Budget as a tool for managing socio-economic development of the Arctic territories

Abstract

With the proclamation of the principles of strengthening independence and increasing the level of sustainable development of the Arctic regions the role of the budget as the main financial tool in the system of state regulation is increasing. Via the budget the state stirs up investments and innovations, stimulates economic and social development of territories, and ensures meeting public needs. The current research topicality is caused by the fact that a carefully study of the budget nature, its functional properties makes it possible to identify its capabilities and possibilities for organizing budget planning, which is the basis for ensuring efficient management of processes in the budget and other management areas. The work explores the budget functionality in connection to the stages of the budget process, determining the conditions and possibilities for the functioning and development of socio-economic systems. An assessment is made of the degree to which the budget functions are implemented: the content is revealed, the nature of their actions is determined from the point of view of efficiency of the budget functions. The research revealed that some budget functions did not reach the expected efficiency. The effect of the reproductive and regulatory functions of the budget in terms of, for example, changes in the structure of the economy is poorly expressed, which is confirmed by the continued leading role of the raw materials industry in the Arctic regions. The planning function aimed at achieving balanced budgets partially fulfills its purpose - it does not provide full coverage of expenses with budget revenues. The control function is not fully implemented at the stage of development and further implementation of tax tools. As a result, the development of negative processes in the economic and social spheres of the regions of the Russian Arctic zone continues.