§ Credit agreements and agreements concluded on behalf of the Russian Federation as a borrower with credit institutions, foreign states and international financial organizations;

§ State loans made by issuing securities on behalf of the Russian Federation;

§ Agreements and agreements for the RF to receive budget loans and budget loans from the budgets of other levels of the budget system of Russia;

§ Agreement on the provision of state guarantees by the Russian Federation;

§ Agreements and agreements, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of Russia's debt obligations of previous years.

Servicing the public debt is associated with the redistribution of income in the country. To pay off the debt, you can use the assets of the state, privatizing state property. Another approach is associated with increasing budget revenues by expanding the tax base. The burden of service is shifted to the taxpayers. Another source of debt repayment can be loans from the Central Bank.

However, in the conditions of the country's main bank independent of the government, it is very difficult to use emission to reduce debt. Serving the external debt actually means the legal export of capital, which is reflected in a separate line in the balance of payments, that is, it leads to the redistribution of part of the national income through the fiscal and monetary system in the interests of non-residents.

Financing the budget deficit from domestic sources also does not always contribute to the development of the national economy. An increase in domestic debt means an increase in the share of government borrowing in the financial market. This can lead to competition for resources in the domestic financial market, an increase in interest rates and a decrease in the capitalization of the private securities market. In addition, investments are reduced, since investment projects with a profitability not exceeding the interest paid on government securities together with the risk premium will remain unfulfilled.

Public debt is associated with the redistribution of GNP and part of the national wealth for the formation of additional resources of the state through loans of funds from individuals and institutions, as well as through loans from foreign states. Structurally, government debt includes:

§ financial debt

Monetary obligations of the state in connection with the loan of credit funds

§ administrative debt- arrears in payments (for example, arrears in payment of wages).

Sometimes government debt may also include government debt with sureties (for example, financial guarantees to facilitate export-import activities).

The origin of credit funds allows us to consider them as the internal and external debt of the state. The state's creditors are:

§ banking system

§ non-banking sector (for example, the social insurance system)

§ foreign public and private organizations.

Public debt comes in two main forms:

§ Government securities liquid, anonymous, can freely circulate on the secondary market

§ Debts formalized in the form of an entry in the accounts

Cannot be assigned or sold. In this form, as a rule, an insignificant part of the public debt is drawn up.

Debt obligations of the Russian Federation may exist in the form of obligations under:

• 1) loans attracted on behalf of the Russian Federation as a borrower from credit institutions, foreign states, including for targeted foreign loans (borrowings) of international financial organizations, other subjects of international law, foreign legal entities;
• 2) government securities issued on behalf of the Russian Federation;
• 3) budget loans attracted to the federal budget from other budgets of the budgetary system of the Russian Federation;
• 4) state guarantees of the Russian Federation;
• 5) other obligations previously attributed in accordance with the legislation of the Russian Federation to the state debt of the Russian Federation.

Debt obligations of the Russian Federation can be short-term (less than one year), medium-term (from one year to five years) and long-term (from five to 30 years inclusive).

Public debt can be classified according to various criteria. Public debt is subdivided into capital and current. Capital public debt - the entire amount of issued and outstanding debt obligations of the state, including the accrued interest that must be paid on these obligations. Current debt includes government expenditures on payment of income to creditors and settlement of obligations that are due.

According to the level of management, public debt is divided into:

• 1) the state debt of the Russian Federation;
• 2) the public debt of the constituent entity of the Russian Federation (represents a set of debt obligations of the constituent entity);
• 3) municipal public debt (represents a set of debt obligations of a municipal formation).

According to the currency criterion, public debt is divided into external and internal: ruble-denominated debts refer to internal debt, and foreign currency - to external. In international practice, there is another definition of external debt - as the total debt to non-residents, and domestic debt - as the total debt to residents.

The volume of the state external debt of the Russian Federation includes:

• 1) the nominal amount of debt on government securities of the Russian Federation, the obligations for which are denominated in foreign currency;
• 2) the volume of the principal debt on loans received by the Russian Federation, and the obligations for which are denominated in foreign currency, including for targeted foreign loans (borrowings) attracted under state guarantees of the Russian Federation.
• 3) the amount of obligations under state guarantees of the Russian Federation, expressed in foreign currency.

The volume of the state domestic debt of the Russian Federation includes:

• 1) the nominal amount of debt on government securities of the Russian Federation, the obligations for which are denominated in the currency of the Russian Federation;
• 2) the amount of the principal debt on loans received by the Russian Federation, and the obligations for which are expressed in the currency of the Russian Federation;
• 3) the amount of the principal debt on budget loans received from the Russian Federation;
• 4) the amount of obligations under state guarantees, expressed in the currency of the Russian Federation.

The maximum amount of domestic debt is approved by the law on the budget for the corresponding financial year (federal law, the law of a constituent entity of the federation, or a local authority). The maximum volume can be exceeded by the Russian government if this reduces the cost of servicing the state debt. The budget law also establishes the maximum amount of borrowed funds allocated by Russia, the constituent entities of the Federation or municipalities to finance the budget of the corresponding level.

For a constituent entity of the Federation, this limit should not exceed 30% of budget revenues for the current financial year, excluding financial assistance from the federal budget and borrowed funds raised in the current year. For municipalities, it should not exceed 15% of local budget revenues without the participation of financial assistance from higher budgets and borrowed funds in the current year.

The maximum amount of expenditures for servicing the state debt of a constituent entity of the Russian Federation or municipal debt should not exceed 15% of the volume of budget expenditures of the corresponding level. If these costs exceed 15%, then the following sanctions may be applied:

• 1) revision of the budget of the subject of the Federation;
• 2) transfer of the execution of the budget of the constituent entity of the Russian Federation under the control of the Ministry of Finance, or the local budget under the control of the body executing the budget of the constituent entity;
• 3) other measures.

The Russian government can carry out external loans that are not included in the program, if this leads to a reduction in the cost of servicing external debt. It includes loan agreements entered into in previous years.

The maximum volume of external public debt, the limits of Russia's external borrowing for the next financial year are approved by the federal law on the federal budget for the corresponding year.

The maximum amount of government external borrowing should not exceed the annual volume of payments for servicing and repaying the external debt of the Russian Federation. The government may exceed the amount of external borrowing if this leads to a reduction in the cost of servicing external debt.

The size and structure of Russia's external debt is reflected in the RF external borrowing program and government loans provided by Russia. This program is part of the documents submitted at the same time as the budget for the next fiscal year. It provides a list of external borrowings for the next financial year, indicating the purpose, sources, repayment terms, and the amount of borrowings. The program reflects all loans and guarantees, the value of which exceeds $ 10 million for the entire term of the loan. It is approved by the Federal Assembly of the Russian Federation.

1. Public debt - basic concepts

1.1 Public debt concept

The excess of public debt over GDP by more than 2.5 times is considered dangerous for the stability of the national economy, primarily for stable money circulation.

State debt- This is the amount of government debt on not yet repaid internal and external loans. This includes the debt itself plus the interest accrued on it.

Public debt is the sum of outstanding and outstanding government loans (including accrued interest). It should be noted that the concept of public debt is given by different theorists differently. At the same time, in the end, in order to fully understand the concept of public debt in relation to a specific country, one should first of all look for an official interpretation of this concept in various regulatory legal acts.

Moreover, in any definition, the central executive authorities are always present. The public debt is determined by the amount of the federal budget deficit prevailing by a given date, minus the surplus (surplus) of this budget. In addition, debt obligations of Russia to:

§ individuals and legal entities

§ foreign states

§ international organizations and other subjects of international law, including obligations under state guarantees provided by the Russian Federation.

Public debt is subdivided into:

§ External public debt- is an integral part of government debt on foreign loans and other debt obligations to non-resident creditors. The presence of external debt of the country is a normal international practice. However, there are boundaries beyond which an increase in public external debt becomes dangerous.

§ Domestic public debt- is an integral part of government debt on domestic loans and other debt obligations to resident creditors. Domestic debt is no exception in the economy, but rather the rule. Economically developed countries, as a rule, have significant public domestic debt. However, there is a significant difference in the reasons, methods of formation and the peculiarities of the functioning of this type of debt.

When it comes to public debt, the following terminology is used:

§ Capital debt- this is the amount of debt obligations issued and outstanding by the government and the obligations of other persons guaranteed by it, including the accrued interest on these obligations.

§ Main debt- this is the nominal value of all government debt and guaranteed loans.

In accordance with the Budget Code, the main debt is included in the volume of the state internal debt of Russia, that is, the nominal amount of debt on government securities of the Russian Federation, on loans, loans and credits received from budgets of other levels, on state guarantees provided by Russia. Likewise, the external debt includes liabilities under government guarantees provided by the Russian Federation, and the amount of the principal debt on loans from foreign governments, credit institutions, firms and international financial organizations. If there is a delay in the payment of interest on the principal amount of the public debt, then the government's debt does not increase by the amount of unpaid interest.

1.2 Causes of Public Debt

Public debt is caused by the use of government loans as one of the forms of attracting monetary resources to expand reproduction and meet social needs. The reason for the emergence and growth of public debt is the constant state budget deficit. At the same time, the presence of public debt is not an exception in the economy, but rather a rule: economic developed countries have significant domestic debt. However, there is a significant difference in the reasons, methods of formation and the peculiarities of the functioning of this type of debt, depending on the country.

In developed countries, public debt and the budget deficits that caused it are factors in the stabilization of the economy and its development built into the economic cycle. Loans taken from the population, corporations, banks, other financial and credit institutions are used productively and are considered as assets of the listed borrowers. Public debt is viewed as a “loan of the nation to itself” and does not affect the overall size of the aggregate wealth of the nation.

In connection with the above, it is impossible to say unequivocally that the emergence of public debt is associated exclusively with the deterioration of the economic situation in the country, moreover, by competently disposing of the possibility of attracting borrowed funds (and, as a consequence, increasing the public debt), it is possible not only to improve the economic situation in the country and to solve acute social problems. problems, but also just use it as a source of funding in accordance with the principles of competent financial management with great benefit for your country.

1.3 Forms of public debt

§ Credit agreements and agreements concluded on behalf of the Russian Federation as a borrower with credit institutions, foreign states and international financial organizations;

§ State loans made by issuing securities on behalf of the Russian Federation;

§ Agreements and agreements for the RF to receive budget loans and budget loans from the budgets of other levels of the budget system of Russia;

§ Agreement on the provision of state guarantees to the Russian Federation;

§ Agreements and agreements, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of Russia's debt obligations of previous years.

