Year: 2025
Type: article
Abstract: The article identifies relevant methods of short-term forecasting of regional and local budget revenues to improve the accuracy of forecasts. The methodological basis of the study is the analytical review of scientific publications on the methods of forecasting budget revenues, identification of their distinctive features, limitations of their application, as well as justification of the choice of the method that provides high accuracy of forecasting tax revenues of subnational budgets. The authors argue that the accuracy of revenue forecasts is the most important component of economic government planning as it enables the development of effective fiscal policy, resource allocation and strategic financial management. Given that achieving an accurate forecast is a complex task, the paper shows that one of the main sources of error in revenue forecasting is the choice of revenue forecasting method, in addition to a variety of political and institutional factors affecting the accuracy of forecasts. Drawing on comparative analysis of existing forecasting methods, the authors select two methods: time series forecasting method (traditional SARMA/SARIMA method) and forecasting method based on discrete wavelet transform. They are tested on the data of aggregated monthly tax revenues of consolidated budgets of the subjects of the Russian Federation for the period from January 2011 to March 2023. It has been revealed that the forecasting method based on wavelet transformations is superior to the traditional SARMA/SARIMA method by all indicators and allows to achieve a higher level of accuracy of forecasts of monthly aggregated tax revenues of consolidated budgets of Russian regions. The findings demonstrate a high forecasting potential of shortterm forecasting methods with a preliminary decomposition of time series based on wavelet transformations. The obtained results make it possible to improve the accuracy of classical forecasting methods and thus contribute to the growth of efficiency and effectiveness of budget planning and forecasting.
Source: Lomonosov Economics Journal
Authors: A. K. Karaev, M. R. Pinskaya, M. V. Melnichuk
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4411330645