Budget revenues in the regions of the Russian Far East: issues and opportunities

In the emerging new economic conditions, the role of the Russian Far East as a critical element in the implementation of the Eastern vector of the development of the Russian economy is growing. Increased attention to the Far Easter uncovers opportunities for the growth of its investment attractiveness and raises issues of economic and social development of the Far-Eastern territories. An essential element of regional development is the conditions of the budgetary systems of the Far-Eastern regions – their ability to develop their own sources of revenue and increase their self-sufficiency. The article considers the current state and problems of tax and non-tax revenues of budgets in the regions of the Russian Far East. The Far-Eastern regions are significantly differentiated in terms of the size and structure of budgetary revenues, which leads to different reactions to changes in the economic situation and tax regulation. Over the past ten years, the regions of the Russian Far East have demonstrated modest growth in tax revenues, which is a joint result of both economic development trends and the tax policy pursued by the state. An estimate of the size of shortfalls in revenues of regional budgets for corporate income tax as a result of preferential tax regimes is assessed. The dynamic development of the economy’s resource and raw materials sector enabled a significant tax potential in the macro-region that can be used as a source of additional financial support for regional budgets and the formation of “development budgets”. Impacts on the budgets of the Far-Eastern regions in the case of partial decentralization of the federal part of the mineral extraction tax are considered.