Economics of the public sector and economics of the public administration sector.
Composition of the public sector of the economy by organizational and legal forms
1.4 Models of the public sector of the economy:
The concept of the state and municipal sector of the economy, its structure
The dialectics of the development of society is associated with its dual nature. WITH On the one hand, these are the relations of society with a person, on the other hand, the relations of society with the state. The economy of the public sector combines state regulation of social and human institutions. System feedback state, society and individual is one of the most complex theoretical and practical problems of increasing the efficiency of the public sector. It is not man who exists for the state, but the state for man.
Economics of the state and municipal sector - fundamental science, which means that its methodology is based on objective universal laws, perceived from the standpoint of dialectical development. Public sector economics is studied at the intersection economic theory, applied economics, sociology, political science and psychology.
Theoretical basis of the course is a combination of political economy, institutionalism, micro- and macroanalysis, world economics, public sector economics foreign countries. This is especially important, since in the context of globalization, the economy of the public sector in Russia and other countries preserves its historical traditions in the relationship between the state, society and people.
Subject of study of economics of the state and municipal sector- the role and functions of the state and municipalities as economic entities of a market economy, interaction with other economic entities within the country and abroad. The economic activity of the state and municipal sector as a whole, at the federal, regional and municipal levels, as well as by industry and type of economic activity, is subject to consideration.
The most important objectives of the course in economics of the state and municipal sector:
Justification of the need for the development of the state and municipal sector in a market economy;
Theoretical justification for the need for government intervention within microeconomics from the standpoint of efficiency and fairness;
Familiarization with the theory of public choice, identifying problems and difficulties of state regulation of the economy;
Familiarization with the instruments and mechanisms of government intervention in the economy.
Main questions, considered by the public sector economy, are:
The influence of the sector on the standard of living and living conditions of the population based on production and provision of services on a non-market basis, social payments and use of other tools;
Formation of income, expenses and property state and municipal sectors;
Influence economic policy and economic activity of the public sector on other participants in economic activity and their economic behavior;
Production of goods and services by the public sector on a commercial basis.
Market economy any country is a mixed economic system , consisting of the most important sectors – private and public. Variety of types mixed economies, which arose as a result of the historical peculiarities of the formation of statehood, national mentality and other factors, led to ambiguity in approaches to the interpretation of the concept of “public sector”. Two approaches are most widespread.
The public sector is the totality of economic resources at the disposal of the state and public organizations (including local governments). It represents a part of the economic space in which:
1. the market does not operate or operates only partially, and therefore, a non-market method of coordinating economic activity, a non-market type of organizing the exchange of activities predominates;
2. public, rather than private, goods are produced, distributed and consumed;
3. economic equilibrium between demand and supply of public (collective) goods is ensured by the state, local governments and voluntary public organizations with the help of appropriate social institutions, primarily through fiscal policy.
In the public sector production is underway economic benefits special kind - public goods. Between the market and public sectors of the economy, between the state and economic agents, exchanges of activities and flows of economic benefits arise. The public sector plays an active role in the circulation of income, resources, goods and services.
Because the public sector is dominated by government activities, it is often referred to as public sector. This identification of the public and state sectors is to a certain extent acceptable.
The purpose of the functioning of the public sector (through mechanisms for implementing the stabilization function, as well as the functions of distributing resources and income) is the formation of a single socio-economic space in a certain territory.
The public sector includes three subsectors:
state,
voluntary public
mixed.
On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, and on the other, there is an adjacent zone within the public sector between the state and voluntary public subsectors.
The public sector of the economy: understanding in a narrow and broad sense. First of all, it must be said that there is no unified approach to defining and isolating the public sector into an independent concept. There are discrepancies here that have target and national specifics. In this regard, at present we can talk about two interpretations of the public sector: in narrow And in a broad sense. Let's look at the first aspect first.
When determining the essence of the public sector, as a rule, they proceed from the fact that it is the most important component national economy. Wherein distinguishing feature public sector of the economy is the ability of the state to implement direct And operational management of economic entities included in its composition. The management of economic entities in the public sector of the economy is carried out government agencies authorities through their representatives participating in the formation of the strategy and tactics of public sector enterprises.
