This definition highlights the following features:
1. The budget is a national, centralized fund of funds created to cover government expenses.
2. The budget is the financial plan of the state, which indicates its income and expenses for the coming year.
3. The budget is the main financial plan of the state, on the basis and in pursuance of which other financial plans are adopted.
Budget legislation and budget practice distinguish between the state budget and the state budget.
The formation function is performed by budget revenues, including taxes, loans, income from state property (enterprises), and income from the issue of paper money.
The main source of budget revenues is the income of economic entities received as a result of the primary distribution of the net national product, namely: wages of workers; income of employed persons; business profit (industry, agriculture, trade and other industries); rent; interest (profits of banks and depositors).
The distribution function belongs to specific target budget expenditures. The state, acting as an aggregate economic entity, takes into account the economic interests of other participants in the reproduction process, and therefore budget expenditures cover the entire economy. The structure of budget expenditures is subject to even more frequent changes than the structure of budget revenues.
The function of regulation is to stimulate and/or restrain the socio-economic development of both the country as a whole and individual territories, economic complexes, and economic entities through the budget mechanism.
The budget mechanism is an integral part of the financial mechanism, represented by a set of types and forms of organizing budget relations, specific methods of mobilization and use of budget funds, principles of planning and financing, conditions and methods of financial control.
Depending on the economic content of different groups of budget relations, three links are distinguished in the structure of the budget mechanism:
- mobilization of funds to the federal, regional and local budgets;
- spending budget funds by providing them to legal entities and individuals;
- interbudgetary distribution and redistribution of financial resources.
The control function allows us to identify the financial situation of specific economic entities, sectors of the national economy, territorial entities (subjects of the Russian Federation, municipalities), although not all of their financial resources pass through the budget.
The organization of the state budget and the country's budget system is determined by the budget structure.
The budget structure is the structure and principles of constructing the budget system, the relationships between its individual links, the legal basis for the functioning of budgets, the procedural aspects of the formation and use of budget funds.
The fundamentals of the budget structure are determined by the form of government of the country. An integral part of the budget device is the budget system.
The budget system is a set of budgets of the state, administrative-territorial entities, independent government institutions and funds in budgetary terms, based on economic relations, government structure and legal norms.
The construction of the budget system depends on the form of government and administrative structure of the country.
In accordance with the Tax Code of the Russian Federation: tax is a mandatory, individually gratuitous payment levied on organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management, for the purpose of financial support for the activities of the state and (or) municipal formations. Other conditions for establishing taxes include: categories of taxpayers, object of taxation, source of tax, tax base, tax period, tax rate, methods of taxation, procedure for calculating taxes, deadline and procedure for paying taxes, tax benefits.
The socio-economic essence and role of taxes and fees is manifested in their functions.
Fiscal function. Taxes are the most important source of state budget revenue, accounting for more than 90% of revenues.
Distribution function. With the help of taxes, the state redistributes financial resources between economic sectors, industries, and regions.
Regulatory function. Taxes as an economic lever are used by the state to stimulate the development of social production or to restrain it.
Control function. With the help of taxes, the state exercises control over the efficient use of financial resources.
The tax system is a set of essential tax conditions currently existing in a particular state. The latter include:
- principles, forms and methods of establishing, changing, canceling and paying taxes;
- types of taxes;
- rights and obligations of taxpayers, tax authorities and other participants in tax relations;
- forms and methods of tax control;
- responsibility of participants in tax relations;
- ways to protect the rights and interests of taxpayers.
The tax system establishes a system of federal, regional and local taxes in the Russian Federation (Fig. 3.4).
The concept of “tax system” is broader than the concept of “system of taxes and fees”. The tax system is characterized not only by the system of taxes and fees, but also by the principles of its construction, enshrined in the essential conditions of taxation. The tax system is determined by the procedure for establishing, introducing, amending, abolishing taxes and fees, the procedure for distributing taxes and fees between budgets of different levels, the rights and obligations of taxpayers (payers of fees), the organization of reporting and tax control, and the responsibility of subjects of tax legal relations.
Financial control and forecast of the amount of funds collected by them, received by the consolidated and federal budgets in the planned year and for the medium term, with appropriate justifications and calculations, is carried out by the Ministry of the Russian Federation for Taxes and Duties, the State Customs Committee of the Russian Federation and the Ministry of Property Relations of the Russian Federation.
The Ministry of the Russian Federation for Taxes and Duties, together with the Federal Service of Russia for Financial Recovery and Bankruptcy, forecasts the flow of additional funds into the federal budget in the medium term as a result of debt restructuring carried out by these bodies over the past three years.
Government spending
According to the levels of management, expenses are classified into expenses of the federal budget, federal subjects and local expenses.
The current budget classification provides for grouping budget expenditures according to three criteria:
- functional purpose;
- economic purpose;
- departmental appointment.
The functional group consists of sections of expenses associated with the implementation of the main functions of the state.
In general terms, the main functions of the state are unchanged and characteristic of all countries. The International Monetary Fund (IMF) offers the most general functional classification of expenses (Figure 3.5).
Economic grouping is a grouping of budget expenditures on an economic basis, that is, a reduction of expenses into single economic categories based on homogeneous characteristics.
Economic grouping allows you to obtain a detailed distribution of expenses by subject (wages, accruals, all types of business expenses, transfers to the population, etc.) and provides the possibility of a unified approach to all recipients in terms of budget execution.
