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Russian Federation Country Study. A Public Finance Perspective

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RUSSIA FEDERA IO COU RY S UDY A PUBLIC FI A CE PERSPEC IVE Rya Grace rgrace@i dia a.edu Dmi ri Masli che ko dmi ri@mailroom.com David Lamp dlamp@i di a a.eduPoli ical Backgrou d he separa io of powers which exis ed u der he Sovie co s i u io was esse ially a my h. A Russia accura ely charac erized he rela io ships ha exis ed be wee par y, s a e a d socie y as, . he s a e absorbed he socie y, he Par y absorbed he s a e, a d he Par y appar chiks, he ome cla ure u der he o ali aria leadership of he Secre ary-Ge eral absorbed he Par y." Bo h legisla ive a d judicial bra ches served as rubber s amps" o he Presidium of he Supreme Sovie which u like he Supreme Sovie i self was co s a ly i sessio . he developme of poli ical reform i he la e 1980s weake ed he par y's co rol over he reig s of power. he devolu io of power from he Presidium occurred hrough he crea io of he office of he Preside which received he execu ive powers while he legisla ive powers were assig ed o Co gress of Peoples Depu ies. he judicial bra ch also achieved higher visibili y duri g he la e Sovie period hrough he crea io of he Commi ee o Co s i u io al Supervisio . he Sovie U io 's collapse i 1992 i roduced radical cha ges i o all aspec s of Russia socie y. Russia has li le experie ce wi h democracy i a y form. Wi hou a s ro g democra ic radi io , i should o be u expec ed ha i s abili y would develop i all aspec s of Russia life. he role of gover me al fi a ce i pos - Sovie socie y is o excep io . Compe i g expla a io s exis for Russia's ravails bu a shared rai of ma y hem is he dis ribu io of power a he federal level a d he rela io ship be wee he federal a d sub- a io al levels of gover me . Poli ical problems did o ake lo g o develop i he Russia Federa io af er he USSR's dissolu io . A he federal level, he crea io of he prese co s i u io is o e cause of he i s abili y which plagues Russia oday. Af er wi i g a a io al refere dum o Augus 15, 1993 i which he elec ora e was asked o e dorse he Yel si 's reform policy, he co ve ed a co s i u io al assembly o ra ify his versio of he ew co s i u io . hree draf s were i co e io o replace he co s i u io u der which he Sovie U io was omi ally ruled. O her ha Yel si 's co s i u io which became he o e impleme ed, he wo o her varia s were he commu is draf which advoca ed a s ro g Presidium of he Supreme Sovie wi h a chairma who had similar powers o he posi io of Ge eral Secre ary duri g he Sovie period a d he Rumya s ev draf which co ai ed pla s o res ric execu ive power a d gra he legisla ive body wide powers. Yel si 's draf advoca ed he exac opposi e of he aforeme io ed pla s wi h wide powers o he execu ive a d mi imal power delega ed o he legisla ive. Af er he Duma rejec ed Yel si 's order o dissolve, he ordered mili ary roops o forcefully evacua e he buildi g--which hey did by shelli g i . Briefly, he preside is he pro ec or of he co s i u io , huma righ s, a d civil liber y. I order o pro ec he co s i u io a d he aforeme io ed righ s, he co s i u io gra s he preside wide i ju c ive a d declara ive powers. he former powers co sis of he preside 's abili y o use "co cilia io procedures o resolve dispu es be wee he federal gover me a d he gover me s of he co s i ue subjec s a d dispu es be wee he various subjec s of he federa io ."

A hree s age procedure exis s for he adjudica io of dispu es bu his abili y o suspe d legisla io af er i is submi ed o he appropria e cour " which he deems o be i viola io of he co s i u io is co sidered by ma y as i appropria e for a fledgli g democracy. he Preside also has he power o issue decrees a d orders which are superior o he laws of he gover me as lo g as he decree or order does o viola e he co s i u io . Fur her, he preside has he abili y o appoi impor a member of his gover me wi hou co se for he Duma a d has sole power o appoi a d remove he comma d s ruc ure of he Armed Forces. I regards o he legisla ure, he preside has he abili y o dissolve he Duma if i passes wo o-co fide ce vo e i he Russia gover me wi hi hree mo hs of each o her a d if i rejec s hree preside ial omi ee for Chairma of he Russia gover me . Al hough here are limi a io s of he preside 's abili y o dissolve he Duma, i remai s a po e ial weapo agai s a co e ious parliame ha affec s every aspec of public fi a ce. he power of he legisla ive a d judicial bra ch are limi ed i rela io o he execu ive. Russia's judicial sys em co sis s of a several cour sys ems ha have differe spheres of federal/ a io al jurisdic io ." he mos visible cour is he Co s i u io al Cour which has he righ o review he co s i u io ally of all federal laws, preside ial orders a d degrees, legisla io of gover me , a d u ra ified rea ies. Challe ges o he aforeme io ed areas mus be brough by i dividuals wi h s a di g. Al hough he Co s i u io al Cour 's power seems vas , he preside 's expa sive powers a d lack of civil rela io s be wee he differe bra ches makes he Cour 's u iliza io of his power suspec . Federal law a d federal co s i u io laws are he wo ypes of laws which exis i he Russia Federa io . he la er is co sidered superior o federal laws. he procedure for e ac me differ i each case. O ce a bill is passed i mus prese ed o he preside wi hi five days of he passage by he parliame . he preside he has four ee days o rejec he law. I order o ve o he federal law, a wo- hirds majori y mus be gai ed i bo h par s of he legisla ive assembly. I he case of federal co s i u io al law, hree quar ers of he Federa io Cou cil a d wo hirds of he Duma mus approve i for e ac me . he co s i u io does o describe a y righ for he preside o ve o federal co s i u io al laws. Accordi g o Ar icle 106 of he Russia Co s i u io , laws i regard o he followi g area mus be vo ed upo by he Federa io Cou cil: he federal budge , federal axes a d levies, foreig curre cies, cus om regula io , a d curre cy issua ce. Budge i g Rece ly, he Duma rejec ed he gover me 's firs draf of he budge . Depu ies were divided over he size of he projec ed federal budge defici , which was se a 95.4 rillio rubles or 3.5 perce of G P. Whe he budge is rejec ed by he Duma, he gover me has 20 days o revise a d re-submi he budge . If differe ces exis be wee he gover me 's proposed budge a d he Duma's, a op io exis s o crea e a commi ee o reco cile heir disagreeme s. he Duma rejec ed he gover me 's proposed 1997 budge i Oc ober 1996 a d did o op i i ially for such a commissio .

