Analysis of the sources of financing the city budget deficit. Analysis of the budget deficit, sources of its financing and public debt as the most important elements of the state's financial system. The concept and meaning of the budget deficit

Introduction

1. Theoretical foundations of budget balance management

1.1 The concept and meaning of the budget deficit

1.2 Classification of sources of financing the budget deficit

1.3 Essence public debt and management methods

2. Analysis of the budget deficit federal budget Russian Federation

2.1 General characteristics of sources of financing the federal budget deficit

2.2 Analysis of domestic public debt

2.3 Analysis of external public debt

3. Ways to overcome the federal budget deficit

3.1 Problems of balancing the federal budget of the Russian Federation and methods for reducing the deficit

3.2 Prospects for public debt and ways to reduce it

Conclusion

Bibliography

budget deficit financing debt

Introduction

Holding economic reforms changed the basis of functioning budget system countries. The relations between public authorities at various levels have also changed, which required the development of a methodology for the formation of a new budget mechanism. The budgetary system of any federal state in certain periods of time exists in the conditions of budget imbalance. The normal functioning of such a system is associated with the need for a rational redistribution of budgetary resources using a clear mechanism for its implementation.

The budget deficit is a financial phenomenon that all the states of the world inevitably faced at certain periods of their history. A fully balanced state budget, that is, a budget without a balance, is only theoretically possible.

It is practically impossible to imagine a state in which all the financial and economic levers that stimulate the flow of funds to the budget work flawlessly, and government spending does not exceed revenues.

Many economically developed countries have lived and continue to live in debt, although it would be fair to note the recent trend towards a reduction in the budget deficit of economically developed countries. A budget deficit is considered normal, approximately corresponding to the level of inflation in the country.

The reason for the imbalance is also public debt. Servicing the public debt (payment of interest to lenders) is a heavy burden for any state, as it constantly takes over a certain share of working capital and leads to an increase in the state budget deficit.

For the last decade, Russia has been searching for effective ways to reform interbudgetary relations. Today, of course, there is a need to create a science-based financial mechanism balancing budgets. At the same time, the quality of the balance of their budgets should be of great importance. However, it should be noted that many theoretical and methodological problems of balancing budgets have not been resolved due to the changed social, economic and political conditions for the functioning of the constituent entities of the Russian Federation. All this determines the relevance term paper especially during the ongoing global financial crisis.

The purpose of this work is to analyze the budget deficit, sources of its financing and public debt as the most important elements. financial system states, their main characteristics.

The specific objectives of this course work are:

Determination of the essence of the deficit of the federal budget of the Russian Federation, sources of its financing and public debt;

Analysis of the composition and dynamics of sources of financing the deficit, as well as internal and external public debt;

Analysis state of the art and problems of balancing the budget of the Russian Federation, as well as identifying possible prospects and ways to reduce the deficit state budget and public debt.

1. Theoretical foundations of budget balance management

1.1 The concept and meaning of the budget deficit

In the budgets of various levels, the principle of balance always applies, which means that the volume of budgeted expenditures must correspond to the total volume of budget revenues and receipts from sources of financing its deficit. When drawing up, approving and executing the budget, the authorized bodies should proceed from the need to minimize the size of the budget deficit.

However, it is extremely difficult to achieve equality of income and expenses. Usually budget revenues exceed its expenditures and vice versa. The excess of revenues over expenditures is called a budget surplus, and the excess of expenditures over revenues is called a budget deficit.

AT modern world There are no states that at one time or another in their history would not have faced budget deficits. He is conditioned different reasons. In some cases, the state may deliberately increase the budget deficit. In particular, in order to stimulate economic activity and aggregate demand during a downturn in output, the government may take special decisions aimed at increasing employment levels (for example, funding programs to create new jobs) or significantly reduce taxes. As a result, budget expenditures increase or its revenues decrease, resulting in a deficit. But this deficit is deliberately created by the state and is called a structural deficit.

In contrast to the structural cyclical deficit, to a lesser extent depends on the conscious fiscal policy of the state. It is due to the general decline in production, which occurs at the stage of crisis and is the result of the cyclical development of the economy. In the context of a decline in production, taxes and state revenues are reduced, which means that there is a deficit.

There are also active and passive deficits. An active deficit occurs as a result of an excess of spending over income, and a passive one as a result of a decrease in tax rates and other income, which is a consequence of the slowdown in economic growth, underpayments, etc.

There are short-term and long-term budget imbalances. An imbalance is short-term if the excess of spending over income is limited to one fiscal year and is a reflection of changes in macro economic situation compared to the one in which the budget was prepared. This is mainly due to the lack of the necessary experience in macroeconomic forecasting, insufficient consideration of the possible changes in a number of circumstances.

For example, a reduction in revenues to the budget may occur as a result of falling export prices, a reduction in production volumes below the envisaged level, shifts in the structure of demand for manufactured products and a decrease in their competitiveness. An increase in the state budget deficit may also be caused by an unexpectedly sharp increase in government spending due to an increase in the inflation rate above the foreseen value, the expansion of transfer payments, combined with the introduction of tax incentives, which is a very popular measure before the next election.

Long-term fiscal imbalance is associated with a widening gap between government spending and revenue over the years and is due to causes that are more sustainable. Thus, in most developed countries over the past 15 years, there has been a steady upward trend in the national budget deficit. This is due to the following factors:

1) an increase in the number of social payments, and hence the social burden on the budget;

2) unfavorable demographic situation associated with the aging of the population, resulting in an increase in the cost of pensions, allocations for health care, etc.;

3) liberalization tax legislation and as a consequence of this, a decrease in the value of tax rates (without a corresponding adjustment in government spending);

4) an increase in the volume of external debt.

In general, the state budget is determined by three main factors:

1) a long-term trend in the dynamics of tax revenues and government spending;

2) stage business cycle, in which the economy is in the period under review;

3) the current policy of the state in the field of budget expenditures and revenues.

Very often, especially in our country and in other countries, there is an artificial either overestimation or underestimation of the true value of the budget deficit. Thus, artificially lowering the budget deficit can be carried out using the following tools:

1) "tax amnesty", which allows taxpayers who have previously evaded taxes to pay at one time the entire amount equal to a certain part of the total tax collection;

2) measures to collect overdue tax payments;

3) introduction of temporary or added taxes;

4) deferred payments wages public sector employees;

5) postponing the mandatory indexation of wages in accordance with the dynamics of the inflation rate;

6) sale of state assets;

7) the presence of a hidden deficit due to quasi-budget spending.

The latter include centralized loans provided for preferential terms Central bank. Besides, central bank can finance individual operations related to public debt, cover losses from stabilization measures exchange rate currencies, refinance Agriculture etc. As a result, the losses of the Central Bank are growing and inflation is increasing, while the deficit is not growing.

An artificial increase in the size of the state budget deficit can occur as a result of the following circumstances. First, when assessing the amount of public spending, depreciation in the public sector of the economy is not always taken into account. Secondly, an important item of government spending is servicing the public debt. However, very often the amount of interest payments on the debt is overestimated due to inflationary payments.

At high inflation rates, when differences in the dynamics of nominal and real interest rates significant, this overstatement of government spending can be quite significant. There are even situations when the nominal (official) deficit and government debt are growing, while the real deficit and debt are declining, which makes it much more difficult to assess the government's policy. Therefore, when measuring the budget deficit, an adjustment for inflation is required.

With this adjustment, the real budget deficit is determined, which is the difference between the nominal deficit and the amount of interest on the public debt, multiplied by the inflation rate. The overall budget deficit less the inflationary portion of interest payments is the operating deficit.

It is believed that the presence of a budget deficit in itself is not yet a signal of economic trouble. Very often scarcity is seen as an important tool economic policy state, especially macroeconomic regulation. Skillful handling of this tool allows the state to solve a fairly wide range of economic and social problems. However, it must be borne in mind that a long-term imbalance in the budget can have a negative impact on the size of aggregate demand and income, the price level, and the state of the balance of payments. Therefore, the strategic goal for any state, of course, is a balanced budget.

There are different ideas about how and for how long the budget should be balanced. Thus, according to the theory of the annually balanced budget, which was widely used as a theoretical basis public policy most developed countries until the 30s. XX century., It is necessary to achieve equality of income and expenditure of the state annually. This, according to supporters of this theory, allows national governments to pursue more responsible policies. The state lives within its means, does not accumulate debts, does not provoke inflation. If there is a decrease in income, then the state must either increase taxes or reduce spending.

Under conditions where there is an increase cash income, the state should act in the exact opposite way, i.e. cut taxes or increase spending. Currently, this theory is practiced by a limited number of countries, mainly countries with developing and transitional economies. In most developed countries, the theory of cyclical balancing of the budget has become widespread in the practice of state regulation of the economy. The foundations of this theory were laid by J. Keynes in the 30s.

It was Keynesian theory that rejected the need for an annual balanced budget. It effectively legalized budget deficits to stimulate the economy. The essence of the theory of cyclical balancing of the budget is that during an economic downturn, in order to stimulate economic growth, the state is obliged to cut taxes and increase spending. The state must compensate for the sharp drop in demand and prevent the reduction of public spending. In this case, there will inevitably be a budget deficit.

During the boom phase, the government pays off its debts by increasing tax rates or by increasing the tax revenues of start-up businesses. Thus, by the end of the economic cycle, the budget becomes balanced. Balancing is carried out throughout the cycle: excess budget funds in the recovery phase compensates for the budget deficit in the crisis phase.

In this case, a large role is given to "built-in stabilizers" ( progressive system taxation, state transfer payments - social payments, unemployment benefits, etc.). With their help, the size of aggregate demand is able to automatically decrease or expand, depending on the phase of the cycle, in the opposite direction to the movement of the conjuncture. For example, if there is a downturn in business activity as a result of a decrease in total income there is an automatic reduction in tax revenues and an increase in certain types of transfer payments, which leads to the formation of a cyclical deficit and partially offsets the reduction in aggregate demand.

In conditions of economic recovery, the opposite happens - tax payments increase, transfer payments decrease. Within the framework of many modern theories, in particular the theory of a compensating budget, it is considered impossible, and even unnecessary, to achieve its balance. Considering that in modern conditions there are stable factors that increase the budget deficit, it is necessary to use state credit more fully as a legitimate source of budget revenues. It is the state credit, according to the representatives of this theory, that is able not only to compensate for the gap between income and expenditure, but also to attract an excess part of savings and invest it in the economy. In most developed countries market economy the government seeks to balance the budget in the longer term - on a cyclical or functional basis. In an unstable economy, when the situation is generally less predictable, the government is forced to balance the budget every year.

Therefore, it is no coincidence that the Budget Code of the Russian Federation notes that the federal, regional or local budget cannot be adopted with a surplus or deficit, the annual budget balancing must be carried out. This is, of course, a less efficient way, since it leads to a decrease in the degree of built-in stability of the economy, causes frequent fluctuations in tax rates, reduces investment activity, and also reduces the efficiency of income distribution. However, to some extent it is justified, since in an unstable economy the situation is less predictable.

In Russia, in accordance with the Budget Code of the Russian Federation, the State Duma can only adopt a balanced budget. Therefore, along with revenue items, the federal budget should include a deficit as a balancing item. At the same time, a special item “Expenses for servicing and repaying the public debt” is allocated in the expenditure side of the budget. This Russian budget practice differs, for example, from the American one. In the US, the budget can be adopted with a deficit, i.e. it is initially unbalanced. At the same time, the sources of debt repayment, as well as income from loans issued to pay off the debt, are taken out of the budget.

1.2 Classification of sources of financing the budget deficit

If the budget for the next financial year with a deficit is adopted, it is necessary to determine the sources of financing the budget deficit. Sources of financing the deficit differ by levels of the budget system. Thus, the sources of financing the federal budget deficit are:

1) internal sources:

Loans received by the Russian Federation from credit institutions in the currency of the Russian Federation;

State loans carried out by issuing securities on behalf of the Russian Federation;

Proceeds from the sale of state-owned property, etc.;

2) external sources:

Government loans made in foreign currency by issuing securities on behalf of the Russian Federation;

Government loans foreign countries, banks and firms, international financial organizations provided in foreign currency.

Sources of financing the budget deficit of the subject of the Russian Federation and local budget can only be internal sources:

Government loans carried out by issuing securities on behalf of a constituent entity of the Russian Federation or a municipality;

Budget loans received from the budgets of other levels of the budget system of the Russian Federation;

Loans received from credit institutions;

Proceeds from the sale of property owned by the constituent entities of the Russian Federation and municipal property, etc.;

In most countries, including Russia, the following main methods of financing the budget deficit are used:

1) credit and money issue (monetization);

2) debt financing (internal and external);

3) an increase in tax revenues to the state budget, as well as income from privatization, the sale of state property.

The last, third method can hardly be attributed to the methods used exclusively to finance the budget deficit. It is widely used and simply to replenish budget revenues. Therefore, the first and second methods are more related to the actual sources of financing the budget deficit.

Monetization as a way to reduce the budget deficit is an increase in the amount of money in circulation (including through bank financing). With monetization, the amount of money in circulation increases, the growth rate money supply significantly exceed the growth rate of real GDP, which leads to an increase in the average price level. At the same time, all economic agents pay a kind of inflationary tax and part of their income is redistributed in favor of the state through increased prices.

The state has formed additional income- seigniorage, i.e. new income from printing money. The monetization of the state budget deficit may not be accompanied directly by the issue of cash, but may be carried out in other forms. For example, in the form of expansion of Central Bank loans to state-owned enterprises at preferential rates or in the form of deferred payments.

Monetization turns out to be a rather risky way of financing the budget deficit, since it can have a negative impact on the state of the balance of payments. This is due to the fact that as a result of monetization, there is an increase in the supply of money and an excess of cash accumulates in the hands of the population. It inevitably generates an increase in demand for domestic and imported goods, as well as for various financial assets, including foreign ones. This, in turn, drives up prices and puts pressure on payment balance.

If the balance of payments becomes negative, then this does not reduce the federal budget deficit, but, on the contrary, leads to its increase. Moreover, it negatively affects the course national currency- there is a partial devaluation. The mechanism for restoring the equilibrium of the balance of payments under these conditions is based on "binding" the excess money supply by selling on foreign exchange market part of the official reserves of the Central Bank, which makes it possible to stabilize the money market as a whole.

