The boundaries of public financial control in the Russian Federation: towards the formulation of the problem

Goncharov Vitalii Viktorovich PhD in Law Associate Professor; Department of Civil Procedure and International Law; Kuban State University 350040, Russia, Krasnodar Territory, Krasnodar, Stavropol str., 149 niipgergo2009@mail.ru Other publications by this author     Malinovskii Oleg Nikolaevich ORCID: 0000-0001-6541-9046 PhD in Law Associate Professor; Department of Civil Procedure and International Law; Kuban State University 350040, Russia, Krasnodar Territory, Krasnodar, Stavropol str., 149 niipgergo2009@mail.ru Other publications by this author

Petrenko Elena Gennad'evna PhD in Law Associate Professor of the Department of State and International Law, Kuban State Agrarian University named after I. T. Trubilin 350044, Russia, Krasnodar Territory, Krasnodar, Kalinina str., 13 niipgergo2009@mail.ru Other publications by this author

Introduction.

The issues of organization and implementation of public control in the Russian Federation are widely studied in the works of M. P. Bubliy, ^{[2, pp. 14-18]} A. A. Borisova, ^{[3, pp. 81-90]} A. D. Malyutin, ^{[8, pp. 194-196]} V. V. Grib, ^{[12, pp. 38-44; 15, pp. 35-41; 17, pp. 42-46]} F. I. Dolgikh, ^{[19, pp. 13-18]} A. A. Karmolitskiy, ^{[20, pp. 37-48]} I. V. Kovaleva, ^{[21, pp. 121-125]} L. A. Latysheva, ^{[22, pp. 67-72]} T. N. Mikheeva, ^{[23, pp. 73-78]} V. V. Nagaitseva, ^{[24, pp. 113-129]} O. V. Pishchulina, ^{[27, pp. 108-110]} I. V. Teplyashina, ^{[30, pp. 8-12]} A. Yu. Toporova, ^{[31, pp. 77-80]} M. S. Khachatryan, ^{[32, pp. 24-30]} I. M. Yapryntseva, ^{[34, pp. 34-38]} as well as a number of other authors. Great attention is paid in the works of S. Y. Poyarkov, ^{[1, pp. 86-98; 28, pp. 60-83]} O. V. Grishchenko, ^{[5, pp. 21-29]} A. A. Borisova, ^{[6, pp. 21-32; 26, pp. 74-85]} V. V. Grib ^{[13, pp. 20-26; 14, pp. 2-5]} A. A. Pukhova, ^{[29, pp. 90-98]} Z. S. Yakupova, ^{[33, pp. 550-556]} is devoted to the problems of functioning of public control in the field of financial legal relations. However, the issue of defining the boundaries of public financial control in the Russian Federation continues to be debatable and poorly developed in the Russian scientific and educational literature, which determines the choice of the topic of this scientific research, the purpose of which is not only the formalization and analysis of the main problems that hinder the definition of optimal boundaries of public control in the financial sphere, but also the development and justification of a system measures to resolve these problems. The main scientific objectives of this study are: a) substantiation of the role and importance of the institute of public control in the system of legal guarantees for the realization of the rights, freedoms and legitimate interests of individuals and legal entities in Russia; b) justification of the need to pose a problem to the scientific community regarding the definition of the boundaries of public control in the financial sphere; c) study of risks associated with insufficient and superficial implementation of public control in this area, as well as with the excessive influence of subjects of public control on the activities of the above-mentioned objects; d) formalization and analysis of the main problems that hinder the definition of the boundaries of public financial control; e) development and justification of a system of measures to resolve these problems.

Methods and methodological basis of the research.

The methodological basis of the research consists of several scientific methods, in particular: formal-logical; historical-legal; comparative-legal; statistical; sociological; method of studying specific legal situations. The empirical basis of the study was: The Constitution of Russia; norms of international and national legislation; materials of judicial practice, practice of work of subjects of public control; sources of scientific legal doctrine devoted to the analysis of the organization and implementation of public control in the Russian Federation.

