Indian Journal of Science and Technology

Abstract

Background/Objectives: In modern studies, the “resource region” concept is based on the assessment of the mining industry share in the gross regional product. The study aims at identifying additional specific features of the “resource” region financial system. Methods/Statistical Analysis: The base group of regions was compared by the selected set of indicators with the totality of Russian territorial subjects. The benchmarking and index methods, graphical and correlation analysis and marginal analysis were applied. As additional characteristics of the “resource” region, the authors suggest using indicators of the financial system showing the people’s incomes and expenditures, budget tax revenues, including corporate income tax, personal income tax, mineral extraction tax, the balanced financial result of enterprise. Findings: The study has revealed the following features of the “resource” regions finance situation: - accelerated depreciation of fixed assets in the mineral production influences the declared financial results of the companies decreasing them in the short and medium term, which could reduce the amount of income tax coming into the resource region consolidated budget; - special conditions of state regulation of the economy established with the participation of a large mining corporation may lead to the region’s “pseudo-specialization” in the mineral extraction; - “resource” regions have high average per capita incomes compared to other territorial subjects of Russia, while the share of personal income tax in the budget income structure is small; - the main part of the tax revenues is generated by means of revenues from income tax. The mineral extraction tax is important, but in regions specializing in oil and gas production, the share of this tax in the region consolidated budget is insignificant. Applications/Improvements: Results of the study can be used in the state regulation of the economy with the purpose of improvement of the regional financial management systems.

Keywords: Corporations, Financial System, Resource Region, Taxes