Economics of the public sector and economics of the public administration sector.

Composition of the public sector of the economy by organizational and legal forms

1.4 Models of the public sector of the economy:

The concept of the state and municipal sector of the economy, its structure

The dialectics of the development of society is associated with its dual nature. WITH On the one hand, these are the relations of society with a person, on the other hand, the relations of society with the state. The economy of the public sector combines state regulation of social and human institutions. The feedback system of the state, society and people is one of the most complex theoretical and practical problems of increasing the efficiency of the public sector. It is not man who exists for the state, but the state for man.

Economics of the state and municipal sector - fundamental science, which means that its methodology is based on objective universal laws, perceived from the standpoint of dialectical development. Public sector economics is studied at the intersection of economic theory, applied economics, sociology, political science and psychology.

Theoretical basis of the course is a combination of political economy, institutionalism, micro- and macroanalysis, world economy, and public sector economics of foreign countries. This is especially important, since in the context of globalization, the economy of the public sector in Russia and other countries preserves its historical traditions in the relationship between the state, society and people.

Subject of study of economics of the state and municipal sector- the role and functions of the state and municipalities as economic entities of a market economy, interaction with other economic entities within the country and abroad. The economic activity of the state and municipal sector as a whole, at the federal, regional and municipal levels, as well as by industry and type of economic activity, is subject to consideration.

The most important objectives of the course in economics of the state and municipal sector:

Justification of the need for the development of the state and municipal sector in a market economy;

Theoretical justification for the need for government intervention within microeconomics from the standpoint of efficiency and fairness;

Familiarization with the theory of public choice, identifying problems and difficulties of state regulation of the economy;

Familiarization with the instruments and mechanisms of government intervention in the economy.

Main questions, considered by the public sector economy, are:

The influence of the sector on the standard of living and living conditions of the population based on the production and provision of services on a non-market basis, social payments and the use of other instruments;

Formation of income, expenses and property state and municipal sectors;

The influence of economic policies and economic activities of the public sector on other participants in economic activities and their economic behavior;

Production of goods and services by the public sector on a commercial basis.

The market economy of any country is a mixed economic system, consisting of the most important sectors – private and public. The variety of types of mixed economies, which arose as a result of the historical characteristics of the formation of statehood, national mentality and other factors, led to ambiguity in approaches to the interpretation of the concept of “public sector”. Two approaches are most widespread.

The public sector is the totality of economic resources at the disposal of the state and public organizations (including local governments). It represents a part of the economic space in which:

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

2. not private, but public goods are produced, distributed and consumed;

3. the economic balance between demand and supply of public (collective) goods is ensured by the state, local governments and voluntary public organizations with the help of relevant social institutions, primarily through fiscal policy.

In the public sector production of economic goods of a special kind is carried out - public goods. Between the market and public sectors of the economy, between the state and economic agents, exchanges of activities and flows of economic benefits arise. The public sector plays an active role in the circulation of income, resources, goods and services.

Because the public sector is dominated by government activities, it is often referred to as public sector. This identification of the public and state sectors is to a certain extent acceptable.

The purpose of the functioning of the public sector (through mechanisms for implementing the stabilization function, as well as the functions of distributing resources and income) is the formation of a single socio-economic space in a certain territory.

The public sector includes three subsectors:

state,

voluntary public

mixed.

On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, and on the other, there is an adjacent zone within the public sector between the state and voluntary public subsectors.

The public sector of the economy: understanding in a narrow and broad sense. First of all, it must be said that there is no unified approach to defining and isolating the public sector into an independent concept. There are discrepancies here that have target and national specifics. In this regard, at present we can talk about two interpretations of the public sector: in narrow And in a broad sense. Let's look at the first aspect first.

When determining the essence of the public sector, as a rule, they proceed from the fact that it is the most important component of the national economy. At the same time, a distinctive feature of the public sector of the economy is the ability of the state to implement direct And operational management of economic entities included in its composition. The management of business entities in the public sector of the economy is carried out by state authorities through their representatives who participate in the formation of the strategy and tactics of the activities of public sector enterprises.

The methodological basis for defining the public sector is the concept administrative and economic management legal entities (business entities). Administrative and economic management refers to the influence on the part of the manager (head of the legal entity) on the activities of the legal entity, aimed at achieving the set goal as quickly as possible. Based on this concept, the definition of the public sector is formulated:

Narrow interpretation of the “public sector”“- the public sector of the economy should be understood as a set of legal entities (economic entities), the administrative and economic management of which is carried out by the state through the federal and regional authorities of the country. The public sector is supposed to represent the interests of members of society, which is why it is commonly called the public sector.

Broad interpretation of the “public sector”“- the public sector is understood as the totality of economic resources owned by the state, all organizations through which state regulation of the economy is carried out. This includes the economic budget, government organizations in the field of administration, healthcare, education, defense, state-owned production enterprises, state lands, and mineral reserves.

Topic 1. General characteristics of the public sector economy

Question 1. The concept and boundaries of the public sector economy

1.1. Public Sector Economy Concept

Under public sectorA country's economy is understood as a sector that represents and serves the interests of the entire population. The state is the main institution that organizes and coordinates the relationships between citizens and social groups in the country and provides conditions for their joint activities. Government bodies, using their organizational forms (legislative, executive and judicial), manage the affairs of society. The public sector is supposed to represent the interests of members of society, which is why it is commonly called the public sector.

Consideration of issues related to the public sector of the economy is necessary to understand how authorities can effectively achieve the goals of their socio-economic policies and how to find the most rational balance between the public and private sectors of the economy. An important role is played by the analysis of government spending - the direction of use of funds, costs and benefits, optimal taxation, public choice. It is also necessary to explain why the state is engaged in some types of activities and not others, why the list of activities that the state is engaged in is not the same in different countries, and how development trends are shaping up.

Main activities of the public sectoreconomics are the provision of public goods, the redistribution of income and wealth and the provision of social assistance to the population, as well as the production and sale of goods and services on a commercial basis by enterprises owned or controlled by the state. Due to its special role, the state can also influence the economic behavior of business entities through the adoption of legislative and other regulations, taxation, subsidies and other measures to regulate economic activity.

The provision of public goods to the population - goods and services for collective and individual use related to public consumption - is carried out, as a rule, on a free basis.Economic flows associated with the provision of these services by the public sector are not formalized by purchase and sale transactions, do not depend on supply and demand, and are, as they say, non-market in nature. However, there are factors that determine the overall ability of the state to collect taxes and non-tax funds into public financial funds and the resulting ability to provide public goods related to the overall economic potential and state of the country's economy.

The market mechanism is not able to produce public goods, the need for which is not expressed in individual effective demand, although society as a whole and its individual members need them. Such public goods include national defense, public order and security, fundamental science, etc.

Public goods are considered collective if their use by some individuals, such as defense services, does not deprive others of the opportunity to also enjoy these benefits. Individual goods include those that, if consumed by one person, cannot be simultaneously consumed by others, such as medicines in a public hospital. Unlike goods provided by the private sector of the economy, public goods are available to all members of society without payment. Since these goods can be obtained by any member of society without payment, private producers are not interested in producing them. Payment for such benefits is carried out from the financial resources of the state. In a number of areas of activity, people's needs are satisfied on the basis of both public goods andbenefits provided by private entrepreneurs. This applies, in particular, to healthcare, education, construction and operation of roads, and municipal housing. As a rule, in these cases, at the expense of public goods, the needs of less wealthy citizens who are unable to pay for expensive services of private medical and educational institutions, etc. are met. By providing citizens with housing, health care, education, etc., the state provides the so-called essential goods, i.e. benefits that people should receive regardless of their income level.

Another important area of ​​government activity is the redistribution of income and wealth and the provision of support to certain groups of the population in the form of social assistance and social insuranceusing such instruments as the Pension Fund, Social Insurance Fund, Mandatory Medical Insurance Fund, etc.

Production of goods and services,being the third major area of ​​economic activity of the public sector, it is carried out in enterprises owned or controlled by it on commercial principles. Their goods and services are sold at prices determined on a market basis.

All economic activities of the public sector ultimately imply a focus on improving the well-being of citizens. The level of economic development achieved in developed countries has led to the formation of a long-term trend of increasing living standards for the bulk of the population. Measures of social orientation of the economy, direct and indirect regulation of social processes based on state policies of income and expenditure, employment, prices, programs for the development of education, health care, and culture appear and are implemented. These processes are reflected in the concept of the welfare state. From these positions, the public sector of the economy ensures the redistribution of income between various social groups of the population, ensuring the implementation of the principle of social justice. It is assumed that income redistribution increases overall welfare.

An important element of this approach is the principle of solidarity (cooperative) behavior, according to which such behavior brings a greater effect than selfish behavior determined by the interests of each individual. At the same time, since there is a certain contradiction between personal and collective interests, a coercion mechanism implemented by government authorities is necessary.

Options for welfare economics depend on institutional factors, national, historical, cultural and religious traditions. Countries differ in the share of GDP distributed through the state budget and state extra-budgetary funds. 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. Optimizing production efficiency involves the maximum possible use of resources for the purpose of capital accumulation. At the same time, the distribution of income in a market economy is carried out in such a way that persons who do not have property are obviously in a losing position and do not have sufficient resources to ensure a socially acceptable standard of living. The state solves this problem through a system of mechanisms for the redistribution of income of corporations and individuals, aimed at reducing the differentiation of income of various social groups of the population, regulating the level of wages of employees, employment and unemployment levels, financial support for pensioners, disabled people, and people with low incomes.

A by-product of this redistribution is an increase in final consumption at the expense of reduced opportunities for capital accumulation. As a result, economic growth is limited, economic development and income growth in the country are hampered, both overall and per capita. When savings are significantly limited over a long period of time, a country begins to lag behind other countries in terms of overall well-being. This contradiction is in principle unsolvable, and in practice it is always necessary to find a compromise between efficiency and fairness, between today and tomorrow.

The system of formation of government bodies in a democratic society is designed to ensure the predominance in them of representatives of political forces that reflect the interests of the majority of the population.

On the basis of democratic institutions, citizens and their political associations delegate to authorities their rights to coordinate activities aimed at meeting common needs. The task of government bodies is to solve the problems of society as a whole, to overcome the interests of individual groups and segments of the population that do not coincide with the national ones. Solving problems of efficiency and justice largely depends on the political processes in the country. During elections of government bodies and when making decisions, individual social groups unite and lobby for their interests, and the interests of individual groups may run counter to the interests of society. Voting procedures and collusion can be the reason for making decisions that are unfavorable for the country's economy, but beneficial for certain groups.

Institutional units of the public sector are subjects of the market economy. At the same time, government bodies, 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 determine and regulate economic development, on the other hand, they function as subjects of a market economy within the framework of its norms and rules. Therefore, consideration of public sector economics cannot be carried out in isolation from strategy and economic policy in the field of macroeconomics, finance and monetary policy. Problems of macroeconomics, finance, money circulation, and credit are subjects of independent disciplines and are studied in appropriate training courses. This textbook discusses them to the extent necessary for studying the economics of the public sector.

1.2. Economics of the public sector and economics of the general government sector. Their boundaries

Modern economics is mixed. Economic activity in it is carried out by the public sector, as well as private non-financial enterprises, financial, credit and other organizations, often united under the general concept of “private sector”. The economy of the public sector itself is also mixed. The components of the public sector are the general government sector and enterprises owned or controlled by the state, but classified according to the generally accepted division of the economy into economic sectors as non-financial and financial corporations. The basis of the public sector is the public administration sector, in relation to which public finances are also formed. Let's consider its place in the system of economic sectors of the economy.

