Open AccessRUSSIAN FISCAL POLICY AND SUSTAINABLE GROWTH OPPORTUNITIES
Author(s) -
Irina Bukina
Publication year - 2019
Publication title -
federalizm
Language(s) - English
Resource type - Journals
ISSN - 2073-1051
DOI - 10.21686/2073-1051-2019-3-5-16
Subject(s) - consolidation (business) , fiscal policy , sustainable growth rate , economic policy , sustainable development , obstacle , debt , economics , tax policy , business , finance , macroeconomics , public economics , tax reform , political science , law
One of the necessary conditions for sustainable development is the public finance stability. The policy of financial consolidation, which has been actively pursued since the 1980s, is designed to balance the budget and the debt burden so as not to expose future generations to the risk of lowering living standards. However, such a policy often becomes an obstacle to economic growth. In accordance with the concept of progressive financial consolidation, a fiscal capacity should be created, which is used to reduce the tax burden and increase budget expenditures that stimulate economic growth. Analysis of the tax burden showed that the policy of financial consolidation conducted in Russia in 2015–2018 did not stimulate the development of the sector oriented to the domestic market. Thus, fiscal policy did not meet the objectives of sustainable development.