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Budgetary financing: forms and features

Budgetary financing is the use of state money capital (on an irretrievable basis), the goals and procedures of which are different. But the bulk of the funds are used and distributed through financing. As a rule, its directions are public facilities. This process is carried out with the help of various sources, among which are budgetary and extrabudgetary funds, as well as the possibilities of economic associations and enterprises.

Budget funding is in a special group, since its source is important and unique, because its role is the budget.

As for the principles on which this process is based, among them the following are distinguished:

1. Irrevocability.

2. Targeted use of capital. The thing is that each item of expenditure has a specific purpose: wages, scholarships, pensions, current expenses, and so on.

3. Budgetary financing, which is performed as far as performance of work or provision of services. The essence of the principle is that the funds are allocated not according to the annual plan, but after fulfilling a certain amount of material, and also according to quantitative and qualitative indicators. Pre-implementation of it is carried out with the help of quarterly or monthly expenditure distributions.

4. Coordination of the corresponding financial discipline.

It should be noted that the economic costs in the system of this type of financing take a special position in view of the fact that the main social and production costs are provided by using their own capabilities. If there is a need, for the realization of these purposes credits borrowed in commercial banks are involved. They use budgetary financing only in case of special necessity, which is established by the legislation.

As for the state budgetary sphere, it is also characterized by certain peculiarities. All budget organizations are aimed at solving problems of social and social needs arising from members of society.

Investment activity is coordinated by the state and can have several directions, one of which is budget financing of investments. Its implementation is carried out through the use of tax investment or budgetary credit, as well as budgetary appropriations. As for the budgetary form of the loan, we note that it can be provided to a foreign state or a legal entity. This is done either on a grant basis or on a return basis. This loan is granted only to those entities that do not have debts.

Another form should be considered, such as budget and budget financing. It is conducted on the basis of an individual financial statement that records the main target direction of the received funds, as well as their volume and quarterly distribution.

Thus, monetary support is provided for virtually the entire non-productive sphere (budgetary). As for organizations that receive funding this way, they are called budgetary.

Considering the notion of the estimate, we note that it is carried out in the form of a financial plan drawn up by an organization or institution that receives funds for spending that are intended to ensure their implementation. Its main components are articles that describe the type and purpose of costs. Financing of all types of institutions is carried out for three major expenses: wages, current expenses, and capital investments.

As a rule, the action of the budget is limited to the financial year: it starts on January 1 and ends on December 31.

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