Financial Journal №5(39) September-October 2017
M. I. Kudelich
Problems of Implementation of Investment Budgetary Expenditures
when Providing Sector Support Measures
The article discusses the problems and possible directions for improving the procedure and conditions for the implementation of investment budget expenditures used as sources of financial support for state support measures provided by legislation. They include such expenditures of the Russian Federation budgetary system that mediate the participation of public entities in economic activity as an investor in order to obtain income and (or) achieve other useful effect.
Keywords: measures of state support, budget expenditures, efficiency, public investment, government programs, project approach
K. V. Shvandar, V. Y. Cherkasov, T. F. Burova
Dutch Disease: Applying the Budget Rule and the Role of Structural Reforms
The effect, which was generated by the discovery of gas fields in the Dutch province of Groningen, recurred subsequently often in other resource-rich economies. Following a brief excursion into the theory this article considers the approaches to smoothing the “sharp edges” through accumulation of sovereign wealth funds and application of fiscal rules. Chile demonstrates the example of tough countercyclicality, Norway with its social priorities allows moderate procyclicality in spending of oil revenues. Russia tended more toward the latter of these examples in its efforts to overcome the Groningen effects. However, now when the hard landing of the past years gave a unique chance for the structural transformation it is extremely important not to miss it. On the far horizons the structural policies are of crucial importance. Even Saudi Arabia with all peculiarity of its socio-economic mode came to a clear understanding of the necessity and inevitability of structural reforms.
Keywords: budgetary rule, Dutch disease, stabilization fund, effective exchange rate, fiscal policy
JEL: E62, H60, Q43
V. V. Litvinova, M. A. Nagernyak, M. N. Kirillova
The Atlas of Social Protection Indicators of Resilience and Equity: Opportunities for Interregional Comparisons
Currently regional authorities need to assess the effectiveness of their social support systems, as well as compare themselves with other regions to increase the effectiveness of budget expenditures, including social protection. To accomplish this task the World Bank, the Ministry of Finance of Russia and NIFI are working together to create a Russian version of the ASPIRE database. This database for the first time in the world presents data on regional budgets. It includes provision and financing of social support measures at the subnational level. The creation of this base gives an incentive not only for international, but also for intra-Russian interregional comparisons. Regions can compare their social support systems, choose and use the best practices. The article presents several variants of such interregional analysis based on the Russian version of ASPIRE. There are comparisons of the social support measures structure, analysis of the spending dynamics for social support in the regions for 2013–2016 and the number of recipients of “small measures” support analysis.
Keywords: statistics, social protection, measures of social support, regions, targeting, means test, ASPIRE, World Bank
JEL: I3, H7
N. N. Sisigina
Modern Methods of Financing Hospitals Capital Expenditure
The article deals with modern methods of financing hospitals capital expenditure used in countries with well-developed state guarantees of medical care. On the basis of the analysis of international experience the most common methods have been highlighted, as well as their advantages and disadvantages, possible areas of application. The article also presents recommendations for the development of domestic model of financing capital expenditure for hospitals involved in implementation of the State Guarantees Program.
Keywords: capital expenditure, dual financing system, health care financing, integrated financing system, public-private partnership
E. N. Timushev
Flypaper Effect: Causes and Demonstration in the Budgetary System of Russia
The concept of the flypaper effect — the non-identity of increase in the amount of transfer and the equivalent increase in private income for the budget expenditures — is one of the methodological forms of intergovernmental relations analysis. It helps to assess the nature of the relationship between governmental entities in the sphere of public finance in general. The analysis of the literature on the causes of the phenomenon allowed the author to group them. Application of the causes selected to the peculiarities of the budgetary system of the Russian Federation helped to add such factors of the flypaper effect as the composition of transfers (a significant role of the discretionary balancing grant), the nature of taxation (prevalence of indirect taxes) and features of the allocation of earmarked grants (co-financing towards the end of the year). The explanation of the flypaper effect with the use of lines of supply and demand for public goods is considered as a consequence of the standardization of budget expenditures and limited region tax authorities.
