Budget and the budgetary system of the Russian Federation

Role and importance of the state budget in the national economy in a market economy. Revenues and expenditures of the state budget, their balance and execution problems. Intergovernmental relations: current situation, problems and their solutions.

Рубрика Финансы, деньги и налоги
Вид дипломная работа
Язык английский
Дата добавления 26.01.2014
Размер файла 114,8 K

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The emergence and growth of public debt necessitate management. Public Debt Management - is a set of financial activities of the state associated with the repayment of loans, interest payments organization on them, carrying conversion and consolidation of government loans.

Conversion and consolidation of public debt are important techniques used in the management of public debt.

Conversion of public loans involves changing their initial conditions, such as term, interest, etc. As a rule, governments seek to maximize the time to push the payment of arrears, so often reduced conversion to transform short-term loans to medium-and long-term liabilities. There are several methods of conversion, voluntary, compulsory and optional. When the owner of a voluntary conversion of public security can choose: either to accept the new conditions or extinguish paper. If forced conversion owner must agree to the new terms of the loan, while the optional conversion lender can either accept or refuse the new conditions. The conversion is usually carried out with an excess of loan capital and interest rate cut.

Consolidation of public debt made by the renewal of short-and medium-term loans, or by unifying previously issued short and medium-term loans into one loan. So formed as part of the consolidated debt of the total public debt through the issuance of long-term loans. This leads to the fact that relegated debt maturities. Repayment of the old public debt by issuing new loans is called refinancing.

Strategy in the management of public debt in 2002 and in the medium term remains the most important area of fiscal policy. It is aimed at mitigating the "peaks" of payments, improved debt structure and reduce the cost of maintenance. Main purpose of public debt management is to reduce the public debt and interest payments on its service.

Given the significant impact of the debt burden on the federal budget and the economy, debt management will be carried out within a single system. To improve the efficiency of public debt management, a unified debt management system, providing not only a system for accounting for all liabilities, but also the implementation of a unified strategy for public debt management both internal and external.

Public debt management system, taking into account the accounting issues, methodology, risk analysis, planning and management approaches will allow debt to borrow and payments under the most favorable conditions for the state.

Saving federal budget surplus in the coming year and the direction of the proceeds to repay the public debt creates a mechanism regulate the money supply and sterilization leads to a reduction of the debt burden of the state and thus improve its ranking as the host country and investments as of the borrowing country.

Formation debt policy for the year 2002 was carried out in view of overcoming the consequences of the crisis in August 1998. On the domestic debt market restored investor confidence in the government securities market, significantly decreased the yield of all traded on the securities market. Government borrowing placed on the domestic financial market, based on the yield, close to the inflation rate.

Policy of the Government of the Russian Federation in 2002 in the field of domestic debt will be on the following objectives:

- to borrow based on the needs of the budget, while adhering to the basic parameters of monetary policy;

- placing on the market of medium-and long-term government bonds;

- the introduction of new financial instruments and technologies designed to optimize the timing and profitability of borrowing, as well as protecting the interests of different groups of investors.

Policy on domestic borrowing is formed so as not to withdraw liquidity from the market to finance the non-interest expenses. Net domestic borrowing amount to 9.8 billion rubles next year. upon payment service payments of domestic debt - 57.9 billion rubles. Such policies will have a positive impact on the level of bank interest rates and cost of borrowing.

In order to reduce public external debt and, following a conservative policy of government borrowing during the period 2002-2003, the total amount of loans in foreign financial markets will be limited to $ 1 billion a year. While payments on external public debt in the coming year are provided in accordance with the original schedule, excluding restructuring. Borrowing from the International Monetary Fund in 2002 are foreseen. This approach, in contrast to previous years, allows to predict realistic external borrowings, regardless of the outcome of negotiations with creditors. In the coming year does not provide new loans also carry on related foreign loans.

Implementation of the planned fiscal policy will contribute to the reduction of public debt. Begun in 2000, the reduction of public debt will continue in 2002. At the end of 2002, total public debt amounted to 158.5 billion U.S. dollars, or 48.2% of GDP. In the coming three years the share of public debt to GDP will decline and reach the end of 2004 about 40% of GDP.

The magnitude of the public debt in 2002 and in subsequent years will have impact as a surplus budget policy and strengthening of the ruble, and real growth GDP.

Thus, the main directions of budgetary and tax policy for 2002 and the medium term, tailored to the goals of economic policy aimed at creating conditions for continued economic growth and improvement in real incomes.

