When establishing norms regulating the budget deficit, the Budget Code of the Russian Federation introduces a number of restrictions.

If a budget for the next financial year with a deficit is adopted, the law (decision) on this budget approves the sources of financing the budget deficit.

The size of the federal budget deficit should not exceed the total volume of budget investments and maintenance costs government debt.Current expenses of the budgets of the constituent entities of the Russian Federation and local budgets cannot exceed their income. Budget deficit size subject of the Russian Federation cannot exceed 15% of the budget revenue of a constituent entity of the Russian Federation without taking into account financial assistance from the federal budget. Proceeds from sources of financing the budget deficit of a constituent entity of the Russian Federation are used only to finance investment expenses and cannot be used to finance the costs of servicing and repaying the debt of a constituent entity of the Russian Federation. Deficit size local budget cannot exceed 10% of local budget revenue without taking into account financial assistance from the federal budget and the budget of a constituent entity of the Russian Federation. Proceeds from sources of financing the local budget deficit are used only to finance investment expenses and cannot be used to finance the costs of servicing and repaying municipal debt.

Classification of budget deficit.

Kinds budget deficit:

Structural.

Cyclical.

Sources of financing budget deficits

Sources of financing the budget deficit are approved by the legislative authorities in the budget law for the next financial year according to the main types of raising funds. Loans from the Bank of the Russian Federation, as well as the acquisition of municipalities during their initial placement, cannot be sources of financing the budget deficit.

Sources of financing the federal budget deficit are:

a) internal sources:

loans received by the Russian Federation from credit institutions in Russian currency;

government loans made by issuing valuable papers on behalf of the Russian Federation;

budget loans received from budgets of other levels of the budget system;

proceeds from the sale of property located in state property;

the amount of excess of income over expenses on state reserves and reserves;

changes in fund balances in federal budget accounts.

b) external sources:

government loans made in foreign currency by issuing securities on behalf of the Russian Federation;

loans from foreign governments;

loans from banks and foreign companies;

international loans financial organizations provided in foreign currency.

Sources of financing the budget deficit of a constituent entity of the Russian Federation There are only internal sources in the form:

government loans carried out by issuing securities on behalf of a constituent entity of the Russian Federation;

proceeds from the sale of property owned by the state of a constituent entity of the Russian Federation;

changes in fund balances in accounts for accounting for budget funds of a constituent entity of the Russian Federation.

Sources of financing the local budget deficit There can only be internal sources in the form:

municipal loans carried out by issuing municipal securities;

budget loans received from budgets of other levels of the budget system of the Russian Federation;

loans received from credit institutions;

proceeds from the sale of municipally owned property;

changes in fund balances in local budget accounts.

Features of internal sources of financing the budget deficit This is due to the fact that the Government of the Russian Federation is constantly increasing the terms of borrowing on the domestic market, which naturally leads to a general restructuring of debt and a change in the ratio of government securities with different maturities.

This practice reduces the level of trust of legal and individuals who are investors in the securities market. Guarantees of stability of securities, including maturity dates, mean not only trust in the government, but also maintaining minimal investment risks for the long term.

External sources of financing the budget deficit ensure the flow of foreign currency into the budget to finance current expenses and import purchases.

A budget can have three types of totals: balance, surplus and deficit.

Budget balance - the equality of its income and expenses; budget surplus - the excess of budget revenues over its expenses; budget deficit is the excess of budget expenditures over its revenues. Due to the relevance of the Federal budget deficit, I will dwell on it in more detail.

If the Federal budget for the next fiscal year with a deficit is adopted, the law on this budget approves the sources of financing of the federal budget. The size of the federal budget deficit cannot exceed the total volume of budget investments and expenses for servicing the public debt of the Russian Federation.

Sources of financing the federal budget deficit are approved by the legislative (representative) authorities in the law (decision) on federal budget for the next financial year by main types of funds raised. Sources of financing the federal budget deficit are:

• 1) internal sources of the following types:
  • a) loans received by the Russian Federation from credit institutions in Russian currency;
  • b) government loans carried out by issuing securities on behalf of the Russian Federation;
  • c) budget loans received from budgets of other levels of the budget system of the Russian Federation;
• 2) external sources of the following types:
  • a) government loans carried out by issuing securities on behalf of the Russian Federation;
  • b) loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency.

