Cross-country Analysis of the Share of Budget Revenues and Expenditures in GDP

This paper examines the share of revenues and expenditures from the GDP of the budgets of the countries of the world. The purpose of the work is to assess the standard of living as a factor influencing income and expenses, as well as to assess the impact of changes in the shares of income and expenses on economic growth. Particular attention was paid to Russia. Firstly, qualitative methods were used in the form of analysis of scientific literature and research already carried out; secondly - quantitative - an analysis of the statistical data of international organizations will be carried out. According to the results of data analysis, including the calculation of the construction of graphs of dependence and the calculation of correlations, the most important factor affecting the shares of income and expenditure is the level of development, expressed in this study as GDP in PPP per capita. Analysis of the data and review of studies also showed the presence of other factors. Conclusions were drawn regarding the influence of the shares of budget revenues and expenditures in the countries' GDP on economic growth. Expenditures can affect the economic in different ways, depending on their type and the optimal level of spending. Most researchers distinguish productive and non-productive costs, speaking of the positive impact of the former. Much also depends on the structure of expenditures, the efficiency of spending, the stage of the economic cycle, the openness of the economy, the exchange rate, the degree of government intervention, the size of the public debt, inflation, and the expectations of economic agents. The influence of the share of revenues is the amount of funds the state has to finance the planned expenditures.