Home  Journals  Financial Analytics: Science and Experience  32(218) - 2014 August

Financial policy and promotion of housing construction in the Republic of Bashkortostan

Available online: 19 August 2014

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 33-38

The article assesses and selects the priorities of the fiscal policies in the region within the framework of the assigned tasks of the economic construction and seeks the new incentives for the development of construction in priority areas. The author points out that the problems to ensure the affordable housing remain unresolved in Russia for more than twenty years. A sharp decline in 1990's and the continuous increase in the cost of a square meter of residential space do not permit to improve the living conditions of the majority of citizens. The failure to provide the housing market with the necessary mechanisms of the financial policy, including credit, does not reflect the effective demand of the country's population. Mortgage housing loans, which must constitute an effective system for ensuring the affordable housing for people with low and medium incomes, serve as one of the instruments of fiscal policy within the framework of implementation of the national and regional programs. The acquisition is based on market-based instruments using both personal and borrowed funds, as well as the usage of the maternity capital for families with children. The article makes an analysis of the established system of mortgage crediting in the Republic of Bashkortostan. The key issues, which require the short- and medium-term solutions are as follows: searching for ways to increase the effective demand; improving the housing affordability for the majority of target population; enhancing of the low-income housing market; promoting the acquisition of land for the construction of low-income housing, including low-rise housing and building development, which will eventually lead to the sustained economic growth and will meet the citizens' demands for the living conditions.

Keywords: fiscal policy, construction, housing, economic class, State program, Republic of Bashkortostan

References:

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3. Decree of the Government of the Russian Federation “On Provision of affordable and comfortable housing and public utility services to the citizens of the Russian Federation” of November 30, 2012 № 2227-r. (In Russ.)
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5. Rykova I.N., Fisenko N.V. Analiz ipotechnykh kreditnykh programm v Rossii i faktory, sderzhivayushchie ikh razvitie [An analysis of mortgage loan programs in Russia and the constraining factors of the development]. Finansy i kredit – Finance and credit, 2008, no. 17, pp. 35–39.

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