Experts from the Higher School of Economics (HSE) proposed to change the budget rule in Russia, which has been in effect since 2017. This is stated in the flagship report April school conference.
According to the authors of the proposal, it would be reasonable to include in the formula of federal budget expenditures, in addition to oil prices, an additional indicator, which “will be positive in case of depressive dynamics of basic industries and negative in case of good dynamics.” This can ensure a higher level of budget spending while reducing oil and gas revenues.
With high oil prices and good performance in other benchmarks, more money will be withdrawn into reserves, the report says.
Another proposal of the HSE is related to the preventive development of a set of anti-crisis measures with an agreed funding limit, which the government could use in the event of economic crises. The authors of the report believe that this would avoid the usual deadlines and procedures for agreeing budget spending. At the same time, it is not indicated whether it is a question of combining these two proposals.
At the end of 2020, the concentration of budget expenditures in the fourth quarter and December increased. This situation has been considered one of the main problems of government spending for many years, experts named it among the reasons for criticizing the government of Dmitry Medvedev. However, with the arrival of Mikhail Mishustin, the situation deteriorated sharply. In the fourth quarter of 2020, the volume of purchases amounted to 3.8 trillion rubles, which is 24 percent more than in 2019. At the same time, there were 1.75 trillion in December – an increase of 73 percent.
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source https://pledgetimes.com/economists-proposed-to-change-the-rule-of-the-budget-of-russia/
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