05:06 GMT +323 October 2018
Listen Live
    Onlinenews (archive)

    RUSSIAN FINANCE MINISTRY TO WORK ON THE BASIS OF 3-YEAR PLAN

    Onlinenews (archive)
    Get short URL
    0 0 0
    MOSCOW, April 14 (RIA Novosti) - Russia's finance ministry suggests fixing the prospective three-year finance plan by a government resolution, and later, by a special law. This is said in the materials of the ministry prepared for the Russian government's session, scheduled for Thursday, at which a concept of the budget process reformation will be considered.

    "To pursue a consistent, purposeful policy in its sphere, each ministry must see and plan its expenditures at least for three years," the materials emphasize.

    "At present, as part of the annual budget process, the government is considering a prospective finance plan for three years, but it is of a reference character," note finance ministry experts. "The completion of delimitation of authorities and revenue sources between the budgets of different levels will create basic prerequisites for the increase of the horizon of budget planning." The budget process reformation concept suggests approving the prospective finance plan "at first by a government resolution, and later, probably, by a law, with allocation of budgets of current and undertaken obligations and distribution of current obligations between the main managers of budget funds." The legislative approval of the finance plan "does not mean at all that its parameters must surely enter the budget of the corresponding year," the finance ministry materials read.

    It is supposed that the budget of the first year should not deviate much from the forecast. "As for the second and third years, their drafts are of an indicative nature and are used only as a reference point while developing and approving the next finance plan," the materials say.

    The suggested measures will make it possible to realize the so-called principle of a "sliding three-year plan," in line with which, each budget cycle will have another, third year of the planning period, and the drafts of the first and second years will be based on an earlier made forecast.

    "Thus, despite the fact that there are formally no restrictions in regard to an annual revision of the earlier approved parameters, the prospective finance plan turns out rather stable," the finance ministry notes.

    "International experience shows that this technique substantially increases the quality of budget planning," say the materials.

    To use this method to the full extent, a number of prerequisites are necessary. One of them has already been created. It's the Stabilization Fund that allows to protect the budget from unpredictable changes of external conditions. "The main [prerequisite] is reliable macroeconomic forecasting, and there's a lot to do here," the materials emphasize.

    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment