The essence of the budget

The budget is the central link of the state. As an economic category, the budget expresses a system of economic relations between budgets of different levels, between state authorities and self-government and legal entities, the population, which is based on budget law- a set of legal norms that establish the rights of legislative and executive authorities in the field of the budget.

The legislative framework

The budgetary legislative framework includes the budget code of the Russian Federation, acts regulating budget legal relations, federal laws, the federal law on the federal budget, laws of the constituent entities of the federation, regulations of local governments.

Budget functions

As part of the budget, the following finance functions correspond:

• Distribution- manifests itself through the formation and use of a centralized fund of funds at the levels of state and territorial government and management;
• Control- operates simultaneously with the distribution system and assumes the possibility and obligation of state control over the receipt of budget funds;
• Regulatory- the state regulates the economic life of the country, directing budget funds for necessary purposes.

Budget device

Budget device- these are the principles that determine the organization and budget system of the country, the relationships between its individual links, the composition and structure of budgets, the formation and use of budget funds, etc.

The most complete expression of the budget structure is found in the principles of the budget system.

According to Art. 25 of the Budget Code of the Russian Federation, the budget system of the Russian Federation is based on the following principles:

• Unity principle- unity of the legal framework of the monetary system, forms of budget documentation, principles of the budget process, a unified procedure for financing expenditures of budgets of all levels, accounting;
• The principle of separating income and expenses- means securing the corresponding types of income and powers to make expenses between the levels of the budget system of the Russian Federation;
• The principle of budget independence: a) availability of own sources of income at all levels; independent; b) independent distribution of budget expenses; c) identifying sources of financing budget deficits; d) implementation of the budget process at each level, etc.
• The principle of completeness of reflection of income and expenses- all income and expenses are subject to reflection in the budgets of all levels in full;
• The principle of budget balance- the volume of envisaged budget expenditures must correspond to the volume of budget revenues, that is, the deficit must be minimal;
• The principle of efficiency and economy in the use of budget funds - compliance of budgets should be based on the need to achieve specified results using the least amount of funds and achieve the best result;
• The principle of total cost coverage- all budget expenses must be covered by income and receipts;
• The principle of publicity- mandatory publication in the press, completeness of information in the media, opening to society, except for secret articles approved as part of the federal budget;
• The principle of budget reliability- reliability of forecast indicators for socio-economic development of territories and the reality of calculations of income and expenses;
• The principle of targeting and targeted nature- budget funds are allocated specifically to the recipient. Violation of targeting and directions is a violation of the budget legislation of the Russian Federation.

Budget system of the Russian Federation

Budget system- this 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 fundamentals of the budget structure are determined by the form of government of the country, the legislative system operating in it, and the role of the budget in the country.

The construction of the budget system also depends on the form of the state and administrative structure of the country.

The fundamentals of the budgetary structure of the Russian Federation are determined by the constitution of the country and its state structure as a federal republic, the subjects of which are the republics within the Russian Federation, territories, regions, and autonomous districts.

In accordance with the Constitution and the Budget Code of the Russian Federation, the budget system of the Russian Federation consists of three levels:

• Federal budget and budgets of state extra-budgetary funds;
• Budgets of constituent entities of the Russian Federation and budgets of territorial extra-budgetary funds;
• Local budgets.

The state budget- this is a financial program of the state’s activities, which expresses all its monetary resources (revenues) and their distribution (expenses).

Local budget- the main channel for communicating the final results of production to the population. Finances the development of industrial sectors that support the livelihoods of the population.

Territorial budget- a set of regional and local budgets.

Budget income and expenses

Income

Budget revenues- funds received free of charge and irrevocably in accordance with the legislation of the Russian Federation at the disposal of public authorities (federal, regional, local).

Composition of budget revenues:

• Tax revenues provided for by tax legislation (federal, legislative, local). Taxes and fees. The amount of tax credits, deferments and installment plans for the payment of taxes and other payments. Also taken into account in documents within limits.
• Non-tax revenues: income from the use of state and municipal property; financial assistance and budget loans from budgets of other levels; fines, compensation, confiscation, etc.; paid services (notary).

Expenses

Budget expenses- funds allocated to financially support the tasks and functions of the state and local governments. Depending on the nature of the definitions, systems of budget expenditures are formed.

• State and municipal administration;
• National Defense;
• Law enforcement and security;
• Support for material production industries;
• Scientific and technological progress (NTP);
• Social protection of the population;
• Protection of the environment and natural resources;
• Servicing and repayment of government debts.

Depending on the economic content, expenses are divided into:

• Current- provide current funding for government bodies, local self-government, provision of state support to budgetary institutions and individual sectors of the economy in the form of subsidies, subventions, subsidies for current functioning, which is the predominant part;
• Capital- provide innovation and investment activities for existing or newly created enterprises in accordance with the approved investment program (in the form of budget loans).

Budget expenses are mostly irrevocable. Their structure changes annually depending on the economic situation in the country.

Revenues of territorial budgets

They are divided into two types:

• Own- types of income assigned on a permanent basis, in full or in part, to the relevant budgets of the legislation of the Russian Federation. Represents a smaller portion of income;
• Regulatory- federal and regional taxes, duties for which the standards for deductions (in %) to the budgets of constituent entities of the Russian Federation or local budgets for the next financial year are established.

Regulatory income includes:

• Transfers- funds coming from federal and regional budgets, financial support of regions, the amount of which is calculated using a special methodology and formula;
• Subsidies- funds provided to the budget of another level of the budget system on a gratuitous and irrevocable basis to cover current expenses;
• Subvention- funds, to a budget of another level or to a legal entity on a gratuitous and irrevocable basis for the implementation of targeted expenses;
• Subsidies- budget funds provided to a budget of another level or to a legal entity or individual on the terms of further financing of targeted expenses.

As a result of studying this chapter, the student should:

know

• – composition of the budget structure of the Russian Federation;
• – structure of the budget system of the Russian Federation;
• – determination of the budget;

be able to

• – characterize the principles of the budget system of the Russian Federation;
• – to distinguish the composition of the consolidated budgets of the Russian Federation, constituent entities of the Russian Federation and municipal districts;

have skills

– operating with the basic concepts of the budget process in the Russian Federation.

The form of the country's territorial-political structure (unitary or federal) is a determining factor in building the state's budget system. The federal type of government predetermined the three-level structure of the budget system of the Russian Federation. This chapter examines the basics of the budget structure of the Russian Federation, consistently examines the levels of the budget system of the Russian Federation, and presents the main indicators of the federal budget for the period from 2010 to 2015. The latest innovations in the budget process are outlined, in particular, the introduction of the “rolling three-year plan” principle into the basis of budget planning. The chapter also defines the composition of the budgets of state extra-budgetary funds of the Russian Federation and provides some of their features. The principles of the budget system of the Russian Federation in accordance with the new budget legislation are revealed.

Key Concepts

Budgetary system of the Russian Federation, levels of the budgetary system, consolidated budget, budgetary funds, state extra-budgetary funds, principles of the budgetary system of the Russian Federation

Budget system of the Russian Federation

The budget structure of the Russian Federation is determined based on the provisions of the Budget Code. Thus, the budget structure of the Russian Federation includes: 1) the budget system of the Russian Federation; 2) budget classification of the Russian Federation; 3) principles of the budget system of the Russian Federation.

The structure of the state's budget system is largely determined by the type of its government structure.

Historically, two main forms of the territorial and political structure of the state have developed: unitary and federal.

A unitary state is a single whole, the constituent parts of which do not have political independence. A unitary state is characterized by a single centralized legal and political organization operating throughout the country. The unitary model of territorial structure has become most widespread in the modern world (Great Britain, Italy, Japan, France, etc.). The budget system in a unitary state includes only two levels: the state budget and numerous local budgets.

A federal state is more complex than a unitary one, because the constituent parts of such a state, called federal subjects, have a certain political and economic independence. The territories of individual entities, such as republics, have their own constitutions. Along with the federal system of legislative, executive and judicial power, there are similar government bodies of the constituent entities of the federation. One of the most difficult issues in a federal government system is the delimitation of jurisdiction and powers between the federation and its subjects. This is where complexity arises in the federation’s relationship with its constituent entities. The federal form of government is inherent in the largest states, such as Australia, Germany, India, Canada, the USA, etc. In a federal state, the budget system is more complex, it consists of three levels: 1) state (federal) budget; 2) budgets of members of the federation (states in the USA, provinces in Canada); 3) local budgets.

At the same time, recently there has been a tendency to mix the characteristics of various government systems and, accordingly, budget systems, i.e. characteristics inherent, for example, in a unitary state can be observed in a federal state, and vice versa.

