The impact of the activities of economic institutions and the structure of the economy on the federal budget

Modern socio-economic systems are complex multi-factor structures that create and condition the environment for socioeconomic development. An important concept or element of socio-economic systems are economic institutions and the structure of the economy. Their features and characteristics determine the features of the formation and execution of the Federal budget and have a direct impact on its stability.

In our view, the sustainability of the budget is an opportunity to implement budgets in the long term. There is currently no common definition of budget sustainability. Thus, in a narrow sense, budget sustainability is the ability to achieve a balanced budget over a period of years. A broader interpretation of the concept of budget sustainability suggests that such execution of balanced budgets in the long term should not be accompanied by an increase in the debt or tax burden that can adversely affect the current and future socioeconomic development of the state. As can be seen, a broad interpretation of budget sustainability implies a direct link between budget sustainability and socio-economic development (processes), and sustainability itself can be both an instrument of socio-economic regulation and a consequence of the successful implementation of various state policies. The relationship between budget sustainability and socio-economic development exists primarily due to the historical existence of economic and social relations as objects of state regulation, as well as due to the fact that the existing and expected financial resources of the state are formed, including on the basis of economic results of economic entities. This relationship necessitates further detailed research to develop methods to improve budget sustainability.

One of the theories that allows us to understand the relationship between the budget and the economy, is the institutional theory. From the standpoint of the socio-economic environment and budget sustainability, social institutions are the "rules of the economic game" and the system of economic entities whose activities form the gross domestic product. Although the theory of institutional Economics does not provide unconditional answers to questions of economic development, it allows us to study, understand and formulate the economic conditions that most favorably affect the sustainability of the budget. From the standpoint of the stability of the Federal budget institutional "rules of the economic game" can solve the following problems:

• 1.    To create a system and conditions of interaction between economic entities in the process of their economic activity, allowing to ensure the creation of modern and competitive goods and services, the creation of competitive markets, the renewal of production, etc. the Main goal of such a system is to ensure real and sustainable economic growth to economic shocks.

• 2.    To create a system of formation of the state income, allowing to provide expenditure obligations of the state under the condition of the minimum negative impact on economic

• 3.    To create a system of execution of public expenditures. At the same time, in order to ensure the sustainability of the budget, the formation of expenditures should be based on the following basic principles: ensuring economic growth and addressing issues that are the exclusive prerogative of the state, including social issues.

growth. In other words, from the standpoint of budget sustainability, in an ideal situation, the collection of state revenues from economic entities should not lead to a decrease in the absolute and relative level of real economic growth and the volume of the national economy.

It follows that institutional rules contribute to the formation of the economic environment and determine the forms and extent of interaction and interdependence of the state and economic actors.

Now let us turn to the structure of the economy and its impact on the stability of the Federal budget. Based on the determination of the stability of the Federal budget, the structure of the economy can be represented as a set of industries, their economic relations, products (services) and the economy of formation of added value. The economic structure manifests itself as the level of specialization of the economy. At the same time, specialization means not just the types and shares of industries in the economy, but also the production methods used, technologies, equipment, degrees and variety of economic relations, etc. The structure of the economy does not directly determine the legal and informal (generally accepted practices and principles) aspects of economic relations, as they depend more on the institutional characteristics of the economy.

The structure of the economy fetters the direct impact of not all budget parameters. Thus, the sources and volumes of budget revenues are determined by: the distribution of profits and added value in the production chains, the competitiveness of the economy and individual industries, the level of investment, etc. the Sources and volume of costs associated with economic development are caused by similar parameters and are aimed at eliminating the failures of certain markets and stimulating promising industries.

The analysis of the role of economic institutions and economic structure in ensuring the stability of the Federal budget shows that economic institutions and economic structure create external conditions for the formation and execution of the budget. At the same time, the institutional environment forms the methods of interaction between the subjects of the economy, and the economic structure determines the characteristics of economic relations. The understanding and formation of a favorable institutional and economic structure is one of the key conditions for achieving the stability of the Federal budget and ensuring economic development and requires significant socio-economic changes to form a competitive institutional environment.