Tax potential of regions as the basis of the budget system
Abstract The relevance of the research topic is determined by the importance and role of regions in the country`s economy in the current conditions characterized by unforeseen sanctions from the West against the Russian economy. The research purpose is to study the tax potential of the regions, its role in the formation of regional budgets and budgets of the budgetary system of the Russian Federation. The article uses methods of analysis and synthesis, grouping, generalization, comparison, tabular and a number of others, data from Rosstat, the Ministry of Finance, and the Federal Tax Service of Russia are used as an information source. The study established the strengthening of the centralized nature of the distribution of tax revenues, which does not create conditions for increasing the tax base, increasing entrepreneurial activity and developing territories. Currently, the most important task for the regions is to ensure a decent standard and quality of life for the population, which cannot be achieved without a certain material and technical base formed from their own sources, and not at the expense of an outdated system of gratuitous receipts from the federal center, which only covers budget deficits, but does not contribute to the successful development of the regions. The most important problem of regional budgets remains the uneven allocation of tax potential, which is confirmed by the analysis of the formation of regional budgets in the context of federal districts carried out in the article. There is a need to develop at the state level a unified methodology for determining the tax potential of the region.
Keywords: tax potential, tax revenues, budget, consolidated budget of the constituent entities, federal districts, gratuitous revenues, indirect taxes, payment for natural resources.
Highlights:
♦ gross regional product (GRP) - gross value added created by residents of the region, the tax potential of the region does not include the entire amount of created tax revenues related to the created GRP, but only the amount of taxes credited to the regional budget, which distorts the essence of the indicator;
♦ the amount of tax potential does not correspond to the spending obligations of the regions;
♦ tax revenues generated in the region are not included in the region`s tax potential, but are returned to the region`s budget through gratuitous revenues;
♦ in conditions of increasing raw material orientation of the budget system, the predominance of indirect taxes, there is a high degree of centralization of tax revenues in the federal budget;
♦ the tax potential of the regions does not contribute to increasing budget system revenues, the share of taxes in GDP does not increase;
♦ the tax potential of municipalities, which are an integral part of the regions, does not include taxes calculated on revenue (VAT, income tax), which does not stimulate production growth.
Nikolay Z. Zotikov - Chuvash State University named after I.N. Ulyanova, Cheboksary, Russia