5.1.1. The essence of the state budget, its functions
As the history of finance testifies, the budget is not an institution inherent in the state at all stages of its development. The emergence of the budget is not associated with government spending and revenues as such, but with the introduction of financial activities state of planned start (estimating income and expenses for a certain period).
Translated from English, the budget means a bag. During the approval of the House of Commons in England in the XVI - XVII centuries. subsidies to the king, before the end of the meeting, the chancellor of the exchequer opened the briefcase in which the paper with the corresponding bill was kept. This was called the opening of the budget, later the name of the portfolio was transferred to the document itself. From the end of the 17th century The budget began to be called the document containing the plan of incomes and expenses of the state approved by Parliament.
The role of the budget in development national economy changed in different periods of history. In the era of classical capitalism, the state practically did not interfere in economic activity. At that time, in the leading Western countries, about 10% of GDP was redistributed through the state budget.
In the second half of the XX century. the budget has become a powerful regulator of macroeconomics. Currently, in Western countries it is redistributed through the budget one third to one half of GDP . In Russia, this figure is last years is about 38%.
Budget as an economic category
The features of the budget as an economic category include the following:
The budget is the most important lever of influence on the process of social reproduction and stimulation of economic growth. Through level change public spending and taxation, the government can regulate the volume of aggregate demand (the amount of consumer and investment spending), and thereby influence short-term fluctuations in the economic environment. In this regard, there are expansive (expansive) and restrictive (restrictive) budgetary policies. The first of these is expressed in an increase in government spending and a decrease in the level of taxation, which makes it easier to overcome economic crises and accelerate the economic growth. The second means cutting spending and raising taxes, which helps dampen inflation and normalize the economic environment.
The main functions of the budget are as follows:
In the process of functioning, budgetary relations receive their corresponding material and material embodiment through education. budget fund of the country. The specific amount of the budget fund depends on a number of factors:
The totality of budgetary relations in the formation and use of the country's budgetary fund also constitutes the concept of the state budget.
An essential feature of the budget is its planning. The budget is a plan of the state economy for the coming period.
The budget is a plan, but not the main financial plan of the state. The main financial plan of the state is the consolidated financial balance, which reflects the totality of financial resources mobilized in the country, as well as the direction of their spending. Budgetary resources are reflected in the consolidated financial balance as part of it, centralized by the authorities.
Budget revenues reflect economic relations arising from the state with enterprises, organizations and citizens in the process of formation of the budget fund. Budget expenditures represent economic relations that arise between the state, on the one hand, and enterprises, organizations and citizens, on the other, in the process of distribution and use of budget funds in various areas.
With the help of revenues, the process of formation of budgetary resources is carried out, while expenditures mediate the process of their use. The withdrawal of part of the cost to the budget leads to a decrease in the material possibilities of business entities and the population to meet their needs. By contrast, public spending on the basis of public resources increases these opportunities, and in individual cases even fully satisfy some of them.
Socio-economic processes are influenced by specific forms, principles and methods of mobilization and spending budget funds.
Budget revenues are generated from tax and non-tax revenues, as well as gratuitous transfers. The balance of funds at the end of the previous year shall be credited to the budget revenues of the current year.
Tax revenues include tax legislation federal, regional taxes and fees of subjects of the Russian Federation, and local taxes and fees, as well as penalties and fines. The income of the relevant budget also fully takes into account the amount of tax credits granted, deferrals and installment plans for the payment of taxes and other obligatory payments to the budget.
Non-tax income includes:
Among non-tax budget revenues, a special place is occupied by revenues related to the circulation of budget funds in various segments of the financial market:
Non-tax revenues of the budget also include financial assistance, gratuitous transfers, fines and other amounts of forced withdrawal.
Financial assistance from the budgets of another level of the budget system is understood as receipts in the form of grants, subventions and subsidies or other irrevocable and gratuitous transfer of funds.
Subsidies are budget funds provided to the budget of another level of the budget system of the Russian Federation, on a gratuitous and irrevocable basis to cover current expenses.
Subventions are budget funds provided to the budget of another level of the budget system of the Russian Federation or to a legal entity on a gratuitous and irrevocable basis for the implementation of certain targeted expenses.
Subsidies are budget funds provided to the budget of another level of the budget system of the Russian Federation, to an individual or legal entity on the terms of shared financing of targeted expenses.
According to the procedure and conditions for enrollment in the composition of budget revenues, they distinguish their own and regulating budget revenues.
Own (fixed) budget revenues- types of income fixed by the legislation of the Russian Federation on a permanent basis in whole or in part for the relevant budgets. The own revenues of budgets include: tax revenues fixed by the legislation of the Russian Federation for the relevant budgets and budgets of state off-budget funds; non-tax revenues in the list above; other non-tax revenues and gratuitous transfers.
To regulatory revenues of budgets include federal and regional taxes and other payments for which deductions (as a percentage) to the budgets of constituent entities of the Russian Federation or local budgets for the next fiscal year, as well as on a long-term basis (at least 3 years). The rates of deductions are determined by the law on the budget of that level of the budget system that transfers regulatory revenues, or by the law on the budget of that level of the budget system that distributes the regulatory revenues transferred to it from the budget of another level.
Formation budget expenditures all levels is based on common methodological foundations, standards of minimum budgetary security, financial costs for the provision of public services established by the Government of the Russian Federation.
Depending on the economic content, budget expenditures are divided into capital and current.
Capital expenditure budgets designed to ensure innovation and investment activities.
Current expenditures of budgets designed to ensure the current functioning of public authorities, local governments and budgetary institutions, as well as providing state support other budgets and individual sectors of the economy in the form of grants, subsidies and subventions. This category also includes other budget expenditures not included in capital expenditures.
The expenditure part of the budgets of all levels of the budget system of the Russian Federation provides for the creation reserve funds executive authorities and local governments. The amount of reserve funds in the federal budget cannot exceed 3% of approved expenditures federal budget.
The funds of the reserve funds are spent on financing unforeseen expenses, including on carrying out emergency and restoration work to eliminate the consequences of natural disasters and other emergencies that occurred in the current financial year, and the procedure for spending them is established by regulatory legal acts of the Government of the Russian Federation, executive authorities of the constituent entities Russian Federation or local governments.
The provision of budgetary funds is carried out in the following forms:
Budget credit is a form of financing budget spending providing for the provision of funds to legal entities on a returnable and reimbursable basis.
A budget loan is budgetary funds provided to another budget on a repayable, non-reimbursable or reimbursable basis for a period of not more than six months within a financial year.
Transfers to the population- these are budgetary funds for financing mandatory payments to the population: pensions, scholarships, allowances, compensations, other social payments established by law Russian Federation and its subjects, legal acts of local governments.
