Using the digital ruble in the budgetary process of the Russian Federation

Abstract

The article explores the potential of implementing the digital ruble into the budgetary process of the Russian Federation as a tool to enhance the efficiency of public finance management. Against the backdrop of external economic challenges and the need to address large-scale domestic tasks, the possibilities of using the unique characteristics of the central bank digital currency (CBDC), such as programmability, «colouring» (earmarking), and transaction traceability based on tokenization and smart contract technology, are analyzed. Based on the analysis of the dynamics of the main indicators of the Russian Federation's federal budget, the current regulatory framework, and the progress of the pilot project, the prospects for digital ruble integration are assessed. It is argued that its use can significantly increase the transparency of budget flows, strengthen control over the targeted spending of funds, reduce operational costs and corruption risks, and accelerate payments. Potential risks associated with the introduction of the new technology into the budgetary sphere are also considered.