The totality of resources at the direct disposal of the state forms the public sector of the economy. The public sector of the economy is a sphere of activity focused on eliminating market failures and creating common and socially significant benefits. The public sector is a rather complex entity and largely overlaps with the state. It includes budgetary institutions, state extra-budgetary funds and state-owned enterprises, and other objects of state property. However, not all state-owned enterprises are focused on the production of public goods. It is not entirely correct to classify state-owned commercial enterprises as the public sector, the products of which are market goods and have the properties of competitiveness and exclusivity.

In addition to the above-mentioned instruments, the public sector in the broad sense of the word includes non-governmental non-profit organizations. The sector of non-profit organizations, which has received great development in leading foreign countries, is an important element of civil society. These structures operate in the area of market failures and are not focused on making a profit. The goals and objectives of their activities are set out in the charter. Non-profit organizations can make a profit, but it is used exclusively to achieve their statutory goals. An important difference between non-profit organizations and government organizations is that they are created on a voluntary basis and function independently. They are distinguished by greater openness and responsibility towards consumers of their services. In some cases, part of the regulatory functions traditionally performed by the state may be transferred to non-profit organizations.

The public sector is not only a set of state-owned enterprises and organizations owned by the state, but also funds. In this regard, public finance plays a key role among the components of the public sector: the state budget, its revenues and expenses.

The public sector is an area of the economy or part of the economic space where the following specific conditions are collectively determined:

1. the market does not operate or partially operates, therefore, a non-market method of coordinating economic activity, a non-market type of organizing the volume of activities predominates;

2. public, rather than private, goods are produced, distributed and consumed;

3. economic balance between demand and supply of public goods is carried out by the state, local governments and voluntary public organizations with the help of relevant social institutions and budgetary and financial policies.

Unlike the market sector, the public sector deals with public goods, which for the most part are not the subject of purchase and sale. In cases where a commercial transaction regarding a public good occurs, it is not considered as the main motivation for the activities of public organizations. For this reason, public sector organizations are called non-profits. Since the public sector is dominated by government activities, it is often called the public sector of the economy. The structure of the public sector is heterogeneous and includes three subsectors: state, voluntary-public, mixed. On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, on the other hand, there is an adjacent zone within the public sector between the state and voluntary public subsectors.

The scale of the public sector is characterized by the size of state ownership.

Tax bearers are persons, the final taxpayers, on whom the actual tax burden falls./18, p. 11/

Based on the definition of tax, its main features are:

1) Mandatory payment;

2) Individual tax gratuitousness;

3) Alienation of property owned by the taxpayer in cash;

4) Source of financial support for the activities of the state or municipalities.

Mandatory payment. In accordance with Article 57 of the Constitution of the Russian Federation, everyone is obliged to pay legally established taxes. As a rule, a taxpayer enters into tax relations and acquires the obligation to pay tax not of his own free will, but due to legally significant facts of his activities.

Individual tax free. The task of any state is to satisfy the collective needs of society by providing public goods. Society as a whole receives public goods for taxes paid. The payment of tax by an individual payer does not give rise to a counter obligation on the part of the state to provide him with any service.

Alienation of property owned by a taxpayer in cash. The tax is levied by alienating funds belonging to the taxpayer.

Source of financial support for the activities of the state or municipalities. The purpose of levying a tax is to provide financial support for the activities of the state and municipalities. This feature of the tax is the main one and is directly related to its fiscal function. /18, pp.7,8/

But according to M. A. Maiburov, the main features of the tax are:

1) imperativeness (obligatory);

2) individual gratuitousness;

3) legality;

4) payment for the purpose of financial support for the activities of the state;

5) relative regularity (frequency) of payment.

We have already considered imperativeness, gratuitousness and payment for the purpose of financial support for the activities of the state. Let's take a look at the remaining two. Legality as a feature distinguishes taxes in that their establishment, the procedure for calculation and payment, amendment or abolition are carried out exclusively on the basis of law. Taxpayers are required to pay legally established taxes.

The sign of relative regularity distinguishes a tax by a certain frequency of its payment within the strictly prescribed time limits by law, i.e. tax is not a one-time, but a regular withdrawal of funds, provided that the taxpayer retains the object of taxation. /10, pp. 12, 13/

According to I. A. Maiburov, tax legislation today knows two interpretations of the category “tax”: “The first definition, which existed for seven years, was given in Art. 2 of the Law of the Russian Federation “On the Fundamentals of the Tax System in the Russian Federation” dated December 27, 1991: “A tax, fee, duty and other payment is understood as a mandatory contribution to the budget of the appropriate level or to an extra-budgetary fund, made by payers in the manner and under the conditions determined by law acts."

The second definition is as follows, according to Art. 8 of the Tax Code of the Russian Federation “a tax is understood as a mandatory, individually gratuitous payment levied on organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management for the purpose of financial support for the activities of the state and (or) municipalities.” /10, page 14/

The movement of taxes is associated with the movement of all social capital. Through taxes, a significant part of the necessary and part of the surplus value is withdrawn. In the process of movement of money capital, its part in the form of taxes is periodically withdrawn from the circulation and takes on an independent form and movement...thus, the functioning of taxes simultaneously leads to a reduction in industrial consumption and to the formation of a state monetary fund, which increases state demand and consumption.”/18, page 9/

Description of work

Financing production in the public sector is the most important problem in the framework of state provision of public goods.
In a market economy, the public sector is called upon to perform only those functions, the successful implementation of which requires legally limiting the choice of potential participants in market transactions.
This also applies to the participation of the state in the financing and production of certain goods.
Private and public funding are often combined. This applies, for example, to the subsidization of utility services, and both the presence of a subsidy and its absence are compatible with the provision of services by both state (municipal) and private enterprises.

Introduction…………………………………………………………………………………..3
State entrepreneurship……………………………………………………4
Taxes as a source of income for the public sector………………...5
Contracting………………………………………………………………………………9
Conclusion………………………………………………………………………………..15
List of used literature……………………………………………………...16

Files: 1 file

Contracting makes sense primarily because the entrepreneur is much more interested in saving than the bureaucrat. However, if, for example, the contract specifies the scope of services, but their quality parameters are not sufficiently specified, the immediate reserve for savings may be a decrease in quality. When services are provided under the direct administrative control of a government agency, there is political dependence of producers on the sentiments of final consumers, even if this is often weak. A private manufacturer working under a contract has the right to build his relationships with end consumers at his own discretion, as long as he does not violate the law and the contract.

If we are talking about garbage collection, supplying food to hospital patients and even fire department, the corresponding quality requirements can be formulated quite clearly, so that the fulfillment of such requirements can be monitored with a high degree of reliability. It is in those areas and activities where there are operationally expressed quality requirements that the greatest achievements in the use of contracting have been observed. However, for example, in the areas of public education and healthcare, it is usually not possible to formally, clearly and comprehensively describe quality requirements.

This does not mean, however, that there are no prospects for contracting here. Even if the requirements for the final results of the activity cannot be formally described, there are two ways to effectively use contract-type relationships.

Firstly, on a contractual basis, as a rule, it is advisable to formulate individual factors and conditions for achieving final results. This path is, in fact, traditional. For example, although the qualitative requirements for the state of the country’s defense are not easy to formulate unambiguously, the requirements for specific weapons are specified with the necessary precision, and it is on this basis that contracts for the production of military equipment have long been concluded with private suppliers competing with each other. It is generally quite typical for pure public goods such as defense that the final “assembly” of the elements that make up the good occurs in the public sector, while many of these elements are effectively contracted out.

Secondly, if we are not talking about public goods, but about services consumed individually (but usually with significant positive externalities), the involvement of end consumers in contractual relations can help solve the quality problem. This requires that not only government agencies, but also consumers themselves have the freedom to choose services and their competing providers. This idea underlies the so-called voucher systems.

For example, instead of contracting directly with schools, a school funding agency could provide families with educational vouchers, i.e., financial guarantees of a certain amount that would be paid to the school of the family's choice. In this case, the approach characteristic of contracting in general is implemented: maintaining the responsibility of the public sector for financing activities is combined with its full or partial replacement as a producer. In this case, instead of a conventional contract between a government agency and a service provider (in this case, a school), what essentially emerges is a system of contracts.

If there is a principal-agent problem, then, other things being equal, there will inevitably be a loss of efficiency compared to the situation when this problem does not exist. At the same time, the task of rational choice between various suboptimal solutions is essential. From this point of view, contract types are of interest.

A fixed price contract is used when the results and costs are reasonably predictable (the above example of a fixed payment per ton of waste removed).

A cost-plus-profit contract provides that the payment amount is not set in advance, and the customer pays the supplier based on the level of actual costs, adding profit to them on the terms specified in the contract (for example, in proportion to costs). No matter how much the supplier's costs increase, the customer is forced to fully reimburse them, so the supplier does not bear any risk.

A cost-sharing contract requires a different arrangement. A basic payment amount is predetermined, which is guaranteed to the supplier, and if this amount is exceeded, additional costs are divided between the customer and the supplier in one or another proportion agreed upon within the contract. In other words, the risk of an unforeseen increase in costs is shared between the parties to the contract. This type of contract encourages the manufacturer (supplier) to achieve savings, while cost-plus contracts create an incentive to increase costs rather than reduce them. Therefore, cost-sharing contracts are often called incentive contracts.

A cost-plus-profit contract is acceptable only when the risk is very high and it is impossible to find a reliable supplier willing to share the risk. Often the best option It turns out that there is an incentive contract that provides for the sharing of costs, and the greater the risk, the, other things being equal, the greater the share of additional costs the state has to take on.

The types of contracts described are usually used when there is insufficient information about upcoming costs.

At the same time, there is also a significant lack of information about the composition of specific services to be provided in response to the needs of end consumers. Thus, when concluding a contract between a government agency and a medical institution, it is not always possible to accurately take into account upcoming changes in morbidity. This means that the quantity and quality of specific services that patients will require is not entirely predictable.

In such a situation, there are several options for action. A government agency may use a cost-per-service contract, which sets prices for individual services and pays based on actual volume. Such contracts are often necessary, but their disadvantage is that, like cost-plus contracts, they encourage higher costs. For example, a hospital that has entered into such a contract has an interest in carrying out as many expensive medical procedures as possible, even if not all of them are objectively necessary. Therefore, cost-per-service contracts require careful, sometimes expensive control of the reliability and validity of the volume of services provided.

Another option is a block contract. It provides for a fixed payment amount regardless of the volume of services actually provided (the payment can sometimes change when the number of persons enjoying the right to service changes and other parameters that the provider is not able to influence). For example, a hospital may receive a fixed amount for the year, and a clinic may receive an allocation based on the number of residents in its service area, but not on the number of services it actually provides. A block contract frees the customer (government body) from risk, placing it on the service provider and forcing the latter to look for savings reserves. However, if the risk is objectively large, the price that would secure an offer from competing potential suppliers may be prohibitively high.

In some cases, a satisfactory solution is provided by a cost-volume contract, which is actually a combination of a block contract and a cost-per-service contract. Some basic quantitative and qualitative characteristics of the service are established, within which the supplier is obliged to provide services at the expense of fixed allocations, as with a block contract. At the same time, if there is a need to go beyond the basic characteristics (for example, due to a sharp increase in morbidity, the hospital has to provide many more services than originally expected), then additional costs are reimbursed under the type of contract “cost per service”.

The choice of the form and parameters of the contract that are most suitable for solving a particular problem largely depends on the state of the market in which customers interact with suppliers, in particular on the characteristics of market failures that are encountered. However, be that as it may, the main types of contracts described above provide quite broad opportunities for government agencies to influence their potential suppliers in the interests of taxpayer voters.

CONCLUSION

Speaking about state entrepreneurship, we can say that the state, having finances, acts in relation to the private sector as a customer for the production of products and at the same time its buyer, and this gives a certain stability to the market.

However, the main source of funds is taxation. The largest place in the total revenues of the public sector is occupied by income tax, value added tax, excise taxes and payments to various extra-budgetary funds. For the federal budget, the value added tax plays the role of the most important source of revenue.

Speaking of contracting, if previously, on the basis of contracts, it was mainly achieved to provide the public sector with the conditions for its own functioning, now it is becoming increasingly common to use contracts to replace the public sector with the private sector in the process of servicing end consumers.