Expenses at the national level are financed exclusively from the federal budget:
Expenses related to the exercise of their powers are financed exclusively from the budgets of the constituent entities of the Russian Federation:
The following functional types of expenses are financed exclusively from local budgets:
The following types of expenses are financed jointly at the expense of the federal budget, the budgets of the constituent entities of the Russian Federation and local budgets:
The distribution and fixing of expenditures between the budgets of different levels of the budget system is carried out by agreement of the state authorities of the Russian Federation, its subjects and approved by the relevant laws on budgets, or by agreement of the state authority of the subject of the Russian Federation and local governments located on the territory of this subject.
The most important component of the budget system is budget classification, which is a grouping of revenues and expenditures of budgets of all levels, as well as sources of financing their deficits, preparation and execution of budgets and ensuring comparability of their characteristics. Due to the exceptional complexity of the budget as an economic category, various types of classification are used.
Income classification budgets of the Russian Federation is a grouping of budget revenues of all levels of the budget system and is based on the legislative acts of the Russian Federation that determine the sources of their formation. Income groups consist of income items that combine specific types of income according to sources and methods of their receipt.
Within budget classification functional, economic and departmental classifications of expenses are used.
Functional classification of expenses budgets of the Russian Federation is a grouping of expenditures of budgets of all levels of the budget system and reflects the direction of budget funds for the implementation of the main functions of the state, including financing the implementation of regulatory legal acts adopted by public authorities of the Russian Federation and its subjects, financing the implementation of certain state powers transferred to other levels of power.
The first level of the functional classification of expenditures of the budgets of the Russian Federation are the sections that determine the expenditure of budgetary funds to perform the functions of the state. The second level includes subsections specifying the direction of budgetary funds for the performance of state functions within the sections. The third level includes the classification of target items of expenditures of the federal budget, reflecting their financing in specific areas of activity of the main managers of federal budget funds within the subsections of the functional classification of expenditures of the budgets of the Russian Federation. At the fourth level of the classification, the directions of financing the budget expenditures by target items are detailed.
Economic classification of expenses budgets of the Russian Federation is a grouping of expenditures of budgets of all levels according to their economic content.
The departmental classification of federal budget expenditures is a grouping of expenditures that reflects the distribution of budgetary funds among the main administrators of budgetary funds; their list is approved federal law.
The federal budget expenditures for the main administrators of budgetary funds by sections, subsections, target articles and types of expenditures of the functional classification of expenditures of the budgets of the Russian Federation, groups of expenditures, subject items, sub-items and elements of expenditures of the economic classification of expenditures of the budgets of the Russian Federation are approved by the federal law on the federal budget for the next financial year.
Departmental classification expenditures of the budgets of the constituent entities of the Russian Federation and local budgets is a grouping of expenditures of the budgets of the corresponding level and reflects the distribution of budgetary appropriations by the main administrators of budgetary funds by sections, subsections, target items and types of expenditures of the functional classification, groups of expenditures, subject items, sub-items and elements of expenditures of the economic classification.
The list of the main managers of the budget funds of the constituent entities of the Russian Federation, managers of local budget funds is approved by the executive authority of the constituent entity of the Russian Federation, local government, respectively.
The budget classification of revenues and expenditures of the budgets of the Russian Federation, sources of financing budget deficits is the same for the budgets of all levels of the budgetary system of the Russian Federation and is approved by federal law.
Classification of sources of financing budget deficits The Russian Federation is a grouping of borrowed funds attracted by the Russian Federation, its constituent entities and local governments to cover the deficits of the respective budgets.
Sources of coverage are identified according to the budget classification budget deficit grouped into internal and external: loans Central Bank RF (inflationary source associated with the issue of money), the issue and placement of government valuable papers in the country and abroad, loans from commercial banks (domestic and foreign), foreign governments and international financial institutions(IMF, IBRD, EBRD).
The budget classification also highlights state debt, which includes all debentures grouped into internal and external.
Economic and financial science up to J. Keynes (1883 - 1946) considered the law to be without budget deficit.
If the proportionality between expenses and incomes is violated, then it is restored in two ways: by reducing costs or increasing incomes. Achieving budget balance is a very difficult financial and political task. Until now, the problems of balancing the budget, covering its deficit continue to be the subject of scientific and practical discussions.
When income exceeds expenses (surplus), then the surplus of income, if it is temporary and obtained from random circumstances, can be used to meet emergency needs, education reserve fund or on private-economic expenditures of capital. If the surplus is expected to be constant, then it is recommended to lower taxes, since obtaining regular surpluses is contrary to the essence and goals of the financial economy. It is much more difficult to solve the problem in the case when expenses exceed incomes and there is a deficit. It can be caused by the following reasons: the need to implement large government programs economic development, militarization of the country, wars and natural disasters, economic crises etc. In all these cases the expenses of the state increase sharply, exceeding its revenues.
There are structural and cyclic deficits. The deficit included in the structure of income and expenditure in the formation of the budget is called structural. However, the real deficit may be larger than the structural one. The difference between real and structural deficit is called the cyclical budget deficit. If the actually observed budget deficit is less than the structural one, the difference between the structural and real deficit is called cyclical surplus. In the case when, during the formation of the budget, an excess of income over expenses is laid down, they speak of a surplus of budget revenues.
The level of the state budget deficit is determined by the ratio of the absolute value of the deficit to the volume of the budget in terms of expenditures or to the volume of GNP. Many economists consider a country's financial position to be normal if the budget deficit does not exceed 2-3% of GNP.
The deficit is considered as temporary if there are prospects for overcoming it and it does not exceed 3% of GDP. If the budget deficit is up to 10% of revenues, this is an acceptable deficit, but if it is more than 20% of revenues, this is a critical deficit.
The world practice of economic development shows that the budget deficit in itself is not terrible for the country's economy. But at the same time, it is very important that all of it, or at least a large part of it, falls on the development budget. State investment in economic development countries do not have to be fully provided with their own state revenues in the current financial year, they may well be covered by borrowed funds (Central Bank loans, bonded loans, foreign loans), because these investments imply additional returns from the economic activities of enterprises of all forms of ownership. Thus, the development budget deficit as a whole does not disrupt the normal course of economic processes, if there is a really operating mechanism for identifying the relationship between budget deficit planning and large capital investments in the development of the economy.
A completely different picture emerges if most of the state budget deficit falls on the current expenditure budget (this is precisely the distribution of the deficit that is typical for the Russian budget today). This means an increase in unsecured public debt, and it is fraught with the most serious social consequences.
The Budget Code of the Russian Federation regulates the conditions that counteract the emergence of a budget deficit, defines its boundaries. Thus, the current expenditures of the budget of a constituent entity of the Russian Federation, the local budget cannot exceed the volume of revenues of the corresponding budget. The size of the federal budget deficit cannot exceed the total volume of budget investments and expenditures on servicing the public debt of the Russian Federation.
