FORMATION AND IMPLEMENTATION OF FISCAL INCENTIVES FOR ENTREPRENEURIAL ACTIVITY OF THE SINGLE-INDUSTRY TOWNS

In view of ensuring sustainable recovery and improving of the quality of the life of population, the strategic direction such as encouraging entrepreneurship of the single‑industry towns becomes more urgent. As a result of the study of the theoretical provisions of the topic, the interpretation of the concept of fiscal encouraging of entrepreneurship of the single‑industry towns is given and a model of the mechanism for encouraging entrepreneurship on the basis of the complex application of the elements of the mechanism is formed. It includes participants, object, legal, regulatory and information support, methods, budget and tax instruments. The paper includes the socio‑economic and financial indicators of single‑industry towns of the Irkutsk region for the period 2015–2017, analysis of the existing measures to support entrepreneurship in the region and some key issues arising a poor economic situation and no effective integration of actions among levels of government and between participants. The author has also formulated recommendations for improving the budget and tax instruments. There is a particular focus on the questions of public finance management in the region including assessing of tax incentives, changing in the approach to inter‑budgetary regulation, the introduction of risk‑based, program and project methods of public and municipal administration. Findings and conclusions of this exercise will be used as a basis for further research in this area. The procedure will involve the preparation methodical recommendations for the changing budget distribution systems, a set of interrelated tax stimulating policies and improving the quality of existing municipal programs. These measures should help to improve the economic situation of the single‑industry towns and enhance entrepreneurial activity.

single‑industry towns,municipal entity, entrepreneurial activity, incentive mechanism, budget and tax instruments, management methods, tax benefits, inter‑budget regulation, municipal programs, Irkutsk region.

Orlova E. V. Formation and implementation of fiscal incentives for entrepreneurial activity of the single-industry towns // Business. Education. Law. 2018. No. 4 (45). Pp. 149–155. DOI: 10.25683/VOLBI.2018.45.433.