The Budget Code also provides for reductions in federal budget expenditures. If, in the process of executing the federal budget, there is a decrease in federal budget revenues or revenues from sources of financing the federal budget deficit, which leads to incomplete financing of expenses compared to the approved budget by no more than 5 percent, the Minister of Finance has the right to independently decide to introduce a regime for reducing federal expenses. budget and introduce the specified regime. If incomplete financing of expenses occurs in the range from 5 to 10 percent, then the Government of the Russian Federation has the right to decide to introduce a regime to reduce federal budget expenses. Expense reductions are carried out in the same proportions for all types of the federal budget and recipients of budget funds. If incomplete financing occurs by more than 10 percent, then the Government of the Russian Federation represents State Duma draft federal law on amendments and additions to the federal law on the federal budget.

In world practice, there is a replacement, although not entirely adequate, for the concept of cost reduction. This is a sequester. The concept of sequester comes from the Latin secvestrum - restriction. Budget sequestration is a forced reaction to underfunding of budget expenditure items. Sequestration is introduced if underfunding reaches alarming proportions and affects the main areas of financial, economic and political activity of the state.

The important question is how to shorten. In world practice, the model of the so-called “automatic” reduction of expenses subject to sequestration is adopted as a basis. Typically, such a reduction is made according to a single proportion (in percentage) for all budget items, or by their individual groups.

There is also the practice of single-level and multi-level reduction budget allocations. Wherein different levels may provide for different percentages of reductions, however, even here the rule of uniform proportions for one level is strictly observed.

The question of the time frame for sequestration is debatable. There is a point of view that sequestration is more effective if it is used from the moment of its introduction until the end of the financial year, with a subsequent report on its implementation as part of the overall budget execution report. Another position is that the sequester should be introduced at certain period within the current financial year: half a year, quarter, preferably with a monthly breakdown, and monthly reporting on its implementation. The choice of one position or another depends on established practice budget process and features of the economic situation.

However, sequestration has a number of disadvantages. Firstly, sequestration upsets the existing balance and provokes a new round of struggle for budget resources. The forces that control the main financial flows benefit significantly. Traditionally, everyone will be a loser. weak sides: subsidized regions, areas such as education, medicine, Scientific research who do not have a sufficient lobbying apparatus.

This situation can only cause another round of social tension.

Secondly, practice shows that in conditions of limited funding, territories - regional leaders are strengthened and economically weaker regions are concentrated around them. In the context of a decline in the economic activity of the center, such mini-federations are able to demonstrate significant economic and, in part, political strength.

Therefore, sequestration can provoke further separatist tendencies and lead to the destruction of a single economic space.

We can conclude that sequestration as an instrument of financial anti-deficit budget policy has the right to exist only if it is based on the following principles:

• 1. Sequestration is a complex procedure.
• 2. Sequestration is a radical way to combat the budget deficit, so it should be used in the case when the reserves of all other anti-deficit measures are involved and completely exhausted.
• 3. Refusal of automatic proportional reduction budget expenditures. Reductions should not be carried out item by item or by groups of items, but according to spending purposes budget funds or by expense groups.
• 4. Creation of generally recognized and legally approved conditions for introducing the sequestration procedure and its time limits. Practice shows that such an optimal boundary is a quarter with a monthly breakdown.
• 5. It is advisable to clearly define the boundaries of “protected articles”. World practice recognizes the optimal ratio of such items in the budget in the amount of 1/12 - 1/14 of the total volume of budget assignments.

Creating a holistic concept of budget sequestration will eliminate the effect of surprise in the event of an unexpected drop in budget revenues.

E.A. Chugarina, Head of the Finance Department of the Perm City Administration

Dear Colleagues!

The problem of contradiction between two concepts of the component of financial assistance leads to the question of the correctness of determining the maximum size of the local budget deficit, in terms of including subventions from other budget levels in the total volume of financial assistance.
In accordance with clause 5 of Article 92 of the Budget Code of the Russian Federation, the size of the local budget deficit cannot exceed 10% of local budget revenues without taking into account financial assistance from the federal budget and the budget of the subject Russian Federation.
On the one hand, according to clause 5 of Article 41 of the Budget Code of the Russian Federation in determining the types of income, gratuitous and non-refundable transfers include financial assistance from budgets of other levels in the form grants and subsidies .
On the other hand, in accordance with clause 2 of Article 181 of the Budget Code of the Russian Federation, financial assistance to the budgets of other levels of the budget system of the Russian Federation includes grants, subventions and subsidies .
In this connection, in our opinion, the volume of financial assistance, by the amount of which local budget revenues are reduced, when calculating the maximum size of the budget deficit should include revenues in the form of grants, subventions and subsidies.

