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National Interests: Priorities and Security
 

Developing and implementing a methodological approach to evaluating the economic efficiency of the State social programs

Vol. 11, Iss. 29, AUGUST 2015

PDF  Article PDF Version

Received: 29 April 2015

Accepted: 20 May 2015

Available online: 27 August 2015

Subject Heading: Priorities of Russia

JEL Classification: 

Pages: 2-14

Chereshnev V.A. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
chereshnev@duma.gov.ru

Vasil'eva A.V. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
sa840sha@mail.ru

Naslunga K.S. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
Kseniya_naslunga@mail.ru

Importance Many State programs have been implemented for the recent years. Those programs tackle contemporary socio-economic issues of Russia. Such programs should be selected and approved in line with the scientifically proven and reasonable methodology for evaluating their economic efficiency. However, there are no regulatory documents providing for typical evaluation methods or their basic principles.
     Objectives The research addresses a topical issue of developing and implementing the methodological approach to evaluating the economic efficiency of State social programs, which bring scientific novelty and high practical value.
     Methods As prescribed in the methodological approach, the efficiency of State social programs is evaluated in line with the following methodological principles: presentation of the expected program deliverables in monetary value; adjustment of the future expenses and income of the project to the current value using the discounting method; using net present value as the key evaluation indicator of the economic efficiency; using the simulation modeling method to evaluate the effect of risks on the implementation of the program under uncertainty.
     Results Using the proposed methodological approach in MathCAD, we evaluated the economic efficiency of the State program of the Russian Federation, Healthcare Development. Based on the analysis and results, we conclude that the net present value of this Program will be 95.5% positive in 2025.
     Conclusions and Relevance As the proposed methodological approach was successfully tested, we can offer it as a baseline method for evaluating the economic efficiency of other State social programs.

Keywords: State programs, social sector, economic efficiency, evaluation, methods

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