# A budget sequestration: de jure and de facto. An economic note

Henry de Overwood

MMMDCLXXIII. A budget sequestration: de jure and de facto. An economic note. - June 29, 2025.

A budget sequestration: de jure and de facto. An economic note.


Unplanned reduction of state revenues - in the conditions of modern parliamentarism - leads to the adoption of amendments to the Budget Law.


If an unplanned reduction of state revenues (from some sources) is combined with an increase in revenues (from other sources), then state expenditures may not decrease (they will be carried out at the expense of additional unplanned revenues).


If revenues (in general) decrease, then expenditures also decrease (an expenditure sequestration is carried out). Expenditures decrease in fact (i.e. de facto), but this decrease is subject to legalization (legal registration): amendments to the Budget Law are adopted (the budget sequestration is carried out "de jure").


Budget sequestration (de jure) creates a legal basis for increasing (replenishing) and for spending state funds, and this is its positive function.


Budget sequestration (de jure) draws attention to painful topics: budget deficit, problems of covering budget deficit, insufficient financial resources, negative effects of reduction of state financing of various spheres, prospects of possible increasing tax pressure, etc. Therefore, adoption of amendments to the Budget Law (for implementation of budget sequestration) may lead to negative information consequences.


If this negative information background has significant negative consequences, if such background may affect social and economic stability, then - in such case - it becomes expedient to shift the adoption of amendments to the Budget Law (for implementation of budget sequestration) to (towards) the adoption of the Law on Budget Execution. In this case, these two processes (in the sphere of legislation) can be synchronized and harmonized, and the negative information effect will be minimized.


Thus, a clear understanding of the differences between budget sequestration "de facto" and "de jure" can be used to increase the stability of economic and public development.


June 29, 2025 16:29 (4:29 PM).


Translation from Russian into English: June 29, 2025 17:15

Владимир Владимирович Залесский ' Секвестр бюджета: де-юре и де-факто. Экономическая заметка.'.


{3702. Секвестр бюджета: де-юре и де-факто. Экономическая заметка. - 29 июня 2025 г.

MMMDCLXXIII. A budget sequestration: de jure and de facto. An economic note. - June 29, 2025.


Vladimir Zalessky Internet-bibliotheca. Интернет-библиотека Владимира Залесского}