Analysis of Funding for “Russia’s Digital Economy” National Programme: Digital Nation

The project Digital Nation is showing consistent positive growth. It consists in securing digital interactions between citizens and commercial organizations with government agencies and state-financed institutions. In 2017, 42.3% of all such interactions in Moscow, Saint Petersburg and Yekaterinburg were made digitally. Thus far, absolute figures are far from the final goal. However, analysts forecast that the share of digital interactions will reach 70% by 2024, provided that 100% of all priority government services will be digitalised.

Another key indicator of the Digital Nation project is the share of electronic document flow between public authorities. In 2015, 18.4% of all interactions were electronic, in 2016 the numbers reached 28.8%, and in 2017 – 42.3%. By 2024, the number is projected to reach 90%.

N. Kuznetsov, Doctor of Economics and Head of Analysis and Modelling of Economic Processes and Systems Scientific School, believes that if current growth trends persist, the success of the whole project might be in danger due to insufficiently digitalised government institutions and periodic changes in their structure. We need a more fully integrated approach to the global use of information and communication technologies in management functions and the provision of government services. The Digital Economy programme will require more funding. Since the federal budget includes a special segment of expenses for digitalising state bodies, we may assume that the lack of funding for this project in the Digital Economy programme will be compensated.

Kuznetsov also emphasises the issue of including this national programme in the system of state strategic planning. Digital transformation of government management will require priority funding. To guarantee a high quality of state management, similarly scaled programmes must be included in the national strategy. However, it is impossible to obtain detailed information from publicly available sources regarding the use of target project indicators in forecasting the country’s social and economic development.

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