The federal structure of Russia is enshrined in the Constitution of the Russian Federation. Thus, the federal type of government predetermined the three-level structure of the budget system of the Russian Federation.

According to the Constitution of the Russian Federation, the federal structure of the Russian Federation is based on its state integrity, the unity of the system of state power, the delimitation of jurisdiction and powers between the state authorities of the Russian Federation and the state authorities of the constituent entities of the Russian Federation.

Rice. 4.1.

The Russian Federation consists of republics, territories, regions, cities of federal significance, autonomous regions, autonomous districts, which are equal in rights to each other.

The budgets of the budget system of the Russian Federation (excluding state extra-budgetary funds) include: the federal budget, 22 budgets of republics, nine budgets of territories, 46 budgets of regions, three budgets of federal cities, one budget of an autonomous region, four budgets of autonomous districts, as well as about 23 thousand local budgets (budgets of municipalities).

Until 2005, in BC and NK there was no division of local budgets into territorial and settlement ones. The need to make changes to budget and tax legislation in order to streamline the budget structure of the constituent entities of the Russian Federation was stated in the Program for the Development of Budgetary Federalism in the Russian Federation until 2005, approved by Decree of the Government of the Russian Federation dated August 15, 2001 No. 584.

Until 1995, there were three levels of administrative-territorial division and, accordingly, three levels of the budget system of the constituent entities of the Russian Federation: 1) regional (subjects of the Russian Federation); 2) districts and cities of regional (territorial, republican, district) significance; 3) cities of regional significance, towns, rural administrations, districts in cities.

Adopted in 1995, Federal Law No. 154-FZ of August 28, 1995 “On the general principles of the organization of local self-government in the Russian Federation” allowed for different interpretations of the functions and subjects of local self-government, did not contain clear criteria for their separation from state functions and did not establish a clear distinction powers, including fiscal powers, between municipalities of different types and territorial levels. A situation arose in which the possibility of delimiting these powers by the laws of the constituent entities of the Russian Federation was hampered by the uncertainty of the rules on the territorial foundations of local self-government.

As a result, in most subjects of the Russian Federation, municipalities and local budgets were formed at the level of former cities of regional (territorial, republican, district) significance and administrative districts. Territorial units of a lower level (former cities of district significance, towns, village councils), which previously had their own budgets, were transferred to estimated financing. In some constituent entities of the Russian Federation, municipal formations and local budgets were created at the level of cities, towns, and rural administrations; in a number of constituent entities of the Russian Federation, two levels of municipal formations formally appeared, while the actual budget process is carried out only at the district level.

Thus, in fact, in the Russian Federation, at the local level, there were still two administrative levels at which public finances were managed. However, the BC and the Tax Code regulated only one level of local budgets (taxes) and fiscal powers, without dividing municipalities into territorial and settlement ones. This entailed a number of significant shortcomings that blocked the development of both the budget system and local self-government.

In this regard, appropriate changes were made to the Budget Code, which allow the formation of local budgets of different types (levels) in the constituent entities of the Russian Federation, the scope of their spending powers was determined, corresponding to the areas of responsibility of local governments, unified principles were introduced for the formation of revenues of local budgets of different types and the equalization of the budgetary budget. provision of municipalities. At the same time, the Tax Code clarified the tax powers of local governments.

The BC contains the following definition of budget:

Budget is a form of formation and expenditure of funds intended to financially support the tasks and functions of the state and local government.

The leading role in the budget process in the Russian Federation is occupied by federal budget.

The federal budget and the budgets of state extra-budgetary funds of the Russian Federation are intended to fulfill the expenditure obligations of the Russian Federation. At the same time, the use by federal government bodies of other forms of formation and expenditure of funds intended for the fulfillment of expenditure obligations of the Russian Federation is not permitted.

Table 4.1. Main characteristics of the federal budget for 2010–2015, billion rubles.

The federal budget and the budgets of state extra-budgetary funds of the Russian Federation are developed and approved in the form of federal laws.

In connection with the reform of the budget process, one of the directions of which was the transition to medium-term financial planning of all budgets of the budget system of the Russian Federation, the Budget Committee provides for the annual preparation and approval of the federal budget and the budgets of state extra-budgetary funds of the Russian Federation for three years (the next financial year and planning period). This innovation allows us to ensure continuity and predictability of not only budgetary, but also macroeconomic, tax and monetary policies.

The next financial year is the year following the current financial year.

The planning period is two financial years following the next financial year.

Budget planning is based on the principle of a “sliding three-year plan”, in which previously approved projections for the second and third years of the three-year period become the basis for the next budget with the annual addition of projections for the new third year.

At the same time, approval by law of designs for the second and third years does not mean a ban on their adjustment in the next budget cycle. Thus, on the one hand, stability and predictability of budget plans are ensured and, on the other hand, the possibility of their response to a changing situation and the implementation of new budget policy priorities.

Under the conditions of new budget legislation in the Russian Federation in 2007, for the first time, federal laws on the federal budget and on the budgets of state extra-budgetary funds were formed and approved on a medium-term basis:

• – Federal Law No. 182-FZ of July 21, 2007 “On the budget of the Pension Fund of the Russian Federation for 2008 and for the planning period of 2009 and 2010”;
• – Federal Law of July 21, 2007 No. 183-Φ3 “On the budget of the Social Insurance Fund of the Russian Federation for 2008 and for the planning period of 2009 and 2010”;
• – Federal Law No. 184-FZ of July 21, 2007 “On the budget of the Federal Compulsory Health Insurance Fund for 2008 and for the planning period of 2009 and 2010”;
• – Federal Law No. 198-FZ of July 24, 2007 “On the federal budget for 2008 and for the planning period of 2009 and 2010.”

The introduction of medium-term budgeting is undoubtedly a positive factor for the budget system of the Russian Federation. At the same time, the transition to three-year budgets poses the task of improving the quality of financial planning and forecasting for government bodies responsible for their preparation.

The next link in the budget system of the Russian Federation after the federal budget is budgets of the constituent entities of the Russian Federation.

Each subject of the Russian Federation has its own budget and the budget of a territorial state extra-budgetary fund.

The budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds are developed and approved in the form of laws of the constituent entities of the Russian Federation.

The budget of a constituent entity of the Russian Federation (regional budget) and the budget of a territorial state extra-budgetary fund are intended to fulfill the expenditure obligations of a constituent entity of the Russian Federation. At the same time, the use by public authorities of the constituent entities of the Russian Federation of other forms of education and expenditure of funds to fulfill the expenditure obligations of the constituent entities of the Russian Federation is not allowed.

The BC government bodies of the constituent entities of the Russian Federation are given the right to choose between approving the budget of the constituent entity of the Russian Federation for three years or for the next financial year.

If the draft budget of a constituent entity of the Russian Federation is drawn up and approved for the next financial year, the highest executive body of state power of the constituent entity of the Russian Federation develops and approves the medium-term financial plan of the constituent entity of the Russian Federation.

The third level of the budget system of the Russian Federation is represented by local budgets.

In the Russian Federation, each municipality has its own budget. Local budgets are developed and approved in the form of municipal legal acts of representative bodies of municipalities.

The budget of a municipality (local budget) is intended to fulfill the expenditure obligations of the municipality. At the same time, the use by local government bodies of other forms of education and expenditure of funds to fulfill the expenditure obligations of municipalities is not allowed.

As an integral part of the budgets of urban and rural settlements, estimates of income and expenses of individual settlements and other territories that are not municipalities may be provided.

Local governments are also given the right to choose between approving a budget for three years or for the next financial year. Moreover, if the draft budget of a municipal district (draft budget of a city district) is drawn up and approved for the next financial year, the local administration of the municipal district (city district) develops and approves a medium-term financial plan of the municipal district (city district).

A similar measure is provided for settlement budgets. If a settlement's draft budget is drawn up and approved for the next financial year, a municipal legal act of the settlement's representative body may provide for the development and approval of a medium-term financial plan for the settlement.

The budget system of the Russian Federation also includes budgets state extra-budgetary funds, intended in accordance with Art. 13 BC, like the federal budget, to fulfill the spending obligations of the Russian Federation.

At the same time, expenditures of the budgets of state extra-budgetary funds are carried out exclusively for the purposes determined by the legislation of the Russian Federation, including legislation on specific types of compulsory social insurance (pension, social, medical), in accordance with the budgets of these funds approved by federal laws and laws of constituent entities of the Russian Federation.

