Features of Financing the Public Goods Production

Abstract

The volume of public procurement and private equity -related values that the indifference curves represent. Thus, in each case, the choice between investing in the creation of wealth and state procurement organization should consider a scenario as a set of equivalent goods and proceed from the budget constraint. On the basis of estimated solution of direct investment or PPL will be possible to support a proposal to temporarily unclaimed goods, providing demand for the products of company towns.Keywords: public goods, financial policy, the state budget, public finance efficiency, economic theory, macroeconomics The Main Objective of Government Financial PolicyAs an important goal of modern government financial policy, most domestic economists distinguish the development and implementation of an effective system of financial security and the full fiscal stimulus accelerated stable economic growth in the country, allowing a relatively short time to become leaders in the global economic environment and improve the welfare of citizens. As evidence of the realization of this goal leads GDP growth.In our view this approach, at least, is debatable. In view of the fact that the regulatory definition of efficiency is not fixed and is not proposed indicators usefulness of financial security, we do not speak about the implementation of these parts of the objective of financial policy. At the same time GDP value growth cannot characterize, stability, economic, as the economy is cyclical causes periodic changes in its entirety. Speaking about the release dates in the leading countries should specify the planning horizon, since the phrase "in a relatively short period of time" does not give grounds for predicting positive change. In accordance with the theory of well-being, of course, possible to consider the welfare of citizens' purpose financial policy, but in the part of the public sector and public goods provided by the state, as we have previously shown, there is a contradiction with the process of distribution of welfare (Behair, 2007). Therefore, in our opinion, should not talk about improving the welfare of citizens, as the purpose of government financial policy. In terms of fiscal policy, we should base on two fundamental factors: the reality and achievability -and to operate within these definitions, criteria of efficiency and uniqueness (certainty). Under the reachability hereafter we mean a fundamental criterion of completeness fulfill the purpose, in other words, the goal should be achievable within the planning horizon. Reality goal implies that it has the scientific and legal basis that would allow us to talk about its specificity. Defining the purpose of financial policy indicates its viability and relevance, ie, the unbiased forecast estimates and results.To the main objective of financial policy is to include ensuring full revenue sources of the process of production and distribution of public goods. From this perspective, R. A. Musgrave (Musgrave, 1987) notes that to the basic functions of government...