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Reforming the Russian Budget System

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  • Jack Diamond
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    Abstract

    The Russian federal government has recently initiated a fundamental reform of its budget system, encompassing important policy, procedural, and institutional changes. This paper reviews this reform agenda with reference to the experience of industrial countries that over the past two to three decades have followed a similar reform path toward a more devolved budget management system. From this perspective, the importance of the strength of existing public expenditure management systems to accommodate increased devolution and the scope for employing decentralized agencies is explored. An assessment of the present Russian reform plans in light of this review reveals a number of concerns. First, the speed of the reforms contemplated appears overly ambitious when judged by the experience of other countries. Second, the preparedness of budget institutions is questionable. Third, change management capacity needs strengthening with a more carefully defined strategy. Last, in light of these concerns, it is argued that the scope and "big-bang" approach of the current reform plans may need reformulation into a more sequenced strategy with clearer reform priorities.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/104.

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    Length: 25
    Date of creation: 01 May 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/104

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    Related research

    Keywords: Debt management; Budgetary policy; budget management; budget institutions; budget process; performance budgeting; budget system; federal government; decentralization; budget reform; accrual accounting; budget system reform; institutional reform; performance budgeting approach; expenditure management; fiscal transparency; management systems; budget policy; civil service; budget code; service delivery; institutional arrangements; budget classification; budget systems; institutional capacity; budget reforms; civil service reform; external audit; government policy; budget expenditures; public finance; federal ministries; government finance; government institutions; institutional changes; financial management; budgeting methods; budget execution; administrative reform; ministry of finance; organizational structure; managerial autonomy; government finance statistics; resource allocations; performance ? budgeting; public service delivery; budget practices; contingent liabilities; budget review; central ministries; budget period; fiscal discipline; agency model; resource allocation; budget review process; budget administration; budget program format; government expenditures; budget formulation; service levels; budget negotiations; government accounting; accountability mechanisms; managerial staff; budgetary system; internal control; budget planning; central ministry; administrative decentralization; government service; treasury system; institutional reforms; budget office; administrative authority; budget procedure; budget framework; government spending; budgetary performance; budgetary strategies; government management; civil servants; management team; internal audit; medium-term budget; allocation of budget resources; budget resources; budget managers; budget format;

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. Jack Diamond, 2003. "From Program to Performance Budgeting," IMF Working Papers 03/169, International Monetary Fund.
    2. repec:rus:hseeco:130401 is not listed on IDEAS
    3. Oecd, 2001. "Financial Management and Control of Public Agencies," SIGMA Papers, OECD Publishing 32, OECD Publishing.
    4. Jack Diamond, 2003. "Budget System Reform in Transitional Economies : The Experience of Russia," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 39(1), pages 8-23, January.
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