Servicing the public debt is associated with the redistribution of income in the country. To pay off the debt, you can use the assets of the state, privatizing state property. Another approach is associated with increasing budget revenues by expanding the tax base. The burden of service is shifted to the taxpayers. Another source of debt repayment can be loans from the Central Bank.

However, in the conditions of the country's main bank independent of the government, it is very difficult to use emission to reduce debt. Serving the external debt actually means the legal export of capital, which is reflected in a separate line in the balance of payments, that is, it leads to the redistribution of part of the national income through the fiscal and monetary system in the interests of non-residents.

Financing the budget deficit from domestic sources also does not always contribute to the development of the national economy. An increase in domestic debt means an increase in the share of government borrowing in the financial market. This can lead to competition for resources in the domestic financial market, an increase in interest rates and a decrease in the capitalization of the private securities market. In addition, investments are reduced, since investment projects with a profitability not exceeding the interest paid on government securities together with the risk premium will remain unfulfilled.

Public debt is associated with the redistribution of GNP and part of the national wealth for the formation of additional resources of the state through loans of funds from individuals and institutions, as well as through loans from foreign states. Structurally, government debt includes:

§ financial debt- monetary obligations of the state in connection with the loan of credit funds

§ administrative debt- arrears in payments (for example, arrears in payment of wages).

Sometimes government debt may also include government debt with sureties (for example, financial guarantees to facilitate export-import activities).

The origin of credit funds allows us to consider them as the internal and external debt of the state. The state's creditors are:

§ banking system

§ non-banking sector (e.g. social insurance system)

§ foreign state and private organizations.

Public debt comes in two main forms:

§ Government securitiesliquid, anonymous, can freely circulate on the secondary market

§ Debts formalized in the form of an entry in the accounts, cannot be assigned or sold. In this form, as a rule, an insignificant part of the public debt is drawn up.

1.4 Types of public debt

The RF Law "On the State Internal Debt of the Russian Federation", adopted in 1992, consolidated the division of the state debt into internal and external, carried out according to the currency criterion. Thus, at present, borrowings are divided into internal and external in accordance with the currency of the arising liabilities, ruble-denominated debts refer to internal debt, and foreign currency - to external.

Legally fixed tautological definitions "domestic debt = ruble debt" and "external debt = foreign currency debt" are firmly rooted in government finance statistics. The division, which is senseless in itself, is justified only by the existing differences in the mechanisms of regulation and control over ruble and foreign currency borrowing.

"Domestic debt = ruble debt"

"External debt = foreign exchange debt"

It may seem that the problem of dividing public debt into internal and external is scholastic and far from reality. However, in the course of analyzing the situation in this area, one has to face very big difficulties in data processing, since there is no uniform methodology for all types of borrowings. The accounting of government debt liabilities is carried out depending on the history of their occurrence, the creditor, the form and a dozen more often random factors. Moreover, the key (ideological) is the currency of the obligation.

There are real curiosities, for example, liabilities on bonds of a domestic foreign currency loan are not taken into account at all as part of the state debt. Practical difficulties also arise in determining the amount of real budgetary expenditures for servicing the public debt due to the balancing of individual indicators.

1.5 Public debt as a tool for regulating the economy

The main purpose of public debt is to be an instrument for regulating the economy. This function is achieved by solving two problems:

§ fiscal- to receive funds for the needs of the state;

§ regulatory- to use these funds to stabilize the economy and stimulate its growth.

The stabilizing effect on the economy is carried out by changing either:

§ the volume of government debt,

§ its structure, which allows you to influence the main macroeconomic indicators.

If the main government liabilities are concentrated in the non-banking sector, then the government's influence on the level of consumption, savings and investment will be more predictable: during an economic downturn, the government will mobilize the accumulation of funds through loans, with the help of which government measures will stimulate the conjuncture. During the period of recovery and recovery, the state places its loans in the private sector by reducing the level of consumption and savings.

If lending to the state is carried out at the expense of the banking system, then the impact of the state debt on the economic situation is more complicated, since changes in consumption, savings and investments are carried out indirectly, through the banking system.

The impact of government debt on economic growth always rests on the purpose of government measures financed with government loans. So, the practice of state regulation in the 70-80s. indicates that the positive impact of deficit financing on employment is associated with cyclical unemployment. In the context of structural unemployment, which has recently been typical for many developed countries, the stimulating budgetary policy of the state leads to stagflation.

Thus, the public debt is associated with state regulation of the economy, with the need to mitigate the contradiction between the economic and social needs of society and the possibility of meeting them at the expense of budgetary funds.

Public debt depends on the state of the economy. Therefore, it is very important to have a zero purpose of state credit resources: what needs are public funds spent on - to meet the economic and social needs of society or to increase the administrative costs of the state, to ensure structural changes in social production or to enrich certain groups of the population.

In the second case, public debt is not a means of state regulation of the economy, but reflects crisis processes in the economy and therefore requires active stabilization measures of the state.

The main benefit for the state, justifying the usefulness of the public debt, is the ability to attract borrowed monetary resources to the budget and at the same time maintain the relative amount of debt - as a percentage of GDP (for a certain period of time, for the economic cycle).

The size of the budget balance and the volume of real gross domestic product are two of the most important factors determining the dynamics of debt. A budget deficit leads to an increase in the volume of public debt, a budget surplus allows you to pay off the debt.

Economic growth ensures the replenishment of the revenue side of the budget, at the expense of which the interest on the debt is paid. It also allows you to increase the money supply in circulation without increasing inflation, and due to the growth of the money supply, conditions for debt refinancing are created. Depending on the ratio of these two factors, two approaches are conventionally distinguished to determine the role of public debt in a market economy.

The classic approachto determine the role of public debt in the economy is the use of government loans as a substitute (substitute) for tax revenues. This approach is associated with the attitude to public debt as an instrument of stabilizing macroeconomic policy.

In the phase of downturn in business activity, budget revenues decrease. The government is interested in maintaining the level of expenditures, so the question arises of compensating for the decrease in the revenue side of the budget. With a decrease in business activity of economic entities, an increase in tax rates enhances negative trends in the economy, therefore, it is advisable to compensate for the decrease in the budget revenues at the expense of government loans. National debt becomes a substitute for tax revenues.

Public debt can successfully fulfill the role of a macroeconomic stabilizer only if economic growth is sustained. The phase of sustainable economic growth consists of alternating periods of increase and decrease in business activity of economic entities. In a period of downturn in business activity, it is advisable to reduce the level of taxes and compensate for the decline in the revenue side with borrowed monetary resources.

The concept " decline in business activity”Means a short-term reduction in the rate of economic development, but the growth of real GDP should exceed 1% per year. If the growth rate of real GDP is less than 1%, then this means that there is an economic recession (it is accompanied by bankruptcy of large companies, deterioration of the banking system, increased unemployment, and a decrease in consumption).

During an economic downturn, it is advisable to reduce the size of the public debt, since in this case the public debt has a significant negative impact on both public finances and the economy as a whole.

The classical approach to defining the role of public debt in the economy is to use it as a tax substitute and is that the volume of government loans is increased in the phase of declining business activity. In the phase of increasing business activity, the volume of loans is reduced. In the phase of economic recession and in the period preceding the economic recession, the volume of loans is minimized or repaid ahead of schedule public debt.

The classical approach provides the government with the opportunity not to change the level of taxation, or even slightly reduce it in the phase of declining business activity, but at the same time maintain the level of government spending. This is the advantage of the classical approach.

This approach has its own rationale. This paradoxical scheme has a number of advantages over the classical one.

§ First, the alternative approach, all other things being equal, allows attracting a larger amount of monetary resources to the budget during the economic cycle.

§ Secondly, during its implementation, a lower amplitude of fluctuations in the relative volume of debt during the economic cycle is observed. The maximum value of the relative size of debt for the period of the economic cycle is less.

§ Third, the decision on the optimal size of government loans is made on the basis of data on the rates of economic development: the economy has entered a phase of increased business activity - they increased loans, there was a recession in business activity - they reduced loans, an economic downturn began - they minimized loans. The risk of erroneous planning of the budget balance in this case is significantly lower.

Within the framework of this approach, public debt plays the role of a financial mechanism that accelerates economic development. Public debt can only be useful during a period of sustainable economic growth. In the phase of economic recession, the budget deficit significantly worsens the state of public finances, increases the risk of a debt crisis and thus leads to a deterioration in the general state of the economy. For China, national debt is a financial mechanism to accelerate economic development. For Russia, the state debt remains an economic problem and does not bring any benefits to the state economy.

Two approaches (classical and alternative) are based on different meanings, invested in the concept of "balance" of the budget. In the European Community, the budget is recognized as balanced if two constraints are met - on the size of the deficit (3% of GDP) and on the amount of debt (60% of GDP). Economic growth is impossible without an increase in energy consumption, which means that it is necessary to build new power plants, pull oil pipelines, build ports, roads and other infrastructure. The issues of supporting economic growth are not easy in themselves, they have to be solved in the context of international competition for resources, for the terms of international trade.

2. Domestic public debt

2.1 The concept of domestic public debt

Domestic public debt is a component of public debt for domestic loans and other debt obligations to resident creditors.

Domestic debt is no exception in the economy, but rather the rule. Economically developed countries, as a rule, have significant public domestic debt. However, there is a significant difference in the reasons, methods of formation and the peculiarities of the functioning of this type of debt. Public debt and the deficits that caused it can be carefully thought out and planned factors in the stabilization of the economy and its development.

Domestic public debt is viewed as “ loan the nation to itself"And does not affect the overall size of the aggregate wealth of the nation. Certain negative consequences for its management are offset by positive effects from the mobilization of additional financial resources in investment or development of the country's economy. However, there are a number of negative consequences of the presence of domestic public debt:

§ debt repayment is carried out at the expense of budget funds, i.e. at the expense of taxpayers: in this way, income flows to the holders of government securities, as a rule, to the wealthy strata of society;

§ to reduce debt, the government can increase taxes, which can lead to macroeconomic consequences, such as reduced investment.

§ the effect of "crowding out investments" of private entrepreneurs is in effect, i.e. the state's entry into the loan market intensifies competition in the money market, which in turn leads to an increase in interest rates on money capital. This deprives the private sector of some part of investments and, accordingly, "hinders" the economic development of the country.

The main creditors of domestic debt are usually:

§ population;

§ corporations;

§ banks;

§ other financial and credit institutions.

Domestic debt obligations can be roughly broken down into:

§ market, existing in the form of equity securities

§ non-market, arising as a result of the execution of the federal budget and issued to finance the resulting debt.

If the issue and circulation of the former are sufficiently regulated and are included in the program of internal borrowing for the next financial year, then the latter are issued irregularly despite the adoption of the relevant legislative acts.