The monetization of the state budget deficit causes the smaller the increase in inflation in the country, the more open the economy is and the more foreign exchange reserves the Central Bank can spend on maintaining a relatively fixed exchange rate of the national currency and restoring the balance of payments. At the same time, the growth of inflation as a result of the monetization of the budget deficit turns out to be more significant in the flexible mode. exchange rate, although the costs of official foreign exchange reserves are reduced.

The negative inflationary consequences of the monetization of the budget deficit can be mitigated by austerity measures. monetary policy. If the Central Bank cuts credit opportunities commercial banks (usually through an increase in the reserve ratio or the discount rate of interest) at the same time as the expansion of loans to the public sector to finance the budget deficit, then domestic market rates rise, holding back economic activity. As a result, private investment and net exports are declining, and inflation no longer has such a negative impact on the balance of payments.

Money emission can be non-inflationary only at significant rates of economic growth, since the growing economic activity is accompanied by an increase in the demand for money, which absorbs part of the additional money supply. In general, monetization can be used as a way to solve the problem of the state budget deficit. However, it must be borne in mind that this is an unsafe method for the economy. It is usually used by national governments in exceptional cases when, for example:

1) there is a significant external debt, which excludes concessional financing of the budget deficit from external sources;

2) the possibilities of domestic debt financing are practically exhausted;

3) the foreign exchange reserves of the Central Bank are depleted, which is why the regulation of the balance of payments remains a paramount task;

4) the economy is able to withstand high inflation, and citizens are already accustomed to the constant rise in prices.

If the government still chooses the emission method of budget financing, then Central Bank it is necessary first of all to introduce restrictions (limits) on lending to state-owned enterprises and organizations. Otherwise, there may be a risk of complete displacement of the private sector from the credit market and a drop in investment activity. It is also necessary to constantly keep the inflation rate under control and monitor the state of the balance of payments.

A less painful and more manageable way to deal with government deficits is through debt financing. As a result of debt financing, the budget deficit is covered by loans made by the state both within the country and abroad. Based on this, the external and internal debt of the state is formed.

In different directions of economic thought, debt financing is treated differently. Thus, representatives of the neoclassical trend, starting with A. Smith, have a negative attitude towards debt financing. They believe that A. Smith was right when he said that deficit financing is "a one-way street, once you enter it, you cannot turn back." As a result of debt financing, the wealth of the nation decreases, aggravates tax burden which hinders the accumulation of capital.

Modern monetarists (M. Friedman, F. Caten, and others) believe that if the state finances its needs through loans in the capital market, then this leads to an increase in the interest rate, which means crowding out private investment and a sharp reduction in investment. In addition, through the public debt, the economic burden is shifted to future generations, when citizens will be forced to pay off the debts of the state due to tax revenues in the future.

Representatives of the Keynesian trend, on the contrary, believe that there is nothing wrong with government borrowing. Thanks to them, the distribution of the tax burden over time is carried out, which is not so bad, since the results of such borrowing can be used by several generations, so they must bear the burden of reimbursing them.

Public debt acts as a source of mobilization of additional resources and increase in financial opportunities, so government loans can be an important factor accelerating the pace of socio-economic development. The objective need to use debt financing to meet the needs of society today is due to many factors, primarily the increase in government spending. Conducting an active social policy, ensuring defense capability, international activities, etc. demand from the state a constant increase in budgetary expenditures. Meanwhile, state budget revenues are always limited by the possibilities of taxation. In this sense, public credit helps to reduce the contradiction between the ever-increasing needs of society and the limited resources of the state.

An increase in public spending makes it difficult to control future deficits, and ever-increasing interest payments on public debt significantly limit the government's ability to use the budget as a stabilization lever to influence the economy. At the same time, external debt can become a serious factor not only of economic, but also of political significance. Exorbitant payments from the state budget on debts divert funds from financing social, economic, defense and other programs of the government.

Increasing tax revenues - at first glance, seems to be the most in a simple way reducing or eliminating federal budget deficits. But there are some circumstances that make one think that increased taxes can only cause an increase in deficits. More high stakes taxes are associated with larger, not smaller, deficits. This is because if the government receives more financial resources, legislators will not only spend all the additional tax revenue, but will spend more. Thus, there are doubts about the thesis that tax increases will be an effective means of reducing deficits. Increasing taxes may worsen rather than alleviate the problem.

Thus, none of the methods of financing the state budget deficit has absolute advantages over the others and is not completely non-inflationary.

1.3 The essence of public debt and methods of managing it

When budget expenditures begin to exceed its revenues, when the budget deficit becomes a chronic phenomenon, and its coverage is carried out by non-emission methods, debt arises. That is, the Government of the Russian Federation at the same time conducts borrowing activities from legal entities and individuals, foreign states, foreign financial and international organizations. Borrowing funds by budgets of various levels leads to the accumulation of debt to be repaid in the form of principal and accrued interest.

Public debt is the amount of debt on issued and outstanding government loans, loans received, including the accrual of interest on them, and government guarantees issued. In fact, public debt is debentures RF before legal and individuals, foreign and international organizations, other subjects of law. The state debt of the Russian Federation is secured by all federally owned property constituting the state treasury.

The state debt of the Russian Federation includes debt obligations in the form of:

Credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign state and international financial institutions;

Government securities issued on behalf of the Russian Federation;

Agreements on the provision of state guarantees of the Russian Federation;

RF guarantee agreements to ensure the fulfillment of obligations by third parties;

Re-formalized contractual obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;

Agreements and agreements on the restructuring of debt obligations of previous years, concluded on behalf of the Russian Federation.

Debt obligations of the Russian Federation are divided into short-term (up to one year), medium-term (from 1 to 5 years) and long-term (from 5 to 30 years). Obligations are repaid within the terms determined by the specific terms of loans, and cannot exceed 30 years. The state debt of a constituent entity of the Russian Federation is a set of debt obligations of a constituent entity of the Russian Federation, secured by all the property owned by the constituent entity of the Russian Federation that constitutes its treasury.

Debt obligations of a subject of the Russian Federation are carried out in the form of:

Credit agreements and contracts concluded on behalf of the subject of the Russian Federation with individuals and legal entities, credit institutions;

Government loans of a constituent entity of the Russian Federation in the form of securities;

Contracts with the provision of state guarantees on behalf of the subject of the Russian Federation;

Guarantee agreements of a constituent entity of the Russian Federation to ensure the fulfillment of obligations by third parties;

Re-executed contracts of obligations of third parties into the state debt of a constituent entity of the Russian Federation;

Agreements and agreements on prolongation and restructuring of debt obligations of a constituent entity of the Russian Federation of previous years, concluded on behalf of a constituent entity of the Russian Federation.

Municipal debt - a set of debt obligations of the municipality, which is secured by all municipal property that constitutes its treasury. The debt obligations of the municipality are carried out in the form of:

Credit agreements and contracts concluded by the municipality;

Municipality loans in the form of securities issue;

Agreements on the provision of municipal guarantees;

Contracts of guarantee of the municipality to ensure the fulfillment of obligations by third parties;

Debt obligations of legal entities re-registered as municipal debt on the basis of legal acts of local governments.

The repayment of the public debt is carried out at the expense of the revenues of the budgets of the corresponding level or through the issuance of new government loans. The public debt is repaid through treasuries and banks by redeeming bonds on stock exchange or directly from creditors by conducting redemption draws or annual payments.

Under the market conditions for Russia, the most acceptable way to regulate the budget deficit is to cover it exclusively with public debt, which, in turn, needs centralized management.

Public debt management should be understood as a set of government actions related to studying the loan capital market, issuing loans, paying interest on issued loans, converting and consolidating loans, determining the bond rate in the money market, taking measures to determine interest rates on government loans and repay issued loans.

Operations related to the preparation of documents required for the sale of government securities, the study of the situation on the loan capital market, the placement of loans among creditors, the payment and accrual of interest, are carried out by the Ministry of Finance of Russia and other divisions under the Government of the Russian Federation.

Public debt management expenditures are shown as special financial transactions separately from the budget, and only interest payments on the debt are included in budget expenditures. An important role in the management of public debt is played by the secondary market for government bonds, which securities. Operations in the primary and secondary markets for government bonds are carried out by investment and universal banks(dealers). The amounts that the state receives in loans from creditors, as well as interest on them, are repaid mainly from budget funds, current revenues and the issuance of new loans. This method of repaying government loans is called refinancing.

Public debt management operations are associated with cash execution budget, operations are performed by issuing banks. Banks participate in the issuance of loans, the payment of interest on them and the payment of bonds subject to redemption.

The state, in order to manage public debt, resorts to clarifying the terms of a loan regarding profitability by reducing the nominal interest rate (conversion) or turning short-term obligations into medium- or long-term ones (consolidation) or combining several loans into one loan (unification), which forms a consolidated (funded ) duty.

One of the methods of public debt management is the redemption of loans circulating in the loan capital market. In this option, the state instructs the central and commercial banks repurchase loans and then repay them Money. If the state does not have funds to pay off the state internal debt (bankruptcy), it can cancel the loan or refuse to pay it, but this method is rarely used in practice.

Public debt management in the Russian Federation is carried out Federal Treasury, which is organizationally part of the Ministry of Finance of Russia. It is entrusted with the following tasks:

Registration of all debt obligations of the state and debt guarantees (external and internal);

Preparation of proposals for servicing public debts;

Determining the levels, composition, time and conditions for issuing domestic and foreign loans, including the issuance of government securities.

The Ministry of Finance of Russia acts on behalf of the Government of the Russian Federation as a borrower in both the domestic and foreign financial markets. In this regard, cooperation is being established between the Ministry of Finance of Russia and the Central Bank of the Russian Federation in the field of issuing government securities and managing internal and external public debt. The Central Bank of the Russian Federation carries out operations with government securities, namely, their purchase and sale, redemption, issues loans secured by government securities, acts as an agent of the Russian Ministry of Finance in placing new issues of government debt.

2. Analysis of the budget deficit of the federal budget of the Russian Federation

2.1 General characteristics of sources of financing the federal budget deficit

The amounts of sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008. according to the statistics of the Accounts Chamber are presented in Table 2.1.

Table 2.1. Sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008. (billion rubles)

2005	2006	2007	2008
General funding	-1612,9	-1994,1	-1794,6	-1705,1
including:
internal funding	-707,4	-1243,6	-1614,1	-1570,0
out of him:
debt obligations of the Russian Federation, subjects of the Russian Federation, municipalities denominated in securities indicated in the currency of the Russian Federation	98,1	177,6	223,5	171,6
	35,0	17,6	19,3	6,7
state reserves of precious metals and precious stones	9,6	1,6	12,9	-2,1
budget balances	-815,7	-1398,2	-1761,1	-1991,3
external funding	-905,5	-750,5	-180,5	-135,0
including:
	-108,0	-41,2	-95,3	-80,1
	-639,3	-681,4	-85,2	-34,5
	-158,2	-27,9	-	-20,4

Thus, the amounts of sources of general financing of the deficit of the Federal budget of the Russian Federation did not change much during these four years.

Share ratios are presented in Table 2.2.

Table 2.2. Shares of sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008 (billion rubles)

2005	2006	2007	2008
General funding	100,00%	100,00%	100,00%	100,00%
including:
internal funding	43,86%	62,36%	89,94%	92,08%
out of him:
debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities denominated in securities indicated in the currency of the Russian Federation	-6,08%	-8,91%	-12,45%	-10,06%
shares and other forms of participation in capital, which are in state and municipal ownership	-2,17%	-0,88%	-1,08%	-0,39%
state reserves of precious metals and precious stones	-0,60%	-0,08%	-0,72%	0,12%
budget balances	50,57%	70,12%	98,13%	116,78%
external funding	56,14%	37,64%	10,06%	7,92%
including:
debt obligations of the Russian Federation, subjects of the Russian Federation, denominated in securities indicated in foreign currency	6,70%	2,07%	5,31%	4,70%
loan agreements and contracts concluded on behalf of the Russian Federation, constituent entities of the Russian Federation, indicated in foreign currency	39,64%	34,17%	4,75%	2,02%
other sources of external financing	9,81%	1,40%	-	1,20%

This table shows that in 2007-2008 the main share of the sources of financing the budget deficit came from internal financing and only a small part from external financing. However, in 2005-2006, the shares of internal and external sources were approximately equal, and in 2005, external financing in total was more than internal.

A large share of domestic sources of financing the deficit belongs to the debt obligations of the Russian Federation, subjects of the Russian Federation, municipalities, denominated in securities indicated in the currency of the Russian Federation.

A significant share of external sources of financing the deficit in 2005-2006 consisted of credit agreements and agreements concluded on behalf of the Russian Federation, constituent entities of the Russian Federation, indicated in foreign currency. And in 2007-2008, the share of loan agreements and contracts greatly decreased, and the main part of external sources began to be debt obligations of the Russian Federation, constituent entities of the Russian Federation, denominated in securities indicated in foreign currency.

This is due to the fact that in 2007 and 2008 external financial borrowings and credits (loans) of foreign governments, banks and firms were not provided for by the external borrowing program, which led to a decrease in the share of loan agreements and agreements from 34.17% in 2006 to 4.75% in 2007 and then to 2.02% in 2008.

Shares and other forms of participation in the capital, which are in state and municipal ownership, as well as state reserves of precious metals and precious stones in total amount funding sources are few. The dynamics of sources of financing the federal budget deficit in 2003-2008 is shown in the following diagram.

Rice. 2.1. Dynamics of deficit financing sources

federal budget in 2003–2008

The data of this diagram confirm that in recent years, an increasing share of sources of financing the federal budget deficit has come from sources of domestic financing, while the share of external financing sources has been decreasing.

2.2 Analysis of domestic public debt

The dynamics of the volume of public domestic debt from 1993 to 2009 is presented in Table 2.3.

