Republic

Concern over disuse of Belarus-Russia union budget in 2013

MINSK, 13 November (BelTA) – The volume of unused funds of the budget of the Union State of Belarus and Russia increased by more than one third in 2013 to a total of RUB1.5 billion, the press service of the State Control Committee of Belarus told BelTA.

A joint session of the boards of the supreme financial audit agencies of Belarus and Russia took place in Moscow on 12 November. It was chaired by Chairman of the State Control Committee of Belarus Leonid Anfimov and Chairwoman of the Accounts Chamber of Russia Tatiana Golikova. Participants of the session discussed the conclusion of the auditing agencies of the two countries regarding the report presented by the Union State Council of Ministers to cover the execution of the Union State budget in 2013.

Leonid Anfimov remarked that improving the effectiveness of spending of every ruble allocated by the Union State budget is a top-priority task for the sake of developing the economies of the two countries in view of the increasing influence of unfavorable external factors. “This is why it is so important to regulate the budget process — from compiling the budget bill to preparing the budget execution report — with assistance of the top financial audit agencies,” stated the SCC head.

In turn, Tatiana Golikova stressed that in the last few years the top financial audit agencies of the two countries stepped up cooperation in control over the formation and execution of the Union State budget. “The quality of joint control measures greatly influences the real figures that indicate the rapprochement of our countries, the development of their trade and economic integration in the Commonwealth of Independent States and other formats of interaction,” she stated. “I hope that the implementation of our proposals will allow the Council of Ministers of the Union State to improve the budget process and use the Union State budget more effectively”.

It was noted during the session that up till now the Union State budget has been drafted without using forecasts of the future development of economic integration in the Union State, its social and economic development and the main priorities of the budget and fiscal policy. The lengthy development and approval of Union State programs represent a systemic disadvantage. Every year the Union State budget accumulates money, with considerable part of it left unused. In 2007-2013 the national budgets apportioned about RUB950 million for the Union State budget without any proper purpose.

The analysis of the execution of the Union State budget in 2013 has once again demonstrated the insufficient quality of management of state finances. While resources were allocated for 94.5% of the total expenses (over RUB5 billion) only 85.6% (RUB4.5 billion) was transferred to contractors. After the figures were revised, it turned out that the expenses were RUB760 million below the expected level. As of 1 January 2014 leftovers of the Union State budget stood at RUB1.5 billion, 1.3 times up from 2012 or 2.6 times up from 2011 and 4 times up from 2010.

The primary agencies in charge of disbursing Union State budget money have been failing to disburse designated amounts for the last few years. The fact testifies to their ineffective operation.

Participants of the session mentioned the need to further improve the legal base of the Union State of Belarus and Russia. The unity of approaches to filling in reports by the national treasuries has not been secured yet, the relevant guidelines have not been worked out, the deadlines for submitting monthly and quarterly reports on executing the Union State budget in Belarus and Russia have not been approved.

Leonid Anfimov and Tatina Golikova approved a joint action plan for 2015 that envisages a number of joint audits that the control agencies of the two countries will have to carry out. An agreement on cooperation between the Permanent Committee of the Union State of Belarus and Russia, the Accounts Chamber of Russia, and the State Control Committee of Belarus was signed during the session.

A session of the boards of the State Control Committee of Belarus, the Accounts Chamber of Russia, and the committee in charge of controlling the execution of the national budget of Kazakhstan also took place on 12 November. Participants of the session discussed results of the joint audit of the observance of the agreement on establishing and applying procedures for calculating and distributing import customs duties in the Customs Union in 2013. The agreement stipulates the procedure for calculating and distributing import customs duties between Customs Union member states with regard to the commodities, which are subject to import customs duties as of 1 September 2010. The agreement stipulates that Belarus is supposed to get 4.7% of the total sum, with Kazakhstan getting 7.33% and Russia taking 87.97%.

The joint audit revealed that the treasuries of Belarus, Russia, and Kazakhstan used dedicated resources to take account of import customs duties in 2013. The sums to be transferred to the budgets of the three member states were calculated using computerized information systems. The sums were then transferred in line with the relevant regulations. In 2013 the budgets of the Customs Union member states received $24.3 billion worth of import customs duties, 9% down from 2012.

Of the total Belarus received Br10.1 trillion (or $1.1 billion) worth of import customs duties. The balance of settlement payments with regard to import customs duties was positive for Belarus and amounted to $0.1 billion. Meanwhile, Kazakhstan received $1.8 billion while Russia received $21.4 billion.