The economic classification of expenditures of the state budget of the Russian Federation is based on the recommendations of the IMF and allows for international comparisons of budget indicators. In general, the economic classification of budget expenditures is presented in Fig. 3.6.
Current expenses are paid and gratuitous payments not related to the acquisition and creation of capital assets, or the increase in financial capital.
Capital expenditures include:
- compensation payments used for the acquisition of capital assets, strategic and emergency reserves, goods, land, intangible assets;
- gratuitous payments used by recipients for the purpose of acquiring capital assets, compensating for losses due to destruction or damage to fixed capital.
For the first time in domestic statistics, the indicator “Lending minus repayment (or net lending)” is combined with expenses and is considered as a factor determining the size of the budget deficit.
Net lending includes government policy transactions, loans and stock purchases minus loans repaid, stock sales, or returns of equity capital.
The departmental grouping forms budget expenditures on a departmental basis, that is, funds are allocated to ministries and departments in a total amount linked to certain functional sections.
The functional, departmental and economic structures of state budget expenditures must be interconnected. This makes it possible to move from one structure of government spending to another.
Budget deficit. Problems of balancing the budget
Public finance borrowing according to international statistical standards is not classified as revenue, but is considered as a source of deficit financing. So, from a financing point of view, the deficit can be determined by the formula:
Def = W - Front + Ost, (3)
where Def is the deficit, monetary units; Z — borrowings, monetary units; Pd - amount of debt repayment, den. units; Resume — decrease in the balance of liquid financial assets, den. units
Forms of financing the state budget are: issuance and placement of state treasury obligations (GKOs), loans from banks and international financial organizations, loans received from other levels of government or from state extra-budgetary funds, loans from foreign governments.
Management methods. If market methods predominate, then a smaller share of financial resources is concentrated in the budget; with administrative-command methods, the opposite is true. In the USSR, for example, about 80% of financial resources were redistributed through the state budget;
Specific conditions characteristic of a certain historical stage of the country’s development. In the USSR after “war communism” in 1923-26. the level of concentration of financial resources in the budget reached 90%. Then, in the concept of the essence of Soviet finance, financial resources were identified only with budgetary resources);
Goals and objectives of budget policy, defining priority directions for the distribution of budget funds in favor of certain sectors of the economy, territories, and certain categories of citizens. When carrying out pension reform, education and healthcare reform, reform to replace in-kind benefits with cash compensation, when reforming the armed forces, etc., significant financial resources are required. After reforms, the volume of budget funding for reformed industries should decrease, and therefore the level of concentration of financial resources in the budget should decrease, but at the time of reforms the level of concentration increases;
Historical traditions inherent in the respective state. In Russia, the state structure in management was strong, so there is a higher degree of concentration of financial resources in budget funds compared to other countries.
The combination of the above factors determines the specific volume of the budget fund. This occurs in the process of budget planning, which places high demands on the validity of budget calculations based on the preparation of multivariate budget calculations, taking into account the scientifically based need for funds of business entities, determining the effectiveness and feasibility of budgeted expenses.
2. The maneuverability of the budget fund is achieved (Diagram 1.7):
Compliance with the principle of general (total) coverage of expenses,
Using budget loans,
The ability to make changes to approved budget assignments,
Formation and use of various types of budget reserves.
Total cost coverage principle means that all budget expenses must be covered by the total amount of budget revenues and revenues from its deficit. Budget revenues cannot be linked to certain budget expenses, with the exception of income from targeted budget funds, funds from targeted foreign loans, and in other cases determined by the laws on the federal budget for the next financial year. Compliance with this principle ensures the possibility of free distribution of budget funds in any areas of expenditure during the formation of the budget, as well as uninterrupted financing of expenses provided for by the law on the relevant budget.
The principle of cash unity, provided for by the Budget Code of the Russian Federation as the basic principle of budget execution, means that all income and receipts from sources of financing the budget deficit are credited to a single budget account and all expenses provided for in the budget are made from it. Compliance with this principle allows you to consolidate all income and receipts in the account and direct them to budget recipients based on approved budget assignments.
Budget loans are used to cover intra-annual cash gaps between budget expenses and revenues in the event of insufficient working cash. They are provided for a period of no more than six months and must be repaid within the current financial year.
Provided by budget legislation possibility of making changes to approved budget assignments allows you to ensure financing of activities provided for by the budget within the framework of actually received budget revenues, create legal grounds for the implementation of additional expenses not provided for by the budget, and also ensure the redistribution of budget funds during budget execution. The solution to these problems is achieved by reducing budget expenditures when the revenue plan or receipts from sources of financing the budget deficit are not met; using additional revenues received during budget execution either to reduce the size of the budget deficit and payments that reduce budget debt obligations, or to carry out additional expenses in excess of those approved by the budget, as well as by moving budget funds by managers of budget funds between budget recipients.
Budget reserves ensure stability and mobility of the budget fund. They mean a part of budget funds isolated during budget planning, intended to ensure uninterrupted financing of both planned and unforeseen expenses that arise suddenly and are of an emergency or random nature (Diagram 1.9). Budget reserves are part of financial reserves, however, unlike other types of financial reserves, budget reserves have greater maneuverability and versatility, since they can be used in any industry and area of the economy, are global in scale, covering all levels of government - federal, regional and local .
