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Reforming the Russian Budget System: A Move to More Devolved Budget Management?

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  • Mr. Jack Diamond

Abstract

The Russian federal government has recently initiated a fundamental reform of its budget system, encompassing important policy, procedural, and institutional changes. This paper reviews this reform agenda with reference to the experience of industrial countries that over the past two to three decades have followed a similar reform path toward a more devolved budget management system. From this perspective, the importance of the strength of existing public expenditure management systems to accommodate increased devolution and the scope for employing decentralized agencies is explored. An assessment of the present Russian reform plans in light of this review reveals a number of concerns. First, the speed of the reforms contemplated appears overly ambitious when judged by the experience of other countries. Second, the preparedness of budget institutions is questionable. Third, change management capacity needs strengthening with a more carefully defined strategy. Last, in light of these concerns, it is argued that the scope and "big-bang" approach of the current reform plans may need reformulation into a more sequenced strategy with clearer reform priorities.

Suggested Citation

  • Mr. Jack Diamond, 2005. "Reforming the Russian Budget System: A Move to More Devolved Budget Management?," IMF Working Papers 2005/104, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2005/104
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    References listed on IDEAS

    as
    1. Jack Diamond, 2003. "Budget System Reform in Transitional Economies : The Experience of Russia," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 39(1), pages 8-23, January.
    2. Mr. Jack Diamond, 2003. "From Program to Performance Budgeting: The Challenge for Emerging Market Economies," IMF Working Papers 2003/169, International Monetary Fund.
    3. Allen Schick, 2002. "Agencies in search of principles," OECD Journal on Budgeting, OECD Publishing, vol. 2(1), pages 7-26.
    4. repec:rus:hseeco:130401 is not listed on IDEAS
    5. Oecd, 2001. "Financial Management and Control of Public Agencies," SIGMA Papers 32, OECD Publishing.
    6. International Monetary Fund, 2004. "Russian Federation: Report on the Observance of Standards and Codes—Fiscal Transparency Module," IMF Staff Country Reports 2004/288, International Monetary Fund.
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    Cited by:

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    2. Carol S. Leonard & Zafar Nazarov & Elena S. Vakulenko, 2016. "The impact of sub-national institutions," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(3), pages 421-446, July.

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