Funds from the budgets of state extra-budgetary funds of the Russian Federation are federal property, are not included in other budgets and are not subject to withdrawal.

The BC determines the composition of the budgets of state extra-budgetary funds, as well as the procedure for their preparation, presentation and approval. Thus, the budgets of state extra-budgetary funds include the budgets of state extra-budgetary funds of the Russian Federation and the budgets of territorial state extra-budgetary funds.

The budgets of state extra-budgetary funds of the Russian Federation are: 1) the budget of the Pension Fund of the Russian Federation; 2) the budget of the Social Insurance Fund of the Russian Federation; 3) the budget of the Federal Compulsory Medical Insurance Fund.

The budgets of territorial state extra-budgetary funds are the budgets of territorial compulsory health insurance funds.

Draft budgets of state extra-budgetary funds of the Russian Federation are compiled by the management bodies of these funds for the next financial year and planning period.

Draft budgets of territorial state extra-budgetary funds are submitted by the highest executive bodies of state power of the constituent entities of the Russian Federation for consideration by the legislative (representative) bodies of state power of the constituent entities of the Russian Federation simultaneously with draft laws of the constituent entities of the Russian Federation on the budgets of the constituent entities of the Russian Federation.

The financial year for the budgets of the budget system of the Russian Federation corresponds to the calendar year and lasts from January 1 to December 31.

Consolidated budgets are formed as part of the budget system of the Russian Federation.

Consolidated budget is a set of budgets of the budgetary system of the Russian Federation in the corresponding territory (with the exception of the budgets of state extra-budgetary funds) without taking into account interbudgetary transfers between these budgets.

The structure of consolidated budgets in the Russian Federation (excluding interbudgetary transfers) is presented in Fig. 4.2.

Rice. 4.2.

The federal budget and the set of consolidated budgets of the constituent entities of the Russian Federation (without taking into account interbudgetary transfers between these budgets) form consolidated budget of the Russian Federation.

Indicators of income and expenditure of the consolidated budget of the Russian Federation are presented in Fig. 4.3.

Rice. 4.3.

From the presented diagram it follows that for the period from 2007 and 2008. The consolidated budget of the Russian Federation was executed with a significant excess of revenues over expenses in the period 2009 and 2010. Under conditions of financial uncertainty, the trend was reversed. Indicators of the consolidated budget of the Russian Federation are used by financial authorities for analytical purposes, in particular, to identify the percentage ratio between the indicators of the federal budget and the consolidated budgets of the constituent entities of the Russian Federation.

The budget of a constituent entity of the Russian Federation and the set of budgets of municipalities that are part of a constituent entity of the Russian Federation (without taking into account interbudgetary transfers between these budgets) form consolidated budget of a constituent entity of the Russian Federation.

The budget of the municipal district (district budget) and the set of budgets of urban and rural settlements that are part of the municipal district (without taking into account interbudgetary transfers between these budgets), form the consolidated budget of the municipal district.

Consolidated budgets are not subject to legislative approval and are used for analytical purposes as an information base when developing the budget policy of the corresponding territory.

A budget device includes three basic elements:

• 1) organization of the budget system;
• 2) principles of building a budget system;
• 3) relationships between parts of the budget system.

- This based on economic relations and the state structure of the Russian Federation, regulated by law, a set of budgets and extra-budgetary funds of three levels – federal, regional and local.

The national budget system represents the unity of budgets at all levels of the budget system, operating on the basis of common principles. At each level in the budget system there is not only a budget, but also the budgets of extra-budgetary funds. This structure refers to the Soviet budget structure of the “matryoshka” type, when independent extra-budgetary funds did not exist (for example, the Pension Fund), but within the budget, in fact, targeted income and expenses were conditionally isolated.

So, the following types of budgets operate in Russia.

Federal budget– a form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the federal level of government in the Russian Federation.

Regional budget– a form of formation and expenditure of funds intended to support tasks and functions falling under the jurisdiction of a constituent entity of the Russian Federation.

Local budget– a form of formation and expenditure of a fund of funds intended to provide tasks and functions falling under the jurisdiction of local self-government.

Consolidated budget– a set of budgets of all levels of the budget system of the Russian Federation in the corresponding territory.

Expanded Budget is a set of consolidated budgets and state extra-budgetary funds.

In Fig. 4.1 shows the structure of the Russian budget system. The country's budget system includes the federal budget, 21 budgets of republics, 6 budgets of territories, 49 budgets of regions, 2 budgets of federal cities, 1 budget of an autonomous region. Ten budgets of autonomous districts and 29 thousand local budgets (budgets of municipalities).

Rice. 4.1.

Due to their social function, local budgets occupy a special place in the budget system. Being the most numerous in number, they accumulate about 20% of the country's consolidated budget.

In Russia, at the beginning of 2012, 23,118 municipalities were legally established: 1,821 municipal districts; 517 urban districts; 236 intracity territories of a federal city (111 municipalities, cities and towns in St. Petersburg and 125 municipalities in Moscow); 1711 urban settlements; 18,833 rural settlements.

Local budgets are the public funds closest to the needs of the population. Over 60% of the country's expenditures on education, 55 on healthcare, 70 on social protection of the population, and 90% on housing and communal services are financed from the budgets of municipalities. In general, the share of expenditures for social purposes is 60% of their total expenditures. These indicators determine their important political and social significance. The social role of local budgets will increasingly increase. The social mandates assigned to them are growing - increasing salaries for teachers and doctors to the regional average, increasing social benefits and payments. The balance of local budgets is ensured by extensive inter-budgetary relations regulated by law.

Budgets are consolidated according to the following scheme:

In Fig. Figure 4.2 shows the “assembly” of the budget using the example of an area.

Rice. 4.2.

Let us list the principles on which the functioning of all budgets, defined in the Budget Code, is based:

• unity of the budget system of the Russian Federation;
• independence of budgets;
• differentiation of income, expenses and sources of balance by levels of the budget system;
• completeness of reflection of budget incomes and expenses;
• legality;
• equality of budgetary rights of constituent entities of the Russian Federation and municipalities;
• budget balance;
• effectiveness and efficiency of use of budget funds;
• general (total) coverage of budget expenses;
• transparency of budgetary activities;
• budget credibility;
• targeting and targeted nature of budget funds.

It is impossible to single out a leading principle among them. All of them collectively reflect the variety of functions of the budget and the responsibility of the state for building an effective public financial economy in the interests of members of society. However, adherence to some principles may weaken at different stages of development. Attention to one or another aspect of the functioning of the budget system is reflected in the content of financial policy. Thus, efficiency and transparency of government spending are now coming to the fore. State programs have been adopted and are being implemented to strengthen the effect of these principles.

Compliance with the formulated principles ensures the consolidation of the financial power of the state. This allows budgets of all levels to solve the following tasks:

• accumulation of public funds;
• distribution and redistribution of public funds vertically (between the control center and lower levels of management);
• distribution and redistribution of public funds horizontally between government bodies of the same level.

Target — study the content of the budget structure of the Russian Federation, the principles of constructing the budget system and budget classification. Determine the sources of budget income and ways of spending it. Learn the budget process.

Tasks

1. Define the concept of budget and its basic principles.
2. Define the budget system.
3. Understand the socio-economic essence of budgets.
4. Consider budget classification.
5. Study the economic content of budget revenues.
6. Determine the content of budget expenses.
7. Familiarize yourself with the content of the budget process and its main participants.
8. Describe the main stages of the budget process.
9. Reveal the essence of control over budget execution.
10. Determine the main content of the budget execution report. The procedure for its approval.

1. Budget structure, principles of building a budget system

From the end of the 18th century. the budget began to be called the entire plan of upcoming expenses and revenues of the state.

Budget, as is customary in almost all countries, is the balance of government income and expenditure. The revenue part contains a list of incoming funds, the expenditure part combines all types of expenses incurred by the government.

Also, the term “budget” is defined in economic literature as:

“a form of education and expenditure of funds to ensure the functions of government bodies” 1 ;

"main centralized fund of funds" 2 ;

"the main financial plan of the state" 3 ;

“...the totality...of monetary relations...as the main financial plan...as the most important financial regulator...” 4

Explanatory dictionary of modern budget terms 5 gives the following definitions of the budget and the state budget:

Budget — “the general name of a term denoting a calculated and restrictive estimate of income and expenses and their breakdown for a certain period of time, approved by the relevant decision and subject to execution by an individual or collective entity.”

The state budget — “a system of certain monetary distribution relations regulated by state authorities regarding the redistribution of part of the national wealth for the formation and expenditure of the main centralized fund of state funds.”

