Conceptual Directions for Reducing Fiscal Imbalances in the Budget System of a Federal State

Purpose . The study aims to develop a system of conceptual directions for reducing vertical and horizontal fiscal imbalances in the budget system of a federal state and to test their applicability. The research draws on documents issued by the Ministry of Finance of the Russian Federation, the Federal Treasury, and international organizations. The authors develop a formula for estimating the standard tax capacity of a constituent entity of the Russian Federation, propose a three-component model for assessing the efficiency of public property management and an integrated three-block model for mobilizing non-tax revenues, and construct an integral index of intergovernmental fiscal regulation efficiency. The study employs methods of systems analysis, comparative institutional analysis, and normative modelling. The findings indicate that the existing system of intergovernmental fiscal relations contains inherent disincentives for expanding the revenue base and is characterized by a high degree of regions’ dependence on intergovernmental transfers. It is demonstrated that the application of the proposed instruments can reduce interregional disparities, increase the share of own-source revenues, and improve fiscal sustainability indicators. The study concludes that effective reduction of fiscal imbalances requires a comprehensive implementation of measures involving reform of the equalization mechanism, expansion of tax autonomy, and enhanced utilization of non-tax revenue sources. The research findings can be used by federal and regional public authorities to improve intergovernmental fiscal regulation mechanisms, as well as by academic and educational institutions to develop methodological approaches for assessing fiscal sustainability and budgetary autonomy of the constituent entities of the Russian Federation.