The size of the budget deficit of a constituent entity of the Russian Federation may not exceed 5% of the budget revenues of a constituent entity of the Russian Federation, excluding financial assistance from the federal budget. The size of the local budget deficit cannot exceed 3% of the local budget revenues, excluding financial assistance from the budgets of other levels.
Each budget level has its own sources of financing the budget deficit.
There are three main concepts of budget deficit regulation. Representatives of the first believe that the budget should be balanced annually, that is, each financial year there should be equality between income and expenditure. However, this state of the budget limits the possibility of fiscal regulation, which consists in a conscious change in spending and taxation depending on the state of the economy, which leads either to a budget deficit or to its surplus.
Supporters of the second concept believe that the budget should be balanced during business cycle rather than annually. The government during periods of decline in production increases spending, which leads to an increase in the deficit. But during an upturn, it reduces spending, which increases the surplus of income. As a result, at the end of the industrial cycle, the surplus of income will cover the deficit, which was formed as a result of the decline in production. The problem is that the decline in production and its rise can be of different duration and depth. If the recession is long and the recovery is short, the budget deficit will remain.
The third concept is the concept of functional finance. Its representatives argue that the main goal of public finance is to ensure macroeconomic balance, even if this leads to a state budget deficit. According to them, firstly, macroeconomic balance will cause economic growth, and it will increase the national income, and hence tax revenues to the budget; second, the government can always raise taxes, issue more money, and hence eliminate the deficit; thirdly, the budget deficit does not negatively affect the development of the economy.
Budget Process- this is the activity of state and local authorities regulated by law in the preparation, consideration, approval and execution of state and local budgets (in federal states - and budgets of members of the federation).
The budget process covers individual stages of budgetary activity - drafting the budget, its consideration and approval by the legislative bodies, budget execution; drawing up a report on the execution of the budget and its approval by parliament. The duration of the budget process can be up to two or more years, depending on the duration of its preparation and consideration in the legislature, and together with the approval of the report - more than three years.
The work on drafting the budget begins 12 to 18 months before the start of the new budget year (14 months in France, 18 months in the US). The development of the draft budget is carried out by the Ministries of the Treasury (Treasury), and in the United States - by the Office of Management and Budget under the President, which is also entrusted with control over the execution of the budget. The work on drafting the budget begins with the preparation by the Department of the Treasury (in the US - the Office of Management and Budget) directives to the heads of departments and departments with a proposal to submit by a certain date the calculation of estimates of expenditures and incomes.
Fiscal year or period called the time elapsed between the opening and closing of public accounting. At the beginning of the twentieth century. the financial year coincided with the calendar year in many countries - in France, Austria-Hungary, Belgium, Holland, Luxembourg, Sweden, Russia, Finland, etc. At the end of the twentieth century. there is a difference in the dates of the beginning of the financial year. In the USA, it starts on October 1 and ends on September 30 of the next calendar year, respectively, in Sweden on July 1 - June 30, in Japan - April 1 - March 31. Until now, only Russia has preserved the old tradition, in which the beginning of the financial year coincides with the calendar year.
There is the concept of "grace period" - the time provided to complete the financing of individual objects, close financial accounts. This period varies by country from one to five months. During this time, the government has the right to finance from the funds provided for the budget year that has already ended, without asking for new permissions. fiscal year with the inclusion of a grace period forms the accounting period, which is understood as the actual period of budget execution.
The budget process in the Russian Federation is regulated by:
The Budget Code of the Russian Federation, which is the basic document regulating budgetary activity, highlights the following stages of the budget process: drafting budgets; consideration and approval of budgets; execution of budgets; preparation, consideration of the report and approval of the report on budget execution.
Activity government agencies from the start of budgeting to the approval of the report on its execution lasts about 3.5 years. This period is called the budget cycle.
The organization of the budget process is based on the general principles of organization of the budget system:
The participants in the budget process are:
Participants in the budget process are also budgetary institutions, state and municipal unitary enterprises, other recipients of budgetary funds, as well as credit organizations that carry out individual operations with budget funds.
vested with special budgetary powers Ministry of Finance of the Russian Federation, which:
Special responsibility for the organization and direct execution of the budget process is assigned to Federal Treasury . It is responsible for:
When drafting the budget, the following main tasks are set:
When developing a draft budget, various methods of calculating income and expenses are used, which have undergone significant changes in historical terms. At the beginning of this century, the budget of most countries was formed by the "increment" method, that is, the budget of the previous year was taken as a basis and a certain percentage of growth was applied to it. This increase was usually calculated as a base in real terms (i.e., adjusted for inflation) plus a small percentage due to real growth.
In the period from the mid-1970s to the early 1990s. most democracies have put into practice the basic elements of program funding systems:
Program-target method provides for systematic adjustment decisions taken in accordance with the ongoing changes in the political, economic, social and other spheres, which required the presence and functioning of large government information centers from the leading Western countries. According to this method, a multi-variant budget is developed, which is generally linked to economic programs countries, taking into account the general development prospects.
The drafting of budgets is preceded by the development of forecasts for the socio-economic development of the Russian Federation, its constituent entities, municipalities and sectors of the economy, as well as the preparation of consolidated financial balance sheets, on the basis of which the executive authorities develop draft budgets.
Draft budgets are drawn up taking into account the need to achieve minimum state social standards based on the norms of financial costs for the provision of state or municipal services in accordance with other norms (standards) established by law, as well as legal acts of local governments.
Minimum State Social Standards- these are public services, the provision of which is guaranteed by the state to citizens on a gratuitous and irrevocable basis through financing from the budgets of all levels of the budgetary system of the Russian Federation and the budgets of state non-budgetary funds at a certain minimum allowable level throughout Russia.
Under minimum budget security is understood as the minimum allowable cost of state and municipal services in monetary terms, provided by state authorities or local governments per capita at the expense of the relevant budgets.
Based on the forecast of the socio-economic development of the country, the consolidated balance of financial resources, the main directions are determined budget policy for the next financial year, constituting the content of the Budget Message of the President of the Russian Federation to the Federal Assembly of the Russian Federation (it is sent no later than March of the year preceding the next financial year). With the Budget message, the direct work on the preparation of the draft budget begins.
The direct drafting of budgets is carried out by the Ministry of Finance of the Russian Federation, financial authorities of the constituent entities of the Russian Federation and municipalities.
Budgeting is based on:
The development and approval of the federal budget for the next financial year shall be completed no later than July 15 of the year preceding the planned year.
The draft law (decision) on the budget should contain:
The concept of budget initiative- the right to make certain changes to the draft budget. There are three types of it: governmental, parliamentary and mixed.
Government Budget Initiative limits the rights of parliament: either the draft budget is approved as a whole, or it is rejected (Great Britain).
