Differentiation of Regions of the Russian Federation as to Level of Budget Revenue Potential of Municipal Entities
Differentiation of Regions of the Russian Federation as to Level of Budget Revenue Potential of Municipal Entities

Summary/Abstract: The article deals with the notion “budget revenue potential” of region. Potential of local budgets in the regions of the RF is analyzed and transfer- dependent model of economic behavior of municipal regions is determined – for revenues from own production and financial and commercial activities of municipal entities are very low, and budget revenues are too centralized. The significance of financial stability of municipal entities for provision of socio-economic development of region is emphasized. It is shown that financial state of municipalities is determined by the mechanisms of leveling of budget provision on the basis of inter- budget transfers, their perfection and objectivity. The main problem of local administration is determined – chronic deficit of financial assets for current needs and development of municipal entity, which is peculiar for most countries. For the purpose of complex characteristics of budget of the subject of the Russian Federation and its economic potential, it is offered to calculate such indicators as the level of tax provision, independence, and transfer dependence of budget. Direct dependence of effectiveness of territorial budgets on the level of decentralization of the budget process is shown. The conclusion is made on significance of fiscal decentralization in the system of management of state and municipal finances. Experience of Stavropol Krai in regulation of budget relations and increase of effectiveness of budget expenditures is provided.

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