Currently, when making forecasts of socio-economic development, forming finances, principles for constructing statistics and economic analysis, the boundaries of economic sectors are determined in accordance with the system of national accounts. Accordingly, the interpretation of basic concepts and the definition of the boundaries of the public sector and the public government sector should be made in relation to the system of national accounts, which is accepted throughout the world. Thus, unified approaches are provided to the study of the economy of the public sector and the economy of other sectors, their property, and the flows of goods, services and funds between them. In the System of National Accounts adopted by the United Nations in 1993, the general government sector is identified as one of the economic sectors.

According to this system, economic entities of the country (institutional units) that own and manage assets and enter into economic relations with other economic entities, in accordance with the functions they perform and methods of financing costs, are united into five institutional sectors of the economy. These sectors are: the non-financial corporations sector; financial corporations sector; public administration sector; the household sector and the sector of non-profit organizations serving households (NPOSH).

Each of these sectors includes corresponding institutional units. Underinstitutional unitrefers to an economic entity (economic unit) that owns and manages assets on its own behalf, accepts liabilities, enters into economic transactions with other institutional units, and prepares a full set of accounts, including a balance sheet of assets and liabilities. Both legal entities (enterprises, government bodies, credit organizations, insurance companies, etc.) and households are accepted as economic entities, according tosince they are centers for making economic decisions. Business entities have economic resources in constant circulation.

TO non-financial corporationsThese include institutional units located in the economic territory of the country (corporations and quasi-corporations), the main function of which is the production of goods and non-financial services with the aim of selling them on the market and making a profit. Production costs are reimbursed from sales proceeds. This sector includes, in particular, enterprises in industry, agriculture, construction, transport, communications, trade, etc. Quasi-corporate enterprises are understood as institutional units that are similar to corporations in their functions and method of financing, but do not formally have the status of a corporation (for example, state unitary enterprises).

TO financial corporations sectorinclude institutional units whose main function is financial and credit activity, monetary authorities, banks, insurance companies, non-state pension funds and other institutions engaged in financial intermediation.

TO non-profit organizations serving households(population), include public non-profit organizations that provide non-market services to households. These are public organizations, including political parties, trade unions, religious organizations, various kinds of societies, unions and associations, as well as meeting needs in the field of education, health, culture, etc. They are funded by member dues, donations and property income.

Household sectorbrings together individuals or groups of individuals living together and sharing a common budget. Households manage their resources, have assets and liabilities, and engage in economic activities. These include households of employed persons, households of entrepreneurs, households of the self-employed (persons of liberal professions, owners of small unincorporated farms, family shops, cafes), households of persons living on transfers (pensioners, students). This is a sector that mainly consumes goods and services and produces them for its own consumption and sale.

. The public administration sector includes institutional units entitled to legislative, executive and judicial power in the territory of the country or its parts. The main functions of the general government sector are to provide policy and regulatory activities, provide goods and services on a non-market basis for collective or individual consumption by members of society, and redistribute income and wealth through transfers and subsidies. This predetermines its role as the basis of the public sector, its leading element. Accordingly, general government economics is the central element of public sector economics. The identification of the public administration sector as one of the sectors of the economy is due to the fact that the formation of sectors in the system of national accounts is carried out according to the functions of institutional units in economic activity. Institutional units of other sectors do not engage in activities characteristic of public administration. Accordingly, enterprises that produce and sell products at market prices, including those owned and controlled by the state, do not belong to this sector.

At the same time, since the state not only carries out certain functions in the field of public administration, but also owns or controls the activities of a significant number of enterprises producing goods and services on a commercial basis, there is a need to consider the total volume of its economic activities, taking into account the ownership of institutional units. In this regard, along with the concept of the government sector, the system of national accounts allows the formation of a collective public sector, also called the public sector. The integration of the general government sector and government-owned or controlled enterprises that produce goods and services on a commercial basis, like private sector enterprises, into the public sector is based on the principle of ownership. Since these enterprises are owned by the state or the state owns part of the property in them, which allows it to have a decisive influence on their activities, it can use them to carry out its economic policies. However, by the nature of their economic activities, they are classified as non-financial or financial corporations. Thus,It is necessary to distinguish between the economics of the public sector and the economics of the general government sector.

The implementation of the functions of the public administration sector involves the implementation of social policies aimed at providing assistance to the poor and preventing excessive gaps in the income levels of high- and low-income strata of society. The services of this sector include general government services related to administration, defense, public order and security, services related to economic activities, and social services (health, education, culture, etc.). The state performs these functions not for the purpose of commercial gain or profit, but to provide public goods or, as is often said, non-market services to society.

One of the most important features of government bodies is their function of managing the affairs of the country, both political and socio-economic, based on the interests of the whole society or its main social strata and political forces. They coordinate all aspects of the political and economic life of the country's citizens, relying on an extensive network of government bodies, which constitute an apparatus of control and coercion.

This feature predetermines the dual role of the public administration sector in the country's economy. On the one hand, it determines the institutional framework, development strategy and economic policy of the country for all sectors of the economy, and on the other hand, it is one of the economic sectors and functions within the framework of the rules established by it.

The main criterion for classifying institutional units into the public administration sector is the functions they perform as an institution managing the affairs of society. The general government sector consists mainly 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. Another component of the general government sector is the state social insurance organizations that manage the relevant funds. Social insurance organizations, due to their specificity, can be allocated to a special subsector of the general government sector.

Public administration in federal states requires the presence of several levels of government. Accordingly, when analyzing the economics of the public sector of government, it is necessary to consider the economic activities of government bodies at the federal and regional levels of government and the economic activities of government bodies at the municipal level.

The institutional units of the public administration sector also include budgetary non-profit organizations (NPOs), in relation to which state authorities determine the program of their activities and appoint their leaders. These non-profit organizations implement public policy and are funded by government institutional units. Such organizations include, in particular, research institutions and organizations that establish standards that guide enterprises and the population in the field of education, healthcare, environmental protection, etc.

The assignment of institutional units to the corresponding sectors of the economy is carried out in the SNA according to a functional principle. This approach is consistent with the understanding of the public administration sector as a sector that provides free services and provides the population with social support in cash (and sometimes in kind). Accordingly, enterprises and organizations owned by the state (for example, a government agency, a defense enterprise and a bank) belong, as already mentioned, to different economic sectors depending on the functions they perform.

Public sectorit is a broader concept than the general government sector. It includes the general government sector and government-owned or controlled enterprises and organizations that, like private sector enterprises, produce goods and services on a commercial basis and are part of the non-financial and financial corporations sectors.

The state, as a subject of economic activity, acts not only as an economic sector of public administration, but also as a manager or regulatory authority 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 sector's impact on the economy also occurs through state-owned or controlled enterprises that produce goods and services.

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 (state-owned enterprises). The property of these enterprises (for example, nuclear industry enterprises) belongs to state or municipal authorities, which appoint their managers, play a decisive role in determining their production program, product prices, and enter into contracts for the mandatory supply of products for state needs. In this case, prices may be set that do not fully cover production costs. In return for strict management, state and municipal authorities provide them with financial assistance, benefits, loans, etc.

Another form of state or municipally owned enterprises are joint stock companies (for example, corporatized defense industry enterprises), in which they own more than half of the share capital 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 at the same time they largely control its activities, such an enterprise is essentially state-owned. There is no single unambiguous 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 the public sector. The belonging of enterprises to this sector during the update of the SNA-93 is supposed to be determined based on a set of indicators:

• ownership of a majority of voting shares this indicator is important in the case of the “one share one vote” principle;

control over the management of the board or other governing body the controlling structure may have the right to appoint and dismiss a majority of the members of the governing body or the right of veto when considering appointments;

control over the appointment and dismissal of key employees if control over the governing body is insignificant, then the possibility of appointment to key positions within the personnel may play a decisive role;

control over key management structures subcommittees of the management council (committee), which determine the most important directions of the organization’s policy (financial, production);

ownership of a “golden share” and options;

direct regulation and control, for example, in setting prices for products;

control by the main consumer if all of the corporation’s products or the majority of them are intended for one or more government consumers;

control on the part of the lender the state, as a condition of lending, can determine the conditions for control over the use of the loan and the activities of the corporation as a whole.

The basis for classifying a corporation as a public sector corporation is the presence of one or more characteristics.

The procedure for classifying non-profit organizations into the public sector is also being clarified. Their belonging to the public sector will be determined based on the following indicators:

the right to appoint executive employees of NPOs by government bodies;

other constitutive instruments, for example, defining the tasks and functions of NPOs, approving the budget, the right of veto in decision making, etc.;

the existence of contractual agreements between the state and NPOs some contracts for the supply of goods or services may contain clauses that allow the state to determine certain aspects of the policy or work program of the NPO. However, if at the same time an NPO has the opportunity to independently determine a significant part of its policies, then this means that it belongs not to the state, but to the private sector;

degree of funding from the state just as when considering the previous indicator, it is necessary to take into account the extent to which funding from the state determines the policy and program of the NPO; even if government funding constitutes the predominant part, but is not accompanied by conditions by policy definition, NPOs should be classified as private sector;

the degree to which the state accepts financial risks in the activities of NPOs risk acceptance may be subject to control over the policies of NPOs; however, if such a condition is not established, then, as in previous cases, NPOs should be classified as the private sector.

Enterprises producing goods and services on a commercial basis do not perform public administration functions; their functions do not include providing the population with free public goods or social payments. They produce products for sale in the market at economically significant prices.

Enterprises owned or controlled by the state reflect the activities of the state as a producer of goods and services and operate V mainly based on commercial business principles. Their expenses are covered by income from business activities. At the same time, government authorities can have a significant influence on their economic policies and practical activities. Belonging to the 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. Government authorities can have a decisive influence on the production program, the prices of its sales, act as a customer and use other methods of influence. At the same time, they can provide financial assistance, subsidies, 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. Receiving government support, these enterprises often sell their products and services at prices lower than private firms would. For example, state enterprises, in order to provide social benefits for low-paid segments of the population, can set lower prices for housing and communal services and provide free travel to certain categories of the population on public transport. To make cultural services accessible, low prices may be set or discounts may be provided to certain social groups on tickets. to museums.

State-owned enterprises are considered to be less efficient than private ones. Nevertheless, state-owned enterprises operate successfully in many, including highly developed, countries of the world and are used to implement the most important government programs. The main problem is not who owns the enterprise, but V how its management is organized, how the interest and responsibility of management is ensuredyushchikh. A combination of commercial and administrative levers can be used to achieve this.

In relation to state ownership, opposite trends have been observed for many decades. One of them is the expansion and development of state entrepreneurship through the creation of new and nationalization of old enterprises. The other is the denationalization of enterprises and their transfer to the non-state sector. In many cases, private enterprises, such as the UK steel mills, have become publicly owned through bankruptcy. The state was forced to intervene to prevent their closure.

The number of such enterprises in certain periods may increase or decrease depending on the prevailing economic situation and the predominance of nationalization trends or, conversely, denationalization and privatization.

Along with non-profit organizations of the general government sector that are part of the public sector, non-market services are provided to members of society bypublic non-profit organizations serving households(NKOODH). The primary function of nonprofit organizations serving households is to provide services and goods to households on a non-market basis. The subject of consideration in relation to these organizations is the characteristics of their types, volume and types of activities they carry out, financial support, reproduction processes V this sector of the economy, the relationship of its institutional units with non-resident organizations, as well as their role in the formation and development of civil society.