TO market instrumentscan be attributed:

§ government short-term bonds (GKO)

§ variable and constant coupon federal loan bonds (OFZ)

§ government savings bonds (OGSZ)

§ bonds of internal foreign currency loan ("web")

To non-market instrumentscan be attributed:

§ bills of the Ministry of Finance

§ debt to the Central Bank, etc.

The number of types of government domestic debt increased by one and a half times in 1997 alone, mainly due to non-market instruments. In 1996, domestic financing of the federal budget deficit was carried out mainly through the issue of GKOs. In order to increase the terms of borrowing and reduce interest rates, federal loan bonds (OFZ) were introduced in June 1995.

The technology of placement, circulation and redemption of these securities completely coincides with the technology of issuing GKOs, therefore, the disadvantage inherent in accounting for the costs of servicing the latter fully applies to this type of securities. The corresponding budget line reflects only the balanced financial results:

proceeds from placement of GKOs - redemption of GKOs + proceeds from placement of OFZs - redemption of OFZs - servicing of OFZs

Ignoring the economic essence of the ongoing processes leads to a significant distortion of budget indicators.

2.2 Problems and contradictions

Let us dwell on the main contradictions and problems that the system of government borrowing is facing today. We should start with the specifics associated with the current state of the domestic public debt.

§ The budget deficit leads to an accelerated growth of the state domestic debt: during 1996 - two times (from 190 trillion to 380 trillion rubles), during 1997 - 1.8 times (up to 690 trillion rubles. ). If such growth rates are maintained by 2000, the volume of public domestic debt will be comparable to the value of GDP.

§ All current budgetary underfunding, which takes on surrogate forms, is written off to the public debt. These are debts to agricultural enterprises, organizations carrying out northern delivery, reissued into treasury bills, a bond loan to pay off commodity obligations and debts to the Central Bank of the Russian Federation, the Pension Fund, etc. of the total volume of domestic debt.

§ The Central Bank and the RF Ministry of Finance have concentrated their efforts on a narrow “bond” segment of the financial market. Debt management was reduced to planning the volumes and circulation period of the next issue of GKO-OFZ

§ There is no medium- and long-term planning, including in the preparation of the draft federal budget, the composition and volume of public debt, as well as schedules for its repayment. Without such a forecast, at least for a two to three year period, it is impossible to carry out a prospective analysis of the situation.

§ The Russian government securities market will become civilized only with an increase in the number of instruments and the share of long-term securities (with maturities of 5-30 years), which will not happen earlier than in two or three years. Management of government liabilities at the first stage requires ensuring a uniform approach to the reflection in the budget of transactions with government debt obligations

§ The concepts of internal and external debt are gradually merging. This process is accelerated by using such a form of borrowing as the issuance of securities, including those denominated in foreign currencies. On the one hand, there is a massive inflow of non-resident funds into the GKO-OFZ market (an instrument of domestic borrowing), on the other hand, there is a confusion of concepts - “domestic foreign currency debt” existing in the form of “webs”.

With the admission of non-residents to the GKO-OFZ market, the main aggregates of the balance of payments of the Russian Federation changed, in particular, according to the Central Bank of the Russian Federation, the current account balance decreased in 1996 by $ 7 billion compared to the previous year. Today, the Central Bank is actually forced to assume the functions of a guarantor, which are not characteristic of it, for transactions of non-residents with GKOs.

Such additional risks do not contribute to the solution of the main task assigned to the CBR - maintaining the stability of the Russian monetary system. The accession of the Russian Federation to Article 8 of the IMF Charter and the transition to the convertibility of the ruble on current transactions will accelerate the process of "merging" of the two types of public debt. With the issue of Eurobonds and their placement among both non-residents and residents, the task of maneuvering ruble and foreign exchange liabilities takes on a completely different character.

Consider the main problems associated with the current state of public external debt:

§ Fundamentally different legal and economic approaches are practiced with respect to the external debt of the former USSR assumed by the Russian Federation, and the newly emerging debt of the Russian Federation. If the legal regime of the former is set by the specifics of the concluded international treaties, then the use of special economic approaches and the procedure for reflecting the latter in budget reporting is hardly justified.

§ A serious problem related to the debt of the former USSR stems from the role that Vnesheconombank has historically played in settlements with foreign creditors. As shown by inspections carried out by the Accounts Chamber of the Russian Federation, Vnesheconombank was an agent of the government of the Russian Federation for servicing external debt and managing debt assets of the former USSR and an agent of the government for servicing the internal foreign currency loan of the Russian Federation during 1992-1996. still operates outside the legal framework and copes with the functions assigned to it extremely mediocre. Vnesheconombank's status can be brought into line with the complexity and significance of the tasks it solves only by amending federal legislation

§ The government's operations on the placement of Eurobonds, as well as the mechanisms for admitting non-residents to the foreign borrowing market (GKO-OFZ) implemented by the Central Bank of the Russian Federation, have not yet received a proper economic and legal assessment. The impact of these credit flows on the balance of payments of Russia remains unexplored.

It should be noted that information about the measures taken by the government and its agents to resolve issues related to Russian foreign debts and assets is unreasonably closed and is practically inaccessible even for the auditors of the Accounts Chamber of the Russian Federation. This makes financial monitoring extremely difficult, complicates control over such transactions, and stimulates abuse.

public domestic debt

2.3 The structure and dynamics of the domestic public debt of the Russian Federation

The structure of the current domestic debt of the Russian Federation consists of:

§ State zero-coupon short-term bonds (GKO);

§ Federal loan bonds with a variable coupon (OFZ-PK), with a constant coupon yield (OFZ-PD), with a fixed coupon (OFZ-FK) and with debt amortization (OFZ-AD).

Government zero-coupon short-term bonds(T-bills) have been issued since May 1993 on behalf of the Government by the Ministry of Finance. The Central Bank of Russia acts as the guarantor of the functioning of GKOs, which ensures the placement, saving and redemption of bonds. Their buyers can be not only legal entities, but also individuals. The issue of T-bills is carried out in the form of separate issues for a period of 3, 6, 9 and 12 months. Bonds exist only as an entry in accounts.

Federal loan bonds(OFZ) - medium-term coupon bonds. There are various variations of these securities. OFZs with variable coupons were issued on June 14, 1996 in accordance with the General Conditions for the Issue and Circulation of Federal Loan Bonds, approved by the RF Government Resolution No. 458 dated May 15, 1995. Their issuer is the Ministry of Finance of Russia. The issue of OFZ with a variable coupon is carried out in the form of separate issues, the terms of each issue are approved by the RF Ministry of Finance separately.

Consider the situation on the government bond market in 2005. Announcement of the upgrade of the ratings of the Russian Federation on foreign currency and ruble borrowings by Standard & Poor s dated January 31, 2005, caused a surge in demand not only in the market for foreign exchange bonds of the Russian Federation, but also in the market for ruble-denominated securities, which made it possible to increase the borrowing of the federal budget in the domestic market. Other factors in February were also favorable for the ruble bond market: the ruble appreciated in nominal terms by 41 kopecks, the level of ruble liquidity remained high, and prices rose on the Russian currency bond market.

From February 2 to February 16, 2005, six auctions were held for the placement and additional placement of ruble bonds, the total volume of attraction at which amounted to 23.4 billion rubles at par.

1.2 Forms and types of public debt

There are several classifications of the State Dane, depending on the attribute underlying this classification.

Depending on the borrower, public debt is subdivided into:

· The state debt of the Russian Federation;

· Public debt of the constituent entity of the Russian Federation;

· Municipal debt.

The state debt of the Russian Federation is understood as its debt obligations to individuals and legal entities, foreign states, international organizations and other subjects of international law. The state debt of the Russian Federation is fully and unconditionally secured by all federal property that makes up the state treasury.

The state debt of a constituent entity of the Russian Federation is understood as the totality of its debt obligations; it is fully and unconditionally secured with all property owned by the subject that makes up his treasury. Municipal debt, respectively, is understood as the totality of debt obligations of the municipality; it is fully and unconditionally provided with all the property that makes up the municipal treasury. Moreover, each budget level is responsible only for its obligations and is not responsible for the debts of other levels, if they were not guaranteed to them. To pay off their obligations and service the debt, the legislative and executive bodies of the appropriate level use all their powers. According to the Budget Code of the Russian Federation, depending on the currency of the arising obligations, there are:

· Internal debt;

· External debt;

Domestic public debt is understood as liabilities denominated in the currency of the Russian Federation. Foreign currency, conventional monetary units and precious metals can only be indicated as an appropriate clause. They must be paid in Russian currency.

External public debt refers to liabilities arising in foreign currency.

Depending on the maturity and the volume of obligations, there are:

· Capital government debt;

· Current government debt;

Capital public debt is understood as the total amount of issued and outstanding government debt obligations, including accrued interest on these obligations.

The current public debt is understood as the cost of paying income to creditors on all debt obligations of the state and on the repayment of obligations that are due.

Debt obligations of the Russian Federation may exist in the form of:

· Credit agreements and contracts concluded on behalf of the Russian Federation, as a borrower, with credit institutions, foreign states and international financial organizations;

· Government loans made by issuing securities on behalf of the Russian Federation;

· Contracts and agreements on the receipt by the Russian Federation of budget loans from the budgets of other levels of the budget system of the Russian Federation;

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

· Agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of the debt obligations of the Russian Federation of previous years.

Debt obligations of the Russian Federation can be short-term (up to one year), medium-term (from one year to five years) and long-term (from five to 30 years). Debt obligations are repaid within the terms, which are determined by the specific terms of the loan. For debt obligations of the Russian Federation and its constituent entities, maturities cannot exceed 30 years, and for obligations of municipalities - 10 years. Debt obligations of the constituent entities of the Russian Federation and municipalities may exist in such forms, with the exception of international agreements and treaties at the level of the municipal formation. All of these forms are used quite actively in market practice.

1.3 Management

The process of government debt management is a set of actions related to preparation for the issue and placement of government debt, regulation of the government securities market, servicing and repayment of government debt, provision of loans and guarantees.

Public debt management is carried out through the following methods:

· Refinancing - repayment of part of the state debt for newly attracted funds;

· Conversion - change in the yield of the loan;

· Consolidation - the transformation of part of the existing debt into a new one with a longer maturity. Most often, the use of this technique is associated with the desire of the state to eliminate the danger that could threaten the monetary system in the event of massive claims for debt repayment;

· Novation - agreements between the borrower state and creditors to replace circumstances within the same loan agreement;

· Unification - the decision of the state to combine several previously issued loans;

· Deferral - consolidation with the simultaneous refusal of the state to pay income on loans;

· Default - refusal of the state to pay the state debt.

