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Beyond the Annual Budget
Table G.11 Summary of Case Study of Russia Issue Implementation
Basic features
Macro-fiscal framework
Strategic objectives
Link to budget Participants and support
Institutional capacity Performance focus
Quality of budgeting
Other issues
Details An MTBF was implemented in 2007, with a shift to an MTPF and program budgeting in 2010. Multiyear budgeting is part of a longer-term agenda for public financial management reform. The three-year budget and appropriations are updated annually. All of federal government spending and two-thirds of general government spending are covered. Discretionary spending can be changed by 10 percent, and nondiscretionary spending can be changed by 5 percent for any line item, but changes must be offset by other spending changes or paid for from additional revenue. Unused budget allocations can be carried over to the next year. There is a contingency reserve. While the Ministry of Finance is responsible for revenue forecasting, the Ministry of Economic Development is responsible for macroeconomic forecasting, which includes oil and gas revenue forecasting. Forecasting is generally conservative, with unbudgeted revenue being added to reserves and used for debt reduction. The MTEF was suspended in 2008 due to the global financial crisis and was relaunched in 2010. Sector development strategies cover 10–20 years, but do not focus on programs, and there is no costing. Strategies are discussed with stakeholders. Three-year budgeting implies full integration. The Budget Commission oversees budget formulation, while the Ministry of Finance is lead agency as far as most aspects of public financial management are concerned. The budget process is consultative, with input from think tanks and stakeholders. The government is fully committed to modernization, especially the minister of finance, who has held the post for 10 years. No issues reported. The performance management system has been piloted for several years, culminating in a new strategy for public financial management reform in 2010 that focuses on results-based management linking all spending to performance indicators. Fiscal discipline has improved since 2000 in the context of strong economic growth. Public expenditure and financial accountability indicators confirm that budgets are more realistic. The Budget Code addresses the relationship between the budget and the sovereign wealth funds set up to manage price volatility and ensure equity across generations.
Note: MTBF = medium-term budgetary framework; MTEF = medium-term expenditure framework; MTPF = medium-term performance framework.