Expansion of Fiscal Powers: Challenges and Opportunities of the Region

In this work, we study the system of regional taxation of the Russian Federation. The relevance is due to the administrative - territorial structure of our state, namely the division of tax powers between the federal and regional authorities. In the current system, there is a concentration of tax powers in the hands of the federal government, and the absence of real levers of influence on regional tax revenues from the regional authorities. This leads to a gradual transformation of the regional taxation system to a system characteristic of unitary rather than federal states. The problem of this kind of transformation can be solved by endowing the regional authorities with a large number of tax powers, expanding the existing tax tools, increasing the number of taxes at which regions can set their own rates and thereby affect the self-sufficiency of their own budgets. An example of a budget analysis of the Perm Kray and its competing regions substantiates an increase in the efficiency of regional taxation, which is achieved both through a wider use of existing tax instruments by the regions, and can be achieved if point changes are made to the regional taxation system aimed at expanding tax powers regions.