LIST OF REFERENCES USED

Dikushin A.M. “On the directions of development of state entrepreneurship in the Russian Federation” // Entrepreneurship in modern Russia - M.: Links, 2001.
Bezdenezhnykh M.M. Economics of the public sector. - Novosibirsk: NSTU Publishing House, 2003. - 242 p.
Nureyev R. Theory of public choice // Economic Issues. No. 8 - 11. 2002
Yakobson L. I. State sector of the economy. - M.: State University Higher School of Economics, 2000. - 356 p.
http://library.fentu.ru

THE CONCEPT AND BOUNDARIES OF FINANCE IN THE PUBLIC (GOVERNMENT) SECTOR

The concept of public finance. Public (state and municipal) finances are an integral part of the country's overall financial system. The sphere of finance is a set of operations with income, their distribution and redistribution in the process of social reproduction. As part of the process of production, distribution and redistribution of gross domestic product, funds of funds of business entities are formed and spent. These funds, considered in the process of their formation and movement, form the finances of economic entities, providing them with the possibility of normal functioning. The domestic economy of countries, in accordance with the system of national accounts, is divided, as already mentioned, into five sectors: non-financial corporate and quasi-corporate enterprises; financial corporations; public administration; private non-profit organizations serving households (population); households. Each of these sectors includes corresponding economic entities (institutional units).

Country finances represent a set of finance sectors of the economy, taking into account their financial relations with other countries. The finances of each sector of the economy are subsystems of the country's overall financial system. The main criteria for identifying subsystems are the special role of each sector of the economy in the overall economic system of the country and the presence of its own financial base, formed in the process of formation of primary incomes and their redistribution. The totality of finances of institutional units of each sector in their interaction with each other and other sectors forms the finances of economic sectors. One of these sectors is the state (public) administration sector. At the same time, state and municipal finances are combined into the general category of public (state) finances.

The need for public finance is generated by the very fact of the existence of the state and the need for monetary support for the performance of its functions. In the most general form, the function of government bodies is to carry out public policy and carry out government tasks through the provision of public goods (non-market goods and services) for consumption by the population and society as a whole, as well as through the redistribution of income (transfers) and wealth. Public goods can be provided for collective or individual consumption. Collective consumption includes, for example, public administration, defense, ensuring law and order, and individual consumption includes education, social protection, etc.

The monetary funds with which public finance operates are formed both from their own funds and from credit resources. The own funds of the general government sector are formed mainly from taxes and contributions paid to budgets and extra-budgetary funds by enterprises, institutions and organizations belonging to all sectors and the population, as well as from income from property and the sale of market services. Sources of credit resources are direct loans from financial institutions and raising funds through the issuance and sale of debt obligations - bonds, etc.

The financial system of the public administration sector is formed by the totality of finances of institutional units of government, including also the finances of the municipal level of government. Public finance- This is the finance of the general government sector. Because of this, it participates in the general circulation of income, expenses, output and the formation of assets and liabilities of the country.

Finance of the public administration sector is traditionally understood as a tool for mobilizing funds from all sectors of the economy for the implementation of state domestic and foreign policies. They represent a single complex financial transactions, with the help of which government bodies accumulate funds and make cash expenses.

The formation of state (public) finance resources and the expenditure of available funds in democratic states should be carried out on the basis of the preferences of citizens regarding the obligatory payments collected and the public benefits received. Therefore, the formation of budgets and other public funds is determined and approved by representative authorities elected by the population.

The main financial fund of the country, ensuring the formation, distribution and use of a centralized fund of funds, as a prerequisite for the functioning of any state, is the state budget. Along with the budget, extra-budgetary funds play a significant role. State extra-budgetary funds As a rule, they have a specific purpose. In Russia, in particular, there are three social extra-budgetary funds: the Pension Fund, the Social Insurance Fund and the Mandatory Medical Insurance Fund.

The budget and extra-budgetary funds are tools through which the redistribution of income and, accordingly, resources is carried out between sectors of the economy, types of activities, territories, economic entities, individual social groups of the population, etc.

In federal states, to which Russia belongs, depending on the levels of government, government budgets are divided into central government finances, regional government finances and local (municipal) finances. State extra-budgetary funds can also exist at various levels of government.

Carrying out a redistribution function through the budget, the state has a regulatory impact on the economy, promoting the development of certain types of activities and territories and restraining others, as well as on social development, ensuring the availability of basic public goods for the population and somewhat equalizing the income level of various social groups of the population.

Until recently, finance was viewed mainly from the perspective of the formation and expenditure of monetary resources of government bodies and ensuring their solvency. Operations related to the formation and expenditure of monetary resources include monetary transactions in which one institutional unit makes a payment or assumes an obligation expressed in monetary terms, and another institutional unit receives a payment or other asset, also expressed in monetary units. . Such transactions include, for example, the acquisition by government bodies of goods and services paid for in money, remuneration of civil servants, and payments of social benefits. All other transactions are considered as non-monetary transactions. Examples include barter transactions and transfers in kind.

At the same time cash flows- this is only a component of all resource flows with which business entities deal. Therefore they must be considered in interaction with all other threads as most important factor, influencing the value of assets. IN last years New aspects of financial relations are attracting more and more attention. A new understanding of public finance is emerging. The increasing complexity of developing and assessing the effectiveness of public policy has led to a refusal to consider finance only as a category characterizing the flow of funds. The need to reflect the flow of all resources in public finances, draw up balance sheets of public assets and liabilities and assess the value of state-owned property was recognized. This entailed the need to integrate all resource flows that government agencies deal with and build a public finance system that links the net value of public property at the beginning of a period with the flow of funds during the planning period and the value of this property at the end of the period . The scale of resources managed by the state and the increase in their share in the total resources of the country have led to an increase in the influence of public finance on the socio-economic development of the country. In this regard, the problems of efficient use of public financial resources have become more acute.

In this regard, all countries are reforming their public finance systems based on the recommendations of the International Monetary Fund adopted in 2001. The new system should ensure the identification, measurement, monitoring and assessment of the impact of government measures on the economy economic policy and other types of economic activities. The management of these operations must provide for the long-term sustainability of financial and economic activities. In this regard, the International Monetary Fund considered it expedient to abandon the balancing of receipts and expenditures of only monetary funds as the central link of the financial system and to link the movement purely cash flows with the movement of all assets owned by the state.

According to the new interpretation of public finance, they are not only an instrument for the formation and expenditure of monetary resources, but also an instrument that ensures the formation of all assets and liabilities of government bodies, including non-financial assets and liabilities.

Thus, it is taken into account that ultimately the sustainability of public finances is determined not only by solvency, but even more so by net worth state assets, the amount of property of which it is the owner, including non-financial assets (fixed capital, etc.).

When the state sells any property, for example, a building, land, valuables, it receives money, which is considered as budget revenue. In the case of purchasing property, the costs for it are considered as budget expenses. At the same time, the amount of change in assets is not reflected anywhere. Meanwhile, the government's purchase or sale of property does not change one's net income or net worth. Only the form of its assets changes: in the case of the sale of property, cash increases, and the fixed capital of the state decreases, in the case of a purchase - vice versa. This situation creates incentives for selling land and leasing areas rich in mineral resources, since incoming funds are considered as income. In addition, incentives are created to reduce investments, including in the development of human capital, since the funds spent on this are considered as expenses; an increase in the state’s own capital by taking schools, hospitals and other property onto the balance sheet is not considered.

If the same transaction is carried out by a corporation, it is reflected in the capital account. When a corporation purchases property, the purchase costs are treated as an investment rather than an ongoing expense. The acquisition of property does not affect net income, and the company's capital increases. There is a need to introduce a capital account into the budget. The accounting of assets and liabilities must reflect both tangible and intangible assets. This will lead to greater prudence in economic policy. The flow of funds into and out of government should lead to an increase in the value of government assets.

The implementation of new principles in all countries requires many years, including preparatory and transition periods. In the reform process, it is necessary to ensure not only a sustainable budget balance, but also a transformation of the public administration system. The proposed changes to methods and procedures require practical testing and development. Accelerated implementation of the new system may lead to a weakening of financial discipline and unjustifiably complicate budget administration.

Borders of finance in the public (government) sector. The definition of public finance is primarily related to the definition of the boundaries of the general government sector, i.e. sector of the economy whose finances are subject to review, and its delimitation from other sectors of the economy. The boundaries of the sphere of public finance are determined by the range of institutional units related to government bodies.

The country's public administration system consists of public authorities and their structures created as a result of political processes, endowed with a monopoly right to power within a given territory or its parts. Accordingly, the totality of all state institutional management units operating in the country forms the public administration sector. The public administration sector includes state and municipal authorities and non-profit organizations owned or controlled by them.

From a functional point of view, the state (public) management sector is determined by the tasks and functions assigned to individual units of this sector. This is the provision of non-market services, the redistribution of income and property and the implementation of government tasks. Government bodies do not carry out their functions for the purpose of obtaining financial or other commercial benefits.

General government finance must be distinguished from public sector finance as a broader concept that includes the general government sector and public non-financial and financial organizations. This is due to the fact that non-financial organizations (state industrial and other enterprises) perform functions related to the production and sale of goods and services, and state financial organizations (Central Bank and other state financial and credit organizations) perform functions similar to those of the financial sector of the economy, and are part of it. The functions of the general government sector are fundamentally different. This is the provision of public goods (the provision of non-market services to the population), the redistribution of income and property and the implementation of government tasks.

The separation of public finances from the finances of other sectors of the economy is predetermined by the need to distinguish between the public sector and the general government sector.

The public sector is a broader concept than the general government sector. It is distinguished from the position of property owned or controlled by the state. Along with public administration, whose activities are aimed at the implementation of society as a whole, it performs a number of other functions related to the production and sale of goods and services, as well as functions similar to those of the financial sector of the economy. The presence of such activities raises the problem of distinguishing between the operations of the general government sector and other sectors of the economy. The question that arises is whether such activities are part of general government operations or belong to some other sector of the economy. The issue of delineation between the public administration sector and other types of activities of enterprises and organizations belonging to the public sector arises when considering any type of industrial or commercial activity.

The problem is related to the fact that, in addition to dividing the economy into economic sectors, there is also a division of business entities according to forms of ownership. Businesses and financial institutions can be privately owned, publicly owned or controlled. In the latter cases, according to the system of national accounts, they belong to the public sector, but are not considered as government bodies and, accordingly, their finances are not government finances. When distributed across economic sectors, such units are respectively classified as non-financial corporate enterprises or as part of the financial institutions sector. The criterion is the main function of government and public institutions - the provision of non-market services, which in their goals, results and sources of financing differ from other sectors. To consider public finances, it is important to highlight those financial transactions that are associated with the state performing its main function.

Separating the finances of the general government sector from the financial sector of the economy. When forming public finances, it is necessary to make a clear distinction between the sectors of government and financial institutions. Financial institutions may be owned or controlled by government authorities and may accept transferable demand deposits, time deposits, and savings deposits, serve as monetary authorities, accept financial obligations, and purchase financial assets in the financial market. However, institutions or activities of this kind do not fall under public finance. Exclusion of such financial functions from government bodies is necessary for a more complete and clear presentation of the results of the financial activities of government bodies, expressed in the form of their transactions with the financial system - so as not to confuse these two sectors with each other.

The distinction between the public finance system and monetary regulation allows us to correctly assess the role of the general government sector in regulating monetary circulation and the balance of payments, as well as to distinguish between financing the deficit (or use, surplus) of the balance of payments with financing the deficit (or use of surplus) of the state budget . Therefore, the functions of monetary authorities performed by both the central bank and government agencies are considered to be performed by the financial sector of the economy. Functions of this kind are monetary regulation, management of international reserves, acceptance of transferable demand deposits, acceptance of time and savings deposits, simultaneous assumption of liabilities and acquisition of financial assets in the capital market. All transactions associated with the performance of such functions are not included in the operations of the general government sector and should be recorded as part of the operations of the financial institutions sector. At the same time, since central (national) banks and some other financial institutions are the property of the state, they are used by authorities to carry out state financial and monetary policy. The financial institutions sector includes the following subsectors: monetary authorities, commercial banks, depository banks, insurance companies, non-state pension funds, and other financial institutions. At the same time, the state pension and other state off-budget social funds of Russia belong to the public administration sector.

