The public debt is athe state budget deficit minus the surplus (positive balance) for a certain date. In practice, the state debt of Russia is the country's debt to physical and legal entities, international organizations, other subjects of international law, foreign states, as well as obligations under state guarantees provided by the Russian Federation.
Legislatively, the budget code of the RF establishes,that external public debt is obligations that arose in foreign currency, while domestic public debt is obligations that appear in the national currency.
To better match existing realities, these concepts can be formulated as follows: external public debt of the Russian Federation -all attracted loans from foreignsources for which certain financial obligations of the state appear as a borrower of funds or guarantor of repayment of loans granted to other borrowers. Such external borrowing forms loans to Russia.
For determining internal state debt use such formulations and terminology.Capital - equals the amount of obligations that the state does not have, including interest thereon. Basic - implies the nominal value of the country's obligations and borrowings, which it guaranteed.
According to the Budget Code of the Russian Federation, the volume of domestic debtincludes the main debt (for securities issued by the state, loans, loans, state guarantees provided by the country). In the external - include obligations on state guarantees provided by the country, and the amount of principal for all loans provided by foreign governments, firms, international organizations, credit companies.
The public debt will grow if there are delays in paying interest on the principal loan.
Like the national debt of the countries of the world, the state debt of Russia can have several forms. It can be in the form of loan agreements,concluded on behalf of the Russian Federation with other states, financial international companies, credit organizations; by issuing government-issued securities; contracts on obtaining budget loans and loans from the lower-level budgets of the RF system; agreements on prolongation of obligations and their restructuring; agreements on obtaining loans and credits from lower levels of the budget system.
Debt service state requires redistribution of incomecountries. In order to repay loans, you can use the assets available to the state, as well as give part of the state property to privatization. There is another approach, which provides for an increase in budget revenues through the expansion of the tax base. In this case, the burden is shifted to the population (taxpayers). Another source of loans are the Central Bank.
In fact, servicing foreign debt leads to a redistribution of a certain part of the national income in favor of non-residents.
The country has a system of accounting for state borrowings, which is controlled by the Ministry of Finance.
At the expense of the budget is financedactivities of the President of the Russian Federation, the activities of the executive, judicial and legislative authorities, national defense and state security; support for individual business entities operating in priority sectors of the economy; financing of state institutions; financing of international projects conducted in the national interest; for the liquidation of the consequences of natural disasters and emerging emergencies; financing of elections and other expenses of state authorities of the Russian Federation.
