experience of the accounts chamber of the russian federation in performance auditing of public debt...

8
Experience of the Accounts Chamber of Experience of the Accounts Chamber of the Russian Federation in Performance the Russian Federation in Performance Auditing of Public Debt Management Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber of the Russian Federation

Upload: lesley-bell

Post on 17-Jan-2016

223 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Experience of the Accounts Chamber of the Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Russian Federation in Performance Auditing of

Public Debt ManagementPublic Debt Management

Vilnius, Lithuania

June 2011

Accounts Chamber of the Russian Federation

Page 2: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Main Objectives of Debt Policy in the Audit Period

To ensure the federal budget balance and keep the high level of debt

sustainability achieved in the recent years

To develop the national government securities market

To further reduce the relative amount of the external public debt of the

Russian Federation

Page 3: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Criteria of public debt management assessment in terms of ensuring debt sustainability and current ability to perform obligations as the main debt policy

objective

IndicatorCriterion

(indicative value)

Public debt of the Russian Federation, % to GDP < 50%

Share of internal public debt in total public debt of the Russian Federation> 50%

Share of costs of public debt service in total federal fiscal spending< 10%

Share of market debt securitized with government securities in total public debt of the Russian Federation > 55%

Relation of annual costs of public debt redemption and service to federal fiscal revenue<10%

Relation of public debt of the Russian Federation to federal fiscal revenue<250%

Relation of external debt of the Russian Federation to annual export of goods and services <220%

Relation of annual costs of external debt redemption and service to annual export of goods and services <25%

Page 4: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Behavior of indicators applied for the public debt management assessment in

terms of ensuring debt sustainability and current ability to perform obligations as the main debt policy objective

Indicator Unit 2004 2005 2006 2007 2008 2009 2010 Criteria(indicative

value)

Public debt of the Russian Federation, % to GDP

% 23.1 14.2 9.1 7.3 6.5 8.3 9.3 < 50%

Share of internal public debt in total public debt of the Russian Federation % 19.7 28.5 43.8 54.1 55.7 64.8 70.7 > 50%

Share of internal public debt in total public debt of the Russian Federation % 7.6 5.9 3.9 2.4 2.0 2.0 2.1 < 10%

Share of market debt securitized with government securities in total public debt of

the Russian Federation% 49.0 63.8 79.9 81.6 78.4 74.8 75.4 > 55%

Relation of annual costs of public debt redemption and service to federal fiscal

revenue% 17.5 24.6 17.1 5.2 4.2 5.2 6.2 <10%

Relation of public debt of the Russian Federation to federal fiscal revenue % 115.0 60.0 38.8 30.9 29.0 44.1 50.1 <250%

Relation of external debt of the Russian Federation to annual export of goods and

services% 38.3 21.5 10.2 7.2 6.4 12.8 10.1 <220%

Relation of annual costs of external debt redemption and service to annual export of

goods and services% 5.2 10.5 6.85 1.8 1.2 2.0 1.3 <25%

Reference information for the period 2004-2006 is provided in underlined Italic type, outside the audit period.

Page 5: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

-1,5

-1

-0,5

0

0,5

1

2004 2005 2006 2007 2008 2009 2010

Public debt of the Russian Federation, % to GDP

Share of internal public debt in total public debt of the Russian Federation

Share of internal public debt in total public debt of the Russian Federation

Share of market debt securitized with government securities in total public debt of the Russian Federation

Relation of annual costs of public debt redemption and service to federal fiscal revenue

Relation of public debt of the Russian Federation to federal fiscal revenue

Relation of external debt of the Russian Federation to annual export of goods and services

Relation of annual costs of external debt redemption and service to annual export of goods and services

Positions of Estimated Figures within Indicative Thresholds (0-1)

Page 6: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Results of the variation analysis of indicators used for public debt management assessment in terms of ensuring debt sustainability and current ability to perform obligations :

- In the audit period (2007-2010), all indicators used for assessment were below the indicative thresholds ;

- Certain indicators were far below the indicative thresholds evidencing that there was a wide margin for debt sustainability. And the indicators with the minimum indicative threshold fixed were also at the “safe” level ;

-Dynamics of certain indicators and analysis of factors determining these changes showed that some indicators had changed in relation to the indicative thresholds due to general economic factors and implementation of certain debt-related and budgeting decisions, and was not directly related to improvement or decrease in the public debt management performance. With that, some of these changes were posing certain additional threats to the federal budget .

Final Performance Assessment Taking into account all the factors analyzed, as part of the general integral

performance assessment of the Russia’s public debt management during the period of 2007-2010, the public debt management was assessed as quite efficient in terms of ensuring debt sustainability and current ability to perform obligations .

Page 7: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Conclusion

1. Basic indicators of assessment of the Russia’s public debt management performance in the context of ensuring debt sustainability and current ability to perform obligations as one of the main objectives of the government policy as approved by the Accounts Chamber of the Russian Federation and the Ministry of Finance of the Russian Federation in the course of the control activity, can be applied as a separate group of indicators included into the general system of performance indicators for assessment of public debt management.

2. It was decided to develop further cooperation between the Accounts Chamber of the Russian Federation and the Ministry of Finance of the Russian Federation in order to prepare an extensive list of criteria for performance assessment of public debt management.

Page 8: Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Public Debt Management Vilnius, Lithuania June 2011 Accounts Chamber

Experience of the Accounts Chamber of the Experience of the Accounts Chamber of the Russian Federation in Performance Auditing of Russian Federation in Performance Auditing of

Public Debt Management Public Debt Management

Vilnius, LithuaniaJune 2011

Accounts Chamber of the Russian Federation