Journal section "Public finances"

Budgetary prospects in the region in 2014–2016: implementation of the President’s social decrees or avoidance of default risks?

Pechenskaya-Polishchuk M.A.

1 (31), 2014

Pechenskaya-Polishchuk M.A. Budgetary prospects in the region in 2014–2016: implementation of the President’s social decrees or avoidance of default risks?. Economic and Social Changes: Facts, Trends, Forecast, 2014, no. 1 (31), pp. 117-129. DOI: 10.15838/esc/2014.1.31.14

DOI: 10.15838/esc/2014.1.31.14

Abstract   |   Authors   |   References
According to the Budget Code the budget process in the Russian Federation includes the following stages: drafting of a budget project; consideration and approval of the budget; budget execution; preparation of a report on the budget execution and its approval. The given stages are carried out in a strict sequence and are closely interlinked. The approved budget is in force during the budget period, which in the Russian Federation lasts 12 months from January 1 to December 31. The budget is adopted for the mediumterm period of three years. On December 11, 2013 the Vologda Oblast Legislative Assembly members adopted the oblast budget for 2014 and for the planned period of 2015 and 2016 in the final reading. According to the Chairman of the Budget and Taxation Committee of the Vologda Oblast Legislative Assembly A.V. Kanaev, the project of the oblast budget is drafted in difficult economic conditions due to a negative impact of a significant public debt, a need to implement the May Decrees of the President and provision of local budgets balance. The article analyses the Vologda Oblast budget prospects for a three-year period. It is indicated that the regional budget for the upcoming budget cycle differs from the budgets of the previous years, since it is set in the program structure of expenses on the basis of 21 state programs approved by the Oblast Government. Budget execution is to reveal advantages and disadvantages of this innovation. The article states that the most significant risk for the regional budget system is a 2014 expected excess of the threshold limit of the state debt by 2% regarding to their own revenues volume. All the described above is to happen against the background of tensed inter-budgetary relations with the Federal Centre, caused by the decrease in revenue (in relation to gross domestic product) and the federal budget deficit rise. The article singles out key qualitative and quantitative properties of the budget cycle, which the region has entered since 2014. The complex of measures to increase the regional budget revenue base is suggested. It is calculated that the proposed measures implementation is to attract 9.5–13.6 billion rubles a year in the budget system of the Vologda Oblast. Such an increase in the own revenues of the budget is to cover 44% of social overhead costs


regional budget, transfers, deficit, inter-budgetary fiscal relations, regional debt, presidential decrees, programme budget

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