2023 (20), №4

Budget Investments in Municipal Development Strategies in Russia

For citation: 

Pasynkov, A. F. (2023). Budget Investments in Municipal Development Strategies in Russia. AlterEconomics, 20(4), 876–893. https://doi.org/10.31063/AlterEconomics/2023.20-4.7


In recent years, in Russia, strategies for the socio-economic development of municipalities have become widespread, following the enactment of Federal Law No. 172-FZ «On Strategic Planning in the Russian Federation» in 2014. However, a prevalent issue in these strategies is the lack of an investment plan utilizing budget resources, which is essential for achieving key social indicators. Sources of investment financing are often either not included in the text of strategies or remain unspecified. Hence, the primary aim of this study is to reveal the factors contributing to the mismatch between the investment plans outlined in the strategy for the socio-economic development of municipalities and the actual capabilities of territories to secure the necessary financial resources. The study systematizes and compares empirical data to explore the socio-economic deve­lopment strategies of 15 municipalities in Sverdlovsk region. The goal is to shed light on the details of analy­zing and forecasting the financial resources of these territories. The results suggest that these characteristics are generally underdeveloped in most areas. To assess the real capabilities of municipalities in budgetary investments, data on capital investments in 2022 were analyzed, considering funding sources from federal, regional, and municipal budgets, both in gross and relative terms (per resident of the study area). On average, municipal budgets’ own funds allocated for investment constitute only 15 % of all budget resources earmarked for these purposes. Notably, the primary contributors to capital investments in Sverdlovsk region are funds from the regional (over a half) and federal budgets (just under a third). However, the distribution of these funds among municipalities is highly uneven, with the majority being directed toward the capital of Sverdlovsk region. The insights from this study can be valuable for government and municipal authorities in effectively implementing strategic planning and forecasting.

PDF full
Downloaded: 35

Aleksey F. Pasynkov — Cand. Sci. (Econ.), Associate Professor, Head of the Sector of Strategic and Financial Development, Institute of Economics of the Ural Branch of the Russian Academy of Sciences; https://orcid.org/0000-0001-5186-4130 (29, Moskovskaya St., Ekaterinburg, 620014, Russian Federation; e-mail: monografia@mail.ru).

Antipin, I. A. (2018). Strategic priorities in the development of large Russian cities. R-economy, 4 (4), 144–150. https://doi.org/10.15826/recon.2018.4.4.019

Antipin, I. A., & Vlasova, N. Yu. (2022). Otsenka strategicheskogo planirovaniya v munitsipal’nykh obrazovaniyakh: metodicheskie, prakticheskie i upravlencheskie aspekty [Assessing strategic planning in municipalities: Methodological, practical and managerial aspects]. Upravlenets [The Manager], 13 (5), 67–84. https://doi.org/10.29141/2218-5003-2022-13-5-5 (In Russ.)

Antipin, I. A., Vlasova, N. Yu., & Ivanova, O. Yu. (2020). Strategicheskie prioritety upravleniya prostranstvennymi disproportsiyami sotsial’no-ekonomicheskogo razvitiya regionov Rossii [Strategic priorities for managing spatial inequalities in the socioeconomic development of the Russian regions]. Upravlenets [The Manager], 11 (6), 28–43. https://doi.org/10.29141/2218-5003-2020-11-6-3 (In Russ.)

Bochko, V. S., & Zakharchuk, E. A. (2019). Metodologiya formirovaniya obraza budushchego pri razrabotke strategii razvitiya territorii [Methodology for Formation of “the Image of the Future” in Strategic Planning]. Zhurnal ekonomicheskoj Teorii [Russian Journal of Economic Theory], 16 (4), 688–704. https://doi.org/10.31063/2073-6517/2019.16-4.7 (In Russ.)

Bochko, V. S., & Zakharchuk, E. A. (2020). Individualizatsiya strategiy razvitiya gorodov. Na primere Ekaterinburga i Birmingema [Individualization of City Development Strategies: Case of Ekaterinburg and Birmingham]. Ekonomika regiona [Economy of region], 16 (2), 391–405. http://doi.org/10.17059/2020-2-5 (In Russ.)

Bochko, V. S., & Zakharchuk, E. A. (2023). Ot tipovykh strategiy razvitiya territoriy k ikh individualizatsii [From Standard Territorial Development Strategies to Their Individualization]. AlterEconomics, 20 (2), 376–391. https://doi.org/10.31063/AlterEconomics/2023.20-2.5 (In Russ.)

Bucci, A, & Del Bo, C. (2012). On the interaction between public and private capital in economic growth. J Econ., 106 (2), 133–152. https://doi.org/10.1007/s00712-011-0239-3

Buchwald, E. M. (2019). Institutsional’nye problemy strategirovaniya prostranstvennogo razvitiya v Rossii [Institutional Problems of Spatial Development Strategies in Russia]. Zhurnal Novoy ekonomicheskoy assotsiatsii [The Journal of the New Economic Association], 2 (42), 121–136. https://doi.org/10.31737/2221-2264-2019-42-2-6 (In Russ.)

