BUDGETARY EXPENDITURE MANAGEMENT EFFICIENCY: INTERNATIONAL PRACTICE AND RUSSIAN PRACTICE BUSINESS SESSION OUTCOME

As can be seen from international practice, various states have different systems of budgetary expenditure management. The best world practices and the possibility of their adaptation to the Russian context were discussed at a respective session on September 13.

“Russia is just beginning to manage budgetary expenditure”, session moderator, General Director of ECCONIS Consulting Company Olga Yastrebova believes. This kind of management is one of the pressing matters of the fiscal policy.

As Head of the Division of Public Finance Management of the Fiscal Department of the International Monetary Fund Karolina Renteria remarked, “Of course, any changes are always a complicated process that triggers counteraction but so long as the budget process is a step process, we can look back and see whether our objectives match what we are currently doing. Thus, we can monitor and adjust resource expenditure”. 

Foreign speakers believe that state programs play an important role in budgetary expenditure management. “There should always be a program. One should always look for a new innovative policy. The budgetary expenditure review should match the targets set”, Senior Advisor of the Strategic Analysis Department of the Directorate General for Budget of the Ministry of Finance of the Netherlands Mieke Van Den Heuvel de Grote reported.

Today, state programs in Russia are rather formalized documents than managerial tools, Deputy Minister of Finance of the RF Vladimir Kolychev believes. “When we see that tax benefits in the energy sector amount to 1.6 trillion rubles and direct expenses amount to RUR 10 bln, it would be rather inexpedient to evaluate the efficiency of 10 billion without addressing benefits. In these last two years, we have been implementing a large block related to tax expenses in order to establish some kind of control and accounting”, he said.
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