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Methodological Features of the Assessment of the Regional Budget’s Situation

Author

Listed:
  • Aleksandr Kuklin

    () (Institute of Economics of the Ural Branch of the Russian Academy of Sciences)

  • Kseniya Naslunga

    () (Centre of Economic Security, Institute of Economics of the Ural Branch of RAS)

Abstract

Increasing the budgetary potential is an important factor for the socio-economic development of a region. The level of the regional budget capacity influences the budget services delivery to the population, which makes the research topic relevant. The methodology of the assessment of the budgetary situation in regions is the scope of the study. The subject-matter of the research is the socio-economic relations arising from the use of the budget capacity of a region. The hypothesis of the research is that the regional budget’s situation reflects the use of the budget capacity of a territory in the current conditions. We consider the various definitions of «budgetary potential» category. We propose our own interpretation of the budgetary potential as a set of financial resources of a territory, which, under the optimal conditions, can be used for the realization of budget functions to achieve strategic and tactical targets for the development of a region. Our methodology allows to estimate the regional budget’s situation on the basis of the indicative analysis. Further, we subsequently determine the degree to which the budgetary potential of a territory is used. We have classified the selected indicators into five groups. These groups of indicator estimate the certain area influencing the regional budget’s situation. For each indicator, we have set thresholds according to the standard values or average values for Russia. The calculations for each group of indicators have allowed to define the budgetary situation of regions. On the basis of these cluster evaluations, we propose to classify territories by the degree of using the budgetary potential. Under this method, we have analyzed of the state of the budgets of the Ural region. The received integrated estimates have allowed to rate all the territories and determine the degree of using the budgetary potential. We have concluded that in the Chelyabinsk and Sverdlovsk regions, there is an optimal budgetary situation and, as a result, a high degree of using the budgetary potential. The received results can be applied by the authorities when developing and implementing the programs for the socio-economic development of the territorial subjects of the Russian Federation. They can be also applied for both the assessment of budgetary situation and the diagnostics of the quality of the regional financial management.

Suggested Citation

  • Aleksandr Kuklin & Kseniya Naslunga, 2018. "Methodological Features of the Assessment of the Regional Budget’s Situation," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 395-407.
  • Handle: RePEc:ura:ecregj:v:1:y:2018:i:2:p:395-407
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    File URL: http://economyofregion.ru/Data/Issues/ER2018/June_2018/ERJune2018_395_407.pdf
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    References listed on IDEAS

    as
    1. Pintea Mirela-Oana & Achim Sorin Adrian & Lacatus Viorel, 2013. "Transparency Of Local Budgets In The North-West Region Of Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 931-941, July.
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    More about this item

    Keywords

    budgetary potential; socio-economic development; public finances; deficit; budget indicators; financial resources; debt load; budgetary situation; rating; balance; gross regional product; tax and non-tax revenues;

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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