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Economic Analysis: Theory and Practice
 

Assessing the influence of municipality's budget structure on human capital development

Vol. 15, Iss. 10, OCTOBER 2016

PDF  Article PDF Version

Received: 12 April 2016

Received in revised form: 29 June 2016

Accepted: 27 July 2016

Available online: 1 November 2016

Subject Heading: ANALYSIS OF HUMAN CAPITAL

JEL Classification: H51, H52, H53, R11

Pages: 68-78

Lavrent'eva E.V. Volgograd State Agricultural University, Volgograd, Russian Federation
tichomirowae@ya.ru

Chumakova E.A. Russian Presidential Academy of National Economy and Public Administration, Volgograd Branch, Volgograd, Russian Federation
chumakova.ea@mail.ru

Importance Currently, studies on human capital development and efficient use of budget expenditures at all levels, including municipal, are highly relevant, however, the impact of municipal budget structure on human capital development is considered insufficiently.
Objectives The study aims to identify the influence of municipal budget structure on human capital development.
Methods We apply the method of correlation (Pearson coefficient) of two variables (human development index and expenditures of municipality per one inhabitant). Based on the assessment of budget expenditure structure, we analyzed changes in the structure of integrated index of human development to the extent of changes in its individual indicators, defined a method to create a structure of the budget, which would provide for maximum increment of the index.
Results Practical proposals developed with reference to actual conditions of the Alekseevsky municipal district of the Volgograd oblast enabled to obtain a budget structure that can significantly increase the economic efficiency of local government of the considered object and improve the quality of life of its population.
Conclusions and Relevance The proposed assessment of the impact of municipality's budget structure on human capital development is universal for any municipal territory. If applied, it may ensure a maximum increment of integrated index of human development.

Keywords: human development index, budget expenditure, municipality, budget structure

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