AN OVERVIEW OF THE RUSSIAN ROAD FINANCING SYSTEM

The maintenance of highways in Russia has been seriously neglected in recent years with widespread adverse effects on the general economy. Both the federal road network and the regional roads have deteriorated because of inadequate maintenance. As a result, there is a large backlog of road maintenance that should be undertaken as soon as possible to bring the roads up to a good condition. Historically, funds for construction and maintenance of federal roads and about 15% of regional roads (formerly designated as republic roads) came from the federal budget and earmarked road user charges, including an enterprise tax. Funding for the remaining 353,000 km of roads came from regional budgets. In April 1992, road funds were established to fund both construction and maintenance of federal and regional roads and in 1993 amendments to the Law on Road Funds earmarked specific taxes to each type of road fund. This study provides information on the Russian road network, describes the road funds at the federal and regional levels, and outlines possible changes in the road financing system, along with the weaknesses of these funds. The cost of overcoming this backlog during the period 1994-2000 is estimated at $4.8 billion (U.S.)/yr, whereas the resources available to the federal and regional road funds are roughly $2 billion annually, thus a deficit of about $2.8 billion/yr. Possible measures to overcome this deficit would include increasing collection of road user charges and raising financing by multilateral and bilateral agencies.

Language

  • English

Media Info

  • Features: Figures; References; Tables;
  • Pagination: p. 36-43
  • Monograph Title: Transportation finance, training, strategic management, and economic analysis
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00714961
  • Record Type: Publication
  • ISBN: 0309061628
  • Files: TRIS, TRB, ATRI
  • Created Date: Dec 21 1995 12:00AM