Share of NPISH in production gross value added of all sectors of the economy in 2005 amounted to 0.4%. The share of NPISHs in gross disposable national income (including contributions and other revenues) was 1.3%, of which 0.9% was allocated to providing services to the population. Unlike government bodies, these organizations do not provide services to the entire population, but to citizens who are members of or associated with each of these organizations. Thus, trade unions provide assistance to their members, religious organizations provide spiritual services to believers of their respective faiths, sports organizations help athletes, etc. Their scope of activity is more limited than that of government, which covers society as a whole. They do not belong to the public administration sector. However, the functions of public non-profit organizations serving households are similar to the functions of government and are also carried out on a non-profit basis. Therefore, their economic activities are similar in this respect to the general government sector.

The subject of studying the economics of the public sector is the role and functions of the state as an economic entity in a market economy, the theoretical foundations and motivations of its economic activity, interaction with other economic entities within the country and abroad. The economic activity of the public sector as a whole, at the federal, regional and municipal levels, as well as in the context of industries and types of economic activity, is subject to consideration. The main issues addressed by public sector economics are:

the influence of the public sector on the level and living conditions of the population based on the production and provision of services on a non-market basis, social payments and the use of other instruments;

formation of revenues, expenses and assets of the public sector;

the impact of economic policies and economic activities of the public sector on other economic participants and their economic behavior;

production of goods and services by the public sector on a commercial basis.

Public Sector Economicshow science deals with issues of both macroeconomics and microeconomics. The subject of macroeconomics is the economy as a whole and the economy of its main sectors. Accordingly, when considering the economy of the general government sector as the basis of the public sector, aggregate indicators are used: gross domestic product, gross value added,sector gross income, sector gross disposable income, savings and accumulation. At the same time, of interest is both their formation by type of activity of the public administration sector, and the role of the public administration sector in the redistribution of income between sectors of the economy. The subject of consideration at the macro level is also public finances and their impact on socio-economic development. Using funds accumulated in public finances, authorities implement measures aimed at stabilizing and developing the economy, redistribute income (and, accordingly, resources) between economic sectors and business entities, produce public goods, provide support to low-income segments of the population by redistributing corporate income and high-income household groups. Government authorities also have a decisive influence on the regulation of monetary circulation in the country, since they are the owners of the central bank, which belongs to the financial institutions sector. At the federal level of government, the concept, strategy, economic policy and proportions of development of the public management sector are determined, as well as the concept, strategy, economic policy and directions of structural changes in the economy as a whole.

At the same time, the general government sector includes smaller institutional units that carry out smaller-scale economic processes. These include ministries, services, agencies, municipal government bodies, schools, hospitals, cultural organizations, etc., in relation to which the subject of study is their behavior in the process of production, distribution and consumption of public goods, as well as their relationships between themselves and business entities in other sectors. It is these institutional units that directly contact the institutional units of the corporate sector, the financial institutions sector to supply goods and services to the public sector, as well as the direct provision of public services to households. The activities of state-owned and state-controlled enterprises are also examined from a micro-level perspective.

Consideration of this activity should be based on economic theory that explains the cause-and-effect relationships of economic activity of the public sector, the basis of its interaction with other sectors. Consideration of the practical activities of the public sector and its theoretical analysis allow us to draw conclusions about strategic goals, economic policies and specific measures and mechanisms that ensure effective sustainable economic development and improvement of the standard of living and living conditions of the population.

1.3. Factors predetermining the need for the public sector of the economy

State participation in the economy is usually associated with the contradictory nature of the market economy itself, which is unable to solve a number of complex problems of socio-economic development, the so-called “market failures”. TOshortcomings of the market economy, necessitating government intervention in the economy, in particular, include:

inability of private entrepreneurship to ensure the normal process of reproduction, which leads to crises, unemployment, inflation, etc. Crises and unemployment are evidence that the market economy lacks elements of regulation that ensure sustainable economic development. Depressions and declines in production lead to the ruin of enterprises that were unable to fit into the changing conditions of economic activity, and an increase in unemployment. State intervention in the economy makes it possible to avoid deep economic crises, mitigate them and ensure more or less uniform economic growth;

the inability of private enterprise to ensure the production of public goods, which is mainly due to the impossibility or difficulty of excluding certain individuals from the number of consumers of public goods. The resulting need to provide these goods free of charge means that many goods and services cannot be provided by the market or may be offered in insufficient quantities. In particular, the market is unable to ensure the country's defense, public order and security. In addition, business is not able to provide individual services to low-income segments of the population in such activities as education, health care, housingbut communal services, etc. Finally, business is indifferent to the development of fundamental science as a field of activity that does not generate income, and even to applied science if the projects being developed do not promise quick commercial benefits;

disadvantages of competition.In a number of industries and industries, there are one, two or three firms that occupy a very large market share, which leads to weakening competition and the possibility of hidden agreements. In other cases, there are barriers to entry due to high economies of scale, leading to natural monopolies. For example, only one water supply system is sufficient to serve a city; the creation of a second one is associated with a significant increase in cost. Disadvantages of competition leading to monopolism and monopoly pricing necessitate government restrictions on these trends, and in the area of ​​natural monopolies, price regulation. In many cases, natural monopoly enterprises are owned by the state;

unevenness and poor quality of informationabout the consumer properties of goods, production technologies, economic conditions and development trends, which can lead to incorrect decisions by market participants. The state is forced to take on information related to the protection of consumer rights, determine the volume and requirements for information provided by banks to borrowers so that the latter receive an idea of ​​the actual interest rate, ensure the activities of the weather service, etc.;

external effects.There are cases where corporate activities cause harm to others, so-called negative externalities. The most significant damage is caused by environmental pollution. Thus, a tannery or chemical enterprise, dumping waste into the river, forces everyone located downstream to clean the water. This forces the state to set standards for the content of harmful substances, use fine systems, and reward those who reduce emissions of harmful substances;

Incomplete markets. Private markets in some cases cannot provide certain goods and services that private markets need. This applies, in particular, to some insurance services, for example, insurance of deposits in banks. Thus, in Russia, due to the danger of losing deposits, the state has undertaken to reimburse depositors for deposits of up to 700 thousand rubles. Deposit insurance programs also exist in the United States and other countries. However, attention should be paid to several circumstances that in themselves determine the inevitability of the participation of the public sector in economic life, regardless of market “failures”.One of them is that public authorities have a dual character.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 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. It is precisely because of these features that 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.

Another circumstance that predetermines the participation of the government sector in economic life isthe 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. last century. Government bodies develop legislative and regulatory rules that provide conditions for the functioning of the market mechanism and the use of the potential opportunities of the market economy. The right of ownership, opportunities for competitive entrepreneurship, restrictions on monopoly activities, and guarantees for the execution of contracts are ensured by law.tov, 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 a liberal or socially oriented market economy may prevail. At the same time, the peculiarities of historical development and the mentality of the population are taken into account. If an oligarchic regime has developed in a country or a regime expressing the interests of a social group, norms are established that are beneficial for this group of oligarchs or social group (clan). Thus, the public sector economy exists not only because there are market imperfections that need to be compensated, but primarily because the public sector is itself an economic entity interacting with other sectors of the economy.

The third circumstance isthe need for income redistribution. This is one of the most significant areas of government activity. Business is indifferent to social inequality associated with excessive differentiation of the population by income level. Even if fairly competitive markets exist, there is no redistribution of resources in which the situation of some is not improved at the expense of others and resources are correctly distributed; income distribution can be extremely uneven. The income of a significant proportion of people is below the subsistence level. As a result, social tension in society is growing and the development of human capital is sharply slowed down, which is fraught with a lag in economic development from other countries. Related to these circumstances is the need to redistribute income in favor of families with children, pensioners, disabled people, etc.

Finally, many economists believe thatIn some cases, people act contrary to their own interests.Thus, many people are reluctant to save for old age or disability, and special measures are needed to encourage or mandate such savings in various forms. Others do not follow traffic rules, and certain penalties are required in order to reduce the number of victims of road accidents. Some people do not consider vaccinations against common infectious diseases necessary. All this leads to the need for paternalistic measures on the part of the state, despite the fact that a number of sociologists and economists believe that people's preferences should be respected. In their view, interest groups can use the state to implement their ideas about what people should consume and how they should act.

The public sector of the economy creates opportunities to solve problems that private enterprise cannot cope with on the basis of self-regulation. With insufficient state participation in economic life, the disadvantages of a purely market mechanism appear in a sharp form. Government intervention allows for positive adjustments to be made. However, it can, in turn, lead to negative results.

Therefore, one of the subjects of studying the public administration sector is the analysis of the reasons for the failure of the state in solving socio-economic problems and the motives that prompt public authorities to make certain decisions. Critics of government intervention in the economy rightly point to such serious flaws, such as insufficient awareness of the authorities when making decisions, underestimation of the response of the private sector to the measures taken, bureaucracy and corruption of the state apparatus, restrictions caused by political processes.

Lack of information when making decisions and underestimation of the private sector's response to government measures.When making decisions, authorities cannot always correctly assess their consequences. Thus, in Russia, during privatization in the 1990s, gt. the danger of the formation of monopolies was not taken into account; during the liberalization of foreign trade, the danger of competition from foreign firms for national producers was not taken into account. It was assumed that structural changes would occur that would contribute to an increase in the technological level of production, but due to lack of competitiveness, many national enterprises were liquidated, and the domestic Russian market was largely occupied by foreign firms. An attempt to increase the level of payment for housing and communal services in a relatively short time did not take into account the real solvency of a significant part of the population, and this process had to be extended and carried out taking into account the growth of real incomes. Monetization of benefits met with resistancepart of the population and led to increased prices for many types of medicines.

Bureaucracy and corruption of the state apparatus.One of the most important problems is the bureaucratic nature of the state apparatus, which reduces the efficiency of its activities. Legislative bodies at the center and at the local level pass laws, and specific detailed rules for their application are often developed by various ministries and departments, and the technical details they define are not always adequate to the purposes of the adopted laws. Undesirable decisions may result from the ambiguity of adopted laws, insufficient qualifications of the state apparatus, and sometimes from its targeted actions.

The corruption of the state apparatus and its merging with the business environment are extremely painful for the economy. As a result, decisions are often aimed at providing various benefits to individual entrepreneurs at the expense of public interests.

Limitations due to political processesare associated with the fact that in democratic states, as a result of elections, representatives of various social strata of the population come to power and carry out policies in accordance with the preferences of their voters. In many cases, they must choose between different preferences or find compromise solutions. As a result of a change of power based on elections, socio-economic policy may change. The consequence is inconsistency in decision making, which affects economic development. The development of lobbying and the commercialization of the legislative election process, which creates conditions for decision-making based on the interests of influential corporate circles, rather than the interests of society as a whole or the majority of the population, have a negative impact on the state apparatus.

The shortcomings of government activity are largely associated with weak public control over government bodies, the negative impact of certain elements of the political process, and insufficient motivation for the effectiveness of government management structures. The measures and mechanisms used must be workable and help improve the economic situation in the country.

There is no unity among economists in assessing the role of the state and public organizations in regulating the economy. Many economists believe that there are various forces at work in the economy with divergent interests, each of which pulls in its own direction. The state, in their opinion, is an instrument that is designed to coordinate various trends, develop and contribute to the implementation of a national vector of development. In particular, the concept of dirigisme is associated with this idea. At the same time, many economists, mainly from Anglo-Saxon countries, focus not on state, but on public control and regulation. They point to the imperfection of the state and propose to develop public control, public regulation and voluntary collective use of the principles of cooperation with the widespread use of moral and ethical standards. From this perspective, in order to achieve the necessary balance of various interests and achieve national goals in the level and living conditions of people, joint efforts of private enterprise, the state and public control are necessary.