Public debt management is based on the following principles:

· Unconditional - ensuring accurate and timely fulfillment of government obligations to investors and creditors without setting additional conditions;

· Uniformity of accounting - accounting in the process of public debt management of all types of securities issued by federal authorities, authorities of the subjects of the federation and local governments;

· The unity of the debt policy - ensuring a unified approach in the policy of public debt management on the part of the federal center in relation to the subjects of the federation and municipalities;

· Consistency - ensuring the maximum possible harmonization of the interests of creditors and the borrowing state;

· Risk mitigation performance of all necessary actions to reduce both the lender's and the investor's risks;

· Optimality - the creation of such a structure of government loans so that the fulfillment of obligations on them is associated with minimal risk, and also has the least negative impact on the country's economy;

· Publicity - providing reliable, timely and complete information about the parameters of loans to all users interested in it.

The concept and content of public debt management can be defined in a rather multidimensional way. Its management can be viewed both in a broad and in a narrow sense. Public debt management in a broad sense is understood as the formation of one of the directions of the state's economic policy related to its activities as a borrower. This process includes:

· Formation of public debt policy;

· Determination of the main directions and goals of influence on micro- and macroeconomic indicators;

· Establishing the possibility and feasibility of financing from the public debt of national programs and other issues related to the strategic management of public debt;

· Setting the boundaries of debt.

Debt management in the narrow sense is understood as a set of activities related to the issuance and placement of government debt, servicing, repayment and refinancing of government debt, as well as regulation of the government securities market.

The process of managing the public debt, both in the broad and in the narrow sense, requires a systematic approach from the state and determines the multifaceted nature of the regulation of the existing debt. In turn, systemic debt management is impossible without a clear classification of debt. In the process of managing public debt, the state determines the relationship between various types of debt activities, the structure of types of debt activities in terms of timing and profitability, the mechanism for constructing specific government loans, loans and guarantees, the procedure for granting and repaying government loans and guarantees and the fulfillment of financial obligations under them, the procedure for issuing and circulating government loans. Also, all other necessary practical aspects of the functioning of the public debt are established. The concept of public debt management includes three interrelated areas of activity. The first is budgetary policy in terms of planning the volume and structure of the public debt. The second is the implementation of borrowings, the conduct of operations with the state debt, which are aimed at optimizing its structure and reducing the cost of servicing it. The third is the organization of accounting for debt obligations and debt transactions, the functioning of the payment system for the fulfillment of debt obligations.

Thus, the state debt of the Russian Federation is understood as its debt obligations to individuals and legal entities, foreign states, international organizations and other subjects of international law. The grounds for education, the forms and types of public debt are defined in the Budget Code of the Russian Federation. Public debt management is carried out using basic public debt management techniques and is based on certain principles.

Chapter 2. Management of the state domestic debt of the Russian Federation.

5.00 / 5, 1 vote.

The relevance of the research topic is determined by the fact that the state as a subject of economic relations to cover its expenses attracts not only budget revenues, but also additional financial resources formed on a borrowed basis. A unique way of obtaining them is a state loan, which expresses the relationship between state and numerous individuals and legal entities regarding the formation of an additional monetary fund (along with the budget) in the hands of the state. In this case, the state is the borrower of funds, and the population, enterprises and organizations are the lenders. Public debt is an inevitable product of a budget deficit, the reasons for which are associated with a decline in production, an increase in marginal costs, unsecured emission of money, an increase in the cost of financing the military-industrial complex, an increase in the volume of the shadow economy, non-production costs, losses, theft, etc.

The object of research is public debt as a financial category.

Research objectives:

- analysis of the socio-economic nature of public debt;

- analysis of public debt as a consequence of public debt;

- consider the mechanism and methods of public debt;

- assessment of the state debt policy of modern Russia, analysis of the characteristics and development trends.

The methodological basis of the research is the use of system-analytical, structural-logical, dialectical research methods.

The theoretical basis of the research is the work of such authors as Androsova L.D., Babich E.P., Braicheva T.V., Golovachev D.L., Drobozin L.A., Medvedev Zh.A., Okunev L.P., Reznikov S.S., Romanovsky V.M., Fisher S., Usov V.V. and etc.

1.1. The concept and forms of public debt

The Budget Code of the Russian Federation (Article 89) defines the state borrowings of the Russian Federation as loans attracted from individuals and legal entities, foreign states, international financial organizations, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans by other borrowers.

The functioning of public credit leads to the formation of public debt.

As a result of borrowing activities, public debt is formed - debt obligations of the Government government of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law (Budget Code, Art. 97). Accordingly, distinguish between state and national debt.

National debt is a broader concept and includes the debt not only of the Government of the Russian Federation, but also of the governing bodies of the lower levels of the state.

The state debt of Russia is secured by all the property that makes up the state treasury.

Debt obligations of the Russian Federation can exist in the following forms (Budget Code, Article 98).

1) credit agreements and contracts concluded on behalf of the Russian Federation with credit institutions, foreign states and international financial organizations, in favor of these creditors;

2) government securities issued on behalf of the Russian Federation;

3) agreements on the provision of state guarantees of the Russian Federation, contracts of surety of the Russian Federation to ensure the fulfillment of obligations by third parties;

4) re-registration of debt obligations of third parties into the state debt of the Russian Federation on the basis of the adopted federal laws;

5) agreements and contracts, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of the Russian Federation of previous years.

The Budget Code of the Russian Federation (Article 98) specifically stipulates that changing the conditions of a state loan issued into circulation, including the timing of payment and the amount of interest payments, the circulation period, is not allowed.

Capital public debt represents the total amount of issued and outstanding debt obligations of the government, including the accrued interest that must be paid on these obligations. Current public debt is the cost of paying income to creditors on all debt obligations of the state and on the repayment of obligations, the due date of which has already arrived.

The state, making extensive use of its opportunities to attract additional financial resources in order to timely finance budget expenditures, is gradually accumulating debts, both domestic and foreign creditors. This leads to an increase in public debt - internal and external.

Public debt is a characteristic of the effectiveness of all committed government credit transactions. Its absolute value, dynamics and rate of change reflect the state of the country's economy and finances, the efficiency of the functioning of state structures. The state of public debt is significantly influenced by annual operations in the field of public credit: obtaining new loans and the conditions for their provision, on the one hand, and the amount of repayment and interest paid, on the other.

In the system of credit relations, state credit appears in the following forms: state loans; turning part of the population's deposits into government loans; borrowing funds from the state loan fund; treasury loans; guaranteed loans.

State loans are characterized by the fact that temporarily free funds of individuals and legal entities are attracted to finance public needs by issuing government securities: bonds, treasury bonds, etc. term to get back the amount of debt and interest. By selling a bond, the state undertakes to return the amount of the debt within a certain period of time with interest or pay the creditors income during the entire period of using the borrowed funds, and upon the expiration of the term, return the amount of the debt.

Government internal loans are classified according to several criteria. By the right of issue, they are divided into those issued by a) the central government; b) republican governments; c) local authorities.

The practice of issuing government loans by the central government has become widespread. The arrears of republican and local governments are generally negligible.

On the basis of holders of securities, loans can be divided into those sold only among the population (for example, the State internal winning loan of 1982), among legal entities (the state internal 5% loan of 1990) and universal, i.e. intended for placement among individuals and legal entities.

Depending on the form of payment of income, there are: a) interest-bearing loans; b) winning loans; c) interest-winning loans; d) win-win loans; e) interest-free (targeted) loans.

Holders of interest-bearing debt obligations receive a solid income annually by paying coupons or once upon repayment of the loan by accruing interest to the face value of the securities (without annual payments). Examples of interest-bearing debt are government treasuries and 1990 5% bonds. On winning loans, bondholders receive all income in the form of winnings at maturity. Income is paid not for all bonds, but only for those that are in the circulation of winnings. An example of a winning loan is the 1982 Government Loan. The terms of issue of interest-winning loans provide for the payment of a part of the income on coupons, and the other part in the form of prizes. Win-win loan issues ensure that during the life of the loan, the winnings fall on each bond. Currently, interest-winning and win-win loans are not issued in our country.

Interest-free (targeted) loans do not provide for the payment of income to the bondholders, but guarantee the receipt of the corresponding product, the demand for which has not yet been fully satisfied. An example of an interest-free government credit operation is the 1990 government target loan. Local authorities can carry out targeted loans for the construction of roads, implementation of work on environmental protection, financing of other activities in which the population of the administrative-territorial unit is interested.

By maturity, loans are divided into: a) short-term loans - maturity up to 1 year; b) medium-term loans - maturity up to 5 years; c) long-term loans - maturity over 5 years.

According to the method of placement, loans are subdivided into: a) voluntary loans; b) loans placed by subscription; c) compulsory loans.

Each method of placement of loans has its own way of implementation. Voluntary loan bonds are freely traded and bought by banking institutions. Forced loans are being extended to lenders by virtue of a government decree stipulating strict liability for evading bond purchases. Loans placed among the population by subscription with payment by installments are formally voluntary. However, their implementation is accompanied by a mass-political campaign that makes them essentially obligatory. This is possible in a totalitarian regime. Currently, only voluntary loans operate in our country.

Government loans can be bonded and non-bonded. Bond loans are accompanied by the issue of government securities. Bonded loans are formalized by signing agreements, contracts, as well as through entries in debt books and the issuance of special certificates. Currently, non-bond loans are used at the intergovernmental level.

Closely related to government loans is the second form of government credit, the functioning of which is mediated by the system of savings institutions (banks, cash desks, etc.) and is an important channel for the formation of financial resources of the state - the circulation of part of the population's deposits into government loans. Unlike the first form of state credit, when individuals and legal entities buy securities at the expense of their own temporarily free funds, savings institutions provide loans to the state at the expense of borrowed funds. The presence of an intermediary between the state and the population in the person of savings institutions and the provision of a loan by the latter to the state at the expense of borrowed funds without the knowledge of their real owner (the population) makes it possible to single out these relations as a special form of state credit. This form of lending is carried out through the purchase of special securities (for example, treasury savings certificates) or market securities (bonds, treasury bonds), as well as the registration of non-bond loans. Bonded loans are essentially perpetual. They are formalized by the state not by issuing securities, but by directly recording the amounts on the accounts of the relevant institutions and in the public debt book. The terms of repayment of such loans are not stipulated in advance, but the state reserves the right to redeem the loan and undertakes to pay interest for the entire period of its validity. Obviously, interest on deposits held in savings institutions cannot be lower than the official inflation rate. For greater activation of the savings business, the accrued interest must exceed this level in order to ensure that the depositor receives at least a minimum income. In our country, this is now achieved on the basis of the purchase by Sberbank of state debt obligations.