The state budget is approved by the highest legislative bodies of the country. The act approving the budget is called budget law.

“State budget” is the most general financial concept. It combines and interconnects all financial categories: “income”, “expenses”, “government loans”. The interaction of these categories is reflected in state financial policy, and then in the preparation and execution of the budget. Financial policy itself, as well as the content, socio-economic essence, and political significance of budgets are determined by the method of production, the functions of the state, the role and forms of domination of monopolies.

The essence of any economic category, including the budget, is manifested in its functions. The budget, in turn, is the broadest financial category, and therefore it has all the functions inherent in finance:

1. Formation of a budget fund (budget revenues).

2. Use of the budget fund (budget expenses).

3. Control.

The function of creating a budget fund (budget revenues) carry out budget revenues, including taxes, loans, income from state property (enterprises) and the issue of paper money (seigniorage).

Function of using the budget fund (budget expenses) associated with specific targeted budget expenditures. The state, acting as an aggregate economic entity, takes into account the economic interests of all other participants in the reproduction process, and therefore budget expenditures cover all sectors and areas of the economy.

Control function budget presupposes the creation of conditions for control. It makes it possible for the state to effectively influence all economic processes.

By implementing all functions, the budget plays an important economic, social and political role in the reproduction process:

• By financing priority sectors of the economy from the budget fund, the state influences the redistribution of national income between sectors;
• By financing institutions and organizations in the social sphere from the budget fund, the state contributes to the reproduction of the workforce and the solution of socially significant problems;
• income is redistributed through the budget between the federal level and the constituent entities of the Russian Federation.

Consequently, “the budget is necessary for the state to meet the objective needs for the monetary fund that serves to fulfill its economic, social and political functions. The significance of the budget in macroeconomic regulation requires special attention to the possibility of implementing the principles of constructing the budget system of the Russian Federation, regulated by the Budget Code of the Russian Federation.” 6

Budget system of the Russian Federation is a set of federal budgets, regional budgets of constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds, based on economic relations and the state structure of the Russian Federation, regulated by legal norms.

Budget device — this is the organization of the budget system, the principles of its construction. According to the Budget Code of the Russian Federation, the budget structure is the construction and organization of budgets and interbudgetary relations. The budget structure is determined by the state structure.

The budget system of the Russian Federation currently consists of three levels and is presented in Fig. 1.

Rice. 1. Budget system of the Russian Federation

Federal budget - the form of formation and expenditure of funds per financial year intended to fulfill the expenditure obligations of the Russian Federation.

Budget of a constituent entity of the Russian Federation (regional budget) - the form of formation and expenditure of funds per financial year intended to fulfill the expenditure obligations of the relevant constituent entity of the Russian Federation.

Local budget - the form of formation and expenditure of funds per financial year intended to fulfill the expenditure obligations of the relevant municipality.

State extra-budgetary fund - a fund of funds formed outside the federal budget and the budgets of the constituent entities of the Russian Federation and intended to implement the constitutional rights of citizens to pensions, social insurance, social security in case of unemployment, health care and medical care.

Considering the composition of the budget system, budgets of all its levels, it is also necessary to characterize the concept consolidated budget . The Budget Code of the Russian Federation provides the following definition: “A consolidated budget is a set of budgets of all levels of the budget system of the Russian Federation in the corresponding territory. It is used for calculations and analysis.”

The following consolidated budgets are distinguished:

• the consolidated budget of the Russian Federation - the federal budget and the consolidated budgets of the constituent entities of the Russian Federation;
• consolidated budget of a constituent entity of the Russian Federation - the budget of a constituent entity of the Russian Federation and the set of budgets of municipalities (local budgets) located on its territory;
• consolidated city budget (city budget) - the city budget of the city and district budgets of districts in the city.

The organization of the budget system of the Russian Federation is based on the following principles set out in the Budget Code of the Russian Federation:

1. The principle of unity of the budget system of the Russian Federation means:

• unity of budget legislation of the Russian Federation;
• unity of principles of organization and functioning of the budget system of the Russian Federation;
• unity of forms of budget documentation and reporting, 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, generating revenues and making expenditures of the budgets of the budget system of the Russian Federation;
• unity of budget accounting and reporting of budgets of the budget system of the Russian Federation and budgetary institutions;
• unity of the procedure for the execution of judicial acts on foreclosure on funds from the budgets of the budget system of the Russian Federation.

2. The principle of separating income and expenses between budgets of different levels means assigning, in accordance with the legislation of the Russian Federation, income and expenses to the budgets of the budget system of the Russian Federation and determining the powers of government bodies (local government bodies) to generate income, establish and fulfill expenditure obligations.

3. The principle of budget independence means:

• the right and obligation 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 self-government bodies 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;
• 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 to be credited to the budgets of the corresponding level of the budget system of the Russian Federation;
• the right of state authorities and local governments, in accordance with the Budget Code, to independently determine the forms and directions of spending budget funds (with the exception of expenses, the financial support of which is provided through subsidies and subventions from budgets of other levels);
• the inadmissibility of establishing expenditure obligations that must be fulfilled simultaneously at the expense of the budgets of two or more levels of the budget system of the Russian Federation, or at the expense of consolidated budgets, or without defining the budget at the expense of which the corresponding expenditure obligations must be fulfilled;
• the inadmissibility of direct fulfillment of expenditure obligations of state authorities and local governments at the expense of funds from budgets of other levels;
• the inadmissibility of the implementation during the financial year by state authorities and local governments of decisions and changes in budget legislation and (or) legislation on taxes and fees, leading to an increase in expenses and (or) a decrease in budget revenues of other levels without amending the laws (decisions ) on relevant budgets that provide for compensation for increased expenses and decreased income;
• the inadmissibility of the withdrawal of additional income during the financial year, savings on budget expenditures obtained as a result of the effective execution of budgets.

4. The principle of equality of budget rights of the constituent entities of the Russian Federation, municipalities means:

• determination of the budgetary powers of state authorities of the constituent entities of the Russian Federation and local governments;
• establishment and execution of expenditure obligations;
• formation of tax and non-tax revenues of the budgets of the constituent entities of the Russian Federation and local budgets;
• determining the volume, forms and procedure for providing interbudgetary transfers in accordance with the uniform principles and requirements established by the Budget Code.

5. The principle of completeness of reflection of income and expenses of budgets, budgets of state extra-budgetary funds means that:

• all income and expenses of budgets, budgets of state extra-budgetary funds and other mandatory revenues determined by the tax and budget legislation of the Russian Federation, laws on state extra-budgetary funds, are subject to reflection in the budgets, budgets of state extra-budgetary funds without fail and in full;
• all state and municipal expenses are subject to financing from budgetary funds, state extra-budgetary funds accumulated in the budgetary system of the Russian Federation;
• tax credits, deferments and installments for the payment of taxes and other obligatory payments are fully accounted for separately for income of budgets, budgets of state extra-budgetary funds and for expenditures of budgets, budgets of state extra-budgetary funds, with the exception of deferments and installments for the payment of taxes and other obligatory payments provided within of the current financial year.

6. The principle of balancing the budget means that the volume of budgeted expenditures must correspond to the total volume of budget revenues and receipts from sources of financing its deficit.

When drawing up, approving and executing the budget, authorized bodies must proceed from the need to minimize the size of the budget deficit.

7. The principle of efficiency and economy in the use of budget funds means that when drawing up and executing budgets, authorized bodies and recipients of budget funds must proceed from the need to achieve specified results using the least amount of funds or achieve the best result using a certain budgeted amount of funds.

8. The principle of general (aggregate) coverage means that:

• all budget expenses must be covered by the total amount of budget revenues and receipts from sources of financing its deficit;
• Budget revenues and receipts from sources of financing its deficit cannot be linked to certain budget expenditures, with the exception of income from targeted budget funds, funds from targeted foreign loans, as well as in the case of centralization of funds from the budgets of other levels of the budget system of the Russian Federation.

9. The principle of transparency means:

• mandatory publication in the open press of approved budgets and reports on their execution, complete presentation of information on the progress of budget execution, as well as the availability of other information by decision of legislative (representative) bodies of state power and local government bodies;
• mandatory openness to society and the media of procedures for considering and making decisions on draft budgets, including on issues that cause disagreement either within the legislative (representative) body of state power, or between the legislative (representative) and executive bodies of state power.

Secret items can only be approved as part of the federal budget.

10. The principle of budget reliability means the reliability of forecast indicators for the socio-economic development of the corresponding territory and the realistic calculation of budget revenues and expenses.

