What is meant by servicing the state's debt? Public debt Service of public internal debt is carried out by

State credit management is one of the areas of the state’s financial policy, associated with ensuring its activities as a borrower, lender and guarantor.

Government Credit Management— this is a set of government actions related to servicing and repaying public debt, issuing and placing new loans, maintaining the secondary debt market, and regulating the public credit market.

These activities are regulated and carried out by the Ministry of Finance of the Russian Federation and the Central Bank of the Russian Federation, which determine the total volume of the budget deficit, the volume and nature of loans necessary to finance it, develop credit policy and its institutional support.

Public credit management is aimed at achieving economic, social and political goals, which are determined by trends in social progress and current state the country's economy.

Among main economic goals— ensuring economic stabilization and growth of production, maintaining its competitiveness in the world market; social goals imply ensuring social stability and social progress; political goals are formulated based on the idea of ​​maintaining the stability of the functioning of the political system and ensuring national security.

Achieving these goals is to a large extent connected with the management of public debt, especially external debt, the state of which, as world practice shows, largely determines not only the economic independence of the country, but also the preservation of its national sovereignty, which is especially relevant for modern Russia.

Defined and ranked accordingly tasks that the state credit management system in Russia is designed to solve:

a) minimizing the cost of debt for the borrower;

b) effective use of raised funds, creation of an appropriate accounting and control system;

c) strengthening the investment nature of loans;

d) regulating the volume of borrowed obligations of the state and maintaining their course;

e) raising funds on the most favorable terms for the issuer;

f) determining the priorities of the state’s credit policy, ensuring timely repayment of loans provided.

In the system of actions for managing public credit, the most important is servicing and repayment of public debt, since all expenses of this kind are carried out at the expense of budgetary funds, creating additional support for it, and untimely payments lead to an increase in the amount of debt due to penalties. Only in the case of investment loans, servicing and repayment of obligations are carried out at the expense of income from the project.

Service government debt assumes Firstly, carrying out operations to place debt obligations, secondly, payment of income on them and, thirdly, repaying all or part of a debt as planned or making contributions to a sinking fund.

Redemptiondebt involves full repayment of the principal amount of the debt and interest on it, as well as fines and other payments associated with late repayment of the debt.

Servicing of the government debt of the Russian Federation is carried out by the Bank of Russia and its institutions. The Bank of Russia performs the functions of a general agent for servicing public debt free of charge. Payment for the services of agents for placement and servicing of public debt is carried out from the federal budget.

From the investor’s point of view, the most acceptable is the timely receipt of income and repayment of the loan, calculation of the principal amount of the debt and interest on it. However, in the context of a significant increase in public debt and budget deficit, the government is forced to resort to various ways to regulate debt .

Such methods traditionally include refinancing, consolidation, conversion, loan unification, bond exchange according to a regressive ratio etc.

Refinancing- this is the repayment of old government debt by issuing new loans.

Conversion- traditionally this is a change in the profitability of loans (a decrease - in order to reduce the costs of managing public debt or increase profitability for creditors).

Consolidation— changing the validity period of already issued loans in the direction of increase (as a rule) or decrease. It involves easing the terms of debt repayment in the form of deferred payments and repayment. It is possible to combine consolidation with conversion.

Unificationloans- this is the combination of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. The goal is to reduce the number of types of securities in circulation at the same time, which simplifies work and reduces the state’s expenses for debt servicing. The unification of government loans is usually carried out together with consolidation, but can also be carried out outside of it.

In some cases, the government may exchange of bonds for regressive ratio i.e., when several previously issued bonds are equated to one new bond, which relieves the state of the need to make payments in full money on bonds (payment of interest and (or) redemption of bonds) previously placed in a currency that was depreciated at the time of settlement .

Deferment of loan repayment differs from consolidation in that in this case not only the repayment terms are postponed, but also, as a rule, the payment of income ceases.

Conversion, consolidation, unification of government loans and exchange of government bonds are usually carried out only in relation to domestic loans. As for deferring the repayment of obligations, this measure is also possible in relation to external debt. Deferment of repayment of an external loan, as a rule, is carried out in agreement with creditors, and this operation does not necessarily involve the suspension of interest payments on the loan.

Under cancellation of public debt means a complete waiver by the state of obligations on issued loans.

The main task of managing Russia's public debt is to change the debt strategy and move from a policy of deferring payments to a policy of debt reduction. Due to current circumstances, this applies to the greatest extent to external debt. And here it is advisable to turn to the modern world experience of financial conversion methods for settling external debt, as the most flexible and adequate to the current state and credit capabilities of Russia.

Financial mechanism of the conversion scheme consists of liquidating part of the external debt by exchanging it for national assets - national currency, bonds, shares, goods, financial assets, etc. The following options may be the most acceptable for Russia.

Debt in exchange for exports. This does not mean raw material exports, but exports finished products. This option allows you to support competitive production in the country, develop exports, develop new markets, and therefore save jobs, ensure the receipt of taxes and repayment of debts, as well as financing investments. It is important to support industries that have significant export potential (space, aluminum, aviation industry, etc.), which are already producing products that meet international standards and can contribute to the growth of the economy as a whole.

Debt in exchange for property. This option is carried out, as a rule, within the framework of a privatization program, and also involves the exchange of debt obligations for shares of privatized enterprises and the attraction of strategic investors. In this case, it is important to assess the value of domestic enterprises in accordance with world market standards, and the exchange of debt for shares should be carried out at a rate favorable to Russia. It is also important to determine the share of shares (company) in ownership during debt conversion.

Debt in exchange for taxes. In this case, it is assumed that the legislative establishment of such tax benefits for investors - holders of external debt, which would encourage them to invest. Permission for conversion should be granted only when making investments that are important for the Russian economy. In this case, the external debt will be repaid using future income.

Payment of interest payments on external public debt in local currency. This option is used in world practice in some cases. Payments are made at an attractive rate for creditors, but money for interest payments is transferred to special investment accounts in domestic banks, and funds from these accounts can only be used to make direct investments in the debtor’s economy. All other manipulations with this kind of funds and income from these investments can be carried out only after the expiration of the period established in the conversion agreement (at least after a year).

Debt for cash. Involves repurchasing debt at a discount on the secondary market for external debt obligations. In this case, the nominal debt is reduced and there are savings on future interest payments. The procedure for this operation is as follows: the government appoints an agent with sufficient experience in the purchase and sale of foreign debts (usually a large commercial bank) and sets a discount to the face value of the debt, according to which it is ready to buy back the debts purchased by it from the agent.

Debt restructuring.This method of debt regulation is very common in modern conditions. Restructuring is understood as the repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the amount of repaid debt obligations with the establishment of other conditions for servicing debts and the terms of their repayment. Debt restructuring can be carried out with a partial write-off (reduction) of the principal amount.

Many of the described techniques were used in bringing Russia out of the 1998 default. In particular, we can mention such methods as:

a) restructuring of bond loans into bonds with a later maturity;

b) negotiating with creditors in order to defer payments;

c) the use of various mutual settlement schemes to reduce loan debt;

d) attracting bank loans for payments on bonds;

e) accepting bonds as tax payments, in exchange for housing certificates, etc.;

f) repurchase of its obligations at a discount;

g) early redemption of its obligations.

Russian legislation, in particular the Budget Code of the Russian Federation, provides for a number of organizational methods for managing public debt. The right to carry out state external borrowings Russian Federation and the conclusion of agreements on the provision of state guarantees, guarantee agreements for other borrowers to attract external credits (loans) belongs to the Russian Federation or on its behalf - to the Government of the Russian Federation or a federal executive body authorized by the Government of the Russian Federation.

The subjects of the Russian Federation, whose budgets did not receive financial assistance to equalize the level of budgetary security, initially had the right to carry out government external borrowings. At the moment, a ban on external borrowing has been introduced for the constituent entities of the Russian Federation (they were not provided for municipalities) - the corresponding amendment to the Budget Code came into force on January 1, 2002.

The maximum volume of government external borrowings of the Russian Federation should not exceed the annual volume of payments for servicing and repaying the country's public external debt.

The maximum volume of public debt of a constituent entity of the Russian Federation, municipal debt should not exceed the volume of revenues of the corresponding budget without taking into account financial assistance from the budgets of other levels of the budget system of the Russian Federation.

State/municipal debt is the result of borrowings undertaken to cover the budget deficit. It is formed by the sum of deficits for previous years minus surpluses. Let's take a closer look at how it's done

General information

TO State debt of the Russian Federation include obligations to:

1. Legal entities and individuals (including foreign ones).
2. Subjects of the Russian Federation.
3. International financial structures, other subjects of international law.
4. Foreign countries.

Public debt is also formed by obligations:

• under state guarantees provided by the Russian Federation;
• arising as a result of the adoption of laws on the attribution of third party debt to the public debt.

