CC BY
37
Section 8. Finance law
DOI: http://dx.doi.org/10.20534/EJLPS-16-4-90-92
Ulanova Aigerim Ulanovna, Far Eastern Federal University, student, School of Economics and Management E-mail: a.ulanova95@gmail.com Babkina Aleksandra Mikhailovna, Far Eastern Federal University, student, School of Economics and Management E-mail: babkina1718@mail.ru Alpysbaev Timur Bayambekovich, Far Eastern Federal University, student, School of Economics and Management E-mail: tima.football@mail.ru Ponomarev Oleg Vladimirovich, Far Eastern Federal University, senior professor, Juridical School E-mail: o. v.ponomarev@mail.ru
The realization of budget system's principle of transparency (openness) in the Russian Federation
Abstract: The article is dedicated to aspects of providing budgets' transparency (openness) and accessibility in the Russian Federation's budget system. Authors considered realization of the principle of transparency (openness) in the Russian Federation. In conclusion, it proposed recommendations for improvement of providing principle of budgets' transparency (openness). Keywords: budget, budget law, budget system, principle of transparency.
The budget system in the Russian Federation is - budget autonomy;
the key link of the state financial system, whereby - equality of budget rights of the Russian
the national income redistribution is carried out, so Federation's subjects and municipal units;
as the government continues acting. - fullness of income, expenditure and budget
The construction of any system is based on cer- gap's funding sources' disclosure;
tain principles and the state budget system is not an - budget balance;
exception. The principles are legislated in the article - budgetary funds' efficiency of utilization;
28 of the Russian Federation's Budget Code [1]: - total budget expenditures' coverage;
- budget unity in the Russian Federation; - transparency (openness);
- delimitation of income and expenditure, bud- - validity of the budget;
get gap's sources of funding between different levels - targeting and purposive character of the bud-
of the Russian Federation's budget system; getary funds' utilization;
The realization of budget system's principle of transparency (openness) in the Russian Federation
- jurisdiction of budget expenditure;
- cash unity.
One of the main objectives of fiscal policy is the increase of level of information accessibility and openness of budgets to the citizens. Nowadays the Ministry of Finance accepts the need of the establishment of the mechanisms which provide budget openness for the development of country's fiscal system [8].
The principle of the budget transparency (openness), which fixed in the article 36 of the Russian Federation's Budget Code, signifies compulsory publication in mass media approved budgets and budget execution reports, the budget projects, which are itemized into the representative public and local authorities, the information accessibility's provision, which is set in the information and telecommunication network «Internet» in the unified portal of the Russian Federation's budget system. Herewith, in this article secret budget items, containing the National Security Information, could be set as an exception of the transparency's principle [1].
It should be noted that the main idea of the budget openness consists in calling citizens into active participation of budget matters' discussion. That is to say, the state budget should partially depend on public opinion [3, P. 63].
However, the realization of the transparency's principle faces some problems. So far, there is no certain system of quantitative parameters. Therefore, the realization presents itself as problematic.
Furthermore, Ktsoeva E. R. draws attention to that the following positions are not legislated [6, P. 288]:
— Requirements to the amount of information available to public access;
— Certain statutory standards which evaluate the character and the fullness of information concerning to the formation and realization of the different levels' budgets;
Nevertheless, we cannot claim that currently there is a lack of any characterization factors of the budget system's transparency. In 2015 Scientific Research Institute of Finances in partnership with the Centre of applied economics by the order of the Russian Federation's Finance Ministry drew up a rating of the Russian Federation's subjects on
the budget data's openness level. In terms of the rating's data we calculated the mean score through the subjects which figures up to 77.86 of 210. Herewith Krasnodar Region heads the rating as it got 185 points, and Sevastopol takes the last position as it got 9.50 points [7].