Methodological basis definition of the public sector is the concept administrative and economic management legal entities (business entities). Administrative and economic management refers to the influence on the part of the manager (head of the legal entity) on the activities of the legal entity, aimed at achieving the set goal as quickly as possible. Based on this concept, the definition of the public sector is formulated:
Narrow interpretation of the “public sector”" - the public sector of the economy should be understood as a set of legal entities (economic entities), the administrative and economic management of which is carried out by the state through the federal and regional authorities of the country. The public sector is supposed to represent the interests of members of society, which is why it is commonly called the public sector.
Broad interpretation of the “public sector”» - the public sector refers to the totality economic resources owned by the state, all organizations with the help of which government regulation economy. This is the economic budget, state organizations in the field of management, healthcare, education, defense, government manufacturing enterprises, state lands, mineral reserves.
1. Subject and methods of economics of the state and municipal sector.
Economics subject state and municipal sector - formation and use of resources of the state and municipal sector and the influence of the state and local authorities on economic situation and the behavior of firms and households.
Methods for researching the economy of the state and municipal sector
A research method is understood as a set of techniques and ways of understanding processes economic phenomena and events
Classification of research methods:
General scientific. Among them are:
Theoretical
A) methods-operations: analysis, synthesis, induction, deduction, analogy, abstraction, concretization, generalization, formalization, modeling
B) action methods: dialectical methods, problem posing, hypothesis building, proof
Empirical methods:
A) operational methods: literature review, analysis of documents and materials, observation, measurement, survey, expert assessments, testing.
Methods of action: tracking objects (monitoring, studying and summarizing experience), transforming objects (experiment, experience)
2) Private scientific research methods: Economic observation, Economic experimentation, Economic modeling, Economic induction, Construction of economic hypotheses, Historical analysis of economic phenomena, etc.
3) Interdisciplinary research methods are a set of integrative methods aimed at implementing complex scientific programs.
Research methods most often used in the economy of the state and municipal sectors:
Traditional methods of formal logic
Method of theoretical generalization and formalization
System method
Structural-functional method
Method of modeling and systematization
Historical and evolutionary research methods
2. Signs of the state as a market subject.
As a market subject, the state is characterized by 3 characteristics:
Regulatory entity
In modern conditions, non-interference of the state in socio-economic processes is impossible, practically excluded. Uncontrolled market processes are destructive both for society and for nature. Therefore, a market economy, more than any other, needs regulation. The role of a regulatory center can only be performed by the state represented by the government, because it is an institution that represents the entire society and has the right of non-economic intervention in economic relations. Now the debate is not about the need for government regulation, but about its scale, forms and intensity. The problem is generated by constant changes in the economy, requiring corresponding changes in the scale and instruments of government regulation.
2.Non-market origin of government income.
A market subject is an economic entity that receives fixed income and at the expense of which he carries out his expenses. Consequently, the state is included in the economy to the extent that it has income. However, the subtlety here is that the nature of government income is unique. If we exclude the limited sphere of state entrepreneurship, then state income arises mainly as a result of non-economic actions, i.e. as a consequence of the redistribution of part of the income of primary market subjects (households, firms) in favor of the state.
This allows the state to be qualified as a secondary or derivative market entity, economic strength which is entirely dependent on the private business that feeds the state.
Consequently, state income is not a third independent element along with the income of households and firms, not a special component of social income, but a forcibly isolated part of primary market income created without the state, and often in spite of the state.
This is why perhaps no one is as interested in the growth of income of firms and households as the state. Because their income is the only source of tax income for the state.
3.Imperative status of the state(from the Latin “imperative” - imperative)
The state is the only entity in a market economy whose requirements are binding on all non-state entities. However, this responsibility is vital to the free enterprise system, because creates uniform rules of behavior for all market entities. Imperativeness gives state revenue a mandatory character. The main mechanism of economic intervention.
MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
FSBEI HPE Ural State Economic University
Economics of the state and municipal sector
Direction of training
State and municipal administration
Graduate qualification (degree)
bachelor
Compiled by: Uzhegova A.M., Ph.D., Associate Professor
Ekaterinburg
The purpose and objectives of studying the discipline
The goal of the discipline “Economics of the state and municipal sector” is to form students’ basic professional knowledge, practical skills and abilities in the field of economics of the public sector, necessary in the activities of public authorities to solve specific problems.
Achieving this goal is ensured by solving the following tasks:
- Introducing students to the basic concepts, tools, latest theories and approaches in the field of public sector economics.
