WWW.DISSERS.RU


...
    !

Pages:     | 1 |   ...   | 107 | 108 || 110 | 111 |   ...   | 115 |

RUSSIAN ECONOMY IN trends and outlooks (continued) table 1 2 3 4 Construction of special and military objects 21 2 <0,01 <0,19 9,34 FTP Industrial utilization of weaponry and 15 131 9 401 0,15 0,military hardware (20052010) 13 718 217,75 0,10 0,Subsidies to Rostekhnologii public corpora- 36 12 <0,01 <0,tion 33 27,24 Realization of public functions associated with 3 544 497 0,03 0,provision of the national defense 3 213 13,39 Contributions to authorized capital and subsi- 23 185 20 402 0,23 0,dies to organizations of the defense and indus- 21 020 49,25 0,19 0,trial complex Classified expendtures 22 282 9 546 0,22 0,20 201 89,59 0,11 0,In Section 05 Housing and Utilities Sector FTP Industrial utilization of weaponry and 1 418 880 0,01 military hardware (20052010) 1 286 40,63 0,01 Provision of the military with the departmental 125 916 29 531 1,23 0,and permanent housing 114 158 34,90 0,37 0,Classified expenditures 35 708 18 028 0,35 0,32 374 125,67 0,20 0,In Section 07 Education The RF Defense Ministrys expenditures 44 511 1 961 0,43 0,40 355 4,63 0,Classified expenditures 14 576 952 0,14 0,13 215 7,76 0,02 In Section 08 Culture, motion picture industry, mass media The RF Defense Ministrys expenditures 4 893 903 0,05 0,4 436 25,57 0,01 Classified expenditures 207 13 <0,01 <0,188 6,54 In Section 09 Health Care, Physical Culture and Sports The RF Defense Ministrys expenditures 33 339 837 0,33 0,30 226 2,70 0,01 0,Classified expenditures 10 186 2 655 0,10 0,9 235 22,33 0,02 0,In Section 10 Social Policy The RF Defense Ministrys pension plans 125 908 1 487 1,23 0,114 151 1,29 0,05 0,The FSB pension plans 18 956 368 0,18 0,17 185 2,10 0,01 Procurement of housing for the retired and 18 048 5 765 0,18 0,designated for retirement military 16 363 54,39 0,07 0,Complementary monthly material allowance to 396 14 <0,01 <0,the disabled due to the military injures 359 3,65 Provision for conduct of refurbishment of indi- 401 47 <0,01 <0,vidual housing owned by the families of military 363 14,74 that have lost the breadwinner Compensations to family members of the de- 975 596 0,01 <0,ceased military 884 40,28 0,01 Relief and compensations to the military, indi- 11 226 2 175 0,11 0,viduals equaled to them, and those dismissed 10 178 17,61 0,02 0,from their ranks Social support and rehabilitation of disabled 71 42 <0,00 <0,because of military actions and combat trauma 64 39,40 In Section 11 Interbudgetary transfers Subsidies to CATEs budgets 8 876 3 490 0,09 0,8 047 30,25 0,03 0,Development of, and support to the CATEs 2 690 2 974 0,03 0,social and engineering infrastructure 2 439 54,94 0,03 0,Running the primary military and conscription 1 998 255 0,02 <0,records in territories with no military commis- 1 812 12,33 sariats in place Section 6.

Institutional Problems (continued) table 1 2 3 4 One-time allowance to a conscripts pregnant 1 977 715 0,02 <0,wife and the monthly allowance for a conscripts 1 792 66,40 0,02 child Residents relocation from CATE 527 840 0,01 <0,478 63,74 0,01 Material security for specialists of the nuclear- 4 165 473 0,04 0,arms complex of RF 3 776 14,32 0,01 Complementary monthly material security for 645 70 0,01 <0,disabled due to the military injury 585 10,67 Source: the IEP calculations.

Appropriations on the military personnel of the Ministry of Defense in real terms practically remained unchanged (with no raises in money allowance and pensions to the military in 2010), while out of Rb. 283 bln. earmarked to the Ministry of Defense in compliance with the federal budget Act on money allowances to the military as much as Rb. 22,894 bln. was saved across all 12 target expenditure items, or thrice as big as the prior years figure (Rb. 7, bln.).That is to say, the expenditure item Military personnel continues seeing a surplus whose existence cannot be ascribed to the quality of planning.

The target expenditure item Military training was crossed out from the 2010 budget classification. Appropriations for fuel and lubricants rose by 7% in real terms, but failed to compensate for the accelerated price rise for diesel fuel and jet fuel, all the more so, as by the end of the year the MoD had saved Rb. 8,105 bln. (16.5% of the earmarked amount) under the target expenditure item Payment for, and storage of, special fuel and fuel and lubricants.

The actual cut-backs on procurements of fuel and lubricants still failed to notably improve military training indicators in the Army and Navy compared with the prior year, when MOD had to cover a substantial fraction of its needs at the expense of its own inventories. The Ministrys actual spending on food supplies was up by 31.5% on a year-on-year basis, while those on material support dwindled again this time by 16%.

