The budget process in the Russian Federation briefly. Budget process
Budget process in the Russian Federation
1. Basics of organizing the budget process
2. Drawing up, reviewing and approving budgets
3. Organization of budget execution
1. Basics of organizing the budget process
The budget process is the activity of government bodies regulated by the legislation of the Russian Federation, local government bodies and other participants in the budget process for drawing up and reviewing draft budgets, approving and executing budgets, monitoring their implementation, and implementing budget accounting, compilation ,external verification, review and approval of budget reporting.
Constitution of the Russian Federation,
Budget Code of the Russian Federation,
other federal laws regulating certain issues of organizing the budget process at different levels of the budget system,
laws and municipal legal acts of constituent entities of the Russian Federation and representative bodies of local self-government that determine the organization of the budget process in specific constituent entities of the Russian Federation and municipalities.
In addition, the procedure for drawing up, considering, approving and executing budgets at the relevant levels is regulated by Decrees of the President of the Russian Federation, as well as regulatory legal acts of executive authorities at the corresponding level and local governments.
The Budget Code of the Russian Federation defines, on the one hand, the basics of organizing the budget process at all levels of the budget system of the Russian Federation, including the principles of organization and functioning of this system, the powers of participants in the budget process, the basis for drawing up, reviewing, approving and executing budgets, issues of generating revenues and making budget expenditures , budget classification, establishment of forms of budget documentation and reporting,
sanctions for violation of budget legislation, the organization of budget accounting and reporting and, on the other hand, the procedure for drawing up, considering, approving and executing the budget under the jurisdiction of federal authorities - the federal budget.
Issues of drawing up, reviewing, approving and executing regional budgets are regulated by the budget legislation of the constituent entities of the Russian Federation. Local budget process
level is regulated by municipal legal acts of representative
local government bodies.
Budget period represents the period during which the approved budget is valid. In the Russian Federation, the budget period is 12 months and lasts from January 1 to December 31.
Participants in the budget process are:
President of Russian Federation;
highest official of a constituent entity of the Russian Federation, head of a municipal entity;
legislative bodies of state power and representative bodies of local self-government;
executive bodies of state power (executive and administrative bodies of municipalities);
Central Bank of the Russian Federation;
state and municipal financial control bodies;
management bodies of state extra-budgetary funds,
main managers of budgetary funds,
chief administrators of budget revenues,
chief administrators of the sources of financing the budget deficit;
recipients of budget funds.
Each participant in the budget process has a set of budget powers.
President of the Russian Federation:
sends a Budget Message to the Federal Assembly of the Russian Federation, defining in it the priorities of budget policy for the next financial year and planning period;
signs and promulgates federal laws, including the Federal Law on the Federal Budget for the next financial year and planning period.
has the right to legislative initiative, including on budgetary issues; he has the right to reject the Federal Law on the Federal Budget and, finally, he signs the law on the execution of the Federal Budget.
Towards budgetary powers legislative bodies of state power, representative bodies of local self-government relate:
consideration of the draft relevant budget and its approval,
approval of the report on budget execution,
implementation of subsequent control over budget execution,
formation and definition of legal organ status,
exercising control over the execution of the relevant budgets.
Towards budgetary powers executive bodies of state power and executive and administrative bodies of municipalities relate:
drafting a budget ,
deposit it with the necessary documents and materials for approval legislative bodies,
development and approval of the distribution methodology and provision procedures interbudgetary transfers,
ensuring budget execution and preparation of budget reporting,
submission of a report on budget execution for approval of legislative bodies, ensuring public debt management.
Central Bank of the Russian Federation together with the Government of the Russian Federation
develops and submits to the State Duma of the Russian Federation the main directions of monetary policy,
serves budget accounts and performs the functions of a general agent for government securities of the Russian Federation.
Credit organizations carrying out individual operations with budget funds,
perform the functions of the Central Bank RF for servicing budget accounts in the absence of institutions Central Bank of the Russian Federation in the relevant territory or impossibility performing these functions,
may be involved on the basis of an agency agreement to carry out operations to provide and repay budget loans.
Towards budgetary powers bodies of state and municipal financial control relate:
carry out preliminary, current and subsequent control over the implementation of relevant budgets.
preparation of conclusions on the annual report on the execution of the relevant budgets,
carrying out an examination of projects of the specified budgets, long-term target programs and other legal acts of the budget legislation of the Russian Federation, constituent entities of the Russian Federation and acts of local governments.
Budget legislation also includes participants in the budget process: chief stewards budget funds. Their role in the budget process is determined by the fact that funds from the budgets of the corresponding levels are brought to the final budget recipients indirectly through the managers of budget funds.
Main manager of funds corresponding budget is
local administration body
the most significant institution of science, education, culture and health care, indicated in the departmental structure of budget expenditures, which has the right to distribute budget allocations and limits of budget obligations between subordinate managers and (or) recipients of budget funds.
In its turn manager funds from the corresponding budget has the right to distribute budget allocations and limits of budget obligations to subordinate recipients of budget funds. Main managers and managers of budgetary funds participate in the budget process at the stages of budget preparation, its execution and preparation of budget reporting.
The budget process includes the following stages:
a) drawing up a draft budget;
b) review and approval of the budget;
c) budget execution;
d) compilation, external verification,
review and approval of budget reporting.
These stages are carried out in strict sequence during the budget period and are closely interrelated.
On budgeting stages chief manager
forms a list of managers and recipients of budget funds subordinate to him;
carries out planning of relevant budget expenses,
draws up justifications for budgetary allocations;
determines the procedure for approving budget estimates of subordinate budgetary institutions;
forms government assignments.
On budget execution stage chief budget manager
ensures the effectiveness, targeting and targeted nature of the use of budget funds in accordance with the budget allocations approved by him and the limits of budget obligations;
maintains a register of expenditure obligations subject to fulfillment within the limits of budget obligations and budget allocations approved by it;
draws up, approves and maintains the budget schedule,
distributes budget allocations,
limits of budget obligations for subordinate managers and recipients of budget funds and executes the corresponding part of the budget,
ensures control over compliance by recipients of subventions and interbudgetary subsidies;
organizes and carries out departmental financial control in the area of its activities.
At budget reporting the chief manager of budget funds generates consolidated reporting on the use of budget funds by subordinate managers and budget recipients for subsequent inclusion in the report on budget execution.
Rights recipients of funds from the corresponding budget represented by a government body, a management body of a state extra-budgetary fund, a local government body, as well as a budgetary institution under the authority of the main manager (manager) of budgetary funds, are limited only to the acceptance and fulfillment of budgetary obligations at the expense of the funds of the corresponding budget.
Budget revenue administrator is:
public authority,
local government body,
local administration body
management body of the state extra-budgetary fund,
Central Bank of the Russian Federation,
a budgetary institution that, in accordance with the legislation of the Russian Federation, exercises control over the correctness of calculation, completeness and timeliness of payment, accrual, accounting, collection and decision-making on the return of overpaid payments, penalties and fines on them, which are the income of the budgets of the budgetary system of the Russian Federation.
Chief budget revenue administrator:
public authority,
local government body,
local administration body
management body of the state extra-budgetary fund,
Central Bank of the Russian Federation,
another organization that has budget revenue administrators under its jurisdiction and (or) serves as budget revenue administrators.
Administrator of sources of financing the budget deficit is:
public authority,
local government body,
local administration body
management body of the state extra-budgetary fund,
another organization that has the right, in accordance with the Budget Code of the Russian Federation, to carry out operations with sources of deficit financing budget.
G chief administrator of sources of financing the budget deficit:
public authority,
local authority self-government,
local administration body
government state extra-budgetary fund,
other organization having under the authority of administrators of funding sources budget deficit and are administrators sources of financing the budget deficit.
To streamline the budget process, the concept was introduced "subjects of budget planning" under which are understood:
federal ministries entitled submit proposals to the Ministry of Finance of the Russian Federation on formation of the federal budget and financial support of federal services and federal agencies;
federal services and federal agencies,
federal legislative and judicial authorities,
General Prosecutor's Office of the Russian Federation,
Accounts Chamber of the Russian Federation,
The Central Election Commission of the Russian Federation, which has the right to distribute allocations and limits of budgetary obligations of the federal budget among subordinate managers and recipients of budgetary funds.
The main function of each of the subjects of budget planning at the federal level is to submit to the Ministry of Finance of the Russian Federation a justified amount of budget expenditures for the planned year as a whole for the planning subject, broken down by the main managers of budget funds subordinate to it.
The budget process consists of five stages:
Drawing up a draft budget;
Review of the draft budget,
Budget approval;
Budget execution;
Review and approval of the budget execution report.
Drafting a budget preceded development of plans and forecasts for the development of territories and target programs. The decision to begin work on drawing up a draft federal budget is made by the President of the Russian Federation. The Government of the Russian Federation is organizing step-by-step work on drawing up a draft federal budget.
Within a certain time frame, the following are drawn up: a forecast of socio-economic development, a consolidated balance of financial resources, the main directions of the budgetary policy of the Russian Federation, the target figures of the draft federal budget for the corresponding period and other documents are calculated. Territorial executive authorities are conducting a detailed study and coordination of indicators of socio-economic development and target figures for the federal budget.
Government of the Russian Federation simultaneously with the organization of work on drawing up the federal budget, organizes work to bring within a certain time frame to the representative and executive authorities of the constituent entities of the Russian Federation a letter of instruction on the features of drawing up calculations for draft budgets for the next financial year, including on centrally established social and financial norms and standards (minimal) or their changes.
Executive authorities of the constituent entities of the Russian Federation within the time limits established by their representative authorities, based on the need to approve budgets before the start of the financial year, communicate to the representative authorities of the lower level the relevant instructions for the development of draft budgets, including social and financial norms and regulations or changes thereto, including norms and regulations, approved by a higher body of representative power.
In case of imbalance of income and minimum necessary expenses of local budgets or budgets of the constituent entities of the federation, the corresponding executive body of power submits to the higher executive body (executive bodies of government of the constituent entities of the federation - to the Government of the Russian Federation) the necessary calculations to justify the size of the standards for deductions from regulatory revenues, subsidies, subventions, list income and expenses subject to transfer from higher budgets, as well as data on changes in the composition of objects subject to budget financing.
Review of the draft budget by the representative authority of the relevant subject of budget law precedes the adoption of a decision on authorizing budget expenditures, which is the legal basis for the allocation of budget allocations.
As the practice of recent years shows, consideration of the draft federal budget by the representative body of Russia causes a large number of complications. Therefore, the legislator took the path of detailed regulation of the procedure (technology) and timing of consideration of the bill on the federal budget for each specific year.
After the adoption of the corresponding draft federal law for consideration by the State Duma, it must be sent to the Federation Council of the Federal Assembly of the Russian Federation, committees of the State Duma, other subjects of the right of legislative initiative for making comments and suggestions, as well as to the Accounts Chamber of the Russian Federation for conclusion.
Budget legislation provides for the possibility approval of the draft federal budget for the corresponding year after four readings. After the fourth reading, the draft federal budget for the corresponding year is considered at a plenary meeting of the State Duma for voting as a whole. The Federal Law “On the Federal Budget for the Corresponding Year” adopted by the State Duma in accordance with Articles 105 and 107 of the Constitution of the Russian Federation is subject to mandatory consideration by the Federation Council and the President of the Russian Federation.
In case of non-acceptance of the project Federal Law “On the Federal Budget for a Specific Year”, until January 1 of a specific year, federal executive authorities have the right to spend budget funds for the relevant sections of expenses, subsections, types and subject articles of the functional and departmental classification on a monthly basis in the amount of one third of the actual expenses incurred for IV quarter of the previous year before the adoption of the Federal Law “On the Federal Budget for the Coming Year”.
The State Duma may also adopt the Federal Law “On financing expenses from the Federal Budget in the first quarter of a particular year.” In this case, the federal executive authorities spend budget funds in accordance with the specified Federal Law. This practice is already known to Russian reality. Currently, the Russian budget is drawn up for three years.
Budget execution coincides with the budget year and lasts from January 1 to December 31. Budget execution is entrusted to the relevant executive authorities. Budget execution is to ensure the full and timely receipt of budgeted income and the financing of related expenses. The operational execution of budgets is carried out according to the budget schedule, which is compiled by the relevant financial authority (the Ministry of Finance of the Russian Federation (MF of the Russian Federation), the Ministry of Finance of the republics within the Russian Federation, financial departments (departments) of territories, regions, etc.).
Budget execution is carried out according to the revenue and expenditure parts of the budgets.
Execution of the federal budget ends on December 31. Budget commitment limits expire on December 31. Acceptance of budget commitments after December 25 is not allowed. Confirmation of budget commitments is due to be completed by the Federal Treasury on December 28. Until December 31 inclusive, the Federal Treasury is obliged to pay accepted and confirmed budget obligations.
Accounts used for the execution of the federal budget of the year being completed must be closed at 24 hours on December 31.
Funds received by budgetary institutions from entrepreneurial activities and not used as of December 31 are credited in the same amounts to newly opened personal accounts for the relevant budgetary institutions.
After completion of operations on accepted budgetary obligations of the completed year, the balance of funds in the single account of the federal budget is subject to accounting as the balance of funds at the beginning of the next financial year.
Review and approval of the budget execution report carried out by a representative body of government.
The representative body has the right to contact the prosecutor's office of the Russian Federation to verify the circumstances of non-compliance of the budget execution with the adopted law (decision) on the budget in case of exceeding the rights granted to the body executing the budget to reduce expenses, move appropriations and block expenses and bring guilty officials to justice.
Every year, no later than June 1 of the current year, the Government of the Russian Federation submits to the State Duma and the Accounts Chamber of the Russian Federation a report on the execution of the federal budget for the reporting financial year in the form of a federal law. Simultaneously with the report on the execution of the federal budget for the reporting financial year, reports on the execution of the budgets of federal target budget funds are submitted to the State Duma.
The report on the execution of the federal budget must be drawn up in accordance with the structure and budget classification that were used when approving the federal law on the federal budget for the reporting year.
The Accounts Chamber of the Russian Federation audits the report on the execution of the federal budget for the reporting financial year and prepares a conclusion on the report of the Government of the Russian Federation on the execution of the federal budget within 4.5 months after the Government of the Russian Federation submits the said report to the State Duma. In doing so, the chamber uses materials and results of inspections.
The State Duma considers the report on the execution of the federal budget within 1.5 months after receiving the conclusion of the Accounts Chamber of the Russian Federation. When considering a report on the execution of the federal budget, the State Duma hears:
Report of the head of the Federal Treasury on the execution of the federal budget;
Report of the Minister of Finance on the execution of the federal budget;
Report of the Prosecutor General of the Russian Federation on compliance with the rule of law in the field of budget legislation;
Conclusion of the Chairman of the Accounts Chamber of the Russian Federation.
At the proposal of the Chairman of the State Duma or on his own initiative, the Chairman of the Constitutional Court of the Russian Federation, the Chairman of the Supreme Arbitration Court of the Russian Federation, the Chairman of the Supreme Court of the Russian Federation may speak or present reports with an analysis of cases considered during the reporting financial year related to budget disputes and violations of budget legislation.
Based on the results of consideration of the report on the execution of the federal budget and the conclusion of the Accounts Chamber of the Russian Federation, the State Duma makes one of the following decisions:
On approval of the report on the execution of the federal budget;
On the rejection of the report on the execution of the federal budget.
Participants in the budget process. Managers of budget funds, their types, rights and responsibilities.
In accordance with the Budget Code of the Russian Federation, the budget process is the activity of state authorities, local governments and participants in the budget process, regulated by legal norms, in the preparation and consideration of draft budgets, draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as to control their implementation (Article 6; Part 3 of the BC RF).
The social relations that arise in the process of this activity are regulated by the norms of budgetary law and are budgetary legal relations. The subjects of these legal relations are state authorities, local governments and other entities.
In accordance with the Budget Code of the Russian Federation, participants in the budget process include:
President of the country;
Bodies of legislative (representative) power;
Executive agencies;
Monetary authorities;
Bodies of state and municipal financial control;
State extra-budgetary funds;
Main managers and managers of budgetary funds;
Other bodies entrusted with budgetary, tax and other powers;
Budgetary institutions;
State and municipal unitary enterprises;
Other recipients of budget funds;
Credit organizations carrying out individual operations with budget funds.
