THEORETICAL FRAMEWORK OF THE MODEL FISCAL FEDERALISM IN THE RUSSIAN FEDERATION: ESSENCE, PRINCIPLES, GENESIS

Abstract

This article analyzes the distinctive features of the modern stage of development of financial relations in the Russian Federation directly associated with the formation of the model of federalism, the key and system-forming role of which as a set of constitutional and legal principles and rules of a federal state is currently of paramount importance for intergovernmental and fiscal relations. The author believes that a key factor in the formation of linkages between the federal budget, the budgets of the constituent entities of the Russian Federation and local budgets, the financial capacity of the respective levels of the government is their economic incentives through grants, non-tax revenue and, basically, income tax, characterized by vertical and horizontal balance amounts and tax obligations, as well as monitoring legitimate and expedient use of financial resources. This study provides an author's definition of fiscal federalism as a group of legal rules governing a particular kind of public relations that reflect the interaction of public and private finance in part of the accumulation, distribution and use of tax revenues and delineation of spending commitments between the elements of the budgetary system and appropriate levels of public authority. This conclusion stems from the analysis of the aggregate installed in the Russian Federation, the essential conditions of taxation, as well as characteristics and distinctive features in terms of approach to federalism as a political-legal, fiscal, economic and socio-cultural characteristics of federal State.