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Budget Maneuver and Centralization of Insurance Contributions for Non-Working People: Implementation Scenarios and the Effect on the Equilibrium of Regional Budgets

Alexander Deryugin – Senior Research fellow of Budget Policy Department, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Ilya Sokolov – Head of Budget Policy Department, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The evaluation of the effect on individual regions of assignment of expenditure obligations to pay insurance contributions to the mandatory medical insurance for the non-working population from the regional level to the federal one has revealed that the measure in question will permit not only to liquidate a major non-financed mandate, but also together with other instruments of inter-budget relations carry out a budget maneuver in the preferable direction for investment resources, that is, in human capital and transport infrastructure and reduce the existing level of differentiation of regions’ fiscal capacity.

Key words: insurance contributions, non-working population, assignment of authorities, equation subsidies, profit tax.