Carboni, O. A., & Medda, G. (2011). Government spending and growth in a neoclassical model. Mathematics and Financial Economics, 4, 269–285. https://doi.org/10.1007/s11579-011-0045-2

Faludi, A. (2007). Territorial cohesion policy and the European model of society. European Planning Studies, 15 (4), 567–583. https://doi.org/10.1080/09654310701232079

Gao, H. (2019). Public land leasing, public productive spending and economic growth in Chinese cities. Land Use Policy, 88, 104076. https://doi.org/10.1016/j.landusepol.2019.104076

Kilinç, N., Yilmaz M., & Turk, S. S. (2023). Understanding the Spatial Relationship between Large Investment Decisions and Plan Changes: A Case Study of Istanbul. Journal of Urban Planning and Development, 149 (4). https://doi.org/10.1061/JUPDDM.UPENG-4489

Komarov, V. M., Akimova, V. V., Kotsyubinsky, V. A., & Zemtsov, S. P. (2021). Sravnitel’nyy analiz podkhodov k razrabotke dolgosrochnykh gosudarstvennykh strategiy v Rossii i mire [Comparative Analysis of the Development Approaches to Long-Term Government Strategies in Russia and in the World]. Voprosy gosudarstvennogo i munitsipal’nogo upravleni [Public Administration Issues], 1, 56–74. (In Russ.)

Kozlova, O. A., & Makarova, M. N. (2018). Mezhmunitsipal’noe sotrudnichestvo kak institut strategicheskogo razvitiya territorii [Inter-municipal cooperation as an institution of strategic development of territories]. Ekonomicheskie i sotsial’nye peremeny: fakty, tendentsii, prognoz [Economic and Social Changes: Facts, Trends, Forecast], 11 (3), 132–144. https://doi.org/10.15838/esc.2018.3.57.9 (In Russ.)

Kryukov, V. A., Kuleshov, V. V., & Seliverstov, V. E. (2013). Formation of organizational and economic mechanisms for the acceleration of Siberia’s socioeconomic development. Regional Research of Russia, 3 (4), 397–404. https://doi.org/10.1134/S2079970513040059

Lapin, A. E., & Vuiko, M. B. (2019). Modeli regional’nogo razvitiya v Rossiyskoy Federatsii i investitsionnye strategii [Models of Regional Development in the Russian Federation and Investment Strategies]. Regionologiya [Regionology], 27 (1), 10–29. https://doi.org/10.15507/2413-1407.106.027.201901.010-029 (In Russ.)

Pasynkov, A. F. (2020). Compilation of regional financial balances for the ‘General Governance’ sector in the Ural Federal District. R-economy, 6 (4), 251–260. https://doi.org/10.15826/recon.2020.6.4.022

Pasynkov, A. F. (2021). Territorial’nye finansovye balansy gosudarstvennogo sektora na osnove Sistemy natsional’nykh schetov [Public Sector Financial Balances Based on the System of National Accounts]. Ekonomika regiona [Economy of region], 17 (3), 1027–1041. https://doi.org/10.17059/ekon.reg.2021-3-22 (In Russ.)

Rajkumar, A. S., & Swaroop, V. (2008). Public spending and outcomes: Does governance matter? Journal of Development Economics, 86 (1), 96–111 https://doi.org/10.1016/j.jdeveco.2007.08.003

Rivolin, U. J. (2005). Cohesion and Subsidiarity: Towards Good Territorial Governance in Europe. The Town Planning Review, 76 (1), 93–106.

Rivolin, U. J. (2008). Conforming and Performing Planning Systems in Europe: An Unbearable Cohabitation. Planning, Practice & Research, 23 (2), 167–186. https://doi.org/10.1080/02697450802327081

Romero-Ávila, D., & Strauch, R. (2008). Public finances and long-term growth in Europe: Evidence from a panel data analysis. European Journal of Political Economy, 24 (1), 172–191. https://doi.org/10.1016/j.ejpoleco.2007.06.008

Thanh, S. D., Hart, N., & Canh, N. P. (2020). Public spending, public governance and economic growth at the Vietnamese provincial level: A disaggregate analysis. Economic Systems, 44 (4), 100780. https://doi.org/10.1016/j.ecosys.2020.100780

Zhang, T., & Zou, H. F. (1998). Fiscal decentralization, public spending, and economic growth in China. Journal of public economics, 67 (2), 221–240. https://doi.org/10.1016/S0047-2727(97)00057-1

Zhikharevich, B. S., & Pribyshin, T. K. (2016). Municipal strategic planning in Russia in 2010–2014. Regional Research of Russia, 6, 267–273. https://doi.org/10.1134/S2079970516030096

Zhikharevich, B. S., & Pribyshin, T. K. (2019). Strategii razvitiya gorodov: rossiyskaya praktika 2014–2019 gg. [Urban Development Strategy: Russian Practice 2014–2019]. Prostranstvennaya Ekonomika [Spatial Economics], 15 (4), 184–204. https://dx.doi.org/10.14530/se.2019.4.184–204 (In Russ.)

Zhikharevich, B. S., & Pribyshin, T. K. (2020). The First Five Years of Urban Strategic Planning in Russia under Federal Law (2014–2019). Regional Research of Russia, 10, 202–212. https://doi.org/10.1134/S2079970520020161