The need to create budget reserves is associated (Diagram 1.9) with:
Possible errors and miscalculations made during budget planning, especially in terms of planning difficult to predict key indicators of socio-economic development (economic growth rate, exchange rate dynamics, inflation rate, energy price level, etc.);
The need to eliminate emerging imbalances in the process of budget execution,
Additional unforeseen expenses.
Budget reserves are used in the following cases (Diagram 1.10):
If the revenue side of the budget is not met in the event that it is impossible to balance income and expenses through planned reductions in expenses;
To compensate for damage caused by natural disasters;
To cover intra-annual cash gaps.
Budget reserves are created in budgets of all levels and types. Their main types are (diagram 1.11):
Reserve Fund of the President of the Russian Federation;
Reserve Fund of the Government of the Russian Federation;
Reserve Fund of the Government of the Russian Federation for the Prevention and Elimination of Emergency Situations and Consequences of Natural Disasters;
Contingency funds for executive authorities of constituent entities of the Russian Federation and local governments;
Working cash;
Free balance of budget funds at the beginning of the current financial year.
The following are subject to legislative approval:
The size of reserve funds (within the framework of laws or decisions on the budget for the next financial year);
Restrictions on the areas of use of reserve funds.
Regulatory acts of executive authorities regulate the procedure for spending reserve funds. Financing of activities from reserve funds is carried out on the basis of a written order of the executive authority.
The legislation prohibits the creation of reserve funds of legislative (representative) bodies (Article 81 clause 2, Article 153 clause 2 of the Budget Code of the Russian Federation).
The total amount of reserve funds in the federal budget cannot exceed 3 percent of approved federal budget expenditures.
The size of reserve funds in the budgets of the constituent entities of the Russian Federation and local budgets is established by the legislative (representative) authorities of the constituent entities of the Russian Federation and local governments when approving their own budgets for the next financial year.
The maneuverability of the budget fund is manifested both in the process of its formation and use (Diagram 1.7). Thus, maneuverability during the formation of the budget fund is manifested in the absence of assignment of certain incomes to the corresponding budget expenses, which allows, already during the formation of the budget, to maneuver incomes, directing them to the implementation of expenses identified as priorities, in accordance with the goals and objectives of budget policy. Other tools for ensuring the maneuverability of the budget fund during budget planning are the use of working cash, as well as budget loans.
The need to ensure the maneuverability of the budget fund during its use is due to the fact that the indicators actually achieved during the budget year (economic growth rates, inflation rates, income indicators and receipts from sources of deficit financing) deviate from those provided for in the budget. During budget execution, maneuverability is ensured by observing the principle of cash unity, using all types of reserves, including working cash, budget loans, and making changes to budget assignments. Thus, individual instruments (for example, budget loans and working cash) ensure the mobility of the budget fund both during its formation and during its use.
To manage the funds of state extra-budgetary funds, organizations of the same name have been created, which are financial and credit institutions, the activities of which are regulated by approved regulations (or charters), which define the tasks and functions of these organizations for managing the funds' funds. To understand this issue, it is necessary to understand that the same term refers to both a state extra-budgetary fund (as a fund of funds) and an organization entrusted with the functions of managing the funds of the fund (Diagram 1.17).
2. Budget system of the Russian Federation
In budget legislation, the concepts of “budgetary device” and “budgetary system” are used as synonyms. Meanwhile, in Russian and foreign economic literature, these concepts differ, while the concept of “budgetary structure” is interpreted as broader than the concept of “budgetary system”.
The budget structure of any country is the organizational structure of the budget, reflecting both its structure and forms of interaction (Diagram 1.18). The budget system, as the most important element of the budget structure, is a set of budgets of all its state and administrative-territorial entities, based on economic relations and the state structure of the country, united on the basis of certain principles and having relationships between themselves established by law (Diagram 1.19). Thus, the budget device is a broader concept than the budget system, including, in addition to the budget system itself:
Budgetary powers of state authorities and local governments;
Among the factors determining the construction of the state budget system, the following should be highlighted:
Form of government (federal or unitary);
Political regime (democratic, totalitarian, liberal democratic, etc.);
Historical and national features of the development of the state;
Goals and objectives of economic and financial policy.
The primary element of the budget system is the types of budgets. Type of budget is the form of organization of budgetary resources of a specific government body or local government body, the financial basis of which it is (Diagram 1.20). The set of types of budgets corresponding to a certain level of state power or local self-government form the level of the state budget system (Diagram 1.20).
Thus, the number of levels of the budget system is directly derived from the number of levels of the system of state power and local self-government in the state. The budget system of a unitary state includes two levels - central and local budgets; in turn, the budget system of the federal state is three-level and combines, along with the federal budget (central budget), the level of regional budgets and the level of local budgets (Diagram 1.21).
The upper level of the budget system in both unitary and federal states is always represented by one budget - the budget of the central government in unitary states or the federal budget in federal states. The second level of the budget system, like the third, is represented by different types of budgets.
In states with a federal structure, the budgets of the middle level of the budget system may relate to the federal budget in different ways. If the relationship between the budgets of the constituent entities of the federation and the federal budget is built in accordance with the principle of equality, this is symmetrical federation with symmetrical budgetary rights of the subjects of the federation. If the relationship between the subjects of the federation and the federal center is characterized by inequality, this asymmetrical model budgetary system of a federal state with unequal budgetary rights of the subjects of the federation.