The main text.

The preservation and development of any modern democratic state directly depends on the level of support for the apparatus of its public authority from the population of the country, whose rights, freedoms and legitimate interests act as the most important value and purpose of the functioning of the entire mechanism of public authority. The Russian Federation is no exception. Its 1993 Constitution consolidated the status of the multinational people as the bearer of sovereignty and the only source of power in the country, exercising its powers through a system of direct and indirect forms of democracy. At the same time, human and civil rights and freedoms in Russia act as the highest value of the state, and their implementation, protection and protection are devoted to the activities of any public authorities and local governments.

However, the system of human and civil rights, freedoms and legitimate interests in the Russian Federation needs a system of legal guarantees that ensure their implementation, protection and protection. Without them, rights, freedoms and legitimate interests are declarative rather than binding. The specified system of legal guarantees includes: a system of checks and balances that does not allow any public authority to usurp the fullness of public power in the country; a constitutional prohibition, under threat of legal liability, to seize and retain power outside the procedures provided for by the Constitution of the country and current legislation; a system of constitutional control and supervision bodies, the most important of which the Institute of the President of Russia acts (as the guarantor of the Constitution, human and civil rights and freedoms), the Constitutional Court of the Russian Federation (the highest, and now the only, body of constitutional justice in Russia); a system of numerous civil society institutions, the key of which is the institute of public control, through which Russian citizens have the opportunity to exercise control control over the activities, acts and decisions of public authorities, state and municipal organizations, and other bodies and organizations endowed by federal laws with the right to exercise certain public powers.

Public control in the Russian Federation has been incorporated at the legislative level relatively recently (in particular, with the adoption of the Federal Law "On the Public Chamber of the Russian Federation"). But it was preceded by a long-term and generally positive history of the functioning of the institute of people's control of power in the USSR and the RSFSR (as its union republic). This institution of civil society, as we noted in previous studies, ^{[9, pp. 127-130; 10, pp. 199-202]} was distinguished by significant effectiveness, especially in terms of monitoring the activities of enterprises, institutions and organizations (for example, the fight against theft of socialist property, violations of labor legislation, etc.) was effectively carried out. Effect, for example, in the form of established embezzlement of socialist property, was estimated at billions of Soviet rubles.

At the moment, public control in Russia is carried out in relation to various categories of objects, covering various spheres of public administration, as well as types of public relations.

Finance is one of the key types of public relations and areas of public administration covered by public control.

What is so important about financial activity in the Russian Federation?

Firstly, after the collapse of the USSR, our country switched to a free market economy. All business entities in Russia are equal in accordance with the country's Constitution and civil legislation. Private business entities (in particular, commercial organizations) conduct their business activities at their own risk, while acting as payers of taxes, excise taxes, fines, penalties and other mandatory payments to budgets and public extra-budgetary funds of various levels. In this regard, the sphere of financial relations, which any legal entity participates in, plays an important role in ensuring their preservation and development.

Secondly, the activities of public authorities, as well as the functioning of numerous state and municipal organizations (in particular, state and municipal institutions, enterprises), are impossible without appropriate financing from budgets or extra-budgetary public funds of any level, or their own funds received as a result of their economic activities. At the same time, these structures also act as payers of mandatory payments to budgets and public extra-budgetary funds of various levels. These public relations are regulated by financial legislation and are the most important type of public relations for these entities.

Thirdly, individuals also act as the most important participants in financial relations (for example, being payers of mandatory payments to budgets and public extra-budgetary funds of various levels).

Fourth, financial relations also cover the sphere of interaction between the federal center, regions, and municipalities, for example, when providing subventions, subsidies, grants, as well as other forms of financial support from one subject of these legal relations to another.

Fifth, the Russian Federation is an active participant in international financial relations with other States, international governmental and non-governmental organizations, as well as with individuals and legal entities.

Thus, the sphere of financial relations is a key type of legal relations, without the optimal functioning of which it is impossible to preserve and develop the Russian Federation.