- Training in analytical approaches to the study of patterns of development and functioning modern state and society.
- Formation and development of students' practical skills in the field of analyzing the activities of the public sector and non-governmental non-profit institutions.
- Implementation of the ability to respond as quickly and adequately as possible to continuous changes in the current socio-economic situation.
Topics of the discipline and their summary
Topic 1. general characteristics economics of the state and municipal sector
General characteristics of the economy of the state and municipal sectors. The concept, boundaries and scale of the economy of the state and municipal sector. The main activities and public goods provided by the public sector of the economy. General concept of public sector finance.
People are the basis of the economy of the state and municipal sectors. Man as a subject of economy and society. The relationship between the interests of man, society and the state. Social expenditures: goals, sources, ways of financing. Indicators of human development in the public sector economy.
Economic fundamentals political mechanism in the public sector. Institutes government controlled. The need and main characteristics of the political mechanism in the public sector. Voting as a way of making collective choice. Articulation and aggregation of interests in the political mechanism of public choice. Political mechanism of adoption government decisions. Failures of the state as a regulator of the public sector. Administrative reform and local government reform.
Voting as a way of making collective choice. Articulation and aggregation of interests in the political mechanism of public choice. Political mechanism for making government decisions. Failures of the state as a regulator of the public sector. Administrative reform and local government reform.
Topic 2. Functioning of the economy of the state and municipal sector
Market failures and public goods. The most important types of market failures. Public goods, their properties and typology.
Equilibrium in the public sector. Theoretical foundations of economic equilibrium. Varieties of equilibrium in the public sector
The mechanism of functioning of the public sector. Public Sector Resources. System communications of the public sector.
Human needs and interests as a factor in the development of the state and municipal economy. Employment, motivation and income in the public sector. The role of the state in regulating processes in the labor market. Infrastructure of state regulation of the labor market and its functions. Non-state structures for promoting employment. Managing the motivation of organizational employees to work. Priority directions and principles of regulation wages at the industry and regional level. Income from capital as property of capital as a function. The impact of income policy implementation practices in the public sector on similar issues in the private sector of the economy.
Pricing in the public sector and government price policy. Prices in the national economic system. The formation of market pricing in Russia: features and problems. Three price categories in a two-sector economy. Peculiarities of pricing in the public sector. State price policy as a means of increasing the efficiency of social production.
Self-study questions
Three price categories in a two-sector economy. Peculiarities of pricing in the public sector. State price policy as a means of increasing the efficiency of social production.
Topic 3. Social functions of the state and municipal sector
Social potential of the state and municipal sector. Features and reproductive role of social needs in the main sectors of the public sector. Mechanisms for realizing social needs in the main sectors of the public sector.
The role of the state and municipal sector in population reproduction. Studying the family in economic science. Socio-economic functions of the family. Socio-demographic needs of the family and social need for population reproduction. The essence, goals and measures of social demographic policy. Structure of demographic policy resources. Support for families with children. Problems of the effectiveness of demographic policy.
Public health is the main indicator of the well-being of the people. Public health and economics. The quality of public health in modern Russia.
Social protection of the population. Directions and forms social protection. Social transfers. Social insurance And pension provision. System health insurance. Social insurance financing.
Self-study questions
System of socio-economic support for families with children. Sources of funds for socio-economic support for families with children. Main types of benefits for families with children during the period of market reforms. Maternity benefit. One-time benefit for women registered with medical institutions V early dates pregnancy. One-time benefit for the birth of a child. Monthly allowance during the period of parental leave until the child reaches the age of 1.5 years. Monthly child benefit. Tax benefits.
ANNOTATION
The textbook is an electronic version of the book:
Economics of the state and municipal sector. Textbook / Alekhine E. V. Penza, 2010.
Introduction
Topic 1. Theoretical foundations public finance.
Topic 2. Economic functions states.
Topic 3. State and municipal sector economy.
Topic 4. State financial policy Russia.
Topic 5. Financing and production in the public sector.
Introduction
The modern system of public financial management is the result of the long-term development of state institutions. Past
century, and especially the post-war period, were characterized by a significant expansion of the public sector in countries with market economies, which in its growth outpaced the dynamics of the private market sector, which was due to the increasing complexity government functions, the use of new methods of macro- and microeconomic regulation aimed at compensating for “failures” of the market mechanism.
