The execution of the state budget is a key component of economic management in modern Russia. This process contains many nuances. Will the Russian government cope with market challenges? How critical is a deficit budget and how to make it surplus?
What is the state budget
The term "budget" comes from the English budget ("wallet"). This is a set of special estimates of the country's income and expenses over a specific period of time (usually a year). When preparing the budget, the sources of cash receipts to the state treasury are indicated and the cost structure is formed. Who is entrusted with these responsibilities?
The budget of Russia is drawn up by the Government of the country and approved by the Parliament. At the end of each financial year, the highest executive authority reports on the implementation of the state budget. The result of the use of funds may be different. Firstly, it may be in short supply (expenses are higher than income). Secondly, the execution of the main state financial estimate can be in surplus (when income, on the contrary, exceeds expenses). And thirdly, the budget is balanced (revenue and expenses are almost equal).
Revenue structure
The basis of the revenue side of the state budgets of most countries is taxes (duties, fees), currency issues and loans. The federal budget of Russia in 2012 had the following revenue structure. The largest income to the state came from insurance premiums (17.51% of revenues, or almost 4 trillion 102 billion rubles). The second largest revenue item was customs duties (17.49%, or about 4 trillion 100 billion rubles). Of the classified sources of budget revenue, the third place went to the mineral extraction tax (10.49% of revenue, or about 2 trillion 460 billion rubles). But it should be noted that, according to government reports, 11.81% of budget revenues are “other incomes”, they have an actual third place in the profit structure.
All these figures reflect the consolidated budget of Russia. It is divided into the federal part, regional estimates and expense items related to the activities of state funds - pension, insurance and medical insurance. As such, the federal budget of Russia in 2012 was formed primarily due to customs duties. Insurance premiums went to state funds.
Cost structure
State budget spending is usually associated with fulfilling social obligations, national defense, investing in infrastructure (new roads, communications, etc.), as well as servicing debts. The budget of Russia in 2012 included the following main items of expenditure. Firstly, these are the same social obligations (3 trillion 185.8 billion rubles). The second largest budget expenditure item was the national economy (1 trillion 712.2 billion rubles). In third place is national security (797.6 billion rubles). Defense spending was a little behind (783 billion rubles). Interestingly, Russia's budget expenditures include the so-called "secret articles", and in huge monetary terms - 1 trillion 841.8 billion rubles in 2012.
Budget and public debt
If the country's budget is scarce, then one of the main sources of replenishment is government loans. They can be internal (creditors are citizens and organizations buying government bonds) or external, obtained from foreign residents. The total national debt indicator of the country includes the amount of the main part of the loan and interest. Experts believe that the value of public debt should be proportionate to key macroeconomic indicators.
Among them - the amount of debt per capita, its relation to the country's GDP and export volume, as well as government spending on loan servicing. Some economists consider the ratio of public debt and foreign exchange reserves to be important. Foreign lenders often assess the solvency of countries based on all these indicators.
Why the budget may be in short supply
The government for the period 2014-2016 laid the budget deficit in Russia. According to some experts, this is due to the fact that the country's economy is in a transition period, and at this stage it does not have the ability to respond to market challenges. As a result, the government is forced to allow the excess of the budget expenditure over the revenue part and to begin the practice of borrowing.
The main problem here, according to analysts, is the underdevelopment of non-resource sectors of the Russian economy, the low dynamics of introducing innovations and creating jobs in areas where there are new technologies. At the same time, experts say, the state does not set a task related to improving the quality of social services. With all the relevance of this area of budget spending.
Budget surplus factors
Despite the fact that the Russian budget in 2014 was planned with a deficit, the Government of the Russian Federation does not exclude the possibility that the expenditure side will still be less profitable. There are two main reasons for this - the favorable ruble exchange rate against the leading world currencies (incomes that the Russian budget in dollars increase in ruble terms), as well as rather high oil prices. Among the additional factors, experts call comfortable prices for export products of Russian manufacturers. Due to good conditions, the budget can be adjusted in the fall. But, as analysts note, possible changes may relate to the likelihood of a transition to borrowing - as in a situation with a deficit. So far, the government has laid down a deficit of 0.5% of GDP in the annual budget of Russia. Interestingly, the International Monetary Fund is optimistic: according to foreign economists, the budget of the Russian Federation will be executed with a surplus of 0.3% of GDP.
According to the Russian budget
The annual budget of Russia is formed in several stages. First, the Government works with him, making calculations on the items of income and expenses, substantiating the wording and analyzing the economic situation. A complete budget structure of Russia is being compiled. Then the draft is submitted to the State Duma for consideration. At the next stage, the Duma deputies send the document to the Committee, which deals with budget, tax, banking and financial policies.
There, documents provided by the Government are studied by officials, expert economists, financiers, and scientists. Then the project is shown to the President of Russia, sent to other committees of the State Duma, and finally gets to the Accounts Chamber, which makes a conclusion. This procedure includes checking the budget project for legality, the validity of the revenue and expenditure parts. After that, the State Duma begins the process of adopting a budget in four readings. If this stage is successful, then the approved document is submitted to the Federation Council. If the budget is adopted there, the project will be signed by the President of Russia.
Dynamics of expenditures of the budget of Russia
Income and especially expenditure items of the budget of the Russian Federation are variable values. The values of the former may fluctuate due to market conditions, the quality of work of fiscal authorities and financial institutions. The second - to be adjusted from year to year by the Government itself, depending on the goals that it considers priority. A striking example is the cost of the item “national economy”. If in 2009 their value amounted to about 1 trillion 63 billion rubles, then in 2010 the figure increased by 303 billion, and a year later increased by another 336.
An example of an item of budget expenditures, the dynamics of which is ambiguous, is “national defense”. In 2009, the state spent about 712 billion rubles to finance this sector, a year later, significantly less, 678. But in 2011, there was a sharp increase in cash flows for defense - 793 billion rubles from the state budget. In 2012, the figure again fell to 783. At the same time, the total federal budget of Russia from 2009 to 2012 was steadily growing.
Execution of the budget of Russia
After carrying out all legislative procedures, the State budget of Russia begins to be executed. The main tasks here, according to analysts, are to ensure the timely receipt of taxes and to control the quality of the transfer of funds to recipients. In the area of responsibility of the Government of the Russian Federation are revenues and expenses of the Russian budget at the federal level. The executive authorities of the regions are responsible for the development of funds in the entities. Local administrations of municipalities monitor the implementation of the requirements of the main financial document of the country in cities, districts and regions.
It happens that the budget of Russia in the year of crisis or recession in the global economy can be sequestered. Most often this is due to the deterioration of the energy market. The specifics of this industry is such that it is difficult to predict fuel prices, experts say. Sequestration of the budget is usually associated with a reduction in cost items in equal proportions (but there may also be so-called “protected” areas of financing).
