No 2 (2025)
ARTICLES
Features, capabilities, and limitations of the methods for managing budget expenditures on social assistance to the population
Abstract
Improving the management of public and municipal finances in the field of social protection system functioning is a relevant task given the ongoing issues of poverty and economic inequality both in Russia and worldwide. One of the main components of the modern social protection system is social assistance aimed at the low-income population. The article discusses the management of budget expenditures on social assistance to the population, conducted within the framework of three main types of instruments: categorical, targeted, and conditional social transfers. Particular attention is given to the specifics of applying the main methods of managing budget expenditures to these types of social assistance instruments in order to theoretically justify the choice of method for managing budget expenditures on social assistance. Based on a literature review, a research gap is identified in the relationship between the principles of budget expenditure management theory and existing classifications of social assistance instruments. The author synthesizes these principles and reveals the features, possibilities, and limitations of applying budget expenditure management methods (cost-based, program-targeted, and project-based) to various types of social assistance instruments. This allows for a scientific justification of the choice of expenditure management method depending on the targeted content of the specified type of social assistance instrument. Thus, the application of the project management method to social assistance instruments containing reciprocal obligations of the recipient is justified. It is concluded that the program-targeted management method is a priority for targeted budget expenditures, whereas for categorical social assistance, the aforementioned methods are excessive. The obtained theoretical results allowed us to propose the directions of modernization of programme and project tools for managing budget expenditures on social assistance in the Russian Federation. The formulated provisions can serve as the basis for further empirical research necessary for the development of a scientific and practical discussion on the problems of managing budget expenditures to achieve the national development goals of the Russian Federation.
Theoretical and Applied Economics. 2025;(2):1-12
1-12
Coordination of economic interests in the process of movement of fixed capital of industrial enterprises as a goal of state economic policy
Abstract
The subject of this article is the socio-economic relationships of the participants in the process of movement of fixed capital of industrial enterprises. The author particularly focuses on the role of government interests in the process of movement of fixed capital of industrial enterprises. The object of the study is the fixed capital of industrial enterprises. The aim of this research is to identify the key principles for reconciling the economic interests of the participants in the movement of fixed capital of industrial enterprises as an element of the state economic policy for its development. Within this goal, the following tasks are proposed: - to clarify the definitions of the concepts "fixed capital of industrial enterprises" and "movement of fixed capital of industrial enterprises"; - to identify the interest subjects participating in the movement of fixed capital of industrial enterprises; - to analyze the interests of the participants in the process of movement of fixed capital of industrial enterprises. The methodology of the research is based on the generalization of information on the considered topic from domestic sources and statistical indicators. A comparative-descriptive method was used to analyze the categories "fixed capital" and "movement of fixed capital." The formalization method allowed for the determination of the role of the state in reconciling the interests of the participants in the process of movement of fixed capital of industrial enterprises. Graphical representation of data illustrated the ways of reconciling the interests of the subjects. The scientific novelty lies in the fact that the reconciliation of interests within the movement of fixed capital of industrial enterprises occurs at both vertical and horizontal levels, complicating the relationships between the subjects. A balance of interests can be achieved through a contract initiated by the state, as the strongest interaction subject. In the process of reconciling the interests of the subjects of the movement of fixed capital of industrial enterprises, vertical ties are formed between the state, industrial enterprises, educational, and scientific organizations, and horizontal ties between enterprises of different production sectors. In the absence of these connections, achieving sustainable economic growth and the accumulation of national wealth becomes impossible. To form a self-sufficient national economy, conditions must be created in which the fixed capital of industrial enterprises is renewed at a faster rate than the rate of depreciation and obsolescence.
Theoretical and Applied Economics. 2025;(2):13-30
13-30
Proactive VAT risk management system in the context of digitalization: problems, solutions and prospects.
Abstract
The relevance of the study is due to the importance of developing and implementing pro-active tax administration systems capable of predicting and reducing tax risks for the state based on real data. The subject of the study is the system of VAT tax administration in the Russian Federation in the conditions of digitalisation and the risks associated with its functioning. The aim of the work is to substantiate the ways of improving VAT tax administration in the conditions of digitalisation through the formation of a proactive system of tax risk management of the state, based on the application of a scenario approach to the forecasting of tax revenues, considering the influence of relevant factors. The paper substantiates the proposals to create a more effective mechanism of VAT tax risk management based on forecasting models and scenarios. Special economic and mathematical methods were used for their construction: regression analysis, construction of autoregressive model with time lags and error correction models. To implement the proactive VAT risk management system, a software module – ASK VAT-2 – is proposed, integrating both strategic and operational decision-making. Its use will allow tax authorities to improve the automation of administration processes, reduce the cost of audits and focus on companies with a high level of tax risks. The distinctive feature of the proposed approach is that the system developed on its basis can predict VAT tax risks and taking appropriate preventive measures. The introduction of this system will contribute to the improvement of tax risk management of the state, increase the efficiency of the tax authorities and ensure more stable tax revenues to the budget. The direction of further research is to build models of differentiated groups of similar enterprises and individual large taxpayers using big data and artificial intelligence.
