The Role of the Public Sector in Redistribution of the National Income in the 2010-s

Abstract

The paper considers the role of the public sector in distribution of national income. According to data from institutional accounts, the public sector has significant financial resources (including those from extra-budgetary activities), but the focus on accumulating financial reserves has led to deterioration of people’s living standards. The government sector has not fully used all channels of supporting the population during the period of decline and stagnation of real incomes. In particular, the volume of transfers in kind did not change in real terms, which forced the population to increase private spending on individual services. Thus, there is a need and opportunity to intensify growth of real population incomes and overall macroeconomic dynamics.