Budget as a tool for economic development[Бюджет Как Инструмент Экономического Развития]

In the last decade, Russia has seen a reduction in total budget expenditures - from 41% of GDP in 2009 to 34.5% in 2018. However, this decrease in expenses may be masked in the expanding system of quasi-public finances that are in the control of the growing public sector. Along with the total budget expenditures, their structure is also important for economic growth. The planned change in the structure of public expenditures within the framework of implementation of the May Presidential Decree is estimated to have a slight positive effect on economic growth in the short term, while in the long run, GDP growth may add up to 0.4 pp on average annually. The rule that has been in effect since 2017 imposes excessively rigid restrictions on the amount of federal budget expenditures, and also still differs in the lack of flexibility of its design and the lack of a countercyclical nature of the action. Therefore, the search for alternative versions of the rule is not completed. Also for the success of the implementation of the priority of the socio-economic development of the country should be continued to increase the efficiency of management of available budgetary resources on the program and project principles.