Financial results of the implementation of preferential regimes in municipalities of the Russian Far East

The aim of the work is comparative analysis of the problems and methodological approaches to assessing financial effectiveness of measures implemented in the Far East in the context of regional preferential policy in outstripping development territories (ODTs) and in the Free Port of Vladivostok (FPV). We analyze the experience of organizing preferential regimes in ODTs and FPV, substantiate the reasons for difficulties in assessing the implementation of financial measures of preferential regimes related to the political specifics of the implementation of the latter; difficulties in clustering the objects of analysis due to a considerable differentiation of Far Eastern municipalities; difficulties related to the assessment horizon; as well as current problems concerning the substantiation of indicators to comprehensively assess the results of stimulating municipal development. We show how local budgets are affected financially by the extension of local preferential regimes to the entire territory of the Far East and the prerequisites for the emergence of a “tax trap” as a result. Using the example of the Khabarovsk Territory, we assess shortfall in local budget revenues caused by a significant increase in tax benefits. We reveal the consequences of a situation when the volume of tax benefits provided is not limited by the volume of investments in projects. We consider measures to dampen the consequences of the “tax trap” for regional budgets in the case of expanding the zone of local preferential regimes to the entire Far East. We propose to allocate tax benefits to a resident in the form of a money grant, provided that the resident fulfills its obligations to increase employment and develop the real sector of the region's economy, and the total amount of benefits is limited by the amount of investments made by the resident.