Currently, many highly developed countries use new forms of budget planning, budget execution and evaluation of the results of public finance management, have modern systems budget accounting And financial statements, institutions of external and internal audit, liquidity management and state (municipal) debt, contractual relations and competitive selection of suppliers are widely used public goods and services. A huge number of guidelines prepared by national and international organizations are devoted to the introduction of best practices and modern methods of public financial management. They proceed from the fact that despite all the differences between public finance management systems different countries There remains significant similarity between them in the formulation of fundamental management problems and their solution. This makes it possible to formulate general principles, standards and best management practices that can be successfully implemented in developing countries and countries with economies in transition.
Given tutorial dedicated general issues theory of the public sector and public finance, evolution, organization and functioning of the public sector, principles of budgetary structure and modern trends decentralization of fiscal powers, as well as the main methodological sources that promote the dissemination of best practices in public financial management.
The first topic presents short review theoretical ideas about public finance as part of the economy of the public sector, a description of the main theories relating to taxation, the provision of public services, and financial relationships between authorities at different levels is given. It addresses the following questions: What are the specific features of public goods? Why does the government have the task of providing public goods and services? What ways might there be to provide public goods and services? Does the state necessarily have to produce public goods itself, or can they be produced in the private sector? The answers to these questions largely determine the scale of the public sector, the nature and mechanisms of public financial management. Thus, the involvement of non-state enterprises in the production of public goods and services contributes to the reduction of the public sector, the development of contractual relations and a significant change in the functions of public authorities, which have to acquire corporate governance skills that are unusual for them.
The second topic begins with a definition of government functions, an analysis of the evolution of the role of the state in a market economy and the characteristics of government functions in conditions transition period. Since the most important instrument of government influence on the economy is the state budget, the analysis then shifts to issues related to the formation and functioning of state budgets. The dynamics of government expenditures in the post-war period, factors influencing the growth of budget expenditures, the structure state budgets leading countries of the world in comparison with Russia.
This leads to the important issue of defining the boundaries of the public sector and its subsectors at various levels of government. The textbook analyzes the recommendations of international statistical systems on the formation of the public sector based on the inclusion of institutional units that meet certain criteria. These recommendations are widely used in many countries of the world, which adapt the general principles of international statistics to the peculiarities of national economics and law. Assessing the scale of the public sector is a prerequisite for organizing the management of public finances and the implementation of government functions. On this basis, in particular, it is determined financial opportunities states to provide public goods and services.
Analysis of government functions, determination of the scale and boundaries of the public sector, features of public goods and services and methods of their provision, which are the subject of research in the first section, are of great importance for understanding the mechanisms of public financial management. The state provides regulatory legal regulation economy, provides public goods, redistributes income between individuals, has a stabilizing effect on the economy and financial system, promotes economic growth. The implementation of these functions is carried out primarily on the basis of the formulation public policy and public financial management. The goals of public policy determine the choice of forms and methods of regulation, fiscal instruments and technologies necessary for the implementation of functions. Yes, staging long-term goals, as a rule, requires the use of multi-year budget planning techniques, results-based budgeting, special debt management techniques, etc.
At the same time, public finance management in almost any country is carried out on the basis of the distribution of fiscal powers and the interaction of various levels of government. In turn, character budget device and interbudgetary relations largely determine the effectiveness of the implementation of government functions. Finding the optimal balance between centralized and decentralized control is one of the central tasks in any national system public finance management.
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TOPIC 1. PUBLIC SECTOR IN A MODERN MIXED ECONOMY
Subject of economics of the state and municipal sector
The dialectics of the development of society is associated with its dual nature. WITH On the one hand, these are the relations of society with a person, on the other hand, the relations of society with the state. The economy of the public sector combines state regulation of social and human institutions. The feedback system of the state, society and people is one of the most complex theoretical and practical problems of increasing the efficiency of the public sector. It is not man who exists for the state, but the state for man.
Public sector economics is a fundamental science, which means that its methodology is based on objective universal laws, perceived from the standpoint of dialectical development. Public sector economics is studied at the intersection of economic theory, sociology, political science and psychology.
Theoretical basis of the course is a combination of political economy, institutionalism, micro- and macroanalysis, world economy, and public sector economics of foreign countries. This is especially important, since in the context of globalization, the economy of the public sector in Russia and other countries preserves its historical traditions in the relationship between the state, society and people.
