The budget is ... Drawing up and approval of the budget

Each state has its own budget. The definition of this term is familiar to most Russian citizens. In a number of cases, it is called "the main financial law" or "document" of the state. However, there are also regional and municipal budgets. Their functioning has features. What is the structure of the budgetary system of the Russian Federation? How is the "main" financial law of the state adopted?

Definition of term

"Budget" - this is in English "bag". That is, a certain reserve, which today is most often understood as financial. They can have a state, any of its constituent region, city, family, or individual. There is a budget of the organization, which may not be relevant to the state. The term in question is universal. Each can have its own budget structure. Of course, this term, as a rule, sounds applicable to state affairs. How will its correct definition sound?

Among the Russian experts, the following is common. A budget is a list of incomes and expenses drawn up by the government of a country, region or city in relation to a specific time period, which is approved in the established legislative order. The calculation of revenues and expenses, as a rule, is calculated - reflecting the most likely scenario.

In the Russian economy, the role of the budgetary sphere is very significant. By some experts it is defined as the leading one. And therefore, changes in the external environment that affect budget revenues can be viewed as negative factors in the development of the national economy of the Russian Federation and in the growth of incomes of citizens.

Budget levels in Russia

In the Russian practice, there are several levels of drawing up and executing the budget - 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 US - even municipal budgets can be divided into other formats.

There is an option in which figures for each of their levels of the Russian budget are added. A common 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 a macroeconomic calculation.

Income and expenditure of the budget

From what sources does the state, region or municipality earn? What are the main sources of the budget? To the income most often taxes, excises, duties and other accompanying charges are included. They are sent to the treasury in irretrievable order. Although in some cases the law provides for a certain kind of deductions, in which mechanisms that are relatively close in form to return payments from the budget, are still involved.

Expenditures include funds that, in accordance with the norms established by law, are used to finance tasks performed by state and municipal authorities. Interaction between individual objects of receiving these funds is called a budget system. Budget expenditures can be classified according to two main criteria. Firstly, this is their departmental affiliation. Expenditures in this case are grouped based on allocation of allocations in relation to specific recipients. Secondly, economic classification is also possible. In this case, costs are grouped, based on their nature, sectoral focus.

Functions and value of the budget

Let's supplement the definition of the concept of "budget" with information about what basic functions it performs. First, this 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 there, where there is more revenue, assistance goes where there is a need for financial support. Secondly, the budget stimulates the development of the national economy through the empowerment of citizens working in government agencies. Thirdly, it ensures the development of key socially important spheres - education, medicine, the army.

Structure and levels of the budget

Consider how the structure of the state budget is structured. Above we called its functions. For their correct implementation, an appropriate system is needed that solves the problems of redistributing funds and the subsequent control over their use. Thus, the budget is a resource, as a rule, centralized, and providing for the hierarchy of subjects using it.

How is the distribution of authority for the development of the state financial resource carried out? The main role here belongs to the Federal Treasury. How is the interaction between the center and the subject of the federation in the field of solving departmental tasks carried out? For the work in the field of education is the responsibility of the Federal Ministry, which exercises control over the structures below. Similarly - in other departments - the Ministry of Health, the Ministry of Internal Affairs. The structure of the budget in terms of the allocation of funds between the federal center and the regions in Russia is similar to the model of public administration. There are regional offices 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 developed 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 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 the shares received from certain types of federal fees.

The situation is somewhat different if we are talking about the municipal level. The city budget and its management are largely remote from state competence. Revenues for its replenishment the municipalities are called upon to extract 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, additional allocations from the state are received to the level of the local budget. Also, the municipal treasury is replenished at the expense of taxes levied in accordance with the legislation - directly, or as deductions from the structures of the Federal Tax Service stipulated by regulatory enactments. It is possible to replenish the city's budget at the expense of certain types of state duties levied by banks that operate on the territory of the municipality.

Budgets of municipalities, like their federal counterpart, can have a consolidated format. That is, to represent a set of corresponding incomes and expenditures reflecting individual settlements. Budgets of which, in turn, can be formed by the settlements located on their territory. The development of these local financial documents can be conducted 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 set at the level of federal legislation. This includes a policy in the field of solving problems with scarce execution of financial plans, promissory notes.

The main area of interaction of municipalities and state bodies in the field of budgetary policy is the reporting of the first in relation to the latter. In the manner determined by the relevant legislative acts, the municipalities submit to the regional authorities the reports on how the local budget is executed.

Deficit and surplus

The budget can be deficit, surplus and balanced. In the first case, incomes for the same period are lower than expenditures. In the second case - on the contrary. In the third, equality is observed (with the minimum permissible deviations). Among economists, many experts consider the deficit to be a norm (provided that it is not very large). The planned budget in many cases by default is made this way. As a rule, in established, competitive economies it is always there, than to make up for it. With what?

Firstly, it is the issue of various types of securities (usually government bonds). The investor buys them, in return 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. In Russia, such bonds also exist.