Parliamentary Initiative provides for the right of members of parliament to make corrections to the draft in the course of its consideration in order to then approve this amended draft (USA).
At mixed budget initiative, which is widespread in Western European countries, as well as in Russia, amendments to the draft budget can be made by both the government and parliament.
The Government of the Russian Federation, the authorities of the constituent entities of the Russian Federation and local self-government submit an updated draft budget to the appropriate representative body. For all financial matters and for working with the budget, in particular, representative authorities of various levels form special committees and commissions. In the State Duma, the State Duma Committee on Budget, Taxes, Banks and Finance has been established; in the Federation Council - the Federation Council Committee on Budget, Financial, Currency and Credit Regulation.
The Central Bank of the Russian Federation presents to the State Duma a draft of the main directions agreed with the Government of the Russian Federation monetary policy next year.
The Government of the Russian Federation submits to the State Duma a draft law on the federal budget for the next financial year no later than August 15 of the current year. In case of disagreement on the draft budget, the authorities of different levels form a conciliation commission.
The State Duma is considering the draft law on the federal budget in several readings. This is a traditional approach for all democratic states. Prior to the consideration of the draft federal law on the budget in the first reading, committees and commissions of the Duma submit to the Duma Committee on Budget, Taxes, Banks and Finance their opinions on this bill, on the basis of which the said Committee prepares an opinion on the draft budget and submits it to the Duma for consideration.
In the first reading, the deputies discuss its concept and forecast of the socio-economic development of the Russian Federation for the next year, the main directions of budget and tax policy, the basic principles and calculations on the relationship between the federal budget and the budgets of the constituent entities of the Russian Federation, the draft program of state external borrowing of the Russian Federation in terms of sources of external financing of the deficit federal budget, as well as the main characteristics of the federal budget, which include: federal budget revenues by groups, subgroups and articles of the classification of budget revenues of the Russian Federation; distribution federal taxes and fees between the budgets of the constituent entities of the Russian Federation; federal budget deficit and sources of its coverage; total expenses. Committees of the State Duma prepare and send to the Budget Committee opinions on the said bill and proposals for the adoption or rejection of the said bill.
If the draft federal law on the budget is rejected in the first reading, the State Duma may either submit the bill to a conciliation commission consisting of representatives of the Duma, the Federation Council and the Government of the Russian Federation to clarify the main characteristics of the federal budget, or return it to the Government of the Russian Federation for revision, or put the question of confidence in the Government of the Russian Federation. If the draft federal budget is submitted to the conciliation commission, it develops an agreed version of the main characteristics of the federal budget for the next year and submits the draft law on the federal budget for consideration by the State Duma again in the first reading.
The decision of the conciliation commission is made by a separate vote of its members from the State Duma, the Federation Council, the Government of the Russian Federation. A decision shall be considered adopted by a party if the majority of the representatives of that party present at the meeting of the conciliation commission voted for it. The voting results of each party are taken as one vote. A decision is considered agreed if it is supported by three parties. A decision against which at least one party objects is considered inconsistent.
Based on the results of consideration in the first reading of the draft law on the federal budget, a resolution of the State Duma is adopted on the adoption in the first reading of the draft federal law on the federal budget.
If the State Duma does not make a decision based on the results of the work of the conciliation commission, the draft law on the federal budget is considered rejected again. Repeated rejection of the draft federal budget is possible only if the State Duma raises the question of confidence in the Government of the Russian Federation. If the federal budget for the next financial year is returned for revision to the Government of the Russian Federation, then it is finalized within 20 days, taking into account the proposals and recommendations set out in the conclusions of the budget and economic policy committees, and the revised bill is submitted for reconsideration by the Duma in the first reading. When the bill is re-submitted, the State Duma considers it in the first reading within 10 days from the date of re-submission.
In the event of the resignation of the Government of the Russian Federation due to the rejection of the draft law on the federal budget, the newly formed Government of the Russian Federation shall submit a new version of the draft law on the federal budget for the next financial year no later than 30 days after its formation.
When the State Duma considers the draft law on the federal budget in the second reading, the federal budget expenditures are approved by sections of the functional classification of expenditures of the budgets of the Russian Federation within the total volume of the federal budget approved in the first reading, and the amount of the Federal Fund for Financial Support of the Subjects of the Russian Federation. The State Duma considers the budget law in the second reading within 15 days from the date of its adoption in the first reading.
It is in the second reading that the Duma sends to the executive and representative authorities of the subjects of the Federation information on the distribution of income from federal taxes and fees between the budgets of the Russian Federation, approved at the first reading, as well as on the size of the Federal Fund for Financial Support of the Subjects of the Russian Federation and the distribution of its funds, approved in the second reading. If the budget is rejected in the second reading, it is submitted to the conciliation commission.
When considering the draft federal law on the federal budget for the next year, the federal budget expenditures are approved in the third reading according to the subsections of the functional classification of expenditures of the budgets of the Russian Federation and the main administrators of federal budget funds for all four levels of the functional classification of expenditures of the budgets of the Russian Federation. The distribution of funds from the Federal Financial Support Fund for all constituent entities of the Russian Federation, the cost of financing federal targeted programs, etc. are being considered. The subjects of the right of legislative initiative send their amendments on the third reading to the Duma Budget Committee. The State Duma considers the draft law on the budget in the third reading within 25 days from the date of adoption of the said bill in the second reading.
Then the State Duma considers the draft law on the federal budget in the fourth reading within 15 days from the date of adoption of the said bill in the third reading. At this stage of consideration of the draft budget, the draft law is voted on as a whole and amendments to it are not allowed. The law on the federal budget for the next year adopted by the Duma is submitted to the Federation Council for consideration within five days after its adoption. After voting in the fourth reading in the Duma, the draft budget law becomes law.
The Federation Council considers the federal law on the federal budget for the next financial year within 14 days from the date of its submission by the State Duma; while the law is voted on for its approval as a whole. The law approved by the Federation Council is sent to the President of the Russian Federation within five days for its signing and promulgation.
If a federal law is rejected by the Federation Council, it is sent to a conciliation commission. The conciliation commission submits the law on the federal budget for reconsideration by the Duma within 10 days. The State Duma is reconsidering the budget law in one reading.
If the State Duma does not agree with the decision of the Federation Council, the law on the federal budget is considered adopted if at least two-thirds of the total number of deputies of the Duma voted for it during the second vote.
If the President of the Russian Federation rejects the law on the federal budget for the next financial year, this law is submitted to the conciliation commission. In this case, a representative of the President of the Russian Federation is included in the conciliation commission.
If the federal law on the federal budget for the next financial year does not enter into force before the beginning of the year (in the event that the Duma does not adopt the draft federal law on the federal budget for the next financial year before December 1 of the current year, and also in the event that the law on the federal budget for the next financial year does not enter into force the next financial year for other reasons before January 1 of the next year), the Duma may adopt a law on financing expenditures from the federal budget in the first quarter of the next financial year. In this case, the federal executive bodies shall spend the federal budget funds in accordance with the said federal law.