There are significant differences in the organization and nature of the functioning of budget systems in countries with liberal democratic And administrative command control systems. First of all, the most important principle building a budget system is independence each budget, due to the broad democratic rights of each government agency; in states with an administrative-command management system, the budget system is based on principle of unity when each budget acts as part of the unified state budget of the country and the principle of centralism, meaning not only a high degree of centralization of budget funds at the top level of the budget system, but also almost limitless possibilities for the redistribution of funds between parts of the budget system and types of budgets based on centrally made decisions (for example, the budget system of the former Soviet Union).
In democratic states characterized by market economic methods, budget systems may differ in the degree of independence of each budget included in the country's budget system. Depending on this, budget systems differ American and Western European type.
Budgets within the system American type are not only independent, but also autonomous; Here the principle of “one tax – one budget” is, as a rule, fully implemented.
In budget systems Western European type the independence of each budget is organically combined with the possibility of sub-federal and municipal bodies receiving stable financial assistance from other budgets in the presence of sharp fluctuations in the level of social security of citizens throughout the country. Such budget systems use methods of budgetary equalization of social security for citizens of different territories, which is due to the socially oriented model of the economy (for example, the budget system of Germany).
The country's budget system can be presented in an expanded version - then it includes not only the totality of budgets of all levels, but also a set of extra-budgetary funds. The concept of an expanded budget system is used in the practice of international comparisons, when, along with only budget indicators, it is important to take into account the quantitative parameters of extra-budgetary funds.
The basis for building budget systems of federal (and often unitary) states is fiscal federalism. Fiscal federalism is an organization of budgetary relations that allows, under the conditions of the independence of each budget, to provide its residents throughout the entire country with an equal and state-guaranteed list of public services (security, social protection, education, etc.), and for this purpose - to organically combine fiscal interests of the federation with the interests of its subjects; distinguish between budget powers, budget expenses and revenues; distribute and redistribute budget resources between the federal budget and the consolidated budgets of the constituent entities of the federation, leveling the budgetary provision of territories that find themselves in different socio-economic, geographical, climatic and other conditions.
Federalism, influencing the country's budget system, predetermines the presence of the following principles of its construction:
· equality of budgetary rights of federal subjects and municipalities ;
· delimitation of budgetary powers between government bodies of different levels and local governments in accordance with the tasks and functions assigned to them;
· differentiation of budget expenditures and revenues between levels of the budget system in accordance with the budgetary powers of government bodies at different levels and local governments;
· transparency of interbudgetary redistribution of funds.
The principle of equality of budgetary rights subjects of the federation (municipalities) means the establishment by the state (subject of the federation) of uniform and binding for all subjects of the federation (municipalities) norms and rules that define the competence of regional government bodies (local governments) in the field of regulation of budgetary relations and implementation of the budget process.
The principle of delimitation of budgetary powers between government bodies of different levels and local self-government bodies means the delimitation of jurisdiction, rights and responsibilities in the field of budgetary relations between government bodies of the federation, government bodies of the constituent entities of the federation and local government bodies.
The principle of separating expenses and income between the levels of the budget system means assigning on a long-term basis expenses (in accordance with the powers assigned to the authorities and management bodies), corresponding types of income (in whole or in part) to the government bodies of the federation, government bodies of the constituent entities of the federation, and local government bodies.
Transparency of interbudgetary redistribution of funds means the establishment of a system of redistribution of budget funds between the levels of the budget system that would be clear and understandable for all subjects of the federation, would be based on the principles of justice and would provide all territories with equal opportunities to equalize their budgetary security.
The key point in the content of fiscal federalism is the unity of interests based on the combination of interests of budgets at all levels. This combination will not infringe on the interests of the federal budget if the budget system clearly delineates the powers between government bodies at different levels and local governments. The relationship within the subjects of the Federation, that is, between regional authorities and local governments, largely depends on how relations develop between the federal center and the subjects of the Federation.
The modern budget system of the Russian Federation was formed under the influence of historical conditions for the formation of Russian statehood. Until 1991, the budget system of the USSR (one of the union republics of which the RSFSR was) united the union budget, the state budgets of 15 union republics (which included the republican budgets of the union republics, the state budgets of the autonomous republics and local budgets) and the state social insurance budget. The Unified State Budget of the USSR, which consolidated all of the above budgets, when each lower budget was included as an integral part in a higher budget, was approved by the highest legislative body of the country - the Supreme Council of the USSR. Thus, when approving the State Budget of the USSR, the volume of income and expenses of all lower budgets was approved. At the same time, after the adoption of the country’s unified budget, each representative body of power (republican, regional, regional, etc.) adopted the corresponding laws or decisions consolidated budget(budget of the republic, budget of the region, budget of the region).
Thus, the country’s budget system before the formation of the Russian Federation as a sovereign state was built on two main principles- unity and democratic centralism, which were proclaimed in the laws regulating the budgetary rights of the USSR, union and autonomous republics, local Councils of People's Deputies. Unity The budget system presupposed, first of all, the drawing up and approval of a single (consolidated) state budget by a legislative act of the country's highest representative body of power - the Supreme Soviet of the USSR. The unity of the budget system was due to the unity of the revenue base, a unified plan for the economic and social development of the country, unified principles and rules of budget planning and budget financing.