It seems obvious that financial relations, as well as the activities of public authorities, state and municipal organizations, and other entities endowed by law with the right to exercise certain public powers in the financial sphere, are the most important type of objects of public control.

In this regard, the most important type of public control is public financial control, which should be understood as the organization and conduct of public control measures for financial and related other types of business entities, including public authorities, state and municipal organizations, other bodies and organizations exercising certain public powers on the basis of federal laws.

However, public financial control must be carried out within certain limits. What is the reason for this?

Firstly, the financial activities of any public authority, as well as any private business entity (legal entity or individual), contain a fairly large amount of information constituting a commercial and other legally protected secret. In this regard, it seems that the activities of subjects of public financial control should not violate the legislation on commercial and other legally protected secrets.

Secondly, public financial control must be justified, that is, carried out on certain legal grounds, or, at least, not contradict the norms of current legislation. Moreover, Federal Law No. 212-FZ dated 07/21/2014 "On the Basics of Public Control in the Russian Federation" in Article 6 explicitly prohibited unjustified interference of subjects of public control in the activities of objects of public control, as well as their unlawful influence on these bodies and organizations (in the form of a separate principle of public control).

At the same time, the above-mentioned Federal Law in this article explicitly prohibited interference in the sphere of activity of political parties (for subjects of public control). This formulation, in our opinion, requires correction and clarification. What is meant by the sphere of activity of political parties? A number of authors have previously rightly noted that not the entire sphere of activity of political parties should be removed from public control. ^{[19, pp. 13-18]} In particular, we believe, on the contrary, the financial activities of political parties should be the object of close attention of civil society. After all, for example, political parties represented in the State Duma receive budget funding! And the process of spending these funds should be subject to careful control not only by the control bodies of public authorities, but also by subjects of public control. This requires amendments to both the above-mentioned Federal Law and the legislation on political parties (for example, these normative legal acts should enshrine the right of subjects of public control to monitor the financial activities of political parties, at least in terms of spending money received from the budget).

Thirdly, public financial control should not create obstacles both for the economic activities of the inspected facilities as a whole and for their financial activities.

However, public financial control should not violate financial relations that do not contradict current legislation.

This is the reason for the need to introduce the concept of "boundaries of public control" into terminology in the legislation on public control.

What should be understood by them?

The boundaries of public control, in our opinion, are the spatial, temporal and functional limits of the influence of subjects of public control on its objects in order to control their activities, acts and decisions.

The boundaries of public financial control, in turn, pursue two equivalent goals.

On the one hand, by defining the optimal boundaries of public financial control, the risks of unjustified interference of subjects of public control in the activities of its objects are minimized.

On the other hand, any limits in the organization and implementation of public financial control measures should not create obstacles to achieving the goals and objectives of this institution of public control, which are discussed in legislation (in particular, in Article 5 of Federal Law No. 212-FZ dated 07/21/2014 "On the Basics of Public Control in the Russian Federation").

Due to this, public financial control will be carried out in an optimally efficient manner.

However, determining the optimal boundaries of public financial control is hampered by a number of problems, among which the following can be distinguished:

Firstly, the biggest problem is the fact that the institution of public control in the Russian Federation is not enshrined in the Constitution of the country. As a number of authors rightly point out, this significantly reduces the role and importance of this institution of civil society in the eyes of both ordinary citizens and representatives of public authorities. ^{[16, pp. 33-44]} The solution to this problem is seen, in our opinion, in supplementing the text of the Constitution of Russia with separate articles devoted to the institute of public control, in which it is necessary to consolidate its principles, goals and objectives, the list of objects and subjects (or identifying features), the mechanism of interaction with public authorities.