Borrowing funds from the state loan fund, as a form of state credit, is characterized by the fact that state credit institutions directly (without mediating these operations by purchasing government securities) transfer part of the credit resources to cover government expenses. This form of government credit functions in a totalitarian society. It contributes to the development of inflationary processes, which is especially dangerous in conditions of strict control over the emission of banknotes by democratically elected bodies. Therefore, the complete normalization of relations between the state and the credit system lies in the way of recognizing the impossibility of direct borrowing of loan funds to cover the budget deficit.

Treasury loans express the relationship of providing financial assistance to enterprises and organizations by public authorities and administration at the expense of budgetary funds on terms of repayment, urgency and payment. Currently, this form is not actively used in our country. However, with a radical reform of property relations, accompanied by denationalization and privatization of economic structures, the state cannot be held responsible for the financial results of the activities of enterprises and organizations instead of their legitimate owners. But if necessary, state bodies can provide financial assistance to economic entities, in whose stable work they are interested, but on terms of repayment, urgency, and payment.

Relations on the line of treasury loans are not analogous to bank lending, since, unlike self-supporting banking structures, state authorities and administrations provide financial assistance on different terms, for other reasons and for other purposes. Treasury loans are issued on preferential terms in terms of terms and rate of interest, they are possible in case of financial difficulties of enterprises and economic organizations in view of their special position in the market, do not have a commercial purpose, but are a means of supporting economic structures that are vital for the national economy.

The use of treasury loans does not mean that gratuitous budget financing in relation to state-owned self-supporting enterprises has completely outlived its usefulness. It retains the right to exist, but as an exceptional measure in order to provide financial assistance to economic agencies that find themselves in a difficult situation due to the peculiarities of the sale of products produced in the interests of society, unfavorable economic conditions, crisis phenomena in the economy, etc.

For guaranteed loans, the government is actually financially liable only in the event of the payer's insolvency. In our country, conditions have been created for the revival of guaranteed loans in connection with the granting of local authorities, as well as individual economic structures, the right to conduct operations to conclude loans.

1.2 Reasons for public debt

One of the most important issues in public finance is the problem of budget deficits and public debt. The budget deficit and the amount of public debt are a thermometer of the state of the economy, therefore, this problem is traditionally given a lot of influence, both on the part of economists and the entire population.

The budget deficit is the amount by which budget expenditures exceed its revenues in a given year. The budget deficit reflects certain changes in the process of national reproduction, fixes the results of these changes.

In economic theory, structural and cyclical budget deficits are distinguished. The structural deficit is the difference between federal revenues and expenditures under a specific fiscal policy (current taxation and government operating costs) and a constant unemployment rate (baseline unemployment rate of 6%). If the unemployment rate begins to exceed the baseline (when the economic system enters a state of recession), the real budget deficit becomes larger than the level of the structural budget deficit. This is partly due to a reduction in tax revenues. The difference between the actually observed budget deficits and the structural deficits has been called cyclical deficits.

Changes in structural and cyclical deficits depend on the state of the economy. So, in the nature of economic recovery after an economic downturn, it is accompanied by a cyclical deficit. At the same time, a structural deficit can grow if taxes, for example, remain at the same level, and government spending increases (in particular, due to an increase in defense spending or various social programs).

There can be many reasons for the budget deficit, for example: the decline in social production; the growth of the marginal costs of social production; mass production of "empty" money; unnecessarily, unnecessarily inflated social programs; increased costs of financing the military-industrial complex; turnover of "shadow" capital on a huge scale; a possible reason for the budget deficit is huge non-productive expenditures, registration, theft, loss of manufactured products and much more, which is not yet amenable to public accounting.

The sources of covering the budget deficit are well known.

In economies with a fixed amount of money in circulation, the government has only two traditional ways to cover the budget deficit - government loans and increased taxation. For economies with a variable amount of money, there is a third way - printing money.

Undoubtedly, the budget deficit belongs to the so-called "negative" economic categories such as inflation, crisis, unemployment, bankruptcy, but they are integral elements of the economic system. Moreover, without them, the economic system loses its ability to self-propel and progressive development. It should be noted that a deficit-free budget does not at all mean the health of the economy. It is necessary to clearly understand what processes are taking place within the financial system itself, what changes in the reproduction cycle reflects the budget deficit.

The growing budget deficit in the economy leads to the emergence and growth of public debt.

Public debt is the sum of the budget deficits accumulated in the country for a certain period, minus the positive budget balance existing during the same period. Distinguish between external and internal government debt.

External public debt, i.e. debt to foreign states, organizations and individuals bears the greatest burden on the country, since the country must give some valuable goods, provide certain services in order to pay interest and pay off the debt. It must also be remembered that the lender usually sets certain conditions, after the fulfillment of which the loan is granted.

Internal debt of the state, i.e. debt to its population, leads, first of all, to the redistribution of income within the country. Leakage of goods and services usually does not occur, but certain changes occur in economic life, the consequences of which can be very significant.

The budget deficit and government debt are closely related. First, government loans are the most important source of covering the budget deficit. Secondly, how dangerous this or that size of the budget deficit is is impossible without analyzing the amount of public debt. On the other hand, it is also necessary to study the growth of the budget deficit in order to assess the size of public debt.

There are many different opinions regarding budget deficits and public debt. Keynesians, for example, ventured to state that an increase in government spending leading to a budget deficit during a period of decline in production could lead to economic stabilization. But even now, many economists consider the growth of government deficits and debt unacceptable under any conditions.

A budget surplus is the excess of the federal government's revenues over its overall spending. An increase in revenues increases budget surplus and narrows budget deficits. Thus, fiscal surpluses and deficits depend not only on government spending and taxation policies, but also on the level of activity in the economy. Both government spending and income taxes have not only a direct impact on budget surplus, but also an indirect impact, affecting output and income.

, (1)

where BS is the budgetary surplus;

t is the tax rate;

Y - output (production, income);

G - government procurement;

TR - transfer payments.

From this formula, we see that an increase in government spending reduces the fiscal surplus by the amount of spending, but it often compensates for this reduction with tax increases that result from an increase in revenues caused by an increase in aggregate demand.

While it is likely that an increase in the tax rate that keeps government spending constant could increase the fiscal surplus, it is possible that the end result will be much less than originally projected because an increase in the tax rate tends to lower income levels.

A budget surplus assuming full employment is the kind of budget surplus that can occur if the economy is at full employment. This is an important concept and a better method of managing fiscal policy than a method of simply accounting for budget surpluses and deficits at any level of economic activity. Fiscal surplus assuming full employment provides a means of assessing policy that is independent of the specific state of the business cycle. Using this approach, policymakers can estimate the level of surplus or deficit caused by full-time fiscal policy. The formula for the budget surplus assuming full employment is as follows:

, (2)

where BS *- This is a budget surplus in conditions of full employment;

Y *- full-time income;

The difference between actual fiscal surplus and fiscal surplus at full employment is tax. The difference indicates the presence of an economic downturn. If production is below full employment, the budget surplus at full employment will exceed the actual surplus (it is also possible that a budget deficit will occur at production volumes below the full employment level).

A quantitative assessment of the budget deficit is objectively complicated by the following factors:

1. Usually, when assessing the amount of government spending, depreciation in the public sector of the economy is not taken into account, which leads to an objective overestimation of the size of the budget deficit and public debt.

2. An important item of government spending is debt service; payment of interest on it and the gradual repayment of the principal amount of the debt (debt amortization).

The overestimation of the budget deficit is associated with the overestimation of government spending through inflationary interest payments on debt. Situations are possible when the nominal (official) government budget deficit and nominal debt grow, while the real deficit and debt decrease, which makes it difficult to assess the effectiveness of the government's budget-oriented policy. Therefore, when the budget deficit changes, an inflation adjustment is required.

3. When assessing the state budget deficit at the macro level, as a rule, the state of local budgets, which may have surpluses, is not taken into account.

4. Along with the measured (official) state budget deficit both in industrial and transitional economies, incl. and in Russia, there is a hidden deficit due to the quasi-fiscal (quasi-budgetary) activities of the Central Bank, as well as state enterprises and commercial banks.

The latent budget deficit underestimates the actual budget deficit and public debt, which is often done on purpose (for example, before elections), as well as in the framework of the government's "hard" policy towards an annually balanced budget.

Thus, the absolute size of the budget deficit and public debt cannot serve as reliable macroeconomic indicators, especially since the debt usually increases with the growth of GNP. Therefore, it is advisable to use relative debt indicators.

2 Analysis of the state of the state debt of the Russian Federation

2.1 External debt of the Russian Federation

As it was clarified in the previous chapter of the course work, public debt as an economic category is a system of monetary relations arising from the involvement of the state on a voluntary basis for the use of temporarily free funds of citizens and business entities.

An analysis of the dynamics of Russia's external debt can begin with an analysis of the debt of the Soviet Union, because most of today's Russian external liabilities belong to this period. The USSR's debt to the Paris Club of creditors at the end of 1991 was $ 37.6 billion. In January 1992, the Russian government entered into a framework agreement to revise the schedule for servicing and repaying this debt. Further in 1993-1995. three revisions followed (multilateral memorandums of April 2, 1993, June 4, 1994, and June 3, 1995) related to debt servicing in the period from December 1991 to the end of 1995. Russia's external debt, which at the beginning 1992, 57 billion dollars, reached 96.6 billion dollars at the beginning of 1993 and equaled the entire annual GNP of the country.

After completing negotiations with the Paris Club in 1994, Russia assumed the entire debt of the USSR in exchange for foreign assets. The Paris Club is a non-institutionalized association of creditor countries (Australia, Austria, Belgium, Great Britain, Germany, Denmark, Ireland, Spain, Italy, Canada, Netherlands, Norway, Russia, USA, Finland, France, Switzerland, Sweden, Japan), created in 1956 to discuss and resolve the debt problems of developing countries on government or government-guaranteed loans. Russia has been a member of the Paris Club since 1997.

At the same time, Russia has virtually lost the ability to repay a significant portion of its debts from most countries. According to previous agreements, the greatest burden of paying off Soviet debts fell on the period after 2002, and then this, apparently, seemed a distant prospect. Following these agreements, in April 1996, the RF Government signed a memorandum (multilateral memorandum of April 29, 1996) on the terms of a comprehensive restructuring of the USSR's external debt with the member countries of the Paris Club of creditors. Russia owes the Club $ 38 billion.

By the end of 1993, Russia's obligations amounted to more than $ 110 billion, an increase over the previous year by $ 15 billion (primarily due to the attraction of loans from international financial organizations). The reasons for the rapid growth of debt were the deficit of the state budget and a noticeable deterioration in the price conditions of foreign trade, together with a decrease in exports. Despite this, in 1993 the ratio of external debt to GNP dropped to 65%.

