Budget Potential of the Region: Attributive Features and Methods of Assessment

Abstract

Purpose: The purpose of the article is to clarify the attributive features of budget potential of the region and to develop a method for its assessment, which allows to reflect conditions and prospects of development of regional economics and can provide practical support to financial authorities of state bodies. Design/Methodology/Approach: In conditions of systemic transformation of the public sector, the problem of efficient diagnostics of budgetary capacity becomes one of the keys in financial science and practice that determines the significance of development of scientific approaches. Findings: In connection with the urgency of the problem of development of budget potential of the regions, determining prospects of growth of regional budget profit and improvement of financial independence of regions, the article on the basis of determining qualitative and quantitative characteristics of budget potential of the region offers the authors‘ method of its assessment, which can be used to substantiate real income opportunities of the subject. Practical implications: The proposed methods, which take into account structuring budget potential of the region, is based on the use of the main financial indicators that reflect general trends and prospects of the regional economics, and provide more accurate determination of income opportunities of the subject of the Russian Federation Originality / Value. Assessment of projected budget potential will determine income potential of regions in the process of budget planning. This indicator is an information basis for preparation of budget forecasts and an indicator of effectiveness of budget policy of the region.