11. The principle of targeting and targeted nature of budget funds means that budget funds are allocated to specific recipients of budget funds with the designation of their direction to finance specific goals.

Any actions that lead to a violation of the targeting of funds provided for by the budget or to their direction for purposes not indicated in the budget when allocating specific amounts of funds are a violation of the budget legislation of the Russian Federation.

2. Budget classification. Budget income and expenses

Budget classifications of most foreign countries are based on international standards government statistics finance (GFS) developed by the International Monetary Fund. In the mid-1990s. Russia has also switched to the international GFS system.

Budget classification The Russian Federation is a grouping of income and expenses of budgets at all levels of the budget system of the Russian Federation, as well as sources of financing the deficits of these budgets, is used in the preparation of projects and execution of budgets at all levels, ensures comparability of budget indicators at all levels of the budget system of the Russian Federation. It is unified and is used in the preparation, approval and execution of budgets of all levels and the development of consolidated budgets of all levels 7 .

The budget classification ensures all-Russian comparability of budget indicators and includes:

Classification tion of budget revenues of the Russian Federation — This is a grouping of budget revenues at all levels of the budget system of the Russian Federation, which is based on legislative acts of the Russian Federation that determine the sources of revenue generation for budgets at all levels. Income groups consist of subgroups, articles and sub-items of income that combine specific types of income by sources and methods of obtaining them. Types of income are also specified according to the budget levels to which they are included.

Budget revenues included in the budget system of the Russian Federation, are formed from tax revenues, non-tax revenues, and gratuitous transfers. At the same time, as part of budget revenues, the revenues of target budget funds are separately taken into account as a type of budget revenues.

The study of budget revenues involves, first of all, familiarization with their internal and external material sources.

The main role belongs to internal sources : national wealth, gross domestic product (GDP), national income.

External sources — income related to foreign economic activity.

The main material source of state income is GDP. Government revenues are primarily created through the process of redistributing GDP. Redistribution occurs through the state budget and other parts of the financial system: extra-budgetary funds, insurance, etc. The most important instruments of redistribution are taxes. Tax revenues at 80 — 90% form the state budget.

Tax revenues — These are federal, regional and local taxes and fees provided for by the tax legislation of the Russian Federation, as well as penalties and fines. Budget revenues in this part take into account provided tax credits, deferments and installments for the payment of taxes and other obligatory payments.

Tax revenues according to the form of receipt to the budget are divided into fixed and regulating income.

• Secured income — income that, in full or in a firmly fixed share, on a permanent or long-term basis, in the prescribed manner, goes to the corresponding budget.
• Regulatory revenues — income that, for the purpose of balancing income and expenses, goes to the corresponding budget in the form of percentage deductions from taxes or other payments according to standards approved in the prescribed manner for the next financial year.

The deduction standards are determined by the law on the budget of that level of the budget system of the Russian Federation, which transfers regulatory revenues, or by the law on the budget of that level of the budget system of the Russian Federation, which distributes the regulatory revenues transferred to it from the budget of another level.

When distributing tax revenues across levels of the budget system, tax revenues of the budgets of the constituent entities of the Russian Federation should, as a rule, be at least 50% of the amount of revenues of the consolidated budget of the Russian Federation.

Taxes perform two functions: fiscal and stimulating, each of which exhibits the internal content, signs and features of a given financial category.

Fiscal function - basic, initially characteristic of all states. With its help, state funds of funds are formed, i.e., material conditions for the life of the state. This function provides a real opportunity to redistribute part of the value of national income in favor of the least affluent sections of society.

Stimulating function manifests itself in the fact that taxes, as an active element of redistribution processes, have a serious impact on reproduction, stimulating or restraining its pace, strengthening or weakening capital accumulation, expanding or reducing the effective demand of the population. This function is inseparable from the fiscal function and is closely related to it.

To the group tax revenue(1 00 00000 00 0000 000) includes, in particular, the following subgroups: 1 01 00000 00 0000 000 - “Profit taxes, income”; 1 01 01000 00 0000 110 — “Organizational profit tax”; 1 02 00000 00 0000 - “Taxes and contributions for social needs”; 1 02 01000 00 0000 110 - “Unified social tax”, etc. 8 The tax revenue indicator includes all types of taxes levied in accordance with the legislation of the Russian Federation on taxes and fees.

Non-tax revenues combine non-refundable and gratuitous receipts, including:

• income from property in state and municipal ownership or from the activities of state and municipal organizations (1 11 00000 00 0000 000);
• income from foreign economic activities (1 10 00000 00 0000 000), etc.

Non-tax revenues also include:

• payments for the use of natural resources (1 12 00000 00 0000 000);
• income from the provision of paid services and compensation of state costs (1 13 00000 00 0000 000);
• income from the sale of tangible and intangible assets (1 14 00000 00 0000 000);
• targeted deductions from all-Russian state lotteries (3 04 01000 01 0000 180), etc.

Free transfers classified according to the source of their receipt: from non-residents; budgets of other levels; state extra-budgetary revenues; government organizations; supranational organizations; funds transferred to target budget funds; other gratuitous transfers.

Free transfers for mutual settlements may also be included in budget revenues. Under mutual settlements refers to operations involving the transfer of funds between budgets of different levels of the budget system of the Russian Federation, associated with changes in the tax and budget legislation of the Russian Federation, the transfer of powers to finance expenses or the transfer of income, operations for which were carried out after the approval of the budget law.

Income of target budget funds are formed in accordance with the legislation of the Russian Federation at the expense of earmarked income or in the order of targeted deductions from specific types of income at rates established by the tax legislation of the Russian Federation, and are distributed between federal and territorial target budget funds according to the standards determined by the law on the federal budget for the next financial year. Such income is grouped by type of target budget funds.

Income in the form of financial assistance and budget loans received from budgets of other levels of the budget system of the Russian Federation. Financial assistance from budgets of other levels of the budget system of the Russian Federation in the form subsidies, subventions and subsidiesdiy or other irrevocable and gratuitous transfer of funds is subject to accounting in the income of the budget that is the recipient of these funds.

Subsidy - a non-refundable cash benefit provided from the state budget to organizations, enterprises, local authorities, individuals to cover losses, compensate for losses, balance local budgets and other purposes.

Subvention — targeted benefit, a type of state assistance to local authorities or sectors of the economy to solve certain problems. In case of violation of the terms of provision, the subvention is subject to return.

Subsidy - non-repayable assistance in the form of cash benefits or in kind, provided to local authorities, legal entities and individuals, and other states. There are direct and indirect subsidies, which are provided from the state budget or special funds.

Fines are subject to inclusion in local budgets at the location of the body or official who made the decision to impose a fine, unless otherwise provided by the legislation of the Russian Federation.

Amounts confiscations, compensations and other funds forcibly withdrawn into state revenue are credited to budget revenues in accordance with the legislation of the Russian Federation and court decisions.

Directions spending budget funds classified according to three main principles: functional, economic and departmental.

Functional classification of budget expenditures of the Russian Federation represents a grouping of budget expenditures at all levels of the budget system of the Russian Federation and reflects the direction of budget funds to perform the main functions of the state. The first level of this classification of expenses is sections.

For example, section 01 - “National Issues”; 06 — “Environmental protection”; 07 — “Education”; 08 — “Culture, cinematography and media”; 09 — “Healthcare and sports”, etc.

Sections consist of subsections, specifying the direction of budget funds for the implementation of state activities in a certain area, which form the second level of classification.

For example, section 08 - “Culture, cinematography and media”: subsection 01 - “Culture” (0801); subsection 02 - “Cinematography” (0802); subsection 03 - “Television and radio broadcasting” (0803), etc.

The third level of functional classification of budget expenditures of the Russian Federation is target articles, reflecting the financing of budget expenditures in specific areas of activity of the main managers of budget funds within the subsections of the functional classification of budget expenditures of the Russian Federation.

Types of expenses form the fourth level of this classification; they detail the directions of financing the expenses of these budgets within the target items.

Economic classification of budget expenditures of the Russian Federation — grouping of budget expenditures at all levels according to their economic content, reflecting the types of financial transactions through which the state performs its functions both within the country and in relations with other states. This classification consists of the following categories: current expenditures, capital expenditures and provision of budget credits (budget loans) less repayments. These categories are divided into five levels: group, subgroup, item, subitem, expense item.

Current budget expenditures represent a part of budget expenditures that ensures the current functioning of state authorities and local self-government, budgetary institutions, the provision of state support to other budgets and individual sectors of the economy in the form of subsidies, subsidies and subventions for the current functioning.

