Expenditure
Reserve Fund’s assets may be applied to finance oil and gas transfer to ensure balance of federal budget and for early foreign national debt repayment.
Reserve Fund’s assets are applied to finance the oil and gas transfer without amending the federal law for the corresponding fiscal year and the planning period in case oil and gas revenues of the federal budget earned during the corresponding fiscal year are deficient for these purposes. [1]
The maximum amount of Reserve Fund’s assets to be used to finance oil and gas transfer is approved by the federal budget law for the corresponding fiscal year and planning period. Use of Reserve Fund’s assets to finance the oil and gas transfer in periods of adverse market conditions allows to conduct balanced budget policy and contributes to stability of the social and economic development of the country, insulating it from volatility of global commodity markets.
Application of Reserve Fund assets to repay foreign national debt early contributes to decrease of federal budget debt and reducing of federal budget expenses for service of national debt.
Starting from 2009 and up to 2012 Reserve Fund assets are used according to specific procedure that provides for right of the Government of the Russian Federation without amending the federal law on federal budget to deploy Fund assets to payments that reduce debt, borrowing programs and ensure that federal budget is balanced (including financing of oil and gas transfer). Deployment of funds can excess overall federal budget expenditures in case and in scope of increase of federal budget expenditures for ensuring budget balance of non-budgetary government funds of the Russian Federation.[2]
[1] Budget Code of the Russian Federation, chapter 13.2, article 96.8, clause 4,
based on Federal law No.58-FZ dated 9 April 2009 “Amendments to the Budget Code of the Russian Federation and particular legislative acts of the Russian Federation”
[2] based on Federal law No.58-FZ dated 9 April 2009 “Amendments to the Budget Code of the Russian Federation and particular legislative acts of the Russian Federation”.