The Ministry of Finance explained why 1.6 trillion rubles did not reach the economy in six months.

According to the results of the first six months of 2023, the volume of funds not brought to the budget exceeded 1.6 trillion rubles, despite the large advances in government contracts at the beginning of the year, follows from the July report of the Bank of Russia (.pdf). However, the Ministry of Finance explained “Izvestia”that 1.6 trillion rubles are advance subsidies and reserved funds under government contracts that are spent in accordance with financing plans during the year.

According to the report of the regulator, at the beginning of 2023 future expenses from the state budget were actively advanced. Money to the executors of state orders was transferred not directly, but to their accounts in the Federal Treasury. As a result, part of the expenses reflected in the financial statements did not reach the economy. According to the results of the first half of the year, the volume of outstanding funds exceeded 1.6 trillion rubles.

“Part of the expenditures reflected in the budget reports were not actually brought to the economy and did not affect the change in the accounts of budget recipients in credit institutions (funds are deposited in their accounts with the Federal Treasury),” the report says.

The Ministry of Finance told Izvestia that the 1.6 trillion rubles indicated in the report of the Bank of Russia are advance subsidies and reserved funds under government contracts, “which, in accordance with the procedure established by Russian budgetary legislation, are brought to the main recipients of federal budget funds in full and spent in accordance with the estimates and financing plans during the year. The department emphasized that they consider the regulator’s statement about the “settled” funds of budget recipients to be incorrect.

Since 2020, the government has been using flexible management of the possibilities for advance payments for government contracts – the tool allows you to increase the speed of receipt of budget funds into the economy and support business in a crisis. In March of this year, the special conditions for the advance payment of government contracts were extended until the end of 2023.

As explained to Kommersant in the Ministry of Finance, suppliers will be able to receive from customers up to 50% of the contract amount, subject to its treasury support. For contracts that are not subject to treasury control, the maximum amount of the advance will be limited to 30% of its value.

More details – in the material “Kommersant” “Who did not have time, that is not an advance”.