APPROACH TO ASSESSING THE IMPACT OF FISCAL POLICY ON SUSTAINABLE DEVELOPMENT OF THE RUSSIAN ECONOMY

Amid global sustainable development challenges and fiscal policy transformations, developing comprehensive methodologies for assessing government regulation effectiveness becomes particularly crucial. This study proposes a novel approach to measuring fiscal policy instruments’ impact on sustainable development of national economies, using the Russian Federation (2017–2023) as a case study. The primary objective is to create a composite index for quantitative evaluation of fiscal measures’ effectiveness in achieving sustainable development goals. The research employs advanced data normalization and weighted aggregation methods, integrating three key dimensions: economic (GDP dynamics, investment activity, industrial production), social (healthcare and education accessibility, inequality levels), and environmental (carbon footprint, energy efficiency) development. The study utilizes official statistical data from Rosstat, the Ministry of Finance, and relevant agencies. The results demonstrate differential policy impacts: strong correlation between social expenditures and quality of life (r=0.67), while environmental indicators show 2–3‑year response lags. The developed index enables comprehensive monitoring of policy effectiveness, identifies priority areas for budget adjustments, and accounts for impact time lags. The methodology provides quarterly assessment capabilities with an error margin of ±3.2%. Unlike existing approaches, the proposed methodology is specifically adapted for resource-based economies, considering their unique characteristics. Research prospects include further detailing fiscal impact mechanisms and developing recommendations for optimizing budgetary processes in line with sustainable development goals. The findings can significantly contribute to improving budget planning tools and evaluation frameworks for government programs in transitional economies. The study offers practical instruments for policymakers to balance short-term economic objectives with long-term sustainability targets.