Participants in the budget process who have budgetary powers at the federal level are: the President of the Russian Federation; State Duma and Federation Council of the Federal Assembly of the Russian Federation; Government of the Russian Federation; Ministry of Finance of the Russian Federation; Federal Treasury; bodies collecting budget revenues; Bank of Russia; Accounts Chamber of the Russian Federation; state extra-budgetary funds; chief managers and administrators of budgetary funds; other organs.
The system of bodies with budgetary powers includes: 1) financial bodies, determined by decree of the President of the country; 2) monetary authorities, i.e. Bank of Russia; 3) bodies of state (municipal) financial control, which include: the Accounts Chamber of the Russian Federation; control and financial bodies of executive power; control bodies of legislative bodies of the constituent entities of the Russian Federation and representative bodies of local self-government.
The budgetary powers of legislative bodies include the consideration and approval of budgets and reports on their execution, subsequent monitoring of budget execution, the formation and determination of the legal status of bodies exercising control over budget execution at the corresponding level of the budget system, etc.
The budgetary powers of executive authorities and local governments are related to: 1) drawing up a draft budget; 2) submitting it with the necessary documents and materials for approval by the legislative body; 3) budget execution; 4) management of state and municipal debt; 5) departmental control over budget execution; 6) submission of a report on budget execution and other powers.
The budgetary powers of the Bank of Russia are aimed at jointly with the Government of the country developing and submitting for consideration to the State Duma the main directions of monetary policy; maintenance of budget accounts; performing the functions of a general agent for government securities of the Russian Federation.
Credit organizations may be involved in operations to provide budget funds on a repayable basis. They can serve budget accounts, i.e. perform certain functions of the Bank of Russia only if there are no Bank of Russia institutions in the relevant territory or if they are unable to perform these functions.
A major role in budget execution is assigned to the main managers and managers of budget funds. The main manager of federal budget funds is the government body of the Russian Federation, which has the right to distribute federal budget funds to subordinate managers and recipients of budget funds, determined by the departmental classification of federal budget expenditures.
The main manager of budget funds of a constituent entity of the Russian Federation, local budget funds is the state authority of a constituent entity of the Russian Federation, a local government body, a budgetary institution that has the right to distribute budget funds to subordinate managers and recipients of budget funds of a constituent entity of the Russian Federation, local budget funds, determined by the departmental classification of expenditures of the corresponding budget. The powers of the main managers are provided for in Art. 158 BC RF.
In addition to the concept of the main manager of budgetary funds, the Budget Code of the Russian Federation introduced the concept of a manager of budgetary funds, which includes a state authority or local government body that has the right to distribute budget funds to subordinate recipients of budgetary funds (Article 159 of the Budget Code of the Russian Federation).
The recipient of budget funds in the budget process is a budget institution or other organization that has the right to receive budget funds in accordance with the budget schedule for the corresponding year.
The budget process consists of several stages.
The first stage of the budget process is the preparation of a draft budget, which is preceded by the development of forecasts for the socio-economic development of the Russian Federation, constituent entities of the Russian Federation, municipalities and sectors of the economy, as well as the preparation of consolidated financial balances, on the basis of which executive authorities develop draft budgets.
The state's budget policy for the next financial year is contained in the Budget Message of the President of the Russian Federation, which must be sent to the Federal Assembly of the Russian Federation no later than March of the year preceding the next financial year.
Drawing up draft budgets is the exclusive prerogative of the Government of the Russian Federation, the relevant executive authorities of the constituent entities of the Russian Federation and local governments. The drafting of budgets is directly carried out by the Ministry of Finance of the Russian Federation, financial authorities of the constituent entities of the Russian Federation and municipalities.
The drafting of the federal budget begins no later than 10 months before the start of the next financial year.
This stage consists of several stages.
The first stage of the formation of the federal budget is the development by federal executive authorities and the selection by the Government of the Russian Federation of a plan-forecast for the functioning of the Russian economy for the next financial year.
The second stage of the formation of the federal budget is the distribution by federal executive authorities of the maximum volumes of budget financing for the next financial year in accordance with the functional and economic classifications of budget expenditures of the Russian Federation and by recipients of budget funds, as well as a number of other powers.
This stage ends with the fact that from July 15 to August 15 of the year preceding the next financial year, the Government of the Russian Federation considers the draft budget and other accompanying documents and materials submitted by the Ministry of Finance of the Russian Federation, the Ministry of Economy of the Russian Federation, and other federal executive authorities, and approves the draft federal law on the federal budget for its submission to the State Duma.
The second stage of the budget process is budget review and approval.
Simultaneously with the draft federal law on the federal budget, the Government of the Russian Federation submits to the State Duma draft federal laws: on introducing amendments and additions to the legislative acts of the Russian Federation on taxes and fees; on the budgets of state extra-budgetary funds of the Russian Federation; on the tariffs of insurance contributions to state extra-budgetary funds for the next financial year - until August 1.
The draft federal law on the federal budget is sent within three days to the Federation Council, committees of the State Duma, other subjects of the right of legislative initiative for comments and suggestions, as well as to the Accounts Chamber of the Russian Federation for conclusion.
The State Duma is considering the draft federal law on the federal budget for the next financial year in four readings. The State Duma considers the draft federal law on the federal budget for the next financial year in the first reading within 30 days from the date of its submission to the Duma by the Government of the Russian Federation. If the draft federal law on the federal budget is rejected in the first reading, the State Duma may transfer the said draft to a conciliation commission, including representatives of the State Duma, the Federation Council and the Government of the Russian Federation; return the said bill to the Government of the Russian Federation for revision for up to 20 days; raise the question of trust in the Government of the Russian Federation.
The State Duma considers the bill in the second reading within 15 days from the date of its adoption in the first reading.
When the State Duma considers the draft federal law on the federal budget for the next financial year, the third reading approves federal budget expenditures by subsections of the functional classification of budget expenditures of the Russian Federation and the main managers of federal budget funds at all four levels of functional classification, as well as expenditures on other programs. In the third reading, the bill is considered within 25 days from the date of its adoption in the second reading.
The State Duma considers the bill in the fourth reading within 15 days from the date of its adoption in the third reading. When it is considered in the fourth reading, the bill is voted on as a whole. Amendments to it are not permitted. The federal law must be adopted by the State Duma before December 1 of the current year.
The adopted federal law on the federal budget, within five days from the date of adoption, is submitted for mandatory consideration to the Federation Council, which lasts up to 14 days. Within five days from the date of approval by the Federation Council, the federal law is sent to the President of the Russian Federation for signing and promulgation.
If a federal law is rejected by the Federation Council, it is transferred to overcome the disagreements that have arisen to the conciliation commission, which within 10 days submits for re-consideration by the State Duma the agreed federal law on the federal budget for the next financial year. The State Duma reconsiders the federal law in one reading. If the Duma disagrees with the decision of the Federation Council, the law is considered adopted if at least two-thirds of the total number of deputies of the State Duma vote for it during the second vote.
If the President of the country rejects the federal law on the federal budget, it is transferred to the conciliation commission. Further, its approval is carried out in the described manner.
If the State Duma does not adopt the federal law on the federal budget before December 1 of the current year, as well as if this law does not enter into force before January 1 of the next year for any reason, this law does not come into force until the beginning of the next financial year. In this case, the Duma may adopt a federal law on financing expenses from the federal budget in the first quarter of the next financial year, in accordance with which the federal executive authorities spend federal budget funds in accordance with the specified federal law.
The federal law on the federal budget may be amended and supplemented, developed and submitted by the Government of the Russian Federation, as well as other entities having the right to legislative initiative, in the form of drafts of the relevant federal laws. The State Duma considers this bill extraordinarily within 15 days in three readings.
The third stage of the budget process is budget execution.
Currently, treasury execution of budgets is being established. The executive authorities are entrusted with organizing the execution and implementation of budgets, managing budget accounts and budget funds. These bodies are the cashiers of all administrative authorities and recipients of budgetary funds and make payments from budgetary funds on behalf and on behalf of budgetary institutions.
Budgets are executed based on income and expenses. In particular, the Federal Treasury registers all transactions related to the receipt of income into the federal budget and receipts from sources of financing the federal budget deficit, as well as the authorization and financing of federal budget expenditures, in the General Ledger of the Federal Treasury. The Federal Treasury maintains a consolidated register of recipients of federal budget funds. Data from the General Ledger of the Treasury are the basis for generating reports on the execution of the federal budget.
The fourth and final stage of the budget process is the preparation, consideration and approval of the budget execution report. At the end of each financial year, the Minister of Finance issues an order to close the year and prepare a report on the execution of the federal budget as a whole and the budget of each state extra-budgetary fund separately. Based on this order, all recipients of budget funds prepare annual reports on income and expenses. The main managers of budgetary funds consolidate and summarize the reports of the budgetary institutions subordinate to them.
In contrast to the previously effective budget legislation, the Budget Code of the Russian Federation established the provision that annually, no later than June 1 of the current year, the Government of the Russian Federation submits to the State Duma and the Accounts Chamber of the Russian Federation a report on the execution of the federal budget for the reporting financial year in the form of a federal law. The Accounts Chamber of the Russian Federation audits the report on the execution of the federal budget and draws up a conclusion, which is sent to the State Duma. The State Duma considers the report submitted by the Government within 1.5 months after receiving the conclusion of the Accounts Chamber of the Russian Federation. When considering the report, the Duma hears reports on the execution of the federal budget from the heads of the Federal Treasury and the Minister of Finance, as well as a report from the Prosecutor General of the Russian Federation on compliance with the rule of law in the field of budget legislation and the conclusion of the Chairman of the Accounts Chamber of the Russian Federation.
Along with these persons, the Chairman of the Constitutional Court of the Russian Federation, the Chairman of the Supreme Arbitration Court of the Russian Federation, and the Chairman of the Supreme Court of the Russian Federation can speak or present reports at a meeting of the State Duma with an analysis of cases considered during the year related to budget disputes and violations of budget legislation.
Based on the results of consideration of the report and conclusion of the Accounts Chamber of the Russian Federation, the State Duma makes one of the following decisions: to approve the report on the execution of the federal budget or to reject the report on the execution of the federal budget.
State and municipal financial control must be exercised at all stages of the budget process.
Legislative (representative) state and municipal bodies exercise financial control in the following forms:
Preliminary control - during the discussion and approval of draft laws (decisions) on the budget and other draft laws (decisions) on budgetary and financial issues;
Current control - during the consideration of individual issues of budget execution at meetings of committees, commissions, working groups of legislative (representative) bodies, in parliamentary hearings and in connection with parliamentary requests;
Subsequent control - during the review and approval of reports on budget execution.
The powers of the named legislative (representative) bodies to exercise control include the rights to:
Obtaining from executive authorities and local governments the necessary accompanying materials when approving the budget;
Receiving from the bodies executing the budget operational information on their execution;
Approval (non-approval) of the budget execution report;
Creation of our own control bodies (Accounts Chamber of the Russian Federation, control chambers, other bodies of legislative (representative) bodies of constituent entities of the Russian Federation and local governments) to conduct an external audit of budgets;
Evaluating the activities of budget executing bodies.
Executive authorities and local governments are required to provide all information requested from them on budgetary issues. In turn, these bodies, including the Ministry of Finance of the Russian Federation, the Federal Treasury, financial bodies of the constituent entities of the Russian Federation and municipalities, main managers, managers of budget funds have the right to exercise financial control themselves.
The Ministry of Finance of the Russian Federation exercises internal control over the use of budgetary funds by the main managers, managers and recipients of budgetary funds, and in cases provided for by law, over the execution of the budgets of the constituent entities of the Russian Federation and local budgets. It also organizes financial control, inspections and audits of legal entities - recipients of guarantees from the Government of the Russian Federation, budget loans, budget loans and budget investments.
The Federal Treasury exercises preliminary and current control over the conduct of operations with budgetary funds of the main managers, administrators and recipients of budgetary funds, credit institutions, other participants in the budget process for executing budgets and budgets of state extra-budgetary funds, interacts with other federal executive authorities in the process of implementing this control and coordinates their work.
The main managers and administrators of budgetary funds exercise financial control over the use of budgetary funds by recipients of budgetary funds in terms of ensuring the intended use and timely return of budgetary funds, as well as the submission of reports and payment of fees for the use of budgetary funds. The main managers of budget funds conduct inspections of subordinate state and municipal enterprises and budgetary institutions.
Financial authorities of the constituent entities of the Russian Federation and municipalities exercise financial control over operations with budgetary funds of the main managers, administrators and recipients of budgetary funds, credit institutions, and other participants in the budget process in the independent execution of budgets. When transferring the execution of the budget to the bodies of the Federal Treasury, these bodies exercise financial control over compliance by these subjects of the budget process with the conditions for the allocation, distribution, receipt, intended use and return of budget credits, budget loans, budget investments, state and municipal guarantees.
Organizational and legal basis for the execution of budgets for income and expenses. The procedure for executing budgets for expenses. Immunity of budgets.
Budget execution- this is the most important stage of the budget process for the mobilization and use of budget funds, in the process of execution of which executive authorities, financial and tax authorities, credit institutions, legal entities and individuals - payers of taxes to the budget, recipients of budget funds participate.
The execution of the federal budget, the budget of a state extra-budgetary fund, the budget of a constituent entity of the Russian Federation, the budget of a territorial state extra-budgetary fund, the local budget is ensured by the Government of the Russian Federation, the highest executive body of state power of a constituent entity of the Russian Federation, and local administration.
The organization of budget execution is entrusted to the relevant financial authority.
In Russia, treasury execution of budgets is established. The executive authorities are entrusted with organizing the execution and implementation of budgets, managing budget accounts and budget funds. These bodies are cashiers for all managers and recipients of budgetary funds and make payments from budgetary funds on behalf and on behalf of budgetary institutions.
The budget is executed on the basis of the unity of the cash register and the jurisdiction of expenses.
Cash services for the execution of budgets of the budget system of the Russian Federation are provided by the Federal Treasury.
The powers of the Federal Treasury to provide cash services for the execution of budgets may be transferred to the executive bodies of state power of a constituent entity of the Russian Federation, subject to the financial support of the powers from the own budget revenues of the constituent entity of the Russian Federation and the availability of the property necessary for their implementation in the ownership of the constituent entity of the Russian Federation.
For cash services for budget execution, the Federal Treasury opens accounts with the Central Bank of the Russian Federation. All cash transactions for the execution of budgets are carried out by the Federal Treasury through accounts and are reflected in the reports on cash execution of budgets submitted to the financial authorities.
The principle of cash unity is the enrollment of all incoming budget revenues, the attraction and repayment of sources of financing the budget deficit and the implementation of all expenses from a single budget account.
Budgets of all levels of the budget system of the Russian Federation are executed on the basis of the principle of cash unity.
Budget execution is carried out by authorized executive bodies on the basis of the budget schedule.
The budget list is compiled by the main manager of budget funds for managers and recipients of budget funds on the basis of the approved budget in accordance with the functional and economic classifications of expenditures of the budgets of the Russian Federation with a quarterly breakdown and is submitted to the executive authority responsible for drawing up the budget within 10 days from the date of approval of the budget .
Based on the budget lists of the main managers of budget funds, the body responsible for drawing up the draft corresponding budget draws up a consolidated budget list within 15 days after approval of the budget. The consolidated budget list is approved by the head of the specified body in the prescribed manner and no later than 17 days after approval of the budget is sent to the body executing the budget. At the same time, the consolidated budget list is sent for information to the relevant representative and control bodies.
Execution of budgets based on income provides for:
1) transfer and crediting of income to a single budget account;
2) distribution of regulatory revenues in accordance with the approved budget;
3) return of excess amounts of income paid to the budget;
4) accounting for budget revenues and reporting on the revenues of the corresponding budget.
Expenditure budgets are executed within the limits of the actual availability of budget funds in a single budget account in compliance with mandatory, consistently implemented procedures for authorization and financing.
The main stages of authorization in the execution of budget expenditures are:
1) preparation and approval of the budget schedule;
2) approval and communication of notifications about budgetary allocations to managers and recipients of budgetary funds, as well as approval of estimates of income and expenses to managers of budgetary funds and budgetary institutions;
3) approval and communication of notifications about the limits of budget obligations to managers and recipients of budget funds;
4) acceptance of monetary obligations by recipients of budget funds;
5) confirmation and verification of the fulfillment of monetary obligations.
The financing procedure involves spending budget funds.
Within 10 days from the date of approval of the consolidated budget schedule, the body executing the budget communicates the indicators of the specified schedule to the managers and recipients of budget funds.