On November 8, 2006, we sent a request to the Department of Budget Policy of the Ministry of Finance of the Russian Federation regarding the issue of clarification of the correct use of indicators to determine the maximum size of the local budget deficit. The sections “Financiers of Municipal Entities” and “Communities of Financiers of Russia” were invited to study the problem and make their proposals on this issue. Letters with a similar question were sent for discussion to the heads of financial authorities local government.
I would like to thank everyone who shared their experience in solving this problem - the Department of Finance of the Administration of Lipetsk, the Financial Department of Bratsk, the Department of Finance of Krasnodar, the Financial Department of ZATO Seversk, the Department of Finance of the Administration of Izhevsk, the Department of Finance of Krasnoyarsk, the Ministry of Finance of Kaluga region in Kaluga, financial department of the city of Penza, financial and treasury department of the Administration of the city of Ivanovo, financial department of the administration of the city of Tula, Finance Department administration of the city of Khabarovsk, the finance committee of the administration of the city of Saratov, the finance department of the mayor's office of the city of Yaroslavl. All information on the experience of the regions presented by the NP “Community of Financiers” has been studied and analyzed.
Using the example of information provided by the Department of Finance of the Krasnoyarsk City Administration, the maximum size of the budget deficit of the city of Krasnoyarsk is determined without taking into account financial assistance from other levels of the budget system, including grants, subventions and subsidies.
When determining the maximum level of deficit financial management ZATO Seversk excludes all gratuitous receipts from budgets of other levels from the volume of income, while the budget deficit is 9.97%.
There are also opposing opinions. The financial department of the Tula city administration proposes to exclude from the volume of financial assistance the subventions provided for in accordance with Article 181 of the Budget Code by making appropriate changes to the Budget Code.

Moreover, it remains unresolved problem inclusion of a subsidy in the form of an additional standard for deductions to the budgets of municipal districts (urban districts) from the personal income tax when determining the maximum size of the local budget deficit. The problem is to determine the volume of the specified subsidy used to calculate the deficit in the case when the volume of the subsidy approved by the law of the subject does not coincide with the amount of deductions based on the tax potential of the municipality.
Article 138 of the Budget Code of the Russian Federation provides that funds received by municipalities according to the additional standard of deductions from personal income tax in excess of the amount of the calculated subsidy (part of the calculated subsidy) are withdrawn to the budget of a constituent entity of the Russian Federation and (or) taken into account during the subsequent distribution of financial assistance to local budgets are not subject to, losses of the municipal budget in connection with the receipt of funds below the calculated subsidy (part of the calculated subsidy) are not compensated and are not taken into account in the subsequent distribution of financial assistance.
According to the Department of Finance of the Krasnoyarsk City Administration, the municipality should be guided by the amount of the additional standard of deductions that is established in the law of the subject of the Russian Federation. The volumes approved by the budget law take into account the size of the subsidy and the financial management of the city of Penza.
Although there is an opposite opinion presented by the finance department of the Izhevsk city administration, where the index of the tax potential of the urban district is used in budget calculations.

We consider it timely to prepare a draft amendment and addition to Budget Code Russian Federation.
In the proposed draft currently under consideration, changes are made to Article 92 regarding the determination of the size of the deficit: “The maximum value of the budget deficit of a municipal formation should not exceed 10 percent of the approved annual volume of budget revenues of the municipal formation without taking into account gratuitous receipts and (or) revenues tax revenue according to additional deduction standards.”
It is proposed to exclude the concept of “financial assistance” and clarify the concept of gratuitous receipts: “Gratuitous receipts include:
grants and subsidies from other budgets of the budget system of the Russian Federation;
subventions from the federal budget and (or) from the budgets of the constituent entities of the Russian Federation;
others intergovernmental transfers from other budgets of the budget system of the Russian Federation";

There is another problem in determining the maximum level of the budget deficit - this is the problem of accounting for balances. Every year, planning budget parameters and deficits is complicated by the balances in the city budget account as of January 1 in the form of funds received as subventions from the federal and regional budgets, not used during the year, as well as remaining funds from entrepreneurial and other income-generating activities. If a budget with a deficit of 10% is adopted, clarification of the budget for the balances of these funds leads to exceeding the maximum permissible level of the budget deficit.
We propose, due to the fact that income from business and other income-generating activities are funds of a targeted nature, when preparing draft amendments and additions to the Budget Code of the Russian Federation, paragraph 5 of Article 92 should be stated as follows: “The maximum value of the budget deficit of a municipal formation is not must exceed 10 percent of the approved annual budget revenue of the municipality without taking into account gratuitous receipts, income from the provision of paid services provided budgetary institutions, after payment of taxes and fees provided for by the legislation on taxes and fees and (or) receipt of tax revenues according to additional standards of deductions.”