Subject of study of public sector economics- the role and functions of the state as an economic entity in a market economy, interaction with other economic entities within the country and abroad. The economic activity of the public sector as a whole, at the federal, regional and municipal levels, as well as in the context of industries and types of economic activity, is subject to consideration.
The most important objectives of the public sector economics course:
Justification of the need for the development of the public sector in a market economy;
Theoretical justification for the need for government intervention within microeconomics from the standpoint of efficiency and fairness;
Familiarization with the theory of public choice, identifying problems and difficulties of state regulation of the economy;
Familiarization with the instruments and mechanisms of government intervention in the economy.
Main questions, considered by the public sector economy, are:
The influence of the public sector on the standard of living and living conditions of the population based on the production and provision of services on a non-market basis, social payments and the use of other instruments;
Formation of income, expenses and property of the public sector;
The influence of economic policies and economic activities of the public sector on other participants in economic activity and their economic behavior;
The production of goods and services by the public sector on a commercial basis.
The market economy of any country is a mixed economic system, consisting of the most important sectors – private and public. The variety of types of mixed economies, which arose as a result of the historical characteristics of the formation of statehood, national mentality and other factors, led to ambiguity in approaches to the interpretation of the concept of “public sector”. Two approaches are most widespread.
The public sector is the totality of economic resources at the disposal of the state and public organizations (including local governments). It represents a part of the economic space in which:
1. the market does not operate or operates only partially, and therefore, a non-market method of coordinating economic activity, a non-market type of organizing the exchange of activities predominates;
2. public, rather than private, goods are produced, distributed and consumed;
3. the economic balance between demand and supply of public (collective) goods is ensured by the state, local governments and voluntary public organizations with the help of relevant social institutions, primarily through fiscal policy.
In the public sector production of economic goods of a special kind is carried out - public goods. Between the market and public sectors of the economy, between the state and economic agents, exchanges of activities and flows of economic benefits arise. The public sector plays an active role in the circulation of income, resources, goods and services.
Because the public sector is dominated by government activities, it is often referred to as public sector. This identification of the public and state sectors is to a certain extent acceptable.
The purpose of the functioning of the public sector (through mechanisms for implementing the stabilization function, as well as the functions of distributing resources and income) is the formation of a single socio-economic space in a certain territory.
The public sector includes three subsectors:
state,
voluntary public
mixed.
On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, and on the other, there is an adjacent zone within the public sector between the state and voluntary public subsectors.
The public sector of the economy: understanding in a narrow and broad sense. First of all, it must be said that there is no unified approach to defining and isolating the public sector into an independent concept. There are discrepancies here that have target and national specifics. In this regard, at present we can talk about two interpretations of the public sector: in narrow And in a broad sense. Let's look at the first aspect first.
When determining the essence of the public sector, as a rule, they proceed from the fact that it is the most important component of the national economy. At the same time, a distinctive feature of the public sector of the economy is the ability of the state to implement direct And operational management of economic entities included in its composition. The management of business entities in the public sector of the economy is carried out by state authorities through their representatives who participate in the formation of the strategy and tactics of the activities of public sector enterprises.
The methodological basis for defining the public sector is the concept administrative and economic management legal entities (business entities). Administrative and economic management refers to the influence on the part of the manager (head of the legal entity) on the activities of the legal entity, aimed at achieving the set goal as quickly as possible. Based on this concept, the definition of the public sector is formulated:
Narrow interpretation of the “public sector”" - the public sector of the economy should be understood as a set of legal entities (business entities), the administrative and economic management of which is carried out by the state through the federal and regional authorities of the country. It is assumed that the public sector is intended to represent the interests of members of society, therefore it is usually called the public sector.
Broad interpretation of the “public sector”“- the public sector is understood as the totality of economic resources owned by the state, all organizations through which state regulation of the economy is carried out. This includes the economic budget, government organizations in the field of administration, healthcare, education, defense, state-owned production enterprises, state lands, and mineral reserves.
