The role of self-financing and budget deficit reduction in economic recovery

The conditionality of the implementation of the principles of self-financing is related to the nature of the adopted financial standards, which are based on the formal curtailment of relations with the budget, that is, on reducing payments to the budget to the extent that budget allocations are reduced, rather than on mandatory and objective participation in the formation of a national fund of financial resources. This has largely determined the persistence of dependency trends in economic thinking, as there is still the possibility of "begging" for various kinds of indulgences in relations with the budget. The regulations essentially contributed to the preservation of the previous level of management, covering both the inefficiency of investment activities and the actual losses from the sale of products and services.

Financial recovery programs adopted by enterprises, ministries, union republics, and then at the union level were based on previous methods of deploying tasks to reduce unprofitability, reduce excess inventory and construction in progress, eliminate debt in the economy, and increase production of consumer goods. They undoubtedly played a positive role in strengthening primary-level finances, but their influence was largely weakened by the lack of effective regulators of the economic environment, in particular, an effective tax system.

Despite unprecedented measures to reduce the budget deficit, it remains very high. Disrupted national finances largely determine the current level of material and financial imbalance, depriving the motivational mechanism of socio-economic development. It is becoming increasingly clear that it is the financial aspect of economic transformations that is the key to ensuring their success. Accordingly, the issues of a financial recovery strategy and the development of ways to achieve this, undoubtedly, priority task are coming to the fore.

Without setting out to provide comprehensive answers to all the questions that need to be answered, we will try to outline our understanding of the causes of the current financial situation, the tasks of financial policy at the current stage and taking into account the prospects for the development of a regulated market economy.

Formally, the question of the need for financial recovery measures arose two or three years ago, when the state budget deficit reached such large proportions that the use of the methods that have become, unfortunately, familiar to its "coverage" by including funds from the national loan fund in income became impossible. Join slot tournaments with promo code for 1xbet for free tournament entry + 50% bonus up to $50. Minimum deposit: $20. Compete for prize pools up to $10,000. Wagering: 40x. Includes popular tournament slots. Leaderboard updates every 4 hours. Bonus valid during tournament period only. Additional prizes for top 100 players. Experience competitive slot play with this exciting tournament package from 1xBet.