ASSESSMENT OF THE TAX POTENTIAL AS PART OF THE BUDGET POTENTIAL IN THE BUDGET PLANNING PROCESS

Under current socioeconomic conditions planning future development of administrative units and a state in general requires estimation of their ability to create budgetary resources and accumulate them on different levels of the budget system because state and local budgets are the main funds of financial resources which provide socioeconomic development of a country and its separate areas. These factors lead to the need of investigation of the budget potential of the financial system elements. However, to ensure efficient use of the available capacity it is necessary to build an effective system of budgetary control. In the author's opinion, an important element of the system is budgeting. It is the budget plan that reflectsthe uses of borrowed resources and sources of their origin and, consequently, the effectiveness of budget management largely depends on the quality of budget planning. The purpose of this article is the investigation of the budget potential determination of its components, development of methods of their estimation and integration into a system of budgeting. The object of the investigation is the budget potential of a territory (country, region, area, city etc.) in the interconnection with the budget planning system. The subject of investigation is the tax potential as the important element of budget potential which interacts with budget planning system. The methodology of investigation combines economic and mathematical methods, methods of analysisand synthesis. The main knowledge base consists of theoretical improvements of domestic and foreign scientists which correlate with the topic of the investigation. As a result, the author identified budget potential as a part of the financial capacity of an administrative unit (country, region, district, city, town, village). The necessity of the implementation of the budget potential estimation into the process of budget planning was proved. Types of the budget potential were identified depending on the budget system level and budget type. Tax and non-tax potentials as components of the budget potential were described. Types of the tax potential as part of the budget potential were studied. The necessity of estimation of the tax potential as a way to increase the quality of budget planning was justified. Some methods of estimation of the tax potential were offered. A new methodology for calculation of the planned tax revenues based on the tax potential was developed. In the author's opinion, the introduction of the proposed approach into the practice of the relevant state and local financial authorities will improve the quality of budget planning. However, thorough representation of the relationship between the budget planning and budget potential requires further researches into the category "non-tax potential" and development of methods for its evaluation