Financial Journal №2 (42) March-April 2018
A. M. Lavrov, O. K. Yastrebova
Novelties of the Budgetary Process in OECD Countries, p. 9-23
This article is focused on general trends and innovations in budget process in OECD countries over the past decade and considers the possibility and conditions to apply them to the budget system of the Russian Federation. The article also compares the models of classic performance-based budgeting (PBB) with the next generation PBB models, defines general trends in PBB development and typical mistakes of PBB implementation in OECD countries. Taking into account the foreign experience and the accumulated Russian practice, the authors suggest a number of measures to increase the effectiveness of the PBB application in Russian economy. In addition, the authors summarize the experiences of using a Spending Review (SW) by OECD member countries and propose a two-stage approach to implement a SW process as part of the budget process in the Russian Federation. The role, functions and experience of implementation of independent fiscal institutions (IFI) in OECD countries are considered in the article. The question is raised about the feasibility and possible options for the creation of IFI within a separate structure under the aegis of the executive or the legislative authority of the Russian Federation. The authors consider the international experience in fiscal risk management and provide the quantitative probability assessment of fiscal risk realization and fiscal costs caused by them. Moreover, the authors give recommendations for improvement of the fiscal risk management in Russia.
Keywords: budget system, budget process, performance-based budgeting, spending reviews, independent fiscal institutions, fiscal risks, managing fiscal risks
JEL: H61, H68, G32
N. V. Golovanova
Intergovernmental Transfers: Diversity of Terms and Russian Practice, p. 24-35
The terminology used in numerous publications on the theory of intergovernmental transfers differs from one researcher to another. As for papers in Russian, variations in terms is augmented by differences in their translation. The article presents an overview of different approaches to the classification of transfers; special attention is paid to the relationship of the concepts of conditional and specific-purpose grants. The paper reflects the evolution of the definitions of general grants, subsidies and subventions in various editions of the RF Budget Code, assesses the role of intergovernmental transfers in the consolidated budget of the Russian Federation. The final part of the article lists the latest changes in the Russian system of intergovernmental relations, in particular, the transformation of equalization grants into conditional transfers, which significantly reduces the autonomy of sub-national authorities.
Keywords: intergovernmental transfers (grants), specific-purpose (earmarked) grants, conditional grants, matching grants, block grants, general grants, subsidies, subventions
JEL: H70, H71, H77
Y. I. Andreeva, D. G. Bychkov, O. A. Feoktistova
Introducing New Family Support Benefits in Russia: an Estimate of Public Expenditures, p. 36-46
In spite of the improvements in the demographic situation in Russia that have occurred in the 2000s and that have been triggered, among other things, due to the introduction of a number of new family support benefits and increasing amounts of the existing ones, the amount of family support benefits as percent of the GDP in Russia remains lower than it is in most European countries. The efficiency of such benefits as a policy method to increase the birth rate remains questionable as well. The paper presents an attempt to estimate the amount of federal government expenditures that will be required to fund new mean-tested family allowances introduced in Russia in the beginning of 2018 — the monthly allowance upon the birth of a first and/or a second child, and to estimate the effects of these allowances upon the poverty headcount and the income gap in Russia. The authors conclude that a clearer definition of the social policy goal, such as increasing the human capital of the new generation rather than increasing the birth rate, and finer tuning of benefit parameters, which would require harmonization of eligibility criteria for different family support measures and universal applicability of federal family support measures, disregarding the region of family’s residence, could increase the efficiency of these benefits as a poverty prevention tool and provide more universal and transparent social support to families.
