Home – Home – Jornals – Region: Economics and Sociology 2021 number 1

The paper considers internal (local) and transfer revenues of regional budgets. The goal is to assess policies to raise budget revenues that are based on regional economic development or transfer mobilization and their appeal to the regions. By contrasting the revenue structures and volumes in 2012 and 2018 at comparable prices, we show that transfer funding had reduced for most Russian regions. We assume the condition for increasing transfer earnings to be the region’s economic success or the promise of such. As far as internal revenues are concerned, the article demonstrates how weak the connection is between their dynamics and regional economic development. The growth of earnings from personal income tax is the only effect significant for the Russian region. State property remains valid as a revenue source only for a limited number of regions. Currently, regions have almost no alternatives to growing their income base, which is also based on economic development. However, the low return on efforts leads to the region being less active at developing its economy. A solution to the problem should be sought in improving the relationship between the economy’s state and regional incomes in the form of incentive deductions from generated federal tax revenues.