Free Economy Institute
Reduction of budget expenditures

Two basic scenarios of working with budget expenditures are considered:

  1. Scenario "Soft Transformation." It is based on an increase in all current government spending on inflation. And the costs of the basic functions of the state - defense, courts and public safety - increase annually in proportion to GDP growth.
  2. Scenario of Active Reforms. It is based on the implementation of all structural reforms of the public sector, reflected in this document. At the same time, part of the budget expenditure items remains unchanged, but the costs of these items increase by inflation. The expenses of the second group of articles also remain unchanged, but increase in proportion to GDP growth. The third part of the expenditure items is completely reduced at the very beginning of the reform. The costs of the fourth part of the articles are reduced annually during active reforms.