Performance-Based Budgeting in Russia
Russia may well rank highly in a relevant international rating of the formal attributes of performance-based budgeting (PBB). The Russian government has created the necessary preconditions for PBB – introducing a multi-year budget and accumulating data on performance indicators that are considered in the budget planning process. The new budget code draft currently under discussion proposes strengthening the link between the budget and programmes. However, the use of PBB tools is not a guarantee of success. The experience of many countries has demonstrated that the use of performance indicators in budget discussions, spending reviews, etc. is an essential but insufficient condition for an effective budget system. This fully applies to the Russian budgeting practices. On the one hand, Russia has introduced many PBB tools, ranging from presentational budgeting to direct budgeting. On the other hand, the effectiveness of the budget spending leaves much to be desired.