National Welfare Fund of Russia (NWF) formed on February 1, 2008 after the division of the Stabilization Fund into the Reserve Fund and the National Welfare Fund. The fund is part of the long-term pension provision mechanism for citizens of the Russian Federation. The National Welfare Fund, originally intended to insure the pension system, was kept in liquid instruments and was used to combat the crisis in 2008-2009.
Only part of the National Welfare Fund is part of the gold and foreign exchange reserves of Russia (GFR), since the IMF methodology for accounting for gold and foreign currency reserves requires a quality level of AA - almost equivalent to foreign currency. Therefore, gold and foreign currency reserves include only its part, denominated in foreign currency and placed by the Government of the Russian Federation in accounts with the Bank of Russia, which is invested by the Bank of Russia in foreign financial assets of the required reliability.
Part of the funds of the National Welfare Fund is invested in projects, which is unacceptable in terms of the level of risk and liquidity for gold and currency reserves and is not taken into account in them. Thus, the National Welfare Fund performs the functions of a riskier, but potentially more profitable instrument than gold and foreign currency reserves for the Government of the Russian Federation.
Description
The National Welfare Fund is a part of the federal budget funds that are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.
Management of funds of the National Welfare Fund
The funds of the National Welfare Fund are managed by the Ministry of Finance of the Russian Federation in the manner established by the Government of the Russian Federation. Certain powers to manage the funds of the National Welfare Fund may be exercised by the Central Bank of the Russian Federation.
Formation of the fund
The National Welfare Fund is formed through:
- oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
- income from managing funds of the National Welfare Fund.
On July 14, 2017, the State Duma in the second reading approved a bill on a new edition of budget rules, according to which the funds of the reserve fund are transferred to the ownership of the National Welfare Fund until February 1, 2018. By July 1, the reserve fund amounted to less than 1 trillion rubles, which was supposed to be fully spent according to budget projections.
Accommodation
On April 21, 2010, the Chairman of the Government of the Russian Federation V.V. Putin signed a decree of the Russian Government that until February 1, 2012 the Ministry of Finance will not be obliged to publish on the Internet information about the volumes of funds received into the accounts of the Reserve Fund and the National Welfare Fund, about where they are located and how they are used. However, data continues to be published.
On December 17, 2013, the media reported Russia's intention to place $15 billion from the National Welfare Fund in Ukrainian government bonds. This agreement was reached during negotiations between the Presidents of Russia and Ukraine on December 17, 2013.
However, according to Decree of the Government of the Russian Federation dated January 19, 2008 No. 18 “On the procedure for managing the funds of the National Welfare Fund”: “...Debt obligations of foreign states in which funds of the National Welfare Fund can be placed include debt obligations in the form of securities of the governments of Austria , Belgium, Great Britain, Germany, Denmark, Ireland, Spain, Canada, Luxembourg, the Netherlands, USA, Finland, France and Sweden...”
On December 23, 2013, the head of the Russian government, Dmitry Medvedev, signed a decree changing the procedure for placing funds from the National Welfare Fund (NWF) in debt obligations of foreign countries. According to the document, investing NWF funds in foreign government bonds is now allowed on the basis of separate decisions of the Russian government, which makes it possible to invest in securities of states “with a higher level of risk.” This resolution resolved the problem of investing NWF funds in Ukraine.
The structure of asset allocation and the problem of their liquidity
According to the British weekly Economist, as of November 2014, of the $170 billion held in the Reserve Fund and the National Welfare Fund, most of it may be illiquid or unavailable for use in case of urgent need. The Economist expresses doubts about the availability of NWF funds for the urgent needs of the Russian government. The publication notes that as of November, the fund’s funds (about $80 billion) were invested in various long-term projects. According to Sergei Guriev, the means NWF also issued to Vnesheconombank for the construction of Olympic facilities in Sochi and other infrastructure projects. In turn, former Russian Finance Minister Mikhail Zadornov, in an interview with the Dozhd TV channel, said that the possible use of the amount of gold and foreign currency reserves could be $200 billion.
At the same time, the opinion of observers expressed in the media is very different from the official reporting of the National Welfare Fund and audit reports.
In accordance with the financial report of the fund provided by the auditors, as of June 2016, the following were placed in securities of class AA- and higher:
- US$19.56 billion
- 20.76 billion euros
- £3.83 billion
These funds are taken into account in gold and foreign currency reserves.
In total, 1.6 trillion rubles (about 34% of the NWF) were invested in risky assets, with debt obligations to the NWF in rubles and foreign currency approximately equally divided. Such assets are divided into loans to Russian banks. The NWF’s reporting, contrary to the opinion of The Economist observers, records only 0.463 trillion rubles directly for relatively risky investment projects. And even the Accounts Chamber believes that the NWF’s risky investments in projects lag behind development plans and almost half of the funds allocated for projects remain in the form of foreign currency.
Risky investments of the fund and their profitability
In December 2014, the Federal Law “On Amendments to the Budget Code of the Russian Federation” was adopted, according to which up to 10% of the funds of the National Welfare Fund can be placed in Russian banks to finance infrastructure projects. On December 30, 2014, VTB Bank already received the first tranche in the amount of 100 billion rubles from the National Welfare Fund, the second tranche in the amount of 150 billion rubles is expected in the first quarter of 2015.
