The paper considers theoretical and methodological aspects of budget potential. Our goal is to determine the place and role of budget potential in the system of potentials of the territory by studying the essence of this potential. We define the concept of “potential” and summarize the content of key elements of the system of territorial potentials. We analyze the evolution and modern interpretation of the term “budget potential of the territory” on the basis of domestic and foreign works. We find out that so far there is no unique approach to the content of budget potential in either domestic or foreign financial science. Scientific novelty of the paper is shown in the following: we carry out systematization and critical analysis of existing methodological approaches to the definition of budget potential, consider the conceptual content of six main and optional approaches, and identify five key issues of the budget potential methodology. First, many scientists, as well as Russian legislation, are investigating the problems of tax potential alone. Second, there is no single point of view on the very essence of the term “budget potential”. Third, we observe substitution of the concepts of “potential”, “resource”, “reserves”, “opportunities”, and “achieved level of development”. Fourth, there is no common understanding of the target setting of the term “budget potential”. Fifth, various stages of formation of budget potential are discussed. The paper puts forward our own vision of possible ways to solve the debatable issues. We clarify the interpretation of the term “budget potential”, which unlike the existing ones actualizes the main elements necessary for the disclosure of the content of this economic category, such as target, relationship with the sustainable development of the territory, constituting factors, and carriers. In the next stages of the study, we plan to consider the structural component of budget potential of the territory and methods of its evaluation. The materials of the paper can be used by researchers as a basis for further research and by management bodies in making management decisions, as well as in the educational sphere in bachelor’s, master’s, and postgraduate programs
Keywords
methodology, socio-economic development, budget, resources, potential, methodological approaches, reserves, system elements, budget potential, theory of finance