The implementation of the fiscal program is the main goal of budget regulation, since the only reliable source of improving the welfare of the country is real economic growth. Public debt and budget deficit in the modern interpretation have an ambiguous interpretation, since some experts believe that their use only leads to increased inflation and does not affect the stimulation of the economy. Other economists, by contrast, say that public debt and budget deficits are one of the most effective ways to revive the economy.
Scientific research aimed at regulating the economy is based on the optimal balance between social justice and economic efficiency. It has already been perfectly proven that an increase in cash receipts to the state budget leads to an increase in budget expenditures. It is clear that it is unrealistic to increase the rate of GDP growth and at the same time reduce inflation, this can lead to stagnation, concrete calculations confirm this thesis.
Public debt and budget deficits were carefully considered by well-known economists of our time, their thoughts are presented in numerous works devoted to the development of the modern state economy. To understand the basic theses of these exercises, you need to know that the state budget is a form of education and spending of funds intended for the functions of local self-government and for financial support of the tasks. The budget deficit arises in the state when income and expenses do not coincide, and such economic relations arise between participants when the use of funds is much higher than the allocated budget.
Do not think that public debt and budget deficits can only negatively affect the development of the economy. During periods of economic downturn, it is government borrowing that is used to mitigate the situation, which prevents a sharp drop in demand and exerts a stabilizing effect on the country's economic policy. In addition, government loans are intended for additional income to the country of finance, which will subsequently become the basis for future economic growth.
According to economists, the external public debt of the USSR allowed the country to realize higher total costs than the accumulated national income. Thus, it is seen how government borrowing positively affects the country's macroeconomic policy. An external debt of a country often turns out to be an overwhelming burden for it, since it is necessary to give back valuable goods in order to pay off the debt, and the lender often poses impossible conditions for the debtor state. At the same time, domestic public debt requires a redistribution of income within the country, often it looks like a transfer of funds from the poor to more affluent people.
Today, there are a number of methodological problems that make it possible to predict Russia's domestic public debt with an accuracy of several percent. At the same time, there is a clear separation between the concepts of “public sector debt” and “state debt of the country”. Based on this, it can be understood that the debt obligations of the general government sector do not include the debts of monetary regulation institutions, which are formed from taking on the debt of third-party debtors.
It follows that questions regarding the procedure for servicing and paying off the country's state debt need strict control and a clear state regulation.