The indicators of the consolidated budget schedule are communicated in the form of notifications of budget allocations for the period of validity of the approved budget.
Within 10 days from the date of receipt of notification of budgetary allocations, the budgetary institution is obliged to draw up an estimate of income and expenses in the prescribed form for its approval by higher authorities, and within five days the manager of budgetary funds approves it.
The estimate of income and expenses of a budgetary institution, which is the main manager of budgetary funds, is approved by the head of the main manager of budgetary funds.
The estimate of income and expenses of a budgetary institution within one working day from the date of its approval is transferred by the budgetary institution to the body executing the budget.
Budget commitment– an obligation recognized by the body executing the budget to spend funds from the corresponding budget within a certain period of time, arising in accordance with the law on the budget and the consolidated budget schedule.
The limit of budget obligations is the volume of budget obligations determined and approved for the manager and recipient of budget funds by the body executing the budget for a period not exceeding three months.
Limits on budget obligations for managers and recipients of budget funds are approved by the body executing the budget on the basis of distribution projects approved by the main managers of budget funds.
The limits of budget obligations are communicated to all managers and recipients of budget funds by the body executing the budget no later than five days before the start of their validity period.
A consolidated register of limits on budget obligations for all managers and recipients of budget funds is submitted by the authorized executive body to the control body created by the legislative (representative) body.
The limit of budget obligations cannot differ from the volume of budget allocations per quarter.
Changing the limits of budget obligations is possible in the event of a change in budget allocations or in the event of blocking expenses. A change in the limits of budget obligations is possible if the body executing the budget has delayed the execution of the provided limits of budget obligations.
Recipients of budget funds can accept monetary obligations to make expenses and payments by drawing up payment and other documents necessary to make expenses and payments, within the limits of budget obligations and estimates of income and expenses brought to them.
The body executing the budget spends budget funds after checking the compliance of the drawn up payment and other documents necessary for making expenses with the requirements of the Budget Code, the approved estimates of income and expenses of budgetary institutions and the established limits of budget obligations.
The list and forms of documents submitted to the body executing the budget to confirm monetary obligations are approved by a legal act of the executive body.
The body executing the budget carries out the procedure for confirming the fulfillment of monetary obligations and, no later than three days from the date of submission of payment documents, issues a permitting inscription.
Expenditure of budget funds is carried out by writing off funds from a single budget account in the amount of a confirmed budget obligation in favor of individuals and legal entities. The volume of budget funds spent must correspond to the volume of confirmed monetary obligations.
If in the process of budget execution there is a decrease in the volume of budget revenues or receipts from sources of financing the budget deficit, which leads to incomplete financing of expenses compared to the approved budget by no more than 10% of annual assignments, the Government of the Russian Federation, the executive body of a constituent entity of the Russian Federation or a local body self-government has the right to decide to introduce a regime for reducing budget expenditures and introduce the specified regime.
The immunity of the budgets of the budgetary system of the Russian Federation is a legal regime in which foreclosure on the funds of the budgets of the budgetary system of the Russian Federation is carried out only on the basis of a judicial act.
All budget revenues, sources of financing the budget deficit, budget expenses, as well as operations carried out in the process of budget execution are subject to budget accounting based on a unified chart of accounts.
Reporting on budget execution can be operational, quarterly, semi-annual and annual. Collection, compilation, preparation and presentation of reports on budget execution are carried out by the authorized executive body.
In accordance with the established procedure, the authorized executive body submits quarterly, semi-annual and annual reports on budget execution to the representative body and the relevant control body, as well as to the Federal Treasury.
The annual report on budget execution is subject to approval by the representative body.
The procedure for submitting information to representative bodies on operational, quarterly and semi-annual reports on budget execution is determined by the legal acts of the relevant representative bodies.
Municipalities submit, in the prescribed manner, information on the execution of local budgets to the State Committee on Statistics.
Responsibility for violation of budget legislation.
Legal responsibility is a reaction to an offense. The offense serves as the basis for liability; without wrongdoing there is no liability.
Any legal liability is characterized by three features: a) state coercion; b) a negative assessment of the act that forms the offense and the subject who committed this act; c) the occurrence of unfavorable consequences for the offender, which is the essence of punishment.
Financial and legal responsibility for budget offenses is characterized by the following features: 1) this responsibility is established directly by budget legislation (and only by the Budget Code of the Russian Federation and other federal laws); 2) the subject of budgetary legal relations is held accountable; 3) responsibility involves the application of penalties to a person guilty of non-fulfillment or improper execution of orders provided for by the norms of budget legislation; 4) the basis of liability is a budget offense, that is, a violation of budget legislation; 5) responsibility consists of applying specific budgetary sanctions; 6) bringing to budgetary and legal responsibility is carried out by bodies executing budgets; 7) bringing to responsibility is carried out in the manner established by budget legislation; 8) budgetary and legal responsibility is a means of ensuring proper implementation of the requirements of budget legislation.
When bringing a budget offender to legal responsibility, the state, as a rule, pursues three goals. The first goal is to ensure the implementation of budget legislation. This is especially true in situations where the recipient of budget funds is held accountable. The second goal is to punish the offender, which serves as a means of educating him and preventing repeated offenses. The third goal is to protect the property interests of participants in budget legal relations. Within the framework of financial responsibility, responsibility for violations of budget legislation forms a special type of responsibility - budgetary and legal responsibility. Budgetary and legal responsibility is the application by authorized bodies executing the budget of the measures of legal liability established by this legislation to the violator of budget legislation, imposing additional burdens of a property nature on the offender.
Characterizing the legal status of the constituent entities of the Russian Federation in the system of liability for violation of budget legislation, we note the following circumstances: Firstly, the constituent entities of the Russian Federation are not authorized to establish liability for violations of budgetary legislation (in the form of both administrative and budgetary legal liability). Only authorized federal government bodies are authorized to establish such liability. However, secondly, it is a violation of the budgetary legislation of the constituent entities of the Russian Federation that can express the objective side of a budgetary-legal or administrative budgetary offense, which will form the basis for bringing the offender to budgetary-legal or administrative responsibility, respectively; Thirdly, the constituent entities of the Russian Federation, represented by the bodies executing the budgets of the constituent entities of the Russian Federation, are authorized to bring offenders to budgetary and legal responsibility for committing budgetary offenses, in the manner established by the Budget Code of the Russian Federation. Fourthly, the constituent entities of the Russian Federation, represented by the bodies executing the budgets of the constituent entities of the Russian Federation, are authorized to initiate cases to bring offenders to administrative and legal responsibility for violations of budget legislation by drawing up a protocol on the commission of a budgetary offense. Fifthly, the constituent entities of the Russian Federation, represented by authorized government bodies, can themselves be brought to budgetary and legal responsibility for violations of budgetary legislation as offenders. Sixth, government bodies of the constituent entities of the Russian Federation executing budgets, as well as their officials, may be held administratively liable for violations of budget legislation as offenders.
The following measures may be applied to violators of budget legislation:: warning about improper execution of the budget process; blocking expenses; withdrawal of budget funds; suspension of transactions on accounts in credit institutions; imposition of a fine; accrual of penalties; other measures in accordance with this Code and federal laws.
Federal and territorial extra-budgetary funds: legal status, procedure for the formation and use of financial resources.
Off-budget funds– represent a set of financial resources at the disposal of central or local authorities and having specific purposes. Depending on their intended purpose, they are divided into economic and social, in accordance with the level of government, state and regional.
TO social funds include: pension fund, compulsory social insurance fund, compulsory health insurance fund.
TO economic– road funds, fund for the reproduction of the mineral resource base.
The material source of extra-budgetary funds is national income.
These funds are created in two ways:
Allocation from the budget of certain expenses that are of particular importance;
Determining your own sources of income.
The income of extra-budgetary funds includes:
Special targeted taxes and fees;
Deductions from the profits of enterprises, institutions, organizations;
Budget funds;
Profit from commercial activities of enterprises established by the fund;
Compulsory social insurance is provided through extra-budgetary funds.
Compulsory social insurance– part of the state form of social protection of the population, the specificity of which is the insurance of working citizens, carried out in accordance with federal law, against possible changes in their financial and (or) social situation, including due to circumstances beyond their control.
Compulsory social insurance is a system of legal, economic and organizational measures created by the state aimed at compensating or minimizing the consequences of changes in the material and (or) social situation of working citizens, and in cases provided for by the legislation of the Russian Federation, other categories of citizens due to their recognition as unemployed, labor injury or occupational disease, disability, illness, injury, pregnancy and childbirth, loss of a breadwinner, as well as the onset of old age, the need to receive medical care, sanatorium treatment and the occurrence of other social insurance risks established by the legislation of the Russian Federation, subject to compulsory social insurance.
If several insured events occur simultaneously, the procedure for paying insurance coverage for each insured event is determined in accordance with federal laws on specific types of compulsory social insurance.
Sources of cash receipts for compulsory social insurance budgets are:
Insurance premiums;
Subsidies, other funds from the federal budget, as well as funds from other budgets in cases provided for by the legislation of the Russian Federation;
Penalties and penalties;
Money reimbursed to insurers as a result of recourse claims against the insured persons responsible for causing harm;
Income from the placement of temporarily free funds of compulsory social insurance;
Other income that does not contradict the legislation of the Russian Federation.
Each type of social insurance risk corresponds to a certain type of insurance coverage. Insurance coverage for certain types of compulsory social insurance is:
1) payment to the medical institution of expenses associated with providing the insured person with the necessary medical care;
2) old age pension;
3) disability pension;
4) survivor's pension;
5) temporary disability benefits;
6) benefits in connection with work injury and occupational disease;
7) maternity benefits;
8) monthly child care allowance until the child reaches the age of one and a half years;
9) unemployment benefits;
10) a one-time benefit for women who registered with medical institutions in the early stages of pregnancy;
11) one-time benefit for the birth of a child;
12) allowance for sanatorium treatment;
13) social benefit for funeral;
14) payment for vouchers for sanatorium treatment and health improvement for employees and members of their families.
The funds of state extra-budgetary funds are federal property. They are not included in the budgets of all levels of the budget system of the Russian Federation and are not subject to seizure.
The composition of state extra-budgetary funds includes:
Pension Fund of the Russian Federation;
Social Insurance Fund of the Russian Federation;
Federal Compulsory Medical Insurance Fund.
Pension Fund (28% of the payroll is included in the unified social tax)
Pension Fund funds are allocated to:
Payment in accordance with the legislation in force on the territory of the Russian Federation, interstate and international treaties of state pensions, including to citizens traveling outside the Russian Federation;
Payment of child care benefits over the age of one and a half years;
Providing financial assistance to elderly and disabled citizens by social protection authorities;
Financial and logistical support for the current activities of the Pension Fund and its bodies;
Other events related to the activities of the Pension Fund.
Types of pensions:
1. Labor pension is accrued when two conditions are met - age (m - 60 years, woman - 55 years) and length of service (m - 25 years, woman - 20 years). For each year of work beyond the pensionable service, 1% is accrued, but not more than 20% additionally.
2. Social pension – paid upon reaching retirement age, the amount of the social pension is equal to the minimum pension.
The management of the fund is carried out by the board and its permanent body - the executive directorate. Branches in the republics within the Russian Federation are subordinate to it. There are authorized branches of the fund in cities and districts.
Social Insurance Fund (4% of the payroll is included in the unified social tax; by category, contributions “from accidents”)
The main objectives of the Foundation are:
Providing state-guaranteed benefits for temporary disability, pregnancy and childbirth, for women registered in the early stages of pregnancy, at the birth of a child, for child care until the child reaches the age of one and a half years, as well as social benefits for burial or reimbursement of the cost of a guaranteed list of funeral services ;
Sanatorium and resort services for employees and their children;
Participation in the development and implementation of state programs for protecting the health of workers, measures to improve social insurance;
Implementation of measures to ensure the financial stability of the Fund;
Development, jointly with the Ministry of Labor and Social Development of the Russian Federation and the Ministry of Finance of the Russian Federation, of proposals on the size of the tariff of insurance contributions for state social insurance;
Organization of work on training and advanced training of specialists for the state social insurance system, explanatory work among policyholders and the population on social insurance issues;
Cooperation with similar funds (services) of other states and international organizations on social insurance issues.
The management of the activities of the Social Insurance Fund is carried out by its chairman.
To ensure activities, a central apparatus is created, and in regional and central branch offices and branches - apparatuses of the bodies of the Social Insurance Fund.
Compulsory health insurance fund (territorial 3.4%; federal 0.2% with payroll included in the unified social tax)
The main objectives of the Federal Fund are:
1) financial support for the rights of citizens to medical care established by the legislation of the Russian Federation at the expense of compulsory medical insurance;
2) ensuring the financial sustainability of the compulsory health insurance system and creating conditions for equalizing the volume and quality of medical care provided to citizens throughout the Russian Federation within the framework of the basic compulsory health insurance program;
3) accumulation of financial resources of the Federal Fund to ensure the financial stability of the compulsory health insurance system.
Territorial fund:
1) accumulates financial resources of the Territorial Fund for compulsory medical insurance of citizens;
2) finances compulsory health insurance provided by medical insurance organizations that have the appropriate licenses (hereinafter referred to as insurers) that have entered into compulsory health insurance contracts according to differentiated per capita standards established by the board of the Territorial Fund;
3) carries out financial and credit activities to ensure the compulsory health insurance system;
4) equalizes the financial resources of cities and districts allocated for compulsory health insurance;
5) provides loans, including on preferential terms, to insurers if they have a justified lack of financial resources;
6) accumulates financial reserves to ensure the sustainability of the compulsory health insurance system;
7) develops rules for compulsory medical insurance of citizens in the relevant territory;
8) exercises control over the rational use of financial resources allocated for compulsory health insurance of citizens;
9) coordinates, together with executive authorities, professional medical associations, the pricing of the cost of medical care, the territorial program of compulsory health insurance for the population and makes proposals on the financial resources necessary for its implementation;
10) makes proposals on the insurance tariff of contributions for compulsory health insurance;
11) coordinates with government bodies, local administration, professional medical organizations, insurers the tariffs for medical and other services for compulsory medical insurance;
12) interacts with the Federal Compulsory Medical Insurance Fund and other territorial compulsory medical insurance funds;
13) provides the Federal Compulsory Health Insurance Fund with information on the financial resources of the compulsory health insurance system and other information within its competence;
14) conducts explanatory work on issues within the competence of the Territorial Fund;
15) carries out other measures to organize compulsory health insurance for citizens.
Road fund:
On the territory of the Russian Federation, financing of costs associated with the maintenance, repair, reconstruction and construction of public roads is carried out at the expense of targeted extra-budgetary funds (with the exception of taxes collected in the territories of closed administrative-territorial entities) concentrated in the road funds of the constituent entities of the Russian Federation (hereinafter – territorial road funds).
Targeted extra-budgetary funds of road funds are generated through:
Road user tax (1%);
Tax on vehicle owners (depending on the type of vehicle);
Excise taxes on the sale of cars for personal use of citizens.
Funds from loans, lotteries, sales of shares, penalties, voluntary contributions, as well as from other sources (including allocations from the budgets of the Russian Federation) can also be allocated to road funds.
Tax law: concept, sources, composition of legislation on taxes and fees. Principles (basic principles) of legislation on taxes and fees.
Tax law is a set of legal norms that regulate a special type of social relations, including various areas of state, property, power and administrative relations and is a special type of financial relations. In other words, these are legal norms that, taken together, on the basis of authoritative legal subordination, regulate the property relations of individuals and legal entities in the tax sphere.
In the Russian Federation, tax activity is carried out in accordance with the Constitution of the Russian Federation (Article 57, paragraph “3”, Article 71, Article 132), which fixed the fundamental provisions of taxation and fees, the Tax Code of the Russian Federation (Part 1), as well as the laws of the Russian Federation Federation “On the Fundamentals of the Tax System in the Russian Federation” dated December 27, 1991, “On Personal Income Tax” dated December 7, 1991, “On the Profit Tax of Enterprises and Organizations” dated December 27, 1991, “On value added tax" dated December 6, 1991, "On the State Tax Service of the RSFSR" dated March 21, 1991, Federal Law "On the entry into force of part one of the Tax Code of the Russian Federation" dated July 31, 1998.
Thus, the tax legislation of the Russian Federation consists of the Tax Code of the Russian Federation (Part 1) and federal laws on taxes and (or) fees adopted in accordance with it.
