Issue №1, 2017



Types of intergovernmental transfers and consequences of their allocation to the recipient budget


E. N. Timushev, Institute of Socio-Economic and Power Problems of the North, Komi Scientific Center, Ural Branch of the Russian Academy of Sciences (Syktyvkar, Russia)

Full article 

The problem of evaluating the fiscal incentives for a recipient budget is discussed. The issue is surveyed in the context of improving the structure of intergovernmental transfers and making budgets more independent. Based on the literature and tools for the study of consumer behavior in microeconomics, the classification of intergovernmental transfers is offered. The various types of transfers are represented as particular cases of a transfer with the mentioned characteristics. Compared are the types of earmarked transfers with respect to preferring one of them by a recipient budget. It is shown that each type of intergovernmental transfers can be reduced to special cases of an earmarked matching closed-ended grant; delivering an earmarked matching grant instead of an earmarked non-matching one (namely, designed for the recipient to execute the donor’s expenditure obligation) does not result in imputed costs the recipient suffers. It is concluded that if the donor budget does not pursue the task of changing preferences of the recipient budget with respect to the various public goods, non-earmarked transfers are a more effective tool of financial resource distribution.

Keywords: intergovernmental transfers, non-earmarked transfer, earmarked transfer, independence, fiscal incentives.


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For citation: Timushev E. N. Types of intergovernmental transfers and consequences of their allocation to the recipient budget // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2017. № 1. P. 148-157.