- Term Definition
- Budget levels in Russia
- Revenues and expenditures of the budget
- Functions and meaning of the budget
- Structure and levels of the budget
- Deficit and surplus
- How the Russian budget is adopted
- Budget approval process
- Budget execution
- Subsidy, subvention, or grant?
Each state has its own budget. The definition of this term is familiar to most Russian citizens. In some cases, it is called the "main financial law" or "document" of the state. However, there are also regional and municipal budgets. Their functioning is unique. What is the structure of the budget system of the Russian Federation? How is the "main" financial law of the state adopted?
"Budget" is English for "bag". That is, a certain reserve, which today is most often understood as financial. It can be owned by a state, any of its constituent regions, a city, a family, or an individual. There is a budget for an organization that may not be related to the state. The term in question is universal. Everyone can have their own budget structure. Of course, this term, as a rule, sounds in relation to state affairs. What would be its correct definition?
The following is common among Russian experts. A budget is a list of income and expenses drawn up by the government of a country, region or city in relation to a specific time period, which is approved inestablished by law. Calculation of revenue and expenses, as a rule, is estimated - reflecting the most likely scenario.
In the Russian economy, the role of the public sector is very significant. Some experts define it as the leading one. And therefore, changes in the external environment that affect budget revenues can be considered as negative factors in the development of the national economy of the Russian Federation and the growth of citizens' incomes.
Budget levels in Russia
In Russian practice, there are several levels of budgeting and execution - federal, regional, and local. In unitary states, the regional level may be absent. In those where the traditions of federalism are especially strong, for example, in the USA, even municipal budgets can be divided into other formats.
There is a variant in which the figures for each level of the Russian budget are added up. A general set of financial indicators is formed. In this case, the consolidated budget of the country is obtained. It is used if you need to make a forecast or calculation of a macroeconomic nature.
Revenues and expenditures of the budget
From what sources does the state, region or municipality earn money? What are the main sources of the budget? Taxes, excise duties, duties and other related fees are most often reckoned as income. They are sent to the treasury irrevocably. Although in a number of cases the law provides for a certain kind of deductions, under which mechanisms that are relatively close in form to reverse payments from the budget are still involved.
Expenses include funds that, in accordance with the norms established by law, are directed to finance the tasks performed by state and municipal authorities. The interaction between the individual objects of receiving these funds is called the budget system. Budget expenditures can be classified according to two main criteria. First, it is their departmental affiliation. Expenses in this case are grouped based on the distribution of appropriations in relation to specific recipients. Secondly, an economic classification is also possible. In this case, the costs are grouped based on their nature, industry focus.
Functions and meaning of the budget
Supplement the definition of the concept of "budget" with information about what main functions it performs. First, it is a fair redistribution of financial resources within the national income. The fact is that different regions of the country, if we talk about Russia, have a different level of economic development. From where there is more income, aid goes to where there is a need for financial support. Secondly, the budget stimulates the development of the national economy by providing citizens working in government agencies with purchasing power. Thirdly, it ensures the development of key socially significant areas - education, medicine, the army.
Structure and levels of the budget
Let's consider how the state budget structure works. We have named its functions above. For their correct implementation, an appropriate system is needed that solves problems forredistribution of funds and subsequent control over their use. Thus, the budget is a resource, usually centralized, and providing for a hierarchy of subjects using it.
How is the distribution of powers for the development of the state financial resource? The main role here belongs to the Federal Treasury. How is the interaction between the center and the subject of the federation carried out in the field of solving departmental problems? The federal Ministry is responsible for the work in the field of education, exercising control over structures of lower rank. Similarly - in other departments - the Ministry of He alth, the Ministry of Internal Affairs. The structure of the budget in terms of the distribution of funds between the federal center and the regions in Russia is similar to the model of public administration. There are regional departments of the federal treasury. They are entrusted with the task of distributing and cash management of budgetary financial flows.
The budget of the region, thus, is mastered in the course of direct interaction of the authorities of the subject of the federation with the Treasury. At the same time, the legislation defines the channels through which the region can itself replenish its financial reserves. The budget of the region and other subjects of the federation can be replenished at the expense of regional taxes, as well as shares received from certain types of federal fees.