The budget deficit in Russia

For more than two decades - since the end of World War II until the second half of the 60s - the Soviet economy was in a state of relative macroeconomic equilibrium. Conservative policy did not allow the emergence of a significant budget deficit, even in cases of acute scarcity of financial resources, and relatively high growth rates to provide the power to obtain sufficient financial resources for the implementation of priority projects. However, a significant slowdown in economic growth in the second half of the 60-ies considerably narrowed the financial base of the Soviet leadership, with a marked increase in the extent of its intentions (support for "fraternal" mode, creating a new generation of nuclear weapons, etc.). since the beginning of the 70s became clearly manifest the symptoms with fiscal imbalances. Over time, the budget deficit began to grow. Its forms was, in particular, hidden inflation. Officially, the state budget with a deficit in the USSR was first enacted in 1988. The main causes of budget deficits in the USSR, according to analysts, steel [5, p. 282]:

· fall in the rate of growth of production;

· presence of a large number of loss-making enterprises;

· large defense spending and military-industrial complex;

· huge scale under construction and excessive stocks;

· inefficient planning system of economic management;

· reduction in oil export revenues due to falling world prices in 1986;

· huge loss of income due to the anti-alcohol campaign (in 1985 budget lost 5% of its revenues, and in 1986 - 10%);

· increased costs associated with the liquidation of consequences of the Chernobyl disaster in 1986 and the earthquake in Armenia in 1988.

With the collapse of the USSR, changing economic and political course and the beginning of economic reforms in the early 90s undergoing fundamental changes in the financial and fiscal system of the country. For the same reasons, the budget deficit were joined by new, related primarily to the economic downturn and the decline in GDP, which naturally led to a reduction in the revenue base. The budget deficit has become chronic.

Table 5

The budget deficit in Russia for several years








Budget deficit as% of GDP







The most important reason was the budget deficit imperfect tax system. This is primarily due to higher rates of many taxes, which led to a significant reduction in tax revenues. Dependence of revenues from taxes, finds its theoretical justification in position A. Laffer, according to which the excessive increase in income tax rates on businesses and individuals reduces the incentive to investment, slows economic growth and leads to widespread tax evasion. All this ultimately has a negative impact on revenues in the state budget. Graphical display of the relationship between income of the state budget and the dynamics of tax rates has been called the Laffer curve.

With an increase in the tax rate, increase revenues to the state budget

Increase occurs until until you reach the optimal size of the tax rate that provides the maximum revenues in the amount of Q K. Further increase in the tax rate reduces the incentive to work, entrepreneurship and increase the tax rate reduced budget revenues. Theoretically, at 100% level tax revenues could approach zero. Thus, the reduction of excessively high taxes in the long run provides an increase in savings, investment, employment, and therefore tax revenues.

Another problem that emerged after the country's transition to a market, the economy has become a huge shadow economy, which is 41% of GDP [14, p. 6]. This is much more than any developed capitalist country, and even than in countries with economies in transition (except for some of the CIS countries). Naturally, no income to the state budget from this sector does not act.

Russian budget deficit was financed by various methods. Until 1995, the main domestic source of funding were loans to the Central Bank. In 1993, for the first time were issued short-term government obligations (SCG), and then federal loan bonds (OFZ). Due to the release of these and other government securities (treasury bills were also used, bonds domestic currency sovereign bonds, government savings loans, gold certificates) is made all the domestic financing of the budget deficit. Another major source of funding are foreign loans [5, p. 282].

Table 6

Sources of financing the budget deficit in Russia in the dynamics for several years (trln. rub.)







Government deficit






Domestic financing:







- Central Bank credits












External financing






In addition to the above methods, from 1990 to 1995. to cover the deficit has been widely used currency issue that has served as a powerful inflationary factor and led to hyperinflation. Emission ceased applied since 1995 and it has significantly reduced inflation in the country.

Domestic financing deficit since 1995 through the issuance of T-bills and OFZ led to the rapid growth of domestic debt. Dynamics of domestic government debt Russian GKO and OFZ (billion denominated rubles) as follows. [5.str. 274].

Table 7

Domestic debt Russian GKO and OFZ for several years







Domestic debt Russian GKO and OFZ (mlrd.denominirovannyh rub.)



2 37.1



Consequence of increasing the public debt has been a sharp increase in the cost of its maintenance. This forced the Russian Government in autumn 1998 to refuse redemption of government securities to restructure the domestic debt, pushing time to fulfill their obligations. As a result, the country erupted in a deep financial crisis, which has had an impact on all spheres of economic life.

Since 1999 there has been a clear trend towards deficit reduction in 1999 it amounted to 1.4% of GDP, and in 2000 - 1.08%. This is primarily due to the beginning of economic growth, which was partly due to the fact that because of the crisis 1998g.znachitelno prices for foreign goods and many importers left the Russian market, and this has created an incentive for the development of domestic industry. Also played a positive role depreciation of the ruble, which contributed to an increase in profits of Russian exporters and hence revenues from these companies.

In recent years made great strides in creating a more effective budgetary system. Reducing wasteful public spending has led to positive changes in the structure of the budget. Made the normalization of relations, including the budget, between the federal center and the regions, which also affects the functioning of the budgetary system.

