Budget Investments in Russia: Not Investment but Transformation of Public Property
The article is devoted to budget investments in the Russian Federation, which have a double meaning nowadays. This fact often causes confusion and misunderstandings in the implementation of investment activities. Traditional Russian understanding of investment corresponds to the concept of capital expenditures or investments in fixed assets. As a result of budget investments, according to the budget legislation, the cost of public property shall necessarily increase. Such investments are budget expenditures for the creation (or purchase) of new capital assets. In this case the budget investments are like a synonym for capital expenditures. A new approach to the concept of cost of investments linked to perception and rethinking the concept of investment prevailing in the countries of Western Europe and North America. Under this approach the investments are understood as a commercial activity of the foreign investors, which consists of investing their funds in an unlimited range of objects of entrepreneurial activity on the territory of Russia. This approach is also embodied by the legislation of the Russian Federation. However, in the second (not traditional for Russia) meaning the investments are carried out at the budget execution. It is for example assets of sovereign wealth funds of the Russian Federation, which are called the Reserve Fund and National Welfare Fund. These funds are formed by part of the revenues associated with oil production in case of exceeding its cost base per barrel, and the free assets of these funds are located in certain foreign currencies and securities.