The role of government borrowing of the Russian Federation in financing the budget deficit

Abstract

Today, the main source of financing the budget deficit of the Russian Federation is government borrowing, which forms the country’s public debt. Public debt affects the stability and balance of the Russian Federation budget, while creating a debt burden for future generations. The purpose of the study is to analyze government borrowings of the Russian Federation, their structure, dynamics, and place in financing the budget deficit. The theoretical and methodological basis of the work was research on state and municipal finance by Berzon, Igonin, Rakitin, Romanovskaya and other authors, as well as regulatory legal acts of the Russian Federation regulating the public debt of the Russian Federation. The official websites of the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation are used as information sources. The research methodology is based on the use of a structural-functional approach, methods of deduction, grouping, comparative and structural analysis, the method of time series, and methods for calculating debt sustainability. This article analyzes the structure and dynamics of government borrowing in the Russian Federation, identifying problems and future prospects for using the mechanism of government borrowing. The authors come to the conclusion that despite the fact that the public debt of the Russian Federation is at a low level in relation to the GDP, a gradual increase in debt obligations is still predicted, which can increase the debt burden and reduce the country’s debt sustainability.