Applying a DCF Model to Assess the Social Impact of Budget Subsidies

The article considers the use of a discounted model to assess the social impact of budget subsidies provided for the development of transport infrastructure. The project for the construction (reconstruction) of inter-municipal roads, implemented in the Krasnodar Krai from 2016 to 2020, is used as a case study. We have calculated the annual social impact values taking into account the social significance coefficient, number of users, available revenue, and discount rate. The calculations showed that by 2024 the total discounted impact amounted to 3.47 billion rubles, allowing the project to be interpreted as socially justified. The article concludes that DCF models are useful when making decisions about subsidy allocations, and there is a need to monitor projects over their entire useful life. The study is aimed at assessing the social impact of a subsidy provided to co-finance expenditure obligations for the construction (reconstruction) of public roads using a DCF model. The methodological basis of the study is a discounted social impact model adapted to regional transport projects. The article uses data from a sociological survey, including an assessment of the public opinion about the project's significance and the accessibility of the benefits created. The proposed social impact assessment model has broad practical applicability and can be integrated into subsidy justification practices, as it allows for a quantitative assessment of a project's social utility and decisionmaking based not only on financial but also on social indicators.