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INSTITUTE OF ECONOMIC PROBLEMS, KSC RAS

Department of State and Corporate Finances


Head: Tatyana Pachina, PhD (Econ.), associate professor
Tel:(81555) 79 604
e-mail: pachina@iep.kolasc.net.ru


Lines of investigations:
- study of pattern and current practice of state and corporate finances formation.


Staff:
Pachina Tatyana, PhD (Econ.), head of the department
Barasheva Tatyana, PhD (Econ).
Kraynova Larisa, PhD (Econ.)
Pochivalova Galina, PhD (Econ.)
Gorlevskaya Natalya, junior researcher
Dyadik N.V., senior research worker


Main completed research projects:

   Forming of a regional tax-budgetary policy in the North of Russia in the light of arising federal relations (2001-2003).

    The study reached some new and supported the previous conclusions. Low effectiveness of regional policy is explained by deficient country organization from the standpoint of observance of basic standards of federalism and first of all the standard of self-sufficiency. The requirement of economic self-sufficiency of the regions (subjects of the federation) is not fulfilled. Due to this fact such innovation as "federalism" stands little chance of success in socio-economic development of regions.

   Russia being least uniform federation, the growth of regional differentiation owing to uncontrolled globalization is pregnant with graver consequences then in other countries. The study revealed the aspects of corporate policy, well-predictable in the initial stage and activating the spatial balance of regional economies. The corporative aspect of forming and support of economic and budgetary spaces comes into foreground. During the last decade the state didn't place emphasis on corporate strategies and the main moving forces of these spaces underwent fiscal influence.

   The budgetary space formed the corresponding parameters. The uncertainty and search of appropriate amounts of state withdrawals from the national produce came to an end. This compromise showed the state tendency to avoid the responsibility for social and economic policy, i.e. consolidated on-budget expenditures halved during the last decade as compared to the beginning of the reform. The recent years have achieved positive income growth rates and federal budget revenue derived from taxes. The regional budget is characterized by an adverse effect: income growth is unfavorable even after the leveling the rates of profit. The dynamics of the consolidated budget of Russia, the same as the dynamics of gross domestic product withdrawals testify to minor importance of regions in forming of socio-economic policy. The share of regional revenue from taxes in the federal consolidated budget came down steadily to give way to federal support and reduce the level of income and financial security. The matter of informal federal support to the regions, amounting to 40 % of their total income, remains urgent. The amount of recipients didn't change; some regions have become more dependent on the federal support though.

   Four basic factors governed the financial security of the regions:
-    stabilization of the state interest in the gross domestic product on the level of minor social responsibility;
-    reduction of fiscal and budgetary incomes of the regions;
-    growth of inter-budgetary transfers;
-    decreasing population.

   Joint influence of these factors couldn't bring substantial changes into status hierarchy of the regions but only to shift positions slightly "up" or "down".


Current research subject:

    Moving forces and trends of transformations in the budgetary space of Russia (2004-2006)

   The previous studies of problems, trends and patterns of forming the state financial-budgetary policy are suggestive of increasing fragmentation of the state budgetary space and insufficiency of the state transfer support of poor regions. Distribution of authority between the federation and its regions, being within a scope of a special commission, may provide a basis for further decrease in regional differentiation. It is the best possible result to be expected in this direction.

   The state is maintaining local equilibrium in each region through centralization of taxes in the federal budget, regulation of budgeted deficit and well-directed flow of federal transfers. Nevertheless, the authorities ignore completely the cumulative pattern of regional disbalances, having a long history and concentrating not within the sphere of the gross domestic product sharing. As a result, the budgetary space represents a multi-regional system which is brought to short-term pseudo-balance every fiscal year.

   The growth rates of the regional economy are determined by the amount of capital accumulation, well-skilled manpower, developed information space and bent for innovations. The regional differentiation increases with the economical delimitation while entering the world economic space. On the wave of new external economic liberalization, the redistribution of factors of production between the regions will intensify. This fact may give rise to spiral-like growth of developmental differentiation between the regions. Politicians are well aware of this fact. According to the president, the monitoring and control of the factors, undermining social and economic stability of the country, is a determinative of economic security. Such monitoring and control should hold a firm place in a state regional policy.

   Actual balance of an economic system, including a local one, relies on balanced capital, manpower and innovations flows. It is created and maintained through control means of these factors of production. Earlier studies arrived at a conclusion that the control means of budgetary space transformations in transitory economic systems are also to some extent present in the sphere of fiscal -budgetary policy. The moving forces of the budgetary space transformations, the same as the means for balancing this space, lie within the managing sphere of the factors of production. The study of the transformations of budgetary space of a country with transitory economic system should be regarded taking into account the state of transformation moving forces.

   In the course of studies the researchers of the Department work for explanation of the trends of multi-regional budgetary space and also exposure of possible and wishful influences on its moving forces.