It is assumed that the coordination of fiscal policy will assume a President or a Prime Minister
Photo: NEWS/Paul Poor
In January, may be put an end to long-standing dispute about who forms the Russian budget and the goals it must meet. To solve this question is proposed through the creation of the Institute budget of the arbitrator. This will help to establish cooperation between the Ministry of Finance and Ministry of economic development to provide a budget that meets the challenges of economic growth. The idea, proposed by the interagency expert group, at the end of December was approved at the meeting of the scientific Council under the security Council of the Russian Federation.
As told “Izvestia” one of the participants of the meeting are currently being considered two ways of organizing the work budget of an arbitrator. Coordination of fiscal policy can take on either the President through his administration (if approved so-called “American model”) or the Prime Minister through the establishment of a special governmental Commission (“the British model”). Budget referee will serve as a conciliation body, which must “reconcile” the Ministry of Finance, traditionally limiting funding, and the agencies responsible for economic development. The aim of the Federal budget will be not a technical consolidation and GDP growth. Accordingly, the main financial document will set targets for development by specific industries, regions and projects, said the source “Izvestia”.
— Needs to be defined a clear objective of fiscal policy on the basis of the sources of economic growth: what regions, sectors and programs possible GDP growth. For example, the question on support of agricultural producers, automotive industry or logistics will be decided on the basis of specific forecast their contribution to the economic situation — explained the interlocutor of “Izvestia”. He also stressed that the role of the budget must change from passive to active. While participation in the budget arbitration will be able to accept not only departments, but also business and expert community.
Now the budget one objective, balanced, and at a relatively short horizon, said the source “Izvestia”. Long-term development of the economy implies increasing the responsibility of fiscal policy and the effectiveness of spending, the expert adds.
All strategic documents should be made in a consolidated manner at the level of the budget of the arbitrator, and not behind closed doors at the Finance Ministry, he said.
As expected, the final decision on the establishment of the Institute budget of the arbitrator, the President may make at the end of January, when this concept will be presented to him in final form.
Today, the Russian budget is in the competence of the Ministry of Finance that generates it-both technically and conceptually, which limits the possibilities of economic development responsible for economic growth, Ministry of industry and trade, responsible for the development of industry and trade. The discrepancy of the budget the economic growth is the main reason for criticism of the document by the expert community and deputies of the state Duma, the Federation Council and the accounts chamber.
For example, it was noted that although the Ministry of Finance in its main directions of the budget policy and mentions the structural problems for economic growth, but does not propose specific measures to eliminate them. The main goal of the budgetary policy the Agency has reduced the budget deficit by freezing spending in nominal and income growth. In itself, this does not help to reach a GDP growth rate above the world average — namely, the task set by President Vladimir Putin in the December message.
In General, the idea of convergence of Finance and economic development ministries when preparing the budget there is nothing wrong and it really matches the best international practices, recognizes the head of “Fiscal policy” the Economic expert group Alexander Suslin. However, the Russian budget policy has its own peculiarities, which can make these practices are not as effective. In particular, due to the large number of inefficient spending (according to estimates of the chamber of accounts, 1 trillion rubles) simply the increase of value will be more likely to take risks than to contribute to GDP growth, the expert believes.
In principle this is good, when the economic and financial units operate in the same direction. We have historically that they are pulling the blanket in different directions. But, unfortunately, not enough to register in the budget — let’s so much waste and it will provide economic growth, — said Alexander Suslin. — In the absence of such a direct relationship is a key disadvantage of all such proposals. And even if you pour money into the economy, the returns from this will be low. In the end, you can spend a lot and not achieve the desired effect.
An alternative solution could be a political statement about the fact that the economy is an absolute priority, the expert believes. In this case, such support from the authorities would help alleviate many of the concerns of business and would be a catalyst for growth.
— If given the right signal to economic agents, there will be no real obstacles to scale back inefficient spending, and inefficient Hostmonster will begin to appear private companies, — says Alexander Suslin.
According to the partner of the Collegium of advocates “Yukov and partners” Sergey Sorokin, the proposed changes will require amendments to the Budget code in the case that arbitrator will be the President or his administration. If adopted, the model with the establishment of a government Commission, amendments will be required.