The quality of state financial control can be improved

27 may 2014

The Conference on “State (regional) financial control in the Russian Federation. Theory, experience, development perspectives” took place on 22-23 May 2014 in Kazan. During this event, experts from the Analytical Center Elena Razumova and Marina Labozina, pointed out the possibilities for increasing the quality of state financial control.

According to Deputy Director of the Department for Expert Analytics Elena Razumova, “international practice is to keep the control over state spending separated from legislative and executive public authorities. Contrary to that, in Russia the state financial control is in the solely hands of the executive branch of the government which is the cause for delays in project drafting and the decision making process regarding state spending optimization”. In expert’s opinion, the control in Russia will greatly benefit from involving independent auditors from business community, as it is practiced abroad.

The Director of the Department for Legal Expertize Marina Labozina talked about the opportunity for expanding the violations classifier within the budgetary legislation. The expert stated that this will only achieve a more detailed list of violations without solving the main problem which is the incorrect qualification of infringements discovered by inspectors during their checks. And this will also leave unsolved the issue of clear separations of functions and power between authorities that execute state financial control. “The problems we are discussing can be solved by strengthening the preliminary state financial control”, considers Marina Labozina.

The Conference was devoted to the exchange of scientific results, research and practical experience in solving the current financial control issues. The participants discussed the development of state financial control in procurement of goods and services for the state and municipal needs along with legal support in financial control and way of its improvement.