Over the years of reforms, due to a reduction in the taxable base due to a decline in production, low domestic demand, the departure of business to the shadow economy, and massive tax evasion, state tax revenues have sharply decreased. Most of the 1990s. the revenue side of the budget was falling, and government expenditures were not cut enough to establish budgetary equilibrium.

According to official data, at the beginning of 1994, the country's total external debt was $ 112.8 billion. The debt of the former USSR, due to the capitalization of unpaid interest, increased to $ 104 billion (92.2% of the total external debt), and the newly formed Russian debt accounted for $ 8.8 billion

Then, in 1994-1997, debt grew at a slower pace (by 1996 it had reached $ 121 billion), while the ratio of debt to GNP and exports was gradually decreasing (from 55% in 1994 to 30% of GNP in 1996). ., from 260% of the country's exports in 1994 to 190% in 1996).

According to the official data of the Russian Ministry of Finance, as of December 31, 1997, Russia's external debt amounted to $ 123.5 billion, of which $ 91.4 billion are debts inherited from the Soviet Union. However, in 1998 large-scale borrowings were again made. By July 1, 1998, the external debt had grown to $ 129 billion (the increase in debt was associated, first of all, with attempts to prevent a default on the domestic debt). In the second half of 1998, a part of the internal debt was converted into external - the volume of debt at the end of 1998 was already $ 143.9 billion, and in 1999 it reached its historical peak - $ 167 billion (more than 101% of GDP in rubles).

The source of repayment of state loans and payment of interest on them are budget funds, where these expenses are annually allocated in a separate line. However, in the face of a growing budget deficit, the state may resort to refinancing the state debt, i.e. repay old government debt by issuing new loans.

The Russian practice of dividing debt into external and internal is carried out in accordance with the loan currency and differs from the international one. Kazakhstan, Belarus and Ukraine have taken a position on this issue that corresponds to international practice.

A consequence of the policy pursued to finance the budget deficit was a reduction in the share of domestic debt in Kazakhstan and Russia and an increase in Belarus. State external borrowing of Kazakhstan is limited by the limit of external debt, which is set at the level of no more than 50% of the net gold and foreign exchange assets of the National Bank, except for cases of attracting program loans from international financial organizations. The borrowing limit of the local executive body for a year should not exceed 10% of the local budget revenues for that year. The debt limit of the local executive body should not exceed 25% of the local budget revenues for the corresponding financial year. The volume of expenses for the repayment and servicing of the debt of the local executive body should not exceed 10% of the revenues of the local budget for the corresponding year.

In Russia, the size of the federal budget deficit, approved by the law on the federal budget, cannot exceed the total volume of budget investments and expenditures for servicing the state debt in the corresponding financial year. The size of the budget deficit of a constituent entity of the Russian Federation cannot exceed 15% of its budget revenues, excluding financial assistance from the federal budget.

Since 2000, thanks to the policy of servicing external liabilities without making new borrowings, there has been a gradual (up to $ 10 billion a year) reduction in Russia's external debt. In recent years, there has also been a trend towards a reduction in the total debt in relation to the country's GDP.

At the end of 2002, the total public debt in relation to GDP was 36.1%, and in relation to exports, 142%, which indicates its manageability. The risk factor can be attributed to the fact that more than 80% of the debt is denominated in foreign currency, which means that it is exposed to the risk of changes in the exchange rate, but at present the situation is stable: the ruble is strengthening, there is a large influx of foreign currency into the country.

According to the data of the Bank of Russia as of January 1, 2003, the amount of the RF external debt reached 152.1 billion dollars. More than 36% of this amount were the debts of the former USSR. In addition, about $ 8 billion was the unsettled debt of the former USSR.

Exactly eight years after the 1998 financial crisis, in the period from 15 to 21 August 2006, the Russian Federation made payments to repay the balance of the restructured in 1996 and 1999. as part of the Paris Club of Debt Creditors. As a result, Russian obligations to all 17 member states of the Club in the amount of USD 21.6 billion have been fully repaid and Russia is no longer a debtor country of the Club. The intergovernmental agreements, which formalized the said debt, are no longer valid. This means that Russia has achieved the goal set by the Government of the Russian Federation and first formulated in the "Debt Strategy of the Russian Federation for 2003-2005." ...

As part of this strategy, the Russian Federation, first in January 2005, fully repaid the balance of its obligations to the IMF ahead of schedule, and then began negotiations on early repayment of the largest, politically significant and difficult to manage category of public external debt - the debt to the Paris Club of creditors.

The repayment of debt obligations restructured within the Paris Club was carried out in two stages. In accordance with the Multilateral Agreement dated May 13, 2005, in July - August 2005, the debt in the total amount equivalent to USD 15 billion was repaid ahead of schedule. Exactly one year later, on the basis of the agreements made in the Multilateral Protocol of June 15, 2006, the balance of this category of debt was paid off.

The total savings of federal budget funds on interest payments for the period up to 2020 will exceed USD 12.0 billion.

In 2007-2009. a positive balance of borrowings in the domestic market is planned, which does not lead to an increase in interest rates. As a result, by the end of 2007, the volume of domestic debt exceeded the volume of external liabilities, and the total volume of public debt decreased from 9% of GDP at the end of 2006 to 8.3% of GDP at the end of 2007. It is planned to reduce it to 7.5% by the end of 2009, while in 2008 the volume of internal debt will exceed the amount of external liabilities.

The upper limit of the state external debt of the Russian Federation as of January 1, 2008 was envisaged in the draft law in the amount of 46.7 billion US dollars, or 36.3 billion euros, which is 32.5 billion US dollars (by 41%), or 28.1 billion euros (43.6%), less than the figure approved by the Federal Law "On the Federal Budget for 2006" as of January 1, 2007, corresponding to 79.2 billion US dollars, or 64.4 billion. Euro. Compared to the expected estimate of 2006 (50.5 billion US dollars), the external debt in 2007 decreased by 3.8 billion US dollars, or 7.5%.

In ruble terms, the external debt as of January 1, 2008 amounted to 1,233.1 billion. rubles, or 4% of GDP.

In the structure of external debt due to early repayment of debt to the Paris Club member countries, the share of market instruments will increase by 22.35 percentage points compared to 2006 and will amount to 70.2%.

The dynamics of the external debt of the Russian Federation is presented in Table 1.

On the basis of Table 1, draw a conclusion that for the period from April 1, 2008 to April 1, 2009, the value of external debt decreased from $ 44.1 billion to $ 39.5 billion, that is, by 10.43%. This was due to an increase in world prices for strategic raw materials in the first half of 2008, when the volume of external debt decreased at a more significant rate (the amount of debt decreased from $ 44.1 billion as of April 1, 2008 to $ 40.4 billion by October 1, 2008). The end of 2008 was characterized by a significant drop in oil and gas prices, as a result, the state budget had significantly less opportunities in terms of repaying external debt, the rate of repayment slowed down (from $ 40.4 billion as of October 1, 2008 to $ 40.6 billion). dollars as of January 1, 2009, to 39.5 billion dollars as of April 1, 2009).

In the structure of external debt, the largest share belongs to liabilities on Eurobond loans, the share of which was 63.95% as of April 1, 2008, 68.78% as of July 1, 2008, 68.56% as of October 1, 2008, 68, 23% as of January 1, 2009, 68.35% as of April 1, 2009. The increase in the share of these loans occurs against the background of a decrease in the state debt of the Russian Federation, which led to an overall decrease in this type of borrowing in absolute terms for the last reporting year amounted to $ 1.2 billion.

Table 1 - The structure of the state external debt of the Russian Federation

	01.04.08		01.07.08		01.10.08		01.01.09		01.04.09		Deviation
	billion dollars		billion dollars		billion dollars		billion dollars		billion dollars		(+,-)		specific weight,%
State external debt of the Russian Federation, including the obligations of the former USSR, assumed by the Russian Federation	44,1				40,4		40,6		39,5			89,57
Amounts owed to official Paris Club creditors not subject to restructuring		3,63		3,66		3,47		3,45		3,29		81,25	0,34
Debts to non-Paris Club official creditors		4,99		4,88		4,95		4,68		4,81		86,36	0,18
Debts to official creditors - former CMEA countries		3,40		3,66		3,71		3,45		3,54		93,33	0,14
		1,59		1,71		1,98		2,96		3,04		171,43	1,45
Debts to international financial institutions		10,88		11,46		11,39		11,33		10,89		89,58	0,00
Debt on Eurobond loans	28,2	63,95	28,2	68,78	27,7	68,56	27,7	68,23		68,35		95,74	4,41
Debt on government bonds		10,20		4,39		4,46		4,43		4,56		40,00	5,65
Provision of guarantees of the Russian Federation in foreign currency		1,36		1,46		1,49		1,48		1,52		100,00	0,16

2.2 Domestic debt of the Russian Federation

Internal public debt - financial obligations of the state arising in connection with the attraction of funds for the implementation of government programs and orders from non-governmental organizations and the population of the country.

In the Russian Federation, it includes debt obligations of the Government of the Russian Federation, denominated in the currency of the Russian Federation, to legal entities and individuals, unless otherwise provided by legislative acts, is secured by all assets at the disposal of the Government of the Russian Federation. Domestic debt covers debts of previous years, newly arisen debts and debt obligations of the former USSR in the part assumed by the Russian Federation.

It can take the form of loans, government loans, carried out through the issue of securities, and other debt obligations guaranteed by the Government of the Russian Federation.

Types of government debt instruments

Debt obligations differ in terms of: short-term (up to 1 year), medium-term (from 1 year to 5 years) and long-term (from 5 to 30 years).

The main government debt liabilities secured by the RF Government include:

- government short-term bonds of GKO;

- government long-term bonds;

- bonds of the state savings loan;

- bonds of the internal state foreign currency loan;

- Treasury bills and obligations: gold certificates of the RF Ministry of Finance. The federal law "On the restoration and protection of savings of citizens of the Russian Federation" devalued after a year deposits of citizens are recognized as the internal debt of the state.

In 2007, the policy in the field of public debt of the Russian Federation is aimed at reducing public debt as a percentage of GDP, reducing the absolute and relative (in percent of GDP) size of public external debt, policies to implement additional sterilization of the surplus money supply in order to reduce inflation.

The volume of the state debt of the Russian Federation (in ruble terms) by the end of 2007 amounted to 2,596.3 billion rubles, or 8.3% of GDP, and will increase by 153.6 billion rubles compared to the end of 2006. In the medium term, due to the growth of domestic debt, it was predicted that the state debt would rise to 2,926.76 billion rubles, or 7.6% of GDP, by the end of 2009.