On the territory of each subject of the Federation and municipality, the procedure and conditions for considering and approving the budget are established by representative authorities that adopt independent regulations on the budget process in the corresponding territory. Nevertheless, each of these acts must comply with the general principles of the budget process and the rules for drawing up, reviewing and approving the federal budget.
After the approval of the budget, the third stage of the budget process begins - the execution of the budget. It covers the receipt of approved revenues, mainly taxes, and the implementation of budgetary expenditures, that is, payments in accordance with the allocated appropriations. The organization of the execution of the revenue part of the budget and control over its implementation is entrusted to the Ministry of Finance.
The most important element of this stage of the budgeting process is cash execution of the budget, i.e., organizing the collection of budget funds in the country, their storage and issuance, as well as accounting and reporting.
There are three systems of organization cash execution budget: treasury, banking and mixed. Under the treasury system, the state treasury receives revenues, incurs expenditures, and deposits balances in special bank accounts. The Treasury acts in this case as both a cashier and a banker. At banking system cash execution is transferred to the central issuing bank.
Cash execution of the budget is based on the principle of cash unity, which means that all revenues collected in the country go to a single account, from which all appropriations are made in accordance with approved expenditures, which allows the Ministry of Finance to constantly monitor the flow of funds, cash flow, prevent cash gaps.
In the process of executing the federal budget, it is prohibited to carry out operations bypassing the system of balance accounts of the Federal Treasury. The right to open and close accounts of the federal budget, determine their regime belongs to the Federal Treasury. The unified account of the federal budget (single account of the Federal Treasury) is located in the Bank of Russia.
Accounts of the Federal Treasury with the Bank of Russia and credit institutions are maintained on the basis of agreements. Opening and closing of accounts of the federal budget, changing their regime without a corresponding decision of the Federal Treasury are not allowed.
The execution of the budget in terms of revenues is carried out by the Ministry of Finance, in terms of expenditures - by the relevant sectoral ministries and departments.
Execution of the income budget provides for:
To execute the budget for expenditures means to finance the expenditures provided for in the budget in accordance with the budget schedule.
In terms of expenditure, the budget is executed by special entities - participants in budgetary legal relations, called chief budget officer, managers of budgetary funds, recipients of budgetary funds.
Chief administrator of federal budget funds- this is a public authority of the Russian Federation that has the right to distribute federal budget funds to subordinate managers and recipients of budget funds, determined by the departmental classification of federal budget expenditures. The beneficiary of the budget is state-financed organization or other organization entitled to receive budgetary funds in accordance with the budget schedule for the corresponding year.
The execution of budgets of all levels is carried out by authorized executive bodies on the basis of budget list. The budget list is compiled by the main manager of budgetary funds according to their managers and recipients on the basis of the approved budget in accordance with the functional and economic classifications of expenditures of the budgets of the Russian Federation with a quarterly breakdown and is submitted to the executive authority responsible for budgeting within 10 days from the date of its approval.
On the basis of the budget lists of the main managers of budgetary funds, the Minister of Finance of the Russian Federation draws up a consolidated budget list of the federal budget. The approved consolidated budget list of the federal budget is transferred for execution to the Federal Treasury and sent for information to the Federal Assembly and the Accounts Chamber of the Russian Federation.
The Federal Treasury maintains a consolidated register of recipients of federal budget funds and the General Ledger of the Treasury, which registers all transactions related to the receipt of income and receipts from sources of financing the federal budget deficit in the federal budget, as well as to the authorization and financing of federal budget expenditures.
Work on the execution of budgets of all levels, i.e. the budget (financial) year, ends in the Russian Federation on December 31. Limits on budget commitments expire on 31 December.
The following forms of financial control are provided for during the budget process:
Financial control exercised by executive authorities, local governments, is carried out by the Ministry of Finance of the Russian Federation, the Federal Treasury, financial authorities of the constituent entities of the Russian Federation and municipalities, chief managers, managers of budgetary funds.
The forms and procedure for exercising financial control are established by the Budget Code of the Russian Federation, other acts of budgetary legislation and regulatory legal acts of the Russian Federation, its constituent entities and local governments.
The Federal Treasury exercises preliminary and current control over the conduct of operations with budgetary funds of the main administrators, administrators and recipients of budgetary funds, credit institutions, other participants in the budgetary process on executable budgets and budgets of state non-budgetary funds, interacts with other federal executive authorities in the process of exercising this control and coordinate their work.
The Ministry of Finance of the Russian Federation carries out internal control for the use of budgetary funds by the main managers, managers and recipients of budgetary funds. In some cases, the ministry financial control for the execution of the budgets of the constituent entities of the Russian Federation and local budgets. The Ministry of Finance of the Russian Federation organizes financial control, inspections and audits of legal entities - recipients of guarantees from the Government of the Russian Federation, budget credits, budget loans and budget investments.
The main managers, managers of budgetary funds exercise financial control over the use of budgetary funds by recipients of budgetary funds in terms of ensuring the intended use and timely return of budgetary funds, as well as reporting and paying fees for the use of budgetary funds. The main managers of budgetary funds conduct inspections of subordinate state and municipal enterprises, budgetary institutions.
The budget process ends with the preparation and approval of the budget execution report, which is an important form of control over its execution. Reports on the execution of the federal and consolidated budgets for the past year are prepared by the Ministry of Finance of the Russian Federation and submitted to the Government of the Russian Federation.
In the constituent entities of the Federation and municipalities, a report on the execution of the budget is compiled by the financial authorities, and then submitted to the executive authorities, which submit it to the representative authorities within the prescribed period.
Every year, no later than June 1 of the current year, the Government of the Russian Federation submits to the State Duma and the Accounts Chamber of the Russian Federation a report on the execution of the federal budget for the reporting financial year in the form of a federal law, as well as reports on the execution of the budgets of federal targeted budget funds.
The Accounts Chamber of the Russian Federation checks the report on the execution of the federal budget for the reporting financial year within 1.5 months after the submission of the said report to the State Duma, using the materials and results of the checks and audits carried out, and prepares an opinion on the report. The State Duma considers the report on the execution of the federal budget within 1.5 months after receiving the conclusion of the Accounts Chamber of the Russian Federation.
Based on the results of consideration of the report on the execution of the federal budget and the conclusion of the Accounts Chamber of the Russian Federation, the State Duma takes one of the following decisions: on approval of the report on the execution of the federal budget; on the rejection of the report on the execution of the federal budget.
