Bogacheva O.V.Research Financial Institution of Ministry of Finance of Russian Federation, Institute of World Economy and International Relations of Russian Academy of Sciences, Moscow, Russian Federation bogacheva@nifi.ru
Fokina T.V.Research Financial Institution of Ministry of Finance of Russian Federation, Moscow, Russian Federation fokina@nifi.ru
Importance The expansion of financial instruments like revolving funds in developed countries was associated with extensive government intervention in the economy after World War II. This influenced the development of the economic functions of the State bodies and State organizations. Despite the fact that the Russian Federation has examples of revolving funds at regional and local levels, these funds did not find any application as budget financing tools as opposed to some developed countries. The article discusses the practice of revolving funds implementation in Canada and the United States of America. Objectives The objective of the study is to analyze practical application of revolving funds within the budget sphere of the countries where this kind of practice has become most widespread, i.e. Canada and the USA. Methods We analyzed the practical use of State revolving funds in Canada and the USA under the comparative analysis method. Results We have formulated the main advantages and disadvantages of State revolving funds based on the analysis of their use in Canada and the USA.The use of revolving funds as special financial mechanisms may contribute to increasing the efficiency of budget expenses and more flexible management of financial resources, which are allocated to perform business functions that are similar to market or market-oriented functions. Conclusions and Relevance The analysis of major advantages and disadvantages of State revolving funds in the practice of Canada and the USA enables to understand the specifics of this financial mechanism application in the Russian Federation to enhance the State finance management quality.
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