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Or one more example of Уzero balancingФ: Subsection 1006 УOther issues in sphere of social policyФ in March was increased by 55 million rubles, in July Ц by another 17 million, and in November was cut by 85 million rubles (with the resulting reduction of the previously allocated sum of 1.623 billion rubles by 0.8 %).
This sidestepping and going round in circles34 could be both a consequence of the already mentioned competition for budget resources with the application of the usual bureaucratic practices at the For the introduction of alterations in the Federal Law УOn the Federal Budget for the Year 2008 and for the 2009 and 2010 Planning PeriodФ, see Federal Law No 193-FZ adopted by the State Duma on 23 October 2008.
For the first alteration, see Federal Law No 269-FZ adopted by the State Duma on 7 November 2007; for the second alteration, see Federal Law No 19-FZ adopted by the State Duma on 15 February 2008; and for the third alteration, see Federal Law No 122-FZ adopted by the State Duma on 4 July 2008.
For the federal budget for the year 2008 and for the 2009 and 2010 planning period, see Federal Law No 198FZ adopted by the State Duma on 6 July 2007.
For example, one of the sub-paragraphs of the first paragraph of Article 1, Federal Law No 193 reads as follows:
Уg) paragraph 1 of Part 7 shall be worded as follows:
У1) for the year 2008, in accordance with Annexes 28, 281, 282, 283, 29 (secret), 291 (secret), 292 (secret), (secret), 30 (top secret), 301 (top secret), 302 (top secret) and 303 (top secret) to the present Federal Law".
Only three and not four, because Federal Law No 269-FZ did not mention allocations.
This is particularly typical of the following sections of the federal budget: 02 УNational economyФ, 07 УEducationФ, 09 УPublic health care, physical culture and sportФ, 10 УSocial securityФ, and 11 Уinterbudgetary transfersФ.
interdepartmental level and the outcome of bureaucratic games inside the governmentТs departments, which forces the participants in the budgeting process to give a semblance of activity, even when there is no real need for it.
Table The share of classified expenditures in the 2003 Ц 08 federal budgets, in % Code and name of section (or sub Ц section) that contains classified 2003 2004 2005 2006 2007 expenditures 1 2 3 4 5 6 Total expenditure of federal budget 9.73 9.83 11.33 11.80 10.33 11.0100 ISSUES OF NATIONAL IMPORTANCE n/a 35 n/a 3.67 6.28 5.52 7.0108 International relations and international cooperation 31.88 18.04 Ц 0.01 < 0.01 3.0110 State material reserve 97.73 93.33 82.86 89.23 92.18 90.0111 Fundamental research Ц Ц 2.13 1.22 1.12 0.0115 Other issues of national importance n/a n/a 0.05 0.72 0.28 1.02 NATIONAL DEFENSE 37.22 38.40 42.06 42.77 45.33 46.0201 Armed Forces of Russian Federation 35.39 36.11 33.07 35.59 37.11 39.0204 Preparation of economy for mobilization 100.0 100.0 100.0 100.0 100.0 100.0205 Preparation for and participation in ensuring collective security and peace Ц keeping activity Ц Ц 100.0 100.0 100.0 Ц 0206 Nuclear weapons complex 100.0 100.0 100.0 100.0 100.0 100.0207 Implementation of international obligations in sphere of national defense 100.0 41.05 45.22 46.90 50.65 100.0208 Applied scientific research in sphere of national defense n/a n/a 98.37 93.94 93.69 93.0209 Other issues in sphere of national defense n/a n/a 2.49 8.79 24.38 29.0300 NATIONAL SECURITY AND LAW Ц ENFORCEMENT ACTIVITY 23.33 20.79 28.52 31.64 31.07 31.0302 Internal security agencies 3.40 3.01 4.76 6.31 5.16 4.0303 Internal forces 13.21 11.10 11.76 10.31 9.80 10.0306 Security agencies 100.00 98.91 97.80 95.49 97.31 99.0307 Frontier service agencies 19.73 22.88 100.00 98.97 97.62 100.0309 Prevention and liquidation of consequences of emergency