Home  Journals  Financial Analytics: Science and Experience  21(255) - 2015 June

Outlines of a new budgetary policy

Vol. 8, Iss. 21, JUNE 2015

Article PDF Version

Available online: 14 June 2015

Subject Heading: Economic policy

JEL Classification: 

Pages: 45-57

Importance The article examines an analysis and evaluation of key factors of Russia's economic growth as seen in the recent decade. The research also investigates the quality of macroeconomic forecasts, fiscal transparency and sources of budgetary risk. The low rate of economic growth may cause difficulties in the state-financed sector, according to forecasts. In the current circumstances, the main objective of the government is to formulate a new budgetary policy and economic growth policy, in particular.
     Objectives The research aims at examining the main areas of budgetary savings through internal reserves in the short-term perspective. It will alleviate the effect of the crisis on macroeconomic indicators. The research also determines and substantiates the principal fiscal restrictions that impede macroeconomic stability and the balanced public finance; proposes and justifies the key principles and approaches to articulating the new budgetary policy and its outlines.
     Methods The research relies upon a combination of dialectical methods, systems analysis, and synthesis.
     Results The article presents the outcome of analyzing the main factors of Russia's economic growth in the recent decade. I review the principal sources of budgetary risk and evaluate the cyclical pattern of the Russian economy. I determine the main approaches to, and principles of setting forth the budgetary policy of Russia under threats and challenges to its sustainable development.
     Conclusions The recession and crisis phenomena in the Russian economy make the budgetary policy one of the focal points among macroeconomic policy tools. The article analyzes the key factors of the new budgetary policy that is the most crucial component of the State economic policy and a tool to achieve socio-economic development goals. The results of the research may be useful for purposes of public financial management.

Keywords: budgetary policy, budgetary system, GDP, principle, budget deficit, quasi-public sector, inflation targeting, economic growth, cyclical pattern, economy, monetary policy

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