Abstract

1. Introduction Double external shock, which the Russian economy experienced in the second half of 2014, gave rise to aggravated expectations of an economic crisis (Minakir, 2015). Along with financial and currency crisis, a budget crisis has become the most real danger for the Russian economy. Geopolitical tensions have led to a slowdown in economic growth, the budget replenishment rate reduced, resulting in the need to counter the growing demands in the area of spending and look for ways to optimize budget spending in order to meet the important needs of infrastructure projects financing. Therefore, during the unfavorable situation in Russian national economy due to the world oil prices dropping and sanctions of the West, the economic development and social stability problems are of particular relevance. In January 2015, the Government of the Russian Federation approved a plan of anti-crisis measures (Order of the Government of the Russian Federation dated January 27, 2015 No. 98-r, 2015), which aims to cut government spending by 5% annually over the next three years to achieve a balanced budget. A significant reserve of budgetary resources saving lies in the optimization of budgetary expenditure in the social sphere (health, education, science and culture). This optimization of social spending does not necessarily mean their reduction, but rather the reduction in inefficient spending by suppressing waste of resources and abuse. The aim of this study is to determine the reserves of reduction in budgetary expenditure while maintaining and/or improving the quality and accessibility of public services in social spheres. 2. Methodology Information research base includes the statistics of the Federal State Statistics Service of the Russian Federation, the official documents of the Ministry of Finance of the Russian Federation, analytical and reporting materials of the Accounting Chamber of the Russian Federation, the Department of the Federal Tax Service of Russia, the Federal Treasury. This research used a variety of methods and tools of scientific knowledge, including methods of system and statistical analysis, analogies, comparative analysis, monographic research, graphical method, and others. The state budgetary strategy comprises the budgetary expenditures, each of which has at least three parameters (Sukharev, 2015): * The value of government spending on a specific budget item (area, sectors, etc.); * time of investment, which would lead to a return (or another effect), with a breakdown of finance by the stages of receipt and use of budget funds; * Total income generated by the results of the budget funds distribution (government spending), as well as income (result) for each specific area of expenditure. 2.1 Dynamics and Structure of the Russian Federation Federal Budget Expenditure Due to the negative effect of geopolitical tensions related to the events in Ukraine, Russia's economic growth in 2014 almost stopped. Dynamics of the Russian federal budget key figures in 2009-2014 are presented in Table 1. The volume of budget expenditure mainly reflects the preferences of the country in relation to the desired size of the government and the scope of its services. Over the past few years, the Russian Federation has seen a clear upward trend in public spending: the Russian Federation federal budget expenditures increased by 46.6% over five years. It should be noted that the actual social and economic situation of the Russian Federation differs significantly from the forecast evaluation, in which most decisions led to an increase in expenditure obligations of the state. In the last few decades, the expenditure of most developed and developing countries were growing to meet the increasing needs of the public in education, science, healthcare, infrastructure, etc. Toughening competition between countries required large budgetary expenditure, especially in science, education, transport, energy (Knobel, 2013). …

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