Possibilities of stimulating innovative development and ensuring fiscal sustainability in fiscal policy

Ensuring technological leadership is one of the priority national goals of the Russian Federation, and its achievement is impossible without stable financial support for innovation activities to the required extent. The subject of this study is fiscal policy instruments that, in conditions of limited budgetary resources, simultaneously support the balance of federal and regional budgets and fiscal sustainability and stimulate innovative economic development. The research results in proposed measures and instruments of fiscal policy, including differentiated measures of support from budget funds for economic sectors, tools for the policy of “smart protectionism”, spending reviews integrated into interdepartmental monitoring and evaluation of the effectiveness of budgetary incentive measures, clarification of the budget rule regarding oil and gas revenues of the federal budget and its primary structural deficit. The results obtained can be used in the practical activities of public authorities in the course of adapting fiscal policy instruments to the continuing changing macroeconomic conditions, ensuring a balance between fiscal sustainability and the fulfillment of obligations for structural modernization and innovative development of the Russian economy.