Insurance companies and pension funds are some of the financial institutions involved in mobilizing the savings of the population and paying insurance amounts in accordance with the contract and investing temporarily available funds in various assets. Insurance companies include corporate organizations and mutual funds, the main function of which is to provide various types of insurance (life insurance, accident insurance, illness, fire, accident, etc.). Insurance companies are not included in the general government sector. However, social insurance funds, the funds of which are generated through mandatory contributions from employees and/or employers, which are created, controlled and financed by the state and extend to the entire country (as is the case in Russia) or large groups of the population, belong to the public administration sector. Pension funds, arising on the basis of voluntary agreements between employees and employers, and not as a result of decisions of government authorities and operating on the basis of independent funds, are considered to be operating in the financial sector. They are independent organizations operating in the capital market. At the same time, pension funds for civil servants, whose funds are invested in public securities, belong to the public administration sector. In Russia the state Pension Fund, serving the entire population, also refers to public administration, and its financial operations to public finance.

Distinguishing the general government sector from the non-financial public sector. State-owned enterprises of the corporate and quasi-corporate type include enterprises that are owned or controlled by government authorities. They operate on a commercial basis, selling market goods and services to other sectors of the economy in large volumes and at market prices. Government authorities are considered the owners of a given enterprise if they own all or more than half of its shares or other types of capital participation. The criteria for determining who exactly controls an enterprise are more complex. Control includes policy making, management and direction. Even if the government does not own the majority of the capital of an enterprise, but still has significant control over its activities, the enterprise is considered a state-owned enterprise. In Russia in 2006 there were 160 thousand state enterprises.

Identifying non-financial public enterprises is important for several reasons, most notably for delineating the boundaries of the general government sector from which they should be excluded and defining the boundaries of the non-financial public sector.

State enterprises can be used to implement the most important government programs. An important type of state and municipal expenditures are the costs of investments in newly created or existing enterprises, carried out largely on a shared basis with private businesses. These expenses are an integral part of economic policy that affects the structure and technological level of production. The total need for financing of the general government sector and non-financial public enterprises and the ability to satisfy it are an important indicator of the total volume of transactions they perform and the impact they have on the state of the country's monetary system. The financial transactions and account balances of such public enterprises are not included in general government finance because their activities are inherently different from those of that sector and their production and financing tasks are not based on based on public policy considerations.

Those enterprises and organizations that do not sell goods and services to the public on a large scale, but are engaged in regulatory functions (for example, licensing sellers) should not be included in the sector of non-financial state-owned enterprises. If the main financing or control of the activities of such units belongs to government agencies, then they should be included in the general government sector.

The so-called departmental state enterprises should be distinguished from corporate and quasi-corporate state enterprises. Departmental enterprises include enterprises and organizations operating within the government sector and engaged in commercial or industrial activities on a small scale. Examples of departmental enterprises, the main activity of which is the sale of goods and services outside this sector in small quantities, are catering services in the buildings of government organizations, organizations engaged in rental housing for government employees. The provision of paid services to other sectors includes the issuance of passports, driver's license, court fees, as auxiliary activities to other government functions include the sale of seeds or breeding animals by experimental farms, the sale of museum postcards by state museums, and the sale of products of vocational schools. There may be sales of goods and services by government agencies in the form of tuition fees, fees for visiting parks and museums, etc. Examples of departmental auxiliary enterprises are military enterprises engaged in logistics, sales of military equipment, and repair shops.

The classification of non-profit organizations into the public administration sector depends on who finances and controls them. The general government sector includes non-profit institutions, wholly or for the most part financed and controlled by public authorities that may participate in their creation. Government funding may take the form of membership fees or other transfers, and government control may consist of organizing the effective operation of such organizations. Non-profit organizations that rely on private voluntary contributions and are not controlled by the state belong to the sector of non-profit organizations serving households. Discrimination issues may concern hospitals, educational institutions and etc.

IN in accordance with the above, to state (public) finances includes finances of the federal budget, budgets of the constituent entities of the Federation, budgets of municipal authorities and state and municipal extra-budgetary social funds. Budgets play a central role in public finances. At the same time, various state autonomous funds at the federal and regional levels play a significant role. As a rule, these funds accumulate resources to solve major problems that require special attention from government authorities. The sources of funds for such funds are targeted taxes and fees, transfers of funds from the budget, capitalization of income and loans. In France and Japan, approximately half of government spending is financed from such funds, in the UK - a third. The funds have a targeted nature and are intended to finance various social, economic, scientific, technical, credit and other problems.

Education and expenditure of public sector financial resources. As already noted, public sector finance is complex system. In a consolidated form, the formation and use of financial resources of state and municipal government bodies can be characterized on the basis of the system of national accounts. In Russia, the formation and use of financial resources of government bodies is characterized by the data in Table. 14.1.

Table 14.1

Education, distribution and use of revenues of the general government sector in 2005 and 2011* (billion rubles)

	2005 as a percentage of GDP	2011 as a percentage of GDP
Education income
Gross value added (GVA) created in the general government sector
Remuneration of employees
Other net taxes on production"
Sector Gross Profit (5 = 2 - 3 - 4)
Production taxes
Subsidies for production
Property income received
Property income transferred
Balance of primary income (10 = 5 + 6- 7 + 8-9)
Current transfers received (current taxes on income, property, social security contributions and others)
Current transfers transferred (social benefits in cash and others)
Gross disposable income (13=10+ 11- 12)
Final consumption expenditure (14 =15+ 16)
Customized products and services
Collective services
Gross Savings
Capital transfers received
Capital transfers transferred
Gross saving taking into account the balance of capital transfers (20 = 17 + 18 - 19)
Gross capital formation
Net acquisition of non-produced non-financial assets
Net lending (+), net borrowing (-) 23 = 20-21-22

National accounts of Russia in 2005-2012. M.: FSGS, 2013. P. 56.188.

“Other taxes on production” include taxes paid for the use of factors of production (land, means of production, use of labor) or for the right to carry out certain types of activities.

In the general government sector, as in other sectors of the economy, gross value added is created, employees are paid, and certain types of taxes are paid. As a result, gross profit public administration sector. It characterizes profit (loss) before taking into account income from property.

Balance of primary income. Primary incomes of economic sectors reflect their education among the first recipients, including in the public administration sector. In the process of redistribution, income (gross profit) of the public sector increases due to taxes on production. Taxes on production and imports in the SNA are interpreted as primary income of the state, considered as a participant in the reproduction process, providing the necessary conditions for its implementation. Taxes on production refer to taxes on products and “other taxes on production”, i.e. indirect taxes levied depending on the quantity of products produced (VAT, sales tax, excise taxes, customs duties, etc.). In relation to GDP, they amounted to 20.1% in 2011.

In the process of generating primary income, government bodies receive payments for providing their property (financial and non-produced assets) on a repayable and reimbursable basis to users of other sectors of the domestic economy and foreign business entities and pay money for the use of property owned by institutional units of other sectors and foreign business entities. Such payments include interest, dividends, rent for land and other natural resources, reinvested income from foreign direct investment, and some others. The balance of funds received and paid for the provision of property is in favor of the general government sector. In 2005, receipts exceeded payments by 131 billion rubles, in 2011 - by 349 billion rubles. As a result, the balance of primary income in 2011 amounted to 20.6%.

Gross disposable income. Disposable income of the public sector sector is income that can be used for consumption and savings without reducing cash holdings, selling assets or increasing liabilities to other sectors. They are formed as a result of the redistribution of income through cash transfers. Gross disposable income relative to GDP was 24.8% in 2002, 31.2% in 2005, and 27.1% in 2011. With more than 4 times the gross domestic product, the state is the largest economic actor in the country and has a huge impact on its socio-economic development.

The disposable income of the general government sector due to the balance of received and paid transfers in 2005 exceeded the balance of primary income by 49.5%, and in 2011 - by 31.9%.

Distribution of gross disposable income of the public sector into final consumption and savings. Government expenditures on final consumption in current prices in 2011 amounted to 18.0% of GDP, including 8.6% for individual goods and services, and 9.4% for collective goods. Gross savings during this period increased 1.8 times. The share of final consumption in gross disposable income increased from 54.0 to 66.3%. Accordingly, the share of savings decreased.

Gross savings and its use. According to the logic of reproduction, gross savings should be used for capital accumulation. The use of general government savings for gross capital formation in the economy consists of two streams. One is capital transfers to other sectors, the second is gross capital formation in the general government sector itself.

In 2011, capital transfers sent by the public sector of the economy to other sectors of the economy amounted to 1.6 trillion rubles. Accordingly, 31.4% of the sector's gross savings were allocated to capital transfers to the domestic economy. 1212 billion rubles were used for the purpose of accumulation in the public administration sector itself (for the construction of housing, hospitals, clinics, schools, other social facilities, as well as other investment projects). or 23.8% general government savings.

The amount of funds available to the general government sector for gross capital formation in this sector (savings taking into account the balance of capital transfers) amounted to RUB 3,496 billion in 2011. against 2099 billion rubles. in 2005. The increase in current prices was 1.7 times. In fact, gross capital formation in this sector increased 1.5 times and amounted to 1212 billion rubles.

At the same time, the amount of savings not used for accumulation increased sharply. Over six years, they grew by 1 trillion rubles. and amounted to 46% of the savings of the public administration sector. This sector concentrates 3/4 of the total savings that are not used for accumulation in the economy as a whole. These funds were used mainly for early repayment of external public debt, the formation of reserve funds and their use during the 2009 crisis.

In Russia, the practice has developed of investing reserve funds in securities of Western countries. These financial instruments are considered reliable; interest income on them is no more than 4% per annum. Meanwhile, the average return on productive assets in the Russian economy in 2005-2011. was 9%. Of course, investing in reliable and highly liquid securities of foreign countries is necessary in case of unforeseen situations. However, a reasonable limit should not be exceeded. The accumulated reserve funds at the beginning of 2009 amounted to 6.6 trillion rubles, and at the beginning of 2011 - 3.5 trillion rubles. The use of reserves contributed to maintaining normal operations banking system and support for social indicators, but could not prevent a sharp drop in production. At the same time, more than 3 trillion rubles. turned out to be unused. At the beginning of 2012, the total value of Russia’s international reserves amounted to $499 billion, including reserve funds of $112 billion. This is more than 2 times higher than the annual import costs in 2011. Such reserves are also excessive to ensure the stability of the ruble . In Russia, international reserves at the beginning of 2012 amounted to 2/3 of the M2 money supply. Meanwhile, in developed countries, the volume of reserves is many times less than the volume of the monetary base. We need to look for more profitable ways to use financial reserves.

It is more profitable in economic terms to use funds for the development of the national economy, increasing the volume and improving the structure of public goods. If these funds were invested in the economy, then projects implemented on their basis would increase the country's GDP and bring profit to the investor. Investing in enterprises on a commercial basis allows you to solve several problems. The state receives a stable source of funds for the budget with a rate of return that exceeds the return on investment in foreign securities. An increase in investment in the economy at the expense of public funds allows accelerating economic growth, promotes the modernization of production, has a significant impact on the structural restructuring of the economy and the development of high-tech, knowledge-intensive industries and frees the country from the danger of falling prices for raw materials and rising prices for imported goods.

The excess of the total amount of financial resources over the resources that were actually used for gross accumulation is Russia's net lending to the economies of other countries. For the economy as a whole, “net lending and net borrowing” reflects the balance of relationships with other countries in the provision and receipt of financial resources on a reimbursable and repayable basis. They are defined as the difference between the total amount of resources for financing capital gains and the total amount of gross accumulation and costs of acquiring land, natural resources and non-produced intangible assets. This value reflects the difference between the total amount of financial assets acquired by residents of a given country and the total amount of financial liabilities assumed by them in relation to residents of other countries.

Here and further, unless otherwise specifically stated, the term “public finance” refers to the finances of the state and municipal levels of government.
Glazyev S. Budget 2007: the same socio-economic meaning // Russian Economic Journal. 2006. No. 9-10. P. 24.

Introduction........................................................ ........................................................ ....... 3

Chapter 1. Theoretical aspects of the public sector of the economy.... 5

1.1. Concept, structure and mechanism of organizing the public sector 5

1.2. Functions of the public sector................................................................... .......... 9

1.3. Characteristics of the scale and dynamics of the public sector in countries with mixed economies.................................................... ....................................... 14

Chapter 2. Public sector of Russia................................................... ........ 18

2.1. Composition of the public sector in Russia................................................................... 18

2.2. Finance of the public sector in Russia.................................................... 20

2.3. The scale and dynamics of the public sector in Russia.................................. 25

Conclusion................................................. ........................................................ 28

List of used literature......................................................... ........ 28

Introduction

The Russian economy is currently going through a difficult period of adaptation to market conditions.

