Fiscal maneuver and restructuring of the Russian economy

Abstract

The paper discusses fiscal policy parameters through 2024. The suggested way to ensure long-term fiscal stability is stabilizing both the general government revenues and expenditures as percentages of GDP at levels differing by the public debt service payments and then applying a new version of the fiscal rule. The redistribution of fiscal spending from unproductive to productive areas (primarily investment in human and physical capital) is considered to boost economic growth. The possible use of additional spending on education, public health, and transport systems is presented, as is the optimization of expenditures in nonproductive areas.

Keywords

• fiscal policy
• fiscal maneuver
• state budget
• productive expenditures
• budget expenditures structure, structural reforms, economic growth