Secondly, it can be budgetary loans. This is an allocation 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 mechanisms for filling the deficit are internal. But there are also external resources. These include:

- sale of bonds on the international market;

- attraction of credits from foreign private structures;

- loans from foreign governments;

Often internal and external mechanisms are used simultaneously. Many experts believe that the more confidence in the national economy from national and international creditors, the less fears the government may have about the budget deficit. Therefore, analysts believe, there is no particular reason to be surprised that many developed countries, including the US, have a debt on government obligations equal to 100% of GDP and even more. Hence, creditors sufficiently trust the stability of the economies of those countries where they buy bonds. Although, there is an opposite point of view. On it, payments to the budget through loans are endlessly impossible to provide. Sooner or later the state will run out of resources for servicing external debts.

How is the Russian budget adopted?

Having considered what the budget is, the definition of this term, we will study how it is adopted. On the example of mechanisms working in Russia. First about how the budgeting is going on.

The procedure in question involves determining the necessary amount of funds that the state needs to finance the work of the agencies responsible for accomplishing certain tasks. The draft budget is being 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 models various scenarios, within which the country's economy can develop. If they are approved by the Government, then the agency begins to study the sources of income and the structure of costs. It is important to have time to do this by July 15. After - the draft budget is again sent for consideration by the Government. He has a month to make proposals for the finalization of the document. After - the budget goes to the State Duma for consideration. This process takes place in several stages.

First, the draft budget is studied by the deputies of the State Duma themselves. Experts, attracted by the Budget Committee, also participate in this. Next, the document is sent to other structures of the State Duma, to the President and to the Accounts Chamber so that a conclusion can be drawn. 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 should be 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. There is a study of the main characteristics of the document - sources of income, expenditure, the presence or absence of budget deficits in the budget execution plans.

In the second reading, expenditure items are approved according to the established classification scheme. The size of the Support Fund 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 of its adoption in the first - 15 days.

In the third reading, specific articles on expenditures are defined, as well as agencies responsible for the correct use of funds. The timeframe in which the State Duma needs to be kept from the moment of adopting the document in the second reading is 25 days.

The fourth reading includes consideration of possible amendments to the budget. Also, options are analyzed with the distribution of revenues and costs quarterly.

Passed through all stages of discussion in the State Duma, the draft budget is sent to the upper house of the Russian Parliament - the Federation Council. If senators accept the document, it is submitted for signature to the head of state. After - acquires the status of the Federal Law. From next year, the provisions envisaged in it begin to be realized.

Budget execution

A budget is a law that is properly enforced. The agency responsible for it is the Federal Treasury, which is accountable to the Government of the Russian Federation. Some experts emphasize the fact that during the execution of the budget, the executive authorities can not make any amendments to the document. They should have the status of federal laws, which are also adopted with the participation of the State Duma, the Federation Council and the President. A budget is a document that by default assumes the 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 it is a question of reducing them), then a sequestration procedure is implemented. In the Russian Federation, its peculiarity is that if the authorities adopt an appropriate resolution, then expenditures within the budget are reduced in all respects - in each month from the adoption of the law on sequestration and until the end of the year.

Control how the budget is executed, along with that, both branches of power. If they are representative structures, then we are talking about parliamentary control. If these are departments that are accountable to the government - then the corresponding supervision is called administrative.

Functions for parliamentary control are assigned to the Accounts Chamber. This agency has the authority to conduct inspections - in ministries, their subordinate structures, as well as in enterprises that may be involved in some way or another in the execution of the budget. The Accounts Chamber is obliged to submit reports every quarter to the legislative structures on how the main state financial law is being executed. Also, this parliamentary body gives opinions on the report, formed by the Government, which also concerns the implementation of the budget.

How are similar procedures implemented at the regional and municipal levels? In general, the procedures are similar to those that are implemented by federal authorities, subject to compliance with the Budget Code of the Russian Federation.

The greatest differences can be observed in procedures implemented 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 leading, in some ways similar to the position of the President, in relation to other authorities. But there are municipalities, where the post of head of administration is more likely to be nominal. A more important role is played by the local parliament.

The peculiarity of approval and consideration of municipal budgets is that all facts relating to this process must be officially published. This applies to all stages of the work of local authorities. Starting from the decision that the budget is approved and ending with the 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 executed.

Subsidy, subvention, or subsidy?

Having defined the role of the budget, having studied the essence of this phenomenon, it will be useful to get acquainted with some terms related to the main financial document of the state. Among Russian experts, some of them are used regularly.

It is useful to know what grants are. This term in Russia means money provided by a budget of one level in favor of another. Subsidies are needed in cases when the object of their receipt is experiencing the need to cover actual expenditures. This measure of budgetary support is provided free of charge.

Often the term "subsidies" is used in one context with "subventions". Sometimes even these two concepts are identified. But this is not true. Under subventions in Russia it is accepted to understand the means that the budget of one level transfers to another also gratuitously, however, for specific, specific purposes.

Both of these terms, mentioned above, are close to the "subsidy". But the differences between it, the subvention and subsidies are noticeable. The object of obtaining money can be not only the budget of another level, but also the individual or the organization. The key criterion in this case is the state origin of capital. As a rule, a subsidy is a partial reimbursement of expenses. It is understood that the object of financing also finds other sources of income.

There is another interesting phenomenon - budgetary credit. This is the provision of state financial support, in turn, on a fully paid basis.