situations and natural disasters, civil defense 43.69 41.74 59.02 62.39 50.65 51.0312 Applied scientific research in sphere of national security and law Ц enforcement activity n/a n/a 73.95 66.41 64.43 75.0314 Other issues in sphere of national security and law Ц enforcement activity n/a n/a 8.26 50.71 39.95 50.0400 NATIONAL ECONOMY n/a n/a 0.05 0.02 0.44 0.0411 Applied scientific research in sphere of national economy n/a n/a Ц Ц 5.23 5.0412 Other issues in sphere of national economy n/a n/a 0.12 0.06 < 0.01 0.0500 HOUSING AND UTILITIES SECTOR n/a n/a Ц 3.42 0.85 13.0501 Housing sector n/a n/a Ц 4.22 5.69 16.07 EDUCATION Ц Ц 2.76 2.69 2.39 2.0701 Pre Ц school education Ц Ц 2.03 2.17 2.44 2.0702 Comprehensive education Ц Ц 1.51 1.91 2.14 2.0704 Secondary vocational education Ц Ц 1.06 1.03 1.02 0.0705 Retraining and advanced training Ц Ц 16.85 15.78 17.22 1.0706 Higher vocational education Ц Ц 3.15 2.93 2.53 3.0709 Other issues in sphere of education Ц Ц 0.30 0.33 0.28 0.0800 CULTURE, CINEMATOGRAPHY AND MASS MEDIA Ц Ц 0.17 0.17 0.21 0.0801 Culture Ц Ц 0.14 0.10 0.16 0.0804 Periodical press and publishing houses Ц Ц 13.46 7.45 2.57 2.0806 Other issues in sphere of culture, cinematography and means of mass communication Ц Ц 0.02 0.15 Ц Ц 0900 PUBLIC HEALTH CARE, PHYSICAL CULTURE AND SPORT Ц Ц 4.30 3.99 2.57 4.0901 Inpatient medical care Ц Ц 5.61 4.66 2.94 3.0902 Outpatient medical care n/a n/a n/a n/a n/a 13.0905 Health resorts and rehabilitation n/a n/a n/a n/a n/a 13.0907 Sanitary and epidemiological wellbeing n/a n/a n/a n/a n/a 2.0908 Physical culture and sport Ц Ц 0.28 0.26 0.24 0.0910 Other issues in sphere of public health care, physical culture and sport Ц Ц Ц Ц Ц 1.1000 SOCIAL POLICY Ц Ц Ц Ц Ц 0.1003 Social security of population Ц Ц Ц Ц Ц 0.1100 INTERBUDGETARY TRANSFERS Ц Ц Ц Ц 0.16 Ц 1101 Financial aid to budgets of other levels Ц Ц Ц Ц 0.50 Ц Source: the IETТs computations based on the data from the 2003 Ц 2008 federal budgets (the data for 2003 Ц 2007 have been brought in conformity with the corresponding sections and subsections of the budget classification introduced from January 2008). For the year 2008, the data from Federal Law No 193-FZ of 8 November 2008 under Section 02 have been augmented by the data from other Sections taken from Federal Law No 122-FZ of 22 July 2008.
In addition to the specifically incremental character of the 2008 federal budget as a document, its significantly decreased transparency became manifest simply because of the higher share of classified Not applicable, because of changes in the structure of budget classification.
items in federal budget expenditure, which has become a marked trend in the last few years (see Table 1).
Thus, while in the initial version (July 2007) classified items constituted УonlyФ 789 billion 253 million rubles, in the final version they increased to 839 billion 320 million rubles However, it is worthwhile to note in this connection that growth in the amount of classified expenditure items (by 6.1 %) was still behind that of the federal budget as a whole (by 6.9 %).
The next important feature associated with the fact of the budgetТs diminished informative value is the structure of the published appendices to the budget, which from the year 2008 onwards no more contains expenditures by section and subsection of the budget expenditure classification. These have remained non-classified, being openly published in the RF Ministry of FinanceТs explanatory notes, in the resolutions issued by related committees of both chambers of the RF Federal Assembly and in the reports of the Federal Treasury on the execution of this countryТs federal and consolidated budgets, and we believe that there is no reason at all why they should not be published as part of the budget.