It should be noted that the risk of NWF investments in projects in the form of loans potentially brings income an order of magnitude greater than highly reliable US debt bonds in dollars and EU bonds in euros, since the latter have a yield of about 1% per annum. Since the placement is likely made in short-term bonds in order to be able to immediately receive cash dollars and euros, the income from investing by the National Welfare Fund in the US and EU economies is 0.46% per annum.
At the same time, loans issued by the National Welfare Fund bring it monthly income at a rate of about 6.5% per annum in foreign currency and 23.63% in rubles.
Profits from the placement of assets of the National Welfare Fund will be transferred to the budget.
Dynamics of changes
| date | Fund size billion $ |
Fund size billion rubles |
|---|---|---|
| 01.02.2008 | 32,00 | 783,31 |
| 01.03.2008 | 32,22 | 777,03 |
| 01.04.2008 | 32,90 | 773,57 |
| 01.05.2008 | 32,72 | 773,82 |
| 01.06.2008 | 32,60 | 773,93 |
| 01.07.2008 | 32,85 | 770,56 |
| 01.08.2008 | 32,69 | 766,48 |
| 01.09.2008 | 31,92 | 784,51 |
| 01.10.2008 | 48,68 | 1 228,88 |
| 01.11.2008 | 62,82 | 1 667,48 |
| 01.12.2008 | 76,38 | 2 108,46 |
| 01.01.2009 | 87,97 | 2 584,49 |
| 01.02.2009 | 84,47 | 2 991,50 |
| 01.03.2009 | 83,86 | 2 995,51 |
| 01.04.2009 | 85,71 | 2 915,21 |
| 01.05.2009 | 86,30 | 2 869,44 |
| 01.06.2009 | 89,86 | 2 784,14 |
| 01.07.2009 | 89,93 | 2 813,94 |
| 01.08.2009 | 90,02 | 2 858,70 |
| 01.09.2009 | 90,69 | 2 863,08 |
| 01.10.2009 | 91,86 | 2 764,37 |
| 01.11.2009 | 93,38 | 2 712,56 |
| 01.12.2009 | 92,89 | 2 769,84 |
| 01.01.2010 | 91,56 | 2 769,02 |
| 01.02.2010 | 90,63 | 2 757,89 |
| 01.03.2010 | 89,63 | 2 684,21 |
| 01.04.2010 | 89,58 | 2 630,27 |
| 01.05.2010 | 88,83 | 2 601,62 |
| 01.06.2010 | 85,80 | 2 616,54 |
| 01.07.2010 | 85,47 | 2 666,41 |
| 01.08.2010 | 88,24 | 2 663,76 |
| 01.09.2010 | 87,12 | 2 671,54 |
| 01.10.2010 | 89,54 | 2 722,15 |
| 01.11.2010 | 90,08 | 2 772,80 |
| 01.12.2010 | 88,22 | 2 761,96 |
| 01.01.2011 | 88,44 | 2 695,52 |
| 01.02.2011 | 90,15 | 2 674,53 |
| 01.03.2011 | 90,94 | 2 631,98 |
| 01.04.2011 | 91,80 | 2 609,66 |
| 01.05.2011 | 94,34 | 2 594,58 |
| 01.06.2011 | 92,54 | 2 597,55 |
| 01.07.2011 | 92,61 | 2 600,00 |
| 01.08.2011 | 92,70 | 2 566,04 |
| 01.09.2011 | 92,63 | 2 673,05 |
| 01.10.2011 | 88,69 | 2 827,10 |
| 01.11.2011 | 91,19 | 2 726,42 |
| 01.12.2011 | 88,26 | 2 764,40 |
| 01.01.2012 | 86,79 | 2 794,43 |
| 01.02.2012 | 88,33 | 2 682,21 |
| 01.03.2012 | 89,84 | 2 600,88 |
| 01.04.2012 | 89,50 | 2 624,78 |
| 01.05.2012 | 89,21 | 2 619,52 |
| 01.06.2012 | 85,48 | 2 773,78 |
| 01.07.2012 | 85,64 | 2 810,45 |
| 01.08.2012 | 85,21 | 2 742,85 |
| 01.09.2012 | 85,85 | 2 772,45 |
| 01.10.2012 | 87,61 | 2 708,58 |
| 01.11.2012 | 87,19 | 2 748,67 |
| 01.12.2012 | 87,47 | 2 716,61 |
| 01.01.2013 | 88,59 | 2 690,63 |
| 01.02.2013 | 89,21 | 2 678,63 |
| 01.03.2013 | 87,61 | 2 682,58 |
| 01.04.2013 | 86,76 | 2 696,73 |
| 01.05.2013 | 87,27 | 2 727,79 |
| 01.06.2013 | 86,72 | 2 739,33 |
| 01.07.2013 | 86,47 | 2 828,23 |
| 01.08.2013 | 86,90 | 2 858,04 |
| 01.09.2013 | 86,77 | 2 884,79 |
| 01.10.2013 | 88,03 | 2 847,35 |
| 01.11.2013 | 88,74 | 2 845,19 |
| 01.12.2013 | 88,06 | 2 922,79 |
| 01.01.2014 | 88,63 | 2 900,64 |
| 01.02.2014 | 87,39 | 3 079,94 |
| 01.03.2014 | 87,25 | 3 145,34 |
| 01.04.2014 | 87,50 | 3 122,51 |
| 01.05.2014 | 87,62 | 3 127,94 |
| 01.06.2014 | 87,32 | 3 033,17 |
| 01.07.2014 | 87,94 | 2 957,38 |
| 01.08.2014 | 86,46 | 3 088,79 |
| 01.09.2014 | 85,31 | 3 150,50 |
| 01.10.2014 | 83,20 | 3 276,79 |
| 01.11.2014 | 81,74 | 3 547,02 |
| 01.12.2014 | 79,97 | 3 994,12 |
| 01.01.2015 | 78,00 | 4 388,09 |
| 01.02.2015 | 74,02 | 5 101,83 |
| 01.03.2015 | 74,92 | 4 590,59 |
| 01.04.2015 | 74,35 | 4 346,94 |
| 01.05.2015 | 76,33 | 3 946,42 |
| 01.06.2015 | 75,86 | 4 018,51 |
| 01.07.2015 | 75,65 | 4 200,53 |
| 01.08.2015 | 74,56 | 4 398,15 |