Capital expenditures of budgets - This is part of budget expenditures that ensures innovation and investment activities. This includes expenses intended for investments in existing or newly created legal entities in accordance with the approved investment program, funds provided as budget loans for investment purposes to legal entities, expenses for major repairs and other expenses related to expanded reproduction, in the implementation of which property owned by the federal, constituent entities of the Russian Federation and municipal entities is created or increased.

Departmental classification of federal budget expenditures — grouping of federal budget expenditures, reflecting the distribution of budget funds among the main managers of federal budget funds with further detailing of the budgets of a specific federal executive body or other recipients of federal budget funds by target items and types of expenditures (i.e., in accordance with the goals and objectives they perform) . The list of the main managers of the latter’s funds is approved in the structure of the departmental classification of its expenses by the federal law on the federal budget for the corresponding financial year.

Departmental classification of budget expenditures of subjects RF is a grouping of budget expenditures of the constituent entities of the Russian Federation, reflects the distribution of budget allocations among the main managers of their budget funds in accordance with the organization of the system of executive authorities of the constituent entities of the Russian Federation and is approved by their legislative (representative) bodies. The departmental classification of local budgets is approved by legal acts of local governments.

Elements of functional, economic and departmental classifications are interconnected into a single structure.

Classification of sources of internal defi financing RF budget quotes is a grouping of borrowed funds raised by the Government of the Russian Federation, executive authorities of the constituent entities of the Russian Federation and local governments to finance deficits of the corresponding budgets.

Classification of sources of external financing of deficits of the federal budget and budgets of constituent entities of the Russian Federation — This is a group of borrowed funds raised by the Government of the Russian Federation and executive authorities of the constituent entities of the Russian Federation to finance the deficits of the corresponding budgets.

Classification of types of government internal debts of the Russian Federation, subjects of the Russian Federation, types of municipal debt is a grouping of debt obligations of the Government of the Russian Federation, executive authorities of constituent entities of the Russian Federation and local governments.

Classification of types of public external debts of the Russian Federation and subjects of the Russian Federation, as well as state external assets of the Russian Federation is a grouping of government external debt obligations in accordance with the legislation of the Russian Federation.

The budget classification is a document that not only performs the most important organizational functions and allows the budgets of all levels of the budget system to be consolidated into a single consolidated budget of the Russian Federation, but also has great economic significance.

3. Budget process

3.1. Contents and participants of the budget process

The budget process is the most important component of the budget structure. In general terms, it represents the activities of subjects of society regulated by legal norms in the formation, consideration, approval and execution of budgets.

Budget process is a complex multifaceted mechanism of socio-economic activity of individuals, legal entities and the state. The content of the budget process is based on the principles of the budget structure and the budgetary rights of various levels of government.

The budget process includes sequentially the following four stages of budget activity:

1) formation of a draft budget;

2) budget review;

3) budget approval;

4) budget execution.

According to current legislation, management of the formation and execution of budgets is a function of executive authorities, and consideration and approval is a function of representative bodies. These processes are carried out in close cooperation between both branches of government. Control of budget execution falls largely on the executive bodies. The main provisions for the preparation, consideration, approval and execution of the federal budget are established by the Federal Assembly of the Russian Federation, and specific deadlines and forms of budget reporting are established by the Ministry of Finance of the Russian Federation.

The budget process solves the following tasks:

• maximum identification of material and financial reserves;
• determination of budget revenues for individual taxes and other payments, as well as their total volume;
• establishing budget expenditures for their intended purposes, as well as their total volume;
• implementation of budget regulation in order to balance budgets at different levels;
• strengthening control over the financial activities of legal entities and the income of individual citizens;
• automation of the process of drawing up and executing budgets.

Over time, the budget process develops from top to bottom, from federal to local. This system is due to the variety of forms of ownership, the impossibility of systematic development of the national economy, as well as the nature of the formation of fixed and regulating income, subsidies and subventions.

The duration of the budget process in relation to the federal budget of the Russian Federation (from the Address of the President of the Russian Federation to the Federal Law on Budget Execution) is more than three years: formation, consideration and approval - 10 months, execution - 1 year, preparation and approval of a report on budget execution - up to 1, 5 years. In fact, it can be even greater due to preliminary work to solve various problems of budget formation, approval and execution. The duration of the budget period of territorial budgets is usually shorter.

Plays a special role in the budget process budgeting. It goes through two stages: organization and budget development.

Organization budget process includes:

• identification of subjects (participants) of the budget process and their powers;
• identification of objects (cash flows and funds) of the budget process;
• drawing up plans for the formation of the budget process as a whole and its individual components.

All subjects of the country (individuals, legal entities, government agencies), as well as a number of foreign subjects, take part in the budget process. They can be divided into two groups: passive and active. Passive participants— suppliers of budget resources (individuals and legal taxpayers, creditors, etc.) and final consumers of funds (individuals and legal entities).

group active participants The budget process is formed by bodies with budgetary powers. These include the President of the Russian Federation, government bodies, financial, monetary regulation, state and municipal financial control, state extra-budgetary funds. Each body has its own tasks and operates within the assigned powers.

The budgetary powers of participants in the budget process are as follows:

• The President of the Russian Federation determines the fundamentals of budget policy and general management.
• Representative (legislative) bodies review and approve budgets and reports on their execution, exercise control over the execution of budgets, form and determine the legal status of regulatory bodies, and exercise other powers.
• Executive authorities draw up draft budgets, execute budgets, budget control, and submit reports on budget execution.
• The Bank of Russia performs responsibilities for:

• development and submission, together with the Government of the Russian Federation, for consideration by the State Duma of the Federal Assembly of the Russian Federation of the main directions of monetary policy;
• servicing budget accounts;
• performing the functions of a general agent for government securities.

• Credit organizations carry out separate operations with budget funds. They, as participants in the budget process, are entrusted with performing two tasks: operations to provide budget funds on a repayable basis and ensuring the functions of the Bank of Russia where it cannot perform them.
• Control bodies of legislative (representative) authorities at all levels carry out:

• control over the execution of budgets of relevant levels and budgets of state extra-budgetary funds;
• conducting an examination of draft budgets, federal and regional target programs and other normative acts of budget legislation of the Russian Federation, constituent entities of the Russian Federation, acts of local government bodies.

• During the execution of the relevant budget and the budget of state extra-budgetary funds, executive control bodies carry out preliminary, current and subsequent control.

An important place in organizing the budget process is given to a clear definition of the managers and recipients of budget funds. There are main managers of federal, subject and local budgets, simply managers and recipients of budget funds.

Budget Manager - This is a government body that distributes budget funds to recipients.

Recipient of budget funds— budgetary institution or other organization entitled to receive budget funds.

3.2. Development of a draft budget

Drafting a budget - this is the initial stage of the budget process, which includes addressing issues such as:

• budget volume;
• fiscal and monetary policy for the coming year;
• main directions, means and methods of covering the budget deficit;
• distribution of expenses between parts of the budget system.

The drafting of the federal budget is based on:

• at the Budget Address of the President of the Russian Federation;
• long-term financial plan;
• forecast of socio-economic development of the Russian Federation for the next year;
• a report on the execution of the federal budget in the reporting year and the main indicators of the expected execution of the federal budget in the current year;
• a report on the execution of the federal budget in the reporting year and indicators of the expected execution of the federal budget in the current year;
• reports on the results and main activities of budget planning entities;
• draft federal laws on amendments to the legislation of the Russian Federation on taxes and fees;
• the register of expenditure obligations of the Russian Federation and the changes that are planned to be made to it in connection with the draft regulatory legal acts defining the expenditure obligations of the Russian Federation.

Initial macroeconomic indicators for drawing up the draft budget are:

• the volume of GDP for the next financial year and the growth rate of GDP in the next financial year;
• inflation rate (rate of price growth).

Direct preparation of draft budgets carried out by: Ministry of Finance of the Russian Federation; its territorial bodies in the constituent entities of the Russian Federation; local government bodies.

At the same time, for the next year the following are compiled:

• forecast of the consolidated budget of the corresponding territory for the next financial year;
• targeted investment program for a year;
• economic development plan;
• structure of state or municipal debt;
• a program of internal and external borrowings provided for the next financial year to cover the budget deficit;
• assessment of budget losses from tax benefits;
• assessment of budget execution for the current year.

Development includes the following stages:

• development of forecasts for economic development of the Russian Federation and preparation of consolidated financial balances;
• drafting and announcing the presidential address;
• development of draft laws on budgets;
• submission of a package of documents to legislative bodies. The development of draft budgets is carried out by the Ministry of Finance of the Russian Federation, financial authorities of the constituent entities of the Russian Federation and municipalities.

