Abstract
Research background: The research is based on the assumption that the sectoral structure of economy has a significant impact on the level and dynamics of sub-federal budget tax revenues. It distinguishes the following sectoral determinants of tax revenues in regions: the levels of tax return and tax absorption, inflation and economic growth in various economic activities.
 Purpose of the article: We aimed at assessment of contribution of economic activities and their determinants to the increase in tax revenues of sub-federal budgets of the Russian Federation in 2011?2015 compared to 2006?2010.
 Methods: Development of a four-factor additive-multiplicative model of the tax revenue formation in regions, application of the proportional and logarithm methods of factor analysis to assessment of contribution of various activities and their determinants to increase in tax revenues of sub-federal budgets, evaluation of inter-regional inequality of tax revenues growth based on the weighted coefficient of variation, and decomposition of this inequality using the A. Shorrocks technique.
 Findings & Value added: We identified activities that made the largest contribution to the increase in tax revenues of the Russian sub-federal budgets. We found that the inflation factor had a predominant positive effect on the growth of tax revenues, while the contribution of the economic growth factor was 4 times less; however, the situation in various activities differed significantly. Generally, changes of sectoral levels of tax return and tax absorption influenced negatively the regional tax revenues. In addition, they moved in opposite direction in the regions. Ultimately, the uneven change in tax returns and price levels in the mining and manufacturing activities of Russian regions made the greatest contribution to inter-regional inequality of the growth of sub-federal budgets tax revenues.
Highlights
The sectoral structure of economy and its dynamics have a significant impact on the formation of tax revenue of a particular region or country
We developed an authentic additivemultiplicative model that allowed us to distinguish the influence of the determinants of economic activity, including the level of tax return, the level of tax absorption, increase in production and inflation, on the growth of tax revenues of the sub-federal budgets of the Russian regions
It is important to mention our previous research (Malkina & Balakin, 2016, pp. 11–24), where, using the methods of factor analysis for the worked out DuPont-type model, we evaluated the influence of the determinants on the tax revenues in the regions of the Russian Federation
Summary
The sectoral structure of economy and its dynamics have a significant impact on the formation of tax revenue of a particular region or country. Due to the differences in income and tax structure, the share of tax revenues remaining in the constituent entities of the Russian Federation after their distribution in the budget system varies greatly. The personal income tax wholly remains at the regional level, while the profit tax is split between the federal and regional budgets (during the period under study, this proportion was 2% to 18%, respectively). The sub-federal budgets tax revenue growth depends on the change of tax rate and its sectoral composition, as well as on the pace of the total tax base, which can be likened to gross value added (GVA). The growth of GVA in regions depends on the sectoral structure of regional economies and includes two components: a rise in the price level and an increase in production
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