Decentralization of tax revenue as a necessary condition for regional development

Currently, the most controversial issue is the issue of ensuring the optimal distribution of powers and finances between various budgets of the budget system, which raises the issue of establishing the optimal level of financial decentralization. The latter involves creating incentives for authorities to effectively use the tax potential of territories by increasing the motivation of economic agents to develop entrepreneurial activities. The prospects for the development of regional and municipal economies and the social sphere largely depend on the amount of tax revenue credited to their budgets, reflecting the degree to which the tax potential of the territories is realized. The research object is the current tax system. The purpose of the study is to identify the impact of the existing level of centralization of tax revenues on the state of regional and local budgets and the development of territories.. The research hypothesis is that increasing the socio-economic development of regions through the effective development of their tax potential is possible only with a moderately decentralized system of distribution of tax revenues. The research methods include analysis and synthesis, grouping, generalization, the method of studying phenomena in dynamics, tabular, etc. Based on official data from Rosstat, the Ministry of Finance, the Federal Tax Service, the scale of centralization of tax revenues in the country as a whole and in the context of federal districts is considered. The study substantiates the need for decentralization of tax revenues, and proposes options for decentralization, in particular, by establishing standards for VAT deductions to regional budgets. The practical significance of the study lies in the fact that its results can be used in the practical activities of government authorities when carrying out tax and budget policy.

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