Internal public debt

State needs in their majority are financed from the funds that the state receives in the form of mandatory payments and taxes. In a situation where public revenues are sharply reduced, there is a need to cover their expenses from funds received from other sources. Thus, a public debt is formed, which means a set of credit relations between the borrower (state) and creditors (legal or natural persons). In the sphere of state relations, the state can be both a borrower and a lender.

Currently, there are types of public debt of the Russian Federation, both internal and external. It should be noted that in Russia this division has a slightly different approach than in other countries. According to the law of the Russian Federation "On the State Domestic Debt of the Russian Federation", which was adopted in 1992, the division of the state debt into external and internal debt is carried out according to the currency criterion. Consequently, all the borrowings of Russia are divided into external and internal, due to the currency of the emerging obligations. Simply put, domestic public debt is ruble debts, and external - foreign currency debts. In world practice, the internal state debt is defined as the state's debt to its population. Proceeding from the same world practice, forms of state internal debt can be such as loans received by the government , state loans carried out by issuing securities, received budget loans and budget loans, as well as some other debt obligations.

Domestic debt obligations can be conditionally divided into market (existing in the form of equity securities) and non-market ones (formed on the basis of the performance of the federal debt and issued to repay the debt that has arisen).

Internal state debt carries much less danger than domestic public debt. Leaks of services and goods at its repayment do not occur, although at the same time it is practically impossible to do without certain changes in the economic life, which in most cases have very significant consequences. And the higher the domestic public debt, the greater the negative consequences. For example, the payment of interest on debt leads to the fact that income inequality is formed, since the largest part of state obligations is concentrated among the wealthiest part of the population. As a result, the repayment of domestic debt leads to the fact that the money received from the least protected layers of the population goes to the better off. As a result, the one who owns the bonds is even more enriched.

The internal public debt, compared with the external one, is much smaller, so recently there has been a transformation of the latter into the first. External public debt is extinguished from those funds that are borrowed in the domestic market. In this regard, since 2002, the state has begun to increase the amount of domestic public debt. It should be noted that this substitution continues to this day.

The internal state debt is not either only positive, or only the negative side of the economy. Based on the current state of the economy, it is, most likely, a neutral position. To expect that in a few years the need for domestic public debt will disappear, it is hardly worth it, but to try to reduce its volumes to a minimum is a direct duty of the state.