| 01.09.2015 | 73,76 | 4 903,67 |
| 01.10.2015 | 73,66 | 4 878,80 |
| 01.11.2015 | 73,45 | 4 728,39 |
| 01.12.2015 | 72,22 | 4 784,05 |
| 01.01.2016 | 71,72 | 5 227,18 |
| 01.02.2016 | 71,15 | 5 348,66 |
| 01.03.2016 | 71,34 | 5 356,96 |
| 01.04.2016 | 73,18 | 4 947,33 |
| 01.05.2016 | 73,86 | 4 751,69 |
| 01.06.2016 | 72,99 | 4 823,19 |
| 01.07.2016 | 72,76 | 4 675,36 |
| 01.08.2016 | 72,21 | 4 842,00 |
| 01.09.2016 | 72,71 | 4 719,17 |
| 01.10.2016 | 72,71 | 4 617,54 |
| 01.11.2016 | 72,20 | 4 541,93 |
| 01.12.2016 | 71,26 | 4 628,09 |
| 01.01.2017 | 71,87 | 4 359,16 |
| 01.02.2017 | 72,46 | 4 359,30 |
| 01.03.2017 | 72,60 | 4 206,38 |
| 01.04.2017 | 73,33 | 4 134,27 |
| 01.05.2017 | 73,57 | 4 192,50 |
| 01.06.2017 | 74,18 | 4 192,30 |
see also
Notes
- “The purpose of the NWF”
- International reserves of the Russian Federation | Monthly values at the beginning of the reporting date | Bank of Russia (undefined) . www.cbr.ru. Retrieved July 30, 2016.
- Vadim Visloguzov. The State Duma has pooled its nest eggs. Newspaper “Kommersant” No. 127 of July 15, 2017, p. 2
- Beginning of a working meeting with Assistant to the President Arkady Dvorkovich On the official website of the President of Russia October 13, 2008
Introduction
The relevance of the course work topic I have chosen is due to the fact that in modern conditions, voluntary pension savings of citizens of the Russian Federation are one of the priority areas of state activity. The goals of the National Welfare Fund are to ensure co-financing of voluntary pension savings of citizens of the Russian Federation and to ensure a balanced budget of the Pension Fund of the Russian Federation.
In turn, the purpose of the course work is to study the activities of the National Welfare Fund.
Based on the goal of the work, the main attention was paid to solving the following problems:
Research the objectives and management structure of the fund;
Explore areas of activity
Analyze the profitability of activities.
The object and subject of the study is the activities of the Foundation. The information base for the study consists of reports from the Ministry of Finance of the Russian Federation.
Diagrams and tables are attached to the work.
During the course work, regulations, as well as decrees and orders of the government of the Russian Federation were studied.
Chapter 1. Activities of the fund, its goals. Formation of fund resources and its use.
1.1 The essence of the national wealth fund
The National Welfare Fund is a part of the federal budget funds that are subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.
The fund is intended to become part of a sustainable mechanism for pension provision for citizens of the Russian Federation for the long term
The goals of the National Welfare Fund are to ensure co-financing of voluntary pension savings of citizens of the Russian Federation and to ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation
The National Welfare Fund and the Reserve Fund were formed in February 2008 after the division of the Stabilization Fund. They are formed from oil and gas income and income from money management. Funds from the National Welfare Fund are spent to maintain the stability of the state budget and co-finance the pension savings of citizens. The reserve fund funds are used to finance oil and gas transfers (see Appendix 1). The funds' income is generated by purchasing foreign currency from the Fund's funds and placing it in accounts for the Reserve Fund in foreign currency (US dollars, euros, pounds sterling) with the Central Bank of the Russian Federation. For the use of funds in these accounts, the Central Bank of the Russian Federation pays interest established by the bank account agreement. In addition, the funds' funds may be placed in foreign currency and financial assets denominated in foreign currency, the list of which is determined by the legislation of the Russian Federation.
