International Principles for Good Governance of Public Finance. New Initiative of Russia

Due to globalization of the economy good governance of public finance is of fundamental importance for all countries to ensure the sustainability of national budget and financial systems, as well as mutual financial security and sustainable economic growth. This article considers the key issues involved in and the work done up to now to spread and apply best practice in management of public finances. Article also highlights the need for further work and the main areas for continuation of work with the aim of improving mutual financial security and creating more favorable conditions for sustainable growth worldwide. Taking account of the collective experience gained in public finance in recent years, including the results of budget reforms, this article presents for discussion generally accepted, dynamic and flexible principles, standards and criteria for good governance of public finance.The article examines the following basic list of principles (or components) of good governance of public finance:fiscal transparency;stability and long-term sustainability of budgets;an effective and equitable system of inter-budgetary relationships;an integrated budget and budget process;medium-term financial planning;result-oriented budgeting; andeffective financial control, reporting and monitoring.The article stresses that in the last 15-20 years approaches to all these issues have received much attention both nationally and internationally. Far- reaching reforms in methods of budget management have been undertaken in a large number of countries, including the developed and developing ones as well as countries in transition.