Russian Practice of Identifying and Assessing Budget Risks
Russian Practice of Identifying and Assessing Budget Risks

Summary/Abstract: The paper examines different approaches to the assessment of budget risks existing in the Russian legal framework. The main attention is paid to the imperfections of government regulation in this field. Separate sections are devoted to the definition and procedure of budget risks management in the regions of the Russian Federation. The article examines methods of quantifying the budget risks proposed by Russian economists and researchers, their positive aspects and gaps are identified. The absence of a unified legal and methodological basis for a comprehensive analysis of budget risks taking into account external and internal threats is stated and explained. The main objective of the study is to clarify the legal regulation of assessment and identification of budget risks, including the risk of non-compliance with budgetary legislation and anti-corruption legislation; risk of non-compliance with the principle of the budgetary funds effectiveness and failure to meet the target values of financial management indicators. In particular, specific recommendations have been developed to introduce amendments to legal normative documents of the Russian Federation, mandatory for adoption in all Russian regions. The practical use of the formulated proposals, including recommendations on clarifying legal standards and documents on the organization of internal financial control, involves the elimination of contradictions revealed in the work and allows making informed decisions in the field of risk management and use of budget funds in the current economic environment.

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