1.2 Formation and use of the National Welfare Fund.
Oil and gas revenues of the federal budget are generated through:
Tax on the extraction of mineral resources in the form of hydrocarbon raw materials (oil, combustible natural gas from all types of hydrocarbon raw material deposits, gas condensate from all types of hydrocarbon raw material deposits);
Export customs duties on crude oil;
Export customs duties on natural gas;
Export customs duties on goods produced from oil.
The calculation of the volume of oil and gas revenues of the federal budget received in the reporting month, with the exception of oil and gas revenues of the federal budget received in December of the reporting financial year, is carried out by the Ministry of Finance of the Russian Federation monthly, until the 20th day of the month following the reporting one.
The use of oil and gas revenues for the reporting month to finance the oil and gas transfer is carried out:
in full - if the volume of oil and gas revenues for the reporting month does not exceed the difference between the amount of oil and gas transfer for the current financial year, approved by the federal law on the federal budget for the next financial year and planning period, and the volume of oil and gas revenues of the federal budget actually transferred in the current financial year for financial support of oil and gas transfer as of the 1st day of the month following the reporting month;
in an amount equal to the difference between the amount of oil and gas transfer for the current financial year, approved by the federal law on the federal budget and the amount of oil and gas revenues of the federal budget actually transferred in the current financial year to finance the oil and gas transfer as of the 1st day of the month following the reporting month , - if the volume of oil and gas revenues for the reporting month exceeds the amount necessary to achieve the approved amount of oil and gas transfer.
If the approved value of the oil and gas transfer is achieved, oil and gas revenues from the federal budget are subject to use for the formation of the Reserve Fund.
If the specified standard value of the Reserve Fund is reached, oil and gas revenues of the federal budget are subject to use for the formation of the National Welfare Fund.
The use of oil and gas revenues in the current month for the formation of the National Welfare Fund is carried out in an amount equal to the volume of oil and gas revenues of the federal budget actually received in the current financial year, reduced by the approved amount of oil and gas transfer and the volume of oil and gas revenues of the federal budget actually transferred in the current financial year for the formation The Reserve Fund (taking into account the volume of oil and gas revenues subject to transfer to the formation of the Reserve Fund in the current month) and the National Welfare Fund as of the 1st day of the month following the reporting month.
The calculation of the volume of oil and gas revenues for December and the calculation of the volume of oil and gas revenues for December used for the formation of the Reserve Fund or for the formation of the National Welfare Fund is carried out by the Ministry of Finance of the Russian Federation until January 25 of the year following the reporting year.
A certain part of these oil and gas revenues in the form of oil and gas transfers is annually used to finance federal budget expenses. The amount of oil and gas transfer is approved by the federal law on the federal budget for the next financial year and planning period in an absolute amount, calculated as 3.7% of the volume of gross domestic product projected for the corresponding year, specified in the federal law on the federal budget for the next financial year and planning period.
After the formation of the oil and gas transfer in full, oil and gas revenues go to the Reserve Fund.
The standard value of the Reserve Fund is approved by the federal law on the federal budget for the next financial year and planning period in an absolute amount determined on the basis of 10% of the volume of gross domestic product projected for the corresponding year.
Oil and gas revenues are sent to the National Welfare Fund after filling the Reserve Fund to the amount specified above. Another source of formation of the National Welfare Fund is income from the management of its funds.
From January 1, 2010 to January 1, 2014, the standard value of the Reserve Fund is not determined, oil and gas revenues of the federal budget are not used to financially support oil and gas transfers and for the formation of the Reserve Fund and the National Welfare Fund, but are directed to financially support federal budget expenditures.
Funds from the National Welfare Fund can only be used to co-finance voluntary pension savings of Russian citizens and ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.
The amount of funds from the National Welfare Fund allocated for these purposes is established by the federal law on the federal budget for the next year and planning period. The procedure for co-financing voluntary pension savings of citizens of the Russian Federation is defined in the Federal Law of April 30, 2008 No. 56-FZ “On additional insurance contributions for the funded part of the labor pension and state support for the formation of pension savings.”
Another source of formation of the National Welfare Fund is income from the management of its funds.
From January 1, 2010 to February 1, 2014, income from the management of funds of the National Welfare Fund is not credited to the Fund, but is directed to financial support for federal budget expenditures.
Funds from oil and gas revenues of the federal budget, the Reserve Fund and the National Welfare Fund are accounted for in separate accounts for the accounting of federal budget funds opened by the Federal Treasury in the Central Bank of the Russian Federation.
From January 1, 2010 to January 1, 2014, separate accounting of oil and gas revenues from the federal budget is not carried out.
Calculations and transfers of funds in connection with the formation and use of oil and gas revenues of the federal budget, oil and gas transfers, funds of the Reserve Fund and the National Welfare Fund are carried out by the Ministry of Finance of the Russian Federation in the manner established by the Government of the Russian Federation.
From January 1, 2010 to January 1, 2014, the procedure for making settlements and transfers of funds in connection with the formation and use of oil and gas revenues of the federal budget, oil and gas transfers, funds of the Reserve Fund and the National Welfare Fund was suspended.
Accounting for transactions with oil and gas revenues of the federal budget, funds from the Reserve Fund and the National Welfare Fund is carried out in the manner established for accounting for transactions with funds from the federal budget.
