1993-807-09-Mitchneck | Subsidy

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  TITLE : The Local Budget in the Changin   Role of Municipal Government i   Russia : A Case Study of Yaroslavl  AUTHOR : Beth Mitchnec k THE N TION L COUNCI   FOR SOVIET ND E ST EUROPE N RESE RC   1755 Massachusetts Avenue N .W   Washington D   . 20036  PROJECT INFORMATION   CONTRACTOR   University of Arizon   PRINCIPAL INVESTIGATORS   Beth Mitchnec k Daniel Berkowit z COUNCIL CONTRACT NUMBER   807-0   DATE   April 16 199   COPYRIGHT INFORMATIO N Individual researchers retain the copyright on work products derived from research funded b y Council Contract . The Council and the U .S . Government have the right to duplicate written report s and other materials submitted under Council Contract and to distribute such copies within th   Council and U .S   Government for their own use and to draw upon such reports and materials fo   their own studies; but the Council and U .S . Government do not have the right to distribute o   make such reports and materials available outsidethe Council or U.S . Government without th   written consent of the authors except as may be required under the provisions of the Freedom o   Information Act5 U .S .C . 552 or other applicable law   The work leading to this report was supported by contract funds provided by the National Council fo r Soviet and East  uropean  ese rch  The analysis and interpretations contained in the report are those of th e author     ONTENT   Executive Summary   i Summary and Conceptualization of Current Changes   Yaroslavl Case Study   i i Budgetary Revenues   i i Off-Budget Revenues (Discretionary)   ii  ax Collection   ii i Budgetary Expenditures   i v Off-Budget Expenditures   v Summary and Conclusions   v i INTRO U TION   The Russian City Government and Budgetary Policy   Budgetary and Extra-Budgetary Revenues   4 Budgetary and Off-Budgetary Expenditures   Summary and Conceptualization of Current Changes   Data and Methodology   9   ax Instruments   9   ax Collection   9 Composition of Local Expenditures   1   Interviews and Data   1   The Yaroslavl Case Study   1   Budgetary Revenues   1 1 Off-Budget Revenues   11 Tax Collection   12 Budgetar y Expenditures13 Off-Budget Expenditures   1 4 Summary and Conclusion   16 Table 1   18 Table 2   19 Table 3   2 References    EXECUTIVE SUMM R   This paper demonstrates the empowerment of local government as it evolves from a n administrative arm of the center to a semi-autonomous, policy making body . Loca   government bodies now use the fiscal system to carve out a new economic role and t o develop jurisdictional boundaries . This paper traces fiscal decentralization in one Russia n city, Yaroslavl . The main data sources are interviews with city officials in June 1992 an d January 1993 and city and district government documents, (e  g . resolutions of the legislativ e branch . Summary and Conceptualization of Current Change   Soviet local state institutions historically insured local consumption of both public an d private goods and administered central directives . City and oblast activism in the late 1980s   combined with central legislation, brought about a redistribution of the loci of economi c means, authority, responsibility, and information from higher government levels to the loca l level   The de-legitimization of the word Soviet has caused the redefinition of territoria l jurisdiction and of the economic role of local government . Soviet, as a national term   signified central authority throughout the territory . In this system, the central state viewe d the entire territory as subject to its priorities. Territorial jurisdiction constricts with the de   legitimization of the highly centralized system . A concomitant splintering of governmen t priorities occurs . Local property rights, the right to use tax instruments and the right t o establish independent expenditure policies shift to the local level meaningful territoria   jurisdiction and, thereby, provide it with the means to change its economic role . The processes of changing the meaning of territorial jurisdiction and the economi c role of local government are not complete. Substantial continuity from the past syste m remains (Mitchneck and Berkowitz, 1992) . One of the important questions to answer is i n what concrete ways does the local government push the boundaries of past limitations ove r its actions? From where does it draw the power and authority to independently change it s economic behavior? By answering these questions, we can analyze the impact of governmen t decentralization on cities . The case study of Yaroslavl begins to answer these questions .  i
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