Academic journal article European Research Studies

Modernization of the Approach to Usage of Region's Budget Resources in the Conditions of Information Economy Development

Academic journal article European Research Studies

Modernization of the Approach to Usage of Region's Budget Resources in the Conditions of Information Economy Development

Article excerpt

Introduction

With aggravation of economic crisis, the problem of budget deficit in Russia's regions grows. Ineffectiveness of the traditional approach to the usage of region's budget resources, which supposes the closed discussion of the variants of their usage and directive decision making, becomes more obvious. A working hypothesis of this research consists in the fact that the traditional approach to the usage of region's budget resources hinders the process of the information economy development in the regions of modern Russia.

It should be replaced by a modern approach, which allows involving into the discussion of budget issues all interested parties. The tools for this are provided by the current informatization of the Russian society. The purpose of this article is to substantiate the necessity and to develop recommendations for modernization of the approach to the usage of region's budget resources in the conditions of the information economy development.

Literature Review

Theoretical approaches to the usage of region's budget resources are viewed in the publications (Ragulina and Kamaev, 2013; Brownlow, 2016). The applied aspects of realization of these approaches are reflected in the studies of such experts as (Miller et al., 2016; Dalyevska, 2016; Sazonov et al., 2013). The concept of the information economy is formulated in the works (Romanenko and Kravets, 2013; Sun et al., 2017). The practical experience of its development is described in the materials (Nalivaychenko and Kirilchuk, 2016; Anic et al., 2016).

Methodology

Based on the studied literature, information economy is defined as an economic system in which information is the most valuable resource and in which the technologies are used which allow managing the information with high effectiveness for achievement of the maximal profit for the society. Usage of region's budget resources in the conditions of the information economy development supposes that information on the budget process is generally accessible and can be used by all interested parties for participation in this process.

The methodological provision for substantiating the offered hypothesis includes the specially developed method of evaluating the effectiveness of usage of region's budget resources from the positions of the information economy development. Such evaluation is to be performed with the following formula:

[E.sub.budg-inf(year)] [(Iis+Ieg+Iin)/3]/Edee (1)

where [E.sub.budg-infyear])--indicator of effectiveness of usage of region's budget resources from the positions of the information economy development in the set year;

Iis--yearly growth of the index of information society; Ieg--yearly growth of the index of e-government; Iin--yearly growth of the index of involvement of society and business into the budget process;

Edee--yearly growth of the total volume of region's expenditures for development of information economy.

As is seen from Formula (1), to ensure comparability, objectivity, and authenticity of the data used for calculations, relative, not absolute, indicators are used. Evaluation of effectiveness is performed with a classic method, by finding the ratio of the effect, expressed in the direct average of the results of the information economy development, to the expenditures for its achievement--i.e., expenditures for information economy development.

All intermediary indicators are measures in shares of 1. The value of the final indicator of effectiveness of usage of region's budget resources from the positions of the information economy development in the set year is treated in the following way. If it is below or equals 1, it shows low effectiveness; if it is in the interval 0-2, it shows medium (acceptable) effectiveness; if it exceeds 2, it means that effectiveness of usage of region's budget resources from the positions of the information economy development is very high. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.