Budget expenditures on social sphere and socio-economic status of the constituent territories of the Russian Federation

Budget expenditures are one of the main instruments of financial policy that public authorities use to influence the dynamics of socio-economic development. The review of scientific works has shown the ambiguity in estimates of the impact of budget expenditures on the parameters of the socio-economic development of territories [1,2]. Since the regional aspect of this problem has not been sufficiently studied, the goal of the research was to identify the relationship between the dynamics of budget expenditures of the constituent territories of the Russian Federation and their socio-economic situation. The choice of social expenditures as the object of research was determined, firstly, by their significant share in the structure of territorial budget allocations, and secondly, by their potential impact on the level and quality of life of the population. The theoretical basis of the research is the works of Russian and foreign economists related to the issues of state financial regulation and budget policy. The analysis of inter-regional differences in the structure and dynamics of social budget expenditures is carried out. The main factors that determine the differentiation of regions in terms of budget expenditures on the social sphere are defined: features of the economic and geographical location of the regions that cause the cost of basic state and municipal services to rise or fall in price, the status of the budget revenue base and priority goals of budget policy. It is shown that in the medium-term period there is no significant relation between the dynamics of social expenditures and changes in the socio-economic situation of the regions. At the same time, it is confirmed that regions with consistently high indicators of socio-economic development are characterized by higher rates of growth in the social sphere. This aspect in the medium-term period can provide a positive economic effect.