Principle democratic centralism consisted of a combination of centralized management of the entire budget system from a single center with the provision of certain budget rights to republican and local authorities. Centralism was expressed in the presence of national taxes and revenues that were uniform for all budgets, a high degree of concentration of budget funds in the union budget (it reached 70% in some years) and, accordingly, the financial dependence of republican and local authorities on the union center, as well as in the widespread use of the budget system regulation (through the annual redistribution of budget funds, mainly through the standards of deductions from national taxes and income and subsidies provided by higher authorities to lower ones). With such a system of distribution of budget funds, democracy as a principle for constructing a budget system consisted only in the need to draw up and approve the consolidated budget of its territory by the relevant authority. However, at the same time, the basic parameters laid down in the unified State budget of the USSR could not be violated - the amount of income established by a higher authority for a specific budget was reduced, and the individual standard for deductions from regulatory income determined for the corresponding budget was changed.
The formation of the Russian Federation as an independent state predetermined radical changes in the composition and principles of constructing the budget system, which was initially reflected in the adoption of the RSFSR Law of October 10, 1991 No. 000-1 “On the fundamentals of the budget structure and budget process in the RSFSR.” This law for the first time formulated the principle of independence of budgets included in the budget system of the RSFSR. In accordance with this law, the budget system was defined as the totality of the republican budget of the RSFSR, the republican budgets of the republics within the RSFSR, the budgets of national-state and administrative-territorial entities of the RSFSR. After the adoption of the Constitution of the Russian Federation in 1993, the concept of budgets of national-state and administrative-territorial entities of the Russian Federation was specified in the Law of the Russian Federation of April 15, 1993 No. 000-1 “On the fundamentals of budgetary rights and rights for the formation and use of extra-budgetary funds of representative and executive bodies of state power republics within the Russian Federation, autonomous region, autonomous okrugs, territories, regions, cities of Moscow and St. Petersburg, local governments,” according to which they were presented:
Republican budgets of the republics within the Russian Federation;
Regional budget of the autonomous region;
District budgets of autonomous okrugs;
Regional budgets of territories;
Regional budgets of the regions;
City budgets of the cities of Moscow and St. Petersburg;
Local budgets.
7) effectiveness and efficiency of use of budget funds;
8) general (total) coverage of budget expenses;
9) transparency (openness);
10) reliability of the budget;
11) targeting and targeted nature of budget funds
12) jurisdiction of budget expenditures
13) unity of the cash register.
It should be noted that the first four principles relate to the construction of the budget system of the Russian Federation; the principles of “effectiveness and efficiency of use of budget funds” and “targeting and targeted nature of budget funds” - to the organization of the budget financing system, and the remaining principles - to the organization of the budget process. Thus, in Art. 28 of the Budget Code of the Russian Federation talks about heterogeneous principles, some of which determine the actual construction of the budget system, others - the nature of its functioning.
The principle of unity of the budget system of the Russian Federation means (schemes 1.26), (test 1.6):
Unity of budget legislation of the Russian Federation;
Unity of principles of organization and functioning of the budget system of the Russian Federation;
Uniformity of forms of budget documentation and reporting;
Unity of the budget classification of the budget system of the Russian Federation;
Unity of sanctions for violation of budget legislation of the Russian Federation;
A unified procedure for establishing and fulfilling expenditure obligations;
A unified procedure for the generation of revenues and expenditures of budgets of different levels of the budget system of the Russian Federation;
Maintaining budget accounting and reporting of budgets at different levels of the budgetary system of the Russian Federation and budgetary institutions.
The content of the principle of unity of the modern budget system of the Russian Federation is radically different from the principle of unity of the budget system in the conditions of the administrative-command system of economic management, which meant the consolidation of all budgets in a single budget and its approval in the form of a law. In contrast to this model, the modern budget system of the Russian Federation can be presented in the form of a “disassembled nesting doll”, all of whose components are at the disposal of various state authorities and local governments and are approved by separate laws (decisions) on the corresponding budget. Therefore, the principle of unity means only the creation of a unified legal and organizational basis for the functioning of the budget system and presupposes the unity of the legal framework, monetary system, forms of budget documentation, principles of the budget process in the Russian Federation, sanctions for violation of the budget legislation of the Russian Federation, a unified procedure for financing expenditures of budgets of all levels, as well as maintaining accounting records of budget funds at all levels.
The principle of budget independence means (schemes 1.27), (test 1.8):
The right and duty of state authorities and local self-government bodies to independently ensure the balance of their respective budgets and the efficient use of budget funds;
The right and obligation of state authorities and local governments at the appropriate level of the budget system of the Russian Federation to independently carry out the budget process, except for cases provided for by the Budget Code of the Russian Federation;
The right of state authorities and local governments to establish, in accordance with the legislation of the Russian Federation on taxes and fees, taxes and fees, the income from which is subject to credit to the relevant budgets of the budget system of the Russian Federation;
The right of state authorities and local governments to independently determine the forms and directions of spending budget funds (with the exception of expenses, the financial support of which is carried out through interbudgetary subsidies and subventions from other budgets of the budget system of the Russian Federation);
It is inadmissible to establish expenditure obligations to be fulfilled at the expense of revenues and sources of financing deficits of other budgets of the budget system of the Russian Federation, as well as expenditure obligations to be fulfilled simultaneously at the expense of two or more budgets of the budget system of the Russian Federation, at the expense of consolidated budgets or without defining a budget , at the expense of which the corresponding expenditure obligations must be fulfilled;
The budget is a form of formation and expenditure of a fund of funds intended to financially support the tasks and functions of the state. The budget performs the following tasks: 1. redistribution of national income. 2. government regulation and stimulation of the economy. 3. financial support for the social sphere. 4. control over the formation and use of centralized funds of funds.