The public sector, which represents the totality of all resources at the disposal of the state, is being transformed radically. Under the conditions of the administrative-command system, the state, through the State Planning Committee, ministries, departments, enterprises and organizations of which it was the owner, tried to express the entire set of economic interests of citizens. As a result of the privatization of the vast majority of enterprises and organizations that were previously state-owned, many new private entities emerged with their own economic interests, which required a transformation in the distribution of resources through the public sector.

At the moment, the state can influence the economic situation of citizens and their well-being by forming market mechanisms for allocating resources and creating an adequate system of public spending. As a result, the structure of the public sector is changing. The problem is aggravated by the fact that the pre-reform system of production and distribution of social benefits has been destroyed, and new system is in its infancy.

The topic of the work “Scale and dynamics of the public sector in Russia” is relevant at the present time, since the state is called upon to provide a legal framework and social climate conducive to the effective functioning of a market economy; protection of competition; income redistribution; adjusting the distribution of resources in order to change the structure of the national product; stabilizing the economy, controlling employment and inflation, stimulating economic growth.

Quantifying the government's role in economic management is difficult, if not impossible. It is so wide and diverse that it cannot be expressed in any quantitative or statistical units of measurement. True, with a certain degree of certainty it is possible to establish the volume national product produced under the auspices of the government, the total volume of products purchased by the state, the share and absolute size of government investment. But it is hardly possible to accurately determine and measure the efficiency of state measures to protect environment, protecting the health and safety of workers, protecting the interests of consumers, ensuring equal access to vacant jobs and monitoring pricing practices in certain sectors of the economy, etc.

The purpose of the work is to consider theoretical foundations public sector, as well as the scale and dynamics of the public sector in Russia.

In this regard, the main tasks are:

Consideration of the concept, structure, organization and functions of the public sector;

Determining the scale and dynamics of the public sector in countries with mixed economies;

Consideration of the composition, finances, scale and dynamics of the public sector in Russia.

Chapter 1. Theoretical aspects of the public sector of the economy

1.1. Concept, structure and mechanism of organizing the public sector

The totality of resources at the direct disposal of the state forms the public sector of the economy.

The public sector of the economy is a sphere of activity focused on eliminating market failures and creating common and socially significant benefits. The public sector is a rather complex entity and largely overlaps with the state. It includes budgetary institutions, state extra-budgetary funds and state-owned enterprises, and other state-owned objects. However, not all state-owned enterprises are focused on the production of public goods. It is not entirely correct to classify state-owned commercial enterprises as the public sector, the products of which are market goods and have the properties of competitiveness and exclusivity.

In addition to the above-mentioned institutions, the public sector in the broad sense of the word includes non-governmental non-profit organizations. The sector of non-profit organizations, which has received great development in leading foreign countries, is an important element of civil society. These structures operate in the area of market failures and are not focused on making a profit. The goals and objectives of their activities are enshrined in the charter. Non-profit organizations can make a profit, but it is used exclusively to achieve their statutory goals.

The public sector is an area of the economy or part of the economic space where the following specific conditions are collectively determined:

· the market does not operate or partially operates, therefore, the non-market method of coordinating economic activity, the non-market type of organizing the exchange of activities predominates;

· public, rather than private, goods are produced, distributed and consumed;

· economic balance between demand and supply of public goods is carried out by the state, local governments and voluntary public organizations with the help of relevant social institutions and fiscal policy.

The scale of the public sector is characterized both by the size of state property (stock of resources) and the volume of government revenues and expenditures (flows of collected and spent funds). The public sector traditionally occupies a strong position in such areas as defense, basic scientific research, education, healthcare, culture, and public utilities. The scale of the public sector largely depends not only on the country’s objective economic capabilities, but also on the traditions and characteristics of the policy being pursued. According to Wagner's law (formulated at the end of the 11th century), the share of the public sector in the economy is constantly increasing in historical perspective. The German economist associated this pattern with the process of public goods conquering the private market.

In the new economic conditions, when the state acts as one of the market subjects, and in the public sector, public, non-profit, private, mixed organizations begin to interact along with the state, there is a need to change the organizational and functional structure of public finance, which will allow, while maintaining the regulatory role of the state, ensure a balance between the volume of social needs and the possibilities of meeting them.

In the first case, we are talking about the demand for public goods, in the second case, about their supply. The real existence of these market phenomena in the non-market public sector necessitates the establishment of a balance between them. In other words, a non-market balancing mechanism is needed, included in the market economic turnover of the public sector. In the market sector, a similar mechanism is the process of free pricing, as a result of which a balance is established between supply and demand for private goods. But even in this case, market equilibrium is based on indirect institutional restrictions designated by the state (taxes, subsidies, limiting the price level).

In the public sector, the regulatory mechanism has a fundamentally different design and specificity, due to the peculiarities of the dispute and the supply of public goods. The nature of public goods necessitates the equal satisfaction of demand for them. The supply of public goods differs in that it is implemented by state and public organizations, although most of the costs of obtaining these benefits are borne by consumers, that is, members of society in the form of taxes and voluntary payments. In the first case, we are talking about forcing economic agents to participate in the production of public goods, in the second case, about their voluntary participation in this process.

Ensuring the balance between supply and demand for public goods is influenced to a large extent by that part of this process that is implemented in the public sector, since a significant amount of public goods is produced here. This kind of balancing mechanism in the domestic literature is called financial-budgetary, which is established between supply and demand for public goods and is defined as “budgetary equilibrium.” The concept of budget equilibrium reveals the nature and essence of the mechanism for the creation and distribution of public goods, and taking into account the collective nature of their consumption, reflects the need to use coercive and mandatory instruments of influence on business entities to ensure the possibility of forming public goods.

1.2. Public sector functions

The main function of the public sector is the provision of public goods on a non-market basis and social transfers. This determines its differences in its goals, results and from other sectors. In this regard, the public administration sector is distinguished in the system of national accounts. At the same time, some enterprises, the main function of which is the production of goods and services and their sale at market prices, belong to the state, which gives it the opportunity, as the owner, to exert a certain influence on them and direct their activities in the interests of society as a whole. When classified by sector of the economy, such units, according to their primary function, are classified, like similar private sector enterprises, in the non-financial corporate enterprise sector or form part of the financial institutions sector.

The main functions of the general government sector are also the provision of political and regulatory activities, the provision of public goods (goods and services) on a non-market basis for their collective or individual consumption by members of society, as well as the redistribution of income and wealth through transfers. Institutional units of other sectors are not engaged in activities characteristic of public (state) management.

The main criterion for classifying institutional units into the public administration sector as an institution that manages the affairs of society is the functions they perform. The general government sector consists primarily of government agencies (general government institutional units) exercising government powers as their main activity. As institutional units, they also engage in economic activities: they own assets, conduct transactions with other institutional units, accept liabilities, and have a full set of accounts, including a balance sheet of assets and liabilities.

Government bodies are the main institution that organizes and coordinates the relationships between citizens and social groups and provides conditions for their joint activities. Using their organizational forms and functions (legislative, executive and judicial), they manage the affairs of society. Their area of activity includes issues related primarily to public goods, market failures, efficiency and fairness, public choice, externalities, public finance, income distribution and redistribution, etc.

Nonprofit organizations implement public policy and are funded by government institutional units.

Institutional units of the general government sector are subjects of the market economy. At the same time, they, primarily at the federal level, determine strategy and policy in the field of socio-economic development of society.

Their role in the economy is dual. On the one hand, they are a tool for organizing political and economic activity in the country, allowing members of society to coordinate their actions to achieve common goals. On the other hand, the performance by the public management sector of its functions of coordinating the activities of citizens is based on the ownership of its institutional units to the property necessary for this (fixed assets, etc.) and the mobilization and expenditure of funds. Already due to these features, the public administration sector in a market economy becomes one of the sectors of the economy that carries out economic and financial transactions with other sectors in all areas of economic life. Subjects of the general government sector carry out economic and financial transactions both among themselves and with institutional units of other sectors of the economy. They determine and regulate economic development and at the same time function as subjects of a market economy within the framework of its norms and rules.

The participation of the public administration sector in economic life is also determined by the need to form and constantly adjust the institutional foundations of a market economy. A clear example is the role of the state in forming the foundations of a market economy in Russia in the 90s of the last century. State authorities legislatively ensure the right of ownership, opportunities for competitive entrepreneurship, restriction of monopoly activities, guaranteeing the execution of contracts, etc. By creating institutional foundations, the state predetermines the norms of economic behavior of subjects of a market economy and the characteristics of the national economies of various countries, in which the norms of liberal or socially oriented market economy.

The scope of activity of the public sector of management also includes economic transactions with foreign partners and regulation of foreign economic relations of the entire national economy, aimed at developing and implementing a national policy that makes it possible to use the benefits of globalization and minimize its negative aspects.

The economic activity of the public (government) management sector ultimately implies a focus on improving the well-being of citizens. At the same time, a rational relationship between final consumption, savings and capital accumulation must be observed, with a view to ensuring sustainable long-term economic growth. In this regard, a serious problem with the theory of the welfare state is the contradiction between the need to increase production efficiency and the fairness of income distribution.

The performance by government bodies of their functions presupposes that they are endowed with special rights that private institutions are deprived of. A number of functions of public administration are carried out on the basis of coercion. The state has the right to pass mandatory laws, punish non-compliance, set taxes, and call for military service. This is one of the important differences between the activities of the public administration sector and the private sector and from the activities of enterprises owned or controlled by the state, where everything is built on a contractual basis.

Since the state not only exercises the functions of public administration, but also owns or controls a significant number of enterprises that produce goods and services on a commercial basis, there is a need to consider the overall volume of economic activity of the state, taking into account the ownership of institutional units.

In this regard, along with the concept of the public (public) management sector, the concept of the public (public) sector can be used, which unites the public (public) management sector and state-owned non-financial and financial corporations operating on commercial principles. The main function of non-financial corporations is the production of goods and non-financial services for the purpose of selling them on the market and making a profit. The main function of financial corporations is financial and credit activities also for the purpose of making a profit. Accordingly, the main activities of the public (state) sector of the economy are ensuring political and regulatory activities, providing public goods, redistributing income and wealth and providing social assistance to the population, as well as the production and sale of goods, services and financial and credit activities on a commercial basis carried out by enterprises owned or controlled by the government.

With this approach, the state in the field of economic activity acts not only as an economic sector of public administration, but also as a manager or regulatory body in relation to enterprises owned or controlled by it. The concept of “public sector” is based on the thesis that the state acts “on behalf and on behalf of” its citizens and uses all property owned or controlled by it in their interests.

The scope of activity of state-owned enterprises producing goods and services on a commercial basis are: production in which private firms do not show interest; areas that require large initial investments that private entrepreneurs cannot afford; production associated with high risks; areas of activity where the participation of private capital is undesirable for the state.

The target function of state-owned enterprises in many cases is to better utilize the resources of the economy, provide employment, maintain and stimulate economic growth. These goals are achieved under conditions that are unacceptable for private capital due to their financial unprofitability. At the same time, the functioning of such enterprises turns out to be necessary from the standpoint of the economy as a whole.

The traditional sphere of activity of non-financial state-owned enterprises is the branches of natural monopolies. Such industries may include railway transport, electric power companies, enterprises for the extraction and transportation of oil and gas through pipelines, post offices, telephone companies, water and heat supply enterprises, sewerage, roads, etc.

1.3. Characteristics of the scale and dynamics of the public sector in countries with mixed economies

There are different ways to assess the size of the public sector and the extent of its impact on the economy. The simplest and most common method is to study indicators published by national statistics. These include: the volume of state budget revenues and expenditures in absolute terms and its relationship with basic macroeconomic indicators (for example, with gross domestic product - GDP); the number of civil servants, their distribution by levels and management structures; the size of state property; the share of state-owned enterprises in the main indicators of economic sectors; the number of non-profit organizations and a number of other indicators.

The scale of government influence on the economy in different countries are different. If in China consolidated budget revenues do not exceed 8% of GDP, then in countries such as Sweden, France and Italy this figure is around 40%. In some years, the share of GDP redistributed through the budget was even higher in different countries.

The scale of state ownership in different sectors of the economy also differs significantly. For example, countries such as Great Britain, France and Germany are characterized on average by a fairly high share of state-owned enterprises in industry. On the contrary, in Japan and the USA the share of state-owned enterprises in almost all sectors of industrial production does not exceed 25%.