If o budge agreeme is reached, parliame would be forced o pass mo hly or quar erly budge s which would cause co fusio hroughou he eco omy. Si ce he i i ial rejec io however, a reco cilia io commissio (i which bo h houses of parliame a d he gover me are represe ed), has bee worki g o a ew versio . he reco cilia io commissio is due o have a fi al mee i g o Wed esday, wi h he Duma givi g he budge a ew firs readi g o ovember 20 or 21. here is o legal framework o cover he failure o pass he budge , bu parliame has faced he problem every year of Russia's i depe de ce excep 1996 a d has i he pas approved emporary budge s. he work of he reco cilia io commissio is bei g draw ou because ei her he commu is majori y i parliame or he gover me wa s o ake respo sibili y for maki g a decisio o he budge . Russia is ryi g o keep o a small defici i 1997 u der pressure from he I er a io al Mo e ary Fu d, bu he Duma is eager o i crease budge spe di g o a s arved eco omy. Reform mi ded depu ies wa a lower budge defici o achieve lower credi ra es--which hey say are vi al for eco omic grow h bu which are kep high hrough heavy gover me borrowi g. he dilemma is ha he commu is s i he parliame wa o i crease spe di g a d as a majori y hey ca block impleme a io of a y budge bill. axa io Russia's ax sys em is a exercise i frus ra io for bo h Russia s a d foreig ers. he problem arises because i seems ha ma y axes spri g ou of he blue a d carry heavy re roac ive pe al ies" which are of e hree imes he ax amou due. Russia ax reform is difficul ow because he gover me despera ely eeds mo ey a d has li le room o ma euver si ce reve ues are s a ic a d low. he budge ake, bo h federal a d regio al, came i a jus 27.3 perce of GDP, compared o 50 perce i he Czech Republic a d 47.7% i Pola d Russia's budge defici has bee arrowed i rece years, bu his o ly bee achieved by cu i g back o expe di ures i real erms, almos 50 perce from 1993 o 1995. Like he U i ed S a es, Russia has a hree- iered sys em of axa io . Federal axes are e forced by Parliame , regio al axes e forced by he regio al cou cils, a d local axes e forced by he local au hori ies. U der he exis i g sys em, very li le coordi a io ca be fou d be wee he hree levels of gover me which causes serious ax policy problems. I a 1993 decree, regio al a d local au hori ies were give he power o decide o ypes a d sizes of axes for heir jurisdic io s. he hope was ha au hori ies a each level, bei g respo sible o i s ci ize s, would ac wi hi reaso able limi s. Local au hori ies, seei g a way o i crease reve ue, devised more complica ed a d exo ic axes. here are 150 locally imposed axes wi hi he Federa io . hey were compe i g who would i ve he more i eres i g axes a heir respec ive levels--for example a ax o grazi g ca le. ax Code he Russia ax sys em is very complica ed. he firs wo sec io s of he ew code have 416 ar icles which are co ai ed i more ha 100 pages--a d his is jus a he overview of ge eral pri ciples. I a effor o improve ax law, a ew draf of ax code was prese ed o he Russia parliame i February 1996. Apar from laws, he ax regime is regula ed by ma y o her docume s.

союз international Astronomical Union Международный геологический конгресс International Geological Congress Международный институт государственных финансов International Institute of Public Finance Международный институт мира International Institute for Peace Международный институт печати International Press Institute Международный институт сельского хозяйства International Institute of Agriculture Международный комитет исторических наук International Committee of Historical Sciences (ICHS) Международный комитет Красного креста International Red Cross Committee Международный комитет мер и весов International Bureau of Weights and Measures Международный комитет по научной организации руководства предприятиями International Committee of Scientific Management Международный комитет славяноведов International Commission for Slavonic Studies Международный кооперативный альянс (МКА) International Co-operative Alliance Международный математический союз International Mathematical Union Международный научный радиосоюз International

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