State budgets functions in the national economic systems: methodological aspects

The article is aimed at reviewing the process of public finance theory development as a methodological base of the government functioning being an institution of the national economic system. As a result the author proved that the main government function consists of supplying public as well as semi-public goods. It was showed that the division of the tax income and the state expenses being the integrative system is the base of the state budget theory.

public finance, public goods, theory of tax shift, normative and positive economic theory, externalities, transaction costs