In 2007, the state domestic debt exceeded the state foreign debt, the share of domestic debt in the total volume of state debt by the end of 2007 will amount to 52.5%.

The Accounts Chamber considers it possible to clarify the federal budget expenditures for servicing the state external debt by adjusting the average level of interest rates (LIBOR and EURIBOR) used in calculations when determining the costs of servicing loans from international financial organizations (IFIs) and foreign governments, in the draft federal budget for 2007.

In 2007, interest payments on loans received by the Russian Federation from foreign governments were reduced by more than 10 times compared to 2006 due to the early repayment of the Russian Federation's debt to the countries - members of the Paris Club of creditors.

The inclusion of two new projects “Development of the State Statistics System - 2” (US $ 10 million) and “Development of Microfinance Market Infrastructure in the Russian Federation” (US $ 50 million) into the Program of State External Borrowings for 2007 required additional justification.

In 2007, the volume of borrowings in the domestic financial market increased, the internal debt, expressed in securities, by the end of 2007 will amount to 1,244.7 billion rubles and increased by 212.6 billion rubles compared to the beginning of 2007. At the same time, the Program of State Internal Borrowings of the Russian Federation in terms of raising funds on the government securities market is not being implemented in full (2004 - 68%, 2005 - 79%).

The aggregate external debt of the Russian Federation as of April 1, 2006 amounted (according to the Bank of Russia) 274.7 billion US dollars (27.6% of GDP), including the external debt of the private sector amounted to 120.4 billion US dollars, which exceeds 1.6 times the volume of public external debt, determined by the Ministry of Finance of Russia on the same date (75.2 billion US dollars).

The upper limit of the state internal debt of the Russian Federation (hereinafter referred to as domestic debt) as of January 1, 2008 was set at 1,363.26 billion rubles, or 4.37% of GDP, which is 214.6 billion rubles, or by 18.6%, higher than the figure approved by the Federal Law “On the Federal Budget for 2006” as of January 1, 2007 (1,148.7 billion rubles, or 4.2% of GDP). Compared to the expected estimate in 2006, the volume of domestic debt in 2007 increased by 271.9 billion rubles, or 24.9%.

The volume of domestic debt, expressed in securities, as of January 1, 2007 will amount to 1,032.1 billion rubles (or 94.5% of the volume of domestic debt) and will increase in 2007 by 212.6 billion rubles, or 20.59 %, and will reach 1 244.7 billion rubles at the beginning of 2008. The increase in the volume of public domestic debt while maintaining a surplus of the federal budget is due to the provision contained in the Main Directions of Debt Policy on the advisability of maintaining the state's presence in the national financial market as a borrower in order to maintain the state's ability to borrow on acceptable terms in any financial, economic and political situation in the world , refinancing of government internal and external debt obligations to finance costs, maintaining the pension system. In this regard, in 2007, the volume of attraction in the domestic market through the placement of government securities increased by 55.4 billion rubles as compared to 2006.

As of May 12, 2009, the value of the internal debt of the Russian Federation amounted to 1,370,371.469 million rubles. The structure of the domestic debt of the Russian Federation is shown in Figure 1.

Figure 1 - Structure of government domestic debt, expressed in government securities as of May 12, 2009

The domestic debt of the Russian Federation, expressed in government securities (OFZ-GSO), as of November 1, 2008 amounted to 1 trillion 386.450 billion rubles and increased compared to October 1 by 7.950 billion rubles, the Russian Ministry of Finance said.

The size of the state internal debt of Russia as of October 1, 2008 amounted to 1 trillion 378.500 billion rubles. As of January 1, 2008, the internal debt of the Russian Federation amounted to 1 trillion 248.848 billion rubles. Thus, the domestic debt of the Russian Federation, expressed in government securities, increased from the beginning of 2008 to November 1 by 137.602 billion rubles.

The debt of the Russian Federation, expressed in federal loan bonds with debt amortization (OFZ-AD), as of November 1 amounted to 882.026 billion rubles, in OFZs with a constant coupon yield (OFZ-PD) - 328.181 billion rubles, in OFZs with a fixed coupon (OFZ-FK ) - 33.828 billion rubles, in government savings bonds with a fixed interest rate of coupon yield (GSO-FPS) - 132,000 billion rubles and in GSO with a constant interest rate of coupon yield (GSO-PPP) - 10.415 billion rubles.

Figure 2 - Structure of government domestic debt, expressed in government securities as of May 12, 2009

According to the Ministry of Finance, the growth of the domestic public debt in October was mainly due to the placement of the GSO-FPS for 8 billion rubles. In addition, OFZ-PD in the amount of 0.253 billion rubles were placed and OFZ-AD in the amount of 0.303 billion rubles were redeemed.

As of November 1, the largest share in the structure of domestic government debt in securities belonged to OFZ-AD (63.6176%). The share of OFZ-PD was estimated at 23.6706%, OFZ-FK - 2.4399%, GSO-FPS - 9.5207% and GSO-PPP - 0.7512%.

Thus, there is a decrease in external borrowings of the Russian Federation, against the background of an increase in domestic debts.

3 Public Debt Management to Strengthen the State's Financial System

3.1 Principles of public debt management

Public debt management is one of the directions of the financial policy of the state, associated with ensuring its activities as a borrower, lender and guarantor. This is a set of government actions related to servicing and repaying government debt, issuing and placing new loans, maintaining the secondary debt market, and regulating the government loan market. This activity is regulated and carried out by the Ministry of Finance of the Russian Federation and the Central Bank of the Russian Federation, which determine the total volume of the budget deficit, the volume and nature of loans required to finance it, develop a credit policy and its institutional support.

State credit management is aimed at achieving economic, social and political goals, which are determined by trends in social progress and the current state of the country's economy. Among the main economic goals - ensuring economic stabilization and growth of production, maintaining its competitiveness in the world market; social goals imply ensuring social stability and social progress; political goals are formulated on the basis of the idea of ​​maintaining the stability of the functioning of the political system and ensuring national security. Achieving these goals is to a large extent related to the management of public debt, especially external debt, the state of which, as world practice shows, largely determines not only the country's economic independence, but also the preservation of its national sovereignty, which is especially important for modern Russia.

State debt policy of the Russian Federation for 2007-2009 provides for a decrease in the volume of public external debt and its gradual replacement with domestic borrowings.

The principles of the state debt policy of the Russian Federation are:

- replacement of the state external debt with domestic borrowings;

- development of the government securities market;

- use of government guarantees to accelerate economic growth;

- application of instruments of debt policy in order to implement additional sterilization of surplus money supply and fight inflation.

Accordingly, the tasks to be solved by the public debt management system in Russia in transition are determined and ranked:

a) minimization of the cost of debt for the borrower;

b) effective use of borrowed funds, creation of an appropriate accounting and control system;

c) strengthening the investment nature of loans;

d) regulation of the volume of debt obligations of the state and maintenance of their rate;

e) raising funds on the most favorable terms for the issuer;

f) determining the priorities of the state's credit policy, ensuring the timely repayment of loans provided.

In the system of actions for managing public credit, the most important is the servicing and repayment of public debt, since all costs of this kind are carried out at the expense of budget funds, creating an additional burden for it, and late payments lead to an increase in the amount of debt due to penalties. Only in the case of investment loans, servicing and repayment of obligations are carried out at the expense of the income from the project.

Servicing the public debt involves, firstly, the implementation of operations for the placement of debt obligations, secondly, the payment of income on them and, thirdly, the repayment of the debt in full or in part according to the plan or making contributions to the repayment fund. Debt repayment involves the full repayment of the principal and interest on it, as well as fines and other payments associated with the late repayment of the debt.

The main methods of public debt management include:

refinancing - repayment of old government debt by issuing new loans;


conversion - a change in the amount of profitability of a loan, for example, a decrease or increase in the interest rate of income paid by the state to its creditors;


consolidation - extension of the term of already issued loans;


unification - combining several loans into one;


5) deferral of loan repayment - carried out in conditions when further active development of operations to issue new loans is ineffective for the state;


debt cancellation - government refusal from debt obligations;


debt restructuring - repayment of debt obligations with the simultaneous implementation of borrowings (assuming other debt obligations) in the amount of debt obligations to be repaid with the establishment of other conditions for servicing debt obligations and the timing of their repayment,


At the same time, the emphasis in the policy of state borrowing on a steady decrease in external debt (regardless of the real financial condition and development needs) reduces the potential of this most important institution for the development of the national economy, which is especially important in the context of its active integration into the world economic community.


Public debt servicing is carried out by the Bank of Russia and its institutions, unless otherwise provided by the Government of the Russian Federation. The Bank of Russia performs the functions of the general agent for servicing the state debt free of charge. Payment for the services of agents for the placement and servicing of the state debt is carried out at the expense of the federal budget.


From the point of view of the investor, the most acceptable is the timely receipt of income and repayment of the loan, the calculation of the principal amount of the debt and interest on it. However, in the face of significant growth in government debt and budget deficits, the government is forced to resort to various methods of debt management. These methods traditionally include refinancing, consolidation, conversion, loan unification, exchange of bonds according to a regressive ratio, etc.


Refinancing is the repayment of old government debt by issuing new loans.


Conversion is traditionally a change in the profitability of loans (a decrease - in order to reduce the cost of managing public debt or increase profitability for lenders).


Consolidation is a change in the term of already issued loans upwards (usually) or reduction. It involves facilitating the terms of debt repayment in the form of deferred payments and repayment. It is possible to combine consolidation with conversion.


Loan unification is the consolidation of several loans into one, when bonds of previously issued loans are exchanged for bonds of a new loan. The goal is to reduce the number of types of securities circulating at the same time, which simplifies the work and reduces the government's debt service costs. The unification of government loans is usually carried out together with consolidation, but can also be done outside of it.


In some cases, the government can exchange bonds at a regressive ratio, that is, when several previously issued bonds are equated to one new bond, which eliminates the need for the government to carry out settlements on bonds in full money (interest payments and (or) bond redemption) placed earlier in a currency that had depreciated at the time of calculation.


Deferring loan repayment differs from consolidation in that in this case not only the maturity is postponed, but, as a rule, the payment of income stops.


Conversion, consolidation, unification of government loans and exchange of government bonds are usually carried out only in relation to domestic loans. As for the postponement of the repayment of obligations, this measure is also possible in relation to external debt. The deferral of the repayment of an external loan, as a rule, is carried out in agreement with the lenders, and this operation does not necessarily provide for the suspension of the payment of interest on the loan.


Cancellation of the state debt is understood as the complete refusal of the state from obligations on issued loans.