In different countries, attempts are made from time to time to reduce the scope of government regulation of the economy. A typical example of such a policy is the market reforms carried out in post-socialist countries and consisting in a large-scale reduction of the public sector, replacing the state with the market through privatization. During the period of market reforms in the 90s of the 20th century, government spending in the former socialist countries was reduced in both absolute and relative terms. If in 1995 the expenses of the consolidated budget Russian Federation accounted for 31.6% of GDP, then in 2006 this figure dropped to 26.8%.

The size of the public sector in the economy is determined by the ratio of those benefits and costs that are associated with its functioning. The benefits received by society include: compensation for market “failures”, smoothing out the cyclical development of the economy, achieving greater social stability by equalizing citizens’ incomes, etc. Costs include increasing the level of taxation, expanding the bureaucracy and increasing costs for maintaining the state apparatus, the influence of the political situation for making economic decisions, etc.

In different countries, administrative reforms are periodically carried out with the goal of reducing the state apparatus and optimizing its structure. However, world experience shows that the public sector objectively tends to expand. The reasons for this are:

1. Presence and extent of market failures. With the development of the economy, new types of activities arise in which the market itself cannot function effectively (for example, the protection of intellectual property rights). As a consequence, new tasks and functions of state regulation appear, which causes an expansion of the public sector;

2. Cycles of political conjuncture. The dynamics of the public sector are associated with the process of preparation for the next elections to government bodies. In an effort to expand the number of their voters, the ruling political forces increase social expenditures, which are then extremely difficult to reduce;

3. Redistribution programs. The problem of increasing living standards continues to remain relevant not only for poor countries of the world, but also for economically developed countries. Categories of the population that, for one reason or another, cannot provide themselves with a decent level of income within the framework of a market system, depend on transfers received from the public sector. Political forces those advocating redistribution programs find support among such voters. The benefits of increasing government spending are usually more visible and faster than the benefits of reducing them. Therefore, incentives to expand redistribution programs are stronger than to reduce them

4. Interests of the bureaucracy. The theory shows that any bureaucratic organization strives to expand its activities. The interests of government agencies lie in increasing the volume of resources under their control (including budget expenditures) and are thus directly related to the growth of the public sector.

The positive and negative consequences of expanding the public sector manifest themselves in different ways. If positive results arise quickly enough and are quite clearly personified, but negative trends are less obvious and accumulate over a long period of time. As a result, if the state does not accept special programs limitations of the public sector, it tends to expand.

Chapter 2. Public sector of Russia

2.1. Composition of the Russian public sector

Based on the criterion of ownership and control over the activities of enterprises, in Russia a significant part of corporations classified in the SNA sectors of non-financial and financial corporations fall into the state (public) sector. This applies, in particular, to such corporations as OAO Gazprom, OAO Russian Railways, OAO United Aircraft Corporation, OAO United Shipbuilding Corporation, defense plants, enterprises producing and refining about a quarter of oil, etc.

The state organization is the Central Bank of the Russian Federation. It regulates the issue of money, exercises control over the volume of credit, manages the country's international reserves, and exercises general control over the monetary system. The state may also own other financial and credit institutions that accept transferable demand deposits, time deposits and savings deposits, accept financial liabilities and acquire financial assets. Such institutions are Sberbank of Russia, Vnesheconombank, Vneshtorgbank and some other financial and credit institutions.

Government bodies can influence their economic policies and practical activities. Belonging to the Russian public sector determines a number of features that allow authorities to use these enterprises to solve socio-economic problems and determine the goals of their activities. When forming a production program, public interest is placed above the interests of the enterprise. Authorities can influence the prices of products sold, enter into contracts for the supply of products for government needs, and use other methods of influence.

In return, they can provide financial assistance, grants, loans on preferential terms, etc. If government bodies make decisions that negatively affect the financial position of enterprises, losses or lost profits can be compensated from budget funds. The degree of their economic independence is inversely proportional to the degree of state control. The right of ownership and property-based control allows government authorities to use them for the purpose of carrying out state economic policy and regulating the economy.

However, they do not perform functions in the state (public) administration of Russia; their functions do not include providing the population with free public goods or social payments. By the nature of their economic activities, they belong to the sectors of non-financial or financial corporations. The central link in the economy of the public (public) sector of Russia is the economy of the state (public) management sector.

Russian government authorities are considered the owners of an enterprise if they own all or more than half of its shares or other types of capital participation. State-owned enterprises include state and municipal unitary enterprises operating on the basis of the right of economic management or the right of operational management. Another form of state or municipally owned enterprises are joint stock companies, in which they own more than half of the share capital.

The criteria for determining who exactly controls an enterprise are more complex. Control includes policy making, management and direction. Even if the government does not own the majority of the capital of an enterprise, but at the same time they largely control its activities, such an enterprise is essentially state-owned. There is no single criterion determining the procedure for classifying state-controlled enterprises into the public sector. Currently, work is underway to clarify the criteria on the basis of which enterprises can be classified as part of the Russian public sector.

2.2. Russian public sector finance

A country's finances represent the totality of the finances of economic sectors, taking into account their financial relations with other countries. The finances of each sector of the economy are subsystems of the country's overall financial system. The main criteria for identifying subsystems are the special role of each sector of the economy in the overall economic system of the country and the presence of its own financial base, formed in the process of formation of primary incomes and their redistribution.

The totality of the finances of the institutional units of each sector in their interaction with each other and other sectors forms the finances of the country’s economic sectors.

According to established practice, general government finance combines state and municipal finance.

The need for finance to ensure public administration of the country is generated by the very fact of the existence of the state and the need for monetary support for the performance of its functions.

In its most general form, the function of government, as already mentioned, is to implement public policy and carry out public tasks through the provision of public goods (non-market goods and services) for consumption by citizens and society as a whole, as well as through the redistribution of income and wealth. In a civil, democratic society, it is assumed that the state is called upon to carry out the functions entrusted to it by its citizens.

The content of public (state and municipal expenditures) is directly related to the functions of federal, regional and municipal authorities, and expenses act as costs of the public management sector associated with the implementation of its functions. These include expenditures by the general government sector and government-controlled and government-funded non-profit organizations serving households. The monetary funds operated by government bodies are formed both from their own funds and from credit resources. The country's general government sector's own funds are formed mainly from taxes and contributions paid to budgets and extra-budgetary funds by enterprises and the population, as well as from income from property and the sale of market services.

Thus, the finances of the Russian government sector are a single set of financial transactions with the help of which government bodies accumulate funds and make cash expenses.

Public finance serves the state as a system of authorities that govern the life of society. They are not only a tool for the formation and expenditure of monetary resources, ensuring the provision of public goods, but also a tool that ensures the formation of all assets and liabilities of government bodies, including non-financial assets and liabilities. Flows of funds (primarily financial resources) entering and leaving government bodies should lead to an increase in the value of state property.

Considering that the country carries out its functions to ensure collective or individual consumption of public goods by households and interacts with economic entities, public finance reflects the relationship between the state, on the one hand, and legal entities and households - on the other, regarding mandatory payments to the state funds and the use of these funds. Taxpayers are interested in effective use financial resources, but understand them differently. This gives rise to complex problems associated with differences in the interests of individual social groups of the population, contradictions between groups of entrepreneurs and differences in the understanding of efficiency.

The main areas of expenses arising from the functions of the general government sector in state budgets and other state financial plans of the Russian Federation provide for expenses for the following tasks:

Providing citizens with public goods for collective use;

Providing citizens with public goods for individual consumption, including the activities of non-profit institutions serving households that are wholly or in large part financed and controlled by government authorities or engaged primarily in servicing government agencies;

Social insurance, including pensions;

Promotion of economic development.

Through finance, the functions of the state are realized not only in the sphere of economic and social development. In political terms, public finances are a factor in the reproduction and development of existing institutions and structures of government, established traditions of government. Therefore, consideration of the budget and other state financial funds is always the subject of intense political struggle in parliaments and other representative institutions. Political parties, coming to power, realize their goals through the formation and approval of financial plans in accordance with their strategic goals in the field of economic and social policy, take control of the apparatus of financial bodies and practically implement budget policy.

Thus, the public sector of the economy includes enterprises owned or controlled by the government. These enterprises have their own financial resources and are financially responsible for their activities. With the help of monetary resources, enterprises acquire all the factors of production necessary for functioning.

Enterprise finance is a set of operations for the receipt, distribution and use of funds and other financial instruments in the process of production and sale of goods and services. Financial transactions are carried out in order to organize cash flows that meet the needs of enterprises in the formation and expenditure of funds, and the funds of funds generated and spent by the enterprise constitute its monetary resources.

State-owned enterprises interact with other economic entities: spheres of real production, financial sector enterprises, government bodies (paying taxes, receiving subsidies, etc.) and households. The result of this interaction is the mutual provision of financial resources, providing each sector of the economy with the opportunity to realize its functions. In this case, the final data are determined only for sectors of the economy as a whole, without highlighting data for state-owned non-financial and financial corporations.

Financial transactions and account balances of government-owned enterprises and financial institutions are not included in general government finances because their activities are inherently different from those of the sector and are not related to the performance of general government functions. Public finance takes into account only the final transactions between the general government sector and government-owned enterprises and financial institutions, mainly related to the payment of taxes and the receipt of subsidies and loans, which reflect the net flow of funds entering or exiting this sector as a result of such operations.

At the same time, there is a need to determine the total volume of property owned by the state and the total amount of financial flows associated both with the activities of government bodies and with the activities of corporations owned and controlled by them, carrying out production and financial activities on a commercial basis. The financing needs of the public sector, including both the general government sector and its owned and controlled enterprises, and the ability to meet them are indicators of the total volume of their financial activity and the influence that the government has on the economy. The implementation of this approach is associated not only with making fundamental decisions, but also with complex problems of accounting for financial transactions, especially in relation to controlled enterprises.

2.3. The scale and dynamics of the public sector in Russia

Institutional units of the Russian public administration sector, like institutional units of other sectors of the economy, have assets that support their activities. The economic activity of a country's public administration sector depends not only on its solvency, but also on the net value of public assets - the amount of property of which it is the owner.

Its capabilities and economic sustainability are determined by the integrated value of all resource flows that the country's government agencies deal with and the net value of state property. The value of state property is determined by the size of non-financial and financial assets.

The main ones are not financial assets sectors of public administration in Russia are fixed assets, inventories (strategic reserves, goods stored for resale, etc.), valuables (precious metals and stones, jewelry, works of art) and non-produced assets (land, subsoil resources, etc. .).

The most important financial assets are currency and deposits, loans and borrowings, securities, monetary gold, derivative financial instruments, etc.

The total amount of property owned by the sector, accumulated as a result of activities over all past periods, is characterized by a balance sheet of assets and liabilities, reflecting the value of assets owned by government bodies and financial requirements to them from institutional units of other sectors of the country's economy and foreign counterparties. The increase in the scale of resources owned and controlled by our state and the increase in their share in the volume of resources determine the growth of its influence on the socio-economic development of the country.

In the public administration sector, as well as in other sectors of the Russian economy, gross value added is created, gross and disposable income is generated, final consumption and capital accumulation are carried out.

Possessing assets and carrying out economic activities, the sector carries out all types of economic transactions: production and use of goods and services, distribution and redistribution of income, transactions with financial instruments– acceptance and acquisition of financial liabilities, increase in deposits in banks, etc.

A difficult aspect of the analysis is the factors of economic growth in the public (government) sector. If in relation to the corporate sector of the country's economy we can say that the initial factor of development is aggregate effective demand, which encourages an increase in production, then the public administration sector provides services mainly free of charge and the motives for its development are related to its internal needs and the need to perform its functions in relation to to other sectors of the economy, and above all to the household sector. At the same time, final consumption and accumulation of this sector exceed the value own production, and the total amount of goods and services provided by them to other sectors is determined mainly by the amount of purchases in the corporate sector at the expense of tax and non-tax budget revenues.

In Russia the share industrial enterprises state ownership in production volume is about 8%. Since the mid-1990s, this figure has fallen by more than 1.5 percentage points. State-owned enterprises have the largest share in the volume of industrial output in such industries as mechanical engineering and metalworking (18.4% in 2007), the building materials industry (11.3%) and the electric power industry (10.7%) (Table 1).