The situation is somewhat different when it comes to the municipal level. The city budget and its management are largely remote from the statecompetencies. Municipalities are called upon to extract revenues for its replenishment on their own. The main resources for this are the sale of property owned by the city or district, as well as paid services provided by municipal institutions. In some cases, the level of the local budget receives additional allocations from the state. Also, the municipal treasury is replenished at the expense of taxes collected in accordance with the legislation - directly, or as deductions provided for by regulatory acts from the structures of the Federal Tax Service. It is possible to replenish the city's budget at the expense of certain types of state fees collected by banks that operate in the territory of the municipality.
Municipal budgets, like their federal counterpart, can have a consolidated format. That is, to be a set of corresponding incomes and expenses, reflecting individual settlements. The budgets of which, in turn, can be formed by settlements located on their territory. The development of these local financial documents can be carried out at the level of self-government bodies independently.
The task of municipalities is to ensure the necessary balance of local budgets, compliance with the requirements established at the level of federal legislation. This includes a policy in the field of solving problems with the deficit execution of financial plans, debt obligations.
The main area of interaction between municipalities and state bodies in the field of budget policy is the reporting of the first inrelation to the second. In accordance with the procedure determined by the relevant legislative acts, the municipalities send reports to the regional authorities on how the local budget is executed.
Deficit and surplus
The budget can be deficit, surplus and balanced. In the first case, income for the same period is lower than expenses. In the second case - on the contrary. In the third one, equality is observed (with the minimum allowable deviations). Among economists, many experts consider a deficit to be the norm (provided that it is not very large). The planned budget in many cases is by default drawn up like this. As a rule, in established, competitive economies, there is always something to make up for it. What?
Firstly, this is the issue of various kinds of securities (usually government bonds). The investor buys them in exchange for a certain obligation (usually, this is the payment of interest after a while), the state uses the funds received to compensate for the budget deficit. Russia also has such bonds.
Secondly, it can be budget loans. These are allocations that can be obtained from regional and municipal financial reserves.
Thirdly, the Central Bank can help the budget by providing the necessary funds.
The above deficit replenishment mechanisms are internal. But there are also external resources. These include:
- sale of bonds on the international market;
- attraction of loans from foreign private structures;
- loans from foreign governments;
Often, internal and external mechanisms are activated simultaneously. Many experts believe that the more confidence national and international creditors have in the state's economy, the less fear the government may have about the budget deficit. Therefore, analysts believe, there is little point in being surprised that many developed countries, including the United States, have government debt equal to 100% of GDP and even more. This means that creditors have sufficient confidence in the stability of the economies of the countries where they buy bonds. However, there is also an opposite point of view. According to it, payments to the budget through loans cannot be provided indefinitely. Sooner or later, the state will run out of resources to service external debts.
How the Russian budget is adopted
Having considered what a budget is, the definition of this term, let's study how it is accepted. On the example of mechanisms operating in Russia. First, about how budgeting works.
The procedure in question involves determining the necessary amount of funds that the state needs to finance the work of departments responsible for solving certain problems. The draft budget is developed by the Ministry of Finance of Russia. As a rule, work on the budget of a certain year begins in January of the previous year.
First of all, the Ministry of Finance is modeling various scenarios within which the country's economy can develop. If they are approved by the Government, then the department begins to work out the sources of income and the structureexpenses. It is important to have time to do this before July 15. After that, the draft budget is again sent for consideration by the Government. He has a month to make proposals for finalizing the document. After - the budget goes to the State Duma for consideration. This process takes place in several stages.
First, the State Duma deputies themselves study the draft budget. It also involves experts brought in by the Budget Committee. Next, the document is sent to other structures of the State Duma, to the President and to the Accounts Chamber so that a conclusion is given. After passing through all these stages, the approval of the budget begins.
Budget approval process
This process, as well as the preparation of the main financial document of the state, begins in the State Duma. There are four readings in total.
As part of the first, State Duma deputies discuss the concept of the budget, compare it with the forecast for the development of the country's economy, as well as with priorities in tax policy. The main characteristics of the document are being studied - sources of income, expenses, the presence or absence of a deficit in the budget execution plans.
