Importance The article investigates budget maneuvering, i.e. a combination of different ways to curtail public expenditure, as a tool of fiscal policy. Objectives The goal is to develop methodological and practical recommendations for less painful cuts in government spending from the point of view of Russia's GDP behavior pattern through using various tools. Methods The methodological basis of the work is formal and dialectical logic used to identify major ways of budget maneuvering, deduction and induction – to justify the identified ways, and mathematical logic, which is involved in the analysis of their impact on Russia's GDP. Results I offer three ways of budget maneuvering, namely proportional (i.e. sequestration), dotted (cutting and/or closure of national economic programs), and tax-based (affecting expenditures by tax burden redistribution). The proportional way of cutting public expenditure predetermines a direct impact on aggregate demand, dotted – on investing channel of GDP formation, and tax-based – on fiscal aspects. The paper provides an analysis of all the three ways. Conclusions and Relevance Using the budget maneuvering in Russia may lead to reduction in public spending with less adverse effect on business activity. The findings may be used for formulating the fiscal policy of the Russian Federation by relevant policy-makers, as well as for further exploration of the issue by the scientific community.
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