Funds from the National Welfare Fund can be used to co-finance voluntary pension savings of Russian citizens and ensure balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation. The amount of funds from the National Welfare Fund allocated for these purposes is established by the federal law on the federal budget for the next year and planning period.
The procedure for co-financing voluntary pension savings of citizens of the Russian Federation is defined in the Federal Law of April 30, 2008 No. 56-FZ “On additional insurance contributions for the funded part of the labor pension and state support for the formation of pension savings.”
The Government of the Russian Federation has the right, until January 1, 2014, without amending the federal law on the federal budget, to direct funds from the Fund to make payments that reduce debt obligations, reduce borrowing and ensure the balance of the federal budget, including in excess of the total volume of federal budget expenditures in the event and within the limits of increasing budgetary allocations of the federal budget for the provision of interbudgetary transfers in order to ensure the balance of the budgets of state extra-budgetary funds of the Russian Federation.
Funds of the National Welfare Fund, subject to use in accordance with the federal law on the federal budget for co-financing voluntary pension savings of citizens of the Russian Federation, are transferred by the Federal Treasury on the basis of instructions from the Ministry of Finance of the Russian Federation from the account for accounting funds of the National Welfare Fund to the account for accounting for funds of the federal budget.
Subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.
Formation of the fund
The National Welfare Fund is formed through:
- oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
- income from managing funds of the National Welfare Fund.
Accommodation
On April 21, 2010, the Chairman of the Government of the Russian Federation V.V. Putin signed a decree of the Russian Government that until February 1, 2012 the Ministry of Finance will not be obliged to publish on the Internet information about the volumes of funds received into the accounts of the Reserve Fund and the National Welfare Fund, about where they are located and how they are used. Some economists believe that the refusal to publish this information is due to the rapid decline in the funds of both funds. Currently, the Ministry of Finance website contains information about the amount of funds in each of the funds.
Dynamics of changes
| date | In billion US dollars | In billion rubles |
|---|---|---|
| 01.02.2008 | 32,00 | 783,31 |
| 01.03.2008 | 32,22 | 777,03 |
| 01.04.2008 | 32,90 | 773,57 |
| 01.05.2008 | 32,72 | 773,82 |
| 01.06.2008 | 32,60 | 773,93 |
| 01.07.2008 | 32,85 | 770,56 |
| 01.08.2008 | 32,69 | 766,48 |
| 01.09.2008 | 31,92 | 784,51 |
| 01.10.2008 | 48,68 | 1 228,88 |
| 01.11.2008 | 62,82 | 1 667,48 |
| 01.12.2008 | 76,38 | 2 108,46 |
| 01.01.2009 | 87,97 | 2 584,49 |
| 01.02.2009 | 84,47 | 2 991,50 |
| 01.03.2009 | 83,86 | 2 995,51 |
| 01.04.2009 | 85,71 | 2 915,21 |
| 01.05.2009 | 86,30 | 2 869,44 |
| 01.06.2009 | 89,86 | 2 784,14 |
| 01.07.2009 | 89,93 | 2 813,94 |
| 01.08.2009 | 90,02 | 2 858,70 |
| 01.09.2009 | 90,69 | 2 863,08 |
| 01.10.2009 | 91,86 | 2 764,37 |
| 01.11.2009 | 93,38 | 2 712,56 |
| 01.12.2009 | 92,89 | 2 769,84 |
| 01.01.2010 | 91,56 | 2 769,02 |
| 01.02.2010 | 90,63 | 2 757,89 |
| 01.03.2010 | 89,63 | 2 684,21 |
| 01.04.2010 | 89,58 | 2 630,27 |
| 01.05.2010 | 88,83 | 2 601,62 |
| 01.06.2010 | 85,80 | 2 616,54 |
| 01.07.2010 | 85,47 | 2 666,41 |
| 01.08.2010 | 88,24 | 2 663,76 |
| 01.09.2010 | 87,12 | 2 671,54 |
| 01.10.2010 | 89,54 | 2 722,15 |
| 01.11.2010 | 90,08 | 2 772,80 |
| 01.12.2010 | 88,22 | 2 761,96 |
| 01.01.2011 | 88,44 | 2 695,52 |
| 01.02.2011 | 90,15 | 2 674,53 |
| 01.03.2011 | 90,94 | 2 631,98 |
| 01.04.2011 | 91,80 | 2 609,66 |
| 01.05.2011 | 94,34 | 2 594,58 |
| 01.06.2011 | 92,54 | 2 597,55 |
| 01.07.2011 | 92,61 | 2 600,00 |
| 01.08.2011 | 92,70 | 2 566,04 |
| 01.09.2011 | 92,63 | 2 673,05 |
| 01.10.2011 | 88,69 | 2 827,10 |
| 01.11.2011 | 91,19 | 2 726,42 |
| 01.12.2011 | 88,26 | 2 764,40 |
| 01.01.2012 | 86,79 | 2 794,43 |
| 01.02.2012 | 88,33 | 2 682,21 |
| 01.03.2012 | 89,84 | 2 600,88 |
| 01.04.2012 | 89,50 | 2 624,78 |
| 01.05.2012 | 89,21 | 2 619,52 |
| 01.06.2012 | 85,48 | 2 773,78 |
| 01.07.2012 | 85,64 | 2 810,45 |
| 01.08.2012 | 85,21 | 2 742,85 |
| 01.09.2012 | 85,85 | 2 772,45 |
| 01.10.2012 | 87,61 | 2 708,58 |
| 01.11.2012 | 87,19 | 2 748,67 |
| 01.12.2012 | 87,47 | 2 716,61 |
see also
- Budget Code of the Russian Federation
Notes
Links
- Dynamics of changes in the National Welfare Fund on the website of the Russian Ministry of Finance
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Subject to separate accounting and management in order to ensure co-financing of voluntary pension savings of citizens of the Russian Federation, as well as ensuring balance (covering the deficit) of the budget of the Pension Fund of the Russian Federation.