The 2010 appropriations on military pensions in nominal terms were increased by 8.9% vs.

the prior year, which can be ascribed just to the rise in the cohort of military pensioners due to cuts in the officer corps and liquidation of the institution of senior warrant officers. The MoD managed to save as much as Rb. 658 mln. on the target expenditure item Pension provision.

The 2010 direct military appropriations (Table 38) calculated according to the UN military expenditure standard accounted for 4.5% of the nations GDP, while, having been factored into appropriations associated with the past military activity (military pensions, utilization of chemical weapons, etc.), they hit 5.0% of Russias GDP.

Execution of the 2010 federal budget with regard to military expenditures did not display any drastic differences vs. the 2009 figures. Specifically, the Federal Treasury reports evidence a Rb 3,113 bln.-worth excess of the limit of expenditures by the consolidate budget quarterly breakdown over appropriations by section 02 National defense earmarked in compliance with the effective budget Act, which was noted since February. The said excess hit its peak in November (Rb. 15,863 bln.) and subsequently slid to 10,711 bln. by the end of the year. While assessing the executive branchs discretionary powers, a benchmark reference point is stipulated in part 1Art. 24 of the 2010 federal budget Act, which capped an increase in military appropriations at the expense of above-the-plan budget revenues in the frame of the consolidate budget quarterly breakdown with Rb. 8,879 bln. Consequently, by results of 2010, section 02 National defense posted savings worth a total of Rb. 1,546 bln., though 14,833 bln. was overspent on subsection 0201 Armed Forces of RF and another Rb. 4, RUSSIAN ECONOMY IN trends and outlooks bln. was overspent on subsection 0208 Applied research in the defense area, and both amounts were compensated for by savings across other subsections of section 02 National defense. In addition, a substantial reallocation of budget funds occurred in the MoDs budgets wherein savings on just fuel and lubricants (in other words, on military training) and money allowance to the military accounted for Rb. 31 bln. One can only guess on what the saved funds were spent.

Table Aggregate Indicators of the Federal Budget Military Expenditures and Other Associated Expenditures Proportion of appropriations, as % / its Amount of approchange vs 2009 ., as p.p.

Expenditure priations, In the 2009 federal as Rb. mln In GDP budget Overall direct military appropriations 2 020 637 19,70 4,1,09 0,Aggregate direct and indirect military appropriations related to the 2 204 479 21,49 4,current and past military activity 1,18 0,Aggregate appropriations across sections National defense and 2 366 702 23,08 5,National security and law enforcement activity 0,57 0,Source: the IET calculations The situation with the savings and overspending deserves a greater attention, for the aforementioned spare expenditures on the MoDs military personnel proved substantially greater than figures the Federal Treasury references to in it federal budget execution reports.

Table 39 gives a better idea of the size of spare amounts and cushions between the military budgets and reports on its execution. The Table was compiled on the basis of the data Russian Federation supplies annually by results of execution of military expenditures to the UN Secretary-General.

Table Unallocated Appropriations in RF Expenditures on the Military Personnel in 20002009, as Rb. Mln.

2000 2001 2002 2003 2004 2005 2006 2007 2008 22 465 37 291 40 692 61 743 61 850 53 629 78 188 88 399 113 259 127 Source: Objective information on military issues, including transparency of military expenditures: Reports by the UN Secretary- General, 20012010.

The aforementioned unallocated appropriations accounted for between 9 and 17% of the section National defense (or 0.250.47% of GDP) and proved many-fold greater than, for example, expenditures on the notorious 20042007 Federal Target Program1, on transition to draft so ingloriously failed by MoD as its customer and coordinator. Reasons behind, and the sense of, such a stubborn demonstration of the failure to allocate quite a sizable fraction of the nations military spending are of course mind-boggling.

The monthly dynamic of execution of expenditures across the largest subsections of the section National defense between 2008 and 2010 is presented in Fig. 2022. It is quite visible that the trend to contraction of the budget overhang accumulating by the end of the year, which manifested itself in 2009, the next year remained only in the R&D spending. Mean According to the Federal Treasury, the Government spent on this FTP as much as Rb 84,377 (See: URL:

http://fcp.economy.gov.ru/cgi-bin/cis/fcp.cgi/Fcp/ViewFcp/View/2007/166/. Access date: 10.02.2011).

Section 6.

Institutional Problems while, the two-month deadline for conclusion of contracts in the beginning of the year is not met, while the peak of making advance payments shifts to March and April.

30% 25% 20% 15% 10% 5% 0% Source: the IET calculations basing on the Federal Treasury data.

Fig. 20. Execution of the Federal Budget Expenditures by Sub-Section The Armed Forces of the Russian Federation in 200845% 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: the IET calculations basing on the Federal Treasury data Fig. 21. Execution of the Federal Budget Expenditures by Sub-Section Applied research in the area of national defense in 2008 Jul.

