Ilyin V.A. Private Interests Constrain Budget Revenues. // Economics of contemporary Russia 2014.
¹2 (65) Ñ.46-53.
The present-day state of affairs in Russia contributes
to the increasing export of metallurgical corporations’ profits and the revenues
of owners and chief executives. As a result, the share of revenue that regional
budgets get from the corporations is decreasing in relative and absolute terms.
The article presents the main results of a research carried out by the
Institute of Socio-Economic Development of Territories of RAS; the purpose of
the research was to study the influence exerted by the interests of the owners
of the largest Russian metallurgical corporations on the economy and social
sphere in the regions, where the main production facilities of these
enterprises are located. The study covers the Vologda, Lipetsk and Chelyabinsk
oblasts that have the largest iron-and-steel works, which produce almost 2/3 of Russia’s total output of steel and rolled
metal. The research seeks to determine the dynamics of quantitative parameters
of the corporations’ financial performance and their connection with the
formation of consolidated budgets in the regions specializing in metallurgy,
and their relationship with the federal budget. The research attaches
considerable importance to the study of mechanisms, which help satisfy the
increasing demands of the owners and which, at the same time, reduce the
owners’ input in the socio-economic development of territories. The article in
its conclusion provides some measures to solve the acute issues of territories’
development. These measures include the abandonment of the economic development
model based on raw materials, which, under current conditions, leads to the
accumulation of wealth in the hands of small elite groups; and the focus on the
priority development of industries with progressive technology.
Keywords: regional
economy, ferrous metallurgy, oligarchic capital, financial performance,
consolidated budget, crisis of regional budgets.
