Identification of vulnerable zones of the formation of region’s public finances under sanctions restrictions

Abstract

The article is devoted to the problem of identifying vulnerable areas for the formation and use of public finances in the region under sanctions pressure on the example of the Republic of Bashkortostan. According to the results of the analysis of the main tax revenues of the consolidated budget of the republic, the zones most exposed to the risk of shortfall in income were identified: firstly, the high volatility of the dynamics of the corporate income tax compared to the personal income tax, and secondly, the decrease in the diversification of tax revenues on profit in the sectoral context, thirdly, the growth of the contribution to the volume of tax revenues of those types of economic activity that have the most favorable tax and investment regime (the need to improve the system of tax and investment preferences). The external factors of formation of vulnerable zones of public finances of subjects of the Russian Federation are analysed. Proposals have been formulated to improve the efficiency of the use of public finances.

Keywords

• public finances
• economic sanctions
• budget
• region
• performance
• investments
• government programme
• strategic planning