Budget Expenditure

Budget expenditures are the funds allocated from the budget. The only exception to this is that they are a source of financing budget deficits. Such costs are the basis of a complex system of relationships that cover not only state authorities, but also members of civil society. The distribution of state budget funds for individual items of expenditure is fixed in special laws. Planning of the budget, its discussion, as well as the process of execution and control of expenditures are elements of the overall budget process.

The quantitative assessment of expenditures is made up of such indicators as the rate of their growth, their total volume, dynamic growth in relation to the gross domestic product, the structure of these expenditures, as well as the amount of state revenues, which in turn depends on the level of taxation, non-tax budget revenues, tax collection And a number of other factors. To study the structure of such spending, the classification of budget expenditures is used.

Different countries periodically adopt programs to reduce different types of spending in order to save budget funds and increase the effectiveness of their use. But on the whole, the expenditures of the state budget tend to outstrip the gross domestic product. Factors that affect the dynamics of spending are:

• Economic development of the country;
• Human development (demographic and social indicators);
• NTP;
• Political and institutional factors;
• External circumstances (various emergencies like wars or natural disasters).

Budget expenditures are classified according to certain characteristics.

In terms of participation in social production, state spending is divided into two parts: the first is directed at developing the level of material production and improving its sectoral structure, while the other part is used to maintain and further develop the non-productive sphere. The development budget is created to support state investors investing in the development of highly efficient investment projects, either by direct allocation of funds on terms of urgency, pay and repayment, or by providing them with state guarantees.

For public purposes, budget expenditures are divided into the following main expenditure groups: defense financing; Industrial production; science; Social and cultural activities; Formation of reserve funds; The content of law enforcement agencies and state authorities and management; Expenses for servicing the public debt; Foreign economic expenses; Other payments and expenses. Additional costs are allocated for financing priority national programs.

All of the above groups of budget expenditures are divided in turn by departmental and target characteristics. According to the first classification, each expenditure group is allocated the relevant: either the ministry or other public institution, or the legal entity receiving the budget appropriations. This classification sign reflects the most mobile changes in the expenditure structure. On the basis of the target, expenditure is allocated to specific costs. Classification of expenditures for special purposes creates prerequisites for the rational use of budgetary funds, and is the basis for effective control over the expenditure of budgetary funds.

On a territorial basis, budget expenditures are divided according to the levels of state administration.