If we talk about the role of the state in economic life, we should focus not on the problem of increasing or decreasing it. The main problem is whether the state copes with its functions and tasks facing society and the economy. Government bodies are always an integral part of society and perform their functions in the context of the specific socio-economic, political and international situation. In this case, historical traditions and the mentality of the population play a significant role. The problem is how these functions are performed, how far the state manages to promote socio-economic development.

The development of civil society institutions is aimed at overcoming negative trends, contributing to increasing the social responsibility of government bodies, developing self-government and increasing the autonomy of its grassroots bodies. The growth of elements of civil society, the formation of public structures, non-profit organizations lead to an increase in the level of civic consciousness of the population, its political activity, and the degree of participation in public affairs. As a result, the ability to resist the bureaucratization of the state apparatus and its corruption increases, and the influence of the population on decision-making in the interests of society as a whole increases.

One of the acute, constantly debated problems is the problem of the efficiency of the public sector of the economy.Essentially, this is a problem of the relationship between the efficiency of economic development and justice and equality in consumption. The private sector is considered to be more efficient than the public sector. It develops on the basis of competition, which contributes to the formation of market equilibrium. On this basis, buyers can maximize their choice of goods and services, and producers can maximize profits.An economy is considered efficient if, with the limited resources available, it produces the maximum possible amount of goods and services needed by society under given conditions.Moreover, according to the economic theory of welfare, the optimal option for the distribution of resources and finished products is one in which it is impossible to redistribute them, improving the situation of at least one person without worsening the situation of others. Free competition creates the best conditions for the efficient use of resources, entrepreneurial initiative and production development.

This approach, despite its apparent logic, has several disadvantages. To determine the calculation of optimality, it is necessary to have information about consumer preferences, volumes of resources and production of goods and services, production technologies, costs, profits, substitution rates, etc., which, if possible, is in the conditions of a really functioning market, while information for regulation is needed early. Many economists (in particular, of the Keynesian school) believe that the economy does not strive for equilibrium at all, or strives, but never achieves it. Nevertheless, the theoretical principles of welfare economics are widely used in economic science, as they provide the opportunity to compare the real economy with a certain model to which it is desirable to strive. At the same time, this approach is used to justify limiting government intervention in the economy, since such intervention violates the conditions of free competition and can lead to a slowdown in growth or a decrease in production efficiency. We have already discussed the reasons for the participation of the state in economic life, due to the fact that it is an integral part of the economy and, in addition, allows us to eliminate the shortcomings inherent in a market economy. In connection with the problem of the effectiveness of state participation in economic life, it is appropriate to say that along with such an important criterion of socio-economic development as efficiency, there is the concept of equality and justice. The efficiency criterion does not offer tools to solve this problem. Even in an ideal model, there is room for excessive wealth among some segments of the population while other social groups are poor. The market mechanism is aimed at differentiation of incomes and, as a consequence, aggravation of social tension. In this regard, an important factor in the participation of the state in the economy is the development and implementation of state social security policies aimed at supporting the poor based on income redistribution mechanisms. There is no doubt that the state's withdrawal of part of the profit from production can hamper its development, but an improvement in the well-being of the unemployed, pensioners, disabled people and other needy people who are unable to independently provide the necessary level of living goods is achieved. This allows us to avoid the intensity of social contradictions.

A major problem for government authorities is the inequality in the standard of living of individual regions of the country, associated with differences in levels of economic development. Residents of different regions of the same country have the right to approximately the same standard of living. In federal states, which includes Russia, the structure of state power presupposes the presence of both central government bodies and government bodies of members of the Federation with a division of powers between them. One of the tasks of the authorities is to solve this problem based on the need to more fully ensure the principle of taking into account the characteristics of individual territories and the principle of territorial justice.

The principle of maximum consideration of the interests of the population of specific territories.The scope of responsibility of authorities in the provision of public goods is largely related to the size of the territory, the size and interests of the population for which they are intended. Responsibility and authority in this regard should be as close as possible to the consumers of services. The more services affect the interests of the population of a given territory, requiring consideration of local characteristics, the lower the level of authority and responsibility for their provision should be concentrated. In other words, the powers, responsibilities and expenses for their provision should be assigned to the level of management that has power over the territory where consumers of this type of service live, and which can ensure the high-quality implementation of this service. Services that are used only by residents of the smallest level of the existing administrative-territorial division (for example, a city district) should be provided by the lowest level of local (municipal) self-government. Services used simultaneously by residents of all districts of a city or rural area must be provided by the government of the city or district; services common to all residents of the region belong to the regional level, and services common to all residents of the country belong to the federal level. When determining the level of responsibility, local and national characteristics of individual territories play a significant role. As a rule, for education, healthcare, and the housing sector, it is more effective to concentrate responsibility and authority at the regional and local levels; for foreign policy activities, defense at the federal level. At the same time, the higher the interest of the central level of government in the implementation of any projects in the regions and municipalities, the more grounds there are for allocating funds for them from the federal budget.

Territorial justicemeans equalizing citizens’ access to the basic benefits provided, regardless of place of residence. The implementation of this principle means, in particular, that in the main functional areas of social spending in all regions and municipalities, the implementation of minimum state standards must be ensured. Local (municipal) government bodies, according to the constitutions of many countries, including Russia, do not belong to government bodies. It is believed that the principle of local self-government should be implemented in local (municipal) entities. Local government is independent within its competence. Russia has ratified the European Charter of Local Self-Government, according to which Art. 12 of the Constitution of the Russian Federation provides that “local self-government is recognized and guaranteed in the Russian Federation.” State authorities, which include regional authorities, should not interfere in resolving issues of local self-government. Local self-government is exercised by the population itself through representative bodies directly elected by it. The responsibility of local authorities includes issues of life support for the population of territorial administrative units. The implementation of this principle in Russia has not yet been completed; financing of costs for the provision of services and social payments is largely carried out at the expense of regional budgets. In addition, they directly provide the population with services in the field of education, healthcare, housing and communal services, etc. In this regard, this textbook examines the economic activities of the public sector taking into account the activities of municipalities.

The standard of living of the population in the regions and municipalities of large states depends on the level of their economic development. The more developed a particular territory is, the greater opportunities it has for providing services to the population. Meanwhile, citizens of one country have equal rights to exercise their constitutional rights and a guaranteed minimum of state and municipal services. If the differences between the territories are not very large, then the difficulties are quite easily overcome through tax policy and inter-budgetary relations, ensuring the accumulation of funds received from taxpayers by the central government and their redistribution to less developed territories. Russia is characterized by extremely large differentiation in the levels of development of various regions and the associated huge difference in the incomes of different regions of the country. These differences developed during different periods of the country's history. The reasons for the problems of the regions may be historical backwardness, lack of natural resources, lack of capital to use available resources, the decline of the leading industries of the regions, etc. The market in these cases does not correct the situation. In this regard, the problems of equalizing the levels of economic development, maintaining the living standards of the population of regions in difficult economic situations, and the role of the public sector of the economy in solving them must be considered.

The scope of activities of the national public sector of the economy also includes economic transactions with foreign partners and regulation of foreign economic relations of the entire national economy.International trade development and movementcapital gave impetus to strengthening the involvement of countries in global economic processes. This is due to the emergence of new information systems, the desire to overcome the limitations of government agencies within individual countries, the capabilities and desire of highly developed countries to use their advantages associated with the production of products at higher stages of processing, high-tech and knowledge-intensive, as well as wide opportunities for using international currency and stock markets. While providing a number of benefits, entering the global economy comes with major risks, especially for developing countries. Many of them fear that the openness of the economy will make them sensitive to capital flows on international financial markets, jeopardize the stability of the national currency, and hamper the development of the national sector of the economy. The market mechanism is not able to independently protect the interests of national production in relations with other countries. In this regard, the state regulates foreign economic activity. The purpose of state regulation of foreign economic relations is to implement certain protectionist measures to protect the national economy and help domestic producers penetrate and gain a foothold in the markets of other countries.

The function of the state in these processes is to develop and implement a national policy that makes it possible to use the benefits of globalization and minimize its negative aspects. In these conditions, national states use customs and currency policies and other instruments for protecting national interests, using them to achieve strengthening positions in international markets for goods, services and capital, and equal relations with international economic organizations.

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

When analyzing the performance of the public administration sector, two main approaches can be used: normative and positive. At normative approach focuses on what government should do. It is aimed at identifying the role of the state in the economy, setting development goals, formulating and justifying methods (programs) for achieving them. Positive the approach is aimed mainly at explaining what the state actually does, identifying the consequences of its activities, the economic and political forces interested and practically implementing certain action programs. Subsequent chapters will use both approaches.

Question 2. Main activities and public goods provided by the public sector of the economy.

Both for the economy as a whole and for the economy of the public sector, there is a problem of choice in the use of available limited resources.At all stages of socio-economic development it is necessary to decide what to produce, how to produce it and for whom to produce it.

When deciding what to produce, a choice must be made between public goods provided free of charge to the population and goods and services produced and sold on a commercial basis. Public goods are produced by the general government sector. Paid goods and services are produced by nonfinancial corporations, financial corporations, nonprofit household service organizations, and households. At the same time, non-financial and financial corporations also include state-owned enterprises that produce and sell products on a commercial basis. They can extract minerals (coal, gas, oil, ores, etc.), produce cars and other products.

Economic resources are limited. Therefore, an increase in the expenditure of resources on public goods leads to a decrease in the production of goods and services on a commercial basis, and vice versa. These circumstances predetermine the general limit of the possible scale of free public goods. This limit is quite flexible, however, the provision of an excessive volume of public goods, compared with the capabilities of the economy, leads to increased taxation and, beyond a certain limit, to a reduction in production growth. In this regard, there is a problem of resource allocation between the sectorpublic administration and other sectors of the economy operating on commercial principles.

Another question is how to produce. To what extent should the state itself produce the goods and services for which it has assumed responsibility for providing, and to what extent should it purchase them from private firms? This issue may be addressed differently for individual activities. In many countries, electricity, telephone and postal services are provided primarily by state-owned enterprises, while only a small portion of government spending on education goes to private schools. Points of view are different. There is an opinion that the transfer of production into private hands leads to infringement of the interests of consumers; on the other hand, it is argued that state-owned enterprises are less efficient than private ones.

Along with the question of the total volume of production of public goods, an important question is for whom to produce. People's interests are ambiguous. Part of the population gives preference to certain public goods, while others give preference to others. For public authorities, resolving this issue is sometimes quite difficult. In this regard, collective choice plays an essential role.

The general needs of all citizens of the country are provided primarily through legislation. At the same time, the consistent implementation of adopted laws, the development and implementation of development strategies and economic policies and the predictability of actions of government bodies, the practical implementation of socio-economic policies are no less important than the laws themselves. The executive branch of government, the delimitation of areas of responsibility between central, regional and local authorities, as well as the formation of government structures that ensure control over compliance with legislative acts are aimed at this. The purpose of this paragraph is a general overview of the types of economic activities carried out by the public administration sector, the public goods (services) it provides, the specific tasks that its activities are aimed at, ways to achieve goals, i.e. ideas about the main types of economic activities of the public administration sector. They will be discussed in more detail in subsequent sections of the textbook.