In accordance with Art. 2 of the Tax Code of the Russian Federation, the legislation on taxes and fees regulates power relations regarding the establishment, introduction and collection of taxes and fees in the Russian Federation, as well as relations arising in the process of tax control and prosecution for committing a tax offense.
The basic principles of tax legislation of the Russian Federation are enshrined in Art. 3 of the Tax Code of the Russian Federation. Let's list them:
1. The principle of universality of taxation - every person must pay legally established taxes and fees.
2. The principle of equality of taxation - equality of all taxpayers before the tax law is assumed.
3. The principle of fairness - the actual ability of the taxpayer to pay tax is taken into account, while everyone is obligated to participate in financing state expenses.
4. The principle of proportionality, or economic balance, takes into account the balance of interests of the taxpayer and the state treasury.
5. The principle of denying the retroactive force of the law - laws changing the amount of tax payments do not apply to relations that arose before their adoption.
6. The principle of one-time taxation - one and the same object can be subject to one type of tax and only once during the taxation period specified by law.
7. The principle of preferential taxation - tax laws must have legal norms that establish tax benefits for certain and (or) certain groups of taxpayers, both legal entities and individuals, easing the tax burden.
8. The principle of equal protection of the rights and interests of taxpayers and the state - each of the participants in tax legal relations has the right to protect their legal rights and interests in the manner prescribed by law.
9. The principle of non-discrimination - taxes and fees cannot be discriminatory and applied differently based on political, ideological, ethnic, religious and other differences between taxpayers. In addition, in accordance with paragraph 2 of Art. 3 of the Tax Code of the Russian Federation, it is not allowed to establish differentiated rates of taxes and fees, tax benefits depending on the form of ownership, citizenship of individuals or place of origin of capital.
The structure of tax legal relations, i.e., social relations regulated by the rules of tax law, includes subject, object and content.
The subjects of tax legal relations, or their participants, are: taxpayers (legal entities and individuals), tax agents (organizations - state tax inspectorates and individuals - tax representatives), the Ministry of the Russian Federation for Taxes and Duties and its territorial divisions. State Customs Committee of the Russian Federation and its territorial divisions. Ministry of Finance of the Russian Federation, ministries of finance of republics, financial departments of administrations of territories, regions, federal cities, autonomous regions, autonomous districts, districts and cities, other authorized bodies.
The object of tax legal relations is real and movable property (tangible and intangible objects).
In addition, the Tax Code of the Russian Federation establishes the rights and obligations of taxpayers (Article 21 and Article 23, respectively), the possibility of ensuring and protecting their rights (Article 22), the rights and obligations of tax authorities (Article 31 and Article 32, respectively), duties of officials of tax authorities (Article 33) and responsibility of tax authorities, customs authorities and their officials (Article 35).
The Criminal Code of the Russian Federation provides for the liability of a citizen for tax evasion (Article 198) and of an organization for evasion of taxes from organizations (Article 199).
Evasion of a citizen from paying tax by failure to submit a declaration of income, if filing a declaration is mandatory, or by including in the declaration deliberately distorted data on income, committed on a large scale, is punishable by a fine in the amount of 200 to 500 times the minimum wage or in the amount of the salary or other income of the convicted person for a period of two to five months, or compulsory work for a period of 180 to 240 hours, or imprisonment for a term of up to one year. In this case, a citizen’s evasion from paying tax is recognized as committed on a large scale if the amount of unpaid tax exceeds 200 times the minimum wage, and on an especially large scale - 500 times the minimum wage.
Tax evasion from organizations (Article 199 of the Criminal Code of the Russian Federation) by including in accounting documents deliberately distorted data on income or expenses or by concealing other objects of taxation, committed on a large scale, is punishable by deprivation of the right to hold certain positions or engage in certain activities for a period of up to five years, or arrest for a term of four to six months, or imprisonment for a term of up to three years.
In this case, tax evasion from organizations is recognized as committed on a large scale if the amount of unpaid tax exceeds 1000 times the minimum wage.
Tax and fee: concepts, main features, functions. Types of taxes and fees. The procedure for their establishment and introduction.
Taxes- these are mandatory, individual gratuitous payments collected from organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management, for the purpose of financial support for the activities of the state and (or) municipalities (Article 8 of the Tax Code of the Russian Federation ).
Under collection is understood as a mandatory fee levied on organizations and individuals, the payment of which is one of the conditions for the commission of legally significant actions in the interests of fee payers by state bodies, local governments, other authorized bodies and officials, including the granting of certain rights or the issuance of permits (licenses) ( Art. 8 of the Tax Code of the Russian Federation).
The Constitution of the Russian Federation and the Tax Code of the Russian Federation establishes certain tax principles:
Universality (everyone is obliged to pay legally established taxes and fees - Article 57 of the Constitution of the Russian Federation);
The supremacy of representative power in their establishment (Articles 57, 71, 76, 105, 106 of the Constitution of the Russian Federation);
Direct effect in time of laws establishing new taxes or worsening the situation of taxpayers (Article 57 of the Constitution of the Russian Federation, Article 5 of the Tax Code of the Russian Federation);
One-time taxation - the same object cannot be subject to taxes of the same type (level) twice during one taxation period;
The order of collection of taxes from one source (in order to reduce the tax burden);
Temporary limitation of tax claims;
Certainty of taxation - in order to determine the obligations of the taxpayer, legislative acts establish and determine the subject of the tax, the object and source of the tax, the unit of taxation, the tax rate, the deadlines for paying the tax, the budget or extra-budgetary fund into which the tax is credited;
The priority of international taxation norms and rules ratified by the Russian Federation in case of discrepancies with national law (Article 15 of the Constitution of the Russian Federation, Article 7 of the Tax Code of the Russian Federation).
The essence and role of taxes are manifested in their functions:
Fiscal - providing the state with financial resources;
Regulatory - the impact on social relations in the state, primarily on production processes. The relationship between these functions when collecting taxes varies depending on the type of tax.
The Tax Code of the Russian Federation all taxes are subdivided on the:
Federal;
Taxes of constituent entities of the Russian Federation (regional);
Local.
The peculiarity of federal taxes is that they are established only by federal laws and are required to be collected throughout the country. Federal ones include: value added tax, excise taxes, profit tax, state duty, customs revenue, personal income tax, etc.
Regional taxes include payments established by the Tax Code of the Russian Federation, the collection of which is mandatory on the territory of all constituent entities of the Russian Federation. The specific procedure for collecting these taxes on the territory of different subjects may differ, since representative authorities independently determine the tax rate, the procedure for its payment, and tax benefits.
Local taxes- these are taxes that are established and put into effect in accordance with the Tax Code of the Russian Federation by regulatory legal acts of representative bodies of local government and are obligatory for payment on the territory of the relevant municipalities. Representative authorities independently determine the tax rate, the procedure for its payment, and tax benefits.
Depending on payers taxes can be divided into taxes:
From individuals;
From legal entities and their branches, divisions that have a separate balance and account;
Mixed composition, that is, levied on both individuals and legal entities.
Depending on whether the legal payer is simultaneously the actual payer, taxes are divided into:
Indirect.
Effect of legislation on taxes and fees over time. Inconsistency of regulatory legal acts on taxes and fees with the Tax Code: legal consequences.
Article 5 of the Tax Code of the Russian Federation. Effect of acts of legislation on taxes and fees over time. On identifying the constitutional and legal meaning of paragraph 1 of Article 5, see Resolution of the Constitutional Court of the Russian Federation dated July 2, 2013 N 17-P. 1. Acts of legislation on taxes come into force no earlier than one month from the date of their official publication and no earlier than the 1st day of the next tax period for the corresponding tax, except for the cases provided for in this article. Acts of legislation on fees come into force no earlier than one month from the date of their official publication, except for the cases provided for in this article. Federal laws amending this Code in terms of establishing new taxes and (or) fees, as well as acts of legislation on taxes and fees of constituent entities of the Russian Federation and regulatory legal acts of representative bodies of municipalities introducing taxes, come into force no earlier than January 1 of the year. , following the year of their adoption, but not earlier than one month from the date of their official publication. (as amended by Federal Laws dated 07/09/1999 N 154-FZ, dated 07/27/2006 N 137-FZ) Acts of legislation on taxes and fees specified in paragraphs 3 and 4 of this article may come into force within the periods expressly provided for by these acts, but not earlier than the date of their official publication. (as amended by Federal Law dated July 23, 2013 N 248-FZ) 2. Acts of legislation on taxes and fees that establish new taxes and (or) fees, increase tax rates, fees, establish or aggravate liability for violation of legislation on taxes and fees fees that establish new obligations or otherwise worsen the position of taxpayers or payers of fees, as well as other participants in relations regulated by legislation on taxes and fees, do not have retroactive effect. (as amended by Federal Law dated 07/09/1999 N 154-FZ) 3. Acts of legislation on taxes and fees that eliminate or mitigate liability for violation of legislation on taxes and fees or establish additional guarantees for the protection of the rights of taxpayers, fee payers, tax agents, their representatives have retroactive effect. (as amended by Federal Law No. 154-FZ dated 07/09/1999) 4. Legislative acts on taxes and fees that abolish taxes and (or) fees, reduce tax rates (fees), eliminate the responsibilities of taxpayers, payers of fees, tax agents, their representatives or otherwise improving their position may have retroactive effect if expressly so provided. (as amended by Federal Law No. 154-FZ of July 9, 1999) 5. The provisions provided for in this article also apply to regulatory legal acts on taxes and fees of federal executive authorities, executive authorities of constituent entities of the Russian Federation, and local governments. Article 6. Inconsistency of regulatory legal acts on taxes and fees with this Code
1. A normative legal act on taxes and fees is recognized as inconsistent with this Code if such an act:
1) issued by a body that, in accordance with this Code, does not have the right to issue acts of this kind, or issued in violation of the established procedure for issuing such acts;
2) cancels or limits the rights of taxpayers, fee payers, tax agents, their representatives or the powers of tax authorities, customs authorities established by this Code;
3) introduces duties not provided for by this Code, or changes the content of the duties of participants in relations regulated by the legislation on taxes and fees, as defined by this Code, and other persons whose duties are established by this Code;
4) prohibits the actions of taxpayers, fee payers, tax agents, and their representatives permitted by this Code;
5) prohibits actions of tax authorities, customs authorities, their officials, permitted or prescribed by this Code;
6) permits or allows actions prohibited by this Code;
7) changes the grounds, conditions, sequence or order of actions established by this Code of participants in relations regulated by the legislation on taxes and fees, other persons whose duties are established by this Code;
8) changes the content of the concepts and terms defined in this Code, or uses these concepts and terms in a different meaning than they are used in this Code;
9) otherwise contradicts the general principles and (or) the literal meaning of specific provisions of this Code.
2. Regulatory legal acts on taxes and fees specified in paragraph 1 of this article are recognized as inconsistent with this Code in the presence of at least one of the circumstances provided for in paragraph 1 of this article.
3. The recognition of a normative legal act as not complying with this Code is carried out in court, unless otherwise provided by this Code. The Government of the Russian Federation, as well as another executive body or executive body of local self-government that adopted the specified act, or their higher bodies have the right to cancel this act or make necessary changes to it before judicial review.
4. With regard to regulatory legal acts regulating the procedure for collecting taxes payable in connection with the movement of goods across the customs border of the Customs Union within the framework of the EurAsEC (hereinafter in this Code - the Customs Union), the provisions established by the customs legislation of the Customs Union and the legislation of the Russian Federation are applied about customs affairs.
Subjects of tax legal relations, their general characteristics.
Tax legal relationship- a type of financial legal relationship, that is, a public financial relationship regulated by the norms of a sub-branch (section) of financial law - tax law, the subjects of which are endowed with certain rights and responsibilities arising in connection with the collection of taxes.
Tax legal relations, like any other legal relations, consists of of the following elements: subjects, object and content.
Tax legal relations involve various subjects: taxpayers (legal entities and individuals), bodies of the Ministry of the Russian Federation for taxes and duties, federal tax police bodies, credit organizations. In certain cases, other entities also participate in tax relations, for example, employers (legal entities and entrepreneurs operating without forming a legal entity), who transfer taxes from the salaries of their employees.
Object tax legal relationship is what gives rise to this legal relationship - a mandatory gratuitous payment (contribution), the amount of which is determined in accordance with the rules established by tax legislation.
The legislator provides for facts the occurrence of which entails the termination of the tax legal relationship.
Legal composition of tax: elements of taxation and their legal characteristics.
The legal structure of a tax is a system of legislatively established elements of a tax model that clearly defines the taxpayer’s obligation to calculate and make tax payments to the budget or to an extra-budgetary fund.
The legal design of the tax makes it possible to consider the tax not in static terms, but in its dynamics in the form of a process. It represents a model construction of a specific tax in the interrelation of norms, legal facts and legal relations, therefore, in contrast to the elemental composition of a tax in statics, the legal structure of a tax allows us to trace both the implementation of the rights and obligations of the subjects of legal relations, and the impact of these relations on the economic, political and social spheres of society.
The tax must be sufficiently defined. The law on each tax must contain a comprehensive set of information that would make it possible to specifically approve: the obligated person, the amount of the tax liability and the procedure for its execution; boundaries of state claims in relation to taxpayers' property.
Vagueness, ambiguity or incompleteness of tax law can lead to: the possibility of tax evasion on legal grounds (tax loopholes); to abuses by tax authorities, expressed in a broad interpretation of the provisions of the law.
In accordance with Art. 17 of the Tax Code of the Russian Federation, a tax is considered established only when its elements are defined. If the legislator has not established and (or) determined at least one of the elements of the legal composition, the tax cannot be considered established. Accordingly, there is no obligation to pay it.
An analysis of the views of scientists and the current practice of taxation allows us to distinguish two groups of elements of the legal structure of the tax. The first group combines common elements, without which the legal structure of the tax cannot be complete, payment of the tax is possible and, accordingly, the tax law will not provide sufficient information for the taxpayer and the tax authorities, and the resulting legal relations will be distorted. As part of the general elements of the legal structure of a tax, two subgroups of elements are distinguished: basic and auxiliary. The main ones include those elements, each of which must be clearly stated in a separate rule of law. Auxiliary elements can be defined in the same norms that prescribe the main elements; the law does not provide for their separate regulation.
Thus, in the composition of the general elements of the legal structure of the tax includes :
1. Basic elements: taxpayer, object of taxation, subject of taxation, tax base, tax rate, tax period, procedure for calculating tax, procedure for paying tax, deadlines for paying tax, methods of paying tax.
2. Auxiliary elements: scale of tax, unit of taxation, source of tax, bearer of the tax burden. The last element in direct taxes coincides with the taxpayer and is independently distinguished only in indirect taxes.
The second group of elements of the legal structure of a tax includes additional elements, without which a tax payment can take place and they only determine the features of making a tax payment to the budget by the taxpayer, these are: tax benefits, the reporting period, and the responsibility of the taxpayer.
Having in hand a set of elements of the legal structure of a tax, having studied their variations, features of the connection and harmonization of their various combinations, the legislator can build any model of taxation in the state in accordance with his tax, economic and social policies.
Taxpayer and tax agent: concept, rights, duties, responsibilities.
Taxpayers and payers of fees are organizations and individuals who, in accordance with the Tax Code of the Russian Federation, are obliged to pay the relevant taxes and fees. The current legislation establishes that the following are recognized as taxpayers and payers of fees:
legal entities;
individuals (citizens);
individuals registered in the prescribed manner and carrying out entrepreneurial activities without forming a legal entity (individual entrepreneurs);
individuals who are not subject to registration as individual entrepreneurs in accordance with the legislation of the Russian Federation and who carry out activities aimed at systematically generating income (private notaries, lawyers, private security guards, etc.)
Tax agents are persons who are entrusted with the responsibility for calculating, withholding and transferring taxes and fees to the appropriate budget (extra-budgetary fund).
