Finance Ministry says own budget revenue forecasts poor
MOSCOW. April 25 (Interfax) - The Russian Finance Ministry named itself and the Russian Treasury as among the five main administrators of federal budget funds, which did not provide adequate budget revenue forecasting in the first quarter of 2012, significantly (by more than 30%) lowering them.
The Finance Ministry talked on its website about the results of monitoring financial management quality in the first quarter and the risks of poor budget revenue management quality (with the exception of tax and customs revenue) because as of April 1, Russian Federal Subsurface Resources Agency (Rosnedra), the Finance Ministry, Treasury and Interior Ministry had not provided adequate revenue forecasts.
The Finance Ministry predicted revenue of 32.6 billion rubles, the Treasury - 28.3 billion, Interior Ministry - 19.3 billion, Rosnedra - 3 billion and Russian Federal Property Agency (Rosimuschestvo) - 2.1 billion.
The Finance Ministry analyzed budget risks and showed the high risk of the following negative events at the end of the first quarter of 2012: late or incomplete adoption and implementation of contractual budget funds and poor liquidity account management quality due to inadequate forecasting of budget spending.
In addition, there is the risk of a failure to implement industry (department) plans to increase the efficiency of budget spending and poor quality of revenue management (excluding tax and customs revenue).
Late or incomplete adoption and implementation of contractual obligations is linked to the 50 key managers having a low percentage of budget obligation distribution limits (less than 70%).
Budget spending forecasting error remains high. Among the federal executive bodies only 13 had a margin of error of less than 15%.
Of 85 federal executive bodies evaluated during the monitoring (executive bodies with a large amount of secret financial information were not evaluated (FSB, FSO, Defense Industry, SVR and GUSP), as well as budget institutions with over 70% subsidies for government tasks), 30 carried out measures in the first quarter in accordance with schedules to increase budget spending efficiency by a level of under 50%.
The ministry also said 15 federal executive bodies did not submit reports about the measures to the Finance Ministry on time.
The best results in the monitoring were obtained by the Federal Customs Service, Treasury, the Federal Migration Service, Federal Tax Service and Audit Chamber.
The worse results were obtained by the Federal Medical-Biology Agency, Sport, Tourism and Youth Policy Ministry, Federal Rail Transport Agency, Federal Accreditation Service and Federal Aerospace Agency.