Assessment of budget Impact on the Financial Sustainability of the Altai Territory Economy

Abstract

Based on the methods of quantitative and coefficient analysis of financial indicators, the author assessed the state of the Altai Territory budget and its impact on the financial sustainability of the region’s economy. The problems in the structure of income and expenditure revenues were noted: high growth rates of the budget expenditures, mainly due to social expenses; decreasing budget receipts of own revenues, such as property tax and other tax and non-tax revenues; growing dependence of the regional budget on uncompensated receipts, mainly due to increasing grants allocated by the federal center to equalize budgetary provision. Of note was the imbalance of the regional budget leading to its financial imbalance. The author suggested measures to make the regional budget balanced: ensuring the efficiency and control of the budgetary resources, reducing the growth rate of budget expenditures and increasing tax and non-tax revenue receipts. The scientific novelty of the study consists in using a set of financial indicators to determine the state of the Altai Territory budget for 2016–2018 in order to assess its impact on the financial sustainability of the region’s economy. The results can be used by federal and regional authorities as a fiscal stimulus tool for the financial sustainability of the Altai Territory and other regions of the Russian Federation.

Keywords

• regional economy, structure of regional budget, financial sustainability, budget revenues and expenditures, growth rate, tax and non-tax revenues, uncompensated receipts
• budget evaluation criteria
• budget coefficients