The preparation of the budget is preceded by the development of a forecast of socio-economic development, the main directions of budget and tax policy, a forecast of the consolidated financial balance, and a development plan for the state or municipal sector of the economy. On the basis of these documents, the Budget Message of the President of the Russian Federation to the Federal Assembly is being prepared, which sets out the fundamentals of budget policy. Balance sheet, program-target, normative, economic and mathematical methods are used as the main methods of budget planning.

Forecast of socio-economic development territory is developed on the basis of data on socio-economic development for the last reporting period, a forecast of socio-economic development until the end of the base year (from January 1 to December 31) and trends in the development of the economy and social sphere for the planned year and precedes the preparation of the draft budget.

Based on the forecast, it is formed promising financialplan, which contains budget forecasts for mobilizing revenues, attracting borrowings and financing basic expenditures. It is being developed to inform legislative bodies about medium-term trends in economic and social development; forecasting the financial consequences of developed reforms, programs, laws; monitoring negative long-term trends and taking appropriate measures in a timely manner.

Balance of financial resources represents a balance of all income and expenses of the Russian Federation, constituent entities of the Russian Federation, municipalities and organizations. It is formed on the basis of the reporting balance of financial resources for the previous year and is the basis for drawing up the budget.

Development plan for the state or municipal economic sectorMiki includes:

• a list and consolidated plan of financial and economic activities of federal government enterprises, state or municipal unitary enterprises;
• program for privatization and acquisition of property into state or municipal ownership;
• information on the maximum number of employees for the main managers of budget funds.

When drawing up budgets, long-term targeted programs are of particular importance. They are developed by executive authorities in accordance with forecasts of socio-economic development. Long-term target program contains:

• feasibility study;
• forecast of the expected socio-economic (environmental) results of the program implementation;
• name of the program customer;
• information on the volumes and sources of funding by year;
• other documents and materials required for approval.

The draft budget indicates the main characteristics of the budget: the volume of revenues, the volume of expenses, deficit (surplus), as well as a number of other indicators.

The draft budget for the next year is accompanied by various documents and materials provided for by budget legislation. In particular, the draft budget defines:

1. The volume of expenses and revenues of the federal budget.
2. The volume of the federal budget deficit.
3. Directions and volumes of use of funds from the Stabilization Fund of the Russian Federation exceeding the minimum level established by the Budget Code of the Russian Federation.
4. Assigning sources of federal budget revenue to administrators; financing the federal budget deficit.
5. Standards for deductions to the federal budget of federal taxes and fees, non-tax revenues.
6. Volumes of revenues to the federal budget by main sources.
7. Distribution of federal budget expenditures by sections, subsections, target items, types of functional classification of expenditures of the budgets of the Russian Federation.
8. Departmental structure of federal budget expenditures.
9. List and volumes of financing of target programs.
10. Distribution of government investments for the implementation of the federal targeted investment program; expenses for the implementation of interstate agreements within the CIS; interbudgetary transfers for the constituent entities of the Russian Federation.
11. Main indicators of the State Defense Order.
12. The amount of debt of foreign countries on loans provided by the Government of the former USSR and the Government of the Russian Federation, as of January 1 of the current year.
13. The upper limit of the state external and internal debt of the Russian Federation as of January 1 of the year following the next year.
14. Program of state internal and external borrowings of the Russian Federation; provision of government loans by the Russian Federation to foreign states and their legal entities.

3.3. Procedure for reviewing and approving the budget

The formation of the federal budget begins 10 months before the start of the next year and is carried out in accordance with the budget policy of the Russian Federation, defined in the Budget Address of the President of the Russian Federation. The procedure and timing for developing a draft federal budget are determined by the Government of the Russian Federation.

Review and budget approval carried out by representative authorities. The submission of the draft federal law on the federal budget for the next year to the State Duma is carried out by the Government of the Russian Federation no later than August 29 of the current year.

The State Duma is considering the federal budget bill in four readings.

IN first reading , within 30 days from the date of submission, the State Duma:

a) hears:

• report of the Government of the Russian Federation;
• co-reports of the Budget Committee and the second specialized committee responsible for considering the subject of the first reading;
• report of the Chairman of the Accounts Board of the Russian Federation;

b) accepts or rejects the said bill.

When adoption The State Duma of the draft federal budget for the next year, in the first reading, approves the main characteristics of the federal budget, while the State Duma does not have the right to increase revenues and the federal budget deficit if these changes do not have a positive conclusion from the Government of the Russian Federation.

When deviations bill, the State Duma can:

• transfer the draft law on the Federal budget to the conciliation commission to clarify the main characteristics of the federal budget;
• return the bill to the Government of the Russian Federation for revision;
• raise the question of trust in the Government of the Russian Federation.

When return of the draft law on the Federal budget for revision Government of the Russian Federation:

• within 20 days, finalizes the said bill, taking into account the proposals and recommendations set out in the conclusions of the Budget Committee and the State Duma Committee on Economic Policy;
• submits the revised bill for re-consideration by the State Duma in the first reading.

When resignation of the Government of the Russian Federation in connection with the rejection of the draft federal law on the Federal budget for the next financial year, the newly formed Government of the Russian Federation presents a new version of the draft federal law on the federal budget for the next financial year no later than 30 days after formation.

Based on the results of consideration in the first reading of the draft federal law on the Federal budget for the next financial year, a State Duma resolution is adopted on the adoption of the draft in the first reading and on its main characteristics.

In second reading draft federal law on the federal budget for the next financial year:

• subjects of the right of legislative initiative send to the Budget Committee amendments on federal budget expenditures according to sections of the functional classification of budget expenditures of the Russian Federation;
• The State Duma approves federal budget expenditures according to sections of the functional classification of budget expenditures of the Russian Federation within the limits of the total volume of federal budget expenditures approved in the first reading; size of the Federal Fund for Financial Support of the Subjects of the Russian Federation.

Based on the results of consideration in the second reading of the draft federal law on the Federal budget for the next financial year, a State Duma resolution is adopted on the adoption in the second reading of the draft federal law on the Federal budget for the next financial year and on the distribution of Federal budget expenses for the next financial year according to the sections of the functional classification of budget expenses RF.

If the draft federal law on the Federal budget for the next financial year is rejected in the second reading, the State Duma transfers the said bill to the conciliation commission.

IN third reading The draft federal law on the Federal budget for the year is approved by:

• Federal budget expenditures by subsections of the functional classification of budget expenditures of the Russian Federation and the main managers of Federal budget funds for all four levels of the functional classification of budget expenditures of the Russian Federation;
• main indicators of the State Defense Order;
• federal budget expenditures to finance federal target programs; Federal targeted investment program for the next year within the limits of expenses approved in the second reading by sections of the Federal budget; programs for providing guarantees of the Government of the Russian Federation for a year; programs for providing Federal budget funds on a repayable basis for each type of expenditure;
• programs of state external borrowings of the Russian Federation for a year; internal borrowings of the Russian Federation; provision of government loans by the Russian Federation to foreign states for the next financial year;
• a list of legislative acts the effect of which is canceled or suspended for the next financial year due to the fact that the budget does not provide funds for their implementation.

IN fourth reading the draft federal law on the Federal budget for the next financial year, the State Duma is considering the specified draft law as a whole; amendments to it are not permitted.

The federal law on the Federal budget for the next financial year adopted by the State Duma, within 5 days from the date of adoption, is submitted to the Federation Council, which must consider the federal law on the Federal budget within 14 days from the date of submission by the State Duma.

The rights of the Federation Council in terms of the budget law are somewhat less than those of the State Duma, and its amendments require the approval of the State Duma, which may reject these amendments.

The draft federal law on the Federal budget for the next financial year, approved by the Federation Council, is sent to the President of the Russian Federation for signing within 5 days from the date of approval.

The budget law comes into force after it is signed by the President of the Russian Federation from the day of its official publication in the media.

If the President of the Russian Federation rejects the draft federal law on the federal budget for the next financial year, the specified law is transferred to the conciliation commission, which includes a representative of the President of the Russian Federation, to overcome the differences that have arisen.

If the federal law on the Federal budget for the next financial year does not come into force before the beginning of the next financial year, if it is not adopted by the State Duma before December 15 of the current year, as well as if it does not come into force for other reasons before January 1 of the next year, the State Duma may adopt federal law on financing expenses from the federal budget in the 1st quarter of the next financial year.

In this case, federal executive authorities spend federal budget funds in accordance with the specified federal law.