Rights and obligations of taxpayers in accordance with Art. 21 and 23 Tax Code of the Russian Federation
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Responsibilities |
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Receive written and oral explanations from tax authorities and other authorized government bodies on the application of legislation on taxes and fees |
Pay taxes and fees established by current legislation |
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Register with the tax authority in a timely manner |
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Keep records of income (expenses) and taxable items in accordance with the established procedure |
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Receive information from the tax authorities at the place of registration about current taxes and fees and other acts, about the rights and obligations of taxpayers, the powers of tax authorities and their officials |
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Submit tax returns, accounting and tax reporting |
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Submit to tax authorities and their officials, in cases provided for by the Tax Code of the Russian Federation, documents necessary for the calculation and payment of taxes |
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Represent your interests in tax legal relations personally or through your representative |
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Require compliance with tax secrecy |
Comply with the legal requirements of tax authorities to eliminate identified violations of tax legislation, and also not interfere with the lawful actions of tax officials |
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Use tax benefits if there are reasons |
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Receive a credit or refund of overpaid or overcharged taxes |
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Report in writing to the tax authority at the place of registration: on opening and closing bank accounts within ten days; about all cases of participation in Russian and foreign organizations (within a month); on separate divisions of the organization within one month from the date of creation; on termination of activity, insolvency (bankruptcy), liquidation - within three days from the date of the decision; about changing location within 10 days; about the change of director or chief accountant |
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Use various tax benefits if there are reasons |
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Request a credit or refund of overpaid or overcharged taxes |
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Obtain permission to change the deadline for paying taxes if there are grounds |
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Be present during an on-site tax audit, receive copies of the tax audit report, as well as tax notices and requests for tax payment |
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Do not comply with unlawful demands of tax authorities |
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Defend your interests in tax legal relations personally or through your representative |
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Ensure for four years the safety of accounting data and other documents necessary for the calculation and payment of taxes, and documents confirming income received (for organizations - also expenses) and taxes paid (withheld) |
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Demand full compensation for losses caused by illegal decisions of tax authorities or their officials. |
For failure to perform or improper performance of his duties, the tax agent is liable in accordance with the legislation of the Russian Federation. The tax agent is obliged to keep records of income paid to taxpayers, taxes withheld and transferred to budgets (extra-budgetary funds), including personally for each taxpayer, and to submit to the tax authority at the place of his registration the documents necessary to control the correctness of calculation, withholding and transfer of taxes.
If it is impossible to fulfill his duties, the tax agent must inform the tax authority at the place of registration within 30 days about the impossibility of withholding tax.
An example of a tax agent is an organization that pays income to its employee. The organization is obliged to calculate and withhold personal income tax from the employee’s income. The employer is obliged to transfer this tax to the appropriate budget within the time limits established by the Tax Code of the Russian Federation.
Tax representative - every taxpayer has the right to represent his interests in the tax authorities with the help of a tax representative on the basis of a power of attorney. In this case, the individual must notarize this power of attorney. For a legal entity, a power of attorney with the seal of the organization, issued in accordance with the civil legislation of the Russian Federation, is sufficient. The power of attorney must reflect the powers of the tax representative, which may include the right to receive copies of documents (acts, decisions, claims) and other rights arising in the process of office work.
Tax authorities: concept, rights, responsibilities.
Structure of tax authorities The term tax authorities covers only the bodies of the Ministry of Taxation, since there is confusion in practice when tax authorities are understood not only by the Ministry of Taxation, but also other bodies. So, from the Tax Code it is quite obvious that tax authorities mean only the bodies of the Ministry of Taxation. This means that the tax police, customs authorities and bodies of extra-budgetary funds do not belong to the tax authorities. Continuing the conversation about the structure of tax authorities, it must be said that today the tax authorities represent a single centralized system of tax authorities. The characterization of this system as a single one means that no other tax authorities can exist except the Ministry of Taxes. We are talking about the constituent entities of the Russian Federation and local self-government. Subjects of the Federation do not have the right to create their own tax authorities. As for local self-government, the issue is more complicated. There is a law on the financial foundations of local self-government, which provides for the creation of municipal tax services.
At the federal level, it is the ministry itself, headed by a minister; the minister is appointed by the president. Thus, this body is one of those federal executive bodies that are directly subordinate to the president.
At the level of the subjects of the Federation, departments of the Ministry of Taxes are created for the subjects of the Federation and inspections of the Ministry of Taxes for the subjects of the Federation are created. Initially, it was the practice that each subject of the Federation had its own territorial body, but subsequently changes began to occur. In addition, interregional inspections of the Ministry of Taxes and Taxes can be created at the level of the constituent entities of the Federation. This is the level of management that today is tied to the federal districts, where such an interregional body can be created and is already being created.
Rights of tax authorities These rights are provided not only in special Article 31 of the Tax Code, but are also scattered throughout the Tax Code, in addition, they are provided for in the current special Law “On Tax Authorities of the Russian Federation,” which is nothing more than that very basic law of 1991 “ About the State Tax Service in the RSFSR", but only in the new edition of 1999. Thus, the rights of tax authorities are large in scope and among them there are significant, important rights, and there are minor ones. But this entire group of powers can be classified in a certain way. The first group of powers is the powers of tax authorities in the field of legal regulation of taxation issues. We are talking about the right of tax authorities to issue acts on taxation issues. These can be regulations, individual acts. We are interested in regulations. The nature of these acts is determined by Article 4 of the Tax Code. These acts do not relate to tax legislation, but, nevertheless, can regulate taxation issues. It must be borne in mind that this power belongs exclusively to the federal body, that is, only the Ministry of Taxation itself can issue such acts. As for the subjects of the Federation, at this level of government the Ministry of Taxes can issue such acts, but they are of a methodological or recommendatory nature.
The next group of powers is the rights of tax authorities in the area of taxpayers fulfilling their obligation to pay taxes. This is the right to the undisputed write-off of arrears and penalties, as well as the right to file lawsuits in court to recover taxes and penalties from the property of taxpayers.
The next group of rights is the rights of tax authorities in the field of tax accounting. It is the tax authorities that carry out tax accounting and determine the procedure for carrying out this accounting, including approving application forms for tax registration, the procedure for filling out these forms, etc. In addition, in the same group there are powers in accordance with which the tax authority has the right to demand from state bodies and other obliged bodies information about the registration actions that these bodies carry out in accordance with their competence. We are talking about registration of legal entities, citizens at their place of residence, registration of real estate transactions, etc.
The next group of rights of tax authorities are rights in the field of tax control. This is the most numerous group of powers. This includes: The right to conduct tax audits (on-site and desk). The right to attract specialists, experts, translators and witnesses to conduct tax control. Moreover, this authority does not imply a choice of behavior options for those involved, that is, to refuse to participate in tax control - this means in certain situations to become liable for tax offenses.
The tax authority has the right to call as witnesses individuals who know or may know some circumstances necessary to conduct tax control. This is the power to control large expenses of individuals. This is the power to survey and inspect almost any premises that are used by the taxpayer to generate income. Such premises may also be residential premises, for example, of an individual entrepreneur or another citizen. In this case, the powers of the tax authorities in this case are not unlimited, and if the taxpayer refuses to inspect such premises, the tax authorities cannot forcibly exercise this power; they have another lever of influence for this: they then have the right to calculate the tax by analogy.
Tax authorities have the right to seize documents and items during tax audits.
Tax authorities have the right to request from banks and other credit organizations documents confirming the execution of payment orders of taxpayers and other documents related to the transfer of tax payments.
In addition, tax authorities have the right to conduct a counter-inspection, which consists of requesting documents from other persons in respect of whom an audit is not carried out, but with whom the taxpayer who is subject to a tax audit is associated.
Tax authorities have the right to summon taxpayers to the tax authorities to give explanations and for other actions necessary to conduct tax control.
Finally, another significant power in this control area is the right to create tax posts in the manner established by the Tax Code. Today we are talking about excise tax posts that operate around the clock and which allow you to track manufactured products, in this case alcohol, and thus control the payment of excise taxes on these manufactured products.
The next group of powers is the rights of tax authorities in the field of applying measures of state coercion and bringing to responsibility. In this matter, tax authorities have the right to bring to justice persons who have committed tax offenses, as well as to carry out a number of actions that are nothing more than measures of state coercion. We are talking, for example, about the seizure of property or the suspension of operations on an account. But we must keep in mind that the authority to collect tax fines is vested in the court, and not the tax authorities, that is, the tax authorities are held accountable, but the code assigns the collection of imposed tax sanctions, namely fines, to the court, and not to the tax authority. There are quite controversial situations here, and I will talk about them
Responsibilities of tax authorities The main responsibilities are spelled out in Article 32 of the Tax Code, this is like a basic article on responsibilities, but other articles of Part 1 of the Tax Code and Part 2 of the Tax Code also contain responsibilities. The responsibilities are as follows. 1. Comply with tax laws.
2. Monitor compliance with tax laws. Thus, tax authorities do not collect taxes, do not collect, do not collect. Tax authorities exercise control over the payment of taxes, control over compliance with tax legislation, and over the fulfillment by taxpayers of their obligation to pay taxes. And the fact that the tax authority has the right to unquestionably write off amounts of arrears and penalties does not actually change the nature of the tax authorities. Tax authorities are control authorities. In this they differ from customs authorities, because customs payments are credited to the account of the customs authority and the customs authority in this regard acts as the body that collects and collects customs payments. The tax authorities do not have any such account; taxes are credited directly to the budget, and the tax office only controls the timeliness of their payment.
3. Taxpayer registration. It must also be said that this responsibility should be the only responsibility assigned exclusively to the tax authorities, that is, the tax authority should be a monopolist in this matter, although here the legislator still allows a situation where parallel accounting exists, at least in social and extra-budgetary funds , and thus the registration of taxpayers begins to unravel, as it were, and here problems arise related to responsibility for violating the registration procedure. It is clear that if this is the registration of a taxpayer, then this is carried out by the tax authorities and liability can only be for failure to register with the tax authorities. And when extra-budgetary funds carry out accounting, the question arises whether there is responsibility if order is violated. Unfortunately, there is no clarity on this issue yet.
4. Tax authorities are required to carry out explanatory work on the application of tax legislation, inform taxpayers free of charge and provide written explanations on the application of tax legislation. Taxpayers have similar rights. And since the tax authorities have a similar corresponding obligation, the legislator thus creates a full-fledged rule when the rights of taxpayers correspond to the obligations of the tax authorities.
5. The obligation to return or offset excessively collected or overpaid amounts of taxes, fees and penalties.
6. Obligation to maintain tax secrecy.
7. Tax authorities are required to send taxpayers copies of tax audit reports, copies of decisions of tax authorities (This is very important. If this obligation is not fulfilled, then this immediately removes the issue of the taxpayer’s liability), as well as tax notices and demands for tax payment.
8. Since the tax authority is not a law enforcement body, but a control body, the duty of the tax authorities includes the obligation to transfer information, materials and documents to the relevant authorities (before the Presidential Decrees - the tax police, after - the Ministry of Internal Affairs) to resolve the issue of initiating a criminal case no later than 10 days after receiving such information.
Tax control: concept, forms of implementation and their characteristics. Tax accounting as a form of tax control.
Tax control is a comprehensive and targeted system of economic and legal actions of competent government bodies, which is based on tax legislation and is aimed at collecting and analyzing information on the fulfillment by taxpayers of the obligation to pay taxes.
The purpose of tax control is to identify violations of tax legislation, suppress them, ensure the reliability of data on the completeness and timeliness of payment of taxes and fees, as well as verify the legality of transactions and actions and hold taxpayers accountable.
Tax control is a necessary condition for the functioning of the tax system. In the absence or low efficiency of tax control, it is difficult to expect that taxpayers will pay taxes and fees on time and in full. Thus, tax control makes it possible to replenish the state budget and discipline taxpayers.
In a broad sense tax control covers all areas of activity of authorized bodies, including tax accounting, tax audits, as well as all areas of activity of controlled entities related to the payment of taxes and fees, the provision of tax reporting, etc.
In the narrow sense Tax control means the conduct of tax audits by authorized bodies.
Tax control faces the following: tasks:
ensure the completeness and timeliness of fulfillment of tax obligations to the budget;
promote correct accounting and preparation of tax accounting and reporting;
ensure compliance with current tax laws;
identify and suppress tax violations.
Tax control methods- this is a set of techniques and methods by which regulatory authorities carry out tax control. When conducting tax control, authorized bodies use general scientific methods:
dialectical approach;
principles of logical and systems analysis;
methods of economic analysis and statistical groupings;
visual inspection;
random check of documents, etc.
The subjects of tax control are the participants in tax legal relations: tax, customs, financial authorities; tax collectors; bodies of state extra-budgetary funds that act within their competence.
Objects of tax control acts (inaction) of taxpayers, tax agents, tax collectors and fees.
Place of tax registration depending on the category of taxpayers
Tax authorities are required to register an organization or individual entrepreneur within five days after submitting the application and the documents provided for by law and send by mail a notice of registration with the tax authority in the forms established by the federal executive body authorized for control and supervision in the region taxes and fees, and in the manner approved by the Ministry of Finance of Russia.
In the event of liquidation or reorganization of an organization, opening or closing a branch or separate division, the taxpayer is obliged to notify the tax authority that carries out the deregistration within 14 days.
Taxpayer identification number(TIN). Each taxpayer is assigned a single identification number, which must be indicated in all documents submitted to the tax authority, including declarations, reports and applications. Information about the taxpayer from the moment of tax registration is a tax secret. The legislation also provides for a tax registration reason code (KPP), which is assigned depending on the type of activity carried out by the organization.
When registering for tax purposes, the taxpayer receives a corresponding certificate, which indicates:
name of the organization (individual entrepreneur);
legal address;
state registration data;
other necessary data.
The Tax Code of the Russian Federation for the first time regulates in a systematic form the general provisions of tax accounting. Tax accounting is the basis on which relations between taxpayers and tax authorities begin to be built, since without tax registration, i.e. Without providing the tax authorities with the relevant information, the tax authorities do not have a real opportunity to carry out tax control measures in relation to such a taxpayer and, as a result, bring such a taxpayer to justice. Thus, tax accounting is the most important activity of the tax authorities. As a result of its implementation, tax authorities receive the information necessary to conduct tax audits: legal address, address of the actual location (place of residence) of the taxpayer, information about the managers and legal form of the taxpayer organization, etc.
Tax accounting is a set of measures established by tax legislation, carried out by tax authorities for the purpose of registering all taxpayers (or tax agents) with tax authorities and accumulating information about taxpayers in a unified state register of taxpayers.
Tax accounting is carried out only in relation to taxpayers (organizations and individuals) or tax agents. Payers of fees (organizations or individuals) are not subject to tax registration, since the Tax Code does not contain rules for recording fee payers, and, according to clause 3 of Art. 1 of the Tax Code of the Russian Federation, the Tax Code in terms of tax accounting does not apply to fee payers.
Branches and separate divisions of organizations are not independent taxpayers or tax agents, and therefore they are also not subject to tax registration. At the location of branches and separate subdivisions, organizations that include these branches and separate subdivisions are required to register as taxpayers for tax purposes.
General characteristics of tax accounting are:
1) tax accounting is carried out for the purpose of tax control (Article 83 of the Tax Code of the Russian Federation);
2) tax accounting is carried out by tax authorities;
3) tax accounting is carried out regardless of the presence of circumstances that give rise to the obligation to pay a particular tax, i.e. tax accounting is generally binding for all taxpayers;
4) tax accounting of the same taxpayer can be carried out on several grounds;
5) The Tax Code of the Russian Federation establishes the main elements of tax accounting (grounds, terms, place and procedure for registration, etc.);
6) tax accounting is the basis for maintaining a unified state register of taxpayers and document flow for the payment of taxes and fees (all documents for the payment of taxes and fees must have a taxpayer identification number - TIN);
7) for violation of the tax accounting procedure, liability is established under tax legislation.
Tax accounting can be divided into types depending on the objects of tax accounting:
Tax accounting of organizations;
Tax accounting for individuals.
Tax accounting can also be divided into types depending on the grounds for registration. In accordance with the Tax Code, taxpayers are subject to registration with the tax authorities at the location of the organization (for individuals - at the place of residence, for entrepreneurs without forming a legal entity - at the location or place of residence), at the location of separate divisions, at the location of real estate and vehicles subject to taxation.
The main procedures associated with accounting for payers include the following:
1. Receiving from the payer a package of documents necessary for registration, checking them, including information about the taxpayer in the database and assigning him an identification number (TIN).
2. Receiving information from the payer about changes to the initially provided package of documents and including information about changes to the taxpayer’s documents in the database.
3. Receiving and including in the database information about taxpayers from other sources (not from the taxpayer).
4. Issuing to the payer a Certificate of Registration with the tax authority, as well as various certificates necessary for him to carry out business activities.
5. Responses to requests received from tax, law enforcement, judicial and other authorities regarding information contained in the constituent documents of taxpayers and their bank accounts.
