The tax and budgetary system of the Donetsk People's Republic: analysis of development trends and paths for improvement
Keywords:
fiscal system, budget revenues, budget expenditures, budget self-sufficiency, investment tax creditAbstract
The article is devoted to analyzing the latest trends in the development of the DPR's fiscal system. The results show that this system, which has been in place since 2023, is already largely harmonized with the tax legislation of the Russian Federation, including a range of tax breaks and preferences designed to address the most pressing economic and social issues. Based on an analysis of the dynamics of the main indicators of the DPR budget, it was concluded that the prevailing trend in recent years has been a course towards achieving budgetary self-sufficiency for the Republic by expanding the tax base and increasing its own sources of income, while gradually reducing gratuitous assistance from the federal center. In practice, this may mean a reduction in funding for a number of budget items. In order to prevent this from having a negative impact on the pace of economic development, it is necessary to strengthen the effect of selective tax incentives to create and support regional growth poles. These include regional investment tax credits, which should be based on the best practices of the constituent entities of the Russian Federation and used to develop high-tech economic activities with the greatest multiplier effect for the republic's economy.
Downloads
References
Vishnevsky V.P., Matyushin A.V. & Stelmakhova N.V. (2025). Tax Regulation of Economic Growth in the Context of Post-Crisis Recovery: Problems and Prospects. Studies on Russian Economic Development, 36, 1, 66-76. https://doi.org/10.1134/S1075700724700539
Goncharenko L.I., Vishnevskiy V.P., Gurnak A.V. (2020). Features of tax regulation in the context of the fourth industrial revolution. Economics, taxes & law, 13(1), 114-122. [In Russian] https://doi.org/10.26794/1999-849X‑2020-13-1-114-122
Kireeva E.F., Pozdnyaev A.S. (2024). Taxation in Post-Conflict Regions: Practice of Ensuring Stability. Bulletin of Baikal State University, 34, 3, 418-425. [In Russian] https://doi.org/10.17150/25002759.2024.34(3).418-425
Zotikov N.Z. (2023). Budgetary and tax policy at the present stage and its role in forming budgets of different levels. MANAGEMENT (Russia), 11(4), 35-44. [In Russian] https://doi.org/10.26425/2309-3633-2023-11-4-35-44
Kosov M. E. (2025). Proposals for the development of budgetary federalism in the Russian Federation in the context of current trends in the spatial and economic development of the state. Bulletin of economic security, 1, 201-207. [In Russian] https://doi.org/10.24412/2414-3995-2025-1-201-207
Pinskaya M.R., Tikhonova A.V. (2017). Fiscal policy of the Russian Federation: Answers to the main questions. Regional Economics: Theory and Practice, 15, 9, 1689-1709. [In Russian] https://doi.org/10.24891/re.15.9.1689
Shemyakina, N., Ponomarenko, A. (2023). Investment aspects of strategic development of the production and economic complex of the Donetsk People’s Republic. Vestnik of Institute of Economic Research, 3 (31), 28-39. [In Russian]
Polovyan A.V., Sinitsyna K.I. (2024). Key Aspects of the Integration of the Donetsk People’s Republic into the Economic Space of the Russian Federation. Russia: Society, Politics, History, 2 (11), 146-172. [In Russian] https://doi.org/10.56654/ROPI-2024-2(11)-146-172
Polovyan A.V., Sinitsyna K.I. (2024). State policy on the development of entrepreneurship as the basis for ensuring the economic growth of the Donetsk People's Republic. Bulletin of Taganrog Institute of Management and Economics, 2(42), 50-58. [In Russian]
Manzhula T.Yu., Verich Yu.L. (2025). Using the digital ruble in the budgetary process of the Russian Federation. Vestnik of Institute of Economic Research, 2(38), 209-221. [In Russian]
Baiardi D., Profeta P., Puglisi R., Scabrosetti S. (2017). Tax Policy and Economic Growth: Does It Really Matter?. Munich: Center for Economic Studies and ifo Institute (CESifo) https://hdl.handle.net/10419/155585
Fjeldstad O.H., Bоås M., Bjоrkheim J.B., Kvamme F.M. (2018). Building tax Systems in Fragile States. Challenges, Achievements and Policy Recommendations, 42. https://www.semanticscholar.org/paper/Building-tax-systems-in-fragile-states.-Challenges%2C-Fjeldstad-Bøås/7707c053878eae6d552c3a63e1e003851210e8ef
Panskov V.G. (2019). Tax Regulation as an instrument of economic recovery. ETAP: Economic Theory, Analysis, and Practice, 3, 86-99. [In Russian]. https://doi.org/10.24411/2071-64352019-10091
Dolzhenkov A., Labykin A., Obukhova E. (2025). Taxes 2026: The Middle Class Faces Difficult Times. Monocle, 44, 12-15. [In Russian]
Shemiakina, N.V., Ponomarenko, A.А. (2023). Development of Interaction between the Stateand Business in Industry on the Example of Special Economic Zones. Society: Politics, Economics, Law, 12, 99-106. [In Russian]. https://doi.org/10.24158/pep.2023.12.12
Olkhovik, V.V. (2019). The Possibilities for Developing the Tax Potential of the Constituent Entities of the Russian Federation. Economy of region, 15(3), 938-951. [In Russian]. https://doi.org/10.17059/2019-3-23
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Economic Research Institute Journal
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 Unported License.
