Theoretical Issues of Local Budgets' Revenue Formation at the Expense of Tax Sources: Russian and Foreign Experience

The budget's revenue is the financial backbone of any country that allows it at least to meet the undertaken expenditure commitments and at most to create reserve funds that are required and able to provide financial stability upon the occurrence of crisis situations. The revenue component of the budget is the main institution of financial law. The functional effectiveness of this law depends on the functioning of the various spheres of the country's activities which are not directly related to the budget. In Russia, based on the state structure, the formation of budgets of public legal entities takes place at three levels, and, accordingly, the federal budget, budgets of subjects of the Russian Federation, budgets of municipalities are formed. Each of these budgets has a statutory composition of revenue sources, but the main role in this composition belongs largely to tax revenues. The article deals with budget revenues in terms of various categories (economic, financial, legal). It is noted that tax revenues are the main source of income of budgets of any level. The difference in the concepts of “differentiation” and “distribution” of income sources between budgets is shown. The information on the Russian and foreign experience in the solution of issues of inter-budgetary redistribution of tax revenues for the purpose of formation of income of budgets of municipalities of various types is generalized. According to the results of the study, it is concluded that the copying of foreign experience in the Russian practice without regard to the specifics of the country is impossible.

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