THE PRIORITIES OF THE BUDGET AND TAX POLICY OF THE RUSSIAN FEDERATION IN 2017

Abstract

While economic growth slows down, the requirements to the implementation of economic policy are rising. In particular, this concerns budget and tax policy, since budget indicators are sensitive to the fluctuations of business activity. The article considers the results of the budget and tax policy in 2017, which is characterized with a certain revival of business activity and, as a result, an improvement in the situation with both the federal budget and the consolidated budgets of the subjects of the Federation. Nevertheless, as it’s shown in the research, the budget and tax policy, pursued in recent years, doesn’t contribute to economic growth. In the work the analysis is carried out from the point of view of the policy of progressive fiscal consolidation. It’s shown that the accumulation of funds in sovereign funds under conditions ofRussiadoesn’t become an instrument of such an approach, but serves only to finance operational deficits, which are formed not at the expense of increasing investment expenditures of the budget, but at the expense of increasing current expenditures. The article also analyzes the conditions, under which the borrowings grow and, consequently, grow the costs of servicing the public debt. Despite the low level of public debt relative to GDP, a high level of interest rates together with low rates of economic growth facilitate the accelerated escalating of the debt and create restrictions for pursuing a stimulating policy in the future.