Open AccessFISCAL POLICY OF RUSSIA IN THE PERIOD OF ECONOMIC GROWTH SLOWDOWN AND THE RESULTS OF 2018
Author(s) -
Irina Bukina
Publication year - 2019
Publication title -
federalizm
Language(s) - English
Resource type - Journals
ISSN - 2073-1051
DOI - 10.21686/2073-1051-2019-1-86-99
Subject(s) - fiscal policy , economics , recession , revenue , business cycle , economic policy , slowdown , economic slowdown , government (linguistics) , monetary economics , government spending , state (computer science) , social security , inflation (cosmology) , balanced budget , macroeconomics , finance , market economy , economic growth , political science , politics , welfare , linguistics , philosophy , physics , algorithm , theoretical physics , computer science , law
Traditionally, one of the objectives of fiscal policy is smoothing the effects of fluctuations in business activity. In this connection, in the periods of recession, there should be a stimulating policy, and in the periods of recovery – restraining policy. Fiscal policy in Russia, as it’s shown in the article, is primarily procyclical. During the 2015 recession, according to the calculations using multipliers, government spending contributed to the reduction of GDP rather than to the support of its growth. Later, despite a significant increase in the revenues of the expanded government budget and the shift in priorities from defense and security financing to social sphere, the effect of the increase in budget expenditures turned out to be negative. The article also discusses the state of the budget sphere following the results of 2018, which showed the restoration of economic growth.