Government debt - a certain amount of money that the government must return to individual citizens and businesses as well as international organizations or countries.It generally occurs when the budget deficit, that is, in a situation where the cost of the state to perform its functions, much more than the amount of income received.
course, the presence of such debt by the government requires certain measures for its repayment.Russia's public debt is entirely provided by the property, which is part of the Treasury.Specially authorized bodies annually develop and offer a variety of ways to reduce the deficit, and eventually bring the debt to a minimum.
National debt and types
The first is to provide external and internal debt.The first involves the debt of the country at the international level, ie to foreign companies and individual states.A interior view of a loan provided by the State nationals or legal entities.Often, it is formed in the issuance of loans, which makes it possible to accumulate temporarily free funds of the population.
If we talk about specific forms of expression, the state debt of Russia can be represented in the form of various loan agreements and treaties, international covenants, government borrowing in the form of securities issuance.And such borrowing can take place at any time, for example, up to one year, up to 5 years or even 30 years.The specific maturity date specified in the contract is binding.In addition, the issuance of securities by public authorities during their treatment can not be changed.
Russia's public debt includes financial liabilities of the federal subjects and municipal debt.They are in the form of credit transactions, loan agreements and implemented at the appropriate level.However, the maximum period of repayment of the securities issued by the municipal authorities, is 10 years.At each level of the budget system provides a state body that controls the activity of the subjects of the Federation and local government agencies in borrowing.In approving the budgets of all levels for the next year is especially discussed in detail the issue of limiting the amount of debt.Ideally, said the figure should not be more profitable part of the budget of the corresponding level.
Russia's public debt can be repaid through the issuance of securities or additional notes.In this case, the Central Bank acts as fiscal agent of the government.Such activities should be carried out under strict supervision of professionals, as boundless unsecured issue contributes to higher inflation, which could lead to a crisis in the economy of the whole country.Therefore, the process of covering the country's debt is considered to be a very complicated and delicate matter which is still under study.