Table 2.3. The volume of the state internal debt of the Russian Federation

As of	The volume of the state internal debt of the Russian Federation, billion rubles
As of	Total	including state guarantees in the currency of the Russian Federation
01.01.1993	3,57	0,08
01.01.1994	15,64	0,33
01.01.1995	88,06	2,14
01.01.1996	187,74	7,46
01.01.1997	364,46	17,24
01.01.1998	490,92	3,47
01.01.1999	529,94	0,88
01.01.2000	578,23	0,82
01.01.2001	557,42	1,02
01.01.2002	533,51	0,02
01.01.2003	679,91	8,62
01.01.2004	682,02	5,58
01.01.2005	778,47	12,93
01.01.2006	875,43	18,86
01.01.2007	1064,88	31,23
01.01.2008	1301,15	46,68
01.01.2009	1499,82	72,49

In accordance with the report of the Accounts Chamber, the total volume of the state internal debt of the Russian Federation in rubles as of January 1, 2008 amounted to 1,301.15 billion rubles, or 4.3% of GDP for 2007, and as of January 1, 2009 - 1,499.82 billion. rubles, or 3.5% of GDP in 2008. The increase in the total amount of the public domestic debt of the Russian Federation in 2008 amounted to 198.67 billion rubles, or 15.27%, the ratio of public debt to GDP decreased over this period by 0.8 percentage points.

The increase in the total volume of the public debt of the Russian Federation in 2008 occurred, in particular, due to an increase in the public domestic debt by 198.67 billion rubles, or 15.27%.

During 2008, the share of the state internal debt of the Russian Federation in the total volume of the state debt of the Russian Federation increased from 54.2% to 55.7%. The volume and structure of the state internal debt of the Russian Federation are presented in Figures 2.2. and 2.3.

Rice. 2.2. The volume and structure of the state internal debt of the Russian Federation as of January 1, 2008 (1,301.2 billion rubles)

Rice. 2.3. The volume and structure of the state internal debt of the Russian Federation as of January 1, 2009 (1,499.8 billion rubles)

According to the report on the status of the state internal and external debt of the Russian Federation, as of January 1, 2008, the state domestic debt amounted to 1,301,151.9 million rubles (3.9% of GDP in 2007); as of January 1, 2009 - 1,499,824.4 million rubles (3.6% of GDP in 2008) and increased by 198,672.5 million rubles, or 15.3%. As of January 1, 2009, the state domestic debt does not exceed the limit of the state domestic debt (1,804,189.6 million rubles) established by Article 1 of Federal Law No. 198-FZ of July 24, 2007. Of particular importance in the formation of public domestic debt are government securities (Fig. 2.4.)

Rice. 2.4. State internal debt of the Russian Federation, expressed in government securities, billion rubles

The share of the state internal debt denominated in government securities in the volume of the state internal debt as of January 1, 2009 compared to January 1, 2008 decreased by 1.2 percentage points and amounted to 94.8%.

2.3 Analysis of external public debt

In accordance with Article 6 of the Budget Code of the Russian Federation, external debt is obligations arising in foreign currency. The dynamics and structure of the state external debt are presented in Table 2.4.

Table 2.4. The structure of the state external debt of the Russian Federation (at the beginning of the year; billion US dollars)

2005	2006	2007	2008	2009
Public external debt (including obligations of the former USSR assumed Russian Federation)	114,1	76,5	52,0	44,9	40,6
including:
debt to countries participating in the Paris Club	47,5	25,2	3,1	1,8	1,4
debt to non-Paris Club countries	6,4	5,7	5,2	3,7	3,3
commercial debt	2,2	1,1	0,8	0,7	1,2
debt to international financial organizations	9,7	5,7	5,5	5,0	4,6
Eurobond loans	35,3	31,5	31,9	28,6	27,7
domestic government bonds currency loan(OVGVZ)	7,1	7,1	4,9	4,5	1,8
debt on loans from Vnesheconombank provided at the expense of the Bank of Russia	5,5	-	-	-	-
provision of guarantees of the Russian Federation in foreign currency	0,4	0,3	0,6	0,6	0,6

Article 1 of Federal Law No. 198-FZ of July 24, 2007 (as amended) sets an upper limit on the state external debt of the Russian Federation as of January 1, 2009, in the amount of USD 41.9 billion (EUR 27.2 billion).

According to the report on the state of the state external and internal debt of the Russian Federation at the beginning and end of the reporting financial year, the volume of the state external debt of the Russian Federation amounted to 40.6 billion US dollars as of January 1, 2009, which was confirmed by the results of the audit and does not exceed the established the upper limit of the public debt. The volume and structure of the state internal debt of the Russian Federation are presented in Figures 2.5. and 2.6.

Rice. 2.5. The volume and structure of the state external debt of the Russian Federation as of January 1, 2008 (44.9 billion US dollars)

Rice. 2.6. The volume and structure of the state external debt of the Russian Federation as of January 1, 2009 (40.6 billion US dollars)

According to the Accounts Chamber, the state external debt in ruble terms as of January 1, 2008 amounted to 1,101,649.8 million rubles (44,880.7 million US dollars), or 3.3% of GDP in 2007, increased over 2008 by 90,538.9 million rubles, or 8.2%, and amounted to 1,192,188.7 million rubles (40,577.7 million US dollars) as of January 1, 2009, or 2.9% of GDP for 2008. At the same time, in dollar terms, the volume of the state external debt decreased by 4,303.0 million US dollars, or by 9.6%.

As a result of the reduction in debt on most types of public external debt, its structure changed: the share of market debt (government securities of the Russian Federation denominated in foreign currency) decreased from 74% to 73%, while the share of non-market debt (loans from foreign governments, IFIs, foreign commercial banks and firms, state guarantees in foreign currency) from 26% to 27%.

3. Ways to overcome the federal budget deficit

3.1 Problems of balancing the federal budget of the Russian Federation and methods for reducing the deficit

Since the end of 2007, rising world oil prices have been accompanied by an increase in demand for gas and other energy sources that replace it, thereby spurring an increase in the cost of the latter, both in the world and in the all-Russian market.

By the end of 2008, the cost of a barrel of oil was set at $130. In general, in 2008 electricity tariffs increased by 40%.

Already increased costs at manufacturing enterprises have increased due to the rise in the cost of raw materials, which are in great demand in the world. This process was caused by the orientation of our raw material and energy potential for export. Because of this, the needs for the development and expansion of production in the real sector of the economy were not fully satisfied.

That is, the change in the global environment (mainly commodity prices) caused a rapid transition from a surplus to a deficit federal budget since 2009. In 2008, the federal budget surplus, according to the Ministry of Finance, was 1 trillion. 697 billion rubles, or 4% of GDP. In 2009, there was a deficit, which amounted to 2 trillion. 326.14 billion rubles or 6.4% of GDP.

The federal budget in January-April 2010 was executed with a deficit of 3.4% of GDP, according to the Ministry of Finance. The slowly growing negative balance of the state treasury is taking shape against the backdrop of an actual freezing of government spending and stagnation of revenues - they have not been growing since mid-2009.

The Ministry of Finance summed up the results of the execution of the federal budget in the first third of the year 2010. Revenues in January-April amounted to 2.618 trillion rubles, expenses - 3.063 trillion rubles, budget deficit - 445 billion rubles, or 3.4% of GDP (Fig. 3.1.). So far, this is far from the 6.8% of GDP expected by the Ministry of Finance by the end of the year. Separately for April, the situation with the deficit looks somewhat worse than in general for four months. The April deficit amounted to 5.7% of GDP against 3.9% in March.

Rice. 3.1. Revenues and expenditures of the federal budget in 2009-2010 (billion rubles).

As can be seen from the graph, federal budget revenues, starting from the second half of 2009, have not actually grown.

It should also be noted that since 2009 the deficit began to be financed from Reserve Fund Russian Federation, and before that it was only being formed. Thus, the accounts of the Reserve Fund became sources of financing the federal budget deficit.

In April 2010, the Ministry of Finance of Russia continued to implement the Decree of the Government of the Russian Federation dated January 19, 2010 No. 23-r on the allocation of funds from the Reserve Fund to finance the federal budget deficit. A part of the Fund's foreign currency funds on accounts with the Bank of Russia, namely USD 5.38 billion, EUR 3.99 billion and GBP 0.78 billion, was sold for RUB 350.00 billion, and the proceeds credited to the account for the accounting of federal budget funds.

As of May 1, 2010, the total amount of the Reserve Fund amounted to 1,188.70 billion rubles, which is equivalent to 40.59 billion US dollars. As of May 1, 2010, the balances on separate accounts for accounting for the Reserve Fund amounted to:

· 18.07 billion US dollars;

· 12.42 billion euros;

· £3.04 billion.

There is an opinion among experts that if the current economic situation continues, including the deficit budget, the Reserve Fund may completely dry up in 2011. Therefore, it is imperative to take measures to reduce the deficit.

Improvement of the state budget should be carried out in several directions: increasing its revenue base; restructuring the expenditure side of the budget; streamlining budget procedures.

Restructuring of the revenue part of the budget. For conscientious and unprivileged taxpayers, the level of taxes is excessive. However, the figures for tax revenues need to be adjusted for the significant amounts of tax arrears to the budget, which increase the tax burden on businesses. Another adjustment can be made for the sheer number of existing tax credits. In addition, it should be taken into account that about a third of all enterprises registered in Russia do not pay taxes at all.

Taking into account all the above factors, the bar for the withdrawal of GDP in favor of the state rises to the maximum value at which mass tax evasion begins. Thus, in the short term there are no prerequisites for reducing the budget deficit by increasing tax revenues. Therefore, the main increase in budget revenues can be obtained through a significant reduction in the number of tax benefits and an increase in the collection of customs duties and income from the production and sale of alcohol.

The main directions of the restructuring of budget expenditures. The reality of the federal budget is determined both by the collection of funds and the validity of the planned costs. In the conditions of the limited resources of the state, the federal budget should be developed on the basis of clear priorities for spending its funds. It is important for society to know not only what and in what amounts public money is spent, but also why certain directions and volumes of expenditures are chosen.

When restructuring the obligations of the state, the basic principle must be fulfilled: the state must give money primarily for reforms. Those areas where real reforms are taking place should be provided with financial resources as a matter of priority.

In conditions of limited financial resources, it is important to prioritize the spending of budgetary funds: social spending, the share of which is increasing in the total budget; the structure of social expenditures should also highlight priorities: expenditures on wages and pensions; military spending, which reflects priority funding for defense research and development spending.

The most important task of the state is the further implementation of the program to save public spending. However, budget savings should not be at the expense of the poor.

Improving budget procedures. It is necessary to revise the borrowing policy to cover the budget deficit. First, the focus should not be on the needs of the budget, but on limiting the negative impact on economic growth of the burden of servicing the domestic public debt. Secondly, certain principles of the state's work in the financial market must be changed.

The following measures can also be suggested:

To carry out the drafting of the budget for the next financial year based on the maximum funding limits, which will simplify the work of preparing the budget, make its indicators realistic;

To link budgeting with medium-term budget planning, which is important for determining the state's financial policy for the future and developing a government action program for its implementation.

In modern conditions, the state must strengthen its functions to regulate economic and social processes in society, develop a program of effective actions that oppose the development of the budget deficit.

Some countries have proved that in conditions associated with a sharp increase in the budget deficit, it is possible to achieve a balance of its revenues and expenditures, using the entire mechanism of state regulation for this. Therefore, the budget deficit should be financed from reserve funds created from the surpluses of previous years, and if they are insufficient, from attracted resources.

3.2 Prospects for public debt and ways to reduce it

Analysis of the Accounts Chamber shows that the volume of public debt in 2010 will amount to 5,499.2 billion rubles, which is 1,575.8 billion rubles or 1.4 times more than the figure approved for 2009. Some decrease in the growth rate of public debt is envisaged (from 40.2% in 2010 to 17.8% in 2012), and its volume in 2012 compared to 2009 will increase by 2.1 times. The dynamics of the volume and structure of public debt in 2008-2012 is presented in the following diagram.

Rice. 3.2. Dynamics of the volume and structure of public debt in 2008 - 2012

The structure of public debt in 2010-2012 will change somewhat: the share of domestic debt will decrease from 64.1% at the beginning of 2010 to 52.5% at the end of 2012, respectively, the share of public external debt will increase from 35.9% to 47.5% .

The debt burden on the federal budget is growing significantly: the ratio of public debt to GDP will increase from 9.7% in 2009 to 15.4% at the end of 2012.

At present, the Government of the Russian Federation proceeds in its debt activities from the need to:

Creation of conditions for increasing the importance of public borrowing as the main source of refinancing of public debt;

Restrictions on the volume of government borrowing by the amount of repayment of public debt;

Increasing the share of domestic debt in the structure of public debt;

Reducing the cost of servicing public debt;

Restrictions on attracting funds from international financial organizations by financing infrastructure projects of national importance;

These directions of the debt policy are successfully implemented by the Government of Russia, and the following are considered the main objectives of the debt strategy:

Preservation of the volume and structure of the state debt, allowing guaranteed fulfillment of obligations for its repayment and servicing, as well as refinancing the debt, regardless of the state of the federal budget;

Implementation of state internal borrowings in an amount that allows you to actively develop the market for corporate and municipal borrowings that provide financing for investments in industries and regions;

Changes in the structure of the public debt of the Russian Federation in terms of a further increase in the share of domestic debt in the structure of total public debt.

Russia is now actively using the method of repaying its external debt with commodity deliveries, but other methods are forgotten. The prospect may be the exchange of debt obligations for shares of privatized enterprises, the redemption of government debts for ruble funds with their subsequent direction for investment. From such operations, Russia will receive not only relief from the debt burden, but also the revival of work on the implementation of the privatization program and additional investment in the real sector of the economy.

Of great importance for improving the efficiency of state debt activity will be a unified debt policy, unity of planning and accounting for all operations to attract, service and repay external and internal government borrowings. All this will allow:

Optimize the terms of circulation, redemption and profitability of government securities;

Minimize the adverse effects of fluctuations in the foreign exchange rate and interest rates in international financial markets on the amount and cost of government borrowings;

Optimize budget spending on public debt servicing;

Timely and fully fulfill obligations to internal and external creditors.

Optimization of the structure of public debt based on the creation of an effective management system will strengthen creditors' confidence in the Russian state as a reliable borrower, ensure full and profitable participation of the state in the domestic financial market and a worthy entry into the foreign borrowing market in the near future, create more favorable conditions for continuing the implementation of the policy reducing the debt burden on the economy and the state budget.

Experts identify the following main principles of the debt policy of the Russian Federation in the future.

First, unconditional servicing of obligations and maintaining a high credit rating. In order to obtain an investment rating when forming a debt policy, it is important to maintain a high level of creditor confidence, unconditional and timely fulfillment of debt obligations.

