FINANCIAL STABILITY OF THE REVENUE BASE OF REGIONS’ BUDGETS: STATE AND ASSESSMENT OF THE EFFECTIVENESS OF ITS MANAGEMENT

Abstract

Financial stability of the revenue base of the region’s budget can be defined as the ability of the budget to ensure the realization of the entire range of expenditure responsibilities of public authorities’ bodies. The analysis of the current state of territorial public finance made it possible to reveal the key problems of the stable filling the treasury of North-West Federal District (NWFD) regions: the preservation of large degree dependence of the formation of the revenue side of regional budgets from the federal centre; the growth of the deficit of the own revenue resources for the proper implementation by the territories of the expenditure obligations, assigned to the regions; multiple growth of returning to the federal budget of unspent targeted transfers as a result of the late submission of financial assistance to regions, increasing risks of insolvency of territories. As an effective tool for the evaluation of the governing the financial stability of the revenue base of the territorial budgets may be used the model of «managing for results». Testing of the proposed method on materials of NWFD regions revealed the reduction of the effectiveness of management of financial stability of the revenue base of regional budgets as a result of preservation of considerable financial dependence on the federal gover n ment, exacerbating the problems of i nter governmental budget interaction, g rowi ng severity of the regions’ debt crisis. The investigation made it possible to determine the main directions of improving the effectiveness of management of financial stability of the revenue base of regional budgets: increasing the regions’ financial autonomy, the modernization of intergovernmental budget interaction, the perfection of the debts’ policy and the development of the revenue potential of the territories.