Keywords: state social expenditures, social benefits, social transfers and entitlements, support of families with children, policies to support the birth rate
JEL: I38, I39, H53, H75, J13
M. V. Petrov
The World Financial System: a Long Way to Multipolarity, p. 47-58
The article analyzes the current positions of the world’s top 10 economic powers in the world financial system. To assess their weight in global finance, a group of interrelated criteria was used: the size of the domestic financial market, the participation in the international capital flows, the level of internationalization of currencies, the status of international financial centers located in countries and the role of their national banking groups in the world. The article shows that in the period following the 2008 financial crisis, major developing countries (India, Brazil, Russia and Indonesia) for various reasons failed to significantly increase their influence in the financial sphere. For all the above criteria, they are much inferior to the leading developed economies that continue to dominate in the world finance. Only China can compete with them, consistently increasing financial strength and presence in global capital markets. The main factor that does not allow China to finally establish itself as one of the main world financial centers is weak internationalization of the renminbi. The measures planned by Chinese authorities to liberalize capital flows will help to expand the use of the yuan abroad and in further to increase China’s cross-border cash flows. The logical result of these processes will be the formation of a tripolar world financial system, in which the existing poles of power in the face of the USA and the Eurozone will be joined by China.
Keywords: world financial system, multipolarity, international capital movement, internationalization of currencies, international financial center, transnational banks
JEL: E42, F33, F37, G15
O. V. Bogacheva, O. V. Smorodinov
Environmental Risk Management in Financial Sector of G20 Countries, p. 59-72
The article is focused on determination of key development directions of environmental risk management in G20 countries, based on the analysis of its current state. They are: 1) application of new classification of risk factors in environmental risk management; 2) application of new, more precise and efficient instruments and methods of environmental risks’ identification and analysis; 3) formation of publicly available environmental database; 4) integration of instruments, methods, procedures and results of evaluation of environmental risks into enterprise-wide risk management system of financial organization. It was noted in the article that financial institutions also started applying the newest methods and instruments of risk management (such as scenario analysis, stress testing, probability modeling, systems analysis, etc.). The authors claim that one of the keys to financial institutions’ success is an ability to integrate procedures, methods and instruments of environmental risk identification and evaluation results into enterprise-wide risk management system (ERM). The article also conducts a case study of application of the newest methods and instruments of environmental risk management by financial institutions in various G20 countries. The authors draw a conclusion that G20 countries, which are planning a transition to sustainable development, need to increase their efforts in order to put in place environmental risk management systems.
Keywords: analysis and evaluation of environmental risks, enterprise risk management of financial organization, publicly available environmental database, G20 Green Finance Study Group, transitory risks
JEL: Q01, Q51
A. V. Murychev, P. N. Novikov, R. K. Nurmukhametov
Professional Standards of the Activities of the Financial Market Specialists in the Context of the Digital Economy Development, p. 73-83
The article examines the issues of improvement of the professional standards of financial market professionals, caused by demands of the modern technological revolution. The experience of professional standards development is generalized by authors, and attention is drawn to the following difficulties, both theoretical and practical. The article is focused on the structure of the layout of a professional standard and clarification of the terminology. It also shows the main points of the Program of the digital economy of Russia and discloses such a new and popular term as “FinTech”. The authors consider the possibility to separate common (overprofessional) competencies (skills), along with professional ones, in professional standards demanded by the digital economy.
Keywords: professional standard, digital economy, financial technologies (FinTech), digital competence (skills), financial market
А. К. Sembekov, Ye. G. Budeshov
Sectoral Competitiveness of the Insurance Markets of the EAEU Countries: Criteria and Evaluation, p. 84-93
This article examines the issues of assessing the competitiveness of the national insurance markets of the EAEU. It also analyzes the main criteria characterizing the level of competitiveness of the national insurance market in the conditions of the integration union. As a result of the research, the main competitive advantages and weak positions of the national insurance markets are identified in the context of each country, based on the application of the methodology for assessing the competitive advantages of the insurance markets of the EAEU member countries through the «competitiveness polygon». Using economic and mathematical modeling the authors estimate the influence of factors of the industry competitiveness of the insurance markets in the conditions of the integration space of the EAEU. Measures aimed at enhancing competitive advantages in the activities of insurance companies and forming a competitive national insurance market of the Eurasian Union are proposed at the end of the article.
