Execution of the regional budget of the Vologda oblast in 2016: imaginary and real results

In June 2017, the Legislative Assembly of the Vologda Oblast adopted alawonregional budget execution for the year 2016. The problem of budget imbalance in recent years is one of the most urgent in the economic life of the Vologda Oblast and already deserves close attention. In practical interpretation, the change in the conditions of the regional budget has led to a change in the objectives of budget policy: if in 2008-2010, the starting point of the main directions of budget policy was considered to be support for the socio-economic development of the region, then starting in 2011 - it is to ensure long-term balance and stability of the budget. As a result, according to the findings of the study, budget policy is not an instrument of active influence on the restructuring of the regional economy, but a set of reactive measures aimed at achieving a budget surplus by optimizing all types of costs. The most important drawback of the report, in our opinion, was the lack of a critical assessment of the results of the regional budget. Instead, it was the apology of the success, which on closer examination turned out to be questionable. The article continues the series of publications of Vologda Research Center of the Russian Academy of Sciences on the results of the formation and execution of the regional budget of the Vologda Oblast. The purpose of this study was to try and find out what is behind the figures of the budget process in 2016, how budget consolidation contributed to the alleviation of the severity of the debt problem in the region. The scientific novelty of this work is determined by a comprehensive analysis, which allowed us to evaluate the budget performance in conjunction with the goals and objectives of the budget policy, as well as macroeconomic indicators, and to develop specific proposals on measures to strengthen the balance not only of the budget of the Vologda Oblast, but also the budgets of Russian regions. The main conclusion is that achieving a surplus cannot be interpreted as ensuring a long-term balance and sustainability of the budget. In our view, the task of creating preconditions for future development and improving the quality of society’s life should becomea priority task of achieving a surplus budget. The materials of the article can be used by regional authorities and management in the development of budget policy, by experts in the field of finance, by students and researchers.