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Assessment of the Budgetary Security of the Arctic Regions in Order to Equalize Incomes and Improve the Welfare of the Population

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Studies on Russian Economic Development Aims and scope

Abstract—

The article deals with the issues of assessing the budgetary security of the Arctic regions in order to equalize incomes and improve the welfare of the population. The analysis of objective and subjective factors influencing the spatial differentiation of the Arctic regions in the framework of the ongoing state policy to equalize the budgetary provision has been carried out. A comparative analysis and assessment of the impact of indicators of the level of poverty and average monthly wages when calculating the index of budget expenditures in the context of groups of Arctic regions was fulfilled. Based on the Budget Equalization Methodology, taking into account the innovations introduced since 2023, an assessment of the change in the index of budget expenditures in the Arctic regions is made. A tendency to change approaches in the state policy of equalizing the budgetary provision of the Arctic regions in favor of subjective factors of spatial differentiation, taking into account the financial and economic conditions, the prevailing disproportions in the socio-economic development of the regions, the heterogeneity of budget obligations and budget financing, has been revealed. Taking into account the need for the impact of the industrial development of the Arctic on improving the quality of life of the peoples of the North and saving people, it is proposed to strengthen the involvement of mining companies in solving the socio-economic problems of developing the Arctic territories and supporting the local population based on the social investment of such companies in their areas of activity.

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Notes

  1. Decree of the Government of the Russian Federation of November 22, 2004 No. 670 (as amended on December 29, 2022) On the Distribution of Subsidies for Equalizing the Budgetary Security of the Constituent Entities of the Russian Federation (together with the “Methodology for distributing subsidies for equalizing the budgetary security of the constituent entities of the Russian Federation”).

  2. Does TORSER help the Arctic regions https://rg.ru/2020/10/27/reg-szfo/pomogaiut-li-toser-arkticheskim-regionam.html (date of access: February 18, 2023).

  3. Inequality and Poverty https://rosstat.gov.ru/folder/13723#. Accessed April 23, 2023.

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Funding

The study was supported by the Russian Science Foundation, project no. 22-28-01010 “People’s Saving as a Basis for Safe Socio-Economic Development of Russian Regions: Analysis, Forecast and System of Measures for Localization and Neutralization of Threats.”

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Authors and Affiliations

  1. Ammosov North-Eastern Federal University, 677027, Yakutsk, Russia

    R. R. Nogovitsyn

  2. Financial and Economic Institute, Ammosov North-Eastern Federal University, 677027, Yakutsk, Russia

    T. S. Sofronova

  3. Cherepovets State University, 162600, Cherepovets, Russia

    E. V. Potravnaya

Authors
  1. R. R. Nogovitsyn
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  2. T. S. Sofronova
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  3. E. V. Potravnaya
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Corresponding author

Correspondence to E. V. Potravnaya.

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Nogovitsyn, R.R., Sofronova, T.S. & Potravnaya, E.V. Assessment of the Budgetary Security of the Arctic Regions in Order to Equalize Incomes and Improve the Welfare of the Population. Stud. Russ. Econ. Dev. 34, 660–668 (2023). https://doi.org/10.1134/S1075700723050118

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  • DOI: https://doi.org/10.1134/S1075700723050118

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