Problems of Fiscal Capacity Increasing in the Regions of the Russian Far East
The article examines the current state of regional budgets in the Russian Far Eastern macroregion. The regional per capita budget expenditures lag far behind the country’s average values, that makes regions unable to overcome the existing gap in social development, infrastructural provision of the territory and to improve the quality of life. The article considers possibilities of increasing the regional budget revenues from existing major revenue sources such as tax capacity, intergovernmental transfers (equalization grants) and borrowing. It is argued that in the short term the level of regional budget expenditures may best be increased by grants, in the long term the major potential for sustainable increase in budget income is associated with expansion of economic activity and rise of factor productivity