The Fiscal Impact of the COVID-19 Pandemic on Subnational Governments: The Case of Russia
Public Finance Review
; 50(3):239-278, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1902281
ABSTRACT
This paper examines the fiscal consequences of the COVID-19 pandemic for subnational governments. In particular, we study how the pandemic affected the Russian regions in terms of budget revenues, expenditures, and federal transfers. We use a novel dataset and compare various monthly fiscal measures in 2020 prior to and during the pandemic to the corresponding measures in 2019, conditioning on regional actions in response to the pandemic, the health impact of the pandemic, and the potentially relevant regional characteristics. We document that small business tax collections declined the most in response to the pandemic-related restrictions, while unconditional discretionary transfers and health care expenditures rose the most. Also, we find that tax collections are positively associated with population mobility, controlling for the restrictions, suggesting that tax revenues were inversely affected by the degree of compliance with the restrictions. Finally, we outline some policy implications for the design of fiscal federalism and directions for future research.
Business And Economics--Public Finance, Taxation; COVID-19; Russian regions; fiscal federalism; regional budgets; Conditioning; Federalism; Health care expenditures; Tax collections; Mobility; Regions; Tax revenues; Corporate taxes; Expenditures; Taxation; Migration; Pandemics; Small business; Coronaviruses; 92113:Public Finance Activities
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Type of study:
Experimental Studies
Language:
English
Journal:
Public Finance Review
Year:
2022
Document Type:
Article
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