Improving the Efficiency of the Russian Budgetary Policy in the Context of Economic Growth Fueling

Abstract

In modern life, the budgetary policy is a crucial tool for financial regulation of the Russian economic development from the standpoint of ensuring stable growth rates. The importance of the budgetary policy for the sustainable economic development is determined by the following factors: first, at the macroeconomic level it helps to achieve macroeconomic stability (a necessary condition for economic growth); second, at the microlevel it stimulates investment, accumulation of human capital and the increase in factor productivity. The state influences the economic growth rates and quality through productive expenditures as one of the most important components of aggregate demand.The subject of the researchis the impact of productive government expenditures on the economic growth rates in the Russian Federation at the stages of crisis and post-crisis development of the national economy (2008–2016).The purpose of the researchwas to assess the budgetary policy of the Russian Federation in the context of boosting the economic growth and to develop proposals to increase its efficiency. The paper examines the existing theoretical approaches to assessment of the impact of government expenditures on the economic development. The authors also used statistical data to measure the interrelationship between budgetary investments in science, basic and human capital and the GDP volumes. The authors formulated recommendations on improving the efficiency of the Russian budgetary policy, in particular: identifying priorities for budget fund expenditures; changing the existing structure of government spending; expanding the scope of the public-private partnership to promote investment and innovation activities. The paperconcludesthat the lack of medium- and long-term reserves for increasing government expenditures necessitates the change in the structure of government spending through reducing overheads and increasing production costs with the purpose of ensuring sustainable economic growth.