Formation of the fund
The National Welfare Fund is formed through:
- oil and gas revenues of the federal budget in an amount exceeding the volume of oil and gas transfers approved for the corresponding financial year, if the accumulated volume of the Reserve Fund reaches (exceeds) its standard value;
- income from managing funds of the National Welfare Fund.
Accommodation
On April 21, 2010, the Chairman of the Government of the Russian Federation V.V. Putin signed a decree of the Russian Government that until February 1, 2012 the Ministry of Finance will not be obliged to publish on the Internet information about the volumes of funds received into the accounts of the Reserve Fund and the National Welfare Fund, about where they are located and how they are used. Some economists believe that the refusal to publish this information is due to the rapid decline in the funds of both funds. Currently, the Ministry of Finance website contains information about the amount of funds in each of the funds.
Dynamics of changes
| date | In billion US dollars | In billion rubles |
|---|---|---|
| 01.02.2008 | 32,00 | 783,31 |
| 01.03.2008 | 32,22 | 777,03 |
| 01.04.2008 | 32,90 | 773,57 |
| 01.05.2008 | 32,72 | 773,82 |
| 01.06.2008 | 32,60 | 773,93 |
| 01.07.2008 | 32,85 | 770,56 |
| 01.08.2008 | 32,69 | 766,48 |
| 01.09.2008 | 31,92 | 784,51 |
| 01.10.2008 | 48,68 | 1 228,88 |
| 01.11.2008 | 62,82 | 1 667,48 |
| 01.12.2008 | 76,38 | 2 108,46 |
| 01.01.2009 | 87,97 | 2 584,49 |
| 01.02.2009 | 84,47 | 2 991,50 |
| 01.03.2009 | 83,86 | 2 995,51 |
| 01.04.2009 | 85,71 | 2 915,21 |
| 01.05.2009 | 86,30 | 2 869,44 |
| 01.06.2009 | 89,86 | 2 784,14 |
| 01.07.2009 | 89,93 | 2 813,94 |
| 01.08.2009 | 90,02 | 2 858,70 |
| 01.09.2009 | 90,69 | 2 863,08 |
| 01.10.2009 | 91,86 | 2 764,37 |
| 01.11.2009 | 93,38 | 2 712,56 |
| 01.12.2009 | 92,89 | 2 769,84 |
| 01.01.2010 | 91,56 | 2 769,02 |
| 01.02.2010 | 90,63 | 2 757,89 |
| 01.03.2010 | 89,63 | 2 684,21 |
| 01.04.2010 | 89,58 | 2 630,27 |
| 01.05.2010 | 88,83 | 2 601,62 |
| 01.06.2010 | 85,80 | 2 616,54 |
| 01.07.2010 | 85,47 | 2 666,41 |
| 01.08.2010 | 88,24 | 2 663,76 |
| 01.09.2010 | 87,12 | 2 671,54 |
| 01.10.2010 | 89,54 | 2 722,15 |
| 01.11.2010 | 90,08 | 2 772,80 |
| 01.12.2010 | 88,22 | 2 761,96 |
| 01.01.2011 | 88,44 | 2 695,52 |
| 01.02.2011 | 90,15 | 2 674,53 |
| 01.03.2011 | 90,94 | 2 631,98 |
| 01.04.2011 | 91,80 | 2 609,66 |
| 01.05.2011 | 94,34 | 2 594,58 |
| 01.06.2011 | 92,54 | 2 597,55 |
| 01.07.2011 | 92,61 | 2 600,00 |
| 01.08.2011 | 92,70 | 2 566,04 |
| 01.09.2011 | 92,63 | 2 673,05 |
| 01.10.2011 | 88,69 | 2 827,10 |
| 01.11.2011 | 91,19 | 2 726,42 |
| 01.12.2011 | 88,26 | 2 764,40 |
| 01.01.2012 | 86,79 | 2 794,43 |
| 01.02.2012 | 88,33 | 2 682,21 |
| 01.03.2012 | 89,84 | 2 600,88 |
| 01.04.2012 | 89,50 | 2 624,78 |
| 01.05.2012 | 89,21 | 2 619,52 |
| 01.06.2012 | 85,48 | 2 773,78 |
| 01.07.2012 | 85,64 | 2 810,45 |
| 01.08.2012 | 85,21 | 2 742,85 |
| 01.09.2012 | 85,85 | 2 772,45 |
| 01.10.2012 | 87,61 | 2 708,58 |
| 01.11.2012 | 87,19 | 2 748,67 |
| 01.12.2012 | 87,47 | 2 716,61 |
see also
- Budget Code of the Russian Federation
Notes
Links
- Dynamics of changes in the National Welfare Fund on the website of the Russian Ministry of Finance
Wikimedia Foundation. 2010.