Secondly, in our opinion, the fact that the legislation on public control, as we have already noted in previous studies, ^{[7, pp. 186-188]} does not fix the concept of "public control system", which does not allow determining the limits of its implementation (spatial, in a circle of objects, functional). This gives rise, in particular, as a number of authors indicate, to discussions regarding the limits of public control over certain objects. ^{[18, pp. 34-36]} The solution to this problem is possible by consolidating in Federal Law No. 212-FZ dated 07/21/2014 "On the basics of Public Control in the Russian Federation" the concept of a public control system, under which should be understood, on the one hand, as a set of its subjects created and operating in a certain territory and in relation to a certain range of objects of public control, the main or primary purpose of which is the organization and implementation of public control measures, and on the other hand, normative legal acts through which the legal foundations of the organization and activities of these subjects, as well as the mechanism for organizing and conducting the above-mentioned events.

In addition, the definition of the concept of "public financial control" should be fixed in financial legislation and in legislation on public control, for example, in the wording that we previously cited in the text of this scientific article.

Thirdly, an important problem is the lack of development of the concept and limits of the boundaries of public financial control in the scientific legal doctrine. The solution to this problem is seen in the initiation by the Public Chamber of the country of the adoption by the Government of the country of a set of federal programs, within the framework of which the relevant scientific and practical research will be financed from the federal budget.

Fourth, a significant problem is the fact that positive foreign experience in defining the boundaries of public financial control has been poorly studied in Russia. In particular, the experience of the Republic of Belarus is very unique in this regard, as we noted earlier. ^{[25, pp. 63-77]} In this country, the joint efforts of the bodies of the State Control Committee of the Republic of Belarus and subjects of public control are carried out almost in real time, for example, control of the targeted expenditure of finances (from budgets and extra-budgetary public funds) government agencies and business entities.

Sixth, a significant problem is the weak use, as we noted in previous studies, by subjects of public control in their activities of modern digital technologies and artificial intelligence technologies. ^{[4, pp. 170-178; 11, pp. 196-200]} With regard to public financial control, this is especially relevant, since subjects of public financial control have to operate with huge amounts of digital data in the financial sphere. Without the development and application of various algorithms in the organization and conduct of public financial control measures, this activity will be clearly superficial in nature, without revealing deep violations of financial legislation. The solution to this problem is seen, on the one hand, in proper technical and software support for the work of subjects of public control (which requires increased budget funding), and on the other hand, in the development of a mechanism for monitoring the effectiveness of the organization and activities of subjects of public financial control (with scaling of the most successful algorithms for monitoring such effectiveness within the country, region, municipal education).

Conclusion.

In the course of our scientific research, we have made a number of conclusions:

1. The Institute of Public Control in the Russian Federation currently acts as an independent legal guarantee for the implementation, protection and protection of the entire system of rights, freedoms and legitimate interests of both individuals and legal entities.

2. The most important type of public control is public financial control, by which we mean the control of financial and related other activities of business entities that are subject to financial legislation.

3. The implementation of public financial control in relation to its objects must be carried out within certain boundaries, which represent the spatial, temporal and functional limits of the impact of subjects of public control on its objects in order to control their activities, acts and decisions.

4. The definition of the boundaries of public financial control is dictated by the need to minimize the risks of unjustified interference of subjects of public control in the activities of its objects while ensuring the optimal effectiveness of this institution of civil society.

5. The main problems preventing the definition of the boundaries of public financial control are: ignoring this institution by the Constitution of the country; lack of its detail in financial legislation; lack of consolidation of the system of public control, as well as the concept of "financial public control" in the legislation on public control; lack of development of the concept and limits of the boundaries of public financial control in scientific legal doctrine; weak use of foreign experience and modern digital technologies in this area.

6. The resolution of these problems will require the development and implementation of a system of measures, including the following: incorporation of the institute of public control into the Constitution of the Russian Federation, and the concepts of "public control system", "public financial control", into current legislation with the definition of the boundaries of its implementation; implementation of a system of measures to stimulate these scientific and theoretical developments in the domestic scientific legal doctrine of public control, dedicated to defining the boundaries of public financial control; adoption by the Government of the Russian Federation With the assistance of the Public Chamber of the Russian Federation, a number of federal programs dedicated to the development of the Institute of public financial control (taking into account positive foreign experience, as well as modern digital technologies and artificial intelligence technologies).