Regional Investment Policy in The Context of Economic Growth, Employment and Income of the Population

Abstract

Purpose: The purpose of the article is to substantiate proposals for expanding the tax independence of sub-federal authorities, that will activate the investment processes. Design/Methodology/Approach: Domestic and foreign conceptions on the issue of state support for investment activity, as well as open data of the government of Rostov Region are used in the article. On the basis of the systematic logical and semantic analysis, the comparison, and the theoretical and practical materials synthesis the authors analyzed measures of regional support for investment activity. Findings: The investment attractiveness of each region directly depends on the created comfortable environment for business, capable to finance various sectors of the economy. The possibility to use tax incentives encourages investment activity of economic entities. The authors propose to expand the tax independence of the Russian Federation's subjects through simplifying the investment tax deduction mechanism, restoring tax powers in terms of reducing the corporate income tax rate credited to the regional budget. Practical Implications: The research results can be used by state authorities and administrative bodies of the Russian Federation's subjects for improving tax support for investment processes. Originality/Value: The proposed measures aimed at expanding the sub-federal government tax independence will ensure the investment processes activation contributing to the economic development of the regions, the employment growth, income and savings.