Influence of budget policy on economic development of regions

Abstract

The article deals with the economic state of regions in a federal state. The economic development of regions is directly related to its location, area, development of the institutional environment, urbanization of the region, the availability of minerals and so on. It is almost impossible to achieve the uniform development of regions on the territory of the entire country without the participation of the state. The division of regions into donors and recipients presupposes various forms of state participation in the economic and social development of a particular region. Since the 1990s, various schemes of financial participation of the state in the development of the regions have been applied in the Russian Federation, which was facilitated by the budgetary and fiscal policy of the state that operated for certain periods of time. The centralization of finance, regularly changing methods of equalizing the budgetary security of the subjects of the Russian Federation did not always contribute to the growth of the tax potential, the economic independence of the regions, and the exclusion of "budget dependency". The author made a detailed analysis of the budget and tax policy for the period, an analysis of the economic condition of the regions, an analysis of the dynamics of the state debt of regions, the role of budgetary policy in the growth of tax and non-tax revenues. It is suggested that when developing the state financial policy the main guideline is to consider the stimulating factors of the financial self-sufficiency of the region, with the aim of increasing the tax potential and attracting investments.