Terminology nuances

In accordance with the provisions of the law, national and public debt is allocated. The first concept is considered broader. The national debt consists not only of the obligations of the government of the Russian Federation, but also of the governance structures of the republics included in the country, as well as self-government bodies.

Security

It is carried out at the expense of federal property, which forms the country's treasury. Despite the fact that credit relations are secured by the treasury, federal budget funds are used to pay off debts (

Budget Code contains an imperative instruction for federal government structures to exercise all powers to raise revenue to pay off obligations.

Compound

Government debt of the Russian Federation- a direct consequence of the credit policy of the country's authorities. The composition is determined by the form of the loan - a way to attract free (temporarily) funds at the disposal of the authorities.

As Article 98 of the Book Code establishes, the volume of public debt includes:

• amounts of principal debt on loans;
• nominal amount of government securities;
• obligations under issued guarantees.

The debt does not include the payment of interest, as well as non-interest income on government borrowing. In accordance with the BC, they act as an independent form of federal budget expenditures.

Methods of managing and servicing public debt

Public debt appears when government expenses exceed revenues, that is, a budget deficit is formed. It is covered by government borrowing. The situation is similar with municipal debt. The only difference is that borrowing is carried out at the local or regional level.

Public debt management is one of the areas of the state's financial policy. It is a set of activities related to servicing public debt, its repayment, issue, placement of loans. Management also includes regulation of the government loan market.

Management methods include:

1. Refinancing. It represents the repayment of previous debt by issuing new loans, which involves replacing obligations that are due to expire with new bonds or short-term debts with long-term ones.
2. Conversion. It represents an adjustment to the original terms of a previously issued loan. In particular, the profitability changes (the percentage decreases or increases).
3. Consolidation. It involves extending the loan term by combining several obligations into one long-term one. In this case, as a rule, the loan interest rate changes.
4. Unification. In this case, several loans are also combined, but the previously issued bonds are exchanged for new ones. The goal of the method is to reduce the number of types of papers, which, in turn, optimizes the work with them and reduces costs. In some cases, an exchange may be carried out under a recourse agreement. This means that several bonds issued previously are equal to one. Such an exchange, for example, was carried out after the war to remove war bonds from circulation. The ratio was 3:1 (three old ones to one new one).
5. Deferment of repayment. It represents a postponement and termination of payments for a certain time.
6. Cancellation. It implies a complete waiver of obligations. This can happen for various reasons: financial insolvency, the coming to power of persons who refuse to recognize the obligations of the previous government, etc.
7. Restructuring. It involves revising the deadline for paying interest or repaying the principal debt, reducing the rate, and writing off a certain part of the debt. As a rule, this method is used when solvency deteriorates and there are signs of bankruptcy. According to Article 105 of the BC, restructuring is the termination of the state’s obligations with their replacement by other obligations that require different conditions servicing public debt and its repayment.
8. Ransom. In the secondary market for financial instruments, the debtor country can redeem its obligations.

Measures to service public debt

The main ones include:

• payments to creditors;
• providing guarantees;
• repayment of internal/external loans;
• determination of conditions for the issue and placement of new obligations, etc.

The effectiveness of these measures depends on the validity decisions made. It, in turn, is based on a thorough analysis of the structure and volume of public debt, an objective assessment of the current state of borrowing.

Regulatory framework

The provisions governing the servicing of public debt and municipal borrowing are enshrined in Article 119 of the BC.

It is understood as a set of transactions for the payment of income in the form of interest or discount. ABOUT servicing state (municipal) debt carried out from the budget of the appropriate level.

Clause 2 of this article establishes that the Central Bank, a credit structure or another specialized financial organization performs the tasks of an agent of the Government for the implementation of these operations, as well as for the placement, exchange, repurchase, and repayment of obligations. This activity is carried out in accordance with agency agreements concluded with the general agent, the Central Bank performs free of charge.

As Article 119 of the BC establishes, payment for the activities of agents for the implementation of tasks enshrined in agreements signed with the Ministry of Finance is made from the federal budget.

The implementation by a credit structure or other specialized organization of the functions of an agent of the executive body of state power of a region of the Russian Federation is carried out in accordance with agreements concluded with the executive institute of power of the subject carrying out borrowing.

Agreements can also be signed with the local administration (when servicing municipal debt). In this case, payment for agency services is carried out from the local budget.

Maintenance costs

They are mentioned in Art. 111 BC.

Costs of servicing public debt subject or municipal borrowings are planned annually. The estimate is approved by the law on the corresponding budget.

The maximum amount of expenses for servicing public debt according to the indicators of the report on the execution of budget income and expenditure items for the reporting period, it cannot be higher than 15% of the volume of expenses of the corresponding budget. Costs incurred through subsidies are not taken into account.

Key principles

Public debt servicing is based on:

1. Unconditionality. It involves ensuring accurate and timely repayment of obligations to investors and creditors without imposing additional conditions.
2. Consistency. It involves maximum harmonization of the interests of the lender and borrower.
3. Unity of accounting. In the course of managing and servicing public debt, all types of securities issued (issued) by government bodies, regional structures and municipalities must be taken into account.
4. Unity of credit policy. It involves the use of a unified approach in carrying out activities for managing and servicing debt on the part of the center in relation to the Moscow Region and the regions.
5. Reducing risks. Financial policy must include all necessary measures to help reduce risks for creditors, investors, and the debtor himself.
6. Glasnost. All interested users should receive complete and reliable information about loans in a timely manner.
7. Optimality. A system of government loans must be created in which their repayment will be carried out with minimal risks. At the same time, operations should have the least negative impact on the economy.

Authorized Subjects

In accordance with Article 101 of the Book Code, management:

• the state debt of the Russian Federation is carried out by the Government or the Ministry of Finance authorized by it;
• state debt of the region - the highest executive institution of government or financial structure authorized in accordance with regional legislation;
• municipal obligations - the executive and administrative body of the municipality (local administration), authorized by the charter of the municipality.

Conclusion

The size of the public debt determines the effectiveness of all credit transactions carried out by the state. The absolute indicator of borrowings, their dynamics, and the pace of change characterize the state of the country’s finances and economy and the efficiency of financial organizations.

During a recession, according to the classical approach to liability management, it is advisable to reduce the amount of public debt. Otherwise, debt will negatively affect both the financial condition of the country and its economy.

An alternative approach is based on the opposite concept. In accordance with it, when business activity decreases, the amount of loans must be reduced. At the same time, public debt will serve as a financial mechanism that helps accelerate economic development.

Government borrowing can only be useful during times of sustained economic growth. During periods of recession, a budget deficit can significantly worsen the country's financial condition, increasing the threat of a debt crisis and reducing the country's reliability rating. This, in turn, leads to a deterioration in the overall economic condition. The growth of public debt leads to real negative consequences for the financial, economic and social sectors.

Borrowing of funds by budgets of various levels leads to the formation of state and municipal debt, respectively - the accumulated debt of the Russian Federation, constituent entities of the Russian Federation and municipalities, subject to repayment in the form of principal and interest accrued on it.

The debt can be formalized in securities or defined in an agreement between the borrower represented by the relevant executive body of state power or local government, on the one hand, and the investor, on the other hand.

Government debt of the Russian Federation represents debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law.

The public debt of the Russian Federation is secured by all federally owned property that makes up the state treasury.

The public debt of the Russian Federation includes debt obligations in the following forms:

1) loan agreements and contracts concluded on behalf of the Russian Federation with credit organizations, foreign states and international financial organizations;

2) government securities issued on behalf of the Russian Federation;

3) agreements on the provision of state guarantees of the Russian Federation, guarantee agreements of the Russian Federation to ensure the fulfillment of obligations by third parties;

4) reissued debt obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;

5) agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of previous years.

Municipal debt consists of a set of debt obligations of a municipality. It is provided by all municipal property that makes up the municipal treasury.

Debt obligations of a municipality exist in the form of:

1) loan agreements and contracts concluded by the municipality;

2) loans of a municipal entity, carried out by issuing securities on behalf of the municipal entity;

3) agreements on the provision of municipal guarantees, agreements of guarantee of a municipal entity to ensure the fulfillment of obligations by third parties;

4) debt obligations of legal entities converted into municipal debt on the basis of legal acts of local government bodies.

To conduct an effective financial policy in the field of state and municipal borrowing, the process of managing state and municipal debt is of particular importance. Management of the public debt of the Russian Federation is carried out by the Government of the Russian Federation, management of the public debt of a constituent entity of the Russian Federation is carried out by the executive body of the constituent entity of the Russian Federation. Municipal debt management is carried out by an authorized local government body.

Debt servicing

Let's consider the procedure for servicing the state internal debt of the Russian Federation, constituent entities of the Russian Federation, and municipal debt.

