TAX POTENTIAL AS AN ELEMENT OF THE BUDGET EQUALIZATION SYSTEM

This article is devoted to tax potential as an element of the budget equalization system. It examines the factors determining the tax potential of the state, as well as the question of how to stimulate (increase) tax potential. After all, an increase in tax potential ensures sustainable financing and helps to significantly implement social and economic programs of the state. Effective use of tax potential helps to reduce the debt burden, depending on the principles of forming the central budget. Changes in tax potential depend on a number of fundamental factors: economic market conditions, demographic and social indicators, as well as tax policy.