Interregional Socio-­Economic Disparities in Russia: Approaches to Measuring and Mitigating Differences

Abstract

The purpose of the study, the main results of which are presented in this article, is to improve methodological approaches to measuring and mitigating inequality in Russian regions in terms of socio-economic development. There is no single methodology for assessing the unevenness of spatial development because scientists assess interregional differences according to a variety of indicators, and the results of such assessments vary greatly. In order to measure the differences in the level of socio-economic development of regions, it is proposed to use the indicator 'the ratio of the region's fiscal capacity in terms of tax and non-tax revenues to the average Russian level', which reflects the state of the economic potential of the regions, as well as the level and quality of life of the population living in their territory. The study assessed the changes in the field of spatial development of the Russian Federation that occurred in 2005–2022, on the basis of the budgetary provision of regions with their own income, the results of which indicate that the lagging subjects are approaching the average level of this indicator in the country. However, the impact on the population’s standard of living is not always pronounced. The reasons for this may be the insufficient amount of financial assistance to the lagging subjects from the federal center and / or the low effectiveness of the socio-economic policy implemented by the executive authorities of the regions. The article formulates proposals for making changes in the Spatial Development Strategy of the Russian Federation (in terms of defining objectives), improving the methodology for allocating subsidies to equalize budget provision (in terms of some calculations). The following indicators are suggested to assess the effectiveness of the activities of regional executive authorities: budgetary coverage by own revenues of the subject of the Russian Federation; debt burden of the subject of the Russian Federation; poverty level of the region's population.