Limited Opportunities for Financing Projects in the Field of Industry 4.0 and Combating Climate Change in the Regions of Russia in the Face of Budget Shortages

ABSTRACT

Purpose: the purpose of the research is to study the limited possibilities of financing projects in the field of industry 4.0 and the fight against climate change in the regions of Russia in the face of budget shortages amid the pandemic and the COVID-19 crisis, as well as to determine the optimal budget conditions for financing these projects. Design/methodology/approach: in order to determine the most accurate and reliable dependencies of the volume and financing of projects in the field of industry 4.0 and the combat against climate change on the balance of the regional budget, this research is carried out on the basis of two samples of regions of Russia, formed according to the criterion of the regional budget balance in the context of a pandemic and COVID-19 crisis in 2020 with a budget surplus and deficit. Findings: the results of the research showed that the financing of projects in the field of industry 4.0 and the fight against climate change in the regions of Russia, firstly, is significantly determined by the balance of the regional budget. Secondly, it is characterized by various laws financing of projects in the field of industry 4.0 is scarce both with a deficit and a budget surplus, and financing of projects in the field of combating climate change in the regions of Russia is scarce with a budget deficit and enough with a budget surplus. Originality/value differences in the conditions of optimal budget balances are justified with a zero regional budget balance, the point of optimal (deficit-free) financing of these projects is reached, and a confident regional budget surplus forms the zone of optimal financing of climate change projects in the regions of Russia. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.