Russian Federation Country Study. A Public Finance Perspective
Source: Cohn (1987, p. 12) Authors' Source: Elliot
and Dowla in International Journal of Social Economics" v. 21 p. 78
Table A3 Soviet state budget expenditures for consumer and food subsidies,
social insurance, and health care, 1985-1990
Type of expenditure
1985
1986
1987
1988
1989
1990
In billions of rubles (nominal)
Total state expenditures
386.5
417.1
430.9
459.5
482.6
488.2
Consumer subsidies
58.0
65.6
69.8
89.8
100.7
110.5
Food subsidies
56.0
58.0
64.9
66.0
87.7
95.7
Social insurance and health care
83.6
89.3
94.5
102.5
105.5
117.2
As percent of GNPConsumer subsidies
7.5
8.2
8.5
10.3
10.9
11.6
Social insurance and health care
10.7
11.2
11.5
11.7
11.4
12.3
Source: Anders Aslund, "Gorbachev, Perestroyka, and Economic
Crisis," Problems of Communism, vol. 40, nos. 1-2, Jan.-Apr. 1991, p. 25
a. Estimated figures.
Authors' Source: Linda J. Cook. 1995 The Soviet Social Contract and Why It
Failed p. 148
Table A5 Significance of Public Transfer in Household Income for
households Receiving the Benefit
Very
Poor
Poor
Not
Poor
Transfer
% Receiving the benefit
Avg % of Recipient Household Income
% Receiving the benefit
Avg. % of Recipient Household Income
% Receiving the benefit
Avg. % of Recipient Household Income
Family Allowances
288.8
23.6
32.4
14.5
25.7
5.9
Pensions
0.3
75
41
66.9
48.7
58.4
Unemployment Benefit
0.8
21.7
0.4
17.8
0.3
9.8
Subsidies from Local Authorities
100.4
9.6
10.4
9.6
14.5
8.1
Subsidies from Enterprises
55
9.4
8.7
10.8
17.7
11.7
Scholarships
50.2
17.8
6.2
18.2
6.7
8.7
All Transfers*
666.8
58.5
70.9
48.4
74.4
42.6
*All transfers includes those listed (except subsidies from enterprises,
which are included with subsidies from local authorities) plus welfare.
Note that the overall average percent of the household income can be
calculated form the two values reported for each poverty status.
Source: RLMS. Round 4. October 1993- February 1994.
A6 List of Goods
in Everyday Demand and Services to the Population which are Exempt from the
Sales Tax
Children's food, meat, meat products (except delicatessen
products), milk and milk products, margarine, fats, bakery products, flour,
pasta products, eggs, tea, sugar, salt, vegetables (cabbage, carrots, beet,
onions, potatoes),fish and fish products, vegetable oil, mineral water,
children's items, textbooks for general education schools, specialist
educational and medical equipment and medical supplies;
Children's items, including clothing, footwear, furniture,
bed-linen, school uniform, toys and sports items; Consumer goods on lists
approved by the councils of ministers of the republics within the USSR, kray
soviet executive committees, oblast soviet executive committees, Moscow and
Leningrad city soviet executive committees and executive committees of
autonomous oblast and autonomous okrug soviets of people's deputies;
A7 USSR: SALES TAX DECREE Full text of instruction
issued by USSR Ministry of Finance and dated February 11, 1991 ). The provisions
include some of the following:
1.
Liability extends to joint ventures and Soviet organizations engaged in
importing;
2.
Joint ventures will pay tax on hard currency sales in rubles, converted
at the prevailing commercial rate of exchange fixed by USSR Gosbank;
3.
Liability extends over a wide range of supply, including professional,
informational, communication, etc. services;
4.
The tax rate is 5%;
5.
Tax exemption applies to sales of precious metals, coal shale, export
services, trade between parts of a constituted enterprise.
SOURCE: EKONOMIKA I ZHIZN February 23, 199. P19
A8 Taxable income received in calendar year. Source: Tax
96 TNI 4-1 (Foreign Taxation) (Doc 96-947)
less than 12 million Rubles 12 % from 12 million Rubles 1, 44 million Rubles
+to 24 million Rubles 20 % of the sum exceeding 12 million Rubles from 24
million Rubles 3.84 million Rubles to 36 million Rbls, 25 percent of the sum
exceeding 24 million Rubles above 48 million Rubles 10.44 million Rubles + 35
percent of the sum exceeding 48 million Rubles
1.
Isaak I. Dore , 1995 Distribution of Governmental Power Under the
Constitution of Russia" in Parker School Journal of Eastern European
Law" v. 2 p. 675
2.
ibid p. 681
3.
ibid p. 865
4.
ibid p. 691
5.
ibid p. 678
6.
ibid p. 688
7.
