Assessment of Financial Independence and Budget Sustainability of the Russian Far Eastern Regions

Abstract

In the context of economic and political instability, assessing the fihealth of the subjects of the Russian Federation is of particular relevance, since its results can provide valid information on the development trends of the regions. However, nowadays the government does not examine the fi health of its subjects; the Ministry of Finance of the Russian Federation only assesses the level of budgetary security and debt sustainability of the Russian federal subjects. The paper presents new theoretical approaches to the concepts of «fi independence»,«budget sustainability», offers new methods of assessing fi independence and budget sustainability of the subjects of the Russian Federation, and applies them to the regions of the Russian Far East. The paper examines the fi independence and budget sustainability of the subjects of the Russian Federation included in the Far Eastern Federal District. The fi data of 2022-2023 let the subjects be considered relatively fi healthy and budgetary sustainable. The exception is the Sakhalin Region, which, according to specifi areas of assessment, is considered a region with absolute fi independence and budgetary sustainability. However, some regions (the Jewish Autonomous Region, the Magadan Region, the Kamchatka and Transbaikal Territories, and the Republic of Buryatia) take high fi risks due to their dependence on gratuitous donations from the federal budget and a small property stock, selling of which can be used to ensure budgetary sustainability.