Fiscal maneuver and restructuring of the Russian economy

Abstract

The paper discusses fiscal policy parameters through 2024. The suggested way to ensure long-term fiscal stability is stabilizing both the general government revenues and expenditures as percentages of GDP at levels differing by the public debt service payments and then applying a new version of the fiscal rule. The redistribution of fiscal spending from unproductive to productive areas (primarily investment in human and physical capital ) is considered to boost economic growth. The possible use of additional spending on education, public health, and transport systems is presented, as is the optimization of expenditures in nonproductive areas.

The Change of the Trajectory Towards Growing Economy: The Evidence From Russia

“…The gains from globalization rest in oil revenues which are unevenly distributed across regions and income groups. According to study of Kudrin & Sokolov (2017) and Deed & Hodula (2016) reforming the tax system and investing the gains from higher oil prices in education and infrastructure would help diversify the economy, create more quality jobs and make globalization beneficial for all. Over the longer term growth is expected to continue lagging behind the world average unless the government adopts decisive structural reforms to boost investment.…”

Devising a method to optimize the investment structure aimed to achieve strategic targets in the socio­economic development of regions

“…Thus, paper [2] substantiates the role of human capital and the economy of knowledge as the main source of economic growth. Article [3], based on the concept of innovative economy, proposes an increase in the share of productive expenditures in the Russian state budget, that is, investments in human and physical capital with the aim of significantly accelerating the economic growth of the country. However, the work does not specify how much and in what way the budget should be optimized and expenditures for human capital should be increased.…”

Development of a Fuzzy Dynamic Model for the Formation of the Optimal Allocation of Financial Resources for the Maximum Development of Regional Human Capital

“…Reference [11] substantiates the importance of the development of human capital for the country's economic growth. Reference [12] proposes an increase in the share of production expenditures in the Russian state budget to speed up the country's economic growth. Reference [13] notes that in 1960-2011, the investment in human capital and the dynamics of production specialization were the critical economic growth factors for developed countries.…”