Great importance for the regulation of the state budget has a tax re-form, which is designed to reduce the tax burden on taxpayers, simplify the tax system and improve tax administration. This should ultimately help to improve tax collection and increase revenue. An important stage of the tax reform was the introduction to 1.01.2001. unified social tax with a regressive rate and a 13% income tax on all citizens. This measure had a positive impact on revenues. This is explained by the position of the Laffer depending on the size of budget income tax rate. By reducing the rate to the optimum level, revenues increased.

Consequence of the measures taken was the possibility of formation of a balanced budget in 2001 - the first for the entire period of economic reforms.


A study of the literature on the problem that interests us, and analysis of digital evidence theme materials, you can make the following conclusions:

- The state budget is a financial plan of the State for the current year. This estimate of income and expenditure, agreed with each other, both in volume and in terms of income and use. State budget belongs to a central place in the system of public finance;

- The state budget is a system of budgets, including the federal budget, regional budgets and local budgets. Relationship between the individual budgets are based on the principle of fiscal federalism, according to which for each level fixed budget their income and expenses that it should be financed. The main source of revenue is taxes, but along with these revenues can be formed due to non-tax revenues, loans and the issue of money. Budget expenditures are divided into current, providing the current needs of the state and capital, providing expanded reproduction and growth stocks.

In modern conditions, a typical phenomenon for the state budget in most countries has become the budget deficit - the excess of income over expenditure. The budget deficit may be due to adverse economic conditions or the result of deliberately pursued fiscal policy. Reasons for distinguishing between the budget deficit using the concept of the structural budget deficit - an attached state budget and tax system this level of public spending and potential GNP. Difference between the actual and structural deficits characterizes cyclical budget deficits, caused the decline in production and the presence of unemployment above the natural level. Financing of the budget deficit by printing money leads to an increase in the quantity of money in circulation, rising prices and inflation. Cover the deficit by borrowing in the private sector leads to a reduction in private investment as a result of the issuance of government securities;

- Permanent budget deficit leads to public debt. Depending on the sources of public debt loan can be internal or external. Domestic debt - is government debt holders of government securities - residents given country. Much public debt affects the economy: leads to increased polarization of society, affecting the rate of economic growth, the cost of servicing the national debt increase the budget deficit. External public debt (debt to other countries, foreign companies, banks and international economic organizations) shall be repaid from the proceeds from exports, which could also adversely affect the pace of economic development.

Positive changes in the structure of budget reductions achieved unsustainable public spending, the settlement of intergovernmental relations, and most importantly - as a result of tax reform.


1. The budget system of the Russian Federation: Textbook / Ed. MV Romanovsky, OV Vrublevskaya. M.: Yurait, 1999.

2. The budget system of Russia: Textbook for Universities / Ed. prof. GB Pole. Moscow: UNITY-DANA, 1999.

3. Budget Code of the Russian Federation. The official text. 2nd ed., Ext. M.: Publishing NORMA, 2000.

4. Budget Message of the President of the Federal Assembly of the Russian Federation "On fiscal policy for 2002 and the medium term," // Rossiyskaya Gazeta, June 3, 2001, p.3.

5. Efimova EG Economics for Lawyers: Textbook. M. Flint, 1999.

6. Stavropol Territory law from 28.12.2001 № 55-GD "On the regional budget for 2002" // Stavropol Pravda, December 29, 2001, p.2.

7. Iohin VY Economic Theory: A Textbook. M.: Yurist, 2000.

8. Kucherenko B. Budget 2002: The two-faced, but bezdefitsiten // Rossiyskaya Gazeta, June 2, 2001, p.2.

9. B. Immediately Kucherenko not be rich, but poverty shall cope // Rossiyskaya Gazeta, June 3, 2001, with.3.

10. LESQUIN V. Shvetsov A. Fiscal federalism in crisis and reform // Problems of Economics, 1998. № 3. P.18-38.

11. Mau V. Economic Policy Russia at the beginning of a new phase // Problems of Economics, 2001. № 3. P.4-23.

12. Ponomarenko, On fiscal policy in 2002 (analysis of the concept) // The Economist, 2001. № 11. P. 59-67.

13. Saburov E., N. Tipenko, Cernavska Fiscal federalism and intergovernmental relations // Problems of Economics, 2001. № 1. P. 56-71.

14. Tenevikov How in the world? // Arguments and Facts, 2001. № 17. P.6.

15. Federal laws from 27.12.2000 № 147-FZ "On the Federal Budget for 2001" // Rossiyskaya Gazeta, December 28, 2000, p.2-4. and "On the Federal Budget for 2002" // Rossiyskaya Gazeta, December 30, 2001, p.2-4.

16. Finance: A Textbook for High Schools / Ed. prof. LA Drobozinoy. Moscow: Finance, Unity, 2002.

17. Finance. Monetary circulation. Credit: Textbook for Universities / Ed. prof. LA Drobozinoy. Moscow: Finance, Unity, 1999.

18. Economy / Ed. AS Bulatov. M.: Yurist, 1999.

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