Sugarova, I. V. The Role of Regional Taxes in Establishing the Revenue Basis of the Budgets of the Russian Federation Constituents (the Case Study of the Republic of North Ossetia – Alania)

Abstract: The article studies the role of regional taxes in establishing the revenue basis of the budgets of the Russian Federation constituent. Relevance of this research is confirmed by the great number of discussions that exist in the economic theory and practice and concern support of regional authorities with revenues. Certainly, one of such discussions is caused by the fact that the share of regional taxes in the revenue structure is too low which raises a question about additional financing of regional budgets. This problem is growing especially important in terms of the effective system of inter-budget relations that is based on a well-balanced delineation of profitable and expendable budget authorities between different levels of the Russian Federation budget system. The author of the article performs a comprehensive analysis of the dynamics, composition and the structure of tax revenues of the republican budget in the Republic of North Ossetia – Alania. In the course of this analysis the author applies the methods of analysis, synthesis and comparative analysis. Based on the results of the analysis carried out the author has discovered that so far regional taxes haven’t played a significant role in establishing the revenue basis of the budget in the Republic of North Ossetia – Alania and federal taxes have been prevailing. The author of the article provides arguments proving that the regional taxation needs further development with regard to the following targets: to increase economic capacity, to encourage investment activity and to increase control over payment of regional taxes. The author makes a conclusion about the need for improvement of the mechanism of establishing the revenue basis of the budget by the means of a better provision of regional authorities with their own profitable sources and developing incentives for encouraging economic interest towards accumulation of profits in the region.

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