Table No. 1

Share of enterprises of state and municipal ownership in the main indicators by industry (as a percentage of the total)


volume of industrial output	volume of industrial output	number of industrial production personnel

All industry
including by type of ownership:
state
municipal

Continuation of Table 1

100


From the entire industry by industry:
electric power industry
state
municipal

state
municipal

state
municipal
non-ferrous metallurgy
state
municipal

state
municipal
mechanical engineering and metalworking
state		23.5 and 6.3
state
state
municipal	100
state
municipal

In Russia, the share of the number of workers employed in the public sector, including the public administration sector and enterprises owned by the state. Thus, in 2007, the total number of people employed in the economy was about a third. The public sector's fixed capital accounts for more than one-fifth of the country's total fixed capital. This indicates that the volume of activities of state-owned enterprises exceeds the volume of activities of the general government sector.

It should be borne in mind that in the given data, enterprises and organizations that are state-owned are understood to mean enterprises and organizations that are completely owned by the state. Connecting state-controlled enterprises and organizations to them will lead to a significant expansion of the public sector of the economy (public sector). According to estimates, its share in the country's total GDP will be more than half.

Conclusion

Thus, the public sector is a rather complex entity and largely overlaps with the state. It includes budgetary institutions, state extra-budgetary funds and state-owned enterprises, and other objects of state property. However, not all state-owned enterprises are focused on the production of public goods. It is not entirely correct to classify state-owned commercial enterprises as the public sector, the products of which are market goods and have the properties of competitiveness and exclusivity.

The scale of the public sector is characterized both by the size of state property (stock of resources) and the volume of government revenues and expenditures (flows of collected and spent funds).

The main function of the public sector is the provision of public goods on a non-market basis and social transfers. This determines its differences in its goals, results and sources of financing from other sectors.

List of used literature

1. Ahinov public sector. – M.: Faculty of Economics of Moscow State University, TEIS, 2006

3. , Morgunov public sector. - M.: Economic School, 2004

4. Egorov of the Russian public sector: Course of lectures. - M.: Faculty of Economics, TEIS, 1998

6. Pikulkin A.V. “Public administration system”, 2004

8. Stieglitz. Economics of the public sector. M., 1997

9. Shamkhalov F. I. “State and economy: Fundamentals of interaction”, 2006

11. Golunov sector Russian economy: contours of budgetary regulation. // International journal "Problems of theory and practice of management" - 2002. - No. 1. - With.

Yakobson L. I. "Economics of the public sector: Fundamentals of the theory of public finance", 2006

Oreshin V. P. " Government regulation national economy", 2006

Isaev and public sector finance. – M: INFRA-M, 2007

Egorov of the Russian public sector: Course of lectures. - M.: Faculty of Economics, TEIS, 1998

Morgunov public sector. - M.: Economic School, 2004

Yakobson L. I. "Economics of the public sector: Fundamentals of the theory of public finance", 2006

Enikeev, organization and management of the public sector. Textbook for universities / M.: UNITY-DANA, 2008

Shamkhalov F. I. “State and economy: Fundamentals of interaction”, 2006

Isaev and public sector finance. – M: INFRA-M, 2007

Golunov sector of the Russian economy: the contours of budget regulation. // International journal "Problems of theory and practice of management" - 2002. - No. 1. - With.

Ahinov public sector. – M.: Faculty of Economics of Moscow State University, TEIS, 2006

Yakobson L. I. "Economics of the public sector: Fundamentals of the theory of public finance", 2006

Stiglitz. Economics of the public sector. M., 1997

Oreshin V. P. “State regulation of the national economy”, 2006

Enikeev, organization and management of the public sector. Textbook for universities / M.: UNITY-DANA, 2008

Isaev and public sector finance. – M: INFRA-M, 2007

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Introduction

Chapter 1. Theoretical aspects of the functioning of the public sector

1.1 Public sector: essence and functions

1.2 Social and economic functions of the public sector in the modern economy

Chapter 2. Analysis current state public sector in the Russian Federation

2.1 Social functions of the public sector in the Russian Federation

2.2 Economic functions of the public sector in the Russian Federation

Conclusion

Bibliography

Introduction

The relevance of the study of this topic is determined by the need to strengthen the economic positions of the modern Russian state, various structures united within the public sector, in order to achieve effective, sustainable socio-economic development. In providing general conditions functioning of the economy and the life of society, in the regulation of socio-economic processes, the most important role belongs to the public sector. Its role is determined by the fact that state regulation of the national economy is based on the concept of active participation of the state not only as a subject of regulation, but also as the owner state. Today, the public sector, and this is evidenced by world experience, serves as both the economic support of the country and the most important area of government regulation. Antonova, N.B. Public Administration: Textbook / N.B. Antonov [and others]; under general editorship N.B. Antonova. - Minsk: Acad. ex. under the President of the Republic Belarus, 2012. - 440 p. - p.18

In modern economic literature, the concept of “public sector” is interpreted ambiguously; most often it is understood as part of the country’s economy, which is a complex of objects wholly or partially owned by central or local government bodies and controlled by the state.

The public sector, which includes state business structures (enterprises, institutions, organizations), state budgetary non-profit organizations and institutions of education, science, health care, culture, social security, defense, nature conservation, state security, etc., as well as that state property that is not included in the property assigned to business structures, for example, land, natural resources, etc., funds that make up the state treasury.

Today, the public sector exists in all countries with a market economy, but has a different share (in terms of volume of output, number of employees, number of enterprises, etc.), which determines the extent of its influence on the country’s economy. The activities of the public sector are aimed at providing public goods to consumers, in which the key role belongs to the state. At the moment, the state can influence the economic situation of citizens and their well-being by forming market mechanisms for allocating resources and creating an adequate system of public spending.

The purpose of the study is a consideration of the theoretical foundations of the public sector, as well as an analysis of the functions of the public sector in Russia. To achieve this goal, the following tasks were formulated and sequentially considered:

* study the essence and functions of the public sector;

* consider the social functions of the public sector in Russia;

* consider the economic functions of the public sector in Russia;

* analyze the state of the modern public sector in Russia;

The object of the study is the public sector in the modern economy.

Subject of study - functions of the public sector in the Russian Federation.

The works of the following authors were used as the theoretical basis for the study: P.V. Savchenok, I.A. Pogosova, E.N. Zhiltsova and others.

Structure course work is subordinated to the solution of main goals and objectives and consists of an introduction, two chapters, a conclusion, and a list of references.

Chapter 1 is devoted to the theoretical aspects of the functioning of the public sector; The chapter is divided into 2 paragraphs, in the first the public sector is its essence and functions, in the second - the social and economic functions of the public sector in the modern economy.

Chapter 2 is also divided into 2 paragraphs; This chapter is devoted to an analysis of the current state of the public sector in the Russian Federation: the first paragraph examines the social functions of the public sector in the Russian Federation, and the second considers the economic functions of the public sector in the Russian Federation.

Glava 1.Theoreticalaspects functioning of the public sector

1.1 Public sector: essence and functions

In modern economic science, along with the concept of “state,” the concept of “public sector” is widely used. These categories are not the same, but are closely interrelated with each other. The public sector is a set of resources at the disposal of society and used to organize the production and supply of public goods in areas of economic activity where the market completely or partially does not work, that is, market failures occur. N.A. Voskolovich, E.N. Zhiltsov, S.D. Enikeeva ECONOMY, ORGANIZATION AND MANAGEMENT OF THE PUBLIC SECTOR Moscow - 2008. - p.10 The reasons for market failures can be limited (imperfect) competition, natural monopolies, external effects, information asymmetry, incomplete markets, income differentiation.

The public sector is dominated by government activities and is therefore often referred to as public sector. This identification of the public and state sectors is to a certain extent acceptable, but at the same time, the concept of the public sector is much broader. Since it also includes non-profit enterprises of public organizations, collective enterprises, public and religious organizations that provide services related to the social welfare of the population. Ponomarenko E.V., Isaev V.A. Economics and finance of the public sector (basics of the theory of an effective state): Textbook. --M.: INFR, 2009. -- 427 p. -- page 10 All these organizations are called by one term - non-profit organizations or by another, less common term - the third sector of the economy (voluntary - public), meaning that the first two sectors are private and public, and the third sector is non-profit organizations. Thus, the public sector includes three subsectors:

1. public sector. It includes government institutions and organizations that are financed from the budget and provide non-market services for collective, joint consumption, as well as carrying out the functions of redistributing national wealth and national income;

2. voluntary - public sector. It unites organizations that are engaged in the provision of non-market services of a personal nature to the population, in the field of education, health care, culture and art, etc., as well as those that satisfy collective needs - political parties, trade union organizations, societies, associations and other public organizations. This sector includes organizations that are not funded or controlled by government agencies. Their income comes mainly from voluntary contributions and donations and their income from property;

3. mixed sector, which is represented by the state with mixed capital (foreign, private). It occupies an intermediate position between the voluntary - public and state sectors. It operates mixed-finance organizations to achieve non-profit goals.

An important difference between non-profit organizations and government organizations is that they are created on a voluntary basis and function independently. They are distinguished by greater openness and responsibility towards consumers of their services. In some cases, part of the regulatory functions traditionally performed by the state may be transferred to non-profit organizations. Ponomarenko E.V., Isaev V.A. Economics and finance of the public sector. - M: INFRA-M, 2007. - p. 24 Many economists study public sector activities because government decisions affect the lives of people and organizations. The most significant impacts come from decisions related to public spending, taxes and various rules business. The welfare of society depends on these decisions. The market mechanism cannot perform all those functions of the national economy that are designed to ensure efficient and fair distribution of resources. Next, we consider the main functions for which the public sector exists.

1. Support competition. The price system leads to an efficient allocation of resources only if there is competition in both the resource market and the market for finished goods. This means that it is necessary to create the most favorable conditions for firms to open production, so that firms have complete information about prices and opportunities for profitable activities. In order to maintain competition and protect against the possible power of monopolies, the government can establish special rules for doing business, using means such as taxes and subsidies.

2. Provide supplies of goods that are not supplied in adequate proportions by the private sector. Even in perfectly competitive markets, there are certain types of goods for which private firms cannot be guaranteed to supply them in satisfactory quantities. For example, if natural monopolies were entirely in the hands of the private sector, then it would be impossible to guarantee the supply of water, gas, and electricity to the population.

3. Solve problems caused by external factors. The private sector does not take sufficient action on its own to combat factors such as noise or pollution. It does not fully take into account the harmful effects of its production on other members of society or on future generations.

4. Protect the rights of sellers and buyers. The private sector does not protect the rights of sellers and buyers and does not establish appropriate rules for interaction between them.

5. Distribute income and wealth. Achieving the highest attainable level of social welfare is the task of government. To achieve this goal, it can make decisions on the fair distribution of income and wealth.

6. Contribute to the achievement of macroeconomic goals. Government intervention in a market economy is also required in cases where the functioning of the market can lead to high level unemployment, unacceptable inflation, and disruption of the country's balance of payments.

Thus, the main task of government is to achieve the maximum level of social welfare. To solve this problem, the government must influence the allocation of resources in different sectors of the economy and the distribution of resources among people. The most important view resources in a market economy are money. Therefore, a key role among the components of the public sector is played by public finance, primarily the state budget, its income and expenses.