Theoretical and Applied Economics. 2025;(2):31-51
31-51
Vectors of management of revenues and expenditures of regional budgets in 2025
Abstract
The subject of the study is the expenditures and revenues of regional budgets in the Russian Federation. The authors conducted a study of issues related to the management of expenditures and revenues of regional budgets at the beginning of 2025. At the same time, within the framework of the disclosure of the stated topic, an emphasis is placed on regional disproportions in their growth rates. Particular attention is focused on issues related to potential areas for increasing the transparency of regional budget management in modern socio-economic conditions, which are distinguished by both positive and negative impact on the dynamics of changes in budget indicators of the budget system of the Russian Federation. This additionally actualizes the significance and relevance of the study of issues of this topic, including taking into account the emerging modern trends and current legislation, as well as the national development goals of the Russian Federation for the period up to 2030. The article is based on the use of a set of methods: data analysis and synthesis, induction and deduction. In order to ensure the clarity of the results obtained, graphical tools were used. The authors base their study on official data from the unified portal of the budget system of the Russian Federation for January-May 2025. Scientific novelty is associated with insufficient study in the domestic and foreign scientific literature of issues related to the management of revenues and expenditures of regional budgets in 2025. In the course of the study, the authors proposed to more actively use both long-established tools (for example, a review of budget expenditures and participatory budgeting) and new ones (associated, first of all, with the penetration of artificial intelligence into everyday life and the automation of processes). The implementation of the authors' proposals seems extremely important in the context of ensuring the achievement of the national development goals of the Russian Federation for the period up to 2030. The results obtained will be useful for practical use in the activities of the Federal Assembly of the Russian Federation, the Government of Russia, the Ministry of Finance of Russia and the Ministry of Economic Development of Russia, as well as regional government bodies of the Russian Federation in order to substantiate potential areas of modernization of the budget policy pursued in the region.
Theoretical and Applied Economics. 2025;(2):52-70
52-70
On the issue of consumer demand factors
Abstract
In economic theory, consumer demand factors were of interest for research and discussion throughout the historical horizon, given the significance of the socio-economic phenomenon. The subject of research presented in this article is the approaches to the study of consumer demand and factors influencing its dynamics that have developed in economic science. The subject of the study is the determinants of household consumption. The project aims to describe and analyse consumer demand drivers in the Russian economy, and suggest their systemic classification. The methodological basis for the work was research in economics, management, public administration, sociology and psychology. The work used general scientific methods: analysis, synthesis, comparison and comparison, scientific abstraction, deduction. With the help of these methods, a structured literary study was conducted, based on a systematic review of domestic and foreign scientific papers for a comprehensive assessment of the paradigm and evolution of scientific approaches to consumer demand factors. The results show that household consumption currently depends on three groups of factors: income factors, price and non-price factors. However, in certain periods of time, the significance of some of them may increase or decrease. The study especially focuses on changes in consumer behaviour, consumer choice and expectations, and consumer demand transformation in the digitalisation environment. The novelty of the study lies in the development of the author's classification of factors influencing the structure and dynamics of consumer demand in modern conditions, on the basis of which microeconomic and macroeconomic decisions can be made. The findings contribute to economic theory by systematising and updating scientific approaches to the determinants of household consumption. The practical significance of this research is that a clear classification of factors is a priority for theoretical analysis of problem areas and forecasting consumer demand, as its determinants are decomposed as a system of indicators. That said, areas of future research may be associated with the development of practical measures to mitigate supply and demand gaps in the economy.
Theoretical and Applied Economics. 2025;(2):71-95
71-95
Adam Smith on uncertainty and security (Part 2)
Abstract
The subject of the research in the second part of the article is Adam Smith's conceptual ideas on uncertainty. The study was undertaken to identify and systematize the elements of the concept of uncertainty in the works of Adam Smith, showing their connection with the philosophy of David Hume and modern economic theories. The connection of Smith's ideas with Hume's probability theory is analyzed and an alternative to interpretations that assume the similarity of the positions of Smith and Keynes is proposed. It is shown that Smith developed a classification of uncertainty levels that has points of intersection with modern institutional theory (D. North). It is substantiated that Smith considers heuristics as a tool for reducing uncertainty, which brings his ideas closer to modern behavioral economics (G. Gigerenzer). Interpretations that emphasize the role of interval probability in his works (M.E. Brady) are questioned. The study demonstrates that Smith's concept, based on Hume's philosophy, contains elements that anticipate modern decision-making theories. The research methodology is based on a combination of antiquarian and presentist approaches. The following were used: textual analysis of the works of Smith and Hume, comparative historical method, conceptual reconstruction and critical analysis of interpretations. Interdisciplinary synthesis allowed us to link classical ideas with modern economic theories. The study offers a new interpretation of the concept of uncertainty in the works of Adam Smith, making four significant contributions to the history of economic thought. First, a systematic analysis of the connection of his ideas with Hume's probability theory was carried out, which made it possible to offer an alternative to common interpretations that emphasize the similarity of the views of Smith and Keynes (M.E. Brady). Secondly, an original classification of Smith's levels of uncertainty by ways of reducing it (information, knowledge, institutions, irrational means) was revealed, anticipating modern institutional approaches. Thirdly, the interpretation of Smith's "hard rules" as a prototype of modern heuristics for reducing uncertainty (G. Gigerenzer) in behavioral economics is substantiated. Fourthly, the corpus of analyzed texts is expanded by little-studied works of Smith (Lectures on Jurisprudence, History of Astronomy) in relation to the problem of uncertainty. The obtained results revise the Keynesian interpretations of Smith's ideas on uncertainty proposed in the literature, identify new historical parallels with the theory of bounded rationality, linking classical political economy with modern economic and philosophical discussions.
Theoretical and Applied Economics. 2025;(2):96-121
96-121