6. Presentation of the USRN database to the regional level.
7. Drawing up reports on the work of accounting for payers and participation in the preparation of reports on the work of the inspectorate.
8. Reconciliation of information contained in the database.
9. Other work not included in the list, but related to accounting for payers
Tax return: concept, procedure for filling out, submitting, and making changes and additions to it. Tax secret.
Tax return- an official statement of the taxpayer about the income he received for a certain period and the tax discounts and benefits that apply to them, submitted to the tax authorities in a special form. Based on the tax return and current tax rates, the tax authority exercises control over the amount of tax payable.
General provisions on liability for tax offenses.
Tax violation an unlawful act (action or inaction) of a taxpayer, for which the Tax Code of the Russian Federation establishes liability, is recognized. Ignorance of the laws does not exempt you from responsibility.
Repeated bringing to tax liability for committing the same tax offense is prohibited. Holding a taxpayer liable does not relieve him of the obligation to pay tax. The Tax Code of the Russian Federation provides for circumstances that exclude a person’s guilt in committing a tax offense, mitigating and aggravating liability for it.
Circumstances excluding prosecution and excluding a person’s guilt in committing a tax offense
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Circumstances precluding holding a person liable for committing a tax offense |
Circumstances excluding a person’s guilt in committing a tax offense |
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No tax violation event |
Committing a tax offense due to the occurrence of force majeure circumstances |
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Absence of a person’s guilt in committing a tax offense |
Committing a tax offense due to the execution of written explanations of the tax authority |
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Commitment of an act with signs of a tax offense by an individual under 16 years of age |
Committing a tax offense due to illness or in a state of passion |
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Expiration of the statute of limitations for prosecution |
Other circumstances that may be recognized by a court or tax authority as excluding a person’s guilt in committing a tax offense |
Circumstances mitigating tax liability include violations committed during difficult personal or family circumstances, under threat, or those that may be recognized by a court or tax authority as mitigating.
Circumstances aggravating tax liability include violations committed by a person who was previously held accountable for similar acts.
Circumstances mitigating or aggravating liability for committing a tax offense are established by a court or tax authority.
If there are mitigating circumstances, tax penalties are reduced by at least two times; if there are aggravating circumstances, they are doubled.
The statute of limitations for bringing to tax liability is three years, except for bringing to responsibility for non-payment or incomplete payment of tax or for gross violation of the rules for accounting for income and expenses of taxable objects.
For committing a tax offense, a measure of liability is provided - tax sanctions, established in the following amounts.
The concept of state (municipal) credit. The relationship between the terms “state (municipal) loan” and “state (municipal) borrowing”.
State and municipal credit is a relationship in which the Russian Federation, a constituent entity of the Russian Federation or a municipal entity are lenders or borrowers. State and municipal loans can be received and provided by the Russian Federation, constituent entities of the Russian Federation and municipalities to legal entities and individuals, other budgets, foreign states, their legal entities and international organizations within the powers of the corresponding budget level. The state, represented by the authorized executive body, enters into a loan agreement, in accordance with which it has corresponding obligations or requirements. The terms of the loan agreement are:
Duration of granting or receiving the loan;
Duties of the parties;
Conditions for ensuring loan repayment;
The interest rate for using the loan;
Other conditions.
Functions and purposes of state and municipal credit.
1. The most important function of state and municipal credit is the redistribution of monetary resources in accordance with the needs of the economy as a whole and the feasibility of supporting one or another area of socio-economic activity. Currently, there is no special centralized public lending fund. Its source is the corresponding budget, upon approval of the expenditure part of which the necessary funds for lending are provided.
Redistribution is carried out between:
Federal budget and regional budgets;
Regional budget and budgets of municipalities;
International financial and credit institutions and the federal budget;
Foreign legal entities and individuals and federal and regional budgets;
Federal, regional and local budgets and resident legal entities, etc.
2. State and municipal credit also performs a regulatory function. Given limited budgetary resources, their allocation free of charge is not always justified. In addition, the efficiency of using allocated funds on a repayable and paid basis is higher than on a non-refundable and free basis. At the same time, lending creates a multiplier effect. The state has an additional opportunity to stimulate the development of individual industries and enterprises by allocating targeted budget loans to them.
The regulatory function is also manifested when Russia receives external loans from the IMF to finance the budget deficit, carry out structural reforms and economic restructuring, support privatization, the stock market, etc.
With the help of the regulatory function, the state influences borrowers, who are obliged to ensure the effective use of budget loans.
3. One of the functions of state and municipal credit is accounting and control over the targeted and rational use of credit allocated by the state. This function is carried out by relevant institutions at the federal, regional and municipal levels. The need for control arises both from the very nature of credit and from the functions of the state. The forms of control are:
Control over the movement of cash flows carried out through the federal treasury authorities or authorized banks;
Monitoring compliance with the terms of the loan agreement;
Control over the intended use of allocated funds by the borrower;
Monitoring the implementation of accepted additional obligations by constituent entities of the Russian Federation and local governments, etc.
The main goals of state and municipal lending include:
Solving problems of financing the budget deficit;
Carrying out a regional financial and credit policy aimed at equalizing the socio-economic living conditions of the population and the functioning of regional economies;
Supporting municipalities in solving urgent socio-economic problems;
Supporting priority sectors and activities for the economy.
Debt obligations and assets.
For government loans provided, borrowers have debt obligations to the Russian Federation, a constituent entity of the Russian Federation and a municipal entity as creditors. Government loans form state internal and external assets of the Russian Federation.
Debt obligations to the Russian Federation, a constituent entity of the Russian Federation, and municipalities as creditors constitute the internal and external debt of borrowers. The size and structure of debt by type of debt obligation and by borrower is considered together with the budget law for the next financial year.
When a financial crisis occurs and there is no real possibility of timely repayment of the debt, the need arises for its restructuring. Restructuring the debt of foreign states to the Russian Federation, a constituent entity of the Russian Federation means the provision by the Russian Federation, a constituent entity of the Russian Federation of a new loan to a foreign state, subject to the repayment of the principal debt on a previously provided loan with a change in the terms of servicing the loan and the terms of its repayment.
The Budget Law approves:
Amounts of repayment and interest payments on debts of foreign countries;
The amount of foreign debt at the end of the financial year;
The maximum volume of government loans provided by the Russian Federation, a constituent entity of the Russian Federation to foreign states, their legal entities and international organizations, with the exception of government loans provided to CIS member states;
The maximum volume of government loans provided by the Russian Federation, a constituent entity of the Russian Federation to the CIS member states;
A program for the provision of state loans by the Russian Federation and a constituent entity of the Russian Federation to foreign states, their legal entities and international organizations.
State loans to the CIS member states under intergovernmental agreements are provided, as a rule, subject to their fulfillment of obligations to pay interest payments and amounts to repay the principal debt on previously provided loans.
The Government of the Russian Federation provides loans to foreign states, their legal entities and international organizations in excess of the maximum volume of government loans, if new loans are allocated in order to restructure the debt of foreign borrowers to the Russian Federation and the conditions for servicing the debt of foreign borrowers to the Russian Federation do not worsen for the Russian Federation.
The provision of government loans by the Russian Federation to foreign states, their legal entities and international organizations is carried out within the framework of appropriate long-term programs that take into account the geopolitical interests of the Russian Federation.
The program for the Russian Federation to provide state loans to foreign states, their legal entities and international organizations at the expense of the federal budget includes a list of loans for the next financial year, indicating the purpose of their provision, the names of recipients, the total volume, as well as loans provided in a given financial year.
Agreements on the provision of state loans by the Russian Federation, the implementation of which entails an increase in the maximum volumes of provision of state loans by the Russian Federation, approved by the federal law on the federal budget, are concluded only after appropriate amendments are made to the federal law on the federal budget.
Agreements on the provision of state loans by the Russian Federation are approved by the Federal Assembly of the Russian Federation in the form of a federal law in the following cases:
1) if the government loans provided for by these agreements are not included in the program for the provision of government loans by the Russian Federation and the financial resources provided under them exceed an amount equivalent to 10 million US dollars for the entire loan term;
2) if the execution of such agreements requires an increase in the maximum volume of government loans approved by the federal law on the federal budget;
3) others provided for by law.
Agreements on debt restructuring or write-off of debt of foreign states to the Russian Federation are ratified by the State Duma, except for cases of debt restructuring and write-off within the framework of the Russian Federation’s participation in international financial organizations and financial clubs on conditions common and uniform for all participants in these organizations and clubs.
It is possible to assign rights of claims under debt obligations of foreign states to the Russian Federation. It is carried out in accordance with a special federal law or with the provision on the corresponding assignment of rights of claims contained in the federal law on the federal budget for the next financial year.
In accordance with the economic classification of budget expenditures, which includes three levels of articles (section, subsection, paragraph), the structure of budget funds can be represented by the following diagram (15.2).
State (municipal) debt: concept, types.
Types of debt obligations of the Russian Federation, a constituent entity of the Russian Federation, a municipal entity. State loan
- regulated by the norms of financial law, the activities of the state to attract temporarily available funds of legal entities and individuals on the terms of compensation, repayment and urgency. The meaning of public debt
- generation of funds to cover the budget deficit.
Forms of government credit:
1) government loans;
2) government debt obligations;
3) savings business.
Subjects of state credit:
1) the Russian Federation, its subjects - the borrower;
2) municipalities, individuals and legal entities - lender. The result of government credit is
state debt. Russian government debt
- debt obligations of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law, including obligations under state guarantees provided by the Russian Federation.
The public debt of the Russian Federation is fully and unconditionally secured by all federally owned property that makes up the state treasury.
Federal government bodies use all powers to generate federal budget revenues to repay the debt obligations of the Russian Federation and service the public debt of the Russian Federation
The volume of the state internal debt of the Russian Federation includes:
1) the principal nominal amount of debt on government securities of the Russian Federation;
3) the volume of principal debt on budget loans and budget credits received by the Russian Federation from budgets of other levels;
4) the volume of obligations under state guarantees provided by the Russian Federation.
Public debt management methods:
1) refinancing (novation) - replacing old loan obligations with new ones by issuing them;
2) conversion - a change in credit relations by changing (increasing or decreasing) the interest rate on the loan;
3) consolidation - extension of the terms of existing loans;
4) unification of loans - combining several loans into one;
5) deferment of loan repayments;
6) cancellation of public debt - termination of the state’s credit obligations through its renunciation of the debt. So, for example, the Government of the Russian Federation has the right to write off the state internal debt of the Russian Federation on government loans carried out by issuing securities on behalf of the Russian Federation in the currency of the Russian Federation, for which the statute of limitations has expired.
The maximum amount of domestic debt is established in the Federal Law on the Budget for the corresponding year and as of January 1, 2005 amounted to 988.1 billion rubles.
The Government of the Russian Federation has the right to determine volumes of issue, forms and methods of issuing government securities that are debt obligations of Russia, and carry out their issue in a volume that does not lead to exceeding the established upper limit of the state internal debt of the Russian Federation, unless otherwise provided by federal laws.
Debt obligations of the Russian Federation are repaid within periods that are determined by the specific terms of the loan and cannot exceed 30 years.
Changing the terms of a government loan issued for circulation, including the terms of payment and the amount of interest payments, the circulation period, is not allowed.
Government debt obligations of the Russian Federation can exist in the following forms:
1) loan agreements and contracts concluded on behalf of Russia as a borrower with credit organizations, foreign states and international financial organizations. The procedure for concluding and validating international treaties is determined by the Federal Law of July 15, 1995 No. 101 “On international treaties of the Russian Federation”;
2) government loans carried out by issuing securities (federal loan bonds, government short-term obligations, etc.) on behalf of the Russian Federation.
Government loan (borrowing) in the Budget Code of the Russian Federation - the transfer into the ownership of the Russian Federation or its subject of funds, which the Russian Federation or its subject undertakes to return in the same amount with the payment of interest (fees) on the loan amount.
Procedure for issuing securities enshrined in the Federal Law of July 29, 1998 No. 136 “On the peculiarities of the issue and circulation of state and municipal securities”;
3) contracts and agreements on the receipt of budget loans by the Russian Federation (a loan for a period of up to 6 months on repayment terms, can be either reimbursable or gratuitous) and budget loans on repayment terms and compulsory compensation from budgets of other levels of the budget system of the Russian Federation;
4) agreements on the provision of state guarantees to the Russian Federation;
5) agreements and treaties, including international ones, concluded on behalf of the Russian Federation, on the prolongation and restructuring of debt obligations of the Russian Federation of previous years.
Management of state (municipal) debt: bodies and methods of management.
There are many methods to solve the problem of public debt. Based on the urgency and nature of the tasks being solved, budget-export and financial-technical methods are distinguished. According to the conditions and mechanism of implementation, market and non-market methods can also be distinguished.
Budget-export methods- long-term and link the solution to a problem, for example, external debt, with an increase in the country’s trade balance, as well as an increase in GDP and the state budget.
Financial and technical methods - short-term and allow you to solve the problem by improving borrowing conditions, reducing the total amount of debt, and changing the temporary structure of payments.
The following main financial and technical methods of managing public debt are distinguished: consolidation, conversion, unification, refinancing, restructuring, deferment of repayment, cancellation of loans, etc.
Non-market methods of managing public debt include conversion, consolidation and unification. These methods involve changing the terms of outstanding loans unilaterally, often without the consent of the security holders. Such measures violate the rights of investors and, in this regard, their use is possible only in a planned economy and is unacceptable in market conditions.
Thus, during the Soviet period, increasing the maturity and reducing the cost of public debt was achieved through conversion and consolidation. In a centrally planned economy, these measures were carried out compulsorily. Conversion usually refers to a change in the yield of loans. In order to reduce the cost of managing public debt, the state most often reduces the amount of interest paid on loans. However, an increase in the yield of government securities for creditors is also possible. Such an operation was carried out, for example, in 1990, when the yield on 3% winning bonds was increased to 9%, and Treasury bonds - from 5 to 10%.
Consolidation refers to a change in the terms of loans associated with the timing of their circulation. Thus, in 1990, the service life of treasury bonds was reduced from 16 to 8 years.
Debt conversion and consolidation could be combined with unification loans, which meant the combination of several previously issued loans into one new loan. In this case, bonds of unified loans were exchanged for newly issued bonds, and the yield and repayment terms of the new loan changed in the direction desired by the state.
In modern conditions, the difficulties of many countries in repaying external debt have given rise to new methods of covering obligations to creditor countries. These methods of managing public external debt are usually combined into the concept conversion of external debt. In this case, conversion means the implementation of all mechanisms that ensure the replacement of external debt with other types of obligations that are less burdensome for the economy and finances of the debtor country. Among them: repayment of debt with commodity supplies, exchange of debt obligations for shares and bonds of companies of the debtor country, payment of debt in local currency with its subsequent conversion into investments or property, exchange for debt obligations of third countries, etc.
Russia is now actively using foreign debt repayment method commodity supplies. Thus, the debt of Slovakia ($1.8 billion), Hungary ($480 million), the Republic of Korea ($170 million), Bulgaria ($100 million) and Poland ($20 million) was repaid 130J-
Through the mechanism of the Paris Club, Russia agreed to write-off so-called bad debts of the poorest countries amounting to about 800 million rubles. Most of these loans were issued during the Soviet era, and the money was not returned. By writing off part of the debt, Russia is able to document the existence of the debt and formalize the procedure for its repayment and servicing through intergovernmental agreements. Thus, Russia, firstly, helped the poorest countries, and secondly, those who did not pay before are now starting to do so.
Currently, according to Article 98 BK of the Russian Federation, changing the conditions of government loans issued for circulation - payment terms and the amount of interest payments, circulation terms - is not allowed.
In a market economy it is carried out restructuring debt based on the use of financial market mechanisms. The short-term nature of Russian debts and the high cost of borrowing in recent years have forced the state to constantly worry about lengthening the terms and reducing the profitability of new borrowings. This is achieved, in particular, on the basis of debt restructuring, under which, according to 105 of the Budget Code of the Russian Federation, is understood as the repayment of debt obligations by simultaneous borrowing in the amount of repaid debt obligations with the establishment of other conditions for servicing the debt and the timing of its repayment. The main restructuring schemes include: debt write-off, that is, cancellation of previous loans; debt redemption; debt securitization.
In the field of external borrowings, debt restructuring is also carried out on a contractual basis. Then restructuring means changing the schedule for repaying the principal debt and paying interest on it. Restructuring of external and internal debt can be carried out with a partial write-off (reduction) of the principal amount.
