Subject The article addresses sources and approaches to building fiscal revenue of the federal budget system, their existing and possible classification systems depending on socio-economic conditions and institutional environment they evolve in. Objectives The aim of the study is to offer a new approach to a modern fiscal revenue classification based on critical analysis of various scientific and practical approaches applied to classify fiscal revenue of the budget system of the Russian Federation, as well as those developed by the International Monetary Fund and Organization for Economic Cooperation and Development. Methods The study employs principles of historical and logical approaches, general methods of analysis and synthesis, comparative and graphical analysis. Results The paper reviews different approaches to classification of fiscal revenue of the budget system of Russia for more than one hundred years. It shows that the classification can be based on different criteria. The key attribute defining the nature of income classification enables to analyze pros and cons in fiscal revenue formation. The modern budget classification rests on a multifactor model, however, it does not comply with changed socio-economic requirements. I formulate key requirements to the modern budget classification. Conclusions The findings can be used to improve the existing budget classification for a deeper analysis and exact prediction of fiscal revenue. The findings are mainly theoretical; I suggest further research toward practical testing.
Keywords: fiscal revenue, budget classification, institutional environment, inter-budget transfer
