IMF国际货币组织全球-Russian-Federation_Fiscal-Transparency-Evaluation-Update_28页_741kb

Summary of the Russian Federation Fiscal Transparency Evaluation Update (October 2019)

Core Content

This document presents the results of the IMF's Fiscal Transparency Evaluation (FTE) Update for the Russian Federation, conducted as part of the 2019 Article IV surveillance mission. The evaluation assesses Russia's progress in fiscal transparency since the 2014 FTE and outlines further recommendations for improvement.

Main Views

• Russia was one of the first G20 countries to pilot the IMF's FTE, which was based on the 2013 draft of the Fiscal Transparency Code. The evaluation report was finalized in May 2014 and the Code was later updated and approved in June 2014.
• The 2019 evaluation found that Russia has made significant progress in improving fiscal transparency, particularly in the areas of fiscal risk analysis, budgeting, and tax expenditure reporting.
• Despite progress, there are still areas of concern, such as the integrity of fiscal statistics, the classification of public corporations, and the use of sovereign wealth funds for extrabudgetary transfers.
• The evaluation recommends ten further reforms to strengthen fiscal transparency, including improving the independence of Rosstat, reducing secret expenditures, and enhancing the comparability and quality of fiscal data.

Key Information

I. Fiscal Reporting

• Coverage: Russia has maintained a "Good" rating for the coverage of institutions, stocks, and flows. It has also improved its coverage of tax expenditures from "Basic" to "Good".
• Frequency & Timeliness: The frequency and timeliness of reporting remain at "Advanced".
• Quality: The quality of fiscal reporting has improved, with internal consistency and historical revisions moving from "Basic" to "Good".
• Integrity: The statistical integrity remains "Good", but external audit is still rated "Basic".

II. Fiscal Forecasting and Budgeting

• Comprehensiveness: Russia's fiscal forecasting and budgeting practices are rated "Basic" for the investment projects category.
• Orderliness: The orderliness of fiscal legislation and budget timeliness are rated "Advanced".
• Policy Orientation: The policy orientation is rated "Good", with public participation moving from "Basic" to "Good".
• Credibility: The independent evaluation of forecasts has improved from "Basic" to "Good", while forecast reconciliation remains "Basic".

III. Fiscal Risk Analysis and Management

• Risk Disclosure and Analysis: Russia has improved its disclosure of macroeconomic and specific fiscal risks, moving from "Basic" to "Good".
• Risk Management: The management of fiscal risks remains at "Basic" in some areas, including public-private partnerships and environmental risks.
• Fiscal Coordination: Coordination with sub-national governments is rated "Advanced", but public corporations remain at "Basic".

Recommendations for Further Improvement

1. State-owned enterprises (SoEs): Publish a summary document on the financial performance of the SoE sector and audited financial statements for all SoEs.
2. Statistical integrity: Make Rosstat fully independent and publish metadata explaining how fiscal data are compiled.
3. Public-private partnerships (PPPs): Publish annual estimates of government obligations under PPP contracts.
4. Forecast credibility: Compare government forecasts with those of independent bodies and explain differences.
5. Fiscal rules: Ensure fiscal rules are followed to build up the National Welfare Fund (NWF) for macroeconomic stability.
6. Budgetary integrity: Ban extrabudgetary domestic investment by NWF and reduce secret expenditures.
7. Supplementary budget: Return to normal in-year virement rules for the 13 National Priority Projects.
8. Fiscal risks report: Publish an updated Fiscal Risks Report (FRR) every 3 years and require government response within 2 years.
9. Long-term analysis: Include 30–50 year projections in the FRR to assess intergenerational fairness.
10. Natural resources: Publish annual estimates of natural resource reserves and evaluate their management against the updated Pillar IV of the Fiscal Transparency Code.

Progress Since 2014

• Russia has improved the classification of institutions, valuation of assets, and disclosure of tax expenditures.
• The National Welfare Fund (NWF) has been used for extrabudgetary transfers, but there are calls to restrict this.
• The Federal Treasury continues to produce fiscal statistics, though Rosstat is now under the Ministry of Economy.
• Public participation in budgeting has improved, with participatory pilots in over half of Russia's regions.
• The first Fiscal Risks Report was published in 2015, and long-term forecasts began in 2018.

Conclusion

The evaluation update highlights both progress and remaining challenges in Russia's fiscal transparency. While the country has made strides in aligning with international standards, there are still key areas that require further reform to ensure transparency, accountability, and sustainability in fiscal management.