Macro-Economic Policies in CIS Member States

Abstract

Government budget in a transitional economy. The government budget is an account of public revenues and expenditures for a specified period, approved by legislative authority. Until the twentieth century, the government budgetary policy involved tax collection exclusively for the maintenance of the State machine, including defence, public security and foreign affairs. For the rest, classical economic science relied on automatic mechanisms of self-regulation in the market economy. However, economic crisis in the 1930s demonstrated that, though effective for small-scale commodity production, this mechanism was inadequate in modern, highly socialised industrial economies.