«Public Administration Issues» Journal,

Post. address:
National Research University
Higher School of Economics
20 Myasnitskaya Str., Moscow 101000, Russian Federation
Location address:
of. 307, 4/2, Slavyanskaya sq., Moscow 109074, Russian Federation

Tel./fax: 7 (495) 772-95-90, ext. 12631

E-mail: vgmu@hse.ru 


Major Indexing

Research and educational journal
Published quarterly since 2007
ISSN 1999-5431
E-ISSN 2409-5095

Vladislav Bukharskiy1,2, Alexey Lavrov1
  • 1 National Research University Higher School of Economics, 20 Myasnitskaya Str., Moscow, 101000, Russian Federation
  • 2 Advisor in Financial Research Institute of the Ministry of Finance of the Russian Federation, PhD-student of the Department, Financial Management in Public Sector, Faculty of Social Sciences, National Research University Higher School of Economics, 20 Myasnitskaya Str., 101000 Moscow, Russian Federation.


2020. No. 1. P. 7–40 [issue contents]
The purpose of this study is to analyze the theoretical foundations of the concept of “hard” budget constraints and its applicability to cities in the Russian Federation. To achieve this goal, the paper presents the key elements of the theory of budget decentralization, and also considers the following hypotheses: (1) regional authorities of Russia are prone to instability in terms of uniform tax standards for deductions to urban districts; (2) the indicated instability is a criterion of “hardness” of budgetary restrictions, which affects the interest of local authorities (cities) in the development of “subordinate” territories; (3) local budgets in Russia have relatively low tax autonomy. To test the proposed hypotheses in the context of the subjects of the Russian Federation for the period 2010–2018 unifi ed standards for deductions from federal and regional taxes to the budgets of urban districts were collected and analyzed; a volatility index of the specified standards was compiled, and then analyzed for the presence of statistical relationships with the main indicators of the development of small and medium-sized enterprises (SMEs) in the regions. Our observations have shown that in the context of the OECD countries’ budget structure the local level of government in Russia has relatively low tax autonomy, and regional authorities are unstable in terms of the standards considered, which generally does not correspond to the concept of “hard” budget constraints. The hypothesis of a statistical relationship between the “hardness” of budget constraints expressed through the volatility index of standards and the indicated interest of local authorities (cities), expressed in the development of SMEs, has not been confirmed. But this does not eliminate the need to make changes to the system of inter-budgetary relations of Russia proposed in the current work in the medium and long term.

Bukharskiy, V.V. & Lavrov, A.M. (2020). Zhestkiye byudzhetniye ogranicheniya: Teoreticheskiye osnovy i problematika rossiyskikh gorodov [Hard Budget Constraints: Theoretical Foundations and Problems of Russian Cities]. Public Administration Issues, no 1, pp. 7–40 (in Russian).
ISSN 1999-5431
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