Keywords: flypaper effect, causes of the flypaper effect, expenditure, intergovernmental transfer, tax burden, demand and supply of public goods, elasticity
B. I. Alekhin
Russia’s Financial Structure and Economic Growth
This article is about finance — growth nexus with application to Russia. 57 quarterly observations in 2003-2017 were used to test four popular hypotheses on this subject. The author employed econometric methodology which included vector auto regression (VAR) analysis, stationarity tests, Johansen-Juselius cointegration test, Granger causality test, weak exogeneity tests and variance decomposition. The variables in the our VAR-model are found to be non-stationary and cointegrated. Russia’s economic growth seems to be Granger caused by the proliferation of bank credit to local enterprises and (to a much lesser degree) issuance of shares. In the medium-term prospective the stock market is projected to replace bank finance as a main influence on economic growth.
Keywords: finance, economic growth, cointegration
JEL: O16, G15, G28
N. P. Pilnik, M. F. Shaikhutdinova
Modeling of the Balance of Payments State in Russia
The model proposed in this article allows analyzing and forecasting the dynamics of Russian foreign economic activity on the base of the balance of payments. The model includes several econometric equations of all the main components of the payments balance, which represent the actual values with a high level of accuracy. Despite some problems related to the transformation of raw statistical data due to a variety of changes in reporting standards, that were described in the paper, the constructed model can predict monthly dynamics of the main components of the Russian payments balance in the short term from 12 to 18 months. To demonstrate the model’s performance, the authors employed three different scenarios driven by various combinations of exogenous variables, such as the prices of resources, the growth rates of the Russian main trading partners as well as the country’s current economic policy in basic, optimistic and pessimistic states.
Keywords: foreign economic activity, balance of payments, exports, imports, current account, financial account, gold and foreign exchange reserves
V. Ya. Pishchik, P. V. Alekseev
Actual Formation Issues of the Single Financial Market of the EAEU Member States
The article analyzes the actual issues of formation of the single financial market of EAEU countries. The authors assert, that at present the most important for the solution of this problem is the formation of the economic potential of the Union, primarily through the enhancement of the effectiveness of reproduction process in the member states. This article discusses the factors constraining formation of a single financial market, including the incomplete formation of the single economic space, the unfavorable investment climate, insufficient predictability of the national currencies of EAEU countries. Attention is paid to such important issues of the financial integration as harmonization of legislation, improvement of the investment climate, institutional consolidation.
Keywords: Eurasian economic union, financial integration, single financial market, harmonization of legislation, investment climate, industrial cooperation, monetary policy
A. S. Alisenov
Tax Integration Prospects of the Eurasian Economic Union Member States
The article is focused on the issues of tax integration of the Eurasian Economic Union member states. Relevance of the study is based on the need of further development of the tax integration scientific base within the EAEU. The author defines imperatives, priorities and main orientations of integration development tax policy of the economic union. Basic directions of tax system perfection with the aim of more successful tax integration are also identified. In addition, the author developed a system of urgent measures directed to unification and harmonization of the tax systems of the countries in the integration community.
Keywords: Eurasian Economic Union, tax integration, tax harmonization, unification, tax administration, fiscal policy, tax regulation, tax optimization
JEL: F02, F36
А. М. Maryasin
Certain Aspects of Convertible Bonds and Derivatives Accounting in Accordance with IFRS
The core principles of recognition and measurement of financial assets, liabilities and equity instruments are described within IFRS. The basic criterion is economic sense, but non-legal form of accounting item. Thus, it’s considered to be a starting point for making decision on way of recognition of item as financial asset, liability, or equity instrument. The same approach is for hedge accounting, including derivatives. Some aspects of financial instruments accounting are discussed within this article. Often, convertible bonds and derivatives accounting are quite complex. Due to this, hereinafter some practical procedures and considerations on this topic are discussed by the author. Particularly, fair value calculation examples of convertible bonds debt and equity components are given in the article.
Keywords: IFRS, convertible bonds, derivatives, financial asset, financial liability, effective interest rate, fair value