Budgetary Policy and Structural Transformation of the Russian Economy

Recently the Russian economy in addition to global trends has been affected by structural shocks. Fiscal instruments make it possible to respond both to temporary fluctuations in business activity and to support economy restructuring. The existing Russian fiscal reserves made it possible to cope with the first consequences of the sanctions. Estimated effectiveness of the budget impulse in 2022 was twice as high as in 2020. However, the risks of fiscal policy are increasing due to an unforeseen increase in spending, the need to increase the tax burden on the economy and the build-up of public debt. The paper proposes measures to redistribute the tax burden between the export-oriented sector and domestic producers, approaches to the use of digital financial assets in taxation, measures to develop the debt market and other areas of supporting the structural transformation of the Russian economy.