Construction of a budget system.
Budget structure is a set of principles for constructing the state budget and the country's budget system, their structure, and interrelations. The construction of the budget system depends on the form of government and administrative structure of the country. In accordance with the Budget Code, the budget system of the Russian Federation consists of 3 levels: 1. federal budget and budgets of state extra-budgetary funds. 2. budgets of the constituent entities of the Russian Federation. 3. local budgets.
The federal and territorial budgets include targeted budget funds, formed from targeted sources and have targeted spending of funds (environmental, restoration and protection of water resources). The budgets of each level are independent and are not included in each other. The construction of the budget system in the Russian Federation is based on the following principles: 1. unity of the budget system. 2. differentiation of income and expenses between levels of the budget system. 3. independence of budgets at various levels. 4. balanced budgets. 5. publicity.
The budget structure determines the organization of the state budget and the country's budget system, the relationship between its individual links, the legal basis for the functioning of budgets included in the budget system, the composition and structure of budgets, the procedural aspects of the formation and use of budget funds, etc.
The fundamentals of the budget structure are determined by the form of government of the country, the main legislative acts in force in it, and the role of the budget in social reproduction and social processes.
An integral part of the budget device is the budget system.
The budget system is a set of budgets of the state, administrative-territorial entities, independent government institutions and funds in budgetary terms, based on economic relations, government structure and legal norms. The budget system is the main link in the financial system of the state.
The construction of the budget system depends on the form of government and administrative structure of the country. Russia is a federal state. A federal state is a form of government in which state entities or administrative-territorial entities included in the state have their own statehood and have a certain political independence within the limits of the competencies distributed between them and the center. The budgetary system of the federal state is three-tier and consists of the federal budget, budgets of members of federations and local budgets.
The budget system of the Russian Federation consists of budgets of three levels:
- * first level - the federal budget of the Russian Federation and the budgets of state extra-budgetary funds;
- * second level - budgets of the constituent entities of the Russian Federation (89 budgets, of which: 21 republican budgets, 55 regional and regional budgets, 10 district budgets of autonomous okrugs, the budget of the Autonomous Jewish Region, city budgets of Moscow and St. Petersburg) and the budgets of territorial state extra-budgetary funds;
- * third level - local budgets (about 30 thousand city, district, township and rural budgets).
The set of budgets of all levels constitutes the consolidated budget of the Russian Federation, which is presented in Diagram 1.
Scheme 1. Budget system of the Russian Federation
The consolidated budget of the Russian Federation is the federal budget and the consolidated budgets of the constituent entities of the Russian Federation. Consolidated budgets allow you to get a complete picture of all the income and expenses of the region or the Federation as a whole; they are not approved, that is, they do not have a legal burden and serve for analytical and statistical purposes.
The consolidated budget is used in budget planning and forecasting and is developed simultaneously with the draft budget of the appropriate level. Its quantitative characteristics serve to confirm the reality and validity of budget indicators at all levels of the budget system.
In the conditions of a federal state with a complex construction of the budget system, its stability, like that of the entire state as a whole, largely depends on the nature of interbudgetary relations. The problem of optimal construction of a model of interbudgetary relations is one of the most pressing. Currently, there is a search for a dynamic balance between federal authorities and state authorities of the constituent entities of the Russian Federation, local governments in relation to the budgetary sphere.
Interbudgetary relations represent the relationship between state authorities and local governments on the distribution of regulatory revenues and the redistribution of funds between budgets. These relationships are determined by the budget device. They should be built on the basis of economic ties within a single country and the principles laid down in the Constitution of the Russian Federation, on the basis of which the task of achieving optimal interaction of all budgets and giving this interaction a systematic character is set.
The content of interbudgetary relations is based on the constitutional mechanism for the distribution of budgetary rights between the authorities of the Russian Federation, its constituent entities and local governments. The broadest competence in the field of regulation of budgetary legal relations is vested in the state authorities of the Russian Federation. Subjects of the Russian Federation and local governments have a more limited list of budgetary rights.
The Budget Code defines a complete list of budgetary rights of the Russian Federation. In particular, in the sphere of budgetary relations at the federal level, the establishment of general principles for the organization and functioning of the budgetary system of the Russian Federation is being established, laws are being adopted that define the legal basis for the functioning of the budgetary system of the Russian Federation. In the same order, the legal status of subjects of budgetary legal relations is established, the procedure for regulating interbudgetary relations, the fundamentals of the budgetary process in the Russian Federation, the grounds and types of liability for violation of the budgetary legislation of the Russian Federation are determined.
As an example of the relationship (tax distribution) between the links of the budget system of the Russian Federation, I will give Table 1.
Table 1. Distribution of main taxes between the Federal, regional and local budgets of Russia
Examples of the interrelation of links in the country's budget system.
- 1. The “Education” project is, on the one hand, strengthening the material and technical base of schools, and on the other, supporting teaching and children's teams, and providing material incentives for innovative teachers. For these purposes in 2006-2007. about 80 billion rubles were allocated. The national project “Health,” in addition to the development of medical science, is aimed at creating and developing a system of paramedic and obstetric stations, strengthening the material and technical base of district hospitals, and updating the fleet of ambulances. For these purposes in 2006-2007. About 140 billion rubles were allocated from the federal budget. Otherwise, local budgets would have to independently find the necessary funds.
