The public debt of Russia

Public debt is a certain amount of money that the government must return to individual citizens or commercial enterprises, as well as international organizations or countries. As a rule, it occurs with a budget deficit, that is, in a situation when the state's spending on performing its functions is much larger than the amount of incoming revenues.

Of course, the existence of such debt requires the government to take certain measures aimed at its repayment. The state debt of Russia is entirely secured by property that is part of the treasury. Specially authorized bodies annually develop and propose various ways to reduce the deficit, and subsequently and bring the debt to a minimum.

Public debt and its types

First of all it is necessary to distinguish external and internal debt. The first implies the debt of the country at the international level, that is, before foreign companies and individual states. And the internal form is a loan granted to the state by citizens of that country or by legal entities. Often, it is formed when issuing loans, which makes it possible to accumulate temporarily free cash assets of the population.

If we talk about specific forms of manifestation, Russia's public debt can be represented in the form of various loan agreements and agreements, international covenants, state loans in the form of securities. And such borrowing of funds can be carried out for any period, for example: up to a year, up to 5 years and even up to 30 years. The specific maturity is specified in the contract and is mandatory for execution. In addition, when issuing securities by government bodies, the period of their circulation is not subject to change.

The public debt of Russia includes financial obligations of the subjects of the federation and municipal debts. They act in the form of credit transactions, agreements and loans carried out at the appropriate level. However, the maximum maturity period for securities issued by municipal authorities is 10 years. At each level of the budgetary system, there is a state body that controls the activities of the subjects of the federation and municipal institutions in the sphere of borrowing funds. When approving the budgets of all levels for the next year, the issue of setting a limit on the amount of arrears is discussed in particular. Ideally, this figure should not be more than the revenue side of the budget of the appropriate level.

Russia's public debt can be repaid through the issue of securities or additional banknotes. In this case, the Central Bank acts as a financial agent of the government. Such activities should be conducted under strict supervision of specialists, because unlimited unsecured emission contributes to the growth of inflation, which can lead to a crisis in the economy of the whole country. Therefore, the process of covering the country's debt is considered quite a complex and delicate issue, which is still at the stage of study.