The costs of placement, payment of income and repayment of debt obligations of the Russian Federation are carried out at the expense of the federal budget. Servicing of the state internal debt of the Russian Federation is carried out, as a rule, by the Central Bank of the Russian Federation and its institutions through operations for the placement of debt obligations of the Russian Federation, their repayment and the payment of income in the form of interest on them.

The performance by the Central Bank of the Russian Federation and other specialized financial institutions of the functions of the general agent of the Government of the Russian Federation for the placement of debt obligations of the Russian Federation, their repayment and the payment of income in the form of interest on them is carried out on the basis of special agreements concluded with the issuer of government securities.

Servicing of the state internal debt of a constituent entity of the Russian Federation and municipal debt is carried out in accordance with federal laws, laws of the subject of the Russian Federation and legal acts of local governments.

By agreement of the parties, state or municipal debt arising from the purchase and sale of state or municipal securities may be replaced by a loan obligation. The replacement of state and municipal debt with a loan obligation is carried out in compliance with the requirements for innovation and is carried out in the form of a loan agreement.

Novation is associated with the fact that an obligation is terminated by an agreement of the parties to replace the original obligation that existed between them with another obligation between the same persons, providing for a different subject or method of performance. Novation terminates additional obligations associated with the original obligation.

Let's consider the main aspects of the functioning of the finances of the constituent entities of the Russian Federation.

The finances of the constituent entities of the Russian Federation are a set of monetary relations that arise regarding the formation, distribution and use of regional funds of financial resources to solve the socio-economic problems of the constituent entities of the Russian Federation.

These relations develop between government bodies of the constituent entities of the Russian Federation and the population living on the territory of this constituent entity of the Russian Federation, as well as economic entities. Finances of the constituent entities of the Russian Federation include:

· budget funds of a constituent entity of the Russian Federation;

· government securities owned by government bodies of a constituent entity of the Russian Federation;

· other funds owned by a constituent entity of the Russian Federation.

In a broad sense, the finances of a constituent entity of the Russian Federation also include consolidated budget of a constituent entity of the Russian Federation.

The finances of the constituent entities of the Russian Federation are based on the following principles:

· independence;

· fiscal federalism;

· state financial support (transfers from the federal budget and targeted revenues);

· transparency;

· publicity.

The rights of the owner in relation to the finances of a constituent entity of the Russian Federation are exercised by the state authorities of the constituent entity of the Russian Federation in accordance with the constitution or charter of the constituent entity of the Russian Federation.

The finances of a constituent entity of the Russian Federation are economic basis state authorities of a constituent entity of the Russian Federation, along with the property of a constituent entity of the Russian Federation, property that is in state ownership and transferred to the management of state authorities of a constituent entity of the Russian Federation, and other property that serves to meet the needs of a constituent entity of the Russian Federation.

Budget funds of a constituent entity of the Russian Federation and regional extra-budgetary funds are part of the property of a constituent entity of the Russian Federation. The property of a constituent entity of the Russian Federation is managed by state authorities of a constituent entity of the Russian Federation. The rights of the owner in relation to property that is part of the property of a constituent entity of the Russian Federation are exercised on behalf of the constituent entity of the Russian Federation by the state authorities of the constituent entity of the Russian Federation.

State authorities of a constituent entity of the Russian Federation have the right to transfer objects of property of a constituent entity of the Russian Federation for temporary or permanent use to individuals and legal entities, to lease, and to alienate.

The procedure and conditions for privatization of state property of a constituent entity of the Russian Federation are determined independently by the state authorities of the constituent entity of the Russian Federation.

Of particular importance for the finances of the constituent entities of the Russian Federation is the principle fiscal federalism.

State authorities of the constituent entities of the Russian Federation, by agreement with the federal state authorities of the Russian Federation, can transfer to them the exercise of part of their powers.

State authorities of the constituent entities of the Russian Federation cannot adopt legal acts on financial and monetary issues falling under the jurisdiction of the federal state authorities of the Russian Federation, just as the federal government bodies of the Russian Federation cannot adopt legal acts on issues falling under the jurisdiction of the constituent entities of the Russian Federation.

In order to exercise its powers State authorities of a constituent entity of the Russian Federation:

· participate in the development by government bodies of the Russian Federation of draft federal laws and other regulatory legal acts of the Russian Federation on subjects of joint jurisdiction of the Russian Federation and the subject of the Russian Federation;

· carry out legal regulation on subjects of joint jurisdiction, determined in accordance with federal legislation;

· participate in the development and implementation of federal target programs on the territory of the constituent entities of the Russian Federation;

· create conditions for attracting foreign investment into a constituent entity of the Russian Federation in order to implement federal and regional programs in accordance with federal legislation.

Executive authorities of a constituent entity of the Russian Federation may be vested with the powers of territorial structural divisions of the executive authorities of the Russian Federation in the field of financial relations in accordance with agreements concluded between the executive authorities of the constituent entity of the Russian Federation and the executive authorities of the Russian Federation.

Territorial structural divisions executive authorities of the Russian Federation may be vested with the powers of executive authorities of constituent entities of the Russian Federation in accordance with agreements concluded between executive authorities of the constituent entity of the Russian Federation and executive authorities of the Russian Federation.

A subject of the Russian Federation independently establishes and introduces by its laws regional taxes and fees in accordance with the general principles of taxation and fees established by the Constitution of the Russian Federation and federal legislation.

The composition and amount of income received by the state budget of a constituent entity of the Russian Federation and the budgets of municipalities of a given constituent entity of the Russian Federation in the form of deductions from federal taxes and fees (transfers, targeted revenues, subsidies, subventions, subsidies, etc.) are determined by an agreement between federal government bodies and by state authorities of a constituent entity of the Russian Federation, unless they are expressly established by federal legislation.

Financing of federal budget expenditures on the territory of a constituent entity of the Russian Federation can be carried out through territorial bodies of the federal treasury, including through tax and other payments collected on the territory of a constituent entity of the Russian Federation and subject to transfer to the federal budget.

For the purpose delimitation of powers between the executive authorities of the Russian Federation and the executive authorities of the constituent entity of the Russian Federation on subjects of joint jurisdiction, the executive authorities of the constituent entity of the Russian Federation conclude the corresponding agreements with the Government of the Russian Federation.

The delimitation of state property on the territory of a constituent entity of the Russian Federation, including the delimitation of ownership of land, water and other natural resources, between federal property and the property of a constituent entity of the Russian Federation, as well as the delimitation of powers to manage federal property on the territory of a constituent entity of the Russian Federation, is carried out, as a rule, by separate agreements.

23.Types of financial assistance

The revenue side of the local budget may include financial assistance in various forms: subsidies, subventions, which also belong to the means of budget regulation. Grants and subventions are monetary transfers from a higher budget to a lower one as material assistance.

A subsidy is a sum of money allocated from a higher-level budget in cases where fixed and regulating revenues are not enough to form the minimum budget of a municipality, which, in accordance with the law, state authorities are required to provide. The use of subsidies does not have a specific purpose, and it is allocated free of charge and irrevocably.

A subsidy is a sum of money allocated for a certain period from a higher-level budget for specific purposes and programs to equalize the socio-economic development of the relevant territory. If the subvention is not used for its intended purpose, it must be returned to the body that provided it.

The revenue side of local budgets may also include borrowed funds.

The need for borrowed funds is due to the insufficiency of own resources for financial support of local programs, construction of municipal facilities, and covering budget expenses in conditions of local budget deficit.

A loan is temporary income because it must be repaid. In cases established by law, payment of borrowed funds is also provided.

Local governments can use borrowed funds such as interest-bearing and interest-free loans received from other budgets, short-term loans from commercial banks, and income from local loans.

Amounts transferred from the federal budget to the budgets of the constituent entities of the Federation are called transfers.

24. Social extra-budgetary funds. Sectoral state extra-budgetary funds.

Extra-budgetary funds are independent financial and credit institutions and organizations, most of them endowed with the status of a legal entity. They are independent in legal and economic terms from the federal budget and the budgets of administrative-territorial associations (republics within the Russian Federation, regions, territories, cities, districts, etc.). Income and expenses of extra-budgetary funds are not included in the total amount of income and expenses of the budgets of the relevant administrative-territorial associations.
At the same time, the funds of extra-budgetary funds are federal property. The state provides guidance and legal regulation of their activities.
State authorities, in particular, determine the purpose and objectives of the activities of a particular extra-budgetary fund, the sources of its income, among which the most important is the obligatory payment of legal and individuals, installed centrally. In addition, the state determines the directions for using funds accumulated by extra-budgetary funds.
The distinctive features of extra-budgetary funds include their targeted focus on financing expenses not provided for in the budget, and independence from the budget of state-owned funds accumulated in the funds. Relations related to the calculation, payment and collection of contributions to extra-budgetary funds are subject to the norms and provisions of the tax legislation of the Russian Federation.
Social extra-budgetary funds are the main source of compensation in social insurance. Compulsory social insurance is a system of legal, economic and organizational measures created by the state aimed at compensating or minimizing the consequences of changes in the material and (or) social situation of working citizens, and in cases provided for by the legislation of the Russian Federation, other categories of citizens due to their recognition as unemployed, labor injury or occupational disease, disability, illness, injury, pregnancy and childbirth, loss of a breadwinner, as well as old age, the need to receive medical care, sanatorium-resort treatment and the occurrence of other social insurance risks established by the legislation of the Russian Federation, subject to compulsory social insurance.

