National Project Budgeting in Conditions of Their Low Cash Execution

Abstract

An analysis of changes in the structure and volume of budget expenditure earmarked for implementation of national projects in the framework of the draft Federal Law on the Federal Budget for 2020 and the 2021 and 2022 Planning Period has revealed some positive trends that point to an increase in the corresponding federal budget expenditure targets. At the same time, in connection with the insufficient cash execution of the budget expenditure allocated in 2019 to the implementation of some of the ongoing national projects, a number of questions have arisen. The first one is that the increased amount of budget expenditure allocated in 2019 to national projects with a low level of budget expenditure implementation gives rise to some increased risks associated with formal approached to implementing the measures planned for the next years. The second one has to do with a lack of proper balance in the distribution of budget expenditure: the amount of expenditure allocated to some of the ongoing national projects appears to be insufficient, if we give consideration to their importance. The third one is that growth of expenditure earmarked for some national projects occurs alongside a corresponding shrinkage of allocations to the other projects, and this happens in absence of proper coordination of long-term funding priorities by means of project- and program-based instruments.