IABBProfile

IABB R&D and Project Activities

Russian Public Finance Analysis

Areas for Future Contacts

Key Points

Russia

IABB Location

to be an active participant in economic reforms by introducing and expanding new training technologies

to educate analytical managers and specialists capable of taking responsibility for the future of our country

to act as a role model of an effective educational system that meet the requirements of our time

IABB Mission

Partners of the IABB

Business Sector- AVTOVAZ

- Financial Institutions

- Industrial Enterprises

Federal Government

of Russia

The World Bank

Regional &

MunicipalAuthorities

International Academy of Business and Banking

IABB Project & Consulting Activity

• Executive Training

• Business and Government Re-engineering

• Public Finance Research

1998Municipal Staff Training Program

1998-2000Presidential Management Training Initiative (PMTI)

PerspectiveManagement Education Center of Volga Federal District

Experience in Executive Training and Perspectives

City Council Development Projects- Housing & Communal Services 1997

- Municipal Financial System 1995

Local Banking Community Consulting- Assets & Liabilities Management 1999

- Information Technologies in Banking 1997

- Strategic Planning for Commercial Bank 1996

Projects for Samara region Enterprises- Heat-Electric Power System of the Samara region 1999

- Chemical Industry 1999

- Analytic of Car Industry (AVTOVAZ) 1996

Experience in Business & Government Re-engineering

Research in Public Finance

World Bank Ministry of Finance Russia

Regional Fiscal Technical Assistance

Project

World Bank Project Overview

Stages of the Regional World Bank Project

Apr’2000 Dec’2000 Dec’2001 Dec’2002 Dec’2003

1. Diagnosis of financial state and quality of regional finance management

2. Fiscal legislation improvement on the federal and regional level

3. Federal monitoring system development

4. Technical Assistance ofRegional authorities

5. Budgetary expenses overview:

• Social policy• Communal and Housing Services• Education• Public Health Services

• Culture & Recreation• Public Transportation• Industry & Agriculture• State and Municipal Government• Law enforcement

Stages of Diagnosis of Financial State and Quality of Regional Finance

Preliminary report

First Intermediate report

Second Intermediate report

Final report Additional report

1. General Assessment

2. Analysis of Legislation

3. Debt Management

4. Quality of Financial Management

5. Treasury Budget Execution System

6. Reforming Program and Concept

7. Imple-mentation of Reforming Program

Economy of the USSR

Post Soviet/Russian Management System

Development Steps of Russia Financial System

Soviet System

Basisfor New System

Second Reform

Adoption ofSystem to New

Conditions

Accumulation ofFederal Debt

First Reform ofInter-budgetary

System

1991 1993 1995 1998 Now 2001

Principal Structure of Russian Budgetary System

Federal

Regional

Municipal(Local)

EducationPublic Health Service

Social SecurityHousing & Communal Services

SocialInfrastructures

Non-budgetary Funds:

- Pension- Social Security- Medical Insurance- Employment

Households

R E

R E

R E

Fin.Aid

Fin.Aid

Taxes

Businesses / Enterprises

R E

P L

Main Problems in Russian Budgetary System

Decentralized budget resources / Centralized budget powers

• Non-regulated powers and responsibilities between budgetary system levels

• Disparity between federal and regional legislation• Amount equal to 50% of Federal Budget

accumulated in non-budgetary funds• Complex and overburdening taxation system• Non-monetary forms of tax payments

Main Problems in Regional Budgetary System

Lack of Efficient Budget Management Technologies:

- Treasury budget execution

- Debt management

- Financial planning

- Investment planning

- Informational system implementation

Possible Areas of cooperation

• Fiscal Transparency in Russia• Business re-engineering

Seminar

The William Davidson Institute AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL

Ann Arbor, USA

International Academy

of Business and Banking Togliatti, Russia