Outside the federal budget, state funds of funds are formed, managed by government bodies of the Russian Federation and intended for the implementation of the constitutional rights of citizens to: 1) social security for old age; 2) social security for illness, disability, in the event of loss of a breadwinner, birth and raising of children, and other cases provided for by the legislation of the Russian Federation on social security; 3) social security in case of unemployment; 4) health care and free medical care. Funds of state extra-budgetary funds are in federal ownership. State extra-budgetary funds of the Russian Federation are: 1) Pension Fund of the Russian Federation; 2) Social Insurance Fund of the Russian Federation; 3) Federal Compulsory Medical Insurance Fund; 4) State Employment Fund of the Russian Federation. Income of state extra-budgetary funds is generated from: 1) mandatory payments established by the legislation of the Russian Federation; 2) voluntary contributions from individuals and legal entities; 3) other income , provided for by the legislation of the Russian Federation. The budgets of state extra-budgetary funds are subject to crediting, distributed by the bodies of the Federal Treasury at the levels of the budget system of the Russian Federation, tax revenues from the following taxes: 1) a single tax levied in connection with the use of a simplified taxation system: 2) minimum tax in connection with the application of a simplified taxation system: 3) a single tax on imputed income for individual species activities: 4) unified agricultural tax / Expenditure of state extra-budgetary funds is carried out only for the purposes determined by the legislation of the Russian Federation, constituent entities of the Russian Federation, regulating their activities in accordance with the budgets of these funds, approved by federal laws, laws of constituent entities of the Russian Federation. The execution of the budgets of state extra-budgetary funds is carried out by the Federal Treasury. A report on the execution of the budget of a state extra-budgetary fund is drawn up by the fund's management body and submitted by the Government of the Russian Federation for consideration and approval to the Federal Assembly in the form of a federal law.

Municipal budget (local budget)– the form of formation and expenditure of funds per financial year intended to fulfill the expenditure obligations of the relevant municipality.

The use by local government bodies of other forms of education and expenditure of funds to fulfill the expenditure obligations of municipalities is not permitted.

Local budgets, in accordance with the budget classification of the Russian Federation, separately provide for funds allocated for the fulfillment of expenditure obligations of municipalities in connection with the exercise by local governments of powers on issues of local importance and expenditure obligations of municipalities, fulfilled at the expense of subventions from budgets of other levels for the implementation of certain state powers.

The budget of the municipal district (district budget) and the set of budgets of urban and rural settlements that are part of the municipal district (without taking into account interbudgetary transfers between these budgets) form the consolidated budget of the municipal district.

As an integral part of the budgets of urban and rural settlements, estimates of income and expenses of individual settlements and other territories that are not municipalities may be provided. Local governments ensure the balance of local budgets, compliance with established requirements for the regulation of budgetary relations, the size of the local budget deficit, the level and composition of municipal debt, and the fulfillment of budgetary and debt obligations of municipalities.

The formation, approval, execution of the local budget and control over replenishment are carried out by local government bodies independently in compliance with legal requirements. Local government bodies, in the manner established by federal laws and other regulatory legal acts of the Russian Federation adopted in accordance with them, submit reports on the execution of local budgets to federal government bodies and government bodies of constituent entities of the Russian Federation.

Local budget project the decision to approve the local budget, the annual report on its implementation, quarterly information on the progress of execution of the local budget and on the number of municipal employees of local government bodies, employees of municipal institutions, indicating the actual costs of their monetary maintenance are subject to official publication. The formation, approval, execution of the local budget and control of its execution are carried out by local government bodies independently in compliance with legal requirements. Local government bodies, in the manner established by federal laws and other regulatory legal acts of the Russian Federation adopted in accordance with them, submit reports on the execution of local budgets to federal government bodies and government bodies of constituent entities of the Russian Federation.

Budget expenses– funds allocated for financial support of the tasks and functions of local self-government in the forms provided for by the Budget Code of the Russian Federation.

Local government bodies maintain registers of expenditure obligations of municipalities in accordance with the requirements of the Budget Code of the Russian Federation in the manner established by the decision of the representative body of the municipality. Expenditures from local budgets to finance the powers of federal government bodies and government bodies of constituent entities of the Russian Federation are not permitted, except in cases established by federal laws and laws of constituent entities of the Russian Federation.

26.Special budget regime. Investment support for regional development.

Special budget regime of the region, subject of the federation. Large regions and territories of the country are provided with special budget regimes only in exceptional cases due to difficult to resolve political contradictions, ethnic and economic problems. The essence of these modes- in expanded budgetary autonomy of regional authorities, greater powers on taxation and financing of expenses, more preferential conditions for the distribution of income from the collection of national-regional taxes. Local authorities also retain the rights to receive general and special transfers, often seeking to ensure that their specific interests are taken into account.

As world experience shows, in most countries only a limited number of regions enjoy a special budget regime. Wider use of this method is fraught with such negative consequences as a narrowing of the scope of state macroeconomic regulation, aggravation of the problems of vertical and horizontal imbalance of the budget system, and strengthening trends towards sovereignty of territories (China)

Special local budget regime. In most countries, the method of special budget regimes is actively used in relation to relatively small territories (part of a region, a city, a district within a city) in which economic zones are created. Zonal policy in industrialized countries primarily acts as a tool for smoothing out regional differences, boosting the economy of lagging and depressed territories, and is used to a lesser extent for the purposes of foreign economic expansion. In developing countries, it is aimed mainly at creating enclaves of economic growth, which should help accelerate overall economic development, integration into the world economy, and is to a lesser extent subordinated to solving local socio-economic problems.

The features of the economic regime in which the zones operate are determined by their type and purpose. Zones differ from each other primarily in whether they remain within the boundaries of the national customs territory or receive the status of extraterritoriality. The US and UK use both types of zones, which are created in accordance with national zone laws.

Zones that do not have the status of extraterritoriality are called entrepreneurial. The status of an enterprise zone is given to territories (mainly areas in cities) that meet certain criteria of depression and backwardness. In the USA, such criteria are: poverty and unemployment levels above average, as well as population size (at least 4 thousand inhabitants). In the UK these criteria are not clearly defined, which is thought to allow for more flexible zoning policies. In both countries, the establishment of enterprise zones requires negotiations and a contract between the central and relevant local authorities. Initially, the central authorities offer a standard set of fiscal benefits and incentives for the newly formed enterprise zone. During the negotiations, it is specified in connection with the proposals of local authorities regarding the amount of their own expenses in the zone. The extent of compensation by the center for local budget expenses depends on the activity of local authorities in bringing the territory’s economy out of a depressed state. In both countries, benefits are aimed primarily at stimulating small and medium-sized businesses (they provide, in particular, temporary exemption or reduction of taxes, primarily on real estate and land, subsidies for investments in fixed production assets, R&D expenses, wages and loan repayments , accelerated depreciation of equipment up to a 100% deduction of expenses for the purchase of equipment in the first year of its operation). But unlike the UK, in the US benefits also apply to the population living in such a zone. Low-income citizens can receive additional assistance from the federal budget in the form of housing vouchers and negative income tax rates. In the United States, enterprise zones can be formed in accordance with both national law and individual state laws. The extent of incentives available to state enterprise zones is determined by their budgetary capabilities.

Zones with extraterritorial status, or special economic zones (SEZ), have become more widespread in the world than business zones. They operate especially successfully in new industrial countries Southeast Asia, Brazil and Mexico. There are usually four main types of SEZs: trade, industrial-production, technology-innovation and service. Like enterprise zones, they are most often created in economically backward and depressed regions, but with the exception of the simplest (trade) SEZs, their role goes beyond the resolution of local problems. It is expected that they will become points, poles of economic growth, having a powerful modernizing impact on adjacent territories, entire sectors of the national economy, as well as the country’s “gateway” to the world market, and will ensure a significant influx of foreign currency. Therefore, the criteria for choosing the location for creating a SEZ are: favorable geographical location; availability of production factors (labor and material resources) and availability of infrastructure; proximity to international trade centers and markets.

The development of SEZs targeting foreign capital requires a particularly favorable investment climate created through a system of benefits: fiscal, financial and administrative. Each type of SEZ is characterized by its own set of benefits and incentives 5 . The most common tax preferences include: complete exemption from customs duties and other fees on the import of equipment, raw materials and components necessary for organizing production; tax “holidays” for paying income tax for foreign investors, and subsequently a reduced level of taxation; full or partial exemption of legal entities from most other direct and indirect taxes; benefits for depreciation write-offs. Great value They also have financial incentives: subsidies for loans and rent, preferential tariffs for utilities.

