Characteristic features of the federal state economic function content (considering economic function of the Federal Republic of Germany)
Characteristic features of the federal state economic function content (considering economic function of the Federal Republic of Germany)

Summary/Abstract: The purpose of the study is to develop theoretical principles concerning the content of the economic function of amodern federal state. The economic policy of the Federal Republic of Germany in terms of state budget stabilization as one of theobjectives of sustainable development is considered as the main element of the economic function and the form of the federalstates’ competence. The main types of the competences (rights and obligations) of the German federated states in financial andbudget sphere are studied. On the basis of the conducted study, it can be concluded that the current legislation does not allowthe federal states to fully implement their tasks. Introduction of the amendment called «debt brake» at the federated states levelis a preventive measure aimed at initiating well-timed corrective actions to balance the budget. However, its implementationeffectiveness in terms of solving the problem of budgets consolidation remains low due to the absence of the regulations providinga specific procedure for its implementation in German Federal Laws.

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