On Kabardino-Balkar Republic’s budget execution for 2021

Abstract

In the regions of the Russian Federation, just like in Russia as a whole, profound social and economic changes are taking place, transformations in all spheres of life of the population, due to the transition to market relations. The process of searching and forming new mechanisms of economic management is going on intensively. At the same time, it is very important not only to have a general understanding of the patterns and trends in the development of the market economy, but also to identify problems, as well as to search and develop an optimal model for the most complete, effective use of them for the stabilisation and development of the economy in the interests of community development. Currently, the economy of the Kabardino-Balkar Republic is one of the least competitive in Russia. The reasons for this are due to the miscalculations of the Soviet period, which were largely exacerbated by the country’s transition to the market. The accumulated problems are systemic in nature and require a comprehensive, targeted solution. The prospects and effectiveness of the socio-economic development of the country are largely determined by the solution of regional problems in the economy. In the Development Strategy of the Kabardino-Balkar Republic, it is proposed to concentrate the efforts of the authorities on the development of those sectors of the economy in which high labor productivity is in demand and which are able to produce products with high added value, provide decent wages to the workers employed in them and an adequate amount of taxes to the republic’s budget system. Therefore, in order to understand the economic transformations in the region, an annual analysis of the execution of the regional budget is necessary. The study subject was the economy of the Kabardino-Balkar Republic. The study object was the republican budget of the Kabardino-Balkar Republic in 2021. The study’s purpose was to analyse Kabardino-Balkar Republic’s budget execution for 2021. Logical, statistical, comparative, and historical methods were used to achieve the study purpose and solve its problems. In the course of the study, the materials of regulatory legal acts and the works of specialists in economics and regionalism of the Russian Federation were used. The effectiveness of public finance management has been highly appreciated at the federal level. According to the assessment of the Ministry of Finance of the Russian Federation conducted in 2021 by the end of 2020, the Kabardino-Balkar Republic entered the group of leading regions characterised by high quality of regional finance management. This efficiency is also confirmed in 2022. In 2021, significant work was performed to adjust the republican budget items to balance the risk zones of losses and more harmonious use of revenues in expenditure items.