Investors in relatively large multifunctional SEZs they enjoy tax benefits from both the central and local budgets. This involves the introduction of a special budget regime for administrative-territorial units (city, region) within which the zones are located. Local authorities are vested with expanded budgetary and other powers. If the boundaries of the zone coincide with the boundaries of an administrative-territorial unit, for example, a city, the mayor of the latter simultaneously becomes the head of the zone administration, and the city budget becomes the zone budget. The zone administration is directly subordinate to the government department at the center that controls the development of these zones.

In addition, in order to speed up the creation of zones, local authorities may be provided with a budgetary benefit such as temporary withholding of national and regional taxes collected on their territory. Central and regional authorities can also partially compensate for initial losses in local budget revenues from tax and other benefits provided to zonal enterprises. But, as the experience of successfully functioning zones shows, these losses are more than compensated by revenues to their budgets as a result of the general intensification of investment and consumer demand in their territories.

11. Public debt servicing

11.1. Economic content of public debt

The Budget Code of the Russian Federation (Article 97) gives the following definition: the state debt of the Russian Federation is the debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law.

From the above definition it follows that it is necessary to distinguish not only between state internal and external debt, but also national debt (debt of the Russian Federation and municipalities).

State and municipal debt is the total amount of debt of the Russian Federation and municipalities for outstanding loans and unpaid interest on them.

The economic purpose of public debt, formed from financial borrowings of the state, is to ensure financing of government expenditures in the event of a shortage of budgetary funds.

The main form of government borrowing is government credit, which is a set of credit relations in which the borrower is the state, and the lenders are individuals and legal entities.

Taking into account the scope of loans, debt is divided into internal and external, state and municipal.

In accordance with the Law of the Russian Federation “On the State Internal Debt of the Russian Federation” dated November 13, 1992 No. 3877-1, the state internal debt of the Russian Federation is the debt obligations of the Government of the Russian Federation, expressed in the currency of the Russian Federation.

Debt obligations of the Russian Federation may be in the form of:

A) government loans carried out through the issue of securities on behalf of the Government of the Russian Federation;

B) loans received by the Government of the Russian Federation;

C) other debt obligations guaranteed by the Government of the Russian Federation.

Public debt is the total amount of government debt for outstanding loans and unpaid interest on them.

Government loans as a form of public credit are characterized by the fact that temporarily free funds of individuals (population) and legal entities (organizations and enterprises) are attracted to finance government expenses. Attracting temporarily available funds in the form of a government loan is carried out by issuing and selling bonds, treasury obligations and other types of government securities.

Domestic public debt is the amount of debt on issued and outstanding government securities placed on the territory of the Russian Federation, including the costs of repayment and payment of large income.

A bond is the most common type of security. It is a government debt obligation and gives its owner the right to receive back the amount of the debt with interest after a certain period.

Bonds are debt obligations of the state, local governments and organizations, usually issued in large quantities. They are evidence that the body that issued them is a debtor and undertakes to pay interest on it to the owner of the bond for a certain time, and upon the maturity of the payment, to repay its debt to the owner of the bond. In either case, the bond represents debt and the holder is a creditor (not a co-owner like a shareholder). According to Russian legislation, a bond is an issue-grade security that secures the right of the holder of this security to receive from the issuer of the bond within the prescribed period its nominal value and the percentage of this value fixed in it.

Debt on government loans in which the state is the borrower is included in the amount of the country's government debt.

According to the method of placement, government loans are divided into groups: freely tradable bonds placed by subscription.

Bonds that are freely placed on the loan capital market are usually freely placed through the system of commercial banks (savings and joint stock).

The main subscribers of bonds for government loans are organizations, special funds, banks, and insurance companies.

In addition to bonds, securities used to mobilize monetary resources also include other securities that are provided for by the Law of the Russian Federation “On the State Internal Debt of the Russian Federation.”

Article 75 of the Constitution of the Russian Federation emphasizes that government loans are issued in the manner determined by Federal Law and are placed on a voluntary basis.

In recent years, the main role in the securities market has been given to government bonds, the issuer of which is a government agency - the Ministry of Finance of the Russian Federation.

The most common types of government bonds are:

Firstly, government short-term zero-coupon bonds (GKOs). The decision to issue GKOs is made by the Ministry of Finance of the Russian Federation. When making a decision on the issue of state bonds, the maximum volume, the period of its placement and potential owners are determined. The Central Bank of Russia is an agent of the Government of the Russian Federation for servicing the issue of GKOs and guarantees their timely repayment.

Bonds (GKOs) are purchased by the Bank of Russia from the Ministry of Finance of the Russian Federation within the limit determined by the Federal Law on the State Budget.

The Central Bank of Russia purchases bonds on the primary market from the Ministry of Finance of the Russian Federation:

1) when providing the Ministry of Finance of the Russian Federation with a direct short-term loan in the form of purchasing bonds;

2) when providing a loan to cover cash gaps arising in the process of selling and repaying bonds.

On behalf of the Ministry of Finance of the Russian Federation, the Central Bank of Russia carries out the sale of government bonds on the primary market through commercial banks, the purchase and sale of bonds on the secondary market on its own behalf, as well as operations to repay bonds.

The conclusion of transactions for the purchase and sale of bonds on the primary market is organized on the Moscow Interbank Currency Exchange (MICEX) on the basis of an agreement between the Central Bank of Russia and the MICEX. The sale of these bonds on the MICEX is carried out through auctions (on the primary market) or auctions (on the secondary market) of bonds.

Government short-term bonds are not issued in the form of paper forms. Each issue is issued with a certificate stored in the Central Bank of Russia. Redemption of these bonds is carried out in non-cash form by transferring to the owners of the bonds their nominal value at the time of redemption. Income on GKOs is considered to be the difference between the nominal price at the time of redemption and the purchase price.

Secondly, bonds of the State Savings Loan of the Russian Federation. The issuer of this type of bonds is the Ministry of Finance of the Russian Federation. Bonds are issued for a period of one year to bearer. Each bond has 4 coupons of 3 months. Interest income on the coupon is determined by the Ministry of Finance of the Russian Federation. Bonds are sold by commercial banks at market prices.

When bonds are redeemed, owners are paid the face value of the bond and interest on the last coupon. The buyer of a bond acts as a lender, since issuing bonds is a form of borrowing money. However, a loan provided by purchasing bonds differs from a bank loan in the following circumstances:

1) when issuing a bond issue, a commercial bank does not act as a creditor, but, as a rule, only an intermediary acting on behalf of another legal entity;

2) a significant number of legal entities and individuals, and not just one client, participates in the acquisition of issued bonds as a creditor.

The government raises bond debt mainly for two purposes:

1) to finance the current budget deficit;

2) to repay previously issued bond loans by the government.

Thirdly, in order to attract borrowed funds, the government can issue lottery-type bonds. Income from lottery bonds is paid in the form of winnings on individual bonds when the winnings are drawn.

Bonded loans in the form of a lottery type are issued both by state federal bodies and by bodies of constituent entities of the Federation and local governments.

Fourthly, to attract funds, the state can issue treasury bonds of the Russian Federation (KO). Unlike bonds, they can only be sold to the public. KO is an interest-bearing government security, the rate of return is established by the Government of the Russian Federation.

Along with government loans the state attracts part of the population's deposits in the Savings Bank in the form of a loan on the basis of an agreement.

In 1991, bonds of the State Republican Internal Loan of the RSFSR were issued for a period of 30 years (from July 1, 1991 to June 30, 2021) at 5% per annum. The bonds were sold only among legal entities. The loan was issued as freely tradable; the bonds could be resold through institutions of the Bank of Russia. The entire loan was purchased by the Central Bank of Russia. As of December 1, 1990, the public debt on this loan amounted to 30 billion rubles. In the 90s, part of the loan debt was repaid from the budget.

In 1993, the Ministry of Finance of the Russian Federation issued gold certificates. The denomination of the certificate was 10 kg of 0.9999 purity gold. The volume of issue of gold certificates was determined in an amount equivalent to the cost of 100 tons of gold. The cost of the certificate was converted into rubles at the Bank of Russia exchange rate. Gold certificates were bought by commercial banks with the right to sell certificates.

An external (international) government loan is a loan in which the state acts as a borrower on the world market.

The amount of external borrowings received with accrued interest is included in the country's public debt.

The main creditors of Russia are foreign developed countries, international financial organizations - the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the European Bank for Reconstruction and Development (EBRD).

The following trend is observed: the worse the economic situation in industry and agriculture, the more the state borrows funds, increasing the volume of public debt, and debt obligations in various forms grow.

The debt of government bodies to the owners of government securities accumulates and turns into government debt. It has to be repaid with interest.