Due to the variety of types of economic activities carried out by the public sector, the general definition of the subject needs to be specified. Activities and associated public goods produced by the general government sector can be classified according to various criteria depending on the objectives being solved. It seems that the classification of activities based on the functions performed by the public management sector and the associated types of public goods provided, which is also used in the functional classification of public expenditures, is of greatest importance for the practice of distributing public goods.

The types of activities of the public administration sector that provide relevant public goods can be combined into three large groups: the provision of services of a general civil nature (general public services, defense, public order and security), types of economic development activities and types of activities in the social sphere. Along with this, reproductive processes in the public sector, relationships with other sectors of the economy and foreign economic relations are subject to consideration. Let us consider sequentially the above groups of activities of the public administration sector.

2.1. Provision of general public services. Defense. Public order and safety

Civil services include general public services, national defense, and services to ensure public order and security.

General public services. General public services include, first of all, the holding of elections, referendums and other events of a similar nature that ensure the implementation of democratic freedoms and the formation of legislative and executive authorities in accordance with the preferences of citizens. General services also include services provided by general services formed by government bodies that are not related to a specific management function, in particular economic and social planning services, statistical services; services to promote basic scientific research. One of the most important tasks of economic and social planning bodies is to formulate and facilitate the implementation of economic development strategies and economic policies. The strategy defines long-term fundamental guidelines on the development of production, distribution and use of goods and services, social aspects of reproduction, finance, foreign economic activity, and the development of civil society. It defines in general terms a long-term set of actions aimed at implementing the concept of socio-economic development, and is designed to implement the trajectory and dynamics of the country’s economic development, ensuring a significant improvement in the living conditions of the population, the successful adaptation of the country to the changing conditions of the surrounding world and the strengthening of its economic and political positions .

The general purpose of general public services is to create conditions for the collective choice of preferences in the production and consumption of public goods. Citizens of the country consume the same set of them. However, the interests of individual citizens and social groups of the population are different and need to be coordinated. Such coordination in a democratic society is carried out by identifying the opinions of the bulk of the population. The instruments for identifying the prevailing opinion are government bodies formed on an elective basis. During the election process, the population evaluates the election programs proposed by various parties and determines their preferences. Thus, the population, by determining individual ideas about the usefulness of certain actions, comes to the development of collective decisions that determine the impact on production and income distribution.

In practice, operations related to servicing public debt and the provision of economic assistance to developing countries directly or through international organizations are also considered as general services.

Defense. National security services provide the construction and maintenance of the armed forces, civil defense, applied research and experimental development in the field of defense. These services have contradictory effects on the economy. On the one hand, they provide state orders for production and create jobs, on the other hand, they are a direct deduction of resources that could be used to produce goods and services for the population. They must correspond to the capabilities of the economy and budget and be controlled by civil democratic institutions of government bodies that make military-political decisions.

Public order and safety.The activities of law enforcement agencies are aimed at protecting the life, health, rights and freedoms of citizens, protecting property and interests of society from illegal actions. These needs of the population are met by the police, internal troops, prosecutor's office, justice, courts, penitentiary service, security agencies, authorities for control over the circulation of narcotic drugs and psychotropic drugs, for the prevention and liquidation of consequences of emergency situations, fire protection, migration service and other services. In a market economy, economically, property protection plays an important role, guaranteeing individual subjects the right to own, use and dispose of property.

2.2. Activities of the public administration sector to develop the economy and ensure reproduction

Economic growth is ultimately determined by four leading factors: the increase in capital, scientific research and innovation, the use of natural resources, and the quantity and quality of labor resources. The task of the state is to ensure the best development and use of these factors. In this regard, the main functions of the public administration sector in the economy (along with the formation of an economic development strategy, as already mentioned above) are: creating conditions for the normal functioning of a market economy; formation of economic policy and assistance in its implementation; support for production and innovation; development and implementation of labor policies; price regulation; administrative regulation of the economy.

Creating conditions for the normal functioning of a market economy.The main conditions for the functioning of a market economy are ensuring the legislative foundations of a market economy, organizing and regulating money circulation and credit, maintaining a competitive environment, macroeconomic regulation of socio-economic development and ensuring the dissemination of information.

Formation of the legislative foundations of a market economy and measures for their implementation.Legislative activity involvesbuilding the institutional foundations of the market and determining the proportions (ratios) of coexisting and complementary market and state mechanisms for ensuring a market economy. A necessary prerequisite for a market economy are such fundamental acts as the Civil Code, laws on joint stock companies, securities, land, mortgages, bills, etc. Legislative and other normative acts determine the procedure for owning property, the rules for the functioning of markets, and regulate the activities of enterprises. They must provide a stable legal basis for economic relations and law and order in the country, an economic and legal basis for activities in market conditions.

Organization and regulation of money circulation and credit.A market economy is unthinkable without money circulation and credit. This function is directly implemented by the national (central) bank of the country. The National Bank does not belong to the general government sector, but to the financial institutions sector. At the same time, it is the property of the state, which controls its operation and uses it to regulate money circulation and credit due to its inherent role as coordinator of economic activity in the country.

Maintaining a competitive environment, antitrust policy.

The effectiveness of a market economy is most fully manifested in conditions of competitive production, which ensures the minimization of costs. However, in real life, due to the instability of the market system, the desire to maximize profits and suppress competitors, there is a tendency towards monopolization of production and monopolistic pricing, which reduces production efficiency, leads to overuse of resources, unjustified excess profits, and losses for consumers. In Russia, according to data provided by the chairman of the all-Russian public organization “Business Russia” B. Titov, “three years ago 80% of GDP was produced by 1,200 companies, and now only 500.” The market system is not able to cope with these processes on its own. Fulfillment of this task is the function of state supervisory and regulatory organizations that ensure the maintenance of conditions for free competition and limitation of tendencies towards monopolism, protection of consumer interests, regulation of activities in the field of securities, control over natural monopolies, etc.

Macroeconomic regulation.Considering that the market mechanism does not provide a stable macroeconomic equilibrium and, in particular, the balance between supply and demand, investment demand and supply of savings, a major direction of state economic policy is activities aimed at ensuring economic stability, creating conditions for economic growth, smoothing out the negative impact of economic cycles. At the same time, increasing attention is being paid to long-term problems associated with scientific and technological progress, structural restructuring of the economy, capital accumulation, and effective economic growth. The redistribution of resources between economic sectors, social groups and territories is an important lever for structural restructuring of the economy and the implementation of targeted programs.

Ensuring the dissemination of information.To make decisions, business entities must have information about the supply and demand of goods, prices for manufactured goods and factors of production, competitors, market forecasts, etc. Information costs are an important type of transaction cost. Meanwhile, the market mechanism is not able to independently ensure its distribution. Not all market participants are able to have the necessary information. The reasons for this are varied. Some do not have the necessary means to collect information. Many types of information are available or become known more quickly only to some economic entities, for example, because of their proximity to the government or other decision-making authorities, because of their social status, and for other reasons. The uneven distribution of information concerns not only exclusive, but also publicly available information, despite the development of modern means of communication. Individuals who have information find themselves in a more advantageous position compared to their competitors. In this regard, the state assumes the function of determining the scope of information subject to mandatory disclosure and establishing the procedure for publishing data.

State support for production, investment and innovation activities.Along with creating conditions for the effective functioning of a market economy, government bodies carry out practical activities aimed at developing and implementing targeted programs of a state or regional nature, ensuring balanced development of regions, and creating new jobs. Government bodies support important and promising industries and industries, finance research and innovation, assist in the development of domestic and foreign trade, regulate the activities of individual industries, etc. The leading direction of economic activity to support production is the implementation of large-scale projects that cannot be implemented by private business, programs for the development of industries that are of particular importance for ensuring the country's security. Such industries include the space and nuclear industries, the defense industry, etc. These activities contribute to increasing the country’s economic potential, innovative development, structural restructuring of the economy, technical re-equipment and modernization of production.

A significant portion of investments in economic infrastructure (construction of main railways and highways, communication lines, industrial water supply systems, wastewater treatment plants, etc.), as well as the costs of their operation, is carried out at the expense of government bodies at various levels. These investments indirectly contribute to the development of entrepreneurship.

One of the most important instruments of government influence on the economy is financial policy - a set of measures in the field of taxation and government spending aimed at changing the real volume of production, controlling inflation and increasing employment. The financial policy of the state, determined by its actions in the field of revenue generation, the volume and direction of government spending, can be aimed at stabilization, economic growth or restriction of business activity.

Based on the regulatory system, the state is able to actively influence the nature and results of market activity in the interests of society as a whole. Most of the now developed countries in the early stages of development used one or another way to stimulate market development. In the relatively recent past, Japan, South Korea, and a number of other countries, in addition to creating the institutional foundations of the market and conditions for free competition, used various methods to support the economies of their countries. For these purposes, in particular, subsidies were used for strategic areas of development, assistance was provided to the development of infrastructure, exports, and protection of the domestic market. Depending on the specific conditions, one or another currency, trade, credit and industrial policy was carried out. The implementation of these measures was based on the effective activities of a strong state.

The center of gravity of economic rivalry among states has shifted to the sphere of science, engineering and technology. It is taken into account that innovative development is the main factor in GDP growth, leads to an increase in the share of new, more efficient goods and services in it and significantly strengthens the position of countries exporting science-intensive products. However, corporations show little interest in organizing research and development work, especially at the initial stages, when they are associated with high risks and do not promise immediate profit. In this regard, the state promotes scientific developments, both through direct funding and by providing benefits to corporations conducting research activities. State funding of research work is also due to the fact that the implementation of large scientific and technical programs is beyond the capabilities of even large private corporations; their implementation in many cases requires the unification and coordination of the efforts of financial and industrial groups and research centers. In addition, the state finances scientific research work of defense importance and bears the costs of training scientific personnel.

Development and implementation of labor policies.The public sector of the economy provides general management of labor activity in the country. It ensures the development and practical implementation of labor policies and labor standards (for example, working hours, working hours, wages, safety and other working conditions). Government bodies develop and implement measures to reduce unemployment, ensure the functioning of employment and arbitration organizations, implement programs aimed against discrimination in the labor activities of certain groups of the population by gender, age, nationality, programs to reduce unemployment in underdeveloped regions and regions with high unemployment. .

Pricing.A current area of ​​activity for government bodies is the formation of mechanisms and regulation of prices for public sector services, as well as the impact on the prices of goods and services in the private sector.

Administrative impact on the economy. The public administration sector is also concerned with the organization of the activities of patent offices, trademark registration services, copyright services, standardization and metrology, time services, intelligence and research services in the field of hydrology, geodesy and cartography, and the organization of consumer rights protection.

Reproduction in the public administration sector.The existence and development of society is ensured by the continuous process of reproduction, the essence of which is the production of goods and services, their consumption and renewal. The public administration sector is an active participant in the reproduction process. In this regard, the subject of consideration is the production, distribution and use of gross value added in the sector itself, its interaction with other sectors and the efficiency of resource use. Reproduction on the scale of the national economy is a synthesis of complex interconnected and interdependent reproduction processes occurring in its sectors. Analysis of reproduction in individual sectors of the economy involves the use of the same theoretical and methodological approaches as analysis of the economy as a whole, taking into account the characteristics of these sectors and their role in the overall reproduction process. This also applies to the public administration sector.

The leading indicators characterizing the scale of production in the public administration sector are the volume and growth of gross value added, its specific content, taking into account changes in structure and qualitative changes. In Russia in 2005, the gross added value of this sector amounted to 1.9 trillion rubles, or 9% of the sum of the gross added value of all sectors of the economy.

