This presentation was made by Nikolay Begchin, Russian Federation, at the 12th Annual Meeting of OECD-CESEE Senior Budget Officials held in Ljubljana, Slovenia, on 28-29 June 2016

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

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

3. М ]фМ ]ф 3
1. Be a tool for achievement of the public policy goals in a corresponding sphere (sector), i.e.
should determine goals, responsibilities (authorities) and tools
2. 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
3. Envision utilization of all pubic policy implementation tools (regulation, reforms, control and
supervision, tax benefits, and not just budget expenditures)
4. Have realistic mid-term ceilings for budget expenditures that do not require permanent
reduction, and should cover all expenditures related to the sector (sphere)
5. Set requirements to relevant state programs of constituents of the RF and should have
coordination frameworks for activities of RF constituents
6. Be the main planning and reporting document of a responsible executor that has to arrange for
and coordinate its implementation using project management methods
The State Program should:

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

5. М ]ф 5
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 1DSP m Main action n…
…Action 1 Action k …Action 1 Action l
XXX
Expenditureclassification
code

6. М ]ф 6
Disclosure of Main Actions in Budget Documentation
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 Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х
Federal Budget 2014-2016, 2015-2017.
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 Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х Х
Federal Budget 2016-2018, option

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

8. М ]фМ ]ф 8 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