Equalization of fiscal capacities of municipalities: current problems
T.V. Sumskaya
Abstract
The paper analyses the issues of how regional and local budgets can interplay to generate a financial base for local authorities. The author evaluates the structures of local budgets and the indices calculated for local budgets dissimilarity before and after transfers from regional budgets; offers a technique of how to identify which area mostly influence on the dissimilarity indices calculated after transfers from superior budgets; analyzes how grant transfers and local revenues correlate; and estimates a marginal effect of increased taxes received by local budgets.