Therefore, at present it has become in principle impossible to get any correct and detailed picture of federal budget expenditure from an officially published budget. Thus, the complete amount of expenditure, presented in Table 2 under Section УNational DefenseФ as part of the final version of the federal budget, could be obtained only from the Resolution of the Council of the FederationТs Committee on Defense and Security concerning Draft Law No 107474-5 of 24 October 2008 36.
Table Direct military expenditures of the Federal Budget under the item УNational DefenseУ Amount in FB- Difference between Share of expenditures, % / growth 08, in mln expenditures of against 2007, by item Code Section and sub-sections roubles, / same FB-08 and FB-07, with regard to with regard to amount in 2007 mln roubles / FB-08 GDP prices growth, in % 0200 National Defense 1 031 558 Ц6 530 14.69 2.832 573 Ц0.78 1.84 Ц0.0201 Armed Forces of Russian Fed- 748 934 Ц1 696 10.67 1.eration 604 466 0.28 1.38 Ц0.0203 Mobilization preparedness and 5 045 Ц85 0.07 0.military training for civilians 4 072 Ц2.04 0.01 Ц 0204 Mobilization preparedness of 3 500 Ц1 911 0.07 0.economy 2 825 Ц40.35 0.01 Ц 0205 Preparation and participation in 559 334 0.01 0.safeguarding collective security 451 285.86 0.01 Ц and peace-keeping activity 0206 Nuclear Weapons Complex 17 084 1 690 0.24 0.13 788 13.97 0.06 Ц 0207 Realization of international 3 911 Ц3 508 0.06 0.obligations in sphere of mili- 3 157 Ц52.64 -0.05 Ц0.tary-technological cooperation 0208 Applied research in national 133 343 Ц15 138 1.90 0.defense sphere 107 621 Ц12.33 0.02 Ц0.0209 Other issues in national defense 119 182 13 784 1.70 0.sphere 96 192 16.73 0.44 0.A comparison between the amounts of expenditures under Section 02 УNational defenseФ in and 2008 in permanent prices37 have demonstrated a 0.79 - percent decrease in the 2008 allocations on the previous year. The estimates of direct and indirect military expenditures38 in the RF federal budget, applied for international comparisons, at present cannot be done exclusively on the basis of the officially published text of Federal Law No 193-FZ, and so we are going to offer them later, as more data appear in other publications.
Obtained by applying the GDP deflator coefficient (123.9 %) for the year 2008, taken from the forecast of socioeconomic development of the RF Ministry for Economic Development and Trade as of 21 August 2008.
For the previous estimation for the year 2008, see: Ekonomiko-politicheskaia situatsiia v Rossii. 2008. FevralТ.
[The Economic and Political Situation in Russia. 2008. February.] P. 60Ц62.
When this countryТs President says that Уour society must continue calm and steady work to build up its democratic institutions and not delay this workФ39, this applies also to the state budget Ц transparent for all. And in this respect Russia still has a long way to go. The fist and most effective step in the struggle against corruption would not be the adoption of special laws, but the increased transparency of the budget, for which one needs only political will, and nothing else.
Regretfully, the 2009Ц2011 federal budget, signed by the President on 24 November,40 gives no particular reasons for optimism, because it just conserves the well-known features that Russia has in common with the third world countries 41. There is strong probability that next year we are going to see the budget being changed every two months.
D. Medvedev. Poslanie FederalТnomu Sobraniiu Rossiiskoi Federatsii. [Message to the Federal Assembly of the Russian Federation]. Moscow, 5 November 2008. http://www.kremlin.ru/text/appears/2008/11/208749.shtml.
For the federal budget for the year 2009 and for the 2010 and 2011 planning period, see Federal Law No 204FZ adopted by the State Duma on 31 October 2008.
A low level of expenditures on healthcare, education and protection of the environment. See Zakliuchenie Schetnoi Palaty Rossiiskoi Federatsii na proekt federalТnogo zakona УO federalТnom biudzhete na 2009 god in a planovyi period 2010 i 2011 godovФ (The Conclusion of the Audit Chamber of the Russian Federation with regard to the Draft Federal Law УOn the Federal Budget for the Year 2009 and for the 2010 and 2011 Planning PeriodФ. Moscow, 19.09.2008. P. 28. http://www.ach.gov.ru/activity/annotation/zakluch/arch/2009-2011.doc.
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