Public Debt

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2020-07-03 03:10:07

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The national debt represents the current on a specific date the amount of the state budget deficit minus the surplus (positive balance). In practice, the public debt of Russia is considered the country's debt to individuals and legal entities, international organizations, other subjects of international law,  foreign States, as well as obligations on the state guarantees given by the Russian Federation.

The legislation budget code of the Russian Federation establishes that  the external public debt is  the obligations incurred in a foreign currency,  while domestic public debt – the commitments appearing in the national currency.

To better match current realities, these concepts can be formulated as: The external state debt of the Russian Federation –all  attract loans from foreign sources, which appear certain financial obligations of the state as a borrower or guarantor of repayment of loans to other borrowers. Such external borrowing form the Russian loans.

To determine the Domestic debt use such language and terminology. Capital equals the sum of outstanding government liabilities, including interest thereon. Main - means the nominal value of commitments and loans which it guaranteed.

According to the Budget Code of the Russian Federation the volume of domestic debt includes the principal debt (securities issued by the government loans loans, government guarantees provided by the country). External - include liabilities arising from guarantees offered by the country, and the principal amount of all loans granted by foreign governments, firms, international organizations, loan companies.

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The national debt will grow if there are delays in the payment of interest on the principal loan.

As the public debt of the countries of the world, Russia's state debt may take several forms. It can be in the form of credit agreements on behalf of the Russian Federation with other States, international financial companies, credit institutions; Treasury bonds through the issuance of securities of a public nature; the contract to provide budget loans and credits from budgets of lower-level system of the Russian Federation; agreement on the extension of commitments and restructuring; agreements about obtaining loans and credits from the lower levels of the budget system.

Debt Service the state requires redistribution of income in the country. In order to pay off the loans, you can use the state's existing assets and also to give part of the state property in privatization. There is another approach, which seeks to increase revenues through broadening the tax base. In this case, the burden shifted to the population (taxpayers). Another source are the credits of the Central Bank.

In fact, the external debt service leads to a redistribution of a certain part of national income in favor of non-residents.

The country has a system of accounting hozaystvennih, which is controlled by the Ministry of Finance.

At the expense of the budget funded the activities of the President of the Russian Federation, the activities of the Executive, judicial and legislative authorities, national defence and state security; supports separate business entities operating in the country's priority sectors; financing of institutions; financing international projects in the national interest; for liquidation of consequences of natural disasters and resultant emergency situations; financing elections and other expenses of state authorities of the Russian Federation.

 

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