In reference to the budget process's openness in Russia in the aggregate, so, according to the international rating «Open Budget Index», in 2015 Russia took the 11th position, in 2012-10th, in 2010-21th [9]. It approves the fact that the Finance Ministry's activity over recent years is targeted at the budget openness's improvement. Nevertheless it is noted in the research that the budget project in Russia is insufficiently full: there is a lack of data of certain financial activity's types, including non-budget funds' data, tax expenses, contingent and future liabilities as well as financial and other assets. The significant disadvantage made by the experts is the failure to the civil budgeting process, intended to the society, which is unaware of public finances.
Boltinova O. A. also claims the problem of the information delivery's accessibility. She states that the federal budget is getting more complicated from year to year, and it has a hard time understanding of its corresponding income and expenditure's items for a member of the public. Now therefore, the transparency's principle does not realize in full extent in the budget activity's practice [5, P. 813].
In order to implement the transparency's (openness) principle it is critically important to follow the procedure of the provision of the national accounts of all level. However, particularly on the municipal unities' level, the national accounts' furnishing and approval are of an official nature. So in a number of works it is suggested to introduce the public hearing of the annual national accounts' project, on the stage of emergency, external test, approval of the budgetary accounts and the assignment of this institute in the Russian Federation's Budget Code [4].
The budget targets are to be transparent and intelligible for a member of the public, business, the subjects and local authorities, and particularly those, which refer to the sorting out regional and local problems, and refer to business support. One of the tools of the budget system transparency's improvement could be an electronic budget which aim to provide
transparency, openness and accountability of the public and local authority's activity. Moreover, it could help to improve quality of the financial management of the general government sector due to creating a single information space and using information and telecommunication technology in the sphere of the public treasury management [2]. Nevertheless, at present the implementation of the electronic budget's development has such obstacles as general economic factors and a set of objective causes:
- State and municipals legal framework's imperfection in the sphere of information and communication technology;
- Unpreparedness of the public authorities for the implementation of the effective technologies of cooperation with the citizens and commercial entities;
- Imperfect level of the internal skills in the context of creation and implementation of information and communication technologies;
- Underdevelopment ofthe material and technical;
At the same time the use of the electronic budget's system provides the following advantages:
- unitizing of budget process, arrangement and presentation of the regulated accounts which excludes the need of frequent manual information's entering;
- Adoption to the legally valid workflow in the matter of public treasury management;
- Automatization of the document processing and control of the commissions' execution, formation of the central storage's regulatory and other documents. «The electronic budget» allows to use the unified registers and classifiers and raises the possibility of central cooperation with federal registers and portals.
To sum up, considering the practical accomplishment of one of the budget system's principles in Russia we can lead to an important conclusion that currently this principle is not fully held. However, the policy of public authorities leads to expect solving actual problems.
References:
1. Federal law "The Russian Federation's Budget Code" from 31.07.1998 - No 145 - FL//Access mode: http://www.consultant.ru
2. Russian Federation's Government edict from - 20.07.2011 r. - No 1275-p.//Access mode: URL: http://www.consultant.ru
3. Dementev D. V. "Russian Federation's Budget System": book/D. V. Dementev. - KNORUS, - 2016. -332 p.
4. Beher B. B. Public hearings as one of the mechanisms of the implementation of the budget transparency's principle//Leningrad law journal. - 2013. - No 1. - P. 203-209.
5. Boltinova O. A. To the question of the accomplishment of the transparency's principled/Contemporary issues of Russian law. - 2013. - No 07. - P. 810-815.
6. Ktsoeva E. R. The analyses of practical accomplishment of the budget system's principles in the Russian Federation.//Science Time. - 2014. - No 12. - P. 287-290.
7. Method of the subjects' rating in the Russian Federation on the level of budget data's openness [Electronic resource] Access mode: URL: http://open.gov.ru/
8. Main trends of the budget policy for and for the planned period of 2017 and 2018 [Electronic resource] Access mode: URL: http://minfin.ru/
9. Open Budget Survey. «The Open Budget Index» [Electronic resource]. Access mode: URL: http://www. internationalbudget.org/
