Ecology, Environment and Conservation Paper

IMPROVEMENT OF THE EFFICIENCY OF THE INSTRUMENTS OF TAX REGULATION IN THE CONTEXT OF THE DEVELOPMENT OF FISCAL FEDERALISM AND STRENGTHENING OF THE TAXABLE CAPACITY OF THE SUBJECT OF THE RUSSIAN FEDERATION

Khaibat Magomedtagirovna Musaeva, Magomed Magomedovich Suleimanov, Shamsiyat Magomedovna Isaeva and Milyausha Rashitovna Pinskaya

Abstract

Social and economic development and modernization of the subjects of the Russian Federation are closely connected with the necessity to develop efficient instruments for tax regulation as a basic condition for the creation of a favorable business climate, stimulation of investment and innovative activities, promotion of financial independence and autonomy of the regions. The main aim of the research is to evolve the conceptual basics of improvement of the effectiveness of tax instruments in the context of fiscal federalism and strengthening of the taxable capacity of the subjects of the Russian Federation. The study deals with problems connected with the development of fiscal federalism in the Russian Federation, a discussion overview being presented and the economic content of the definition of “fiscal federalism” being refined upon. The article also deals with the elements of foreign experience of tax revenue decentralization, analyzes the approaches to and causes of complications related to delimitation and distribution of taxes between the levels of the budgets, specific conditions, under which the social and economic development of the Russian Federation takes place, being taken into account. The necessity for differentiation of the rates of deductions from regulatory taxes in different subjects of the Russian Federation according to uniform criteria of differentiation is substantiated. The article analyzes the methods and problems of objectivity of the assessment of taxable capacity. The proposed refined system of methods for the assessment of taxable capacity of the subjects of the Russian Federation is based on the application of a correction coefficient and allows of increasing its quality and taking into account the peculiarities of the regions with a low level of their own tax revenues. The proposed methods were used for clustering and assessment of the taxable capacity of the subjects of the Russian Federation. A set of scientific and practical recommendations for enhancing the efficiency of instruments of tax regulation of the economies of the regions is produced.