In her interview, Larisa Eroshkina, Director of the Department of Inter-Budgetary Relations of the Ministry of Finance of the Russian Federation, has told the Finance journal about the innovations that had been discussed during the annual workshop of the Ministry with the heads of financial authorities of the federal subjects of Russia.
In particular, according to Ms. Eroshkina, topics discussed during the workshop included extending the decision to centralize revenues from a one-percent corporate income tax and a five-percent contribution target for corporate income tax when implementing production sharing agreements in the federal budget until 2024.
Larisa Eroshkina also stressed that current plans include a phased transfer of revenues from excise payments for petroleum products from the federal to the regional level, as well as a partial transfer of income from excise taxes on alcohol to the regional level. In addition, participants of the workshop also discussed a possibility of transferring costs associated with pharmacological provision and, in the long term, local government spending on payment of insurance premiums for non-working citizens from the regional to the federal level.
In addition, in her interview the Head of the Department highlighted an improvement in the quality of budget planning and a decrease in the number of regions that breached fiscal discipline. However, according to Ms. Eroshkina, there are still "regions where every year there are problems in terms of fiscal discipline, implementation of a sound debt policy, and growing arrears on budget commitments."
In conclusion, Larisa Eroshkina gave some details on the history of the Department of Inter-Budgetary Relations, which celebrates the 20th anniversary of its establishment this year: it was originally formed in 1998 on the basis of the Department of Territorial Budgets.
"In those days, the Government did not have any effective controls to ensure that the allocated funds matched the actual needs of the regions and to monitor budget allocation in the federal subjects of Russia," emphasized the Head of Department. "The staff of the Department of Inter-Budgetary Relations were directly involved in a full-scale preparation began of a reform program in the sphere of inter-budgetary relations aimed at developing uniform principles governing these relations, as well as improving the methodology for equalizing the fiscal capacity of the regions."
We would like to remind you that matters related to inter-budgetary relations will also be discussed at one of the business sessions on the first day of the Moscow Financial Forum, on September 6.
The full text of the interview with Larisa Eroshkina, Director of the Department of Inter-Budgetary Relations of the Ministry of Finance of Russia, is available on the website of the Ministry of Finance.