1.2 Social and economic functions of the public sector in the modern economy

The target orientation of the public sector is to ensure the process of reproduction of public goods. The implementation of the functions of production, distribution and exchange, public goods is possible only by achieving the interconnectedness and consistency of all elements included in this sector. The public sector is a single space for the existence of various processes and phenomena for the reproduction of public goods, where numerous elements of the material and intangible life of society are combined. The public sector unites objects and phenomena related to various areas of human activity:

The well-being of individuals and society, which shapes the needs for public goods;

Material and institutional objects for the creation of public goods, including production, territorial, etc.; - relationships and mechanisms in the process of reproduction of public goods, including the operation of the system of state, public and other regulation. IN modern society The production of public goods is not the responsibility of the state alone. State availability legislative framework , certain instruments of coercion undoubtedly give him exceptional power in solving these problems. The exclusive prerogative of the state: to collect taxes, establish and change their types and amounts, allows the state to finance the production of the main volume of public goods. N.A. Voskolovich, E.N. Zhiltsov, S.D. Enikeeva ECONOMY, ORGANIZATION AND MANAGEMENT OF THE PUBLIC SECTOR Moscow - 2008. - p.62 At the same time, in Russia, as in many countries, non-governmental non-profit organizations operate , which can also effectively solve the problem of providing certain types of public goods. Historically, organizations and institutions whose socio-cultural and humanitarian activities served the interests of society as a whole became part of the public sector. With their help, the most important socio-economic functions of the state were realized - the formation of the spiritual and moral potential of society, ensuring the protection of its health. Second half of the twentieth century. characterized by the transfer of part of the socio-economic functions of the state to provide socially significant public goods (in the field of education, health care, culture and art) to state non-profit organizations N.A. Voskolovich, E.N. Zhiltsov, S.D. Enikeeva ECONOMY, ORGANIZATION AND PUBLIC SECTOR MANAGEMENT Moscow - 2008.-- p.63. The main functions of non-governmental non-profit organizations are to satisfy socio-economic, cultural, educational and other socially significant needs. Nonprofit organizations implement public policy and are funded by government institutional units. Institutional units of the general government sector are subjects of the market economy. At the same time, they, primarily at the federal level, determine strategy and policy in the field of socio-economic development of society. Their role in the economy is dual. On the one hand, they are a tool for organizing political and economic activity in the country, allowing members of society to coordinate their actions to achieve common goals. On the other hand, the performance by the public management sector of its functions of coordinating the activities of citizens is based on the ownership of its institutional units to the property necessary for this (fixed assets, etc.) and the mobilization and expenditure of funds. The scope of activity of the public sector of management also includes economic transactions with foreign partners and regulation of foreign economic relations of the entire national economy, aimed at developing and implementing a national policy that makes it possible to use the benefits of globalization and minimize its negative aspects.

The traditional sphere of activity of non-financial state enterprises is the branches of natural monopolies. Such productions may include railway transport, electric power companies, enterprises for the extraction and transportation of oil and gas through pipelines, post offices, telephone companies, water and heat supply enterprises, sewerage, highways, etc. Shamkhalov F.I. State and economy: Fundamentals of interaction, 2006.--p. 58-60.

In carrying out its economic activities, the public sector performs the following essential functions:

1) allocative (distribution of resources);

2) distributive (income distribution);

3) stabilization;

Allocative (Resource Allocation Function) The main goal of the government in carrying out this function should be to achieve high efficiency in the use of resources. The main instrument for achieving this goal is the state budget. It determines the amount of taxes that must be paid private sector, volume of government procurement, amount of social payments. The government bears the costs of defense, education, medical care, law enforcement, road construction and other public needs. It may have production organizations under its control (factories, power plants, transport systems, etc.) and may purchase goods and services produced by private firms at the expense of the state budget. The government pays subsidies to the private sector and various government benefits to individuals from the state budget. In addition to setting the budget, the government sets rules for doing business, which also influence the allocation of resources (environmental laws, antitrust laws, etc.).

Distributive (Income distribution function) The state performs this function in the interests of justice, i.e., fair distribution of income and wealth in society. To achieve this goal, the government first seeks to distribute the tax burden fairly. It establishes a system in which taxes rise as income increases. In addition, the government pursues a targeted policy in matters of distribution through budget items. In the expenditure side of the budget, priority is given to expenses in which people with low incomes are more interested (health care, education, etc.). It should be noted that many problems arise when solving the problem of fair distribution. On the one hand, it is difficult to control people's real incomes; on the other hand, many believe that income is not the fairest basis for taxation.

Stabilization function. As is known, the implementation of the economic policy of the state’s stabilization function leads to changes in the values of the main macroeconomic parameters: GDP, inflation, unemployment rate, state budget deficit, total wage fund, etc. This is because through monetary methods it is possible to change the supply of money in an economic system. By influencing the money supply, the central financial authority implements a policy of stabilizing the economy by achieving commodity-money balance. As a result, the prerequisites should be created for increasing employment and income of the population, expanding the tax base and increasing funds allocated for social needs and development of the social sphere. In turn, improving the social status of the absolute majority of citizens creates favorable conditions for economic development by increasing the volume of effective demand of the population for goods and services. When performing each function, the state changes the direction and scale of financial flows generated and regulated by the market.

Consequently, the economic functions of the public sector include:

1. Formation and support legal basis functioning of the market. The government takes upon itself the task of providing a legislative framework that facilitates the effective functioning of a market economy and includes laws ensuring the status of private property, regulating production relations, distribution and exchange, etc., in other words, establishing the “rules of the game” in a market economy.
2. Formation, development and investment of market infrastructure. 3. Ensuring the production of public goods.

4. Support for domestic manufacturers and the formation of a competitive environment.

5. Environmental protection, since the market mechanism itself does not provide incentives for financing environmental protection activities.

6. Stimulating economic growth and ensuring the stability of the national economy. public sector income government

7. Providing citizens of the country with a certain level of social guarantees. This same function often includes income redistribution, i.e., reducing inequality in income generation within the country. Vasilenok V.L., Makarchenko M.A. Economy. Microeconomics and macroeconomics: Textbook. allowance. - SPb.: SPbGUNIPT, 2003. - 217. - p. 23-25

The social functions of the public sector include: 1. Regulation of income, prices and employment. By carrying out this activity, the state reduces social differentiation. 2. Ensuring the development of social infrastructure, education, healthcare, culture. 3. Organization of a system of social guarantees and social protection of the population. 4. Environmental protection.

Thus, the main activities of the public (state) sector of the economy are ensuring political and regulatory activities, providing public goods, redistributing income and wealth and providing social assistance to the population, as well as the production and sale of goods, services and financial and credit activities on a commercial basis, carried out by enterprises owned or controlled by the government.

Chapter 2. Analysis of the current state of the public sectorin the Russian Federation

2.1 Social functions of the public sector in the Russian Federation

The main social function of the public sector is the redistribution of the total social product for the purpose of social protection of vulnerable layers and groups of the population. In this case, state intervention plays a contradictory reproductive role. On the one hand, the redistribution of part of the income to the benefit of the poor increases the amount of total welfare in the current period and contributes to the growth of effective demand, i.e. stimulates economic growth in the future. On the other hand, it is a factor in reducing the efficiency of the economy, as it weakens the incentives for entrepreneurial activity and private initiative. Galperin V.M., Ignatiev S.M., Morgunov V.I. Economics of the public sector. - M.: Economic School, 2004. - p.43 Income plays a very important role important role in the life of every person, because they are a direct source of satisfying his unlimited needs. Salary is their main source. But often the value is not sufficient to meet even the most necessary conditions for human existence. Therefore, there is a need for the state to regulate wages, and for the population to look for other sources of income. Often the incomes of the majority of the population are very low compared to the incomes of a small part of the population. In this regard, social tension arises in society, which the state has to take care of overcoming.

Personal income is understood as the amount of money and material goods received or produced by households over a certain period of time. Their role in human life is determined by the fact that the level and structure of population consumption directly depends on the amount of income. If we talk about society as a whole, then its income should be considered as gross domestic product or as the sum of the incomes of all economic entities, which also represents the cost and the part of the product measured by it produced over a certain period of time. Abakumova N., Podavalova R.. Policy of income and wages.-M.: 1999. - p.96

The distribution of consumer goods and consumer goods, as a rule, is preceded by the distribution of income. The population initially receives its share of the gross product, which goes to satisfy personal needs, in the form of income. The income received is further used to purchase necessary goods and services. Thus, the level of income is of great importance, since it determines the level of consumption. The income of the population not only determines its financial situation, but also largely reflects the state and efficiency of the economy and economic relations in society. Income is characterized by its level, composition and structure, dynamics, relationship with expenses, differentiation among different layers and groups of the population.

Wages on the territory of the Russian Federation are not uniform. Interregional differentiation in wages exists in all countries. Remuneration cannot be the same for all regions of the country, since regional labor markets place demand for workers of different qualifications and at the same time value the work of workers of similar professional and qualification groups differently. Moreover, in a competitive economy, compensating differences in wages are generated in the labor market. According to the theory of compensating differences, workers should be compensated in terms of wages for employment in regions with relatively worse living conditions and a higher cost of living. Litvintseva, G.P. Cash income of the population of Russian regions, taking into account the purchasing power of the ruble and hidden income [Text] / G.P. Litvintseva // Questions of statistics. - 2008. - No. 6. - P.15 - 29. Residents of the Southern, Volga and Siberian regions earn the least federal districts. If for 2012, according to Rosstat, the nominal accrued wages in Russia amounted to 22,871 rubles, then, for example, in Southern district 17544 rubles. The highest average salary level in Russia was recorded in the Yamalo-Nenets Autonomous Okrug. The average salary of residents of the northern region is 60,161 rubles. The Chukotka Autonomous Okrug ranks second in this indicator. The average income of residents of Chukotka is 56,090 rubles5.

One of the indicators of the extremely low efficiency of social policy in the Russian Federation is the high differentiation of incomes of the population. The income gap in our country is becoming dangerous from the point of view of social stability. The seven- to eight-fold gap in the income level of the extreme decile groups of the population is considered critical in this regard. In Russia, in 2011 it reached 16.2 times. The Gini coefficient in 2010 was 0.421 (in 1992 it was 0.289), which indicates a sharp increase in income differentiation during the period of market transformations.

Table No. 1 -DISTRIBUTION OF TOTAL CASH INCOME OF THE POPULATION http://www.gks.ru/free_doc/new_site/population/urov/urov_32g.htm

IN modern conditions It is impossible to completely exclude state intervention in socio-economic processes, since market distribution is inherently unfair. Therefore, there is a need for government intervention. The possibility of state regulation arises with the achievement of a certain level of economic development, concentration of production and capital. The need is to increase the number of difficulties that government income regulation is designed to combat. Currently, state regulation of income is an integral part of reproduction. It stimulates economic growth, encourages progressive changes in sectoral and regional structures, supports exports, regulates employment, taxation, and prices. The specific goals, forms, and scale of state regulation of income are determined by the nature and severity of socio-economic problems.

The main task of state regulation of income is the redistribution of income through the state budget through differentiated taxation of different groups of income recipients. At the same time, a significant share of national income moves from segments of the population with high incomes to those with low incomes.11 Increasing incomes among the poor creates conditions for the normal reproduction of the labor force, helps ease social tension, and regulates employment. State activity in this area is measured by the volume of social expenditures from the federal and local budgets. Consequently, the state's ability to redistribute income is limited by budget revenues.

Since public sector organizations are mostly state-owned enterprises and institutions, they are financed by tax revenues collected from firms and households. Non-governmental non-profit organizations carry out their activities through donations, contributions, etc., made by firms and individuals. In return, the public sector provides firms and households with a set of public goods that satisfy their collective needs (land improvement, external and internal security, legislation, etc.). In addition, the state, as part of its social policy, provides transfer payments to households (pensions, unemployment benefits, disability benefits, etc.), and subsidies to firms for the development of production (in the form of tax benefits, interest-free loans, direct subsidies, etc.). Social transfers are a system of cash or in-kind payments to the population that are not related to their participation in economic activity currently or in the past. The purpose of social transfers is to humanize relations in society, prevent the growth of crime, and also maintain domestic demand. Litvinov, V.A. Social stratification and standard of living in modern Russia[Text] /V.A. Litvinov // Russia in Modern world. - 2008. - No. 2. - P.172 - 180.

The state, organizing the redistribution of income through the budget, solves the problem of increasing the incomes of the poor, creates conditions for the normal reproduction of the labor force, helps to ease social tension, etc. The degree of influence of the state on the process of income redistribution can be measured by the volume and dynamics of expenditures for social purposes at the expense of the central and local budgets, as well as the amount of income taxation.

Thus, social activity, the state is obliged to pursue an active state social policy aimed at ensuring its citizens the most important social rights, which, of course, include the right to work and decent pay, to housing, education, health care, social security, etc. , i.e. to a certain level of well-being. Increasing inequality and poverty hinders the development of the Russian domestic market and the formation of the middle class, i.e. solvent majority of the population. Healthy and sustainable economic growth cannot rely solely on the rich and ultra-rich in the face of widespread poverty. It is poverty that determines the limited access of a significant part of our country’s population to development resources: high-paying jobs, quality education and healthcare services, opportunities for the successful socialization of children and youth.

2.2 Economic functions of the public sector in the Russian Federation

In countries with developed market economies, thanks to which they achieved their leadership, there are so-called “market failures”, meaning economic inefficiency in certain areas, and the experience of the last century shows that the market cannot solve these problems automatically and independently; examples of such “failures” are.