Apr.

Oct.

May Jan.

Jun.

Mar.

Feb.

Nov.

Aug.

Sep.

Dec.

Jul.

Apr.

Oct.

May Jan.

Jun.

Mar.

Feb.

Nov.

Aug.

Sep.

Dec.

RUSSIAN ECONOMY IN trends and outlooks 40% 35% 30% 25% 20% 15% 10% 5% 0% Source: the IET calculations basing on the Federal Treasury data.

Fig. 22. Execution of the Federal Budget Expenditures by Section 0208 Other Matters in the Area of National Defense in 2008Table 40 evidences that long-standing trends continue to persist in the Federation Subjects military expenditures the ones on mobilization and out-of-army training generally do not exceed the amount of transfers from the federal budget on exercising the primary military registration. (See Table 37).

Table Military Expenditures of the Consolidated Budgets of the Federation Subjects in 20042010, as Rb. mln* Name of the sub-section of the 2003 2004 2005 2006 2007 2008 2009 expenditure classification The Armed Forces of the Russian 3,5 0,5 0,3 Federation 0,1 0,3 0,3 Modernization of the Armed 1,0 Forces of the Russian Federation 0,5 and military establishments Mobilization and out-of-army 13,1 65,6 899,3 1 351,9 1 797,9 2 116,0 2 003,training 13,2 65,6 808,6 1 245,6 1 702,2 2 021,6 1 958,Mobilization preparation of the 449,7 532,4 485,4 708,3 861,2 1 137,2 1 045,4 1 298,economy** 405,6 500,6 468,6 692,8 840,9 1 063,9 989,7 1 247,Other matters in the national 109,6 32,8 5,5 0,7 4,4 <0,defense area 97,5 32,1 5,7 0,5 4,4 <0,Ministry of Interior forces 14,6 12,4 9,9 3,5 1,0 0,3 12,7 12,2 9,9 1,4 1,0 0,3 Security agencies 3,7 6,7 0,3 16,5 0,1 0,0 60,0 <0,2,1 6,5 0,3 16,5 0,1 0,0 60,0 <0,Border Guard bodies 0,1 0,1 Population and territory protec- 6 511,0 7 968,2 11 184,6 15 636,4 19 118,4 23 895,8 23 865,0 27 218,tion from emergency situations 6 244,1 7 281,3 10 958,9 14 367,0 18 292,6 21 456,7 21 712,6 25 527,of natural and technogenetics situations, civil defense *numerator as allocated, common denominator as eramarked.

** had not been included in the section National defense until 2005.

Source: the Federal Treasury.

Jul.

Apr.

Oct.

May Jan.

Jun.

Mar.

Feb.

Nov.

Aug.

Sep.

Dec.

Section 6.

Institutional Problems Table 41 presents Russias military expenditures over the period of 19992010. To avoid double count the data do not comprise the ones presented in Table 40.

Table Key indicators of the RF military expenditure in 1999-1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1 2 3 4 5 6 7 8 9 10 11 12 1. In nominal terms (in current prices), as Rb.bln Execution of the federal 115,6 191,7 247,7 295,4 355,7 430,0 581,1 681,8 831,9 1 040,8 1 188,2 1 276,budget expenditures by Section National Defense in the current budget classification a The federal budget appropria- 93,7 209,4 214,7 284,2 354,9 427,4 578,4 686,1 839,1 1 031,6 1 192,9 1 278,tions by Section National Defense:

in the current budget classification placed into other sections of 44,3 77,7 91,3 126,5 202,4 270,the budget classification b In a comparable budget 93,7 209,4 214,7 284,2 354,9 427,4 622,6 763,9 930,4 1 158,1 1 395,3 1 548,classification Military expenditures, the UN 202,6 294,4 325,9 447,0 499,0 665,0 822,1 850,2 1 127,2 1 176,4 datac Overall direct military appro- 128,9 270,4 283,4 357,7 464,2 552,7 770,3 1 003,9 1 214,4 1 502,8 1 832,5 2 020,priationsd Direct and indirect military 144,0 304,6 329,6 460,1 602,3 638,8 855,1 1 090,4 1 375,6 1 645,4 1 999,5 2 204,appropriations associated with the current and past military activity, combined e 2. In real terms (in the 2009 prices)f, as Rb. bln Execution of the federal 1 051,4 1 123,6 1 090,7 1 106,8 1 092,5 1 126,9 1 253,2 1 174,4 1 230,9 1 298,6 1 409,2 1 276,budget expenditures by Section National Defense in the current budget classification The federal budget appropria- 952,3 1 227,5 945,3 1 063,9 1 090,1 1 120,0 1 229,3 1 181,9 1 240,6 1 287,0 1 414,7 1 278,tions by Section National Defense:

Pages:     | 1 |   ...   | 107 | 108 || 110 | 111 |   ...   | 115 |



2011 www.dissers.ru -

, .
, , , , 1-2 .