The public administration sector is the owner of significant fixed assets: administrative buildings, housing, schools, clinics, hospitals, buildings and structures for cultural and sports purposes, defense facilities, etc. This component of the country's total capital needs constant development and renewal. Gross fixed capital formation includes the creation and acquisition of fixed assets (less disposals), the costs of major improvements, the costs of improving non-produced assets, and the costs of transferring ownership of non-produced assets. In Russia, in the public sector of the economy, the gross accumulation of fixed capital is currently approximately 5 times higher than its consumption, however, due to the persistence of a large volume of obsolete fixed assets, the degree of depreciation of fixed assets continues to increase. At the same time, government bodies in 2003-2007. They used only a quarter of their savings to save.

A challenging aspect of the analysis is the growth factors of the general government sector economy. If in relation to the corporate sector of the economy we can say that the initial factor of development is the 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 other sectors of the economy, and primarily to the household sector. At the same time, the final consumption and accumulation of this sector exceed the value of its own production, and the total amount of goods and services provided by it 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.

2.3. Types of activities of the public administration sector in the social sphere

In developed countries, the public administration sector develops and implements a set of measures that contribute to the formation of human capital and a post-industrial society. The most important components of the activities of the public administration sector in the social sphere are the regulation of income, prices and employment, ensuring the development of social infrastructure, education, healthcare, culture, organizing a system of social guarantees and social protection of the population,environmental protection. The scale of state participation in the social sphere depends on the type of public sector economy that has developed in various countries, the predominance of a liberal or socially oriented direction in views on the ongoing economic policy, the degree of regulation or deregulation of socio-economic development. The activities of government bodies in the social sphere are designed to solve two main conflicting problems. One of them is to ensure sufficiently high living standards for the population and achieve social consensus on this basis. On the other hand, social policy is designed to stimulate the economic activity of the population. In a market economy, which is characterized by significant gaps in the income levels of various social groups of the population, unemployment and other social ills, the need to improve living standards and reduce poverty is justified by the requirements of ensuring social justice.

A negative feature of a market economy is the tendency to increase income differentiation, social inequality, and an increase in the absolute number and proportion of the population with incomes below the subsistence level. A significant portion of income results from the use of funds received previously (property income). This leads to the concentration of wealth among capital owners, while wages and salaries are the main income of wage earners. From the point of view of the ethics of a market economy, the receipt of any income based on legally recognized market transactions is fair. The result is a tendency towards accumulation of wealth and luxury at one extreme and poverty and misery at the other. A market economy is indifferent to social and moral requirements, unless this contradicts the economic principles of organizing a market economy. Po This inequality leads to negative social consequences and discontent among the population. In order for people to receive incomes that provide a decent existence from a generally accepted point of view, government intervention is required.

The accumulation of funds in the budget allows the state to implement social programs aimed at human development, culture, healthcare, education, support for low-income families, and solving the housing problem.

One of the most important tasks of the state is to ensure the most equitable distribution of benefits among members of society. By carrying out this activity, the state reduces social differentiation through the redistribution of income, material goods and services based on taxation and the implementation of social programs. This is due to the expenditure of public funds on education, healthcare, and ensuring the property and personal security of citizens. Social policy can help reduce poverty and inequality, help improve the conditions for the development of economically backward regions inhabited by national minorities, as well as the so-called unpromising regions, eliminating the basis for political and social instability.

At the same time, from the position of liberal economists, in order to increase the efficiency of the economy and motivate entrepreneurial and labor activity, the need to reduce social programs and a corresponding reduction in taxes is substantiated. The situation is complicated by the fact that an increase in living standards, especially in countries with a relatively low level of development, is required, as they say, here and now, and an increase in living standards through increased production efficiency is expected in the indefinite future.

In the process of economic development in the 20th century. periods of reduction or expansion of social programs and, accordingly, public goods changed places, but the general direction was to increase the scale of state participation in the social life of society, and the reduction each time was carried out relative to the higher level achieved.

Government bodies largely insure citizens against a number of threats to their economic security. This is done, in particular, through pensions in old age, health insurance in case of illness, and unemployment insurance. In a number of countries, state forms of insurance are the main ones. In others, the private sector bears a significant portion of the costs. The most developed are European-type insurance systems. However, many developing countries, for example China, India, Brazil, cannot yet afford to implement such systems due to an insufficient level of economic development.

The production of goods and services is often associated with positive and negative side effects, so-called externalities, for other individuals and organizations. So, for example, aboutthe laying of a railway or highway can have a beneficial effect on the development of individual regions, and the construction of a chemical plant without sufficient treatment facilities leads to pollution of the atmosphere and water bodies. Positive “externalities” are met favorably, while negative ones create problems in the economy and society because they degrade the environment and cause additional costs for legal entities and individuals experiencing their impact. In the case of negative “externalities”, producers gain benefits at the expense of damage caused to neighbors. The market mechanism, as a rule, is not able to independently resolve such contradictions. This requires government intervention, which sets standards governing environmental protection and measures to prevent and eliminate harmful external effects.

State regulation of environmental protection is carried out on the basis of state legislative norms, budget expenditures of the state itself, influence on private entrepreneurship through market mechanisms, attracting the attention of public opinion, information, etc.

2.4. Economic activities of state-owned or controlled enterprises

The main groups of enterprises owned or controlled by the state are non-financial enterprises and enterprises in the financial and credit sector.

Non-financial enterprises.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. Such enterprises may include postal enterprises, water, gas, electricity, heat supply enterprises, nuclear industry, defense plants, etc.

A major area of ​​activity for non-financial state-owned enterprises is the natural monopoly industry. Undernatural monopoly productionunderstand production in which effective activity is possible only with sufficiently large volumes of products or services and at the same time the existence of competitive production is impossible, extremely difficult or difficult to implement. The condition for the existence of a natural monopoly is a situation in which the effect of scale of production due to technological features is so significant that ensuring low costs per unit of production and, accordingly, low prices is possible only with very large volumes of production. At the same time, a single enterprise in the industry can meet the needs for products or services of a given type at a cost per unit of production that is significantly lower than two or more competing enterprises.

Such industries usually include railway transport, electric power companies, enterprises for the extraction and transportation of oil and gas through pipelines, post office, telephone companies, water and heat supply enterprises, sewerage, cable television, highways, etc. Indeed, the existence of two parallel railways means doubled infrastructure costs. The presence of several city power companies entails high costs for the construction and operation of parallel high-voltage networks. Meanwhile, the production of natural monopolies tends to have low marginal costs. For society as a whole, the monopolistic organization of production in these cases turns out to be more economically profitable than the creation of competing enterprises. A reduction in production volumes for each individual enterprise in the event of the emergence of parallel production and division of the market between them would lead to an increase in the cost of products and services of each of the competitors and, accordingly, to an increase in prices for consumers. In this sense, enterprises that can produce a certain amount of products at lower costs than two or more firms producing the same amount of products can be considered monopoly. State-owned enterprises may also include state-owned defense industry enterprises, port facilities, state organizations for the creation of reserves of strategic reserves of food and other goods, organizations engaged in leasing state property, etc.

State-owned enterprises can be used to implement critical government programs. The total need for financing of the general government sector and non-financial public enterprises and the ability to meet it are important indicators of the total volume of transactions they perform and the impact they have on the state of the country's monetary system.

The activities of state-owned or controlled enterprises may be aimed at accelerating investment and innovation activities in areas where private capital is not interested in this, since profits may not appear soon. Thus, in order to speed up the use of scientific achievements in the production of products that are in demand on the market, in Russia in 2006-2007. State corporations began to be created. A nanotechnology corporation has been created.

In Russia, the public sector includes a significant portion of corporations classified in the SNA as the sector of non-financial corporations. This refers, in particular, to such corporations as OAO Gazprom, RAO Russian Railways, OAO United Aircraft Corporation, OAO United Shipbuilding Corporation, many defense plants, enterprises producing and refining about a quarter of oil, etc.

The activities of state-owned non-financial enterprises are criticized for their lack of efficiency, expressed in increased costs and low profitability and even unprofitability. In the absence of competition, as in the case of natural monopolies, there are no incentives for efficiency. In practice, governments strive to make such enterprises self-financing, but in many cases they have to resort to subsidies.

Increasing efficiency is an urgent task, but one must not lose sight of the fact that in some cases, as, for example, in the cases of natural monopolies and many defense enterprises, it is difficult for the state to abandon these enterprises. In addition, the target function of state-owned enterprises in many cases is to better utilize the resources of the economy, provide employment, and 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. It should also be taken into account that in the modern Russian economy a number of state-owned enterprises, in particular those involved in oil and gas production, are highly profitable and make a significant contribution to budget revenues.

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.

Financial and credit institutions.In almost all countries, the government organization is the central bank. 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, for example, Sberbank of Russia and state investment banks.

Institutions and activities of this kind, carried out within the public sector of the economy, do not belong to public administration. All functions related to financial and credit operations, regardless of which institutional units they are performed, are considered as activities of the financial corporations sector, and not the general government sector. In public finance, only the final transactions between the general government sector and the financial and credit sector are taken into account, which reflect the net flow of funds into or out of this sector as a result of such transactions.

CONCLUSIONS

1. The public sector of a country's economy is understood as a sector that represents and serves the interests of the entire population. The main activities of the public sector of the economy are the provision of public goods, usually free of charge, the redistribution of income and wealth and the provision of social assistance to the population, as well as the production and sale of goods and services on a commercial basis by enterprises owned or controlled by the state. Due to its special role, the state can also influence the economic behavior of business entities through the adoption of legislative and other regulations, taxation, subsidies and other measures to regulate economic activity.
2. The components of the public sector are the general government sector and enterprises owned or controlled by the state, but classified according to the system of national accounts as non-financial and financial corporations. The basis of the public sector is the public administration sector, in relation to which public finances are also formed.
3. The main functions of the general government sector are to provide policy and regulatory activities, provide goods and services on a non-market basis for collective or individual consumption by members of society, and redistribute income and wealth through transfers and subsidies.
4. State participation in the economy is usually associated with the contradictory nature of the market economy itself, which is unable to solve a number of complex problems of socio-economic development, the so-called market failures. There are, however, factors that determine the inevitability of the participation of the public management sector in economic life, regardless of the “failures” of the market. 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 rights of its institutional units to notthe property required for this, on the accumulation and expenditure of funds. The general government sector accumulates and spends almost a third of the country's gross disposable income. The number of workers in the public sector, together with workers employed in its enterprises, accounts for more than 30% of all employees in the country. 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. Another circumstance that predetermines the participation of the public administration sector in economic life is the need to form and constantly adjust the institutional foundations of a market economy.
5. At all stages of socio-economic development it is necessary to decide what to produce, how to produce it and for whom to produce it. When deciding what to produce, a choice must be made between public goods provided free of charge to the population and goods and services produced and sold on a commercial basis. Economic resources are limited. Therefore, an increase in the expenditure of resources on public goods leads to a decrease in the production of goods and services on a commercial basis, and vice versa. These circumstances predetermine the general limit of the possible scale of free public goods. This limit is quite flexible, however, the provision of an excessive volume of public goods, compared with the capabilities of the economy, leads to increased taxation and, beyond a certain limit, to a reduction in production growth. In this regard, there is a problem of resource distribution between the public administration sector and other sectors of the economy operating on commercial principles. Another question is how to produce. To what extent should the state itself produce the goods and services for which it has assumed responsibility for providing, and to what extent should it purchase them from private firms? This issue may be addressed differently for individual activities.
6. The types of activities of the public administration sector that provide relevant public goods can be combined into three large groups: the provision of services of a general civil nature (general public services, defense, public order and security), types of economic development activities and types of activities in the social sphere.

