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date: 15 May 2021

Abstract and Keywords

This chapter briefly reviews the advantages and disadvantages of fiscal decentralization in general and the current federal structure and the post-1992 development of fiscal federalism in Russia, including substantial reforms of the early 2000s. The creation of federal districts and the elimination of elections of regional governors clearly signified a substantial rise of political centralization in the new millennium. However, using various qualitative considerations and quantitative measures, we show that there has not been a clear trend toward fiscal centralization, although the preponderance of the evidence suggests that fiscal independence of the regions has eroded since the late 1990s. Finally, we briefly address the issue of intraregional fiscal relations.

Keywords: fiscal federalism, political centralization, fiscal independence, regional inequality, intraregional fiscal relations

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