Treasury

Despite the many changes and reforms in Russia over the past few years, budget execution still presents significant problems. There is a lack of efficient control of expenditure, of information on extrabudgetary funds, of a well-defined procedure for the allocation of funds between different levels of government. In addition, there are problems with the budget classification, the obsolete system of public accounts, weak debt and cash management practices.

In 1993, Russia began its work on setting up me Federal Treasury. It consists of the Main Department of the Federal Treasury of the Ministry of Finance of the Russian Federation and its territorial bodies in republics, areas, and regions. The tasks of the Treasury are the following: to organize and exercise control over the execution of the federal budget; to regulate relations, between the federal budget and federal off-budget funds; to exercise control over the receipt and use of the funds; to regulate relations between the federal budget and budgets of subjects of the Federation; to make, short-term projections of financial resources and to manage them; to collect and compile information about the position of federal finances, to manage and service the state internal and external debt jointly with the Central Bank.

The new Treasury is expected to require that all spending units should report their operations at the commitment, verification and payment stages. The plan is that after verification of budget allocation and compliance with existing authorization the Treasury will issue the actual payment orders against a unified Treasury account with the Central Bank. This will imply a far-reaching change of budgeting practices in Russia. The new mechanism will allow the government to exercise effective spending controls in order to have updated information on government expenditure and for debt and cash management purposes. The new Treasury is also expected to help remedy other deficiencies in the process of budget execution. Effective implementation of the new Treasury system will lead to changes outside the budget execution, such as budget classification and accounting standards.

Words you may need:

despite – не дивлячись на

lack – недолік

obsolete – застарілий

public account рахунок державного закладу

debt and cash management – управління боргом та наявними коштами

to exercise control – здійснювати контроль

receipt – отримання, надходження

internal and external debt – внутрішній та зовнішній борг

jointly (with) – сумісно (з)

spending unit – бюджетна одиниця

commitment – доручення

verification – перевірка, контроль

authorization – дозвіл

to issue payment orders – видавати платіжні доручення

updated – оновлений, скорегований

to remedy deficiencies – виправляти недоліки

accounting standards – стандарти бухгалтерського обліку

3.Read the text and say what you know about the budget process:

Дата добавления: 2014-11-29