- 2. As for the issues of financing housing construction in the regions, a large burden in updating housing and communal services infrastructure falls on the shoulders of municipalities. However, there is also serious financial support from the federal budget in this area. For example, for the implementation of the national project “Affordable and Comfortable Housing” in 2006-2007. more than 80 billion rubles were allocated. In addition, in 2007, the state corporation “Fund for Assistance to the Reform of Housing and Communal Services” was created, a property contribution to which amounted to 240 billion rubles.
- 2. Tests
- 1. With the help of finance, redistribution is carried out:
- A) income of commercial organizations,
- B) income of society in favor of the state,
- C) efficient use of society's income.
The state budget- This is an annual plan of government expenditures and sources of their financial coverage.
The most important functions of the state budget:
q accumulation of financial resources in the hands of government bodies for the purpose of distribution and redistribution between industries, regions and segments of the population;
q ensuring the maintenance of the state with its institutions designed to implement the functions of state power;
q stimulating economic growth in the most important areas for the country;
q social protection of the poorest segments of the population, pensioners and the younger generation.
Fiscal policy- regulation of the level of government revenues and expenditures in order to influence the overall level of economic activity, maintain market balance and stimulate the development of certain areas of the national economy.
Fiscal policy is the policy of government spending, tax rates, and government borrowing. The state budget is a concentrated expression of economic policy.
The structure of the state budget reflects the structure budget revenues And budget expenses.
Budget revenues- revenues to the state treasury. They are formed from tax and non-tax budget revenues. Tax revenues are various types of mandatory taxes and fees from the population, entrepreneurs and state-owned enterprises. Non-tax revenues to the budget - revenues from the use of state property and state property, from foreign economic activity, from the privatization of state property, from government loans, etc.
Budget expenses- financial resources allocated for the needs of economic and social development, defense, repayment of public debt, etc.
Functions of budget expenditures.
The main functions of budget expenditures include: political, social and economic.
Political functions consist in maintaining the existing socio-economic system and include costs such as government, army, security, foreign policy, media support, etc.
Social features consist of stabilizing the socio-economic situation in the country, mitigating differences in income levels and living standards of various income groups, supporting industries providing social services (health care, education, culture, etc.).
Economic functions consist of:
q creating a competitive market environment in the country’s economy through anti-monopoly measures, support for small and venture entrepreneurship;
q structural restructuring of the economy by supporting individual sectors that are most important;
q facilitating the entry of domestic producers into the foreign market;
q fulfillment of obligations to repay internal and external debt.
The challenge is to achieve an organic combination of different functions.
The ideal execution of the state budget is the complete coverage of government expenses with revenues, and even better, the presence of a balance of funds (surplus) of the state budget. However, this situation is rare in life. More often, there is a state budget deficit, i.e., an excess of expenses over income.
Budget deficit- excess of government expenditures over revenues. Within the framework of the Keynesian concept, it can be considered as additional domestic demand from the state. In accordance with the monetarist concept, this is the greatest evil, giving rise to many negative consequences, which must be combated by all means.
Ways to cover the state budget deficit:
§ internal government loans. They are carried out in the form of the sale of government securities, loans from extra-budgetary funds;
§ external government loans. They are carried out in the form of loans from private entrepreneurs, states and international financial organizations;
§ issue of banknotes by a state bank - issue of banknotes.
Government loans- receipt by the state on a repayable basis and for a certain period of time. Loans are widely used in the economic policy of the state: internal state loans from individuals and legal entities, loans from foreign creditors.
Budget system- the totality of budgets of all levels of government, the procedure for their development, methods for generating revenue, the procedure for forming expenditure. The main principle of the formation of the state budget in market conditions is an approach to its construction based on the category of public goods that are provided by the state to taxpayers.
The basis of the country's budget system is formed by federal budget And consolidated budget.
Federal budget - annual breakdown of federal government revenues and expenses. This is the most important means for government agencies to pursue an active economic policy.
Consolidated Budget-an annual breakdown of all government revenues and expenses, including both the federal level and the level of the constituent entities of the Federation, as well as municipalities. It reflects the possibilities and directions of influence of the federal government and the administration of the constituent entities of the Federation in pursuing economic policy in the country.
Development budget- a method of practical implementation of the leading role of the state in the implementation of investment policy. It reflects government expenditures on developing the potential of social production.
The main sources of the development budget in Russia are:
§ related foreign loans guaranteed by the Russian government;
§ investment loans from the World Bank and the European Bank for Reconstruction and Development;
§ funds from internal borrowing sources. The use of development budget funds is carried out on a competitive, repayable, urgent and paid basis in the manner established by the Government. The expenditure of development budget funds is carried out through a special account opened in the Main Directorate of the Federal Treasury of the Ministry of Finance.
Fiscal federalism- autonomous functioning of budgets of individual levels of government, based on legally formulated norms.
Fiscal federalism is a way of organizing inter-budgetary relations that allows central authorities to successfully perform the functions of uniting individual regions into a single whole state. At the same time, fiscal federalism allows the subjects of the Federation and local authorities to exercise their independence in the disposal of financial resources in accordance with the extent of their responsibility and competence for fulfilling the obligations assigned to these levels of government to provide public services. The most important element of the practical implementation of fiscal federalism is Federal Fund for Financial Support of Regions.
