The role of chemical corporations in the formation of territorial budgets

The studies of the Vologda Research Center of the Russian Academy of Sciences reveal a significant influence of the largest metallurgical corporationsontheformationofbudgetrevenues. The methodological approach, used in this paper, can also be applied to corporations in the chemical industry which is one of the fastest growing industries in the country. It includes more than 1000 enterprises; the demand for their products is very high. The article focuses on large corporations that produce mineral fertilizers, as they have impressive amounts of revenue and their potential in forming the territories’ budgets is significant. The purpose of the research is to identify the role of large corporations in the chemical industry and assess their contribution to the formation of tax revenues in the regions. The object of the study is the large corporations in the chemical industry such as PJSC “Acron” (Novgorod Oblast) and PJSC “Dorogobuzh” (Smolensk Oblast) included in the chemical holding company “Acron” and JSC “Apatit” (Vologda Oblast), a part of the chemical holding company “PhosAgro”. The reasons to choose these companies as the objects of the study are large scale business, large revenue volumes, the location in regions with a poorly diversified economic structure and a strong dependence on the budget-forming enterprise. The subject of the research is the relationship of large corporations in the chemical industry with the budget system of the home regions. Based on this goal, the author has solved the following tasks: has determined the contribution of the chemical industry to the tax revenues of the home regions; has considered the dynamics of relations between enterprises and the regional budget system in the context of income tax, personal income tax and corporate property tax; and has analyzed the financial results of chemical industry enterprises.