STATE REGULATION OF THE ECONOMY

ABSTRACT

This article examines the theoretical foundations of government regulation. Basically, the principles and tasks of state regulation, as well as what methods and tools the state uses during the regulation of economic processes, are investigated.

Keywords: government regulation, methods and tools, objectives and principles.

The current stage of economic development is characterized by an increase in the rate of scientific and technological progress through dynamic development and the introduction of innovations into the production process. Thus, the current market conditions of business require active positive intervention of the state in the regulation of the economy, since at the government level the legal basis for economic decisions must be provided. The tasks of the state in terms of economic regulation are also the protection of national economic interests, the formation of infrastructure, control over the basic parameters of monetary circulation, as well as the development of economic sectors that are state-owned and do not affect private business.

State guarantees are implemented in the form of providing the same economic conditions for running the economy, as well as rules of conduct, promoting the effective sides of market relations and limiting negative consequences. Non-intervention of the state in the country's economic activity can entail serious problems in the processes of setting prices and tariffs, in ensuring guarantees of economic ties between various constituent entities of the Russian Federation, and can also lead to a decrease in production efficiency, lack of demand for fundamental science, and a reduction in spending on social infrastructure [5, с.117].

The system of regulation of the economy and economic activity, so-today in all economically developed countries, ensures the maintenance of conditions for existence in the market.

State regulation is based on the principles of assistance in activating forms of activity, and also provides a restriction to suppress undesirable forms of management.

It is necessary to understand that state regulation of the economy can be implemented through direct measures in the form of regulatory standards, regulations and restrictions of a specific applied nature (budget, taxes, monetary policy), as well as through the legal framework of legislative acts for comprehensive regulation spheres (economic legislation).

Let's turn to the key functions of state regulation of the economy. First, the action of the factor state uses the achievement and preservation of national economic advantages, thanks to the available economic factors and institutional mechanisms, an increase in the level of production factors (labor, capital, entrepreneurship). The main task of the state at the present stage is to develop methods of transition to innovation policy, to stimulate innovations that are beneficial for the domestic economy.

Economic regulation methods:

1. State economic programming

2. State, economic forecasting

3. Budget and tax regulation.

4. Monetary policy [2, с.385].

State influence on the economy is implemented through formation of the structure of budget expenditures. State influence in this sphere is associated with the establishment of the size of tax rates and the choice objects of preferential taxation. The structure, volumes and methods of tax exemptions create the possibility of a targeted impact on sides of the state on many of the listed areas of economic policy, including the economics of higher education.

At the end of September 2017, a bill on the federal budget for 2018 and for the planning period of 2019 and 2020 was submitted to the State Duma of the Russian Federation. The federal budget for the next three years has the following main indicators in Table 1.

Тable 1.

Main characteristics of the federal budget for 2018-2020, billion rubles

Source: Explanatory note to the draft federal law "On the federal budget for 2018 and for the planning period of 2019 and 2020".

According to the table, it can be seen that in 2018–2020. it is planned to reduce the total volume of federal budget expenditures from 18.1% of GDP in 2017 to 15.6% of GDP by 2020.The total level of federal budget revenues in shares of GDP, according to the bill, will decrease from 16.0% of GDP in 2017. up to 14.8% of GDP by 2020 [4].

When analyzing the problems of financial policy at the present stage of the Russian Federation, one can observe the ineffective work of the state authorities.

In the Russian Federation, authorities operate at the regional, federal local levels. Their interaction provides coherence, complexity and functionality of the entire management structure.

In the practice of communication of organizations of regional, federal and regional administration, it is accompanied by certain failures:

- lack of sufficient resources. In these cases, either a shortage or an obvious insufficiency of economic and material resources complicates the administrative work. For an increase in the right-wing regional and district organizations, it is in no way accompanied by the transfer of the required resources. There are also pauses in this process;

- non-observance of the limits of responsibility, that is, if the higher apparatus, according to the motives of the "centralist" necessity, makes a decision of the process, which are assigned to the jurisdiction of lower links;

- information "failures", when each link of management receives and uses such information, the structure of which does not correspond to the content of its competence;

- discrepancy between the level of competence of civil servants and the legal scope of their competence [1, p.97].

State regulation of the economy cannot function successfully without a strong, well-thought-out legislative framework. The development of the tax system and its competitiveness is the way to better regulation of the economy. [3, p.24].

Thus, on the basis of all of the above, we can conclude that effective control is important at all stages of management and allows you to eliminate deviations, discrepancies and violations of the law.

Summing up, it should be noted that state programs are the main means of implementing state-military policy, for production, economic and social processes within the powers of the Russian government, federal, regional and local levels.

References:

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5. Okhotskiy, E.V. Public administration: on the way to a modern model of public management // Bulletin of MGIMO University. 2015.– No. 3. P. 115-127.
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