Government debt in different countries growing at different rates. The excess of public debt over GDP is considered potentially dangerous for sustainable monetary circulation. A more conservative estimate is the ratio of these two indicators as 0.6: 1.

In 1998, public debt in relation to GDP was: in the USA - 62%, in Germany - 62, in France - 59, in the UK - 52%.

In Russia, public debt is estimated at 60%.

^ 11.2. Forms of debt obligations

According to Russian legislation, debt obligations of the Russian Federation can exist in the form of:

♦ credit agreements and contracts concluded on behalf of the Russian Federation with credit organizations, foreign states and international financial organizations, in favor of the specified creditors;

♦ government securities issued on behalf of the Russian Federation;

♦ agreements on the provision of state guarantees of the Russian Federation, agreements of guarantee of the Russian Federation to ensure the fulfillment of obligations by third parties;

♦ re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;

♦ agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of the Russian Federation of previous years.

In terms of duration, the debt obligations of the Russian Federation can be short-term (up to one year), medium-term (from one to five years) and long-term (from 5 to 30 years).

Debt obligations of the Russian Federation are repaid within periods that are determined by the specific terms of the loan and cannot exceed 30 years. Changing the terms of a government loan issued for circulation, including the terms of payment and the amount of interest payments, the circulation period, are not allowed.

The volume of public internal debt of the Russian Federation includes:

♦ the principal nominal amount of debt on government securities of the Russian Federation;

♦ the volume of debt on loans received by Russia;

♦ the volume of principal debt on budget loans and budget credits received by the Russian Federation from budgets of other levels;

♦ the volume of obligations under state guarantees provided by Russia.

Debt obligations of a subject of the Federation may exist in the form (Article 99 of the Budget Code of the Russian Federation):

♦ credit agreements and contracts concluded on behalf of a constituent entity of the Russian Federation with individuals and legal entities, credit organizations, foreign states, international financial organizations, in favor of these creditors;

♦ government loans of the constituent entities of the Federation, carried out by issuing securities of the constituent entity of the Federation;

♦ agreements on the provision of state guarantees of a subject of the Federation, guarantee agreements of a subject of the Federation to ensure the fulfillment of obligations by third parties;

♦ re-registration of debt obligations of third parties into the state debt of a subject of the Federation on the basis of the adopted laws of the subject of the Federation;

♦ agreements and treaties, including international ones, concluded on behalf of the constituent entities of the Federation, on the prolongation and restructuring of debt obligations of the constituent entities of the Federation of previous years.

Debt obligations of a constituent entity of the Federation are repaid within periods determined by the terms of borrowing and cannot exceed 30 years.

Municipal debt is the totality of debt obligations of a municipality.

Debt obligations of a municipality can exist in the form of:

♦ loan agreements and contracts concluded by the municipality;

♦ municipal loans (municipal loans), carried out by issuing securities on behalf of the municipality;

♦ agreements on the provision of municipal guarantees, municipal guarantee agreements to ensure the fulfillment of obligations by third parties;

♦ debt obligations of legal entities converted into municipal debt on the basis of legal acts of local governments.

Local governments use all their powers to generate local budget revenues to pay off their debt obligations and service debt.

Debt obligations of a municipality are repaid within a time frame that is determined by the terms of borrowing and cannot exceed 10 years.

^ 11.3. Budget expenditures for servicing and repaying public debt

The Russian Government’s excessive enthusiasm for loans began to have a negative impact on the budget, and, consequently, on the financing of sectors of the economy and the social sphere.

The rapid increase in budget expenditures associated with servicing internal and external public debt indicates that public debt did not decrease and in some years even increased.

Paying interest on a debt and gradually repaying the principal amount is called debt service (debt service).

In total federal budget expenditures in 2000, expenses related to servicing the public debt amounted to 25.7%.

Expenses for servicing the public debt in the federal budget in 2001 amounted to a huge amount - 239.8 billion rubles, including servicing the state internal debt - 56.6 billion rubles. and government external debt - 183.2 billion rubles.

The Russian federal budget for 2003 provides for expenses for servicing state and municipal debt of 277.5 billion rubles, including 57.4 billion rubles for servicing internal debt. and government external debt - 220.1 billion rubles.

Servicing of the state internal debt of the Russian Federation is carried out by the Bank of Russia and its institutions, unless otherwise provided by the Government of the Russian Federation, through operations for the placement of debt obligations of Russia, their repayment and payment of debts in the form of interest on them or otherwise form.

Execution by the Bank of Russia, other specialized financial institution The functions of the general agent of the Government of the Russian Federation for the placement of debt obligations of the Russian Federation, their repayment and the payment of income in the form of interest on them are carried out on the basis of special agreements concluded with the federal executive body authorized by the Government of the Russian Federation to perform the functions of an agent.

When analyzing the costs of servicing public debt in the 90s, such a trend is observed.

With a lack of tax and non-tax funds to generate budget revenues, the state uses its capabilities to attract additional financial resources by borrowing funds, accumulating debt, which leads to an increase in public debt.

The worse the situation with the state budget, the greater its deficit, the greater the volume of borrowings, and the increase in the volume of public debt. The deeper the financial crisis in a country, the higher the share of costs for servicing public debt in budget expenditures.

The more Russia pays on external debts, the less money the state has left for social policy, education, medical care, and defense orders. It is no longer possible to ignore the problem of the debt burden. Today, Russia's internal and external public debt fluctuates around the figure of 150 billion dollars. The government in the 90s borrowed money without taking into account debts and the possibility of their repayment.

In the 90s, Russia's public debt increased, reaching more than $70 billion in 2000 (domestic debt). By 2000, external public debt exceeded $150 billion. Overdue payments on external debt in 2001 amounted to $14.2 billion.

During the discussion of the federal budget for 2002 in State Duma The Ministry of Finance announced the following figures for our country’s payments on external debts:

In 2001 - 14.2 billion dollars;

In 2002 - 14.2 billion dollars;

In 2003 - 19.6 billion dollars;

In 2004 - 16.0 billion dollars;

In 2005 - 18.0 billion dollars;

Total for 5 years - 82.0 billion dollars.

This is a huge amount of accumulated debt. Let us recall that the entire Russian budget in terms of income is only 60 billion dollars, i.e., over the five-year period, the country is forced to work for 1.5 years only to repay loans from previous years.

Russia's debt is decreasing too slowly. If Russia pays off its debts every year without delays, then the process of paying off debts will drag on until 3030 and, moreover, it will be necessary to repay 250 billion dollars (including interest).

In order to more successfully solve the debt problem, it is necessary to more effectively manage this process and use reserves to reduce external debt.

^ 11.4. State and municipal debt management

Management is inherent in all spheres of human activity, including financial. Management is understood as a conscious and purposeful influence on the object of control using a set of techniques and methods to achieve a certain result. Management is based on knowledge of the objective laws of development of nature and society. At the same time, management is greatly influenced by the state represented by the relevant structures, as well as legislative acts.

An important area of ​​management activity is public debt management.

Management of the public debt of the Russian Federation is carried out by the Government of the Russian Federation, which can apply management actions within the powers established Federal Assembly RF.

Management of the public debt of a subject of the Federation is carried out by the executive authority of the subject of the Federation.

Municipal debt management is carried out by an authorized local government body.

The right to carry out state external borrowings of the Russian Federation and conclude agreements on the provision of state guarantees, agreements on guarantee by another borrower to attract external credits (loans) belongs to the Federation. On behalf of the Federation, the Government of the Russian Federation or a responsible federal executive body authorized by the Government of the Russian Federation can carry out external borrowings.

Subjects of the Federation, whose budgets do not receive financial assistance to equalize the level of budgetary security, have the right to carry out government external borrowings in accordance with the legislation of the Russian Federation.

The Federal Assembly of the Russian Federation, by the Law on the Federal Budget for the next financial year, approves the maximum volumes of state internal debt and state external debt, the limits of external borrowings of the Federation.

So, for example, in the federal budget for 2001, the upper limit of the state internal debt of the Russian Federation as of January 1, 2002 is provided for the debt and target obligations of the Russian Federation in the amount of 640.7 billion rubles, and the upper limit of the state external debt of the Russian Federation - in the amount 148.2 billion US dollars, the maximum amount of government external borrowing for 2001 is 4.0 billion US dollars.

The maximum volume of government external borrowings of the Russian Federation should not exceed the annual volume of payments to service the public external debt of the Russian Federation.

The Government of the Russian Federation has the right to borrow in excess of the statutory limit on the volume of public debt instead of external borrowing, if this reduces the cost of servicing the public debt within the framework of the volume of public debt established by law. The Government of the Russian Federation also has the right to carry out external borrowing in an amount exceeding the maximum amount of borrowing established by law, if at the same time the Government carries out such a restructuring of public external debt, which leads to a reduction in the cost of servicing it, within the established maximum amount of state debt. - gift external debt.