3.4. Budget control

Budget execution - the last, main and most responsible phase of the budget process, expressing the implementation of the main financial plan of a particular national-administrative or territorial entity. Its purpose is to ensure sufficient financing of government activities provided for in budgets based on the timely and complete receipt of revenues.

When executing budgets, the following tasks are solved:

• ensuring the accumulation of planned budget revenues;
• timely and complete financing of government activities;
• monitoring compliance with financial discipline;
• accounting and reporting on budget execution.

If in the first three phases of the budget process the main work is carried out purely by public services, then in the last, fourth, all ministries, departments and a large number of different organizations that are in any connection with the movement of public funds participate. The work is led by executive bodies of state power, administrations of constituent entities and local administrative-territorial entities. In their activities they are guided by the Constitution of the state, as well as current legislation on civil, financial, budgetary, tax, criminal and other issues. It defines the rights, duties and responsibilities within the framework of budget execution.

According to the tasks, the execution of budgets includes: execution of the revenue and expenditure parts of the budgets; control of budget revenues and expenditures; accounting and reporting on budget execution.

The budget is executed in accordance with organizational plans, which define activities for revenues or expenses, deadlines for implementation and responsible bodies (officials).

Established in the Russian Federation treasury execution of budgets. All budgets of the Russian Federation are executed according to the principle of cash unity, which means calculating budget revenues, attracting and repaying sources of financing the budget deficit and making expenses from a single budget account. In accordance with this principle, executive bodies are cashiers of managers and recipients of budgetary funds and make payments from budgetary funds on behalf and on behalf of budgetary institutions.

Execution of budgets based on income provides for:

• transfer and crediting of income to a single budget account; distribution of regulatory revenues in accordance with the approved budget;
• return of excess amounts of income paid to the budget;
• accounting for budget revenues and reporting on revenues from the corresponding budget.

All revenues are included in the income of specific budgets. The correctness of calculation and timely payment is controlled by the responsible services. Income that is not paid in by the due date or not paid in full is collected forcibly. For late payment and incorrect calculation of taxes, sanctions (penalties, penalties, fines) are applied.

Execution of expenditure budgets is carried out by authorized executive bodies on the basis budget list— a document on the quarterly distribution of budget expenses between recipients of budget funds — and consists of authorization and financing.

Authorization consists of stages:

• drawing up and approving the budget schedule;
• approving and communicating information about the amounts, estimates and limits of budget allocations to managers and recipients of funds;
• acceptance of monetary obligations by recipients. Financing consists of using budget funds.

All budget income and expenses are subject to mandatory accounting carried out by the bodies executing the budget. All budgetary organizations and executive financial authorities prepare reports on the basis of accounting. Reporting on budget execution can be operational, quarterly, semi-annual and annual. Collection, compilation, preparation and presentation of reports are carried out by the authorized executive body. Reports on budget execution are submitted to representative and control authorities. The annual report is reviewed by the Accounts Chamber and approved by the Federal Assembly of the Russian Federation.

conclusions

Thus, the topic examines the concept of a budget and reveals its socio-economic essence, manifested through its main functions. The concept of a budget system and a budget device is revealed. The basic principles on which the budget system is built are determined.

Also discussed here is the budget classification, which operates in accordance with the Budget Code and includes:

• classification of budget revenues of the Russian Federation;
• functional classification of budget expenditures of the Russian Federation;
• economic classification of budget expenditures of the Russian Federation;
• classification of sources of internal financing of budget deficits of the Russian Federation;
• classification of sources of external financing of deficits of the federal budget and budgets of constituent entities of the Russian Federation;
• classification of types of public internal debts of the Russian Federation and constituent entities of the Russian Federation, types of municipal debt;
• classification of types of state external debts of the Russian Federation and constituent entities of the Russian Federation, as well as state external assets of the Russian Federation;
• departmental classification of federal budget expenditures;
• structure of expenditures of the budgets of the Russian Federation and municipalities.

It also provides a detailed description of federal budget revenues and expenditures according to three main principles:

• functional;
• economic;
• departmental.

The characteristics of each stage of development of the draft budget and the procedure for considering and adopting the budget for the next financial year are considered. As well as control over budget execution.

Self-test questions

1. How is the budget and the state budget defined in economic literature?
2. What are the main functions of the budget?
3. What is a budget device?
4. What is the budget system of the Russian Federation?
5. What levels of the budget system do you know? Name their main characteristics.
6. On what principles is the organization of the budget system of the Russian Federation based? Give them a brief description.
7. What is budget classification?
8. What does budget classification in the Russian Federation include?
9. What is the classification of budget revenues?
10. Describe the tax revenues of the budget.
11. Describe non-tax budget revenues.
12. In what forms can financial assistance be provided?
13. By what basic principles are budget expenditures classified? Give them a brief description.
14. What is the budget process? What are the main stages of the budget process?
15. What problems does the budget process solve?
16. What does organizing the budget process include?
17. Describe the main participants in the budget process.
18. What stages does the development of a draft budget include?
19. What is the procedure for reviewing and approving the budget?
20. What is budget control?

Bibliography

1. Neshitoy A.S. Finance and credit: Textbook. — 2nd ed., revised. and additional — M.: Publishing and trading corporation "Dashkov and Co", 2006. — 572 pp.
2. Finance: Textbook. — 2nd ed., revised. and additional / S.A. Belozerov, S.G. Gorbushina and others; edited by V.V. Kovaleva. — M.: TK Welby, Prospect Publishing House, 2004. — 512 pp.
3. Finance: Textbook / Ed. A.G. Gryaznova, E.V. Mirkina. — M.: Finance and Statistics, 2005.
4. Financial and credit encyclopedic dictionary / Under the general. ed. A.G. Gryaznova, E.V. Mirkina. — Finance and Statistics, 2005.
5. Finance and credit: Textbook / M.L. Dyakonova, T.M. Kovaleva, T.N. Kuzmenko and others; edited by prof. T.M. Kovaleva. — 2nd ed. reworked and additional M.: KNORUS, 2006. — 376 pp.
6. Fetisov V.D., Fetisova T.V. Finance and credit. — 2nd ed., revised. and additional — M.: UNITY-DANA, 2006. — 399 pp.

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Presentation title	annotation

Budgetary relations represent the financial relations of the state at the federal, regional and local levels with state, joint-stock and other enterprises, as well as the population regarding the formation and use of a centralized fund of monetary resources.

The budget is a form of formation and expenditure of funds to ensure the functions of government bodies.

The totality of all types of budgets forms the state budget system. The interrelationship between its individual links, the organization and principles of constructing the budget system is called the budget device.

The fundamentals of the budget structure are determined by the form of government of the country, the legislative acts in force in it, and the role of the budget in social reproduction and social processes. The construction of the budget system also depends on the form of state and administrative structure.

According to the degree of division of power between the center and administrative-territorial entities, all states are divided into:

Unitary;

Federal;

Confederate.

Unitary (single) state is a form of government in which administrative-territorial entities do not have their own statehood or autonomy. The country has a single constitution, common laws and authorities for all systems, and centralized management of economic, social and political processes in the state. The budget system of a unitary state consists of 2 units - state and local budgets.

Federal (united) state- this 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 by them and the center. The budget system of federal states is three-tier and consists of the federal budget, budgets of federation members and local budgets.

Confederate (union) state is a permanent union of sovereign states created to achieve political or military goals. The budget of such a state is formed from contributions from the states included in the confederation. The member states of the confederation have their own budget and tax systems.

The Russian budget system consists of 3 links:

n federal budget of the Russian Federation;

n budgets of national-state and administrative-territorial entities, called budgets of the subjects of the Federation, or regional budgets. These include: republican budgets of the republics within the Russian Federation, regional, regional, and autonomous budgets, as well as city budgets of Moscow and St. Petersburg;

n local budgets (city, district, township, rural).

The budget system is called upon to play an important role in the implementation of the state's financial policy, the goals of which are determined by its economic policy.

Today, the Russian budget system consists of the federal budget, 21 republican budgets, 56 regional and regional budgets, including 1 autonomous region, city budgets of Moscow and St. Petersburg, 10 district budgets of autonomous okrugs and about 29 thousand local budgets.

The federal budget serves as the main financial plan of the state, approved by the Federal Assembly (adopted by the State Duma and approved by the Federation Council) and having the status of a federal law. Through the federal budget, the financial resources necessary for their subsequent redistribution and use for the purposes of state regulation of the country's economic development and the implementation of social policy are mobilized. In addition, federal budget funds cover such costs as maintaining government bodies, meeting the country's defense needs, financial assistance to the constituent entities of the Federation, servicing public debt, and replenishing state reserves.