Russian Forestry Planning: Forestry Revenue and Expenditures

Abstract

The expenditure-revenue comparison of forestry in market conditions is becoming a pressing issue. For the government, expenditures are tied to forest management costs, and revenue is generated in the form of payments for forest use. At the same time, the target of budget forestry funding is parcels of forest reserve land that are not leased. Forest management within the borders of leased forest lands is carried out by the tenants at their own expense, while continuing to make lease payments. As studies have shown, expenditures for all budget levels of forestry management in the Russian Federation from 2011 to 2017 consistently exceeded revenue from forest use. One of the key problems in Russian forestry is underfunding. Given these conditions, this industry's existing systems of budgeting and revenue increases must be transformed. This paper offers recommendations on how to change the current situation. © 2019 IOP Publishing Ltd. All rights reserved.