BUDGET SURPLUS MANAGEMENT AND FISCAL “FINE TUNING”

The subject of research of this paper is the specifics of forming and managing a budget surplus when providing economic growth for the national economy. The results of analyzing the concepts of a budget balance are presented, and directions for managing a positive balance of the state budget are revealed. The specifics of the macroeconomic politics of a surplus are given, and it is revealed that forming a “new” fiscal regime – surplus regime – requires a radical restructuring of budget management. The general typical features of countries with a long-term period of a budget surplus are revealed: focus on budget consolidation on the expenditure side of the budget and the ensuing complex budget reforms made aft er achieving a surplus. It is discovered that one of the main reasons for supporting a stable surplus budget in a number of the world’s countries is the radical restructuring of economic and financial priorities, which was caused by serious macroeconomic shocks. It is noted that when assessing the possibility of maintaining a budget surplus in specifi c countries, it should be taken into account that unfavorable macroeconomic events such as the financial crisis of 2008 or the global pandemic of COVID-19 in the current year (2020) are of crucial signifi cance for maintaining a surplus. According to the results of a comparative analysis of the dynamics of the level of budget deficit and the rates of economic growth, using the example of Switzerland and Norway for 2009–2019, no direct correlation between these indicators was discovered, and it was concluded that there was a lack of empirical evidence and appropriate theoretical generalizations about the existence of a cause-and-effect relationship between economic growth and the type of balance (deficit, surplus, “zero-based”) of the state budget. The advisability of using the budget surplus to reduce the tax burden and to reduce the level of state debt was assessed.

O Fundo Federal de Defesa dos Direitos Difusos e o desvio de finalidade na aplicação de seus recursos

<p>The Federal Fund in Defense of Diffuse Rights and the misuse of its resources</p><p> </p><p>Este artigo analisa, empiricamente, a gestão Fundo Federal de Defesa dos Direitos Difusos (FDD), mecanismo de reparação fluida dos direitos coletivos lesados e não reparados, criado pela Lei nº 7.347, de 1985. O exame do problema demonstra que, embora a arrecadação de receitas tenha sido elevada, ao longo dos últimos anos, a União não aplica os recursos aportados ao fundo, mantendo-os em caixa com o objetivo de realizar políticas públicas de superávit, não relacionadas com a origem dos recursos. Conclui que esse comportamento viola a Constituição e a própria razão de existir do fundo.</p><p> </p><p>This paper, using empirical data, analyses the administration of the Federal Fund for Diffuse Rights (FDD), which is intended, in Brazil, as a mechanism to indemnify groups whose rights have been violated and not redressed. The Fund was created by Law 7.347 of 1985. Our examination of the topic shows that, although substantial revenues amounts have been collected for the fund in the last few years, the money has not been used by the federal government for the purpose intended, but has been withheld in order to comply with public policy for a budget surplus. The paper concludes that this behavior violates the constitution and the very cause of the fund’s existence.</p>

Australia will seek foreign infrastructure money

Significance Tax cuts were announced earlier this month for foreign investment in infrastructure, including transport, energy, water and communication. The move follows concerns that spending on infrastructure is too low for Australia’s projected population growth. Impacts The stimulus does not involve any new spending and will require the support of state governments, which co-fund some projects. Tax concessions will help ease a competitive disadvantage faced by foreign investors, but there will still be market barriers. Uncertain confidence in the current government could depress foreign investor interest. If it maintains the budget surplus, the government will keep backbenchers’ support.

Comparative Characteristics of Sources of Financing of the Federal Budget Deficit in Russia and the United States

Information on the state of the Federal budget (surplus or deficit) is insufficient for an adequate, complete assessment of the state of the country’s economy. The budget deficit does not always speak only about the negative impact on the economy. From the point of view of economic theory, a budget surplus does not always mean that the policy of the state is successful and competent. The budget surplus indicates that the state has left free money that was not used to Finance important projects, which means the underutilization of potential. It is necessary to analyze the Federal budget deficit: what exactly is its cause, and most importantly — what sources of funding are attracted.

MAIN TRENDS OF THE EXECUTION OF REGIONAL BUDGETS IN 2018

In the process of the execution of consolidated budgets of the subjects of Federation in 2018 here were such positive events as strong revenues’ growth, significant budget surplus indicators in the most of the regions and the total reduction of the debt burden. But all these events did not lead to the evident growth of real incomes of the population. Profit tax revenues grew most significantly in the past year due to the increasing energy prices. Federal grants to the budgets of subjects of the Russian Federation increased considerably. The latter took place together with the shift from the goal-oriented kinds of support to regions (subsidies, subventions and other transfers) to the non-conditional kinds of grants. In the same time these is a shift from formalized to non-formalized categories of grants. In 2018 Russian regions succeeded to preserve the tendency towards the increase of the social expenditures. Significant volumes of consolidated budget surplus of several regions are a matter of grave concern because the high level of budget surplus exists in these regions together with serious decrease of real incomes of the population.

Iraq

Forty years of upheaval has eroded physical and human capital and weakened public institutions. Social conditions remain harsh following the war with ISIS, with slow progress at reconstruction, weak public services and a lack of job opportunities. The recent rebound in oil prices helped deliver a large budget surplus and healthy build-up in reserves in 2018, but post-war recovery has been sluggish. The SDR 3.8 billion ($5.3 billion) Stand-by Arrangement approved in 2016 expires in July.

Budget balance: approaches to definition and estimation

The challenges of local budgets’ balance have been examined. Budget defi it (budget surplus) is one of the main budget characteristics, and indicators of balance are included in the number of the indicators of financial stability of public legal entities. The overview of diff rent approaches to budget balance definition allowed to identify their relationship, including manifested in the system of indicators for assessing the quality of balance. Dynamics of absolute and relative indicators of balance of local budgets has been analyzed, the structure of sources of financing of their deficit has been considered, the conclusion about a significant role of measures of budgetary regulation in maintenance of balance of local budgets has been made. Additions to the existing approaches to assessing the quality of budget balance have been proposed.