The Role of the Federal Budgetary Investments in Ensuring the Socio-Economic Development of Russia in 2019–2021

Abstract

The paper describes the specifics of planning federal budget allocations for budgetary investments in 2019–2021.The relevance of the paper is due to the fact that Presidential Decree No. 204 of May 07.2018 sets the goal for Russia to break into the top five world economies and ensure economic growth rates exceeding the world rates while maintaining the macroeconomic stability. The subject of the research is federal budget allocations for budgetary investments. The purpose of the research was to assess the volume, dynamics, structure and legal support of budgetary investments to ensure their compliance with the objectives of the socio-economic development of Russia. Based on a dynamic structural analysis of the federal budget investments as well as a comparative analysis of fixed investments in Russia and developed countries, it is concluded that there is a need to enhance the fixed asset investments by increasing budgetary investment amounts along with encouraging private investing by the population and businesses. Apart from increasing capital investments from the federal budget, it is also important to update the budgetary investment structure with a focus on the main socioeconomic development targets. The analysis of the legal regulation in the field of budgetary investments showed the necessity to refine the existing legal framework to improve the quality of the budgetary investment planning. Following the analysis of factors hindering the growth of private investing, proposals were made on to how to improve the investment climate in the Russian Federation.

Budget Financing of Infrastructure Projects as a Tool for Implementing the Investment Policy of the Regions of the Russian Federation

“…Research by foreign authors has shown that not only private but also public investment has a positive impact on GDP. For example, in the United States, the multiplier effect of budget investments was 1.92 in the short term and 3.21 in the long term [1]. In India, the amount of state funding for national projects is 90%.…”

“…Issues of budget financing of investments are widely covered in the works of modern scientists and economists. For example, R. A. Alandarov [1,4] analyses the role of Federal budget investments in the socio-economic development of the Russian Federation and assesses the quality of financial management of budget investments in the country; A. A. Derkach [5] studies the formation of the investment social budget to Finance capital investments in the social sector; O. V. Kiseleva [6] reveals the role of budget financing in the investment policy of the Russian Federation; Kuznetsova [7,8] devoted to Federal support for investment in Russia and problems of their evaluation; V. Arbatskaya [3] covers the legal aspects of investment budget expenditures; V. N. Adronova and D. O. Maslakova in his work [9] compare the regions of the Russian Federation in terms of investment financing, including budgetary funds; in T. V. Shchukina [10] and L. A. Michalinos [11] provides an analytical analysis of the development budget investments in the territory of the Russian Federation; O. Ivanov and E. M. Buchwald [12] covers in detail the investment priorities of the Russian Federation on a strategic level.…”