Stimulating economic growth or saving surplus income: choice of priority in making federal budget

The article compares the approaches to ensuring long-term sustainability and stable economic growth through changing the priorities of spending extra oil and gas revenues of the federal budget under the budget rule. It considers the advantages and disadvantages of the direction of extra oil and gas revenues to increase production costs and to reserve them in the sovereign fund. The author determines the significant role of additional public investment in the implementation of priority national projects and draw the conclusions about the validity of ensuring significant economic growth through the direction of extra revenues of the federal budget to increase public investment in human and physical capital.