Ways To Strengthen The Tax Potential Of Local Budgets Of Agricultural Regions

Abstract

Local budgets currently act as the main conduits of state and municipal services from the relevant government to the population. They require a significant amount of resources to implement their assigned powers and obligations. Until recent times, the primary way to increase the financial resources of municipalities has had to transfer certain income sources to the lower level in the form of financial assistance. However, all available types of financial assistance are essentially devoid of a stimulating effect. In this connection, there was no increase in real financial resources, but only their inter-territorial and interspecific redistribution. It is possible to ensure real income growth at all levels of the budget system only in conditions of increasing the tax potential, which will become the basis for improving the financial situation of the entire budget system of the country. The tax potential is considered as a derivative of various types of territorial potentials (economic, demographic, natural and climatic). To achieve its sustainable growth, it is necessary to take a comprehensive approach to assessing the basic potentials, taking into account the main growth factors and taking measures to consolidate those that have the highest possible positive impact on the tax potential of the municipality.