The following measures may be applied to violators of budget legislation: a warning about improper execution of the budget process, blocking of expenses, withdrawal of budget funds, suspension of operations on accounts in credit institutions, imposition of a fine, charging fines, other measures in accordance with the Budget Code and federal laws.
Budget system - it is based on economic relations and legal norms, the totality of all types of budgets operating in the country.
budget device – it is the organization of the budget system, the principles of its construction.
The budget structure is determined by the state structure. The administrative-territorial division of the country determines the number of links in the budget system, since each public authority, according to the Constitution of the country, has the right to its own budget. In unitary (unified) states, the budget system has two links: the state budget and numerous local budgets. In the federal states, the budget system consists of three parts: the state budget (the federal budget, or the budget of the central government), the budgets of the members of the federation, and local budgets.
AT unitary state organ government controlled may be single or multi-level, but control over the performance of the functions of state power is assigned to the government in the center. In many unitary states, local governments have some tax powers, but they are insignificant and are under the control of the center, the funds they collect are also tightly controlled. More political and budgetary powers low levels management in a unitary state is limited by the framework established by the government in the center.
A federation is a form of government in which the federal units that are part of the state are members of the federation, for example, lands, states have their own constitutions, legislative, executive and judicial bodies. Along with this, unified - federal - bodies of state power are being formed, a single citizenship is being established, currency unit etc. The following are typical for a federation:
The federal structure provides not only decentralized decision-making, but also the distribution of powers, and the division of power, which is more important. Under the federal state structure each level of government has its own rights and powers, and the governing bodies are elected.
There are 4 groups of methods of budgetary regulation.
The main method of budgetary regulation is the establishment and distribution of regulatory sources of budget revenues. This is predetermined by the fact that all other methods of budgetary regulation are applied only if the use of regulatory revenues has not led to the desired result.
Regulatory sources of income are determined by the representative authorities of the territories of a higher level. For example, the constituent entities of the Russian Federation, having a certain budget independence, in the person of their representative bodies of power, in addition to the federal ones, can determine their regulatory sources.
The distribution of regulatory sources of income between budgets is carried out by means of approved norms for deductions from these incomes. Such standards are approved by higher representative bodies within their competence for the budgets of the lower territorial level. Both uniform norms of deductions for all or corresponding groups of national-state and administrative-territorial formations, and differentiated ones (for each such subject) can be approved. Differentiated and unified rates of deductions may be approved simultaneously by different types regulatory income.
The law provides that the actual increase in the level of fixed income in the current financial year, which was the result of financial and economic activities or the introduction of local taxes and fees, cannot serve as a basis for reducing the norms for deductions from regulatory income for the next financial year without the consent of the relevant representative body of power.
The methods of redistribution of the budgetary sources themselves include:
The methods of redistribution of budgetary sources are applied only if the fixed and regulating budget revenues of the lower territorial level in their totality constitute less than 70% of its revenue.
In the process of budgetary regulation, methods of gratuitous assistance provided to lower budgets at the expense of higher budgets are actively used. This group of methods includes: grants, as well as transfers - normative share grants, subventions and subsidies.
The fourth group of methods includes loans allocated to one budget from the funds of other budgets. For example, the legislation of the Russian Federation provides for the possibility of redistributing budget funds through budget loans, and in case of insufficient budget funds to cover expenses in excess of the minimum budget, as well as in cases of temporary financial difficulties in the process of budget execution, the executive authorities can receive interest-bearing or interest-free loans from other budgets. The law does not bind the receipt and provision of budget loans to any level framework, for example, only from a higher budget to a lower one, therefore, such a loan can be provided from a budget of any level to a budget of any level, including from a lower to a higher one, if it has such opportunity.
A budget loan is financial assistance, but unlike a grant, a subvention, it is repayable and can be reimbursable, that is, with the payment of interest for its use. The fundamental difference between a budget loan and the methods of the previous 3 groups is that, as a method of budgetary regulation, it is used at the stage of budget execution, while all others are used at the stages of its formation.
The problem of differentiation of powers between the federation, subjects of the federation and local authorities is decisive in the formation of budgetary federalism. The theory of budgetary federalism is aimed at finding such a model of a budgetary device that would make it possible to satisfy the needs of the population as much as possible. public services no matter what level they may be at.
In the Budget Code of the Russian Federation fiscal federalism characterized as the relationship between the state authorities of the Russian Federation and the state authorities of the constituent entities of the Russian Federation regarding the delimitation of budgetary powers, expenses and incomes, the distribution and redistribution of the latter between the federal budget and the consolidated budgets of the constituent entities of the Russian Federation, based on a combination of national interests and the interests of the population living in the territory of the constituent entities RF and their constituent municipalities.
Fiscal federalism involves:
The general principles of Russian budgetary federalism are defined by the Constitution of the Russian Federation, the Federal Treaty, the Budget and tax code and other legislative acts. These principles are:
Any model of fiscal federalism is characterized by three main conditions for its effective functioning:
There are three types of fiscal federalism models:
At centralized type the delimitation of powers between the levels of government in terms of spending, as a rule, is not accompanied by the provision of sufficient sources of income of their own. Under these conditions, the financing of territorial programs is carried out at the expense of centralized funds of the federal budget using various forms of interbudgetary relations. Here, the independence of the functioning of the lower levels of the public sector is reduced to a minimum.
decentralized types organizations of the budget system are built on the recognition high degree independence of regional and local budgets. Financial aid from higher budgets is reduced to a minimum. Powers in the sphere of expenses are adequate to powers in the sphere of incomes. With this organization, the implementation of a unified financial and economic policy within the state is very difficult.
The decentralization of power makes it possible to more sensitively capture the socio-economic, ethnic and cultural characteristics of the population. The complexity of the problem lies in finding the line beyond which the decentralization of power leads to the inevitable opposition of the interests of the subjects of the federation to the state as a whole.
For combined model Fiscal federalism is characterized by the following points:
Vertical alignment implies the process of finding a correspondence between the volume of obligations of each level of government in terms of spending with its revenue sources and compensating for the imbalance regional budgets through transfers; it means, in fact, the insufficiency of revenues from own sources to the budget of any level to cover the costs associated with the provision of socially significant services to the population.
Horizontal alignment involves a proportional distribution of the tax burden among the subjects of the federation to eliminate or at least reduce inequality tax opportunities different territories, as well as taking into account the differentiation of the population by the level of per capita budget revenue and leveling regional differences in living wage, cash incomes and expenditures of the population.
An experience developed countries with a federal structure shows that for any model of fiscal federalism to function effectively, at least three conditions must be met, namely:
Legislative and guidance materials
Main literature
additional literature
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Budget is a specific detailed plan for the collection and use of resources by economic agents for a certain period.
- a document describing the income and expenses of a particular state, as a rule, for a year (from January 1 to December 31).
In view of the special importance of the state budget for all areas economic life its drafting, approval and implementation occur at the level of laws. At the same time, the state budget itself is a law.
