
УPreparedness activities in theeconomyФ
450
500
835
500
+11,1 / -7,6
+85,5 / +54,3
+11,1 / -17,5
Note: for calculation purposes, theinflation rate in 2000 to 1999 was 20.2%; in 2001 to 2000 it stood at12%.
* 20000– federal budgetearly in the year; 20002 end of the year, after two adjustments.
The 2001 federal budget was adjusted fivetimes in the course of the year, but only one adjustment made in accordancewith Federal Law No 161-FZ of 14.12.2001 impacted military spending. With theactual execution of the 2001 federal budget, military spending increasedconsiderably.
Execution of the 2001federal budget
We shall start by noting that federalbudget administration is not easy to analyze because of the non-performance ofArticle 272 of the Budget Code whereby the budget execution report Уmust bedrafted under the same structure and budgetary>
The structure of quarterly reports fails tomatch the structure of the approved 2001 budget. Moreover, quarterly andsemiannual reports have different structures. The former report listsexpenditures mostly by sections and subsections of the functionalclassification and only to a very insignificant degree (less than 2 percent),by target items and types of spending. The first semiannual report showscomplete breakdown to sections, subsections, target items and types ofspending, except those that the Russian Government >
For instance, expenditure for themaintenance of the armed forces is fully disclosed in the non-classified appendix, while in thefirst semiannual performance report the expenses are fully >
Performance figures on aggregatedexpenditure of the federal budget and expenditures relating to the militaryorganization of the Russian Federation are shown in tables 48, 49, and 50. Asthe tables suggest, expenditures relating to the military organization wereexecuted in full and evenly.
The exception is funding under titleУMilitary ReformФ (section code 2500) and two subsections УInternal securitytroops of the Ministry of InteriorФ (0502) and УTraining and participation incollective security and peacekeepingФ (0404).
Under section 2500, in the first six monthsof 2001 actual expenses stood at 62% (budgeted 75,02%), and under section 0502,59% actual expenses (69% budgeted).
Accelerated funding under section 2500might have been due to the intent to reduce expenditures to support retiredmilitary and more rational use of current expenses. The increased financingunder 0504 must have been caused by additional costs of the military operationin the Republic of Chechnya.
The suspended financing under subsection0404 was caused by the delayed legal status (no RF Government resolutionallowing the payment).
All of the above transgressions from therequirements of Article 272 of the Budget Code, including imposing secrecy onthe expenditure data whose level has been made public in the federal budgetlaw, affect the State Duma’s ability to fulfill its supervisory functions over the budgetperformance, thus reducing the efficiency of expenditures in general, andmilitary spending in particular.
Table 48
Military and related spending in Russia in2001 (mln. rubles)
Title of expenditures | |||||||||
0 | Total expenditures under FB-01 | 1193483 | 60615 | 170415 | 268772 | 365169 | 465029 | 578789 | |
1268006 | |||||||||
1 | Nationaldefense, of which | 0400 | 214688 | 7551 | 23400 | 41470 | 65318 | 87566 | 106729 |
234582 | |||||||||
1.1 | Development and maintenance of armedforces in Russia | 0401 | 203061 | 39571 | 102106 | ||||
- development of the armed forces | 0401 |
Table 48 (cont’d)
Title of expenditures | |||||||||
- maintenance of the armedforces | 0401 | 132691 | |||||||
1.2 | Preparedness activities and militarytraining for civilians | 0403 | 2278 | 300 | 879 | ||||
1.3 | Preparation for and participation incollective security and peacekeeping | 0404 | 2716 | 116 | 540 | ||||
2 | Aggregated expenditures for lawenforcement and state security, of which: | 0500 | 131621 145832 | 3983 | 13365 | 24700 | 35092 | 45572 | 57062 |
2.1 | Border services and border guardstroops | 0506 | 11943 | 1820 | 4632 | ||||
2.2 | Internal security troops of the RFMinistry of Interior | 0502 | 10157 | 2249 | 6037 | ||||
2.3 | State security services | 0505 | 21191 | 4150 | 9236 | ||||
3 | Other outlays for the militaryorganization | ||||||||
3.1 | Maintenance and equipment for Emercomtroops | 1302 | 12455 | ||||||
3.2 | Federal service of railroad troops,code 029 | 0403 | 1851 | 673 | |||||
3.3 | Federal service of special construction, code279 | 0707 | 483 | 186 |
Table 48(cont’d)
0 | Total expenditures underFB-01 | 679087 | 804844 | 929650 | 1035836 | 1135938 | 1325688 | |
1 | Nationaldefense, of which | 0400 | 127278 | 147524 | 169302 | 193823 | 209917 | 246712 |
1.1 | Development and maintenance of armedforces in Russia | 0401 Pages: | 1 | ... | 34 | 35 | 36 | 37 | 38 | ... | 39 |![]() |