1. Nikolay Begchin, Deputy Director of Budget Methodology Department
Program – Based Instruments for Long – Term Budgeting Development in the Russian Federation
Nikolay Begchin,
Deputy Director of Budget Methodology Department

2. System of Strategic Program-Oriented Planning
Long-term Development Strategy (Concept)
Goal setting
Sectorial strategies
Long-term socioeconomic development forecast
Long-term budget forecast
Conditions
Socioeconomic development forecast for 3 years
Budget for 3 years
State Programs
what?
who
how?
Authorities and tools
External audit
Annual plans and reports

3. The State Program should:
Be a tool for achievement of the public policy goals in a corresponding sphere (sector), i.e. should determine goals, responsibilities (authorities) and tools
Have measurable, specific and verifiable outcome measures (including KPI of institutions and their heads), be used for evaluation of activities of the Government of the RF and federal executive authorities
Envision utilization of all pubic policy implementation tools (regulation, reforms, control and supervision, tax benefits, and not just budget expenditures)
Have realistic mid-term ceilings for budget expenditures that do not require permanent reduction, and should cover all expenditures related to the sector (sphere)
Set requirements to relevant state programs of constituents of the RF and should have coordination frameworks for activities of RF constituents
Be the main planning and reporting document of a responsible executor that has to arrange for and coordinate its implementation using project management methods

4. Inter-sectorial model for state (municipal) program implementation
Department 1
Department 2
Department 3
Program 1
Program 2
Program 3
Program 4
Inter-sectorial model for state (municipal) program implementation
Department 1
(resp. administrator)
...
Department n
Department 2
(resp. administrator)
...
Department n
Department 3
(resp. administrator)
...
Department n
Program 1
Program 1
Program 1

5. Expenditure classification code
The Structure of a State Program and its Disclosure in the Budget Classification
State Program
Sub-program 1
Sub-program 2
FSP
DSP 1 …
Main action 1
DSP m
Main action n
Action 1
Action k
Action l X
Expenditure classification code

6. Disclosure of Main Actions in Budget Documentation
Federal Budget ,
Chapter
Section
Sub-section
Special-purpose items
Type of expenditure
KOSGU
OM (analytics) SE PP
Item of expenditure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 - Х
Federal Budget , option
Chapter
Section
Sub-section
Special-purpose items
Type of expenditure
KOSGU (accounting and reporting) SE PP OM
Item of expenditure 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 - Х

7. Information Interaction
AIS “State Programs”
Structure of the state program
Elements of expenditure classification
Resource support for the state program
Allocation of expenditures on BCC while preparing the budget
Proposals on adjustment of the state program
Budget, summary quarterly breakdown
Approved / specified state program
Cash administration of the budget by expenditures
Annual report  consolidated annual report on state programs
Annual report on execution of the budget
Package sent to the State Duma

8. Insufficient integration of state programs into the budget process#
Problem (shortcoming)
Proposals on resolution (elimination) 1
The main subject of the budget process is a participant of the state program and not the responsible administrator  the role of the responsible administrator in the course of planning budget expenditures, responsibility for their efficiency and quality of the state program management are of formal nature
Delegation of all authorities with respect to allocation of budget appropriations for the state program to its responsible administrator (at present, allocation of appropriations in the Ministry of Finance is done by main federal budget fund administrators) 2
Combination of program and functional classification of budget expenditures  complication of the budget structure, reduction of its transparency and flexibility of appropriations management
Maintenance of the consolidated budget quarterly breakdown only in the program classification while preserving the functional one within the limits of budget commitments and in the reports 3
Lack of possibilities for reallocation of budget appropriations between state program actions in the course of execution of the budget  lower efficiency of managerial decisions
Expanding flexibility during execution of the federal budget – reallocation of appropriations between the state program actions (within the limits of 10% of the total volume) without reducing target indicators 4
Detailed information on planned values of indicators expected outcomes and contents of state program actions is not submitted to the Federal Assembly  formal discussion of qualitative parameters of state programs during consideration of the draft budget
Securing the need to submit to the State Duma draft state programs (amendments to them) at the same time the draft budget is submitted