Currently, when developing options for optimizing Russia's external debt, attention is focused mainly on technical means of solving the problem: debt restructuring, conversion of part of debt obligations into property assets in Russia. Less traditional methods are also proposed - payment of compensation, repayment of debt in national currency, re-registration of accounts payable for settlement of accounts receivable.
Having assumed the external debt of the former USSR and not being able to fulfill its obligations under it, Russia almost immediately entered into negotiations on the terms of servicing and repaying the external debt. Lengthy negotiations with the Paris Club of creditors, accompanied by partial and temporary deferrals of payments, ended in April 1996 with the signing of a general agreement on the restructuring of Russian debt in the amount of $38 billion. Of this amount, 45% of the debt must be paid within 25 years, and 55% of the debt , which includes short-term debts, will be repaid within 21 years. Payment of the capital amount of the restructured debt began in 2002. On the basis of a general agreement, bilateral intergovernmental agreements are concluded with each creditor country, which fix specific amounts and terms of debt repayment.
In October 1997, a similar agreement was concluded with the London Club of Creditors. The restructuring covers $32 billion, repayment must be made over 25 years with a seven-year grace period |41|.
The consequences of the 1998 financial crisis pushed Russia to begin new negotiations with foreign creditors on the restructuring and partial write-off of the external debt of the former USSR. In February 2000, Russia and the London Club reached an agreement to reduce the debt from $32.6 billion to $21.3 billion (the write-off of Soviet debt amounted to 36.5%) and reissue the remaining debt into Eurobonds maturing within 30 years and interest rates from 2.25 to 7.5% per annum.
The main method of obtaining funds to repay loans stands for refinancing debt, which refers to the repayment of accumulated debt by issuing new loans. In this case, when constructing a schedule for issuing new loans, they proceed from the need to link the terms of their placement with the redemption dates of bonds of previous issues. For example, Russia used refinancing when paying off debt under the government's 3% domestic winning loan of 1966. Upon expiration of this loan, the bonds were exchanged within one year for bonds of a new loan - the domestic winning loan of 1982 - without paying exchange rate differences.
The minimum price of borrowed funds on the market is determined by the refinancing rate. The refinancing rate is the interest rate at which borrowing occurs to service domestic debt.
Thus, government credit regulates the interbank loan market. If it is impossible to refinance the debt, current budget revenues are used to service and repay it.
In addition to the above methods of managing public debt, it is possible deferment of loan repayments and cancellation of public debt. The deferment of repayment of previously issued loans is carried out in conditions where the further development of operations to issue new loans is not financially effective for the state. Deferment not only delays the repayment of loans, but also stops paying income.
Cancellation of public debt refers to a measure as a result of which the state completely renounces its obligations on issued loans. Cancellation of state securities can be carried out for two reasons: in case of financial insolvency of the state, i.e. his bankruptcy; due to the coming to power of new political forces, which for certain reasons refuse to recognize the financial obligations of the previous authorities.
Countries with a market economy under normal conditions do not use these techniques for managing public debt, since their use leads to irreparable damage to the state’s reputation as a borrower among potential investors and creditors. In the history of public debt, their implementation was observed only in conditions of war, post-war devastation or severe budgetary and financial crises.
In 1998-2000 public debt operated under the sign of innovation in government securities. Novation - This is the replacement, by agreement of the parties, of the original debt obligations with new ones, establishing other conditions for servicing the debt and the timing of its repayment.
The innovation was a consequence of the debt crisis, which, in turn, was caused by the crisis of the Russian economy and finances. This measure was announced by Decree of the Government of the Russian Federation of August 17, 1998 No. 980 “On the organization of work on the redemption of certain types of government securities.” The total amount of the “frozen” debt amounted to 265.3 billion rubles, and its restructuring was envisaged.
Great value for increasing the efficiency of government debt activities will have the creation of a unified system for managing the public debt of the Russian Federation. Organic interaction of internal and external debts, ensuring their unhindered mutual substitution based on a unified debt policy, unity of planning and accounting of all operations to attract, service and repay external and internal government borrowings will allow: to optimize the terms of circulation, repayment and profitability of government securities; minimize the adverse impact of fluctuations in foreign currency exchange rates and interest rates in international financial markets on the amount and cost of government borrowing; optimize budget expenditures for servicing public debt; timely and fully fulfill obligations to internal and external creditors.
Legal basis of insurance: concept, types. State regulation and supervision of insurance activities.
Insurance- a special type of economic relations designed to provide insurance protection for people (or organizations) and their interests from various types of dangers.
Insurance (insurance business) in a broad sense - includes various types of insurance activities (insurance itself, or primary insurance, reinsurance, co-insurance), which together provide insurance protection.
Insurance in the narrow sense is a relationship (between the policyholder and the insurer) to protect the property interests of individuals and legal entities (policyholders) upon the occurrence of certain events (insured events) at the expense of monetary funds (insurance funds), formed from the insurance premiums they pay (insurance premium ).
The relationship between the insurer and the policyholder, which determines exactly how the insurance fund will be formed and how it will be spent, represents the method of creating insurance products. In the process of historical development, three methods of creating insurance products were developed - self-insurance, mutual insurance, commercial insurance.
Reporting and control. The general system of the budget process is presented in Fig. 3.1.
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.
Budget process sequentially includes the following stages of budgetary activity:
- formation of a draft budget;
- budget review;
- budget execution;
- preparation, external verification, review and approval of budget reporting.
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 main objectives of the budget process include: accumulation of state and municipal revenues; financing the functions of the state and municipalities; identification of material and financial reserves of the state; calculation of budget revenues and expenses as close as possible to reality; ensuring maximum balance of budgets; coordination of budgets with the implemented economic program, as well as implementation of budget regulation in order to redistribute sources of income between budgets of different levels, sectors of the economy, economic regions, etc.
Over time, the budget process develops from top to bottom, from the federal budget to the local ones. 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) was about three years: formation, consideration and approval - 10 months, execution - one year, preparation and approval of the budget execution report - up to one year . This period in the scientific literature is called the budget cycle. In connection with the transition to three-year budget planning, the total duration of the budget process increases by two years to 4.5-5 years. The duration of the budget period of territorial budgets is usually shorter.
The budget process proceeds strictly sequentially over time. This is due to the fact that at each stage it is possible to resolve only those issues that are not necessary to raise in the future, therefore it is not possible to change the specified order of the budget process.
The budget process is built on certain principles, which allows the most efficient use of state funds. In addition to the general principles of constructing the budget system of the Russian Federation, one can name such principles of the budget process as budget periodicity, budget continuity and specialization of budget indicators.
The periodicity of the budget means that the budget must contain a mandatory annual part, adopted for a period of one year - from January 1 to December 31, and a planned part - for two years.
Budget continuity lies in the organic connection and dependence of budget periods, the imposition of one period on another. Thus, the budget for the next financial year is an integral part of a multi-year (usually three-year) financial document that is annually updated and shifted one year forward, which, on the one hand, ensures predictability of the distribution of budgetary allocations and, on the other hand, allows for the inclusion of according to a clear and transparent procedure, annual adjustments in accordance with the goals of public policy and the conditions for their achievement. For this purpose, since 2008, draft federal budgets and budgets of state extra-budgetary funds of the Russian Federation have been drawn up and approved for a period of three years - the next financial year and planning period.
Specialization of budget indicators means that the budgets of the budget system of the Russian Federation are compiled according to a single budget classification: with the obligatory grouping of income and expenses according to general characteristics, assigning exact names and serial numbers to individual sections of the budget.
Despite the measures taken in recent years to improve the budget process, the main drawback remained - the lack of a mechanism for ensuring the effectiveness of the use of budget funds, which was expressed in the following:
- the development of a medium-term financial plan for each budget cycle separately, the annual planning period for budget expenditures, the uncertainty of the volume and structure of allocations allocated by the main managers to the managers and recipients of budget funds, i.e. budget administrators;
- provision of budget funds based on adjustment (indexation) of allocations from previous years in conditions of low formalization of mechanisms for the redistribution of budget resources and the absence of clear criteria and procedures for selecting financed areas and activities in accordance with public policy priorities;
- the absence of clear formulations of goals and final results of the use of budget funds, as well as criteria for assessing the activities of budget administrators;
- limited powers and, consequently, responsibility of budget administrators in the formation and execution of the budget;
- the predominance of external control over the compliance of cash expenses with regular indicators in the absence of procedures and methodology for internal and external control (monitoring) of the validity of planning and the results of the use of budget funds;
- the absence of a system for assessing the financial results of the activities of government bodies at different levels and assigning assets and liabilities, respectively, of the Russian Federation, a subject of the Russian Federation or a municipal entity to certain government bodies and local government bodies;
- the lengthy and cumbersome procedure for considering a draft budget by representative authorities, focused on technical details to the detriment of assessing budget policy priorities and their implementation;
- unclear delimitation of powers in the budget process between representative and executive authorities.
All this limited the opportunities and incentives for increasing the efficiency of public financial management and reorienting the activities of budget administrators from using the allocations allocated to them to achieving final significant and measurable results.
To change the current situation, the Ministry of Finance of the Russian Federation prepared, and the Government of the Russian Federation, by Resolution No. 249 of May 22, 2004, approved the “Concept for reforming the budget process in the Russian Federation in 2004-2006.”
1. The main task of reforming the budget process is to create conditions and prerequisites for the most effective management of public finances in accordance with the priorities of state policy.
One of the objectives of this reform is to shift the emphasis of the budget process from “managing budget resources (costs)” to “managing results” by increasing the responsibility and expanding the independence of participants in the budget process and administrators of budget funds within the framework of clear medium-term guidelines.
2. In connection with the transition to “results management”, the budget should be formed based on the goals and planned results of government policy. Budget allocations must have a clear link to functions (services, types of activities); when planning them, the main attention must be paid to justifying the final results within the framework of budget programs. The independence and responsibility of budget administrators is expanding. At the same time, long-term rolling appropriation limits are established with their annual adjustment within the framework of the medium-term financial plan, the total amount of appropriations for the implementation of certain functions and programs is formed, the details of the areas of use of which are carried out by administrators of budget funds, and incentives are created to optimize the use of resources.
Priority is given to internal control, responsibility for decision-making is delegated to lower levels. Monitoring and subsequent external audit of finances and performance results are carried out, and the performance of budget administrators is assessed based on the results achieved.
3. The basis for the new organization of the budget process should be the model of “results-based budgeting within the framework of medium-term financial planning.” Its essence is the distribution of budget resources between administrators of budget funds and (or) budget programs implemented by them, taking into account or in direct dependence on the achievement of specific results (provision of services) in accordance with the medium-term priorities of socio-economic policy and within the limits of budget volumes projected for the long term. resources.
This model also involves the creation of a system for monitoring the effectiveness of budget expenditures, the transition to multi-year budget planning with the establishment of clear rules for changing the volume and structure of allocations and increasing the predictability of the volume of resources managed by budget administrators.
The practical implementation of the new model and the solution to the problems of reforming the budget process were embodied in the Federal Law of April 26, 2007 No. 63 “On Amendments and Additions to the Budget Code of the Russian Federation.”
The reform of the budget process was carried out in the following areas:
- reforming budget classification and budget accounting;
- allocation of budgets for existing and assumed obligations;
- improving medium-term financial planning;
- improving and expanding the scope of application of program-targeted methods of budget planning;
- streamlining procedures for budget preparation and review;
- improvement of the accounting system, budget reporting and control.
The first direction provides for the approximation of the budget classification of the Russian Federation to the requirements of international standards, taking into account changes in the structure and functions of federal executive authorities as part of the administrative reform, as well as the introduction of a budget accounting chart of accounts integrated with the budget classification, based on the accrual method and ensuring accounting of costs for functions and programs.
The second and third directions should ensure increased reliability of medium-term forecasting of the volume of resources available to budget administrators within the framework of accepted budget constraints and public policy priorities.
The fourth direction involves the formation and inclusion in the budget process of a procedure for assessing the effectiveness of budget expenditures, a phased transition from budget planning and financing of expenses to budget planning focused on achieving final socially significant and measurable results.
The fifth direction involves improving the procedures for drawing up and reviewing the budget in accordance with the requirements and conditions of medium-term budget planning, results-based.
The sixth direction makes it possible to create a comprehensive system of budget reporting, its verification and control.
In accordance with the budget reform, the following new concepts are introduced into the practice of the budget process.
Expenditure obligations are the obligations of the Russian Federation, a constituent entity of the Russian Federation, or a municipal entity, stipulated by law, other regulatory legal acts, treaties or agreements, to provide funds from the corresponding budget to individuals or legal entities, government bodies, and local governments.
The register of expenditure obligations is a set of specified laws, regulations and contracts, agreements and (or) their individual provisions, which must be maintained by executive authorities at each level.
When forming a budget, expenditure obligations are divided into existing and accepted, which allows:
- significantly simplify and speed up the procedure for drawing up and reviewing the budget in terms of the fulfillment of existing obligations, focusing the process of preparing and reviewing the budget mainly on the obligations assumed, reflecting the goals and priorities of state policy;
- support tighter budgetary constraints, since new commitments can be made available only after existing commitments have been allocated or reduced or eliminated in advance;
- lengthen the period and increase the reliability of medium-term budget planning by establishing rules for forecasting the volume of existing obligations (including their distribution among budget administrators);
- introduce elements of competition into the budget process when distributing budget resources among budget administrators in order to direct them to the implementation of the most effective budget programs.
The budget of current obligations is the volume of appropriations necessary to fulfill in the planned period the expenditure obligations of the Russian Federation (subject of the Russian Federation, municipal entity), stipulated by the current regulatory legal acts. Current obligations include, in particular:
- transfers to the population established by regulatory legal acts of the Russian Federation (subjects of the Russian Federation, municipalities);
- obligations to provide (pay for) state (municipal) services in accordance with the legislation of the Russian Federation;
- obligations arising from long-term budget target programs of the Russian Federation (subject of the Russian Federation, municipal entity), as well as the targeted investment program of the Russian Federation (subject of the Russian Federation, municipal entity);
- repayment and (or) servicing of state (municipal) debt in accordance with the terms of raising borrowed funds;
- obligations arising from treaties (agreements), including international ones, in force during the planned period;
- funds subject to transfer in accordance with Russian legislation or established principles (practice) of budget planning to other budgets of the budget system of the Russian Federation.
Budget of assumed obligations - the volume of appropriations necessary to fulfill in the planning period the expenditure obligations of the Russian Federation (subject of the Russian Federation, municipal entity), stipulated by the regulatory legal acts, treaties and agreements entered into force or planned (proposed) for introduction in the planning period. The obligations assumed include, in particular:
- increasing existing or introducing new types of transfers to the population;
- increase in wages and allowances;
- early repayment of state (municipal) debt;
- provision (payment) of state (municipal) services in excess of established standards (requirements of the legislation of the Russian Federation);
- an increase in comparison with previously envisaged plans for allocations for the implementation of existing or new budget programs;
- new budget investments;
- provision of budget loans.
The specific composition of the budgets for existing and assumed obligations, the procedure and methodology for determining their volumes are established by executive authorities at the appropriate level.
The main principle of budget planning is the guaranteed provision in full of existing obligations in accordance with the goals and expected results of government policy. Allocation of allocations for new obligations can and should be made only in the case and within the limits of the excess of projected budgetary resources over the estimated volume of existing obligations, which can be formed due to:
- reducing part of the existing obligations (by amending legislation, canceling previously made decisions, revising existing programs in relation to unaccepted obligations, restructuring the budget sector, etc.);
- application of conservative (for example, below the inflation rate) methods for adjusting existing liabilities depending on the conditions of the planning period;
- growth of budget revenues that is faster than the projected volume of existing obligations (for regional and local budgets, primarily tax and non-tax revenues).
Based on this, the volume of the budget of current obligations cannot exceed the planned volume of income and the balance of sources to cover the deficit of the corresponding budget under a conservative scenario of the socio-economic forecast for the corresponding year, the conditions (external parameters) of the formation of which must be determined by the regulatory legal acts of the relevant authorities. If this condition is not met, existing obligations are subject to reduction.
Accordingly, the volume of the budget of accepted obligations is determined by the difference between budget revenues and the balance of sources of financing the deficit under a conservative scenario of the socio-economic forecast, on the one hand, and the volume of the budget of existing obligations, on the other. The formation of specific areas for the use of budget funds and assumed obligations is carried out in accordance with the priorities of budget policy based on an assessment of their effectiveness. In this case, the following activities are separately considered and planned.