In the second reading, expenditure items are approved according to the established classification scheme. The value of the Fund for Support of the Subjects of the Russian Federation is determined. The period in which the State Duma needs to have time to consider the budget in the second reading, from the moment it was adopted in the first - 15 days.
As part of the third reading, specific items of expenditure are determined, and the departments responsible for the correct use of funds are fixed. The period within which the State Duma must meet from the moment of adoptiondocument in the second reading - 25 days.
The fourth reading includes consideration of possible amendments to the budget. We are also exploring options with the distribution of revenue and costs on a quarterly basis.
After all the stages of discussion in the State Duma, the draft budget is sent to the upper house of the Russian Parliament - the Federation Council. If the senators accept the document, it is submitted to the head of state for signature. After that, it acquires the status of a federal law. Starting next year, the provisions provided for in it will begin to be implemented.
The budget is a law that must be correctly enforced. The department responsible for it is the Federal Treasury, which is accountable to the Government of the Russian Federation. Some experts especially emphasize the fact that during the execution of the budget, executive power structures cannot make any amendments to the document. They must have the status of federal laws, which are also adopted with the participation of the State Duma, the Federation Council and the President. The budget is a document that, by default, assumes implementation in its original form. If there is a need to revise the expenditure items of the main financial document of the state (as a rule, in such cases we are talking about their reduction), then the sequestration procedure is implemented. In the Russian Federation, its peculiarity is such that if the authorities adopt an appropriate resolution, then budget expenditures are reduced in all respects - in every month from the moment the law on sequestration was adopted until the end of the year.
Control how the budget is executed, however, bothbranch. If these are representative structures, then we are talking about parliamentary control. If these are departments accountable to the government, then the corresponding supervision is called administrative.
The functions of parliamentary control are assigned to the Accounts Chamber. This department has the authority to conduct inspections - in the ministries, structures subordinate to them, as well as at enterprises that may be involved in one way or another in the execution of the budget. The Accounts Chamber undertakes to submit quarterly reports to the legislative structures on how the main state financial law is being implemented. Also, this parliamentary body gives opinions on the report generated by the Government, which also concerns the progress of budget execution.
How are similar procedures carried out at the regional and municipal levels? In general, the procedures are similar to those carried out by the federal authorities, subject to compliance with the Budget Code of the Russian Federation.
The biggest differences can be observed in the procedures carried out at the municipal level. So, for example, in a number of cities and regions of Russia, the role of the mayor of the city is the leading one, somewhat similar to the position of the President in relation to other authorities. But there are municipalities where the position of the head of administration is rather nominal. The local parliament plays a more significant role there.
The peculiarity of the approval and consideration of municipal budgets is that all facts relating to this process must be officially published. This applies to everyonestages of work of local authorities. Starting from the decision that the budget is approved and ending with a report on the execution of the main financial document of the municipality. Also, the information to be published includes quarterly information on how the budget is being executed.
Subsidy, subvention, or grant?
Having decided on the role of the budget, having studied the essence of this phenomenon, it will be useful to familiarize yourself with some terms related to the main financial document of the state. Among Russian experts, some of them are used regularly.
It's good to know what subsidies are. This term in Russia refers to the funds provided by the budget of one level in favor of another. Grants are needed in cases where the object of their receipt is in need of covering actual expenses. This measure of budgetary support is provided free of charge.
Often the term "subsidies" is used in the same context as "subventions". Sometimes even these two concepts are identified. But this is not true. Subventions in Russia are usually understood as funds that the budget of one level transfers to another also free of charge, however, for certain, specific purposes.
Both of the terms mentioned above are close to "subsidy". But the differences between it, a subvention and a subsidy, are noticeable. The object of receiving funds can be not only the budget of another level, but also an individual or an organization. The key criterion in this case is the state origin of capital. usually a subsidyThis is a partial refund. It is understood that the object of financing also finds other sources of income.
There is another interesting phenomenon - a budget loan. This is the provision of state financial support, in turn, on a fully reimbursable basis.