Page 89 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 2, 2013, pp. 80-98

state regulator does not have this assessment, it is not perceived by the population as a benefit.

The consequence of this situation is “lost profits” and “lost result”, not to achieve that result on
which authors calculated SLR .

the need for the formation of political-economic, macro-economic, financial, credit and

other conditions to ensure optimum standards of behavior of participants in the relevant
circumstances. As a member of the WTO, for example, the Russian Federation had to agree a set

of conditions with each of the 155 countries participating in the organization. After the entry , it
is necessary to update and change laws, the conditions and mechanisms of state relations with

the national and international business in the field of insurance and bank lending. Finally, the
government has to limit help to agriculture and some other industries in accordance with the

regulatory recommendations of the WTO.

the need to compensate for market agents and the public costs and limitations by the
implementation of SLR. The forms and mechanisms of compensation may be different in size

and in duration, and the procedure for their implementation. A typical example of this need is a

problem to improve the existing legislation of the Russian Federation in the sphere of federal
relations and budgetary basis for the development of regions and municipalities.

The need for a “just legal regulation” of federal and intergovernmental relations is a long
process and lively discussed at all levels of the power vertical. But the measures are limited in a

whole by compensation of chronic shortage of budgets, grants, subsidies and transfers to fund
socially relevant articles to regions and municipalities. Not accidentally, the budgetary arrears of

regions and municipalities is growing fast and at 2, or even more times is more than the annual

budget in some regions [Ilyin V.A., Povarova A.I. 2013.p.8-15].
Experts offer different models of modernization and renovation of federal budget

relations between the participators. In this case, it is understood that it is necessary for social
development not to increase the number of laws, but a serious increasing the quality of SLR.

These suggestions and models with a certain degree of conditionality can be grouped in two
ways. On the one hand, the proposals address the conformity of SLR standards and requirements

of the Constitution of the Russian Federation. State regulators are not intended to expand and

deepen the contradictions of the Constitution of the Russian Federation, and to ensure consistent
implementation of its socio-political and socio-economic basis for action by all levels of

government , market structures and population. On the other hand – SLR are designed to

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