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Journal section "Young researchers"

Sustainability as the basic principle of responsible budgetary policy

Galukhin A.V.

2 (32), 2014

Galukhin A.V. Sustainability as the basic principle of responsible budgetary policy. Economic and Social Changes: Facts, Trends, Forecast, 2014, no. 2 (32), pp. 182-192. DOI: 10.15838/esc/2014.2.32.17

DOI: 10.15838/esc/2014.2.32.17

Abstract   |   Authors   |   References
The author touches upon rather critical issues of management of the regional budget system sustainability. The prospect to studying this issue is confirmed at the highest level – by the RF President. The article indicates that the main components of the budgets financial sustainability concept are the following: the territory’s self-sufficiency (independence), its solvency, income and expenditure balance. The swot analysis of the public finances state in the Northwestern Federal District regions has revealed lowering independence of the territories, debt burden deterioration in the post-crisis period and the unsolved problem of income and expenses imbalance. The study shows the territories’ capacity constraints to find additional financial resources, although the anti-crisis instruments of the budget process (regional reserve funds) are not used in full measure. The analysis has resulted in the development of directions to stimulate the regional budget system sustainability, such as the modernization model of fiscal federalism, strengthening and development of tax potential, improving the budget expenditures efficiency and encouraging the use of regional reserve funds potential. According to the author, the timeliness of these measures is to be achieved through continuous financial situation monitoring in the RF subjects

Keywords

public finance, consolidated budget of the region, balance, financial sustainability, directions and methods to enhance the budgets’ financial sustainability

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