- Robertson, David (conductor)
- Agdash district
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Funds from the National Welfare Fund are part of the federal budget subject to separate accounting. They are aimed at ensuring co-financing of pension (voluntary) savings of the population. They also help maintain a balanced budget for the Pension Fund. Next, we will analyze the National Welfare Fund.
General information
The financial institution in question was formed on February 1, 2008 after the existing budget stabilization structure was divided into the Reserve Fund and the National Welfare Fund of the Russian Federation. The National Welfare Fund exists at the expense of oil and gas profits from the federal budget. Since 2008, they have been accounted for separately from other income. In addition, the formation of the National Welfare Fund is carried out at the expense of profits received from the turnover of its finances.
Oil and gas revenues
The National Welfare Fund of Russia receives profits from:
- Taxes on the extraction of mineral resources presented as hydrocarbon raw materials. It includes, in particular, flammable natural gas and gas condensate, oil from all types of fields.
- Customs export duties on raw materials and processed products.
Some of the above revenues in the form of oil and gas transfers are used annually to finance federal budget expenses. The amount of revenue is established by the relevant Federal Law for the planning period and the next year. The transfer volume is reflected as a percentage of the projected GDP:
- In 2008 - 6.1.
- In 2009 - 5.5.
- In 2010 - 4.5.
- In 2011 and beyond - 3.7.
After reaching the full volume of the transfer, income is sent to the Reserve Fund and the National Welfare Fund. The standard value of the first is established by the Federal Law on the federal budget for the planned period and the upcoming financial year in absolute terms. It is determined based on the projected ten percent of GDP for the corresponding period. The Reserve Fund and the National Welfare Fund are replenished consistently. First, the standard size of the first is achieved, and then infusions are made into the National Welfare Fund. 
Accounting
Oil and gas revenues received by the Russian National Welfare Fund are recorded in separate budget accounts. They are opened at the Central Bank by the Federal Treasury. Transfers and calculations relating to the creation and use of oil and gas revenues are carried out by the Ministry of Finance. The procedure for performing these operations is established by the Government.
Management of the National Welfare Fund
Income from this activity acts as another financial source. The objectives of administration are to ensure the safety and stable level of profit from placement in the long term. Management of the Fund allows for the possibility of negative financial results in the short term. Administration is carried out by the Ministry of Finance in accordance with the procedure established at the government level. Certain powers in this activity belong to the Central Bank. When attracting specialized financial companies to perform certain functions related to the management of the Fund, this process, as well as the requirements for the entities, are established by the Government of the country.
Administration methods
The resources that make up the Russian National Welfare Fund are controlled and coordinated as follows:
The Ministry of Finance coordinates and uses the National Welfare Fund according to the first method. The placement of finances in foreign currency accounts of the Central Bank is carried out in accordance with the procedure for calculations and crediting of interest established on accounting accounts approved by the Ministry of Finance. The bank makes payments on the balances equivalent to the profitability of the indices. The latter are formed from assets intended to accommodate finances that make up the National Welfare Fund. The government has established maximum shares of permitted assets in the total value of the National Welfare Fund. To improve coordination, the Ministry of Finance is authorized to set standard indicators within the limits approved at the Federal level.
Asset requirements
Finances that make up the volume of the National Wealth Fund can be invested in debt obligations as securities of foreign states, foreign agencies and central banks of such countries as:
The following requirements are established for debt obligations:
- Foreign issuers must have a long-term credit rating of not lower than “AA-”, in accordance with the classification of Standard and Poor’s or Fitch Ratings agencies, or not lower than “Aa3” according to the distinction of Moody’s Investor Service. If a subject is assigned different positions, then the smallest of them is considered indicative.
- The rating of Russian issuers must be no less than “BBB-” or “Baa3” according to the classifications of the above agencies, respectively. If the subject is assigned different positions, then the smallest of them will also be considered indicative.
- The time frame within which debt obligations must be repaid is fixed. The terms of circulation and issue do not imply the issuer's right to make an early redemption.
- The standards for maximum and minimum periods before repayment of obligations established by the Ministry of Finance are considered mandatory.
- The coupon rate that is paid on the corresponding debts, as well as the denominations, are fixed.
- The volume of issued obligations that are in circulation is at least 1 billion rubles, 1 billion dollars, 1 billion euros and 0.5 billion pounds. for the corresponding accounts.
- The denomination is fixed. It is expressed in euros, dollars, rubles or f. sterling. Payments are made in the nominal currency.
Subjects
International financial organizations whose liabilities may include assets constituting the National Wealth Fund are banks:
- Asian (ABD).
- Developments under the CE.
- European investment.
- Inter-American (IADB).
- European (reconstruction and development).
- Northern investment.
- International (reconstruction and development).
The International Financial Corporation (IFC) is also included in the list of entities. 
Requirements for securities
Shares of legal entities and participation shares (shares) of investment funds into which funds from the National Welfare Fund can be placed must meet certain conditions. In particular:
- Securities of organizations must be included in the quotation list of at least one exchange.
- For shares of foreign issuers, it is necessary to be included in the lists used in calculating the RTS and MICEX indices.
