Methodical Approaches to Assessing the Budget Potential of the Region Taking into Account the Innovative Development of Hightech Industries
Methodical Approaches to Assessing the Budget Potential of the Region Taking into Account the Innovative Development of Hightech Industries

Author(s): Sergey N. Yashin, Nadezhda Yashina, Natalia N. PRONCHATOVA-RUBTSOVA, Oksana Kashina
Subject(s): Business Economy / Management, Methodology and research technology, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: budget potential; innovative development; high-tech industries; consolidated standardized indicator; rating;
Summary/Abstract: The basis for successful social and economic regional development is a stable and flexible financial system. It is required to conduct state financial policy, taking into account the innovative character of changes in all spheres of life. It is necessary to find a balance between the effective functioning of the budget system in the conditions of economic volatility, limited financial resources, fierce competition and often unavailability of borrowed funds and the inevitable transition to the model of innovative development in the knowledge economy. The study aims at developing a methodology for assessing the region’s budget potential, taking into account the innovative development of high-tech industries to increase the population’s well-being. The authors developed a methodology for assessing the region’s budget potential, taking into account the innovative development of high-tech industries based on a number of principles and a specially developed system of indicators. Indicators should comprehensively characterize the region's budget potential from the standpoint of financial sustainability and the region's economic development through high-tech industries. It is proposed to form two blocks of indicators: "Revenues, Economy, Innovations" and "Expenses, Socio-Economic Indicators". The methods of economic, system analysis and mathematical statistics were used. Approbation of the methodology was carried out on the official open data of the Federal State Statistics Service and the Federal Treasury of Russia for 2016. Practical implementation of the methodology makes it possible to rank the regions on the basis of a consolidated standardized indicator of the region’s budget potential including the innovative development of high-tech industries. Monitoring the rank and analysis of the numerical value of the region's consolidated indicator allow: to establish that the problems of the region's budget potential development are related to the lack of a developed innovation environment and a unified productive system for managing budget resources; to develop effective managerial decisions considering innovative character’s transformations to increase the population’s well-being.

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