FISCAL POLICY AND EFFICIENCY OF THE RUSSIAN ECONOMIC SYSTEM

In Russia, demand inflation persists with an excess cash overhang, which is credited to deposit accounts in banks. The fiscal policy of the country does not adjust the economy to high efficiency and social justice. Distribu-tive relations are needed. Direct taxes affect the pricing strategy of a business, while indi-rect taxes provoke inflation. The fundamen-tal disadvantage of the immature market as a spontaneous regulator aimed at maximiz-ing unit profit and profitability, and not at maximizing the physical volume of sales, and capacity utilization is confirmed. The tax system brings to the fore the fiscal function of taxes, and does not perform a stimulating one. It should be taxed to stimulate the creation of business conditions characteristic of a competitive market.