Bìznes Inform (Mar 2018)
The Impact of Expenses of Budget Organizations on Economic Growth
Abstract
It has been determined that budgetary policy has both the direct and the indirect impact on the rate of economic growth. According to the functional classification, the composition of expenses of budget institutions has been identified, their structure and dynamics in the period of 2007–2018 have been researched. A structural analysis of budget expenses in the context of economic classification was carried out, on the basis of which a specific group of expenses of budget institutions promoting the development of intellectual capital has been identified. The stochastic correlation between the rates of growth of own incomes and expenses of budget organizations on the development of human capital was investigated, and on this basis the potential of the budgetary sector in the context of financial autonomy has been estimated. An economic-mathematical model for determining the optimal composition of private investments, productive and non-productive budget expenses has been proposed. According to the built model, the following components of the budget expenses have been defined as productive ones, the growth of the specific weight of which in the overall structure leads to sustainable growth of the economy. Institutional barriers to increase the productivity of budget expenses were identified, considering their substitutionarity and complementarity. A correlation-regression analysis was carried out to determine the nature of impact of separate components of the budget expences on the economic dynamics.
