Annual meeting
of the INTOSAI Working Group on Public Debt
23 – 25 May 2019Baku, Azerbaijan
Strategic audit of the public debtof the Russian Federation
Public Debt and Financial Assets Audit DepartmentDeputy Head of Inspection
Tatiana Otrokhova
Strategic audit as a priority audit area 2
The Federal Law "On the Accounts Chamber of the Russian Federation" provides for
Financial audit,accompanied by
Compliance auditStrategic audit Performance audit
Increase in the share of strategic audit in the activities portfolio of the Accounts Chamber
Methodological development of strategic audit with a focus on analytical function
Development Strategy of the Accounts Chamber
of the Russian Federation
for 2018-2024
3Strategic audit goals
Strategic audit is performed in order to assess the feasibility, risks and results of achievingthe goals of socio-economic development of the Russian Federation, which are provided forby the strategic planning documents
Strategic planning documents on public debt and public borrowing are the following:
State programme of the Russian Federation "Public Finances Management and Financial Markets Regulation" for implementation in 2013-2024
Activity plan of the Ministry of Finance of the Russian Federation for 2019-2024
Subprogramme 4 "Public Debt and Financial Assets Management, Enhancing
the Impact of Engagement in International Financial and Economic Relations"
Budget forecast for the Russian Federation up to the year 2036
4Budget forecast for the Russian Federation up to the year 2036
IndicatorValue of the indicator
2017* 2018* 2019 2020 2025 2030 2035 2036
Revenues,as a percentage to GDP
16.4 18.8 18.9 18.3 16.0 15.0 14.3 14.2
Expenditures,as a percentage to GDP
17.8 16.1 17.0 17.2 16.0 15.6 15.0 14.8
Deficit / surplus,as a percentage to GDP
-1.4 2.7 1.8 1.1 0.0 -0.7 -0.7 -0.7
Public debt,as a percentage to GDP
12.6 12.1 13.9 15.0 16.4 16.4 16.2 16.1
*Actual values
Federal budget key indicators forecast up to the year 2036
5Budget forecast for the Russian Federation up to the year 2036: risk management of the contingent liabilities
Measures to establish contingent liabilities management system
Risk mitigation on the part of state companies
Monitoring of and control over debt burden of state companies Inclusion of state companies in the public finance statistics with a view to monitor the general level of
debt
Enhancing the effectiveness of development institutions
Formalization of support for development institutions with a view to streamline the regulation of relevant budgetary risks
Development of accounting and risk analysis mechanisms within the public-private partnership
Providing for quality of project accounting under the public-private partnership Accounting of guarantees for projects under the public-private partnership Enhancing the role of financial bodies at all stages of preparation and implementation of projects
Other measures
Stricter requirements for debt sustainability of the sub-federal political units of the Russian Federation
6Goals and tasks of Subprogramme 4
in the realm of public debt management
Tasks Ensuring the acceptable and economically reasonable volume and structure of the public debt of
the Russian Federation provided that the borrowing costs are minimized
Improving state policy on the public debt of the sub-federal political units of the RussianFederation
Facilitating socio-economic development of the Russian Federation by engaging with multilateraldevelopment banks in managing projects funded by loans from these banks
Goals Effective public debt and financial assets management in the Russian Federation
Ensuring interaction between the Russian Federation and the international economic andfinancial organizations including multilateral development banks
Public debt indicators of Subprogramme 4 andActivity plan of the Ministry of Finance of the Russian Federation
7
IndicatorUnit of
measurement
Value of the indicator
2018 plan 2018 fact 2019 plan 2021-2024 plan
Public debt of the Russian Federation to
GDP, not more than% 20 12.2 20 20
Public debt service to federal budget
expenditures, not more than% 10 4.7 10 10
Annual public debt principal repayments
and servicing to federal budget revenues,
not more than% 15 7.8 15 15
Public internal debt to the total amount of
public debt, not less than% 65 72.9 65 65
Target value of the debt portfolio* duration
for relevant year, not less thanyears 4.2 4 4.6 5
*Debt obligations not including government guarantees
Public Debt and Financial Assets Audit Department of the Accounts Chamber conducts strategic audit of the state programme
"Public Finances Management and Financial Markets Regulation"
8
Strategic audit includes
at the stage of implementation at the follow-up stageat the stage of development
Feasibility assessment of the provisions of a strategic planning document and resourcing of its activities, quality assessment of the indicators set forth in a strategic planning document
Assessment of the management system for development and implementation of a strategic planning document
Assessment of the risk management system and the system for monitoring and control of the implementation of a strategic planning document
Provisions for the audit of strategic planning documents at the following stages
Methodological guidelines on organizing and conducting strategic audit (authorized by the Board of the Accounts Chamber of the Russian Federation in December 2016)
Thank you for your attention!
Dear colleagues!
We are interested in exchange of experience in strategic audit methodology in the area of
public debt
Annual meeting
of the INTOSAI Working Group on Public Debt Audit
23 – 25 May 2019Baku, Azerbaijan