Second, long-term strategy and effective use. It is necessary to strengthen the long-term orientation of the debt policy, to put an end to its subordination to the solution of current budgetary problems. The debt strategy should be characterized integrated approach, taking into account the features of the general economic strategy development of Russia, its currency, monetary, financial, investment policy. An active debt strategy should consist of at least three constituent parts: strategies for servicing existing debt, strategies for attracting new financial resources and strategies for using borrowed funds. At the same time, in order to achieve the goals of an active debt strategy, it is necessary to increase flexibility and efficiency in making decisions on public debt management.

Thirdly, the connection with foreign policy. Russia should be more active than in the past in defending its interests in the existing global system of managing credit and debt relations.

Fourth, ensuring transparency of debt settlement transactions. The existing public debt reporting system is characterized by a high degree of transparency, primarily for financial market participants - potential investors in terms of the amount of information available to them on the most important aspects of debt management policies and operations. Meanwhile, the transparency of the decision-making regime, the clarity of the rules and procedures for carrying out public debt management operations contribute to strengthening the confidence of creditors and investors in government debt obligations. This, in turn, increases the efficiency of ongoing public debt management operations and, in the long run, may lead to a reduction in the cost of servicing public debt.

And, finally, it should be noted that the development of the government borrowing market in a qualitative direction will contribute to the solution of government tasks to maintain Russia's rating as a first-class borrower, ensuring the unconditional, timely and full fulfillment of all obligations on public debt.

Conclusion

At present, a budget deficit has become a frequent occurrence for the state budget of most countries. Recently, the federal budget of the Russian Federation has also become scarce. The budget deficit may be the result of an unfavorable economic situation or the result of a purposefully pursued budget policy.

There are various ways to finance the budget deficit. If it is carried out by issuing money, then this leads to an increase in the amount of money in circulation, an increase in prices and inflation. Covering the deficit with private sector borrowing reduces private investment through the issuance of government securities.

The budget deficit is inextricably linked with the concept of public debt, which, depending on the sources of the loan, can be internal and external. Significant public debt has a negative impact on the economy: it leads to an increase in the polarization of society, negatively affects the rate of economic growth, the cost of servicing the public debt increases the budget deficit. External public debt (debt to other countries, foreign companies, banks and international economic organizations) is repaid from export earnings, which can also adversely affect the pace of economic development.

Positive shifts in the structure of the budget are achieved by reducing irrational government spending, regulating interbudgetary relations, and, most importantly, as a result of tax reform.

The most important legally fixed measures for the management of public debt include the establishment of maximum volumes of public internal and external debt, the limits of external borrowing; sources of domestic financing of the budget deficit, including receipts from the issue of government securities; the maximum amount of external borrowings; expenses for servicing the state internal and external debt; upper limits of state internal and external guarantees.

Contemporary economic condition The Russian Federation is characterized by a deficit budget (since 2009). The main share of sources of financing the budget deficit falls on domestic financing. As a result, the Reserve Fund, which is used as one of the main sources of financing the federal budget deficit, is greatly depleted.

In addition, the amount of public debt, both internal and external, is constantly increasing. In the future, a further increase in debt is expected.

Based on all this, we can conclude that these phenomena have an adverse impact on the development of the country as a whole. Therefore, the Government needs to develop and implement special programs, both to reduce the budget deficit and to reduce internal and external debt. Only the adoption of effective measures in these areas will contribute to the socio-economic development of Russia.

Bibliography

2. Conclusion of the Accounts Chamber of the Russian Federation on the report on the execution of the federal budget for 2008 - Moscow, 2009

3. Agapova T. A., Seregina S. F., Macroeconomics: Textbook; Moscow: Business and Service, 2004

4. Aleksandrov I. M. Budgetary system of the Russian Federation; Moscow, Dashkov & Co., 2007

5. Godin A. M., Maksimova N. S., Podporina I. V., Budget system of the Russian Federation; M.: Dashkov and Co., 2006

6. N. I. Kulikov, L. N. Chainikova, E. Yu. Babenko, Modern budgetary system of Russia; Tambov TSTU, 2007

7. Myslyaeva I. M., State and municipal finance; Moscow, INFRA-M, 2007

8. http://ach.gov.ru

9. http://budgetrf.ru

10. http://gks.ru

11. http://minfin.ru

12. http://politika.su

13. http://statistika.ru

Introduction

Theoretical Foundations of the Budget Deficit

1 Concept, causes and types of budget deficit

2 Ways of financing the state budget deficit in modern conditions of development

3 Methods of budget deficit regulation

The deficit of the state budget of the Russian Federation

1 Sources of financing the federal budget deficit

2 Budget deficit analysis

Conclusion

List of used literature

Introduction

In the formation and development of the economic system of any modern state, one of the leading roles is played by state regulation, which is carried out on the basis of the economic policy chosen by the authorities. One of the most important tools that allow the state to carry out economic and social regulation is the financial system of society, the main link of which is the state budget.

However, this system often faces problems expressed in the form of a budget deficit. The budget deficit is the excess of spending over income; financial phenomenon, which in certain periods of its history inevitably faced all the states of the world. A fully balanced state budget, that is, a budget without a balance, is only theoretically possible.

The relevance of the topic of the course work lies in the fact that due to the action of various factors (economic, political, natural, etc.), a situation often arises when budget revenues (tax and non-tax) do not cover all the expenses necessary for the appropriate level of the budget system. Fiscal deficits result from imbalances in the economy, declining revenues, and surges in spending caused by mismanagement. A market economy cannot eliminate the budget deficit if measures to stabilize the economy and equalize spending with income are not implemented; this implies a strict regime of cost savings on the part of all power and management structures.

The theoretical basis for writing this course work was the works of domestic authors, teaching aids of higher educational institutions, as well as scientific periodicals on finance and credit.

The purpose of the course work is to study the theoretical foundations of the budget deficit, identify its features, methods of its coverage and analyze the deficit of the state budget of the Russian Federation.

In accordance with the intended goal, the following tasks were set in the work:

· to study the essence of the budget deficit, the main causes of its occurrence, as well as the socio-economic consequences;

· reveal the mechanism of financing the budget deficit in modern conditions;

· consider the problems of managing the budget deficit and methods for their elimination in the context of foreign practice;

· to investigate the sources of financing the deficit of the state budget of the Russian Federation;

· analysis of the deficit of the state budget of the Russian Federation.

The object of the study is the budget deficit as an economic phenomenon.

The subject of the study is the economic relations that develop in the process of budget execution.

The research methodology was based on the use of dialectical logic and a systematic approach. In the process of work, general scientific methods and techniques were used: analysis and synthesis, methods of classification, grouping and comparison, statistical analysis and etc.

The information base of the study was regulatory legal acts, federal laws, presidential decrees, as well as statistical data and data financial reporting for 2012-2014 and Internet sites.

1. Theoretical foundations of the budget deficit

1.1 Concept, causes and types of budget deficit

In modern conditions, despite the continuous increase in tax revenues, in the leading foreign countries there is a chronic deficit in their state budgets, that is, the excess of budget expenditures over its revenues.

The state of national finances is one of the most important economic indicators any country. The problem of the budget deficit plays an important role in the management of the financial system.

The budget deficit is the excess of spending over income. The maximum size of the budget deficit of a constituent entity of the Russian Federation is related to the volume of income and cannot exceed 15% of the budget revenues of a constituent entity of the Russian Federation, excluding assistance from the federal budget. The deficit is considered as temporary if there are prospects for overcoming it and it does not exceed 3% of the amount of income. If the budget deficit is up to 10% of the amount of income, this is an acceptable deficit, and if more than 10%, this is a critical deficit.

In the process of adopting and executing the budget, the balance of income and expenses is of great importance. If income exceeds expenses, then there is a surplus. But more often than not, the costs exceed the income. In this case, there is a shortage.

A budget deficit is a financial phenomenon that is not necessarily an emergency. In the modern world, there is no state that at one time or another in its history would not face a budget deficit.

A budget deficit means an excess of spending over income. It characterizes its imbalance and arises on the basis of the action of various factors - both objective and subjective. The well-known factor of the budget deficit is nothing more than the inability of the state to ensure that the budget is filled with the necessary revenues. The reason for this may be a decline in production, high level the cost of production of goods, the need for the latest equipment and the reconstruction of production through the introduction of new technologies, the imbalance of the economy, and in general a decrease in the efficiency of management.

The budget deficit negatively affects the economy, in particular, by stimulating inflationary processes. It is a brake on the economic growth of the state, not to mention its negative social consequences. However, in the scientific literature there are assertions that a budget deficit can have a positive impact on the revival of economic life. One can only partially agree with this, because it is not the deficit itself that can contribute to economic activity, but the sources of its financing. In countries where the government securities market is well developed, the size of the budget deficit has a less tangible impact on the state of the economy in a given period, but its presence will certainly affect economic life in the future. Therefore, a deficit-free budget is an objective requirement for the economic development of the state.

As a rule, the state budget deficit reflects an unstable situation in economic and financial activities, is covered by finding internal sources of financing, government loans, sometimes by issuing paper money, not backed by a commercial mass. Not infrequently, a budget deficit is associated with inflation.

Deficiencies arise as a result of extraordinary circumstances: wars, major natural disasters, etc., when reserves usually become insufficient and you have to resort to sources of a special kind. The deficit may reflect the crisis in the economy, its collapse, the inefficiency of financial and credit relations, the inability of the government to control the financial situation in the country. In this case, it is an extremely alarming phenomenon, requiring the adoption of not only urgent and effective economic measures(to stabilize the economy, financial recovery of the economy, etc.), but also the corresponding political decisions.

However, if financial resources are directed to the development of the economy, priority sectors, i.e. are used effectively, then in the future the growth of production and profits in them will compensate for the costs incurred, and society as a whole will only benefit from such a deficit. Even the most economically developed countries in critical periods, as a rule, have a budget deficit of 10 to 30%. If the government does not have a clear program of economic development, and allows excess spending over income in order to patch up "financial holes", subsidize unprofitable production, then the budget deficit will inevitably lead to an increase in negative aspects in the development of the economy, the main of which is the strengthening of inflationary processes.

The causes of the budget deficit can be:

· Growth of public spending in connection with the restructuring of the economy and the need for industrial development;

reduction in state budget revenues during the period economic crisis;

emergency circumstances (wars, riots, major disasters, natural disasters);

· inefficiency of the financial system of the state;

· political populism, expressed in the growth of social programs that are not provided with financial resources;

corruption in the public sector;

· inefficiency of tax policy, causing an increase in the shadow sector of the economy.

According to the types of occurrence, the budget deficit can be divided into the following categories:

· cyclic;

· structural;

operational;

primary;

Quasi-fiscal.

A budget deficit resulting from a decline in production is called a cyclical deficit. A deficit that results from deliberate government measures to increase government spending and cut taxes to prevent a recession is called a structural deficit.

In the first case, the deficit is rather evil, since it is the result of a decline in economic activity and indicates the underutilization of the productive capacity of society. Structural deficit, if it is the product of a targeted state policy to stabilize the economy, can provide significant assistance in preventing sharp fluctuations in the economic environment.

The operating deficit is the total deficit of the state budget minus the inflationary part of interest payments for servicing the public debt. Debt servicing (i.e., the payment of interest on it and the gradual repayment of the principal amount of the debt - its amortization) is an important item of government spending. It is not uncommon for reported budget deficits to be inflated on the basis of exaggerated government spending through inflationary interest payments on debt. At high inflation rates, when the difference in the dynamics of nominal and real interest rates is very significant, this overstatement of government spending can be quite significant. There may be situations when the nominal official government deficit and nominal debt are rising, while the real deficit and debt are falling, making it difficult to assess the effectiveness of the government's fiscal policy. Therefore, when measuring the budget deficit, an adjustment for inflation is necessary: the real budget deficit is the difference between the nominal deficit and the amount of public debt at the beginning of the year, multiplied by the inflation rate.

The primary deficit (surplus) of the state budget is the difference between the total deficit and the total amount of debt payments. The presence of a primary deficit is a factor in the increase in the debt burden.

Different countries with economies in transition have different options for choosing priority ways of financing the budget deficit, although they are limited. Opportunities for predominantly non-inflationary stabilization of the budget are, as a rule, insignificant and financing is carried out with the active participation of the Central Bank. At the same time, in countries such as the Czech Republic, Slovakia, etc., where by the beginning of the transition period there was no significant market disruption, and the government has a firm intention to implement market reforms and is trusted, financing the budget deficit from any source is associated with lower costs than, for example, in Belarus, Russia and other states of the former USSR, where there is a sharp shortage of funds coming from both external and internal sources. However, for a more accurate assessment of the possibilities of debt financing of the budget deficit, it is advisable to compare the total amount of public debt not only with GDP, but also with the volume of money supply.

Quasi-fiscal (quasi-budgetary) deficit - existing along with the measured (official) hidden deficit of the state budget, due to the quasi-fiscal (quasi-budgetary) activities of the state.

Quasi-fiscal transactions include, for example, the following:

· financing by state enterprises of excess employment in the public sector and the payment of wages by them at rates above market rates through bank loans or through the accumulation of mutual debt;

· Accumulation in commercial banks that separated from the Central Bank at the initial stages of economic reforms, a large portfolio of non-performing loans - the so-called. "bad debts" (overdue debt obligations of state-owned enterprises, soft loans to households, firms, etc.). These loans, after all, are repaid mainly with concessional loans from the Central Bank;

· individual transactions related to public debt, as well as financing by the Central Bank of losses from measures to stabilize the exchange rate, interest-free and concessional loans to the government (for example, for the purchase of wheat, rice, coffee, etc.); refinancing loans to commercial banks for servicing "bad debts", as well as refinancing by the Central Bank of agricultural, industrial and housing programs governments at preferential rates, etc.) by the activities of the Central Bank, state enterprises and commercial banks, both in industrial and transitional economies.

Summarizing the causes of the budget deficit allows us to identify:

emergency;

crisis;

anti-crisis;

inter-budget.

Extreme shortages are based on extraordinary circumstances (wars, natural disasters, etc.), against which it is difficult or impossible to insure. To prevent and eliminate the consequences of emergencies, various reserve and off-budget funds are usually formed.

Crisis and anti-crisis budget deficits are caused by a crisis in the economy, monetary, financial sphere and measures to eliminate it. In this regard, it is possible to single out deficits that have a stimulating and dissimulating value.

