RUSSIA’S BUDGET AND ECONOMIC INSTABILITY IN THE 21st CENTURY

Abstract

The beginning of the twenty-first century was marked by various economic crises that affected the economy and changed the state budget structure. The fiscal policy is designed to stabilize the economy by using such tools as automatic and discretionary stabilizers. The work employed statistical analysis methods, specifically region clustering using the k-mean approach, calculating statistical indicators, and assessing budgets with the share calculated by expenditure items and the supplied value by 2005 per capita. Conclusions are made about changes in the structure of expenditures during crises and their response to budgetary policy instruments. At the same time, the cause of the crisis is reflected in the structure of expenditures; for instance, an increase in expenditures on the national economy was noted in 2009, while an increase in healthcare costs happened in 2020. In addition, the classification of regions into clusters did not reveal the specifics of the budget structure, but budget features are observed among regions when they are classified into two categories: high gratuitous receipts (greater than 20 % of income) and moderate (up to 20 % of income). Thus, in regions with a high share of gratuitous receipts, there is an increase in spending on social policy per capita at comparable prices, whereas there is an increase in spending on healthcare regarding the moderate share. The practical significance of the study lies in the possibility of using the results when writing analytical reports for public authorities and developing measures for various stages of the economic cycle.