Akademik Məlumat İdarəetmə Sistemi
Economic and Social Development: 55th International Scientific Conference on Economic and Social Development, vol.4, pp.530-538, 2020 (Conference Book)
At present, analysis of the effectiveness of fiscal policy through optimization issues, research of the cause-effect relationship between macroeconomic indicators such as economic growth, revenues and budget expenditures, and the evaluation of a number of econometric models are necessary factors in political decision making. The necessity of these fields makes it important to research and analyze the effects of fiscal policy on the economy and therefore, the subject of the article can be considered actual. In order to examine the role of this macroeconomic phenomenon in the development of the economy and social welfare, the goals and objectives determined in the article have been consistently analyzed. Although the initial signs of the "2008 global financial crisis", which caused great losses in the world economy, were felt in the banking system, they also caused significant losses in fiscal structures. The next global economic crisis, which began mainly with the problems in the political relations of the world's leading countries and formed in late 2014, has created very difficult conditions in the fiscal environment of the states. These negative shocks in the world oil market have affected the economy of Azerbaijan and led to a several-fold decrease in the strategic foreign exchange reserves of the Central Bank of the Republic of Azerbaijan. In the article, the existing international experience of governments on fiscal policy frameworks has been analyzed and the effect of changes in budget expenditures in Azerbaijan on non-oil GDP for the period 2005Q1-2017Q3 has been assessed. As a result of the analysis, it has been elucidated that the Russian Federation, the Republic of Lithuania and Latvia, from the post-Soviet countries, chose a wider fiscal policy course during 2000-2017 years. After the 2008 global financial crisis, in post-soviet countries other than Azerbaijan, Moldova, the Russian Federation and the Kyrgyz Republic, financial spending declined for several years. As a result of econometric assessments, it has been determined that in the short term, a 1 percent increase in the current price of state budget expenditures led to a 0.36 percent increase in non-oil GDP, while in the long term, a one percent increase in state budget expenditures led to a 0.69 percent increase in non-oil GDP.