Fiscal Policy for Inclusive Sustainable Development: Analysis of EAEU and CIS Member States

1. Comments on: “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Vladimir Tiutiuriukov,Ph.D., ACCA, National Research University Higher School of Economics, School of Policy and Administration Moscow, 2019

2. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Background • In a development context, fiscal policy serves both as an instrument of macroeconomic stabilization and as an instrument to achieve growth and poverty reduction objectives. Development Committee, World Bank – IMF • Following on some chapter sections: • Fiscal policy in EAEU / CIS Member States • Trends in fiscal policy

3. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Fiscal policy in EAEU & CIS Member States • Formalized tax policy documents: • Enhancing fiscal function of taxes • Improve efficiency of tax reporting • No coherent use of tax as economic instrument • Lack of transparent budget reporting • Visible non-tax budget revenue • Features in Russia: • Emphasis on expenditure (“national projects”) rather than on tax leverage • Use of parafiscal payments • Features in Central Asia: • Targets of debt traps • Prone to white elephant projects

4. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Fiscal policy in EAEU Member States • State debt to GDP ratio . • . • . Финансовая статистика Евразийского экономического союза. Оперативные данные за2018 год. Статистический сборник; Евразийская экономическая комиссия. –Москва: 2019.

5. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Fiscal policy in EAEU Member States • Tax revenue to GDP ratio Финансовая статистика Евразийского экономического союза. Оперативные данные за2018 год. Статистический сборник; Евразийская экономическая комиссия. –Москва: 2019.

6. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Fiscal policy in EAEU Member States • Structure of consolidated budget revenues Calculated by author based on reports of budget execution.

7. Comments on “Fiscal Policy for Inclusive Sustainable Development: The Role of Public Expenditure and Progressive Taxation” Trends in fiscal policy • Tax cuts: • Check, plus flat rates except for Armenia • No tax exempt income threshold in Russia • VAT: • Available in all EAEU Member States, modelled after EU • Range from ~10% to over 30% of budget revenues • No additional indirect tax burden on luxury goods • Privatization, PPP and fiscal positions: • Large share of Chinese and other foreign investors in Central Asia • Virtual nationalization in Kazakhstan and Russia • Ambiguous fiscal effect

8. Moscow, 2019 Vladimir Tiutiuriukov, vtiutiuriukov@hse.ru