By duration, the budget deficit is:

· short-term: the excess of expenditures over revenues is limited to the framework of one financial year and is a reflection of current changes in the economic situation of the country, which were not taken into account when drafting the budget;

Long-term: associated with an increase in the gap between budget expenditures and revenues over a number of years and is due to sustainable reasons.

In most countries of the world, the upward trend in national budget deficits is due to the following general factors:

· an increase in the number of social payments to the population and an increase in the social burden on the budget;

· the unfavorable demographic situation associated with the aging of the population, resulting in an increase in the cost of paying pensions, various benefits and appropriations for housing and communal services, transport services, health care, etc.;

· liberalization of tax legislation and, as a result, reduction of tax rates without corresponding adjustment of state budget expenditure items;

increase in the volume of the country's external debt.

Depending on the economic content and direction of impact, there are:

Active deficit

passive deficit.

An active budget deficit results from a direct excess of spending over revenue. Passive is the result of a decrease in tax rates and a decrease in budget revenues (that is, not associated with an increase in spending).

2 Ways of financing the state budget deficit in modern conditions of development

In most countries, including Russia, the following main methods of financing the budget deficit are used:

· credit and money issue (monetization);

debt financing (internal and external);

· an increase in tax revenues to the state budget, as well as income from privatization, the sale of state property.

Consider the advantages and disadvantages of the emission method of financing the state budget deficit in Table 1.1.

Table 1.1 - Advantages and disadvantages of the emission method of financing the state budget deficit.

Emission method of financing the state budget deficit.
Advantages	Flaws
The growth of the money supply is a factor in the increase in aggregate demand and, consequently, output. An increase in the money supply causes a decrease in the interest rate in the money market (decrease in the price of a loan), which stimulates investment and ensures the growth of total spending and total output. This measure, therefore, has a stimulating effect on the economy and can serve as a means of exiting a recession.	AT long term an increase in the money supply leads to inflation, i.e. it is an inflationary way of financing.
This is a measure that can be implemented quickly. An increase in the money supply occurs either when the Central Bank conducts operations on the open market and buys government securities and, paying sellers (households and firms) for the cost of these securities, issues additional money into circulation (it can make such a purchase at any time and at any time). required amount), or through the direct issue of money (for any required amount).	This method can have a destabilizing effect on the economy during a period of overheating. A decrease in the interest rate as a result of an increase in the money supply stimulates an increase in total spending (primarily investment) and leads to an even greater increase in business activity, widening the inflationary gap and accelerating inflation.

Monetization as a way to reduce the budget deficit is an increase in the amount of money in circulation (including through bank financing). Although this method is used by the state very rarely, in exceptional cases, since it is purely inflationary, however, it should not be excluded from the arsenal of methods for financing the budget deficit.

With monetization, the amount of money in circulation increases, the growth rate of the money supply significantly exceeds the growth rate of real GDP, which leads to an increase in the average price level. At the same time, all economic agents pay a kind of inflationary tax, and part of their income is redistributed in favor of the state through increased prices. The state generates additional income - señora, that is, new income from printing money.

The monetization of the state budget deficit may not be accompanied directly by the issue of cash, but may be carried out in other forms. For example, in the form of expansion of Central Bank loans to state-owned enterprises at preferential rates or in the form of deferred payments. In the latter case, the Government buys goods and services without paying for them on time. If deferred payments accumulate in relation to public sector enterprises, they are often funded by the Central Bank or accumulate, increasing the overall government budget deficit. Therefore, although deferred payments, unlike monetization, are officially considered a non-inflationary way of financing the budget deficit, in practice this division turns out to be very conditional.

In general, monetization can be used as a way to solve the problem of the state budget deficit. However, it must be borne in mind that this is an unsafe method for the economy. It is usually used by national governments in exceptional cases when, for example:

· there is a significant external debt, which excludes concessional financing of the budget deficit from external sources;

· the possibilities of internal debt financing are practically exhausted;

· the foreign exchange reserves of the Central Bank are depleted, due to which the regulation of the balance of payments remains a paramount task;

· The economy is able to withstand high inflation, and citizens are already accustomed to the constant rise in prices.

Table 1.2 - Advantages and disadvantages of financing the state budget deficit through domestic debt.

Financing the state budget deficit with domestic debt
Advantages	Flaws
It does not lead to inflation, since the money supply does not change, i.e. it is not an inflationary way of financing.	Debts must be paid. Obviously, the population will not buy government bonds if they do not generate income, i.e. unless interest is paid on them. The payment of interest on government bonds is called "servicing the public debt." The larger the public debt (i.e., the more government bonds issued), the larger the amounts that must go to service the debt. And the payment of interest on government bonds is part of the state budget expenditures, and the more they are, the greater the budget deficit. It turns out a vicious circle: the state issues bonds to finance the state budget deficit, the payment of interest on which provokes an even greater deficit.
This is a fairly quick way, since the issue and placement (sale) of government securities can be ensured quickly. The population in developed countries is happy to buy government securities, because they are highly liquid (they can be easily and quickly sold - this is “almost money”), highly reliable (guaranteed by the government, which enjoys confidence) and quite profitable (interest is paid on them).	This method is not non-inflationary in the long run.
	Crowding out effect of private investment. This effect is that an increase in the number of government bonds in the securities market leads to the fact that part of household savings is spent on the purchase of government securities (which provides financing for the government budget deficit, i.e. goes to non-productive purposes), and not to the purchase of securities of private firms (which ensures the expansion of production and economic growth). This reduces the financial resources of private firms and therefore investment.
	The debt method of financing the state budget deficit can lead to a deficit in the balance of payments.

The use of government loans to finance additional government spending is also determined by their much smaller negative consequences for the economy compared, for example, with additional emission. On the other hand, the practice of debt financing is politically more favorable to the government than raising taxes. In countries where budget deficits are prohibited and financing through the issuing bank is also unacceptable, the revenue side of the state budget can only be financed through taxes. But tax increases are always negatively perceived by citizens whose opinion is not indifferent to the government, especially during elections. Therefore, through debt financing, the government can significantly increase its spending without adding to such an unpopular tax burden. This, by the way, explains the fact why recently credit financing has become one of the popular instruments of economic policy in most developed countries, whose debts have increased significantly over the past two or three decades.

Debt financing can stimulate economic growth. By increasing its expenditures through loans, the state thereby makes demand for investment and consumer goods. At the same time, a positive multiplier effect begins to operate, providing a stimulating effect on other sectors of the economy and employment.

Two American economists Thomas Sargent (Nobel Prize winner) and Neil Wallace proved that debt financing of the state budget deficit in the long run can lead to even higher inflation than emission financing. This idea is known in the economic literature as the Sargent-Wallace theorem.

The fact is that the state, financing the budget deficit through an internal loan (issuing government bonds), as a rule, builds financial pyramid(refinances debt), i.e. pays off past debts with a loan in the present, which will need to be repaid in the future, and the repayment of the debt includes both the amount of the debt itself and the interest on the debt.

If the government uses only this method of financing the public deficit, then there may come a point in the future when the deficit is so large (i.e., so many government bonds will be issued and the cost of servicing the public debt will be so significant) that its financing by debt way will be impossible, and equity financing will have to be used. But at the same time, the amount of emission will be much larger than if it is carried out in a reasonable amount (in small portions) every year. This can lead to a surge in inflation and even cause high inflation.

As Sargent and Wallace have shown, in order to avoid high inflation, it is wiser not to abandon the issuance method of financing, but to use it in combination with debt.

The debt method of financing the state budget deficit can lead to a deficit in the balance of payments. It is no coincidence that in the mid-1980s the term "twin-deficits" appeared in the United States. These two types of deficits can be interdependent. Recall the identity of injections and withdrawals:

G + Ex = S + T + Im

Where, I - investments, - government purchases, - exports, - savings, - net taxes, - import.

Regroup:

(G - T) \u003d (S - I) + (Im - Ex)

From this equality it follows that with an increase in the state budget deficit, either savings should increase, or investment should decrease, or the trade deficit should increase. The mechanism of the impact of the growth of the state budget deficit on the economy and its financing at the expense of domestic debt has already been considered in the analysis of the “crowding out effect” of private investment and output as a result of an increase in the interest rate. However, along with internal crowding out, an increase in the interest rate leads to a crowding out of net exports, i.e. increases the trade deficit.

The mechanism of external crowding out is as follows: an increase in the domestic interest rate compared to the world rate makes the securities of this country more profitable, which increases the demand for them from foreign investors, which in turn increases the demand for the national currency of this country and leads to an increase in the exchange rate of the national currency , making the goods of a given country relatively more expensive for foreigners (foreigners now have to exchange more of their currency in order to buy the same amount of goods from this country as before), and imports become relatively cheaper for domestic buyers (who now have to exchange less national currency to buy the same amount of imported goods), which reduces exports and increases imports, causing a reduction in net exports, i.e. causes a trade deficit.

Reducing the budget deficit is quite difficult for a number of reasons. The volume of obligations for the implementation of expenditures, which the state assumes, is very large. These obligations have been accumulating for decades, many of them are not subject to reduction, the reduction of others is an unpopular measure and affects the interests of influential structures. Some expenses are emergency and may increase suddenly. Finding new sources of replenishment of the revenue part of the budget is much more difficult: the increase in taxes has a negative impact on business activity in the economy, contributes to greater tax evasion; privatization of state property gives only a one-time receipt of money to the treasury, and so on. That is why even in developed countries the budget is more often reduced to a deficit than a surplus.

In order to balance budgets, governments may set limit dimensions budget deficit. If in the process of budget execution there is an excess of the limit level of the deficit or a significant decrease in budget revenues, then a mechanism for sequestering expenditures is introduced. The sequestration consists in a proportional reduction in public spending (by 5, 10, 15%, etc.) monthly for all budget items during the remainder of the current financial year. Protected articles are not subject to sequestration.

Among the specific measures to reduce the budget deficit, one should name such measures that, on the one hand, would stimulate the inflow of funds into the country's budget fund, and on the other hand, would help to reduce government spending, namely:

change in the directions of investment of budgetary funds in the industry National economy in order to improve production efficiency;

· wider use of financial incentives and sanctions, which allow to better take into account the specific conditions of management and stimulate economic growth;

a sharp reduction in the scope state economy and public funding;

reduction of military spending;

· retention of funding for only the most important social programs, a moratorium on the adoption of new social programs that require significant budget funding;

· prohibition of the country's central bank to provide loans to government agencies of any level without proper registration of debt with government securities.

In addition, in world practice, to reduce the budget deficit, a system of measures is widely used to stimulate the attraction of foreign capital into the country. At the same time, several problems of both a fiscal and economic nature are solved at once. Reduced budgetary spending intended for financing capital investments(which means that the gap between income and expenditure decreases), the base for the production of goods and services expands, a new taxpayer appears, and the state of the balance of payments improves.

According to the legislation, sources of its coverage in the form of internal and external borrowings and other means are provided for financing the budget deficit. In the process of budget execution, the size of the federal budget deficit should not exceed the total volume of budget investments and public debt servicing costs. The current expenditures of the budgets of the constituent entities of the Russian Federation and local budgets cannot exceed the volume of their incomes.

Proceeds from sources of financing the budget deficit of the constituent entity of the Russian Federation are directed only to finance investment costs and cannot be used to finance the costs of servicing and repaying the debt of the constituent entity of the Russian Federation.

The size of the local budget deficit cannot exceed 10% of the local budget revenue, excluding financial assistance from the federal budget and the budget of the subject of the Russian Federation. Proceeds from sources of financing the local budget deficit are used only to finance investment costs and cannot be used to finance the costs of servicing and repaying the municipal debt. The sources of financing the budget deficit are approved by the legislature.

3 Methods of budget deficit regulation

financing economic budget monetary

To overcome the budget deficit, it is necessary to “treat” the economy itself, because without ensuring dynamism in its development and really tangible effectiveness, it is impossible to achieve financial stability countries, no matter what progressive financial measures are applied in this case.

To date, three main approaches to budget regulation have been identified.

The first approach is related to the focus on achieving an annual balance of the budget, which means declaring the maintenance of its balance as a permanent self-sustaining goal of public finances. Such goal-setting of fiscal policy, in fact, reduces its effectiveness and nullifies its anti-cyclical and stabilization character. In conditions of depression, long-term unemployment, there is a reduction in income, which will invariably cause a decrease in tax revenues to the state treasury. In such a situation, a balance can be achieved either by increasing taxes, or reducing public spending, or a combination of both. And this means a contraction of aggregate demand, curtailment of social production. With a surplus in the state budget in the context of inflationary processes and growth in cash income, in order to prevent the upcoming excess of revenues over expenditures, the government must either reduce taxes, or increase government spending, or use both at the same time. In this case, the balance of the budget is achieved at the price of unwinding the inflationary spiral.

The second approach is focused on achieving a balanced state budget within the economic (business) cycle. In this case, annual budget deficits and surpluses are allowed, and fiscal policy is used by the state simultaneously as an instrument of both anti-cyclical regulation and budget balancing in the long run. This allows for an expansionary fiscal policy during the recession and depression stages (increase in government spending, reduction of the tax burden) and a destructive fiscal policy during the recovery and inflation stages. Despite the external attractiveness of such a mechanism for the implementation of fiscal policy, it clearly suffers from simplification. This is due to the absence of identical economic cycles, both in terms of the duration of individual phases and the cycle as a whole, and in terms of the depth of recessions and the peak of upswings. A long and deep recession may be followed by a short-term sluggish and slight recovery, and, conversely, a long and stable recovery phase may be followed by a short-term and shallow recession. In both cases, there will be a cyclical imbalance in the state budget.

The third approach is based on the idea of functional finance, the essence of which is to consider fiscal policy as merely an instrument of economic policy for the balanced development of the national economy. With this approach, macroeconomic stability is a self-sufficient element, while the balance of the state budget is shifted to the background and is considered only as one of the components of such stability. Therefore, the development of the economy can be accompanied by both budget deficits and surpluses. It is assumed that macroeconomic balance and economic growth automatically have a positive effect on overcoming the budget deficit and reducing public debt.

To overcome the budget deficit, it is necessary to normalize the economy itself. Without ensuring its dynamic development and really tangible efficiency, it is impossible to achieve the financial stability of the country, no matter what progressive financial measures are applied.

2. Deficit of the state budget of the Russian Federation

1 Sources of financing the federal budget deficit

The federal budget for 2012 was executed with a deficit of 39,446.1 million rubles (appendices 1, 13 and 14 to this explanatory note). The deficit for 2012 amounted to 0.1% of GDP, the primary surplus amounted to 0.4% of GDP.

