State Protectionist Policy for Balancing State Budget and Balance of Payments

If there is a long-term deficit in the country of the state budget and trade balance, which has a negative impact on the welfare of the nation, the budget sequester should be not implemented by significantly reducing the planned amount of budget expenditures, in particular social programs to curb consumer demand. The budget should be balanced by reducing the tax burden on small and medium-sized businesses. Seignorage - inflationary financing of the budget - causes a stratification of society for income, loss of value of the national currency, deficit of the payments balance, increase of the country debts. Foreign economic relations require the use of a scientifically sound protectionist policy of the state, a reduction of the open economy.