Almost every economic institution (enterprise, firm, branch of the economy, bank, economic and financial funds, etc.) has a plan for collecting income and using expenses. All socio-political institutions (government organizations, political parties, etc.) also have budgets.
The state budget serves as a prerequisite and financial basis for the functioning of the state and the implementation by it of those functions that society has authorized it to perform. With the help of the budget, issues of financial regulation at the macro level and on the scale of the entire economy are solved. economic importance the budget consists in the fact that it forms a significant part of the final demand (due to its funds, most of the income from the population is formed, large volumes of products are purchased, and state reserves are created). Significant financial flows, it directly affects the formation of important economic indicators(Fig. 1):
State budget revenues - the final stage cash flows coming from the real sector and other large areas financial relations, and state budget expenditures are the starting point for the movement of state resources to meet the needs outlined by the state and society (Fig. 2).
The state budget is the main financial plan of the country, having the force of law.
The budget is a way to redistribute cash income population, enterprises and other legal entities in the interests of financing state and other public expenditures.
Balanced budget- a budget in which the ratios of income and expenses are equal.
If revenues and expenditures in the budget differ, then the budget deficit or surplus.
The spending of state budget funds is carried out in the directions and in the amounts determined by the federal law, laws and other regulatory legal acts of the subjects of state power. State budget expenditures can be classified according to various featured, the most important of which is financing state of their functions: economic, social, defense etc.
The following expenses are financed from the federal budget:The basic principle of delimiting expenditures between budgets is their adequacy to the powers assigned to the respective level of government.
Budget expenditures are also divided according to the principle of their participation in the process of expanded reproduction.
According to the principle of participation in the process of expanded reproduction, budget expenditures are divided into current and capital expenditure.
Current expenses- this is:
Capital expenditures are divided into:
Among priority state budget expenditures are:
The state budget- one of the tools state regulation economy, the main financial plan for the formation and use of the centralized fund of state funds.
The main elements of the state budget are revenues and expenditures. Income includes taxes and fees; to expenses - financing of the economy, socio-cultural programs, defense and management.
The balance of budget revenues means the equality of its revenues and expenditures. If expenses exceed income, then there is a deficit, and if income exceeds expenses, there is a surplus, or surplus.
There are several concepts of budget deficit:
- structural deficit is the difference between current government spending and the revenue that would go to the budget under the current tax system with full employment of the population;
- actual deficit- this is the difference between the income and expenses of the actually executed budget;
- cyclical deficit is the difference between the actual and structural deficit;
- primary deficit is the total government budget deficit minus the amount of government debt payments.
The form of manifestation of the budget deficit is public debt.
State debt – total amount outstanding deficits of the state budget, accumulated during the existence of the country.
The main forms of public debt:
Domestic debt - the state's debt to its own citizens;
External debt - debt of the state to citizens and organizations of other countries;
Ways to overcome the budget deficit:
Reduction of budget expenditures;
Finding additional sources of income;
Borrowing money;
Money issue.
Public debt management is a set of government actions to repay and regulate the amount of public debt, as well as to attract new borrowed funds.
Centerpiece financial system country is the state budget. The budget serves to accumulate financial resources and use them to perform the main functions of the state. Thus, the budget is an instrument of economic and social policy, it serves to redistribute part of the country's gross domestic product, taking into account public interests.
The question of the definition of the concept of "state budget" is debatable, in theory and in practice there are different approaches to answering it.
The budget can be understood as "a system of imperative monetary relations, in the process of which the budget fund is formed and used."
At the same time, the budget fund is a centralized monetary fund accumulated by the state and used to finance certain social needs - ensuring national defense and security, supporting sectors of the economy, social protection of the population, developing education, healthcare, etc.
A different definition of the budget is enshrined in the Budget Code of the Russian Federation. In it, the budget is understood as "a form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the state and local self-government."
Each of the definitions of the budget has its own advantages and disadvantages. The definition contained in the Russian Budget Code is more functional. It reflects the tasks budget system, its multi-level structure, as well as the duality of the budget structure: on the one hand, it allocates a revenue part, which is a set of financial resources for the implementation public policy, and, on the other hand, the expenditure part, reflecting specific areas of use of budgetary funds.
Understanding the budget as a system of relations regarding the formation and use of the budget fund also has a number of advantages. It emphasizes the important characteristic of the budget as an element of state coercion.
Within the framework of this approach, it is also proposed to clarify the content of the concepts "budget", "budget plan" and "budget fund", determining their relationship with each other.
When using the word "budget" in practice, it is understood as a monetary fund in the hands of the state, and a document that determines the procedure for its formation and use. From a terminological point of view, it is more correct to separate these concepts. A document that legally establishes a list of state revenues and expenditures at the central, regional or local level for a certain period of time is called a budget plan. The execution of the budget plan consists in the formation and expenditure of a centralized fund of financial resources, which is called the budget fund.
The budget plan is drawn up by executive authorities, reviewed and approved by legislators, after which it acquires the force of law. The budget law is the main financial document countries. It is compiled for a certain period of time, called the budget period, which is usually equal to the calendar or business year. In Russia, the budget period corresponds to the calendar year (from January 1 to December 31), and in the United States it lasts from October 1 to September 30.
The budget is both a legal and an economic category. In modern conditions, it is the main instrument of state regulation of the economy, plays an active role in ensuring its stability and development. The implementation of any direction of state policy in the economic or social sphere requires appropriate resource support. That is why the budget is objectively necessary for each state to perform the functions assigned to it. Its individual elements, such as straight lines and indirect taxes, loans, spending on public administration, defense, etc., have existed throughout the history of mankind with various social order and are preserved today.
With the help of the budget, the state redistributes the gross domestic product between industries, regions of the country, as well as between individual economic entities. The goals of this redistribution are different. These may include promoting the development of priority sectors of the economy; support for those of its sectors that are unprofitable or low-profit, but have a high social significance (for example, agriculture), and are also necessary to ensure national security; alignment of the socio-economic development of individual regions of the country; overcoming excessive differentiation of incomes of citizens, etc.
The impact of budgetary regulation on the country's economic development is complex and ambiguous. For example, the withdrawal of part of the income of citizens and organizations to the budget through the taxation system restrains the level of economic activity in the country. However, at the same time, the possibilities for conducting state development programs financed from budgetary funds are expanding. The active equalization of regional budget revenues through the financial support of the center, which helps to improve the situation of poorer territories, can be assessed as unfair from the standpoint of rich regions that are donors of such programs. Thus, when forming the state budget, it is necessary to develop approaches that would take into account the balance of various public interests.
The budget as a system of economic relations has two interrelated components: relations regarding the formation of a budget fund at the expense of various types of income; and about its use in the form of budget expenditures. The structure of budget revenues and expenditures for the next year is the main content of the budget plan, it determines promising directions socio-economic policy of the state and resources for their implementation.