The main task of managing Russia's public debt is to change the debt strategy and move from a policy of deferred payments to a policy of debt reduction. Due to the current circumstances, this applies to the greatest extent to external debt. And here it is advisable to turn to the modern world experience of conversion financial methods for the settlement of external debt, as the most flexible and adequate to the current state and credit opportunities of Russia.


The financial mechanism of the conversion scheme is to eliminate part of the external debt by exchanging it for national assets - national currency, bonds, stocks, goods, financial assets, etc.


3.2. Mechanism and methods of public debt management


Modern concepts of economic theory view the budget deficit and the resulting problem of public debt as a ticking time bomb that will explode early, because over time the possibilities of government spending and increasing tax non-government debt will be exhausted. Then the public debt will be covered by the printing press when issuing money, destroying the economy with hyperinflation.


In addition to economic consequences, public debt also leads to social consequences. One of them is the increasing differentiation of the population.


The differentiation of the population occurs due to the payment of debt at the expense of taxes, which are paid by the entire population. Its income is reduced by the amount of taxes paid. These funds go to a narrow circle of rich people who previously bought securities. As a result, the gap in wealth between segments of the population is widening.


Is it possible to “read this fact serious enough to convey the use of funds from the population to cover the budget deficit and eliminate public debt? If the population's money is used efficiently and they are able to use investments, then this will entail an increase in aggregate demand and, along with it, an increase in living standards, an increase in employment. In this case, the income of the rich will also increase faster than that of the rest of the population, then the current situation can be regarded as more favorable.


The price of a policy of increasing public debt is to shift today's difficulties onto the government that will replace it. Two ways are seen here: either to achieve economic gains that ensure the gradual repayment of the debt, when the deadline for repayment of the debt comes, to issue new loans, at the expense of which to pay off the old debt.


The country's life, burdened with external and internal debts, will require a competent strategy and skillful use of the credit environment, choosing the best option for economic development.


Public debt management includes the following measures: efficient use of borrowing funds; search for funds to pay off debt; neutralization of the negative consequences of public debt.


Many countries have dedicated public debt management services. Their task is to prevent the excess over GDP by more than 2.5 times. It is believed that a large value will not allow the country to solve its problems, and all its efforts will be aimed only at paying off the debt.


External debt is often commensurate with receipts from foreign trade activities, which brings the country the currency it needs to pay for external liabilities. If such payments are 20-30% of foreign trade turnover. Then it becomes difficult to attract new loans and frontiers.


The effective use of borrowing funds involves the direction of them in projects that allow for a given period of income, in excess of not only the amount of debt, but also the payment of a cent on it. The amount of interest becomes the minimum criterion for the effectiveness of the use of borrowed funds. Their profitability must exceed this value. In this case, the state will not only pay interest, but also receive additional income. Failure to comply with the tribute condition creates problems in finding funds from other sources of debt repayment. Delay in debt repayment is fraught with increasing losses associated with an increase in interest rates as a penalty.


Considering the above, the presence of a stable and comprehensive public debt management system aimed at preventing possible debt and financial crises is an important condition for the economic development of the state, ensuring the accurate execution of the federal budget.


Measures for regulating public debt are control over its size, setting maximum debt values, rationalizing its composition and structure, forms and methods of servicing, etc. government debt repayment and service programs. The program must contain standards, in case of violation of which the adoption of new debt obligations is automatically suspended. At the same time, monitoring of the external debt of banks and enterprises should be ensured.


How to pay off public debt obligations if there is a lack of accuracy of income from its placement? The solution to the problem includes several tactical directions: giving up debt or part of it; the use of new borrowings to pay off old debts; prolongation of debt; its conversion; sale of bad debts.


Avoiding debt is considered unreasonable, as it undermines the reputation of the state. Subsequently, it will no longer be able to count on receiving loans. The use of new borrowings to pay off old debts cannot be resorted to endlessly, since the increase in debt reduces the creditor's hopes of getting his money back.


Prolongation of the debt involves the extension of the repayment period in this case, the amount of interest will increase, because the interest is paid on the amount of the loan and the unpaid interest. For the state, it is more beneficial to restructure debt, in which it is transferred to the rank of long-term, which does not lead to an increase in interest payments. Debt conversion is associated with its transformation into long-term foreign investments, when, on account of debt, creditor countries are offered to buy real estate, participate in equity capital, etc. On account of the debt, it is possible to grant the rights to use the marine economic zone and other privileges. The sale of bad debts is possible if a country has given a loan to another state in the past. So, today Russia is trying to sell debts that cannot be returned by its debtors Cuba, Vietnam, India, etc. Such debts are sold at a significant “markdown”. The country selling debt is buying time to raise the funds it needs.


Public debt significantly changes the state of the money spurt. When it increases, an additional offer of money occurs. This happens not only when the state covers the debt at the expense of the printing press or through external borrowing. An increase in domestic debt leads to the spending of banks' reserves and attracting savings from the population, i.e. to the growth of circulating funds. This process turns into a decrease in the purchasing power of the national currency, leading to inflation. Debt repayment, on the contrary, reduces the amount of money in circulation, which gives rise to trends that restrain economic growth. To neutralize such undesirable phenomena, the Central Bank can pursue a policy of expensive money during the period of increasing public debt and a policy of cheap money during its payment. The state can use tax policy for the same purposes: its tightening during the period of increasing debt and easing during the repayment of debt obligations.


In order to avoid all these consequences, it is necessary to constantly work to regulate public debt.


Until recently, new international loans were considered the main source of external debt coverage. Now we do not have such an opportunity and will not have it in the near future.


Public debt is heterogeneous, its constituent elements require specific regulatory mechanisms using various financial instruments. Many components have a high degree of uncertainty and require special analysis to select the most effective solution methods.


The strategic program for reducing excessive public debt should be coordinated with the methods of managing the state budget as a whole, the size of its deficit and the regulation of the general economic situation in the country.


The following methods of regulating public debt come to the fore:


- balancing tax and non-tax revenues of budgetary and issuing activities with the size of public debt, its dynamics, bearing in mind the stabilization and the possibility of reducing public debt, primarily external;


- identification and use of stabilization instruments to manage debt dynamics;


- reduction of internal and external debt;


- the possibility of refinancing government debt;


- measures to restructure public debt and cancel it by creditors;


- reducing the cost of servicing the public debt, taking into account the inflationary depreciation of the principal amount of the debt and the cost of servicing it;


- reduction of government spending;


- the use of foreign exchange sources for the repayment and servicing of external debt;


- control over borrowing at the regional level;


- control over borrowing of business entities.


Despite the positive results achieved in recent years in improving public debt management systems, a number of factors remain that negatively affect the implementation of an effective policy in the field of public borrowing and public debt management, which can be divided into external and internal in relation to the public debt management system. characterizing the effectiveness of the public debt management system itself.


External factors include:


- a high degree of dependence of Russia's solvency on the state of world energy and raw materials markets;


- the lack of sustainable access for Russia to international capital markets on favorable terms;


- shortcomings in the legislative delimitation of the competence of public authorities in the field of public debt management;


- the non-market nature of the main share of the state external debt of the Russian Federation, formed mainly as a result of attracting "tied" loans from foreign governments and international financial organizations;


- the absence of a mechanism for coordinating borrowing and monetary policy for the medium term, including the definition of powers, procedures and methods of interaction, measures of responsibility of the executive authorities and the Bank of Russia, as well as a clear procedure for the exchange of information between them;


- a lack of qualified personnel in the public debt management system and a low level of technical and technological support.


Internal factors:


- lack of a unified mechanism for managing state domestic and state foreign debt;


- the presence of several non-integrated databases on public debt in the Ministry of Finance of Russia, the Bank of Russia and Vnesheconombank;


- undeveloped procedures for long-term planning of borrowings and modeling of the debt situation;

lack of a mechanism for regulation, monitoring and evaluation of sub-federal, regional, municipal and corporate borrowings.


The action of these factors predetermines the vulnerability of Russia's debt position in the event of a deterioration in the global economic environment, the inability of the existing public debt management system to prevent or mitigate crises in the event of an unfavorable situation in the financial sector. Significant fluctuations in the quotations of market debt obligations of the Russian Federation also necessitate reforming the public debt management system in order to revise the principles of its functioning, taking into account world experience and the specifics of the current situation in the country.


Public debt is the result of a budget deficit, the causes of which are associated with a decline in production, an increase in marginal costs, unsecured emission of money, an increase in the cost of financing the military-industrial complex, an increase in the shadow economy, non-production costs, losses, etc.


The reasons for the emergence of the state dane are sufficiently discussed in the first chapter of this work.


Public debt is subdivided into internal and external.


The internal debt of the state is the amount owed to its citizens and enterprises. External debt is a debt to citizens and organizations of foreign states.


The problem of public debt management is considered on the basis of the principles of public debt service in Russia in the framework of the fourth chapter.


Public debt management includes the following measures: efficient use of borrowing funds, search for funds to pay off debt, and neutralization of the negative consequences of public debt.


The problem of Russia's servicing its external debt has been the most acute in recent years from the point of view of both the prospects for achieving growth in the national economy of the Russian Federation and maintaining the country's positions in the world economic system, including the financial one. Non-fulfillment, even partial, by Russia of its obligations to service its external debt will predetermine the preservation of an extremely low level of credit ratings of the Russian Federation, certain regions and enterprises. At the same time, the level of foreign direct investment in the near future will be insignificant, and portfolio investments will be absent altogether. In this context, reaching an agreement on a partial write-off and / or restructuring of the foreign debt of the Russian Federation should be mutually acceptable, leaving certain prospects both for Russia - from the point of view of its ability to service its debt, not only this year, but also in the medium term, and for external lenders - from the point of view of the prospects for the return of issued loans.


In the conditions of the prevailing, extremely favorable for Russia, conjuncture of prices on the world market for energy carriers, exporting enterprises and the federal budget receive additional revenues. However, even with extremely limited government spending, the federal budget will not be enough to make external payments in full. This statement is consistent with the option of maintaining the main priorities of tax policy. An increase in taxation of export operations can significantly improve the state of the budget, and at the same time, the physical volumes of export supplies will not undergo noticeable changes. However, the possibility of radical changes in the taxation of Russian exporters, primarily due to the corresponding lobbying opposition, raises doubts. We especially note the need for a flexible and efficient tax policy with regard to exporters, since in the context of a rapidly changing external pricing environment, an inert tax policy can have the opposite effect (i.e., lead to a drop in both exports and tax revenues).


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Fischer S., Dornbusch R., Schmalenzi R. Economics. M .: Delo, 2003.


V.V. Usov Money. Money turnover. Inflation. –M .: Banks and exchanges, UNITI, 2003


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