Typically, debtor countries take all possible measures to avoid becoming hopeless debtors. The traditional measure is to pay off debts using gold and foreign exchange reserves. But if these reserves are exhausted or limited, there are other ways.

Debt restructuring (consolidation) of external debt with the consent of creditors is important in debt management.

Debt restructuring refers to the repayment of debt obligations with the consent of creditors with installment payment (i.e., acceptance of other debt obligations) in the volume of repaid debt obligations with the establishment of other conditions for servicing debt obligations and repayment terms (revision of payment terms, writing off part of the debt).

The Government of the Russian Federation from time to time negotiates on the restructuring of debt payments with the London Club of Creditors and the Paris Club of Creditors and the International Monetary Fund, the European Bank for Development and Restructuring.

The London Club united creditor banks from different countries (approximately 600 banks).

The Paris Club brought together creditor states and supplying firms.

The right to manage public debt on behalf of a subject of the Federation belongs to the executive authorities of the subject of the Federation.

The maximum volume of government borrowing of a subject of the Federation is established by the law of the subject of the Federation on the budget for the next financial year (an upper limit on the debt of a subject of the Federation must be established).

The maximum volume of public debt of a constituent entity of the Russian Federation should not exceed the volume of budget revenues without taking into account financial assistance from budgets of other levels.

Management of municipal debt is the responsibility of the authorized local government body. At the same time, the subjects of a municipal formation are not liable for the debt obligations of other municipalities, as well as subjects of the Federation.

A municipality can use internal borrowing to cover its budget deficit.

The upper limit of municipal debt is established by a legal act of the local government on the local budget for the next financial year.

In order to manage the public debt and reduce it, a program of government external borrowings of the Russian Federation is being developed.

The program of state external borrowings of the Russian Federation is a list of external borrowings of the federal budget for the next financial year, indicating the purpose, sources of borrowings, deadlines for repayment of borrowings, the volume of loan funds used before the start of the financial year and the volume of borrowings in the financial year .

The program of government external borrowings of the Russian Federation must separately provide for all loans and government guarantees, the value of which exceeds an amount equivalent to 10 million US dollars for the entire term of the loan (Article 108 of the Budget Code of the Russian Federation). These loans and government guarantees are subject to implementation only if they are approved as part of the Program of State External Borrowings of the Russian Federation by the Federal Assembly of the Russian Federation.

A program of state internal borrowings of the Russian Federation, constituent entities of the Federation and municipalities is also being developed. It is a list of internal borrowings of the Russian Federation, constituent entities of the Federation, and municipalities for the next financial year to cover the deficit.

All budget receipts from borrowings, including funds spent on servicing and repaying state or municipal debt, are reflected in the budget as sources of financing the budget deficit.

A unified system of accounting and registration of state borrowings of the Russian Federation, state borrowings of constituent entities of the Russian Federation and municipal borrowings is being introduced in Russia.

Subjects of the Federation and municipalities register their borrowings with the Ministry of Finance of the Russian Federation.

The Ministry of Finance of the Russian Federation, constituent entities of the Federation, municipalities maintain state books of internal and external debt of the Russian Federation (state debt books of the Russian Federation).

Information on the volume of debt obligations of the Russian Federation, constituent entities of the Federation and municipalities is entered into the state debt book of the Russian Federation (in the Ministry of Finance of the Russian Federation).

Now it is very difficult to refuse or unilaterally delay the repayment of debts. This would mean showing Russia's insolvency to the whole world, which would have a negative impact on import operations.

The current situation dictates the need to pay serious attention to strengthening efforts to repay loans to Russia, those loans that it provided to foreign countries. According to some estimates, foreign countries owed Russia about 100 billion dollars in 1996.
^ 12. Financial support for subjects of the Federation and municipalities

12.1. Principles of interbudgetary relations

Budgetary relations between government bodies of the Russian Federation and constituent entities of the Federation and local governments regarding financial support are built on the basis of certain principles characteristic of fiscal federalism.

Interbudgetary relations are based on the following basic principles:

♦ independence of budgets at all levels of the budget system of the Russian Federation,

♦ balancing the interests of all participants in interbudgetary relations;

♦ equality of budgetary rights of the subjects of the Federation, municipalities in relations with the federal budget;

♦ legislative delimitation of income sources between budgets;

♦ equalization of the levels of minimum budgetary provision;

♦ unity of the budget system of the Russian Federation;

♦ transfer of certain types of expenses from the federal budget to territorial budgets;

♦ funds transferred to the budget of one level from the budget of another level to ensure state powers are taken into account in the corresponding budget as income in the form of gratuitous transfers.

During the financial year, legislative and executive authorities, as well as representative authorities of local self-government, refrain from making decisions that lead to an increase in budget expenditures at other levels, with the exception of cases in connection with emergencies and natural disasters.

The basis for calculating financial assistance to territorial budgets are the standards of financial costs for the provision of financial services and the standards of minimum budgetary provision, determined on the basis of a unified methodology, taking into account the socio-economic, geographical, climatic and other characteristics of the constituent entities of the Federation.

Financial support for the subjects of the Federation is provided in the forms established by the legislation of the Russian Federation.

^ 12.2. Forms of financial support for subjects of the Federation, their characteristics

Financial support (also financial assistance) is aimed at providing financial assistance to the budget of a constituent entity of the Federation from the federal budget of the Russian Federation due to the imbalance of the territorial budget (usually a budget with an excess of expenses over income, i.e., a budget deficit).

In the second half of the 90s, 10 - 14% of the gross domestic product (according to the revenue side of the federal budget) was redistributed through the federal budget in Russia.

Due to the fact that tax revenues cannot cover all the expenses of individual regional and local budgets, higher-level budgets provide financial assistance to lower-level budgets. And the more budgets depend on such financial support, the more problems arise in interbudgetary relations.

In accordance with Art. 44 and 133 of the Budget Code of the Russian Federation, the provision of financial assistance from the federal budget to the budgets of the constituent entities of the Federation can be carried out in the following forms:

♦ provision of subsidies to equalize the level of minimum budgetary provision of the constituent entities of the Federation;

♦ provision of subsidies;

♦ provision of subventions to finance specific targeted expenses;

♦ providing a budget loan;

♦ other irrevocable and gratuitous transfer of funds. Financial assistance in any form is subject to inclusion in the income of the budget that is the recipient of these funds.

Let's look at what each of these forms of financial assistance is.

Subsidy - budget funds provided to the budget of another level of the Russian budget system on a free and non-refundable basis to cover current expenses.

Subsidy (help, support) - budget funds provided to the budget of another level of the Russian budget system, as well as to individuals or legal entity on the terms of shared financing of target expenses.

Subvention - budget funds provided to the budget of another level of the Russian budget system or to a legal entity for the implementation of certain targeted expenses.

One of the main ways of transferring funds from a higher budget to a lower budget is deductions as a percentage of taxes assigned to the higher budget.

The list and rates of federal taxes are determined by Russian legislation, and the proportions of their distribution in the order of budget regulation between budgets of different levels of the Russian budget system are approved by the Federal Law on the Federal Budget for the next financial year for a period of at least three years.

This form of financial assistance has existed for decades. This form of assistance has advantages, one of which is the unity of budget sources for all budgets and the interest of authorities at all levels in their more complete mobilization.

If the territory's budget does not have sufficient tax deductions to budget revenue and does not have the opportunity to balance the budget through tax deductions, then other forms of financial assistance are used (subsidies, subsidies, budget loans).

^ 12.3. Subventions to regions from the federal budget

The Law of the Russian Federation “On subventions to the republics of the Russian Federation, territories, regions, autonomous okrugs, the cities of Moscow and St. Petersburg” dated July 15, 1992 provides for two types of subventions: 1) current, which include subventions , allocated to finance current expenses; 2) targeted investment subventions aimed at financing investment and innovation activities.

At the same time installed special conditions and the procedure for providing current and targeted investment subventions.

Current subventions are provided to equalize the conditions for financing regions, covering the deficit of lower-level budgets at the expense of funds from higher-level budgets.

In this case, priority is given to financing general government social expenses, which include current expenses for socio-cultural events, maintenance of budgetary organizations and social protection of the population.

Investment targeted subventions are intended to finance, from the federal budget and the budgets of the constituent entities of the Federation, capital investments for the development of social infrastructure, environmental protection, and integrated development of territories.

Current and investment targeted subventions received from the federal budget are included, respectively, in the budgets of the constituent entities of the Federation (regional, regional budgets, budgets of autonomous entities).

The volume of distribution of the subvention fund for investments and current investments from the federal budget is carried out on the basis of requests from the authorities of the constituent entities of the Federation.

The use of subsidies for investments does not lead to a change in the form of ownership of the objects built with their help.