TERMS

Benefits

Public goods

Government sector

General government sector

SELF-TEST QUESTIONS

1. Define the public sector of the economy.
2. What is the difference between the public sector of the economy and the general government sector?

3. Name the main factors that determine the need for the public sector of the economy.

4. Describe the scope of public sector activities.

5. What are the main public goods provided by the public sector of the economy?

TOPIC 1. PUBLIC SECTOR IN A MODERN MIXED ECONOMY

Subject of economics of the state and municipal sector

The dialectics of the development of society is associated with its dual nature. WITH On the one hand, these are the relations of society with a person, on the other hand, the relations of society with the state. The economy of the public sector combines state regulation of social and human institutions. The feedback system of the state, society and people is one of the most complex theoretical and practical problems of increasing the efficiency of the public sector. It is not man who exists for the state, but the state for man.

Public sector economics is a fundamental science, which means that its methodology is based on objective universal laws, perceived from the standpoint of dialectical development. Public sector economics is studied at the intersection of economic theory, sociology, political science and psychology.

Theoretical basis of the course is a combination of political economy, institutionalism, micro- and macroanalysis, world economy, and public sector economics of foreign countries. This is especially important, since in the context of globalization, the economy of the public sector in Russia and other countries preserves its historical traditions in the relationship between the state, society and people.

Subject of study of public sector economics- the role and functions of the state as an economic entity in a market economy, interaction with other economic entities within the country and abroad. The economic activity of the public sector as a whole, at the federal, regional and municipal levels, as well as in the context of industries and types of economic activity, is subject to consideration.

The most important objectives of the public sector economics course:

Justification of the need for the development of the public sector in a market economy;

Theoretical justification for the need for government intervention within microeconomics from the standpoint of efficiency and fairness;

Familiarization with the theory of public choice, identifying problems and difficulties of state regulation of the economy;

Familiarization with the instruments and mechanisms of government intervention in the economy.

Main questions, considered by the public sector economy, are:

The influence of the public sector on the standard of living and living conditions of the population based on the production and provision of services on a non-market basis, social payments and the use of other instruments;

Formation of income, expenses and property of the public sector;

The influence of economic policies and economic activities of the public sector on other participants in economic activities and their economic behavior;

The production of goods and services by the public sector on a commercial basis.

The market economy of any country is a mixed economic system, consisting of the most important sectors – private and public. The variety of types of mixed economies, which arose as a result of the historical characteristics of the formation of statehood, national mentality and other factors, led to ambiguity in approaches to the interpretation of the concept of “public sector”. Two approaches are most widespread.

The public sector is the totality of economic resources at the disposal of the state and public organizations (including local governments). It represents a part of the economic space in which:

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

2. not private, but public goods are produced, distributed and consumed;

3. the economic balance between demand and supply of public (collective) goods is ensured by the state, local governments and voluntary public organizations with the help of relevant social institutions, primarily through fiscal policy.

In the public sector production of economic goods of a special kind is carried out - public goods. Between the market and public sectors of the economy, between the state and economic agents, exchanges of activities and flows of economic benefits arise. The public sector plays an active role in the circulation of income, resources, goods and services.

Because the public sector is dominated by government activities, it is often referred to as public sector. This identification of the public and state sectors is to a certain extent acceptable.

The purpose of the functioning of the public sector (through mechanisms for implementing the stabilization function, as well as the functions of distributing resources and income) is the formation of a single socio-economic space in a certain territory.

The public sector includes three subsectors:

state,

voluntary public

mixed.

On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, and on the other, there is an adjacent zone within the public sector between the state and voluntary public subsectors.

The public sector of the economy: understanding in a narrow and broad sense. First of all, it must be said that there is no unified approach to defining and isolating the public sector into an independent concept. There are discrepancies here that have target and national specifics. In this regard, at present we can talk about two interpretations of the public sector: in narrow And in a broad sense. Let's look at the first aspect first.

When determining the essence of the public sector, as a rule, they proceed from the fact that it is the most important component of the national economy. At the same time, a distinctive feature of the public sector of the economy is the ability of the state to implement direct And operational management of economic entities included in its composition. The management of business entities in the public sector of the economy is carried out by state authorities through their representatives who participate in the formation of the strategy and tactics of the activities of public sector enterprises.

The methodological basis for defining the public sector is the concept administrative and economic management legal entities (business entities). Administrative and economic management refers to the influence on the part of the manager (head of the legal entity) on the activities of the legal entity, aimed at achieving the set goal as quickly as possible. Based on this concept, the definition of the public sector is formulated:

Narrow interpretation of the “public sector”“- the public sector of the economy should be understood as a set of legal entities (business entities), the administrative and economic management of which is carried out by the state through the federal and regional authorities of the country. It is assumed that the public sector is intended to represent the interests of members of society, therefore it is usually called the public sector.

Broad interpretation of the “public sector”“- the public sector is understood as the totality of economic resources owned by the state, all organizations through which state regulation of the economy is carried out. This includes the economic budget, government organizations in the field of administration, healthcare, education, defense, state-owned production enterprises, state lands, and mineral reserves.

1.2. Economics of the public sector and economics of the public administration sector.

The modern economy is mixed. Economic activity in it is carried out by the public (public) sector, as well as private non-financial enterprises, financial, credit and other organizations, often united under the general concept of “private sector”. The economy of the public (state) sector itself is also mixed. The components of the public sector are the general government sector and enterprises owned or controlled by the state, but classified according to the generally accepted division of the economy into economic sectors as non-financial and financial corporations . The basis of the public sector is the public (government) management sector, in relation to which public finances are also formed. Let's consider its place in the system of economic sectors of the economy.

Currently, when making forecasts of socio-economic development, forming finances, principles of constructing statistics and economic analysis the boundaries of economic sectors are determined in accordance with the system of national accounts, which is accepted all over the world. Thus, unified approaches to the study of the economics of the public sector and the economics of other sectors are provided. In the System of National Accounts, adopted by the United Nations in 1993, the general government sector is identified as one of the economic sectors.

According to this system, economic entities of the country (institutional units) that own and manage assets and enter into economic relations with other economic entities, in accordance with the functions they perform and methods of financing costs, are united into five institutional sectors of the economy:

Non-financial corporations sector;

Financial Corporations Sector;

Public Administration Sector;

Household sector;

Sector of non-profit organizations serving households (NPOSH).

Each of these sectors includes corresponding institutional units. Under institutional unit refers to an economic entity (economic unit) that owns and manages assets on its own behalf, accepts liabilities, enters into economic transactions with other institutional units, and prepares a full set of accounts, including a balance sheet of assets and liabilities. Both legal entities (enterprises, government bodies, credit organizations, insurance companies, etc.) and households are accepted as economic entities, since they are centers for making economic decisions. Business entities have economic resources in constant circulation.

Non-financial corporations include institutional units located on the economic territory of the country (corporations and quasi-corporations), the main function of which is the production of goods and non-financial services with the aim of selling them on the market and making a profit. Production costs are reimbursed from sales proceeds. This sector includes, in particular, enterprises of industry, agriculture, construction, transport, communications, trade, etc.

The financial corporations sector includes institutional units whose main function is financial and credit activity - monetary authorities, banks, insurance companies, non-state pension funds and other institutions engaged in financial intermediation.

Non-profit organizations serving households (the population) include public non-profit organizations that provide non-market services to households. These are public organizations, including political parties, trade unions, religious organizations, various kinds of societies, unions and associations, as well as meeting needs in the field of education, health, culture, etc. They are funded by member dues, donations and property income.

The household sector consists of individuals or groups of individuals living together and sharing a common budget. Households manage their resources, have assets and liabilities, and engage in economic activities. These include households of employed persons, households of entrepreneurs, households of the self-employed (persons of liberal professions, owners of small unincorporated farms, family shops, cafes), households of persons living on transfers (pensioners, students). This is a sector that mainly consumes goods and services and produces them for its own consumption and sale.

Public Administration Sector. The public administration sector includes institutional units entitled to legislative, executive and judicial power in the territory of the country or its parts.

Main functions of the general government sector are:

Providing policy and regulatory activities;

Providing goods and services on a non-market basis for their collective or individual consumption by members of society;

Also redistribution of income and wealth through transfers and subsidies. This predetermines its role as the basis of the public sector, its leading element. Respectively, The economy of the state (public) sector is the central link in the economy of the state (public) sector.

The public (public) sector is a broader concept than the government sector. It includes the general government sector and government-owned or controlled enterprises and organizations that, like private sector enterprises, produce goods and services on a commercial basis and are part of the non-financial and financial corporations sectors.

1.3 Composition of the public sector of the economy by organizational and legal forms:

State unitary enterprises;

State (budgetary) institutions;

Joint-stock companies, in the authorized capital of which a controlling stake of voting shares (more than 50%) is in state ownership (federal and/or constituent entities of the Russian Federation);

Subsidiaries, the main (parent) company of which belongs to the public sector;

Enterprises that are part of a holding whose parent company belongs to the public sector;

Joint-stock companies, in the authorized capital of which a controlling stake of voting shares (more than 50%) is owned by state unitary enterprises;

Enterprises whose authorized capital includes a “golden share” in the hands of the state.

Main activities of the public sector economics:

Providing public goods;

Redistribution of income and wealth and provision of social assistance to the population;

The production and sale of goods and services on a commercial basis by government-owned or controlled enterprises.

Due to its special role, the state can also influence the economic behavior of business entities through the adoption of legislative and other regulations, taxation, subsidies and other measures to regulate economic activity.

Introduction

1. State and municipal sectors of the economy. Current state of the state and municipal sectors

2. Financial policy of Russia in modern conditions. Contents of financial policy. Public debt management

Conclusion

Bibliography

Introduction

Finance (from lat. financia- cash, income) - a set of economic relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds. Usually we are talking about trust funds of the state or economic entities (enterprises).

1. State and municipal sectors of the economy. Current state of the state and municipal sectors

Government sector- a set of enterprises, organizations, institutions that are state-owned and managed by state bodies or persons appointed by them.

The public sector of the economy includes all economic resources owned by the state and all organizations through which state regulation of the economy is carried out. This includes the state budget, state-owned production enterprises, state organizations in the field of management, healthcare, education, defense, and state lands.

The municipal sector of the economy is a sector of economic relations limited by the boundaries of a municipality, focused on maintaining and developing those areas of the national economy that fall under the competence of municipal authorities. As a rule, issues falling within the competence of local authorities belong to the category of operational ones and must be resolved in the minimum possible time in the established procedure for their consideration. Enterprises of any form of ownership can operate in the municipal sector of the economy, the purpose of which is to satisfy municipal interests.

Share of the public sector of the economy in 2009 the total production volume will be 8.9% versus 9.1% in 2008.

In the fuel and energy complex (FEC), the public sector of the economy includes:

In the coal industry - 151 enterprises;

In the oil industry - open joint-stock companies NK Rosneft, Eastern Oil Company, ONAKO and Sibur, which produce about 26% of oil, as well as state-owned companies for pipeline transportation of oil and petroleum products Transneft and Transnefteproduct ";

In the electric power industry - RAO UES of Russia, its subsidiary regional joint-stock companies, nuclear power plants.

The specific volume of products produced by the public sector of the fuel and energy complex in 2008 amounted to about 46% of the total industrial production of the complex against 55% in 2007.

The share of products from the public sector of the economy in the total volume of ferrous metallurgy products in 2009 should, according to the forecast, be 1.5%, non-ferrous metallurgy - 2.4%.