Budget revenues are formed from taxes, as well as some other types of revenues, called non-tax revenues (income from the sale and use of state property, from foreign economic activity, etc.). The structure of the revenue part of the budget is not constant, it is subject to change depending on the conditions of the country's development, the specific socio-economic situation and the directions of state policy. For example, tax revenues increase with the growth of economic activity in the country, income from the sale of state property - during privatization.
The purpose of budget expenditures is to provide financial support for the activities of the state in the execution of its economic functions- distribution of resources, redistribution and stabilization. Budget expenditures are directed, first of all, to the public sector of the economy to finance the activities of government bodies for the production of public goods (defense, law enforcement, culture and art, healthcare, education, science, etc.), as well as support for enterprises located in state ownership. Part of the expenditure is also carried out outside the public sector: at the expense of state funds, benefits are provided to poor citizens, pensions and scholarships are paid, and state orders are paid, in the execution of which private firms were involved. Budget expenditures, their volume and structure are subject to more frequent changes than its revenues.
The budget has not only a direct, but also an indirect impact on the socio-economic development of the country. A direct impact is a change in the distribution of resources in an economy that is a direct result of taxation or public spending. The indirect impact lies in the fact that the forecast values of the main indicators of the country's development (GDP, inflation rate, exchange rate) fixed in budget documents national currency and others), the priorities of the state financial policy, specific areas of formation and spending of budget funds form certain expectations in society and are taken into account by other market entities when planning their economic activities for the future.
The impact of budget policy on the country's economy as a whole and its individual segments is very large, it affects the interests of various categories of the population, business entities, government agencies. Therefore, the planning and approval of the budget is an area of competition for various interest groups. The discussion of budget laws causes a wide public outcry and attracts the attention of not only specialists, but also the media, ordinary citizens. In addition to current budgetary policy priorities, discussions revolve around fundamental question economic theory and practice - about the role and scope of state regulation. The growth in the share of GDP redistributed through the budget reflects the strengthening of the regulatory impact on the economy. On the contrary, its decline is an indicator of a more liberal economic policy. The choice between these options in the long term depends on public preferences, which are revealed in the course of the election campaign, referendum and other forms of expression of the will of citizens.
For example, with the growth of the property stratification of the population or the inequality of the economic potential of regions, support for redistribution programs increases in society. Political parties advocating the expansion of such programs receive additional votes.
The result of the election campaign is an increase in the number of their factions in parliament and, as a result, an increase in influence on the lawmaking process. Redistribution programs are included in the budget law, as a result of which the role of budgetary regulation in the economy is growing.
The growth factor of the budget is the bureaucratic organization of public administration. The bureaucracy is focused on the growth of the budget, since its size determines its position in society and income. Therefore, it is quite natural for the bureaucracy to strive to increase the budget in each link of state administration under its control.
In order to limit such tendencies leading to inefficient spending of budgetary funds, special control mechanisms are introduced.
The purposeful socio-economic development of the state is ensured by the formation of various centralized funds, and, above all, a nationwide fund of funds - state budget. State. the budget is the leading link in the country's financial system.
The general concept of the state budget is given in Art. 6 of the Budget Code of the Russian Federation . "The budget is a form of formation and spending of a fund of funds intended for financial support of the tasks and functions of the state and local government". However, the Budget Code provides too much general concept, characterizing only one side of it - as "The form of education and spending money ..."
In the material sense state the budget is centralized on the scale of the state. or administrative-territorial formation of a monetary fund, which is at the disposal of the relevant state bodies. authorities and local government. Although the material content of the budget is not constant, the amount of money concentrated in it is constantly changing, the types of revenues to it, and the directions of expenditures are changing.
However the essence of the state budget constant. It manifests itself in social relations related to the concentration of funds in the budget and their use, i.e. in characterizing the essence of the budget as an economic category.
As an economic category, the budget is a set of economic (monetary) relations that arise in the process of formation, planned distribution and use of the state centralized fund of funds. Budgetary relations arise between the state and its subjects (legal and individuals) in the formation of a centralized fund with the help of taxes, fees, duties, as well as when using a centralized budgetary fund; through economic relations are annually mobilized in the state. budget a significant part of the savings of enterprises, organizations and part of the income of the population. Budget funds are directed to financial support for the tasks and functions of the state, social and cultural events.
The concept of state The budget also has a legal (legislative) aspect. From the position of the legislative (legal) establishment of the state. budget, it is regarded as the financial plan of the state.
In terms of legal act state budget is defined as follows.
The state budget- this is the main financial plan for the formation, distribution and use of the centralized monetary fund of the state, approved by the relevant legislative (representative) body of the state. authorities. Such a financial plan for the formation, distribution and use of a centralized fund of funds (state budget) fixes legal rights and responsibilities of participants in budgetary relations.
The main purpose of the state budget- by using financial resources to create conditions for the effective development of the economy, the solution of national tasks, and the strengthening of defense capability.
The formation and use of the state budget in the Russian Federation has a number of distinctive features:
1. The preparation and use of the budget has a pronounced balance character. The balance method of the budget allows you to outline the necessary relationship between the amount of cash income and the amount of expenses. An analysis of the emerging balance of the budget (in terms of revenues and expenditures) allows us to conclude that it is necessary to change certain proportions in the plan, find additional resources or reduce certain expenses.
2. Formation and use of state. The budget is based on a combination of centralized principles with the initiative of local authorities.
3. With the help of state. budget, there is a redistribution of national income between sectors of the national economy, constituent entities of the Russian Federation and other areas.
4. A distinctive feature of the state. budget is its national economic character. The country's budget is connected with all branches of the national economy. Branches are connected with the budget both in the formation of the budget with revenues and in the line of their financing. The performance of these functions by the budget is combined with its active influence on the production process and the growth of savings.
State. the budget as an economic category expresses the system of economic relations between the state, on the one hand, enterprises, organizations and the population, on the other hand, regarding the distribution and redistribution of the total social product and national income and the formation of a centralized nationwide fund of funds.
Formation of state the budget occurs both at the stage of the primary distribution of national income, and in the course of its redistribution. In the process of primary distribution of national income, the state receives at its disposal a part of net income in the form of taxes (value added tax, excises, etc.). As a result of the redistribution, a part of the profits of enterprises and economic organizations of various forms of ownership enters the budget.
The constituent elements of the state. budget:
1. State. income is part of the state. income, which in the process of distribution becomes the property of the state.
2. State expenses - economic relations with the help of which the funds of the centralized monetary fund are used.
3. The ratio of income and expenses.
It can have three characteristics:
Spending exceeds income = budget deficit
Revenue exceeds expenditure = budget surplus
Balanced budget = balance between spending and income.