Keywords: competitiveness, competitive advantages, concentration of insurance market, density of insurers, market penetration, insurance market indicators, assets, equity, insurance premiums, Herfindahl-Hirschman index
E. V. Krasova
Professional Intermediaries in the Russian Stock Market: Conditions and Trends of Development, p. 94-105
The article is devoted to the actual issues in development of professional intermediaries in the Russian stock market. The author considers the conditions under which professional intermediaries operate and the trends of their development in recent years. The research methodology is based on the modern theory of securities market and the concept of effective development of stock markets. The article substantiates the role and the place of professional stock market intermediaries in the modern financial system of Russia, shows the dynamics and structure of the number of intermediary companies. It also studies the macroeconomic risks of their development, presents the rating of the leading intermediaries by the volume of transactions in the Russian stock market and analyzes the level of concentration as the most important characteristic of the professional intermediaries’ market.
Keywords: professional intermediaries, professional participants in the stock market, Russian stock market, stock market instruments, financial and industrial groups, banking sector in stock market, concentration of stock market
L. B. Mokhnatkina
Budget Balance and Government Debt As Indicators of Region’s Financial and Budgetary Security, p. 109-119
The article is focused on financial and budgetary aspect of regional economic security. The author considers a concept of budget balance in a broad and narrow sense and determines its quantitative and qualitative characteristics. An approach to the structuring of public debt, which helps to assess the impact of market and non-market debt obligations on the balance of regional budgets, has been implemented. The author critically evaluates approaches to normalization of the budget deficit and public debt implemented in the Russian budget legislation. There is also an analysis of the dynamics of regional budgets’ balance in relation to the dynamics of public debt by the example of indicators of the Russian Federation and Orenburg region. At the end of the article the author draws the conclusions concerning the account of short-term and long-term economic effects on the debt policy of the subject of the Russian Federation and formulates a more reasonable use of the budget balance indicator as an indicator of financial and budgetary security of the regions.
Keywords: balanced budget, indicators, threshold values, financial and budgetary security, budget deficit, debt, public debt, debt policy, revenue and expenditure of budgets
JEL: E62, H61, H62
O. N. Kuznetsova
Optimization of Accounting and Control in Settlements With Accountable Persons at an Enterprise, p. 120-128
The author of the article analyzes methodical and practical aspects of accounting in settlements with accountable persons. Information is based on normative legal acts and results of survey inspections of the Russian enterprises. The author defines the key problems in accounting in settlements with accountable persons and suggests possible ways of their elimination. In addition, the author recommends to introduce regulations and to keep effective control and auditing events within the system of internal organization control. The basis of checks is an identification of unsettled debts of accountable persons and assistance in competent local regulations development in the field of data structure of settlement operations. The author pays special attention to interpretation of innovations in standard and legal regulation of accounting in settlements with accountable persons, whose wrong understanding can lead to claim emergence from taxing authorities. The result of the research is the author’s model of optimization of accounting and control in settlements with accountable persons at an enterprise.
Keywords: accounting, workers’ remunerations, receivables, control, optimization, accountable persons, unsettled debt
JEL: M40, M41
M. P. Afanasiev, N. N. Shash
Consumer’s Choice in the Context of Richard Thaler’s Behavioral Economics, p. 129-131
The review on the R. Thaler’s book “Misbehaving: The Making of Behavioral Economics” in the Russian translation presents the main conceptual ideas of behavioural economy. The architecture of a consumer’s choice in the course of economic decision-making processes of all types is described. The authors draw the conclusion that Thaler’s approach can be applied to macroeconomic and the government activities, especially in the sphere of monetary, budgetary and tax policy.
Keywords: behavioural economics, architecture of consumer’s choice, economic decision, economic behavior
JEL: B31, D12