Financial independence of regions in the Federal three-level system and its compliance with the regional tax potential

The study is motivated by the increasing financial dependence of Russian industrial regions on the federal center, at times even to the point of their being incapable of solving their social and environmental problems. The purpose of the study is to develop methodological foundations for stimulating financial interaction between economically developed regions and the federation and to search for means to increase the financial independence of the regions in federal systems. The study uses comparative analysis, averaged values, and index analysis and determines a methodology for calculating the regional tax potential, assessing the effectiveness of federal funds used by the regions, and quantifying the financial independence of the regions in the federal state. We show the interrelation between the financial independence of the regions, the regional tax potential, and the efficiency of using financial resources by the regions. We propose to move from the practice of federal transfers to the self-sufficiency of the regions and to introduce a methodology for distributing financial resources between the budgetary system levels based on the fixed tax system. The paper substantiates the need for a direct system of distributing taxes between the federal budget levels based on the criterion of a 50% threshold of credited taxes.