- Investment funds that issue participation shares must contain only permitted assets.
Placement on deposits
To implement this, the following conditions must be met:
- The credit company or bank must have a long-term credit rating of at least "AA-" according to the classification of the agencies "Standard and Poor's" or "Fitch Ratings" or "Aa3" according to the list of "Moody's Investor Service". If an organization is at different levels according to these systems, then the lowest is considered indicative.
- The standards for the maximum and minimum period for placement of assets forming the National Welfare Fund, approved by the Ministry of Finance, are mandatory.
Placement in the state corporation "Vnesheconombank"
To make deposits, the following requirements must be met:
1. Placement in Russian and foreign approved currencies (dollars, pounds sterling, euros) is allowed.
2. The maximum permissible total amount within which assets can be held on deposits in rubles is 655 billion rubles. Wherein:
Funds in the amount of up to 175 billion can be placed in accounts, the terms, amounts and other essential conditions for which are established by the Ministry of Finance;
Up to 410 billion can be held on deposits in the manner approved by the Government, subject to the following conditions:
b) at a rate of 8.5% until December 31. 2010 (inclusive). 
Assets in the amount of up to 30 billion can be placed at a rate of 8.5% until December 31, 2017 in the manner established by the Government;
Interest payments are made quarterly throughout the entire term;
The possibility of early repayment of funds is allowed with the consent of the Vnesheconombank state corporation; interest is paid for the actual period the finances are on deposit.
3. The terms and amounts of placement are determined by the Ministry of Finance in accordance with the specified requirements; the transfer is made by the Federal Treasury, in accordance with the decision of the Finance Ministry.
Important point
The assets that form the National Welfare Fund can be used exclusively to co-finance voluntary pension savings of the population and cover the deficit (ensuring balance) of the Pension Fund budget. The procedure for making the distribution is established by the relevant Federal Law No. 56. This Law regulates insurance (additional) contributions to the funded share of the working pension and state support for the formation of savings. The volume of the National Welfare Fund - the amount of assets allocated for the above purposes - is established by the Federal Law on the Federal Law. budget for the planning period and reporting year according to the BC.
Transaction reporting
The Ministry of Finance carries out monthly publication of information regarding the receipt and use of available oil and gas revenues, the value of the assets of the National Welfare Fund at the beginning of the month. The documents also provide information regarding financial transfers, placement and subsequent distribution during the reporting period. The Ministry of Finance also provides annual and quarterly reports on the receipt and use of received oil and gas revenues, the formation and turnover of assets of the National Fund. Welfare. This information is included in the acts on the results of the implementation of federal budget items. In addition, the Ministry of Finance provides annual and quarterly reports on the management of funds included in the Fund. The government of the country, as part of the acts on the results of the implementation of articles of the federal budget, submits to the State Duma of the Federal Assembly and the Council of Federation information on the receipts and use of oil and gas profits, the creation and turnover of assets of the National Welfare Fund, as well as on the coordination of their distribution. Reporting is provided once a year and quarterly. 
Operations audit
In the process of implementing adopted and approved articles of the federal budget, control measures are carried out. The Accounts Chamber is authorized to carry them out. Control is aimed at checking the creation, turnover, and management of assets that make up the National Bank Fund. The Accounts Chamber submits an operational quarterly report to the Federal Assembly. It provides the results of the execution of budget items, containing information on the receipt of income and expenses incurred, including, among other things, data on the replenishment, turnover and management of funds of the National Bank Fund.
Reserve fund
It is a financial institution whose assets are put into circulation to stabilize the budget during a decline in revenues or for government needs in the long term. In addition to economic functions, the Reserve Fund also performs political tasks. In particular, the presence of such assets prevents rapid increases in government spending. Typically, such costs cannot be reduced quickly immediately after a drop in income. In unfavorable periods, such a situation can provoke a budget deficit, failure to fulfill social obligations, and default. The reserve background acts as a macroeconomic tool to maintain the level of aggregate demand and long-term economic growth. The state restrains consumption during periods of rapid progress. This is necessary to reduce inflation. At the same time, when purchasing activity falls, the state (during periods of stagnation) stimulates demand. In such years, the government may spend more money than it receives in taxes. This increases total national expenditure and allows companies not to reduce production rates or lay off workers. During inflation, the government reduces costs to prevent prices from rising. The difference in expenses and income of the total budget can be directed to the Reserve Fund.
Main functions
The reserve fund is a separate part of the finances of budgets of all levels, which took the form of target assets. They are designed to ensure uninterrupted provision of costs, both previously foreseen and unforeseen, which arise suddenly and are of an accidental or emergency nature. The funds that make up the Reserve Fund may be spent on emergency recovery measures related to eliminating the consequences of man-made disasters, natural disasters and other emergencies that occurred in the current financial period. This structure implements two main functions:
- Assets can be spent to cover the deficit of state budget items in unfavorable conditions.
- During periods of high prices for raw materials, the Fund's funds help accumulate excess export earnings and prevent the development of the Dutch economic disease.
The procedure according to which assets are included in circulation is established by government regulations. Additional clarifications on the requirements for spending reserve funds may be provided by orders of executive bodies of constituent entities or local governments. The amount of accumulated assets cannot exceed 3% of approved federal budget expenditures.