The balance of sources of financing the federal budget deficit for 2012 amounted to 39,446.1 million rubles. At the same time, the total attraction from internal and external sources amounted to 1,330,116.5 million rubles; 5 million rubles and exchange rate difference - (-) 122,642.2 million rubles.

In accordance with the Program of State Domestic Borrowings of the Russian Federation for 2012, it was planned to attract borrowed funds in the amount of 1,310,203.0 million rubles, of which non-cash transactions - the program before the capitalization of banks and the exchange of non-standard OFZ issues from the portfolio of the Bank of Russia for standard 763 issues OFZ - 150,000 million rubles and 130,216.1 million rubles, respectively.

Thus, the planned volume of raising funds directly from the domestic capital market amounted to 1,029,986.9 billion rubles. In fact, the Ministry of Finance of Russia carried out borrowings in this market in the amount of 911,874.3 million rubles (88.5% of the planned volume, excluding non-cash transactions) .

Raising funds from the domestic capital market in a smaller amount than provided for by the program is due to a significant deterioration in the global financial markets in March-June 2012. There were no operations on pre-capitalization of banks at the expense of OFZs and exchange of OFZs in 2012.

The actual attraction of funds through the placement on market conditions in 2012 of government securities of the Russian Federation in terms of OFZ, taking into account the norms of the Budget Code of the Russian Federation, amounted to 788,301.9 million rubles, including under OFZ-PD - 788,301.9 million .rubles

In 2012, the Ministry of Finance of Russia placed four new issues by private subscription: GSO-PPS No. 35012RMFS, GSO-PPS No. 36006RMFS, GSO-PPS No. 36007RMFS and GSO-PPS No. 36008RMFS. Taking into account the norms of the Budget Code of the Russian Federation, the actual attraction of funds through placement by closed subscription in 2012 in terms of GSO amounted to 123,572.4 million rubles, including GSO-PPS - 123,572.4 million rubles.

In the reporting period, in accordance with Article 113 of the Budget Code of the Russian Federation, the sources of internal financing of the federal budget deficit in terms of government securities were reduced by a total of 23,156.6 million rubles, including the amount of accumulated coupon income (ACI) in the amount of 13,196 .6 million rubles and in the amount of income exceeding the nominal value in the amount of 9,960.0 million rubles,764 received by the Ministry of Finance of Russia when placing bonds at auctions, at secondary auctions and by closed subscription.

The decrease in debt on government external debt obligations of the Russian Federation for 2012 amounted to (-) 69,077.8 million rubles (2,266.5 million US dollars), of which:

repayment of the principal amount of the debt on government securities denominated in foreign currency - in the amount of (-) 38,726.5 million rubles (1,280.8 million US dollars), or 88.9% of the adjusted list due to a smaller number of applications from bondholders of the domestic state currency bonded loan, as well as exchange rate differences;

repayment of the principal amount of debt on loans from foreign governments, international financial organizations - in the amount of (-) 30,351.3 million rubles (985.7 million US dollars), or 77.1% of the adjusted list, due to the failure to conclude in 2012 a number of intergovernmental agreements, as well as exchange rate differences.

In 2013-2015, the federal budget deficit is projected as follows: 1.5% of GDP (991.9 billion rubles) in 2013, 0.6% of GDP (459.7 billion rubles) in 2014 and 0.1% GDP (92.2 billion rubles) in 2015. With a relatively small federal budget deficit, the volume of non-oil and gas deficit will remain at a fairly high level (in 2013 - 10.1% of GDP, in 2014 - 8.9% of GDP, in 2015 - 8.6% of GDP), which indicates that the dependency Russian economy on energy prices on the world market.

The main sources of financing the federal budget deficit in 2013-2015 will be state borrowings and proceeds from the privatization of federal property.

"Net" attraction of funds in the domestic and global financial markets during 2013-2015 will amount to 3,336.4 billion rubles, including: in 2013 - 1,376.3 billion rubles, in 2014 - 1,248, 7 billion rubles and in 2015 - 711.4 billion rubles. Despite the increase in government borrowings, the debt burden on the federal budget will remain within the limits that allow timely and full fulfillment of obligations on the state debt of the Russian Federation.

For 2013-2015 government borrowings are planned in excess of the federal budget deficit. This will make it possible to refrain from spending the Reserve Fund and replenish it at the expense of a part of oil and gas revenues.

In the event of the development of crisis trends in the global economy, the conditions for borrowing in the debt markets for the Russian Federation, as well as for many sovereign borrowers, will deteriorate significantly. Under the most negative scenario, the debt market may actually be "closed", which will not allow attracting funds in the required volumes on acceptable terms.

In such a situation, it will be possible to refuse to replenish the Reserve Fund, and in the most negative scenario, to use the funds accumulated in the fund to fulfill budget expenditure obligations.

In general, the spending of oil and gas revenues accumulated in sovereign funds negatively affects the macroeconomic stability of the country (inflation, exchange rate) and is a factor that directly affects the attractiveness of the Russian economy for foreign investors. In other words, the preservation of funds is a guarantee of greater opportunities for the Russian Federation to attract borrowed resources on favorable terms in the future. With a relatively calm situation in the economy and financial markets, it is advisable to refrain from spending the Reserve Fund, trying to borrow on the market on favorable terms. This strategy can be called "borrow and save."

The public debt policy of the Russian Federation for 2013-2015 will be aimed at achieving the following goals:

Ensuring a balance of the federal budget while maintaining the gains made in recent years high degree debt sustainability;

development and modernization of infrastructure national market capital to turn it into a stable source of financing for the growing needs of the budget;

· reducing the cost of government borrowing (servicing the public debt), taking into account the terms of borrowing and the actual conditions for the placement of internal and external loans;

· expansion of the circle of investors purchasing government securities;

· Preservation of Russia's presence as a sovereign borrower in the international capital markets as a result of regular borrowing in foreign currency by issuing bonds of the Russian Federation in moderate volumes;

· Maintaining a representative yield curve for government debt obligations of the Russian Federation in foreign currency, which is necessary to form adequate benchmarks for Russian borrowers.

The solution of the issue of the balance between internal and external borrowing will depend on the situation in the domestic and world financial markets, the effectiveness of solving the problem of developing the domestic market for public debt, maintaining a favorable macroeconomic situation in Russia, primarily in terms of maintaining a relatively low level of inflation and taking into account the priority of borrowing in the domestic debt market.

In the planned period, the main instrument for raising funds will be OFZ diversified by maturities. At the same time, the priority direction of the issuance policy will be the issuance of medium-term and long-term government securities. The issue of short-term instruments (up to 1 year) is regarded as an exceptional measure, the use of which can only be justified under extremely unfavorable market conditions, in the absence of funding opportunities through the issuance of medium-term and long-term government securities. The target period for the OFZ portfolio duration is 5 years.

The practice of placing government savings bonds (GSS) will continue to meet the demand of institutional investors, primarily those who place funds pension savings.

At the current stage, the instrument of state guarantees of the Russian Federation is being used more and more actively, acting as an important instrument of the post-crisis economic policy of the state. In 2013-2015, it is planned to provide the following state guarantees of the Russian Federation:

· on obligations of AHML OJSC, ROSNANO OJSC, Zapolyarye OJSC, OPK Oboronprom OJSC;

for the implementation of investment projects;

· on the obligations of organizations of the military-industrial complex for the implementation of the state armaments program within the framework of the state defense order;

· to support the export of industrial products;

· for projects implemented with the participation of international financial organizations.

The planned volume of provision of state guarantees of the Russian Federation in 2013 - 2015 will be:

in the currency of the Russian Federation in the total amount of 560.7 billion rubles, including: in 2013 - 331.5 billion rubles, in 2014 - 218.3 billion rubles, in 2015 - 11.0 billion rubles;

· in foreign currency - 13.9 billion US dollars, including: in 2013 - 5.0 billion US dollars, in 2014 - 4.3 billion US dollars, in 2015 - 4.6 billion US dollars.

In 2013 - 2015 on possible performance of the above state guarantees, budget allocations will be provided from sources of financing the federal budget deficit in the total amount of 588.4 billion rubles, including: in 2013 - 87.2 billion rubles, in 2014 - 250.3 billion. rub. and in 2015 - 250.9 billion rubles.

Cooperation with international development banks (hereinafter referred to as IDBs) will continue, including in the form of attracting limited funds, based on the following principles:

Implementation, together with the MDBs, of new projects in the areas of government controlled, environmental protection, energy efficiency, development of the financial market and micro financial services, improvement of the national system of hydrometeorology, physical culture and sports of socially unprotected groups of the population, development of forestry; the choice of a specific instrument of cooperation with the MDBs, as well as the determination of the share of Russian co-financing of the project, will be carried out separately for each project;

· expanding the practice of providing guarantees to the Russian Federation for projects implemented with the participation of MDBs, including using new approaches;

· expanding the participation of the Russian Federation in various MDB initiatives, including technical cooperation funds, direct investment funds and other cooperation instruments;

· assistance in increasing the portfolio of projects implemented by the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the Eurasian Development Bank (EDB) in the Russian Federation without financial obligations from the Russian Federation;

· active participation of the Russian Federation as a shareholder in the activities of the IDB, aimed at ensuring the maximum effective use advantages of international financial institutions in the interests of the Russian Federation.

It seems that interaction between the Russian Federation and the MDBs on the principles outlined above will make it possible to develop both the forms and areas of cooperation that have proven themselves in recent years, and new mechanisms for cooperation with the MDBs. The total amount of funds attracted from the MDBs in 2013-2015 may be about 660 million US dollars.

As of January 1, 2014, the public debt of the Russian Federation amounted to 9,040.5 billion rubles, as of January 1, 2015 it will amount to 10,779.7 billion rubles and as of January 1, 2016 - 11,730.7 billion rubles .

Figure 1 - Shares of external debt.

Thus, the total public debt of the Russian Federation will reach 14.4% of GDP by the end of 2015, while the share of domestic debt in the total public debt will almost reach 80%, with a corresponding decrease in the share of external debt.

Compensatory payments on pre-reform savings of citizens will continue in 2013-2015.

In 2013-2015, federal budget funds in the total amount of 150 billion rubles, 50.0 billion rubles annually, are provided for compensation payments on guaranteed savings of citizens.

Financing of the federal budget deficit will be carried out mainly at the expense of state borrowings and funds coming from the privatization of federal property (Table 2.1).

Table 2.1 - Sources of financing the federal budget deficit billion rubles.

Index	2012 (law as amended)

Total sources
Government borrowings, total
including:
attraction
redemption
Privatization
Other sources

Reserve Fund
execution of state guarantees

The federal budget deficit will be covered primarily by state borrowings and funds from the privatization of state assets. In 2012-2014, the Russian authorities plan to move on to restoring the Reserve Fund used during the crisis and replenishing it with additional oil and gas revenues. The funds of the National Wealth Fund (NWF) in 2012-2014 are planned to be used only in an amount equal to the financing of the formation of pension savings of citizens.

2.2 Analysis of the budget deficit

The deficit of the federal budget of Russia in 2013 after the introduction of amendments to it, which will be discussed at a government meeting on October 10, amounted to 0.7% of GDP. This was announced to journalists by the head of the Ministry of Finance of the Russian Federation Anton Silanov. “The deficit has decreased by 0.1 and will be 0.7% of GDP,” Prime news agency quotes the minister .

In the law "On the federal budget for 2013 and for the planning period of 2014 and 2015" the budget deficit for 2013 is set at the level of 521.415 billion rubles, or 0.8% of GDP. Russia can get a deficit-free budget in 2013, said at the investment forum "VTB Capital" "Russia is calling!". Russia completed the first half of 2013 with a budget surplus. According to the Ministry of Finance , the budget deficit in 2012 reached 12.82 billion rubles, or 0.02% of GDP.

As a result of the amendments, federal budget revenues for 2013 will increase by 40.5 billion rubles. “Basically, our oil and gas revenues are growing, but not oil and gas revenues are not growing,” Silanov said. “And the costs remain the same.” According to him, oil and gas revenues will increase by 546 billion rubles compared to the plan, while non-oil and gas revenues will decrease by 505 billion rubles compared to the planned value.

Reduction, and significant, expects income from privatization. “52 billion rubles is income from privatization. Decreased by 375 billion rubles [against the planned level],” Silanov said. From the data announced by the minister, it follows that initially it was planned to gain 427 billion rubles from privatization in 2013; so the sales revenue forecast state property for 2013 was cut by 8.2 times. The federal budget can receive in 2013 and in 2014-2016 1.7 trillion. rubles from privatization, the Ministry of Economic Development reported long before this revision, at the end of June 2013 .

The head of the Ministry of Finance also announced the forecast for the size of the department's borrowings in 2013. “In fact, we will take the target figure. The plan was 448 billion rubles, we will have to have about 430 billion rubles this year in terms of net attraction from the domestic market,” Silanov said.

At the end of September, he did not rule out that Russia in 2013 in the domestic market will take about 200 billion rubles less than the plan. The program of state internal borrowings for 2013 is 1.2 trillion. rubles.

The bill on the budget of Russia for 2014 and the planning period of 2015-2016 was adopted in the final, third reading at the plenary session of the lower house of parliament on November 22. 248 deputies voted in favor of the financial document, 145 voted against, and there were no abstentions.

According to the bill, federal budget revenues in 2014 will amount to 13.571 trillion. rubles (18.5% of GDP), in 2015 - 14.565 trillion. rubles (18.3% of GDP), in 2016 - 15.906 trillion. rubles (18.3% of GDP). Expenses for the same period will amount to 13.960 trillion. (19% of GDP), 15.362 trillion. (19.3% of GDP) and 16.392 trillion. rubles (18.9% of GDP), respectively.

The normative value of the Reserve Fund was approved for 2014-2016 in the amount of 5.132 trillion, 5.576 trillion. and 6.079 trillion. rubles. By January 1, 2015, domestic public debt should not exceed 7.246 trillion. rubles, by January 1, 2016 - 8.466 trillion. rubles, by January 1, 2017 - 9.335 trillion. rubles. By the same dates, the upper limit of the state external debt is planned at the level of 71.9 billion dollars / 55.3 billion euros, 78.8 billion dollars / 60.6 billion euros and 88.5 billion dollars / 68.1 billion euros, respectively.