* the need to produce public goods that the market is not able to provide. This function in the economy is assumed by the state, including the distribution of resources for their production. A typical example of a public good is national defense, the benefits of which accrue to every member of society regardless of the amount of taxes they pay to the state budget. The properties of public goods are such that their production is commercially inefficient, and the market cannot independently provide it;

* incompleteness of individual markets (demand or supply is insufficient for individual goods or services). In such cases, the state can act as one of the producers, taking upon itself the production of these goods and services, for example, in many countries of the world the state itself “produces” educational and medical services (at least some part);

* the market itself cannot limit the process of the emergence of monopolies, because strives to concentrate production, which means reduced competition with all the negative consequences (in particular, increased prices for consumers). The task of antimonopoly regulation is assigned to government agencies;

* the presence of external effects of private entrepreneurial activity. An example of external effects is environmental pollution, which entails additional problems for society, expressed in the deterioration of living conditions and life expectancy, and an increase in morbidity among the population in the surrounding area. However, from the point of view of the enterprise, the construction of treatment facilities means unproductive costs, and the implementation of effective environmental measures is often possible only with the application of regulatory measures from the state;

* the state adopts legislation and monitors its implementation on a wide range of issues of economic and social life, including compliance with property rights and contractual obligations

* inflation and unemployment are also subject to government regulation.

The most important type of resource in a market economy is money. Therefore, a key role among the components of the public sector is played by public finance, primarily the state budget, its income and expenses.

The Russian financial system includes the finances of the public sector, non-financial corporations, financial institutions, non-profit organizations serving households, and households. Public sector finance should include the finances of the general government sector and the finances of those non-financial and financial corporations owned by the government. General government finance plays a leading role. The need for finance to ensure public administration of the country is generated by the very fact of the existence of the state and the need for monetary support for the performance of its functions. L. I. Yakobson Economics of the public sector. Fundamentals of the theory of public finance. - M.: “Aspect Press”, 1996. - p. 43

The content of public expenditures is directly related to the functions of federal, regional and municipal authorities, and expenses act as costs of the public management sector associated with the implementation of its functions. These include expenditures by the general government sector and government-controlled and government-funded non-profit organizations serving households. The monetary funds operated by government bodies are formed both from their own funds and from credit resources. The country's general government sector's own funds are formed mainly from taxes and contributions paid to budgets and extra-budgetary funds by enterprises and the population, as well as from income from property and the sale of market services.

Thus, the finances of the Russian government sector are a single set of financial transactions with the help of which government bodies accumulate funds and make cash expenses. The main areas of expenses arising from the functions of the general government sector in state budgets and other state financial plans of the Russian Federation provide for expenses for the following tasks:

Providing citizens with public goods for collective use;

Social insurance, including pensions;

Promotion of economic development.

The budget is one of the important tools for managing the economic situation in the country, and the budget system in a market economy should be focused on increasing economic growth, without which the budget revenue base cannot be sustainable and stable. In a market economy, the budget system is designed to perform three important tasks.

· The first is fiscal in nature. Budget revenues must provide the necessary resources for government activities, for expenditures on military, economic and social programs, i.e., for the production of “public goods,” as well as for the maintenance of the state apparatus itself.

· The second task is to ensure the possibility of regulating the economy, when taxes, government spending, and sometimes budget deficits are used as levers for achieving certain economic policy goals - stabilizing the economic situation, limiting inflation, carrying out anti-crisis measures, stimulating economic growth, structural changes and etc.

· The third task is designed to ensure the fulfillment of the state’s social function of some equalization of income. After all, the budget system is an effective instrument for the redistribution of income thanks to special measures in the field of tax policy, on the one hand, and a system of transfer payments to pensioners, disabled people, citizens with low incomes, the unemployed, families with children, etc., on the other.

The ratio of the consolidated budget and gross domestic product (GDP) shows the degree of redistribution through the budget of the social product produced in the country (corresponding income). http://budget4me.ru

Gross Domestic Product (GDP) is the market value of all final goods and services (that is, intended for direct consumption) produced during the year in all sectors of the economy on the territory of the state for consumption, export and accumulation. The ratio of budget expenditures to GDP characterizes the boundaries of state responsibility and the ability of centralized financial resources to satisfy the needs for public goods and services, public goods. http://rus-forex.com/dictionary/gdp.html

The share of government spending in GDP is determined not only by the needs for public goods and services, investments in the economy, but also by the real dynamics of GDP. In the context of an economic crisis and a fall in production in the main sectors of the economy, the volume of legally enshrined social guarantees inevitably requires an increase in the share of government spending in a declining GDP. At the same time, during these same periods of crisis, there is an urgent need for a low level of taxation to stimulate entrepreneurial and investment activity, promoting production growth (i.e., GDP), which does not allow increasing budget revenues through additional tax revenues, and, consequently, state expenditures . Let's consider the structure of federal budget expenditures for 2009-2011:

Table No. 2

Based on these calculations, we can draw the following conclusion that in 2011, compared to 2009 and 2010, the share of government spending increased significantly, although mainly the developed countries have the same high percentage of government spending as a share of GDP. For example, in Germany in 2011. government spending amounted to 45.6% of GDP, in France - 56%, in the USA - 40% of GDP.

Next, we will consider the division of budget expenditures, characterizing the sectoral proportions of distribution budget funds, allows for the redistribution of state resources for the purpose of structural transformation of social production.

· Expenses for public administration and local self-government include the costs of maintaining the relevant bodies of state power and local self-government - representative (legislative) and executive. These expenses, being the material and financial basis for the activities of government bodies, allow them to manage the economy.

· Expenditures on law enforcement activities and ensuring state security cover the funds necessary to maintain the prosecutor's office, internal affairs and internal troops, the criminal procedure system, customs authorities, tax police, border service and state security.

· In the national economy expenditures, the main place is occupied by contributions to the industry Agriculture, housing and communal services, consumer services and some other industries.

· Significant budget funds are annually allocated to finance social and cultural events. These are costs for education, healthcare and physical education, social security, social assistance, culture and art, and the media. They allow the state to develop a system of public education, finance culture, satisfy the minimum needs of the population for medical care, provide social protection for citizens, and increase the level of their social security. The largest amounts are allocated to finance education. The priority remains free education and healthcare. Free general and competitive vocational education is guaranteed.

· Considerable attention is paid to social protection of the least affluent segments of the population. Measures are being envisaged to increase the minimum wage, increase unemployment benefits, compensation for meals for preschool children, schoolchildren, students, and to streamline the wages of employees of budgetary institutions. It should be borne in mind that a large part of social expenditures goes through extra-budgetary social funds (payment of pensions). Budget expenditures on socio-cultural events are not only social, but also economic. Being the financial basis for the implementation of social rights - to education, medical care, social protection, etc., these expenses simultaneously influence social production, helping to improve the qualitative composition of labor resources, create conditions for increasing labor productivity based on the use of scientific achievements, and accelerating scientific research. -technical progress.

· Part of the budget funds is allocated to defense. Defense expenditures are caused by the need to preserve and develop the defense industry complex, maintain the combat readiness of the army, continue the development of the latest weapons, as well as strengthening the social protection of military personnel and members of their families, increasing salaries for officers, rising prices for military products and other factors. home of other reasons.

· Expenses for international activities include expenses for non-trade operations (maintenance of Russian institutions and representative offices abroad, payment of membership fees to international organizations, etc.). Financing costs in the field of international activities covers international cooperation, implementation of international treaties, cultural, scientific and information relations.

In accordance with Article 21 of the Budget Code of the Russian Federation, the classification of budget expenditures consists of 11 sections. They are the same sections and subsections of the classification of budget expenditures for the budgets of the budget system of the Russian Federation; we will consider them in more detail in the table (No. 3).

Table No. 3 -Federal budget expenditures for 2009-2011

Federal budget expenditures
	Amount, billion rubles	Specific gravity, %	Amount, billion rubles	Specific gravity, %	Amount, billion rubles	Specific gravity, %
State administration and local government
National Defense
National Security and Law Enforcement Defense
National economy

Environmental protection
Education
Healthcare and sports
Culture
Social policy
Interbudgetary transfers

By volume of expenses:

· first place is occupied by budgetary allocations allocated to fulfill expenditure obligations on interbudgetary transfers: 33.0% of the total amount of expenditures - in 2009, 36.0% - in 2010 and 37.2% - in 2011;

· in second place are budgetary allocations allocated to fulfill expenditure obligations in the field of national defense, respectively 14.2% in 2009, 13.8% in 2010 - 2011,

· in third place are budgetary allocations allocated to fulfill expenditure obligations in the field of national security and law enforcement - 12.0% in 2009, 11.9% in 2010, 11.8% in 2011, respectively.

· For the fulfillment of expenditure obligations in the field of the national economy, budgetary allocations in 2009 are 11.5% of the total amount of expenditures, in 2010 - 11.7%, in 2011 - 12.9%.

Consequently, based on the data indicated in the table, it can be seen that the structure of federal budget expenditures for 2009 - 2011 remains quite stable.

Conclusion

While writing the course work, the essence of the public sector, social and economic functions in the modern economy were studied. From the first chapter we can conclude that the public sector is a rather complex entity and largely overlaps with the state. It includes budgetary institutions, state extra-budgetary funds and state-owned enterprises, and other objects of state property. In a self-regulating market economy, various market failures occur at the micro- and macroeconomic level, leading to ineffective distribution and use of limited resources, social injustice and instability. The presence of market failures is the basis for intervention in market processes, in particular through the formation of a public sector in areas of market failures. Microeconomic market failures include the presence of monopolies, externalities, consumers of public goods, etc. Macroeconomic failures are associated with inflation, unemployment, poverty, etc. In areas of market failure, there is a need for the state to perform a number of functions: distribution of resources for the production of public goods; redistribution of income to ensure social justice and stability; stabilization - to ensure sustainable economic growth; regulatory - to maintain competition. The main function of the public sector is the provision of public goods on a non-market basis and social transfers.

From the second chapter, based on the state of modern Russia, we can conclude that when studying the public sector, we should talk about the need to increase government regulation.

Russia has reached the level of European countries in terms of the share of budget expenditures in GDP. It is also worth noting that the largest share in the classification of budget expenditures is occupied by interbudgetary transfers. In general, the structure of federal budget expenditures for 2009 - 2011 remains quite stable. According to the data, wages on the territory of the Russian Federation are not uniform. Interregional differentiation in wages exists in almost all countries. Remuneration cannot be the same for all regions of the country; this is due to the fact that regional labor markets place demand for workers of different qualifications and at the same time value the work of workers of similar professional qualification groups differently. It should also be noted that workers receive compensation for employment in regions with relatively worse living conditions and a higher cost of living.

Based on the results of the entire course work, the following conclusions emerge: any market economic system experiences shortcomings that inevitably lead to social diseases: severe environmental pollution, unemployment, strong stratification of society into rich and poor, etc. The state and the public sector should act as a regulator of the economic system, using the entire range of measures to influence economic processes in order to “smooth out” the shortcomings of the market.

Bibliography

1. Article “The public sector of the Russian economy: the contours of budget regulation” by the author. Alexander Vissarionov. Doctor of Economic Sciences. International journal “Problems of theory and practice of management” No. 1 2002. Moscow city.

2. Abakumova N., Podavalova R.. Policy of income and wages. - M.: 1999. - p. 96

3. Antonova, N.B. Public Administration: Textbook / N.B. Antonov [and others]; under general editorship N.B. Antonova. - Minsk: Acad. ex. under the President of the Republic Belarus, 2012. - 440 p.

4. Ahinov G.A., Zhiltsov E.N. Economics of the public sector. M.: INFRA-M, 2008. - p. 345

5. Vasilenok V.L., Makarchenko M.A. Economy. Microeconomics and macroeconomics: Textbook. allowance. St. Petersburg: SPbGUNIPT, 2003. 217 p. Page 23

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Features of financing in the public sector. Financing and production of goods and services in the public sector Public sector finance structure and functions

Description of work

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THE CONCEPT AND BOUNDARIES OF FINANCE IN THE PUBLIC (GOVERNMENT) SECTOR

Introduction

Chapter 1. Theoretical aspects of the public sector of the economy

1.1. Concept, structure and mechanism of organizing the public sector

1.2. Public sector functions

1.3. Characteristics of the scale and dynamics of the public sector in countries with mixed economies

Chapter 2. Public sector of Russia

2.1. Composition of the Russian public sector

2.2. Russian public sector finance

2.3. The scale and dynamics of the public sector in Russia

Conclusion

List of used literature

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Introduction

Introduction

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