Federal Fund for Financial Support of Subjects of the Russian Federation is formed in the amount of 15% of the amount of actual tax revenues to the federal budget (with the exception of 10% personal income tax and import duties). This fund is an effective means of supporting depressed regions of the country.
The institutions involved in the development and implementation of the state budget include: the Ministry of Finance, the Ministry of Economy, legislative bodies, the Treasury, and the Chamber of Accounts.
Ministry of Finance- the main body responsible for the development and implementation of the state budget. Treasury Department- government financial body in charge of executing the state budget. It organizes the collection of taxes, fees and duties, releases funds for expenses provided for by the state budget, and issues paper money. The Treasury may have an independent statute or be one of the divisions of the Ministry of Finance, as is the case in Russia.
Functions of the Treasury in the Russian Federation:
§ carrying out a rational state budget policy;
§ management of federal budget revenues and expenditures;
§ increasing the efficiency of financing government programs;
§ control over the receipt and use of public funds.
Along with the treasury, these functions are also carried out by Accounts Chamber under the Federation Council.
State debt- the amount of debt of the state to both internal and external creditors for loans and unpaid interest on them. Debt servicing is a mechanism for regular payments of interest on loans received. Public debt is determined by the dynamics budget deficit. The larger the budget deficit, the faster the public debt grows. Growing public debt has complex consequences for product distribution. Depending on the debt placement market, government debt may be internal And external
Internal debt of the state - accumulated debt of the state to internal creditors: banks, financial organizations, population.
External debt of the state - accumulated state debt on loans received from other states or international financial organizations.
Government securities - means of borrowing by the state. They come in the following forms: bonds, savings certificates, treasury bills.
Government bonds - a debt obligation of the state issued for a certain period with redemption and payment of a pre-agreed interest. Savings certificate - tickets of a special type of government loan with a high interest rate and redemption only after a specified period. Treasury bills are bills that can be bought and sold freely in the money market.
Basic concepts of the state tax system.
Tax, duty, fee and other similar payments (hereinafter referred to as taxes) are a mandatory contribution to the budget of the appropriate level or to an extra-budgetary fund, made by payers in the amounts, manner and under conditions consistent with current legislation. As follows from the definition and centuries-old tax experience, tax is:
1) seizure of part of the income or property of the subject, non-equivalent with respect to the taxpayer, i.e. payment of the tax is not accompanied by a reciprocal individual obligation on the part of the tax authorities;
2) payments determined by the size and timing of payment;
3) legally justified amounts and payment procedures for each type of tax and fee;
4) public coercion, i.e. application in case of non-payment, incomplete payment or violation of terms of legally justified economic and administrative sanctions.
Tax system there is a set of taxes legally levied on the territory of the country; the competence of government and management bodies in relation to taxes, including the distribution of incoming payments among the links of the budget system; state tax authorities that provide collection and control over the payment of taxes.
The source and object of taxation differ.
Source of tax payments, those. the thing from which the tax is paid is the social product (taxpayer’s income). Theoretically, taxes should not affect capital, otherwise normal reproduction becomes impossible.
Object of taxation - it is a quantifiable economic phenomenon subject to taxation. The objects of taxation are income (profit), the cost of certain goods, certain types of activities, transactions with securities, the use of natural resources, property of legal entities and individuals, transfer of property, added value of products, works and services and other objects established by legislative acts.
Tax base – This is the part of the property on which taxes are practically charged. The tax base is always less than the object of taxation, since there is a tax-free level of wages, income and other objects, as well as tax benefits.
The part of the tax base withdrawn in the form of taxes and measured as a percentage is called tax rate or taxation norm. Tax rates are established and changed by law. They are fixed(for example, the established rate of taxation of any product with VAT) and sliding(varying depending on the amount of income). For a number of taxes, maximum and minimum tax rates are determined. Maximum rates in the economic press are often called basic, i.e., the rates at which the taxpayer must pay without taking into account tax benefits, tax exemptions, and their deferrals.
Each tax has its own tax rates and tax base. They are vital for business entities. A synthetic indicator of the severity of taxes for companies, freelancers or employees is the so-called tax burden, or the share of all taxes paid in the annual income of any group of entities.
The tax burden of companies and individuals depends not only on the order and calculation of the tax base, tax rates and multiplicity of taxes, but also on the amount of income.
Along with indicators of the share of taxes paid in the annual income of groups of taxpayers, it is calculated national tax burden, or tax burden on GDP and net social product. These indicators, along with the role of the public sector in the national economy and the level of development of national economic programming, are indicators of the intensity of GRE.
Modern developed countries pay special attention to the taxation system, which is becoming one of the main instruments of the State Expedition. In European countries, there are trends towards greater integration of national economies and, consequently, greater interconnectedness of tax systems. Small taxes are becoming obsolete and what remains are well-established taxes with a broad tax base that are easy to collect (income, VAT, property, corporate profits).
Russian legislation is also undergoing changes towards improving and simplifying the taxation system. Many fees and taxes were abolished (tax on excess wage fund, indirect special tax, fee for using the name “Russia”). More attention is now being paid to local taxes, the purpose of which is to develop the infrastructure of cities, provide social programs, and strengthen the local economy.
In the socio-economic life of the country, taxes have the following functions:
1) ensuring financing of government expenditures - fiscal function;
2) maintaining social balance by reducing inequality between the real incomes of individual social groups of the population - social function;
3) regulation of economic conditions, employment structure, accumulation, foreign economic relations, scientific and technological progress and other objects - regulatory function