Russian President Vladimir Putin signed the law on the country's budget for 2014-2016, according to a press release on the official website Kremlin. Deficit Budget Project was approved in the State Duma and the Federation Council, while it was decided to compensate for the difference between the country's income and expenses reserve fund.

"federal law approved the main characteristics of the federal budget for 2014, determined based on the projected volume of gross domestic product in the amount of 73,315 billion rubles and an inflation rate not exceeding 5%," the Kremlin notes.

It should be noted that the new three-year budget was for the first time compiled according to the program-target principle, when expenses are formed based on the goals set by state programs. It is planned to allocate 11.6 trillion rubles for the implementation of 39 programs in 2014. rubles, in 2015 - 12 trillion. rubles, in 2016 - 12.33 trillion. rubles. 0.94 trillion, 1 trillion, respectively, will go to 46 federal targeted programs. and 0.93 trillion. rubles.

The budget will be in deficit for the next three years. For example, according to the plan, in 2014 budget revenues will amount to 13.57 trillion. rubles, and expenses - 13.96 trillion. rubles. Concerning internal loans in 2014 they can reach 808.7 billion rubles, in 2015 - up to 1.147 trillion. rubles, in 2016 - up to 1.24 trillion. rubles. According to the document, annual borrowings in the foreign market should not exceed seven billion dollars. Public debt is likely to increase from 12% of GDP to 14.3% of GDP in 2016.

The next few years are likely to force the state to tighten its belts. In 2014-2016, federal budget revenues are projected to decline from 19.1% of GDP to 18.5% in 2014, to 18.3% in 2016. This is primarily due to the expected decline in oil and gas revenues. And therefore, in the coming years, expenses will be optimized, and resources will be redistributed to the highest priority tasks - the implementation of Vladimir Putin's May decrees, the state's social obligations and financial support for the pension system.

Inflation in 2014 is expected to reach 5%, and in the next two years the level will even drop to 4.5%. Tariffs for gas, heat and electricity for the population, starting from 2014, will increase by the inflation rate of the previous year, multiplied by 0.7.

Thus, a budget deficit is expected for the next three years. In 2014, it is expected to be 389.6 billion rubles (0.5% of GDP), in 2015 - 797 billion rubles (1% of GDP), and in 2016 - 487 billion rubles (0.6% of GDP). % of GDP).

Conclusion

The budget deficit is the excess of budget expenditures over its revenues. The volume of the budget deficit depends on a large number of macroeconomic factors that characterize the development of the economy from different angles. The budget deficit cannot be viewed otherwise than in the context of macroeconomic development and the state's economic policy in the area of state budget revenues and expenditures.

The state of the budget system can be called the most important criterion for the economic situation in the country, and one of the most important functions of the budget is the regulation of the economy.

The budget deficit in itself is not a catastrophic phenomenon, its increase can lead to serious negative consequences not only of an economic but also of a purely political nature. After all, people's trust in the budget system, in budget device of the country determines the trust in the government, the trust in the ongoing reforms. This trust is impossible in the conditions of an unbalanced budget - the main financial document of the country. And this should finally attract the close attention of the government, and manifest itself in concrete results.

The government budget deficit can be financed in three ways:

By issuing money

By borrowing from the population of their country (domestic debt);

By borrowing from other countries or international financial organizations (external debt)

Solving the problem of the budget deficit (or at least reducing its share in the state budget) depends on the correctness of the government's approach to its assessment and the introduction of civilized measures aimed at reducing the budget deficit. The adoption of well-thought-out laws aimed at supporting the national producer and developing production in general, as well as developing a mechanism for their implementation, is the surest way leading to a balanced state budget.

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Afanasiev P., Belenchuk A.A., Krivogov I.V. Budget and budget system, 2010.

Budget message of the President of the Russian Federation on budget policy in 2011-2013.

Budget Code of the Russian Federation of July 31, 1998 N 145-FZ (adopted by the State Duma of the Federal Assembly of the Russian Federation on July 17, 1998)

6. Visloguzov V. The budget deficit did not meet the expectations of the Ministry of Finance.// Kommersant, 2011, No. 4.

7. Dobrovolsky E. Budgeting. Step by step, 2010.

Ermasova N.B. Budget system of the Russian Federation, 2011.

9. Ershov M., Lokhmachev V., Tatuzov V., Tanasova A. On the debt policy of Russia in the conditions of overcoming the crisis. // Money and credit. - 2010. - No. 8 - S. 32 - 38.

10. Zainullina T.G. Budget system of the Russian Federation, 2010.

11. Karavaeva I.V. Domestic tax policy in the context of the budget deficit// "Finance", 2010, N 1

12. Maleeva N.V. New structure and procedure for applying the budget classification of the Russian Federation since 2010, 2010.

13. Message of the President to the Federal Assembly 2012.

Federal Law “On the federal budget for 2012”.

Federal Law “On the federal budget for 2013”.

16. Economic theory / Ed. A.G. Gryaznova - M.: 2010

Economic theory / Ed. I.P. Nikolaeva. - M.: 2011.

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Introduction

1. Theoretical foundations of budget balance management

1.1 The concept and meaning of the budget deficit

1.2 Classification of sources of financing the budget deficit

1.3 The essence of public debt and methods of managing it

2. Analysis of the budget deficit of the federal budget of the Russian Federation

2.1 General characteristics of sources of financing the federal budget deficit

2.2 Analysis of domestic public debt

2.3 Analysis of external public debt

3. Ways to overcome the federal budget deficit

3.1 Problems of balancing the federal budget of the Russian Federation and methods for reducing the deficit

3.2 Prospects for public debt and ways to reduce it

Conclusion

Bibliography

budgetfunding gapduty

Introduction

The implementation of economic reforms has changed the basis for the functioning of the country's budget system. The relations between public authorities at various levels have also changed, which required the development of a methodology for the formation of a new budget mechanism. The budgetary system of any federal state in certain periods of time exists in the conditions of budget imbalance. The normal functioning of such a system is associated with the need for a rational redistribution of budgetary resources using a clear mechanism for its implementation.

The budget deficit is a financial phenomenon that all the states of the world have inevitably faced in certain periods of their history. A fully balanced state budget, that is, a budget without a balance, is only theoretically possible.

For the last decade, Russia has been searching for effective ways to reform interbudgetary relations. Today, of course, there is a need to create a science-based financial mechanism for balancing budgets. At the same time, the quality of the balance of their budgets should be of great importance. However, it should be noted that many theoretical and methodological problems of balancing budgets have not been resolved due to the changed social, economic and political conditions for the functioning of the constituent entities of the Russian Federation. All this determines the relevance of the course work, especially during the ongoing global financial crisis.

The purpose of this work is to analyze the budget deficit, sources of its financing and public debt as the most important elements of the financial system of the state, their main characteristics.

The specific objectives of this course work are:

* determination of the essence of the deficit of the federal budget of the Russian Federation, sources of its financing and public debt;

* analysis of the composition and dynamics of sources of financing the deficit, as well as internal and external public debt;

* analysis of the current state and problems of balancing the budget of the Russian Federation, as well as identifying possible prospects and ways to reduce the state budget deficit and public debt.

1. Theoreticalbasicsmanagementbalancebudget

1.1 conceptandmeaningbudgetarydeficit

In the modern world, there are no states that at one time or another in their history would not face a budget deficit. It is due to various reasons. In some cases, the state may deliberately increase the budget deficit. In particular, in order to stimulate economic activity and aggregate demand during a downturn in output, the government may take special decisions aimed at increasing employment levels (for example, funding programs to create new jobs) or significantly reduce taxes. As a result, budget expenditures increase or its revenues decrease, resulting in a deficit. But this deficit is deliberately created by the state and is called a structural deficit.

There are also active and passive deficits. An active deficit arises as a result of the excess of expenditures over income, and a passive deficit arises as a result of a decrease in tax rates and other receipts, which is a consequence of a slowdown in economic growth, underpayments, etc.

There are short-term and long-term budget imbalances. Imbalances are short-term in nature if the excess of expenditures over revenues is limited to one financial year and reflects changes in the macroeconomic situation compared to the one in which the budget was prepared. This is mainly due to the lack of the necessary experience in macroeconomic forecasting, insufficient consideration of the possible changes in a number of circumstances.

For example, a reduction in revenues to the budget may occur as a result of falling export prices, a reduction in production volumes below the envisaged level, shifts in the structure of demand for manufactured products and a decrease in their competitiveness. The increase in the state budget deficit may also be caused by an unexpectedly sharp increase in public spending due to higher than expected inflation, the expansion of transfer payments, combined with the introduction of tax incentives, which is a very popular measure before the next elections.

1) an increase in the number of social payments, and hence the social burden on the budget;

2) the unfavorable demographic situation associated with the aging of the population, as a result of which the costs of paying pensions, spending on health care, etc., increase;

3) liberalization of tax legislation and, as a result, a reduction in tax rates (without a corresponding adjustment in public spending);

4) an increase in the volume of external debt.

In general, the state budget is determined by three main factors:

1) a long-term trend in the dynamics of tax revenues and government spending;

2) the stage of the economic cycle in which the economy is in the period under review;

3) the current policy of the state in the field of budget expenditures and revenues.

1) "tax amnesty", which allows taxpayers who have previously evaded taxes to pay at one time the entire amount equal to a certain part of the total tax collection;

2) measures to collect overdue tax payments;

3) introduction of temporary or added taxes;

4) deferred payment of wages to employees of the public sector;

5) postponing the mandatory indexation of wages in accordance with the dynamics of the inflation rate;

6) sale of state assets;

7) the presence of a hidden deficit due to quasi-budget spending.

The latter include centralized loans provided on favorable terms by the Central Bank. In addition, the Central Bank can finance certain operations related to public debt, cover losses from measures to stabilize the exchange rate, refinance agriculture, etc. As a result, the losses of the Central Bank are growing and inflation is increasing, while the deficit is not growing.

At high rates of inflation, when the differences in the dynamics of nominal and real interest rates are very significant, this overstatement of government spending can be quite significant. There are even situations when the nominal (official) deficit and government debt are growing, while the real deficit and debt are declining, which makes it much more difficult to assess the government's policy. Therefore, when measuring the budget deficit, an adjustment for inflation is required.

It is believed that the presence of a budget deficit in itself is not yet a signal of economic trouble. Very often, the deficit is seen as an important instrument of the state's economic policy, primarily macroeconomic regulation. Skillful handling of this tool allows the state to solve a fairly wide range of economic and social problems. However, it must be borne in mind that a long-term imbalance in the budget can have a negative impact on the size of aggregate demand and income, the price level, and the state of the balance of payments. Therefore, the strategic goal for any state, of course, is a balanced budget.

There are different ideas about how and for how long the budget should be balanced. Thus, according to the theory of an annually balanced budget, which was widely used as a theoretical basis for the state policy of most developed countries until the 1930s. XX century., It is necessary to achieve equality of income and expenditure of the state annually. This, according to supporters of this theory, allows national governments to pursue more responsible policies. The state lives within its means, does not accumulate debts, does not provoke inflation. If there is a decrease in income, then the state must either increase taxes or reduce spending.

In conditions when monetary incomes are increasing, the state should act in the opposite direction, i.e. cut taxes or increase spending. Currently, this theory is practiced by a limited number of countries, mainly countries with developing and transitional economies. In most developed countries, the theory of cyclical balancing of the budget has become widespread in the practice of state regulation of the economy. The foundations of this theory were laid by J. Keynes in the 30s.

During the boom phase, the government pays off its debts by increasing tax rates or by increasing the tax revenues of start-up businesses. Thus, by the end of the economic cycle, the budget becomes balanced. Balancing is carried out throughout the cycle: an excess of budgetary funds in the recovery phase compensates for the budget deficit in the crisis phase.

At the same time, a large role is assigned to "built-in stabilizers" (a progressive system of taxation, state transfer payments - social payments, unemployment benefits, etc.). With their help, the size of aggregate demand is able to automatically decrease or expand, depending on the phase of the cycle, in the opposite direction to the movement of the conjuncture. For example, when business activity declines as a result of a decrease in aggregate income, there is an automatic reduction in tax revenues and an increase in certain types of transfer payments, which leads to the formation of a cyclical deficit and partially offsets the reduction in aggregate demand.

In conditions of economic recovery, the opposite happens - tax payments increase, transfer payments decrease. Within the framework of many modern theories, in particular the theory of a compensating budget, it is considered impossible, and even unnecessary, to achieve its balance. Considering that in modern conditions there are stable factors that increase the budget deficit, it is necessary to use state credit more fully as a legitimate source of budget revenues. It is the state credit, according to the representatives of this theory, that is able not only to compensate for the gap between income and expenditure, but also to attract an excess part of savings and invest it in the economy. In most developed market economies, the government seeks to balance the budget over the longer term, on a cyclical or functional basis. In an unstable economy, when the situation is generally less predictable, the government is forced to balance the budget every year.

1.2 classifycationsourcesfundingdeficitbudget

1) internal sources:

* loans received by the Russian Federation from credit institutions in the currency of the Russian Federation;

* government loans carried out by issuing securities on behalf of the Russian Federation;

* proceeds from the sale of state-owned property, etc.;

2) external sources:

* government loans in foreign currency by issuing securities on behalf of the Russian Federation;

* loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency.

Sources of financing the budget deficit of the subject of the Russian Federation and the local budget can only be internal sources:

* government loans carried out by issuing securities on behalf of a constituent entity of the Russian Federation or a municipality;

* budget loans received from the budgets of other levels of the budget system of the Russian Federation;

* loans received from credit institutions;

* proceeds from the sale of property owned by the constituent entities of the Russian Federation and municipal property, etc.;

In most countries, including Russia, the following main methods of financing the budget deficit are used:

1) credit and money issue (monetization);

2) debt financing (internal and external);

3) an increase in tax revenues to the state budget, as well as income from privatization, the sale of state property.

Monetization as a way to reduce the budget deficit is an increase in the amount of money in circulation (including through bank financing). With monetization, the amount of money in circulation increases, the growth rate of the money supply significantly exceeds the growth rate of real GDP, which leads to an increase in the average price level. At the same time, all economic agents pay a kind of inflationary tax and part of their income is redistributed in favor of the state through increased prices.

