The article is devoted to researching income formation features of Russian regions, on the example of the Kaluga region. The subject of the research is financial, social and economic position of the Kaluga region.The paper aimed at identification of possible budgetary, social and economic risks of the subject influencing the profitable potential of the region, and also identification of additional allowances in order to increase the budget's revenue of the subject.The paper reveals the most actual issues of expenses covering and debt management, gives the assessment of budget capacity of the region made by means of statistic analysis, and also by means of calculation of efficiency indices in the budgetary policy.Profitable capacity of the region in respect of tax income as the main source of regional budget formation is researched. Changes in budget's revenue are assessed. The debt load of the subject and risks connected with the change in amount and structure of a debt, as well as the methods of state debt management are researched.The authors offered recommendations aimed at increase of profitable capacity of the region, considering its features and present economic situation which could be used in development of the budget policy of the subject.Profitable capacity of regions is in a tight position, therefore, subjects should direct all the forces to strengthen it. In the presence of the risk of reduction in income from tax revenues it is required to develop small and average business that would provide the population with necessary products and services and create new vacancies. For this purpose it is necessary to implement public and private partnership more actively, as well as to facilitate business effectively by implementing tax privileges and accelerating and simplifying bureaucratic procedures. It is also necessary to reduce a share of non-productive costs and increase productive ones that will lead to the increase in efficiency of the regional budget policy. A complex resolution of the problem at the present time will lead to a long-time powerful positive effect for the whole economy of the region.