State debt

The public debt is a sum of the state budget deficit that has been formed on a certain date, minus the surplus (positive balance). In practice, the state debt of Russia is the country's debt to individuals and legal entities, international organizations, other subjects of international law, foreign states, as well as obligations under state guarantees granted to the Russian Federation.

Legislative Budget Code of the Russian Federation establishes that the external public debt is obligations that arose in foreign currency, while the domestic public debt is obligations that appear in the national currency.

To better match existing realities, these concepts can be formulated as follows: the external public debt of the Russian Federation is all attracted loans from foreign sources, for which certain financial obligations of the state appear as a borrower of funds or guarantor of repayment of loans granted to other borrowers. Such external borrowing forms loans to Russia.

Such definitions and terminology are used to determine the internal state debt . Capital - equals the amount of obligations that the state does not have, including interest thereon. The main one implies the nominal value of the country's obligations and borrowings, which it guaranteed.

Under the RF Budget Code, the amount of domestic debt includes the main debt (for securities issued by the state, loans, loans, state guarantees provided by the country). In the external - include obligations on state guarantees, which the country provides, and the amount of principal for all loans provided by foreign governments, firms, international organizations, credit companies.

The public debt will grow if there are delays in paying interest on the principal loan.

Like the public debt of the countries of the world, Russia's national debt can have several forms. It can be in the form of loan agreements concluded on behalf of the Russian Federation with other states, financial international companies, credit organizations; State loans by issuing government securities; Contracts on obtaining budget loans and loans from the lower-level budgets of the RF system; Agreements on prolongation of obligations and their restructuring; Agreements on obtaining loans and credits from lower levels of the budget system.

Servicing the state debt requires a redistribution of the country's income. In order to repay loans, you can use the assets available to the state, as well as give part of the state property to privatization. There is another approach, which provides for an increase in budget revenues through the expansion of the tax base. In this case, the burden is shifted to the population (taxpayers). Another source is loans from the Central Bank.

In fact, servicing foreign debt leads to a redistribution of a certain part of the national income in favor of non-residents.

The country has a system of accounting for state borrowings, which is controlled by the Ministry of Finance.

At the expense of the budget, the activities of the President of the Russian Federation, executive, judicial and legislative power, national defense and state security are financed; Support for individual economic entities operating in the priority sectors of the economy; Financing of state institutions; Financing of international projects conducted in the national interest; For the liquidation of the consequences of natural disasters and emerging emergencies; Financing of elections and other expenses of state authorities of the Russian Federation.