Subventions for reimbursement of unforeseen expenses associated with the liquidation of the consequences of natural disasters, catastrophes, epidemics, floods and other emergencies are provided from the reserve funds of the Government of the Russian Federation and the reserve funds of the governments of the constituent entities of the Federation. The body that provided financial assistance has the right to control its use.

Subventions that are not used on time or spent for other purposes must be returned. The decision to return the subvention is made by the body that provided it. The return of the subvention is carried out in an indisputable manner at the expense of the recipient of the subvention within three months after the decision is made.

^ 12.4. Help from the State Financial Support Fund

The initial legal act of providing state financial assistance to regions in the form of transfers was Decree of the President of the Russian Federation of December 22, 1993 No. 2268. For this purpose, the Fund for State Financial Support of the Subjects of the Federation was created, which has been preserved to the present day.

The Law of the Russian Federation “On the Federal Budget for 2002” dated December 29, 2001 No. 192-FZ approved the amount of financial assistance to the constituent entities of the Russian Federation from the Federal Fund for Financial Support of the Subjects of the Russian Federation in 2002 - 147.49 billion rubles, including:

A) subsidies to equalize the level of budgetary provision of constituent entities of the Russian Federation - 135.93 billion rubles;

B) subsidies for state financial support for the purchase and delivery of oil, petroleum products, fuel and food products (except for excisable ones) to the regions of the Far North and equivalent areas with limited terms for the delivery of goods to supply the population, enterprises and social organizations and housing and communal services - 8.96 billion rubles;

C) subventions to compensate electricity tariffs for the territories of the Far East and the Arkhangelsk region - 2.6 billion rubles.

Funds from the Federal Fund for State Financial Support of Subjects of the Federation are distributed among regions in need of support, i.e., regions in which the average per capita income level in their budgets is lower than the average per capita income in the budgets of all subjects of the Federation, and expenses for individual events higher (for example, for the delivery of goods and fuel to the Far North).

Distribution of funds from the Federal Fund for Financial Support of Subjects of the Federation (in the form of transfers) is carried out according to a unified methodology that takes into account budget revenues and the population living in the territory of the subject of the Federation.

Regional financial support funds can also be created in the constituent entities of the Federation.

The provision of financial assistance to budgets is regulated by law; financial assistance is provided subject to a number of conditions:

1. Financial assistance from the federal budget to the budget of a constituent entity of the Russian Federation to equalize the level of minimum budgetary provision is provided subject to the signing of an agreement on the execution of the budget of a constituent entity of the Russian Federation through the Federal Treasury of the Russian Federation.

2. A subject of the Federation that is a recipient of financial assistance from the federal budget to equalize the level of minimum budgetary provision does not have the right to:

♦ to place civil servants in better conditions at the expense of budget funds (salaries, travel and other expenses) compared to civil servants of federal institutions (taking into account regional wage coefficients);

♦ provide budget loans to legal entities exceeding 3% of the budget expenditures of a constituent entity of the Federation;

♦ provide state guarantees of the subject of the Federation in an amount exceeding 5% of the budget expenditures of the subject of the Federation;

3. A municipal entity that is a recipient of financial assistance from the budget of a constituent entity of the Federation to equalize the level of minimum budgetary provision does not have the right to:

♦ to place municipal employees financed from the local budget in better conditions (wages, travel and other expenses) compared to civil servants of institutions of the constituent entities of the Federation (taking into account regional wage coefficients);

♦ provide budget loans to legal entities in an amount exceeding 3% of local budget expenditures;

♦ provide municipal guarantees in an amount exceeding 5% of local budget expenditures.

All budgets are drawn up and executed on the basis of the principle of priority financing of expenses associated with ensuring minimum state social standards with the unconditional fulfillment of debt obligations. Until funding for minimum state social standards is ensured at the level of minimum budgetary provision, the draft budget cannot include expenses (during the implementation of the budget, expenses cannot be financed) that are not related to the achievement of minimum state social standards , or expenses ensuring the financing of certain state social standards are above the minimum level while others are underfunded with the unconditional fulfillment of debt obligations.

When providing financial assistance to the budget of a subject of the Federation, the authorized body of state power of the Russian Federation has the right to audit the budget of the subject of the Federation - the recipient of financial assistance from the federal budget. When subjects of the Federation receive financial assistance in an amount exceeding 50% of the expenditures of its consolidated budget, an audit of the budget of the subject of the Russian Federation is carried out without fail. An audit of the budget of a subject of the Federation can be carried out by the control body of the Ministry of Finance, the Accounts Chamber of the Russian Federation.

^ 12.5. Providing budget loans to subjects of the Federation to finance cash gaps

In financial practice, such a form of financial assistance as a budget loan is also used, which refers to budget funds provided to another budget on a repayable or non-repayable basis for a period of no more than six months within a financial year.

Subjects of the Federation have the right to attract targeted budget loans to finance cash gaps due to the seasonal nature of costs or the seasonal nature of income receipts for a period of up to six months on reimbursable and gratuitous terms. The purposes of providing these loans, the terms of payment and repayment of targeted budget loans to the constituent entities of the Federation are determined by the Federal Law on the Federal Budget for the next financial year.

The local budget may be provided with budget loans from the budget of a constituent entity of the Federation to cover temporary cash gaps that arise during the execution of the local budget.

The procedure and conditions for providing budget loans from the budget of a constituent entity of the Federation are determined by the executive authorities of the constituent entity of the Federation in accordance with the Budget Code of the Russian Federation and the Law on the Budget for the next financial year.

When providing financial assistance to local budgets, the government body of a constituent entity of the Federation has the right to:

1. The authorized government body of a constituent entity of the Russian Federation has the right to conduct an audit of the local budget of the recipient of financial assistance from the budget of a constituent entity of the Russian Federation.

2. An audit of the budget of a municipal entity can be carried out by the financial control body of the executive branch or the control body of a subject of the Russian Federation. The conclusion of the control body of a subject of the Russian Federation is announced when the legislative body of the subject of the subject of the Russian Federation considers the draft budget of the subject of the Russian Federation.

3. State authorities of the constituent entities of the Russian Federation exercise control over the expenditure of funds received by local budgets from the budgets of the constituent entities of the Russian Federation.

The federal law on the federal budget may provide financial assistance to local budgets to finance targeted expenses provided for by federal targeted programs.

The formation of the budget of a closed administrative-territorial entity is carried out taking into account the following features:

♦ all types of federal, regional and local taxes and other revenues accumulated on its territory are allocated in full to the budget revenues of a closed administrative-territorial entity;

♦ if there is insufficient own and regulated income to the budget of a closed administrative-territorial entity, subsidies are allocated from the federal budget to finance expenses related to the functioning of local government bodies;

♦ the excess of income over expenses of the budget of a closed administrative-territorial entity is not subject to withdrawal to the budgets of other levels;

♦ execution of the budget of a closed administrative-territorial entity is carried out by the Federal Treasury of the Russian Federation.

Servicing of the state internal debt of the Russian Federation is carried out by the Bank of Russia and its institutions through operations for the placement of debt obligations of the Russian Federation, their repayment and the payment of income in the form of interest on them or in another form.
The performance by the Bank of Russia of the functions of the general agent of the Government of the Russian Federation for the placement of debt obligations, their repayment and the payment of income in the form of interest on them is carried out on the basis of special agreements concluded with the federal executive body authorized by the Government of the Russian Federation to perform the functions of an issuer of government securities.
The Bank of Russia performs the functions of a general agent for servicing government internal debt free of charge.
Payment for the services of agents for placement and servicing of public debt is carried out at the expense of federal budget funds allocated for servicing public debt.
Servicing of the state internal debt of a constituent entity of the Russian Federation and municipal debt is carried out in accordance with federal laws, laws of a constituent entity of the Russian Federation and legal acts of local governments.
Information on debt obligations is entered by authorized bodies into the State Debt Book of the Russian Federation, the state debt book of a constituent entity of the Russian Federation or the municipal debt book within a period not exceeding 3 days from the moment the obligation arises.
Information entered into the municipal debt book is subject to mandatory transfer to the body maintaining the state debt book of the corresponding subject of the Russian Federation, then this information is transferred to the body maintaining the State Debt Book of the Russian Federation in the manner and within the time limits established by this body. The State Debt Book of the Russian Federation contains information about the volume of debt obligations of the Russian Federation, the date of occurrence of obligations, forms of securing obligations, the fulfillment of these obligations in whole or in part, and other information.
The state debt book of a constituent entity of the Russian Federation includes information on the volume of debt obligations of a constituent entity of the Russian Federation for all state borrowings of a constituent entity of the Russian Federation, the date of borrowing, forms of securing obligations, the fulfillment of these obligations in whole or in part, as well as other information, the composition of which is established by the executive authority of the constituent entity RF.
The municipal debt book contains information on the volume of debt obligations of municipalities, the date of borrowing, forms of security for obligations, the fulfillment of these obligations in whole or in part, as well as other information, the composition of which is established representative body local government.