With the current political situation we can say that the budget as a
whole, without doubt, will not pass the Duma by the end of the year.
8.
The Moscow Times May 21, 1996. p. 54.
9.
World Paper. September, 1996 p. 33
10. TNI 73-22,
1996
11. TNI 22/16,
1992, John Turro
12. Joint
Letter No VG-4-12/25N of June 16, 1995
13. Doc 96-947
14. Much of
the literature on tax assignment argues that the personal income tax(PIT),
generally one of the more important taxes in revenue terms, should be retained
by the central government, largely for redistributional and stabilization
reasons. Nevertheless, the central government may give local governments a
share in the PIT.
15. Tax
Analysts, Tax Notes International. January 25, 1993
16. NOVECONCOMMERSANT.
July 28, 1994. p. 2
17. In Russia,
this tax is mostly levied at a national level because of the administrative
convenience, these taxes have been levied at the producer level, not the retail
level; and in the transition economy context this often translates into a tax
on a few manufacturers as in Russia, for example, there are cigarette factories
in only 21 of its 2000 "raions" (Comparative Economic Studies Winter
1994, Vol. 36, No. 4), or sometimes on the single monopoly producer. Thus, only
a few producing districts would benefit from levying these taxes and revenues
from them would accrue to only a few localities
18. Tax
Analysts, Tax Notes International. January 25, 1993
19. Tax
Analysts, Tax Notes International. January 25, 1993
21. The
British Broadcasting Corporation March 15, 1991
22. Scot
Antel. The Moscow Times. May 21, 1996
23. Though
temporary steps were made like creating special colleges that are attached to
courts of arbitration, we suppose that creating a special tax courts is
essential here
24. Of course,
taxes existed but people could not evade them as they were centralized and in
theory all means of production were owned by the state.
25. Washington
Post. October 12, 1996. p. A25
26. But we are
afraid that this provision will not benefit the economy
27. Betsy
McKay. The Wall Street Journal.October 29, 1996. p. A12
28. Comment
& Analysis; Statistics; Forecast; November 1996 p. 2
31. In our
opinion, inflation will come down further in 1997, to approximately 15 percent.
Also, Russia continues to fail in its economic performance of it fiscal and
monetary policy within the framework established by the International Monetary
Fund.
32. The Moscow
Times. March 27, 1996
33. Dmitry
Falcovich, head of the macroeconomic department with Alliance-Menatep
34. Russian
Federation: Toward Medium-Term Viability. 1996. IBRD/World Bank p.39
35. Fiscal
Management in Russia. 1996. IBRD p. 39
36. Fiscal
Management in Russia. p. 22
37. John E.
Elliot and A.F. Dowla. Gorbachev, Perestroika and Democratizing Socialism"
in International Journal of Social Economics" v. 21 p. 78
38. Linda J.
Cook. 1995 The Soviet Social Contract and Why It Failed." Harvard
University Press: Cambridge p.2 Cook suggests the following as empirical
evidence: 1. That the Soviet regime consistently deliver to workers economic
security and social welfare; 2. That the regime deliver these policy goods
because it is constrained by it perception of workers' expectations or its fear
of labor discontent if it fails to deliver them; [and] 3. that workers give in
exchange political compliance and quiescence. p. 5
39. Vladmir
Mau. 1996 The Political History of Economic Reform in Russia, 1985-1994. Center
for Research into Communist Economies p. 59
40. John
Dunlop. 1993. The Rise of Russia and the Collapse of the Soviet Empire.
Princeton University Press: Princeton. p. 267
41. Cook p.141
42. ibid p.187
43. Thomas A.
Mroz and Barry M. Popkin. 1995. Poverty and Economic Transition in the Russian
Federation" in Economic Development and Cultural Change . V 44 p.3
44. ibid p.4
45. ibid p. 4
46. Russia:
Social Protection During Transition and Beyond International Bank For
Reconstruction and Development Report No. 11748-RU. p. 23
47. Vladimir
Mikhalev Social Security in Russia under Economic Transformation" in
Europe-Asia Studies v. 48 n.1 (note: As this source came from an electronic
medium, I have omitted page numbers--DL)
48. ibid
49. IBRD
Report No. 11748-Ru. p. 35
50. ibid p. 11
51. EBRD p. 40
52. ibid
53. BISNIS
Country Report
54. OMRI
November 31, 1996
55. OMRI
October 4, 1996
56. Financial
Times. September 23, 1996
57. Of course,
it is possible to lower administrative costs and improve overall efficiency in
the tax system by going to a more computerized system but resistance to change
due to unquestionable job loss is quite evident in the Russian government.
58. Komsomol'skaya
Pravda. Sept. 24, 1996
The file was preapred by Dmitri Maslitchenko
dmitri@mailroom.com
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