The 1993 Budget

Abstract

Passage of the annual budget is one of the most important tasks that states face in any given year, and is a useful test of a parliament’s legislative power. In the aftermath of the Soviet collapse, budgetary policy played a central role in the Russian government’s programme of economic reform. The goal of government reformers to balance the budget was a key element of their monetary policy. However, their capacity to impose discipline on the financial system was limited. Budget rules gave the Supreme Soviet a wide remit to legislate on the application and scope of budget funds, and the reformers did not have the backing of a reliable parliamentary majority. Without the requisite budgetary control and political support, the government’s policy was vulnerable.