Determinants of Social Component in Russian Federation Budget

Social expenditures are an important part of the state budget. Social expenditures are determined not only by the influence of the state, but by the one of external factors. Nevertheless, there is an insufficient number of relevant research papers in this area. The majority of studies based on the Russian Federation data is theoretical and have not got an empirical evidence. This research paper will help to identify what factors may have an impact on the social component in the state budget. The study will be based on the data of the Russian Federation. The share of social policy spending is chosen as a dependent variable which reflects the social component in the structure of the budget. Several models will be constructed using the Ordinary Least Squares method, the variables will be presented as time series. In addition, as part of this study the results of this work will be compared with the ones of existing studies. This will help to answer the question: are the determinants of the social component in the western countries budgets applicable to Russian data?