The state generates additional income - seigniorage, i.e. new income from printing money. The monetization of the state budget deficit may not be accompanied directly by the issue of cash, but may be carried out in other forms. For example, in the form of expansion of Central Bank loans to state-owned enterprises at preferential rates or in the form of deferred payments.

If the balance of payments becomes negative, then this does not reduce the federal budget deficit, but, on the contrary, leads to its increase. Moreover, this has a negative effect on the exchange rate of the national currency - it is partially devalued. The mechanism for restoring the equilibrium of the balance of payments under these conditions is based on "binding" the excess money supply by selling part of the Central Bank's official reserves on the foreign exchange market, which makes it possible to stabilize the money market as a whole.

The monetization of the state budget deficit causes the smaller the increase in inflation in the country, the more open the economy is and the more foreign exchange reserves the Central Bank can spend on maintaining a relatively fixed exchange rate of the national currency and restoring the balance of payments. At the same time, the growth of inflation as a result of the monetization of the budget deficit turns out to be more significant in the flexible exchange rate regime, although the expenditures of official foreign exchange reserves are reduced.

The negative inflationary consequences of budget deficit monetization can be mitigated by tight monetary policy measures. If the central bank reduces the lending capacity of commercial banks (usually through an increase in the reserve ratio or the discount rate of interest) at the same time as it expands public sector credit to finance the budget deficit, then domestic market rates rise, holding back economic activity. As a result, private investment and net exports are declining, and inflation no longer has such a negative impact on the balance of payments.

1) there is a significant external debt, which excludes concessional financing of the budget deficit from external sources;

2) the possibilities of domestic debt financing are practically exhausted;

3) the foreign exchange reserves of the Central Bank are depleted, which is why the regulation of the balance of payments remains a paramount task;

4) the economy is able to withstand high inflation, and citizens are already accustomed to the constant rise in prices.

If the government nevertheless chooses the issuance method of budget financing, then the Central Bank must first of all introduce restrictions (limits) on lending to state enterprises and organizations. Otherwise, there may be a risk of complete displacement of the private sector from the credit market and a drop in investment activity. It is also necessary to constantly keep the inflation rate under control and monitor the state of the balance of payments.

In different directions of economic thought, debt financing is treated differently. Thus, representatives of the neoclassical trend, starting with A. Smith, have a negative attitude towards debt financing. They believe that A. Smith was right when he said that deficit financing is "a one-way street, once you enter it, you cannot turn back." As a result of debt financing, the wealth of the nation is reduced, the tax burden is aggravated, which hinders the accumulation of capital.

Public debt acts as a source of mobilization of additional resources and increase in financial opportunities, so public borrowing can be an important factor in accelerating the pace of socio-economic development. The objective need to use debt financing to meet the needs of society today is due to many factors, primarily the increase in government spending. Conducting an active social policy, ensuring defense capability, international activities, etc. demand from the state a constant increase in budgetary expenditures. Meanwhile, state budget revenues are always limited by the possibilities of taxation. In this sense, public credit helps to reduce the contradiction between the ever-increasing needs of society and the limited resources of the state.

Increasing tax revenues - at first glance, it seems the easiest way to reduce or eliminate federal budget deficits. But there are some circumstances that make one think that increased taxes can only cause an increase in deficits. Higher tax rates are associated with larger, not smaller, deficits. This is because if the government receives more financial resources, legislators will not only spend all the additional tax revenue, but will spend more. Thus, there are doubts about the thesis that tax increases will be an effective means of reducing deficits. Increasing taxes may worsen rather than alleviate the problem.

Thus, none of the methods of financing the state budget deficit has absolute advantages over the others and is not completely non-inflationary.

1.3 Essencestatedebtandmethodsmanagementthem

Public debt is the amount of debt on issued and outstanding government loans, loans received, including the accrual of interest on them, and government guarantees issued. Actually, the state debt is the debt obligations of the Russian Federation to legal entities and individuals, foreign and international organizations, and other subjects of law. The state debt of the Russian Federation is secured by all federally owned property constituting the state treasury.

The state debt of the Russian Federation includes debt obligations in the form of:

* credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign state and international financial institutions;

* government securities issued on behalf of the Russian Federation;

* agreements on the provision of state guarantees of the Russian Federation;

* RF guarantee agreements to ensure the fulfillment of obligations by third parties;

* re-formalized contractual obligations of third parties into the state debt of the Russian Federation on the basis of adopted federal laws;

* agreements and agreements on restructuring of debt obligations of previous years, concluded on behalf of the Russian Federation.

Debt obligations of a subject of the Russian Federation are carried out in the form of:

* credit agreements and contracts concluded on behalf of a constituent entity of the Russian Federation with individuals and legal entities, credit institutions;

* government loans of a constituent entity of the Russian Federation in the form of securities;

* contracts with the provision of state guarantees on behalf of the subject of the Russian Federation;

* suretyship agreements of a constituent entity of the Russian Federation to ensure the fulfillment of obligations by third parties;

* re-executed contracts of obligations of third parties into the state debt of a constituent entity of the Russian Federation;

* agreements and agreements on prolongation and restructuring of debt obligations of a subject of the Russian Federation of previous years, concluded on behalf of a subject of the Russian Federation.

Municipal debt-the totality of debt obligations of the municipality, which is provided by all municipal property constituting its treasury. The debt obligations of the municipality are carried out in the form of:

* credit agreements and contracts concluded by the municipality;

* municipal loans in the form of securities issue;

* contracts for the provision of municipal guarantees;

* contracts of guarantee of the municipality to ensure the fulfillment of obligations by third parties;

* debt obligations of legal entities re-registered as municipal debt on the basis of legal acts of local governments.

The repayment of the public debt is carried out at the expense of the revenues of the budgets of the corresponding level or through the issuance of new government loans. Public debt is repaid through treasuries and banks by buying back bonds on the stock exchange or directly from creditors through redemption draws or annual payments.

Under the market conditions for Russia, the most acceptable way to regulate the budget deficit is to cover it exclusively with public debt, which, in turn, needs centralized management.

Public debt management expenditures are shown as special financial transactions separately from the budget, and only interest payments on the debt are included in budget expenditures. An important role in the management of public debt is played by the secondary market for government bonds, where securities are traded. Operations in the primary and secondary markets for government bonds are carried out by investment and universal banks (dealers). The amounts that the state receives in loans from creditors, as well as interest on them, are repaid mainly from budget funds, current revenues and the issuance of new loans. This method of repaying government loans is called refinancing.

Public debt management operations are associated with cash execution of the budget, operations are performed by issuing banks. Banks participate in the issuance of loans, the payment of interest on them and the payment of bonds subject to redemption.

In order to manage public debt, the state resorts to clarifying the terms of a loan regarding profitability by reducing the nominal interest rate (conversion) or turning short-term obligations into medium- or long-term ones (consolidation) or combining several loans into one loan (unification), which forms a consolidated ( funded debt.

One of the methods of public debt management is the redemption of loans circulating in the loan capital market. In this option, the state instructs central and commercial banks to buy back loans with subsequent payment of funds to them. If the state does not have funds to pay off the state internal debt (bankruptcy), it can cancel the loan or refuse to pay it, but this method is rarely used in practice.

Public debt management in the Russian Federation is carried out by the Federal Treasury, which is organizationally part of the Russian Ministry of Finance. It is entrusted with the following tasks:

* registration of all debt obligations of the state and debt guarantees (external and internal);

* preparation of proposals for servicing public debts;

* Determining the levels, composition, time and conditions for issuing domestic and foreign loans, including the issuance of government securities.

2. AnalysisbudgetarydeficitfederalbudgetRussianFederations

2.1 Generalcharacteristicsourcesfundingdeficitfederalbudget

The amounts of sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008. according to the statistics of the Accounts Chamber are presented in Table 2.1.

Table 2.1. Sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008. (billion rubles)


General funding
including:
internal funding

debt obligations of the Russian Federation, subjects of the Russian Federation, municipalities denominated in securities indicated in the currency of the Russian Federation

state reserves of precious metals and precious stones
budget balances
external funding
including:

Thus, the amounts of sources of general financing of the deficit of the Federal budget of the Russian Federation did not change much during these four years.

Share ratios are presented in Table 2.2.

Table 2.2. Shares of sources of financing the deficit of the Federal budget of the Russian Federation in 2005-2008 (billion rubles)


General funding
including:
internal funding

debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities denominated in securities indicated in the currency of the Russian Federation
shares and other forms of participation in capital, which are in state and municipal ownership
state reserves of precious metals and precious stones
budget balances
external funding
including:
debt obligations of the Russian Federation, subjects of the Russian Federation, denominated in securities indicated in foreign currency
loan agreements and contracts concluded on behalf of the Russian Federation, constituent entities of the Russian Federation, indicated in foreign currency
other sources of external financing

This table shows that in 2007-2008 the main share of the sources of financing the budget deficit came from domestic financing and only a small part from external financing. However, in 2005-2006, the shares of internal and external sources were approximately equal, and in 2005, external financing in total was more than internal.

A significant proportion of external sources of financing the deficit in 2005-2006 were credit agreements and agreements concluded on behalf of the Russian Federation, constituent entities of the Russian Federation, indicated in foreign currency. And in 2007-2008, the share of loan agreements and contracts greatly decreased, and the main part of external sources began to be debt obligations of the Russian Federation, constituent entities of the Russian Federation, denominated in securities indicated in foreign currency.

This is due to the fact that in 2007 and 2008 external financial borrowings and credits (loans) of foreign governments, banks and firms were not provided for by the external borrowing program, which led to a decrease in the share of loan agreements and contracts from 34.17% in 2006 to 4.75% in 2007 and then to 2.02% in 2008.

Shares of shares and other forms of participation in the capital, which are in state and municipal ownership, as well as state reserves of precious metals and precious stones in the total amount of funding sources are insignificant. The dynamics of sources of financing the federal budget deficit in 2003-2008 is presented in the following diagram.

Rice. 2.1. Dynamics of deficit financing sources

federal budget in 2003-2008

2.2 Analysisinternalstatedebt

The dynamics of the volume of public domestic debt from 1993 to 2009 is presented in Table 2.3.

Table 2.3. The volume of the state internal debt of the Russian Federation

As of	The volume of the state internal debt of the Russian Federation, billion rubles
		including state guarantees in the currency of the Russian Federation

In accordance with the report of the Accounts Chamber, the total volume of the state internal debt of the Russian Federation in rubles as of January 1, 2008 amounted to 1301.15 billion rubles, or 4.3% of GDP for 2007, and as of January 1, 2009 - 1499.82 billion rubles, or 3.5% of GDP in 2008. The increase in the total amount of the public domestic debt of the Russian Federation in 2008 amounted to 198.67 billion rubles, or 15.27%, the ratio of public debt to GDP decreased over this period by 0.8 percentage points.

The increase in the total volume of the public debt of the Russian Federation in 2008 occurred, in particular, due to an increase in the public domestic debt by 198.67 billion rubles, or 15.27%.

Rice. 2.2. The volume and structure of the state internal debt of the Russian Federation as of January 1, 2008 (1,301.2 billion rubles)

Rice. 2.3. The volume and structure of the state internal debt of the Russian Federation as of January 1, 2009 (1,499.8 billion rubles)

According to the report on the state of the state internal and external debt of the Russian Federation, as of January 1, 2008, the state internal debt amounted to 1,301,151.9 million rubles (3.9% of GDP in 2007); as of January 1, 2009 - 1,499,824.4 million rubles (3.6% of GDP in 2008) and increased by 198,672.5 million rubles, or 15.3%. As of January 1, 2009, the state domestic debt does not exceed the limit of the state domestic debt (1,804,189.6 million rubles) established by Article 1 of Federal Law No. 198-FZ of July 24, 2007. Of particular importance in the formation of public domestic debt are government securities (Fig. 2.4.)

Rice. 2.4. State internal debt of the Russian Federation, expressed in government securities, billion rubles

2.3 Analysisexternalstatedebt

Table 2.4. The structure of the state external debt of the Russian Federation (at the beginning of the year; billion US dollars)


Public external debt (including obligations of the former USSR assumed by the Russian Federation)
including:
debt to countries participating in the Paris Club
debt to non-Paris Club countries
commercial debt
debt to international financial organizations
Eurobond loans
bonds of the internal state foreign currency loan (OVGVZ)
debt on loans from Vnesheconombank provided at the expense of the Bank of Russia
provision of guarantees of the Russian Federation in foreign currency

Rice. 2.5. The volume and structure of the state external debt of the Russian Federation as of January 1, 2008 (44.9 billion US dollars)

Rice. 2.6. The volume and structure of the state external debt of the Russian Federation as of January 1, 2009 (40.6 billion US dollars)

3. Waysovercomingdeficitfederalbudget

3.1 PproblemsbalancefederalbudgetRussianFederationsandmethodsdecreasedeficit

By the end of 2008, the cost of a barrel of oil was set at $130. In general, in 2008 electricity tariffs increased by 40%.

That is, the change in the global environment (mainly commodity prices) caused a rapid transition from a surplus to a deficit federal budget since 2009. In 2008, the federal budget surplus, according to the Ministry of Finance, was 1 trillion. 697 billion rubles, or 4% of GDP. And in 2009 there was a deficit, which amounted to 2 trillion. 326.14 billion rubles or 6.4% of GDP.

The Ministry of Finance summed up the results of the execution of the federal budget in the first third of the year 2010. January-April revenues amounted to 2.618 trillion rubles, expenditures - 3.063 trillion rubles, budget deficit - 445 billion rubles, or 3.4% of GDP (Fig. 3.1.). So far, this is far from the 6.8% of GDP expected by the Ministry of Finance by the end of the year. Separately for April, the situation with the deficit looks somewhat worse than in general for four months. The April deficit amounted to 5.7% of GDP against 3.9% in March.

Rice. 3.1. Revenues and expenditures of the federal budget in 2009-2010 (billion rubles).

As can be seen from the graph, federal budget revenues, starting from the second half of 2009, have not actually grown.

It should also be noted that since 2009 the deficit began to be financed from the Reserve Fund of the Russian Federation, and before that it was only formed. Thus, the accounts of the Reserve Fund became sources of financing the federal budget deficit.

· 18.07 billion US dollars;

· 12.42 billion euros;

· £3.04 billion.

Analysis of the sources of financing the city budget deficit. Analysis of the budget deficit, sources of its financing and public debt as the most important elements of the state's financial system. The concept and meaning of the budget deficit

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