1.2. Economics of the public sector and economics of the public administration sector.
Modern economics is mixed. Economic activity it is carried out by the public (public) sector, as well as private non-financial enterprises, financial, credit and other organizations, often united general concept « private sector" The economy of the public (state) sector itself is also mixed. The components of the public sector are the general government sector and enterprises owned or controlled by the state, but classified according to the generally accepted division of the economy into economic sectors as non-financial and financial corporations . The basis of the public sector is the public (government) management sector, in relation to which public finances are also formed. Let's consider its place in the system of economic sectors of the economy.
Currently, when making forecasts of socio-economic development, forming finances, principles of constructing statistics and economic analysis the boundaries of economic sectors are determined in accordance with the system of national accounts, which is accepted all over the world. Thus, unified approaches to the study of the economics of the public sector and the economics of other sectors are provided. In the System of National Accounts adopted by the United Nations in 1993, the general government sector is identified as one of the economic sectors.
According to this system, economic entities of the country ( institutional units), owning and managing assets and entering into economic relations with other economic entities, in accordance with the functions they perform and methods of financing costs, are united into five institutional sectors of the economy:
The sector is not financial corporations;
Financial Corporations Sector;
Public Administration Sector;
Household sector;
The sector is not commercial organizations servicing households (NPISH).
Each of these sectors includes corresponding institutional units. Under institutional unit refers to an economic entity (economic unit) that owns and manages assets on its own behalf, accepts liabilities, enters into economic transactions with other institutional units, and prepares a full set of accounts, including a balance sheet of assets and liabilities. The following are accepted as economic entities: legal entities(enterprises, government bodies, credit organizations, Insurance companies etc.), and households, since they are centers of adoption economic decisions. Business entities have economic resources in constant circulation.
Non-financial corporations include those located on economic territory countries are institutional units (corporations and quasi-corporations), the main function of which is the production of goods and non-financial services with the aim of selling them on the market and making a profit. Production costs are reimbursed from sales proceeds. This sector includes, in particular, industrial enterprises, Agriculture, construction, transport, communications, trade, etc.
The financial corporations sector includes institutional units whose main function is financial and credit activity - monetary authorities, banks, insurance companies, non-state pension funds and other institutions engaged in financial intermediation.
Non-profit organizations serving households (the population) include public non-profit organizations that provide non-market services to households. This public organizations, including political parties, trade unions, religious organizations, various kinds of societies, unions and associations, as well as meeting needs in the field of education, healthcare, culture, etc. They are funded by member dues, donations and property income.
The household sector unites individuals or groups of people living together and sharing a common budget. Households manage their resources, have assets and liabilities, and engage in economic activity. These include households of employed persons, households of entrepreneurs, households of the self-employed (persons of liberal professions, owners of small unincorporated farms, family shops, cafes), households of persons living on transfers (pensioners, students). This is a sector that mainly consumes goods and services and produces them for its own consumption and sale.
Public Administration Sector. The public administration sector includes institutional units entitled to legislative, executive and judicial power in the territory of the country or its parts.
Main functions of the general government sector are:
Providing policy and regulatory activities;
Providing goods and services on a non-market basis for their collective or individual consumption by members of society;
Also redistribution of income and wealth through transfers and subsidies. This predetermines its role as the basis of the public sector, its leading element. Respectively, The economy of the state (public) sector is the central link in the economy of the state (public) sector.
The public (public) sector is a broader concept than the government sector. It brings together the general government sector and government-owned or controlled enterprises and organizations that, like private sector enterprises, produce goods and services based on commercial activities and being an integral part of the non-financial and financial corporations sectors.
1.3 Composition of the public sector of the economy by organizational and legal forms:
State unitary enterprises;
State (budgetary) institutions;
Joint stock companies, in the authorized capital of which controlling stake voting shares (more than 50%) are in state ownership (federal and/or constituent entities Russian Federation);
Subsidiaries, the main (parent) company of which belongs to the public sector;
Enterprises included in the holding, the parent company of which belongs to public sector;
Joint-stock companies, in the authorized capital of which a controlling stake of voting shares (more than 50%) is owned by the state unitary enterprises;
Enterprises in the authorized capital of which there is a “golden share”, which is in the hands of the state.
Main activities of the public sector economics:
Providing public goods;
Redistribution of income and wealth and provision of social assistance to the population;
The production and sale of goods and services on a commercial basis by government-owned or controlled enterprises.
Due to its special role, the state can also influence the economic behavior of business entities through the adoption of legislative and other regulations, taxation, subsidies and other measures to regulate economic activity.