In civil engineering, the privatization process was largely completed in 2008. Of the 1,562 enterprises and organizations of the machine-building complex, more than 90% have been transformed into joint-stock companies. 1,165 enterprises and organizations were completely purchased in the complex. In 2008, there were 168 enterprises in the public sector of the economy. The share of products manufactured by public sector enterprises is less than 1% of the total volume of mechanical engineering products.

There are currently 154 enterprises in the public sector of the chemical complex, of which 8 are joint-stock companies with a predominant share of the state (more than 50%). The share of the volume of products produced by public sector enterprises of the chemical and petrochemical industry in the total volume of products is 10%, microbiological - 19, medical - 21%.

The share of production volumes produced by enterprises in the public sector of the economy in the total volume of production of the defense complex is 49%. It is predicted that the number of state-owned enterprises in the defense complex will further decrease to 450, and the number of state-owned enterprises will increase from 5 to 25 units. The number of enterprises corporatized with 100% state participation should be 58 units in 2009. The process of forming state research centers and federal research and production centers, new integrated companies and corporations will continue. The total number of integrated structures in the defense industry will increase in 2009 to 60 units compared to 37 units in 2008.

In the timber industry, about 18% of enterprises belong to the public sector of the economy. The share of the public sector in the total volume of commercial products of the timber industry is 5%.

The share of agricultural products produced in the public sector in the total volume is 17.4%.

The share of the public sector in the total volume of transportation was 58.4% in 2008 versus 53.5% in 2007.

Railway transport enterprises remain state property.

The share of paid services to the population by communications enterprises in the public sector of the economy is 88%.

State-owned organizations (including municipal ones) account for 8% of the total volume of retail trade turnover through all sales channels.

The share of public sector enterprises in the total volume of sales of paid services to the population is 42%.

For housing and communal services, the share of public sector enterprises is 70.9%, services of cultural institutions - 58.9%, passenger transport - 56.9%, communications - 33.8%, sanitary and health services - 25.8%.

The main source of financing for sectors of the social and cultural sphere are budget funds, the share of which is 79-82% of total expenses for these purposes.

It is planned to continue to carry out structural restructuring of the network of institutions in the socio-cultural sphere, aimed at the formation and development of a system of non-state institutions. The transfer of some social and cultural institutions from federal ownership to state ownership of constituent entities of the Russian Federation and municipal ownership will continue, which will allow financial resources to be concentrated on providing state support to leading institutions and on the implementation of priority areas for the development of the complex.

The share of state-owned organizations in the total number of scientific organizations is about 73%. An important component of modern scientific and technological policy has become the formation of a network state scientific centers(SSC), the number of which reached 58.

The share of enterprises in the public sector of the economy in 2008 accounted for about 21% of the total investment in fixed capital from all sources of financing versus 22% in 2007. A further reduction in investment volumes is expected by 16% from the 2007 level.

In 2009, the share of investments in fixed capital of enterprises in the public sector of the economy will be 20%. Investments are projected to decline by 9% of what was expected in 2008. Given the insufficient state investment resources, budget funds in 2009 are allocated only to repay accounts payable for a strictly limited range of programs.

In 2008, the number of workers at state-owned enterprises was 14.15 million people, which amounted to 26.6% of the total number of workers employed in the economy. The main production sectors in the public sector of the economy account for about 40% of the workforce.

The basis of the management system in the public sector of the economy is a clear definition of its components and the implementation of their state accounting and registration.

One of the main directions of institutional reforms in the public sector is the process narrowing the scope of application of business law.

The process of transferring both the enterprises themselves and other objects of federal property into the ownership of the constituent entities of the Russian Federation continues. First of all, this concerns social, cultural and communal facilities.

2. Financial policy of Russia in modern conditions. Contents of financial policy.

municipal sector finance debt

Financial policy is a fundamental element in the financial management system. Based on the definition of finance as economic relations in the formation, distribution, redistribution and use of funds, the state, when organizing these relations, determines the main goals and objectives facing society and, accordingly, the financial system.

At all times, the main goal of financial relations was to organize them in such a way that would be aimed at ensuring the growth of social wealth. Achieving this goal is possible only with the effectiveness of specific forms of distribution, redistribution and use of available financial resources and the financial potential of the state. A general indicator of the effectiveness of the financial mechanism is the growth rate of gross domestic product and national income - the main source of growth in the welfare of society.

Financial policy is an independent sphere of state activity in the field of financial relations. This is a set of state measures to use financial relations, mobilize financial resources, their distribution and use for the implementation of a particular state program of economic and social development.

Policy covers all areas of government activity. Depending on the sphere of social relations, which is the object of political influence, they talk about economic or social, cultural or technical, budget or credit, domestic or foreign policy. Financial policy has a self-sufficient independent significance and at the same time is the most important means of implementing state policy in any area of ​​public activity, be it the economy, the social sphere, military reform or international relations.

The implementation of financial policy can be divided into 3 stages :

1) identification and setting of main goals and specification of long-term and immediate tasks that need to be solved to achieve the set goals for a certain period of society’s life;

2) determination of the main directions for the use of financial resources, as well as the development of methods, means and specific forms of organizing relations, with the help of which these goals are achieved in the shortest possible time, and immediate and long-term problems are solved in an optimal way;

3) selection and placement of personnel capable of solving the assigned tasks, organizing their implementation, and, in fact, carrying out practical actions aimed at achieving the intended goals.

Naturally, the direct influence of financial policy on the economy begins only at the third stage, but it is determined by the content of the two previous stages.

Financial policy itself cannot be good or bad. It is assessed in accordance with the extent to which it corresponds to the interests of society (or a certain part of it) and how much it contributes to achieving set goals and solving specific problems.

To assess the financial policy of a given government and make recommendations for its adjustment, first of all, it is necessary to have a clear program of social development, highlighting the interests of the entire society and individual groups of the population, characterizing long-term and more immediate tasks, determining the time frame and methods for solving them. Only under this condition can it be possible to develop a specific mechanism for implementing financial policy and give its objective assessment.

The effectiveness of financial policy is higher the more it takes into account the needs of social development, the interests of all layers and groups of society, specific historical conditions and characteristics of life.

Financial policy should be aimed primarily at generating the maximum possible volume of financial resources, since they are the material basis for any transformations.

Public debt management is a continuous process that includes 3 stages: attracting financial resources by placing securities, repaying and servicing debt obligations. At the 1st stage, the maximum amounts of government borrowing and guarantees for the next budget year are determined, tools for attracting resources and increasing the efficiency of their use are selected. At the 2nd stage, resources are attracted in external or internal financial markets by issuing and placing government securities, obtaining a loan or providing government guarantees, and then these funds are used to finance current budget expenditures or investment projects. The 3rd stage is to search for sources of financial resources to repay and service public debt, reduce overall costs, and timely fulfill debt obligations.

Government debt obligations are repaid from budget revenues, the country's gold and foreign exchange reserves, funds received from the sale of state property, as well as new borrowings.

Methods public debt management can be divided into administrative and financial.

Administrative methods are based on the quick and precise implementation of individual orders of government and administrative bodies; they do not provide for an assessment of the cost-effectiveness and results of actions taken to public debt management.

Financial methods consist in choosing methods and forms of ensuring the repayment of public debt through the analysis of financial indicators and are aimed at maximizing the effect of attracted loans with minimal costs associated with their repayment and servicing.

The most optimal combination of administrative and financial methods is determined by internal and external economic and political factors. In conditions of a debt crisis, when the state experiences difficulties in fulfilling previously assumed obligations to repay and service public debt, the following are used: refinancing, restructuring, loan conversion, loan consolidation, cancellation and write-off of public debts.

Public debt management directly affects economic growth, inflation, interest rates, employment, and the volume of investments in the country's economy as a whole and in the real sector of the economy.

Conclusion

Financial policy is a system of measures for the management, distribution and accumulation of financial resources.

Financial policy is an integral part, the core of the state's economic policy.

Financial policy is manifested in a system of forms and methods of financial management. The main task of financial policy is to provide financial resources for the state's socio-economic development program. The content of financial policy is complex and covers a wide range of measures:

1) Development of a general concept of financial policy, determination of its goals and objectives;

2) Creation of an adequate financial mechanism;

3) Management of the financial activities of the state and other economic entities.

The fundamentals of financial policy constitute a strategic direction that determines the long- and medium-term prospects for the use of finance and provides for the solution of global problems. They are related to the main problems facing the state: the effective use of financial resources, regulation of social and economic processes, stimulation of individual industries and territories, advanced areas of development.

The success of financial policy and its high effectiveness determine the power of the state, its ability to ensure the performance of all functions, realize national interests, maintain a balance between internal and external interests, and socio-economic stability.

Bibliography

1. Drobozina L.A., Finance. - M.: Finance and Statistics, 2009.-398s

2. Rodionova V.M., Finance. - M.: Finance and Statistics, 2005.-280s

FEDERAL EDUCATION AGENCY State educational institution of higher professional education PENZA STATE UNIVERSITY E. V. Alekhin “ECONOMICS OF THE STATE AND MUNICIPAL SECTOR” Textbook PENZA 2010 Contents 1. Introduction 3 2. Topic 1. Theoretical foundations of public finance. 7 3. Topic 2. Economic functions of the state. 37 4. Topic 3. State and municipal sector of the economy. 57 5. Topic 4. State financial policy of Russia. 102 6.Topic 5: Financing and production in the public sector. 123 Introduction The modern system of public financial management is the result of the long-term development of state institutions. The past century, and especially the post-war period, was characterized by a significant expansion of the public sector in countries with market economies, which in its growth outpaced the dynamics of the private market sector, which was due to the complication of government functions, the use of new methods of macro- and microeconomic regulation aimed at compensating for “failures” market mechanism. The first topic provides a brief overview of theoretical ideas about public finance as part of the public sector economy, and describes the main theories relating to taxation, the provision of public services, and financial relationships between government bodies at different levels. It addresses the following questions: What are the specific features of public goods? Why does the government have the task of providing public goods and services? What ways might there be to provide public goods and services? Does the state necessarily have to produce public goods itself, or can they be produced in the private sector? Analysis of government functions, determination of the scale and boundaries of the public sector, features of public goods and services and methods of their provision, which are the subject of research in the first section, are of great importance for understanding the mechanisms of public financial management. The state ensures legal regulation of the economy, provides public goods, redistributes income between individuals, has a stabilizing effect on the economy and financial system, and promotes economic growth. The implementation of these functions is carried out primarily on the basis of the formulation of public policy and the management of public finances. The goals of public policy determine the choice of forms and methods of regulation, fiscal instruments and technologies necessary for the implementation of functions. Thus, setting long-term goals, as a rule, requires the use of methods of multi-year budget planning, results-based budgeting, special methods of debt management, etc. At the same time, public finance management in almost any country is carried out on the basis of the distribution of fiscal powers and interaction various levels of government. In turn, the nature of the budget structure and inter-budgetary relations largely determine the effectiveness of the implementation of government functions. Finding the optimal balance between centralized and decentralized management is one of the central tasks in any national public finance management system. 1.1.1. Development of theoretical ideas about the economics of the public sector The theory of economics of the public sector originates in the works of the ancient Greek thinkers Plato and Aristotle. The evolution of economic theory has long been hampered by insufficient knowledge in the field of microeconomic processes. Development at the end of the 19th century. The theory of general equilibrium proposed by L. Walras within the framework of the marginalist economic school became an impetus for the development of the economy of the public sector. E. Lindahl generalized Wicksell's work with a more detailed analysis of the relationship between standard efficiency norms and political institutions.