A. Novitskii
Public Expenditure in Regions: Current State and Problems (Exemplified by Registries
of Expenditure Commitments of the Regions in the Russian Far East), p. 117-131
Exemplified by regions of the Russian Far East, the article presents a view on the current state and problems of managing regional public expenditures, including the focus of public expenditure on regional development. The research is based on the data from expenditure commitments registries in 2019. A major share of budget expenditures is “compulsory” (pre-determined) expenditures, which have limited flexibility and cannot be redirected to different purposes. Under these circumstances, the ability of regional governments to vary the direction of budget spending and finance self-initiated expenditure commitments—in other words, to independently manage the composition of expenditures—is kept to a minimum, which implies low autonomy in managing expenditures. Most of the Russian Far Eastern regions’ government expenditures are aimed at supporting the current volume and quality of public services. The share of developmental expenditures is higher in regions having more budget resources (Sakhalin Oblast), and significantly lower in regions of the northern Far East (Magadan Oblast, Kamchatka Krai, and Sakha Republic (Yakutia)), the latter having higher costs of supporting critical infrastructure under severe climate conditions. In the present situation, regional governments cannot be fully considered as key influencers managing the development of their territories, and only fill the role of executors and lobbying actors for acquiring financial support from the federal government. As a result, it is difficult to account for specific territorial circumstances and development potential, and the overall efficiency of government spending is decreased. In the authors’ opinion, the findings may be applicable to most regions in the Russian Federation.
Keywords: government spending, expenditure commitments, regional development, expenditure commitments registry, compulsory expenditures, initiative expenditures, developmental expenditures, microregion
JEL: E62, H50, H61
For citation: Veprikova E.B., Novitskii A.A. Public Expenditure in Regions: Current State and Problems (Exemplified by Registries of Expenditure Commitments of the Regions in the Russian Far East). Financial Journal, 2021, vol. 13, no. 6, pp. 117–131 (In Russ.). https://doi.org/10.31107/2075-1990-2021-6-117-131.
© Veprikova E.B., Novitskii A.A., 2021