in fact, the very subject matter of constitutional economics. Buchanan believes that a constitution, intended for use by at least several generations of citizens, must be able to adjust itself for pragmatic economic decisions and to balance interests of the state and society against those of individuals and their constitutional rights to personal freedom and private happiness. The Russian school of constitutional economics was created in the early 21st century with the idea that CE allows for a combined economic and constitutional analysis in the legislative, first of all, budget process, thus helping to overcome arbitrariness in the economic and financial decision-making and to open entrance to civil society into budget process. This model of CE is based on the understanding that it is necessary to narrow the gap between practical enforcement of the economic, social and political rights granted by the constitution and the annual (or mid-term) economic policy, budget legislation and administrative policies conducted by the government. In 2006, the Russian Academy of Sciences has officially recognized constitutional economics as a separate academic sub-discipline. Constitutional economics studies such issues as the proper national wealth distribution including the government spending on the judiciary, which in many transitional and developing countries is completely controlled by the executive. The latter undermines the principle of powers' “checks and balances”, as it creates a critical financial dependence of the judiciary. It is important to distinguish between the two methods of corruption of the judiciary: the state (through budget planning and various privileges – being the most dangerous), and the private. The state corruption of the judiciary makes it almost impossible for any business to optimally facilitate the growth and development of national market economy. See also public budgeting budget deficit budget surplus budget crisis Canadian federal budget Comprehensive income Constitutional economics Corporate finance Crony capitalism Form 10-K Federal Accountability Act (Canada) Government Accountability Office Government Accountability Office investigations of the Department of Defense Government-owned corporation public administration public finance United States budget process Civil society Notes References Henry C. Adams. The Theory of Public Expenditures (1985), American Economic Association. John R. Bartle. Evolving Theories of Public Budgeting (2001), JAI Press. Aman Khan, W. Bartley Hildreth. Budget Theory in the Public Sector (2002), Quorum BooksAman Khan, W. Bartley Hildreth. Frank R. Baumgartner, Bryan D. Jones, A Model of Choice for Public Policy (2005) Bartle, John R. and Patricia M. Shields., "Applying Pragmatism to Public