1. Activities that require allocations only in the next financial year, including:
- leading to a reduction in existing obligations in subsequent years (early repayment of state or municipal debt, reorganization, transfer of budgetary institutions to the appropriate level of the budget system, reduction of staff, etc.);
- not included in the existing obligations of subsequent years (implementation of short-term programs and projects that do not extend beyond the financial year, payments of one-time/one-time bonuses to wages, benefits, etc.).
2. Activities included from the next financial year in the composition of existing obligations or leading to an increase in the volume of existing obligations in subsequent years (increasing the size of transfers to the population, wages of state or municipal employees, employees of budgetary institutions, the creation of new budgetary institutions, the adoption of new budget programs, regulatory legal acts establishing new spending obligations, etc.).
The proportions of distribution of funds between these activities are determined within the budget process based on the strategic priorities of state policy and ensuring budget balance in the medium term.
One of the key elements of the reform of the budget process is the distribution of the bulk of the budget funds of accepted obligations only between existing and (or) newly adopted budget programs, taking into account assessments of their effectiveness (including programs that ensure the implementation of newly adopted regulatory legal acts). This approach will create incentives for budget planning subjects to present their expenses in the form of budget target programs and will lead to the gradual formation of a system for monitoring the effectiveness of their activities, which will contribute to an overall increase in the effectiveness of budget expenditures.
In the near future, the division of the budget of existing and assumed obligations is difficult to implement, since there is no transparent methodology for determining and adjusting (recalculating) the volume of existing obligations, although, according to general estimates, it significantly exceeds the projected resources of budgets at all levels, requiring the adoption of annual measures to optimize and restructure financed expenses. At the same time, at the analytical level, this division is already partially implemented and requires only a clearer reflection in the justification of the medium-term financial plan and budget.
With the help of legal norms, the state carefully regulates the relations that arise from the formation of all types of budgets to reporting on their execution, establishes the order and sequence of actions of participants in budgetary legal relations. It is the procedural norms of budget law that establish the procedure for the state to receive revenues, distribute them among various budgets and use them to carry out the tasks and functions of the state and local government.
Traditionally, the budget process is defined as a set of actions of authorized bodies of state and local self-government for the preparation, consideration, approval and execution of budgets, as well as the preparation, consideration and approval of a report on their implementation, carried out on the basis of budget law. Taking this into account, in a broad sense, the budget process is a power-based activity of the relevant authorities, subject to strict budget procedures. In Art. 2 of the Budget Code of Ukraine provides a slightly different definition budget process - this is the process of drawing up, reviewing, approving, implementing budgets, reporting on their implementation, as well as monitoring compliance with budget legislation, regulated by budget legislation.
Such activities are cyclical and periodic in nature. Budget cycle in contrast to the budget period, which is equal to a calendar year, it contains the period of time from the beginning of the formation of the budget for the year that is planned until the approval of the report on its implementation. So, the budget cycle includes:
1) period of budget formation;
2) budget execution period;
3) preferential budget terms (the duration of last year’s allocations for capital investments);
4) reporting period.
Now in Ukraine the budget cycle is about 2.5 years.
The budget process consists of relevant stages are determined by the content and nature of the activities of government bodies, as a result of which such activities acquire new qualities.
Traditionally, there are five stages in the budget process:
1) development and preparation of a draft budget;
2) consideration of the draft budget;
3) approval of the draft budget;
4) budget execution;
5) preparation, consideration and approval of a report on budget execution.
The identification of such stages is determined by logic, since they cover all the activities of government bodies, starting from the awareness of the need to spend on relevant needs, forecasting them, finding revenue sources to cover them, and the like. Despite the fact that each of the stages is relatively independent, sequentially changing each other, such stages are interconnected and interrelated. The differentiation of stages of the budget process contributes to the effectiveness of legal regulation of budget relations
But in Art. 19 of the Budget Code of Ukraine establishes four stages of the budget process, namely:
1) drawing up draft budgets;
2) consideration of the draft and adoption of the law on the State budget, decisions on local budgets;
3) budget execution, including amendments to the law on the State Budget of Ukraine, decisions on local budgets;
4) preparation and consideration of a report on the implementation of the budget and making decisions regarding it.
All budgets that make up the budget system of Ukraine go through such stages: the State budget and local budgets. Based on the fact that the source of formation of all budgets is the country’s national income, which is dynamic in nature and depends on the development of the economy and is calculated, as a rule, annually, the legislative and executive bodies involved in the preparation, approval and execution of budgets, each time anew, periodically and systematically update the state of relations, the size of his income and expenses. All stages of the budget process are carefully regulated by procedural rules of budget law, which ensures clear planning and adherence to budget discipline. In this case, these stages follow exactly sequentially, one after another, and their order cannot in any case be changed. In addition, each stage of the budget process, in turn, also consists of several stages, which are also mandatory.
At each stage of the budget process, issues are addressed that cannot be considered at other times. For example, the issue of providing interbudgetary transfers, securing percentage deductions from national taxes and fees are resolved at the stage of budget preparation, and are finally approved at the stage of adoption of the law on the State Budget. The opening and implementation of budget allocations are carried out at the stage of budget execution and only after its approval, etc.
The budget process is based on appropriate legal principles, principles that guarantee clear and impartial planning, effective use of funds, compliance with financial (budgetary) discipline and constant monitoring of budget execution and reflect important features of the budget. Such principles are the principles inherent in both budgetary system of Ukraine in general, and only the budget process. The first group includes the principles enshrined in Article 7 of the Budget Code, namely: the unity of the budget system of Ukraine, balance, independence, completeness, publicity and transparency, etc.
The second group includes principles unique to the budget process:
1) the principle of distribution of budgetary powers between representative and executive authorities. Thus, the legislation establishes such a distribution of powers at the stages of the budget process: the formation and execution of the budget is within the competence of executive bodies, and the consideration, approval and monitoring of budget execution is within the competence of representative bodies;
2) the principle of specialization of budget indicators. It is implemented through budget classification, which, in accordance with Art. 8 of the Budget Code of Ukraine, fixing an exhaustive list of budget incomes and expenses, consists in specifying income by sources, and expenses by target areas;
3) the principle of the budgetary principle, that is, the mandatory adoption of the budget of each year before the start of the planning year, which makes it possible to identify trends in the country’s development and study changes in the rate of production growth. It is very important to adopt the State Budget before the start of the planning year, since this provides for and ensures the timely concentration of financial resources in the budget and financing the needs of the state and society.
In addition, it is necessary to note the following principles: transparency, which implies a wide discussion of the draft budget, bringing it to the attention of the population, publication of the approved budget; visibility - this is a display of budget indicators in relation to the economic indicators of Ukraine’s development; reliability, which involves the use of real indicators when forming the budget, etc.; the sequence of entry into the budgetary activities of government bodies.
All stages of the budget process are under the control of the Accounts Chamber, which acts on behalf of the Verkhovna Rada of Ukraine and local authorities, which strengthens the financial discipline of participants in budget activities.
- Previously, the Law of Ukraine dated July 29, 1995 “On the Budget System in Ukraine” established precisely these stages of the budget process.
The budget process follows strictly established rules due to its importance as an economic tool. The stages of the budget process can be represented as follows:
Stages of the budget process Drafting -> Review -> Approval -> ExecutionThe budget process, according to Article 6 of the Budget Code of the Russian Federation, is the activity of state authorities, local governments and participants in the budget process, regulated by legal norms, in the preparation and consideration of draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as control over them execution.
An integral part of the budget process is budget regulation, which is a partial redistribution of financial resources between budgets of different levels.
The budget process lasts about three and a half years, and this time is called the budget period, that is, this is the time during which the budget process lasts.
Fiscal year- this is the time during which execution is mandatory, having the force of law.
The participants in the budget process in the state are:- head of state;
- legislative bodies;
- executive agencies;
- monetary authorities;
- state and local financial control bodies;
- state extra-budgetary funds;
- main managers of budget funds.
The concept is important for the budget process financial year. The financial year may coincide with the calendar year (from January 1 to December 31), but in a number of countries its beginning is shifted to March 1 or April 1.
Budgeting- the initial stage of the budget process. At this stage, issues such as the volume of the budget, tax and monetary policy for the coming year, the main methods and directions for covering the budget deficit, as well as the distribution of expenses between parts of the budget system are resolved.
Budget review begins six months before its legislative approval. The review process involves: the government, financial and banking authorities, local authorities. The legislative body considers the budget in several readings, which results in agreement on all controversial issues. Adopted by law the budget becomes a national law.
In the process of considering the budget, the interests of all levels of government in terms of income and expenses are coordinated.
Budget execution- a complex process in which many departments, government structures, and organizations are involved. After the collection of revenues in the process of budget execution, the second stage begins - the implementation of expenditures.
Since the state budget itself does not spend anything, but distributes money among specific - recipients of budget funds, then it is important to correctly distribute state budget funds (Fig. 34).
Budget execution is divided into two stages: revenue collection and expenditure.
Rice. 34. Distribution of state budget expensesAt distribution of budget funds it is necessary to determine who is owed and how much. For this purpose, a budget painting.
By using budget list are determined recipients budget funds, stewards state funds (state authorities authorized to manage state budget funds and distribute them among recipients). Listings related to recipients of budget funds are approved by the managers of budget funds.
Treasury budget execution
Budget funds are stored in treasury accounts.
The collection, expenditure, and storage of state budget funds are organized by a special state financial institution—the treasury. The existence of the treasury is objectively determined by the need to comply principle of unity of place collection, storage and payment of budget funds.
The main tasks of the treasury:
- accounting of taxes and payments received in;
- distribution of income between budgets of different levels;
- accounting for benefits and deferments provided;
- mutual settlements between budgets of different levels;
- ensuring targeted and effective spending of funds;
- management of state budget revenues and expenditures in treasury accounts.
The budget process and the powers of its participants
From a legal point of view budget process- this is the compilation, review, approval and execution of a specific level.
From an economic point of view budget process there is a process, firstly, of determining budget revenues and expenditures and achieving their balance, and secondly, of mobilizing revenues and making expenditures.
During the budget process, the determination of possible budget revenues collected in the form of tax and non-tax payments is ensured. At this stage, it is important to determine how certain taxes affect the activities of business entities, how effective these taxes are in ensuring cash flows to the budget.
An assessment of the volume of required budget revenues is inseparable from an assessment of the necessary budget expenditures. Recognizing any expenses inevitably entails a search for additional sources of income. In other words, the preparation of the budget should be preceded by the development of the main directions of financial policy.
Legislation determines the circle of participants in the budget process and their powers.
In accordance with Article 164 of the Budget Code of the Russian Federation, participants in the budget process at the federal level are:- President of the Russian Federation;
- State Duma of the Federal Assembly of the Russian Federation;
- Federation Council of the Federal Assembly of the Russian Federation;
- Government of the Russian Federation;
- Ministry of Taxes and Duties;
- State extra-budgetary funds;
- Main managers and administrators of budgetary funds.
The direct development of the draft federal budget is carried out by the Ministry of Finance.
It has the following budgetary powers:- draws up a project and submits it to the government of the Russian Federation;
- takes part in the development of draft budgets of state extra-budgetary funds;
- on behalf of the government of the Russian Federation, represents the state side in agreements on the provision of loans from the federal budget;
- draws up a consolidated budget list of the federal budget;
- develops a forecast for the consolidated budget of the Russian Federation;
- develops, on behalf of the government of the Russian Federation, a program of state internal and external borrowings;
- cooperates with international financial organizations;
- conducts audits of the finances of recipients of budget funds, including recipients of budget loans, credits and guarantees;
- maintains state books (registers) of internal and external debt of the Russian Federation;
- manages the public debt of the Russian Federation;
- draws up a report on the execution of the consolidated budget of the Russian Federation;
- maintains a consolidated register of the main managers, administrators and recipients of federal budget funds and registers budgetary institutions whose activities are financed from the federal budget.
Current legislation provides special powers to the Minister of Finance to ensure the budget execution process. He, in particular, approves the consolidated budget schedule, as well as limits on budget obligations for the main managers of funds; provides budget loans; has the right to reduce federal budget expenditures in an amount not exceeding 5% of approved federal budget revenues; has the right to redistribute allocations between the main managers of federal budget funds and items of functional and economic classifications of expenses within 10% of approved expenses.
Stages of the budget process
The budget process consists of four stages.
First stage of the budget process
First stage - drafting a budget. It is preceded by the development of plans and forecasts for the development of the territory and target programs of the Russian Federation, constituent entities of the Russian Federation, municipalities and sectors of the economy, as well as the preparation of consolidated financial balances, on the basis of which executive authorities develop draft budgets.
Drafting budgets- exceptional prerogative of the Government of the Russian Federation, corresponding subjects of the Russian Federation and. The preparation of draft budgets is carried out directly by the Russian Federation, the financial authorities of the constituent entities of the Russian Federation and municipalities (Article 184 of the Budget Code of the Russian Federation).
The drafting of the federal budget begins no later than 10 months before the start of the next financial year.
The Government of the Russian Federation is organizing step-by-step work on drawing up a draft federal budget. At certain times socio-economic development forecasts are compiled, the consolidated balance of financial resources, the main directions of the budget policy of the Russian Federation, the control figures of the draft federal budget for the corresponding period and other documents are calculated. Territorial executive authorities are conducting a detailed study and coordination of socio-economic development indicators and target figures.
This stage ends with the fact that no later than August 26 of the year preceding the next financial year, The Russian government is considering the draft budget and other accompanying documents and materials provided by the Ministry of Finance of the Russian Federation and other federal executive authorities, and approves the draft federal law on the federal budget for submission to the State Duma.
Second stage of the budget process
Second stage - review and approval of the budget.
Simultaneously with the draft federal law on the federal budget The Government of the Russian Federation submits draft federal laws to the State Duma: on introducing amendments and additions to the legislative acts of the Russian Federation on taxes and fees; on the budgets of state extra-budgetary funds of the Russian Federation; on the tariffs of insurance contributions to state extra-budgetary funds for the next financial year - until August 1.
After the adoption of the corresponding draft federal law for consideration by the State Duma, it must be sent to the Federation Council of the Federal Assembly of the Russian Federation, committees of the State Duma, other subjects of the right of legislative initiative for making comments and suggestions, as well as to the Accounts Chamber of the Russian Federation for conclusion.
The State Duma is considering the draft federal law on the federal budget for the next financial year in readings.
Third stage of the budget process
Third stage budget process is budget execution. Currently, treasury execution of budgets is being established. The executive authorities are responsible for organizing the execution of budgets, managing budget accounts and budget funds. These bodies are cashiers for all managers and recipients of budgetary funds and make payments from budgetary funds on behalf of and on behalf of budgetary institutions (Chapters 24, 25).
The fourth stage of the budget process
The fourth and final stage of the budget process is preparation, consideration and approval of the budget execution report.
At the end of each financial year, the Minister of Finance issues an order to close the year and prepare a report on the execution of the federal budget as a whole and the budget of each state extra-budgetary fund separately. Based on this order, all recipients of budget funds prepare annual reports on income and expenses. The main managers of budgetary funds consolidate and summarize the reports of subordinate budgetary institutions (Chapter 27 of the Budget Code of the Russian Federation).
The Budget Code of the Russian Federation has established the provision that annually, no later than June 1 of the current year, the Government of the Russian Federation submits to the State Duma and the Accounts Chamber of the Russian Federation a report on the execution of the federal budget for the reporting financial year in the form of a federal law. The Russian Federation checks the report on the execution of the federal budget and draws up a conclusion, which is sent to the State Duma. The State Duma considers the report submitted by the Government of the Russian Federation within 1.5 months after receiving the conclusion of the Accounts Chamber of the Russian Federation. When considering the report, the Duma hears reports on the execution of the federal budget from the heads of the Federal Treasury and the Minister of Finance, as well as a report from the Prosecutor General of the Russian Federation on compliance with the rule of law in the field of budget legislation and the conclusion of the Chairman of the Accounts Chamber of the Russian Federation.
Based on the results of consideration of the report and conclusion of the Accounts Chamber of the Russian Federation, the State Duma makes one of the following decisions: to approve the report on the execution of the federal budget or to reject the report on the execution of the federal budget.
State and municipal financial control must be exercised at all stages of the budget process (Chapter 26 of the Budget Code of the Russian Federation).