Creating an accounting system for tax expenditures in Russia under budget planning and budget expenditures effectiveness evaluation
Importance At present, the system of tax expenditure evaluation and accounting in the Russian budgetary planning is only under formation. This fact does not allow to evaluate not only the effectiveness of tax incentives, but also to ensure the efficient use of public finances, their allocation (including in the form of lost revenues as a result of granting tax benefits) to the solution of assigned tasks. Objectives The paper aims to develop science-based approaches to creating tax expenditure evaluation and accounting systems in Russia in conditions of budget planning and budget expenditures effectiveness evaluation. Methods On the basis of comparison and analogy methods, I have analyzed the Russian and international practices of tax benefits application and presented practical approaches to improve tax expenditure accounting in Russia. I propose to introduce in Russia the system of tax expenditure accounting under budgetary planning and budgetary expenditure effectiveness evaluation. I propose and substantiate necessary amendments to the Russian Federation budgetary legislation, and also provide recommendations on developing and implementing a classification of tax expenditures as a component of budgetary classification. The Russian Federation has accumulated vast experience in applying tax preferences and benefits, however, today the statutory regulation of tax expenditures is not available, and the concept of tax expenditures is not applicable. Results To introduce this concept to the budgetary practices it is necessary, first of all, to provide a legislative framework for the term “tax expenditures”. Conclusions and Relevance Taking into account the significance of tax expenditures in achieving the goals of economic and social policies, the requirement to account for tax expenses in the public resources, which are directed to State programs implementation, I stress the need to develop and implement a classification of tax expenditure as part of the budgetary classification.