Government debt is the sum of the state budget deficit that has developed on a certain date minus a surplus (surplus). In practice, the state debt of Russia is the country's debt to individuals and legal entities, international organizations, other subjects of international law, foreign states, as well as obligations under state guarantees provided by the Russian Federation.
The legislative budget code of the Russian Federation establishes that external government debt is a liability that arose in a foreign currency, while domestic government debt is a liability that appears in a national currency.
To better match the existing realities, these concepts can be formulated as follows: the external public debt of the Russian Federation — all attracted loans from foreign sources, for which certain financial obligations of the state appear as a borrower of funds or a guarantor of repayment of loans issued to other borrowers. Such external borrowings form loans to Russia.
To determine the internal public debt using such formulations and terminology. Capital - equals the amount of unliquidated obligations by the state, including interest on them. Basic - implies the nominal value of the country's obligations and borrowings, which it guaranteed.
Under the Budget Code of the Russian Federation, the volume of domestic debt includes the main debt (for securities issued by the state, loans, loans, state guarantees provided by the country). External - include obligations on state guarantees that the country provides, and the principal amount on all loans provided by foreign governments, firms, international organizations, credit companies.
Government debt will increase if there are delays in the payment of interest on the main loan.
Like the national debt of the countries of the world, the public debt of Russia can take several forms. It can be in the form of loan agreements concluded on behalf of the Russian Federation with other states, international financial companies, credit organizations; government loans by issuing government securities; agreements on obtaining budget loans and credits from budgets of the lowest level of the RF system; agreements on the extension of obligations and their restructuring; agreements on obtaining loans and credits from the lower levels of the budget system.
Serving government debt requires a redistribution of income. In order to repay loans, you can use the assets available to the state, as well as transfer part of state property to privatization. There is another approach, which provides for an increase in budget revenues through the expansion of the tax base. In this case, the burden is shifted to the population (taxpayers). Another source of loans are the Central Bank.
In fact, servicing external debt leads to the redistribution of a certain part of the national income in favor of non-residents.
The country has a system of accounting for state borrowings, which is controlled by the Ministry of Finance.
The budget finances the activities of the President of the Russian Federation, the activities of the executive, judicial and legislative branches, national defense and state security; support is provided to individual business entities operating in priority sectors of the economy for the country; financing of state institutions; financing international projects conducted in the national interest; to eliminate the consequences of natural disasters and emerging emergencies; financing of elections and other expenses of state authorities of the Russian Federation.