1. The budget deficit of a constituent entity of the Russian Federation for the next financial year and each year of the planning period, the local budget deficit for the next financial year (the next financial year and each year of the planning period) is established by the law (decision) on the corresponding budget in compliance with the restrictions established by paragraphs 2 and 3 of this article.

2. The budget deficit of a constituent entity of the Russian Federation should not exceed 15 percent of the approved total annual budget revenues of a constituent entity of the Russian Federation, excluding the approved volume of gratuitous revenues.

For a constituent entity of the Russian Federation in respect of which the measures provided for in paragraph 4 of Article 130 of this Code are being implemented, the budget deficit should not exceed 10 percent of the approved total annual budget revenues of the constituent entity of the Russian Federation, excluding the approved volume of gratuitous revenues.

In the event that the law of a constituent entity of the Russian Federation on the budget approves, as part of the sources of financing the budget deficit of a constituent entity of the Russian Federation, proceeds from the sale of shares and other forms of participation in capital owned by the constituent entity of the Russian Federation, and (or) a decrease in balances in accounts for accounting for budget funds of the constituent entity of the Russian Federation Russian Federation, including funds Reserve Fund of a constituent entity of the Russian Federation, the budget deficit of a constituent entity of the Russian Federation may exceed the limits established by this paragraph, within the limits of the amount of specified revenues and a decrease in the balances in accounts for accounting for budget funds of a constituent entity of the Russian Federation, including funds from the Reserve Fund of a constituent entity of the Russian Federation.

3. The local budget deficit should not exceed 10 percent of the approved total annual local budget revenues without taking into account the approved volume of gratuitous revenues and (or) tax revenues according to additional deduction standards.

For a municipal entity in respect of which the measures provided for in paragraph 4 of Article 136 of this Code are being implemented, the budget deficit should not exceed 5 percent of the approved total annual volume of local budget revenues without taking into account the approved volume of gratuitous revenues and (or) tax revenues according to additional deduction standards.

If a municipal legal act of the representative body of the municipality approves the budget, as part of the sources of financing the local budget deficit, proceeds from the sale of shares and other forms of participation in capital owned by the municipality, and (or) a decrease in balances in the accounts for accounting for local budget funds The local budget deficit may exceed the limits established by this paragraph, within the limits of the amount of specified revenues and a decrease in the balances in the accounts for accounting for local budget funds.

4. The budget deficit of a constituent entity of the Russian Federation, the local budget deficit, formed according to the annual report on the execution of the relevant budget, must comply with the restrictions established by paragraphs 2 and 3 of this article.

Exceeding the limits established by this article according to the annual report on the execution of the relevant budget is a violation of the budget legislation of the Russian Federation and entails the application of coercive measures provided for by this Code for violation of the budget legislation of the Russian Federation.

5. Loans Central Bank Russian Federation, as well as the acquisition Central Bank of the Russian Federation, government securities of the constituent entities of the Russian Federation, municipal securities, when placed, cannot be sources of financing the deficit of the corresponding budget.

Under budget deficit refers to the excess of expenses over income. Currently, in the conditions of the crisis state of the economy and finance, there is a deficit in budget system The Russian Federation has become a difficult phenomenon to overcome.

If a budget for the next financial year is adopted without a deficit, the relevant law (decision) on the budget may provide for the attraction of funds from sources of financing the budget deficit to finance budget expenses within the limits of debt repayment costs.

Current expenses of the budget of a constituent entity of the Russian Federation, the local budget, approved accordingly by the law on the budget of a constituent entity of the Russian Federation or normative act representative body of local self-government, cannot exceed the volume of budget revenues of a constituent entity of the Russian Federation, the volume of local budget revenues approved, respectively, by the law on the budget of a constituent entity of the Russian Federation or a regulatory act of a representative body of local self-government.

The size of the federal budget deficit, approved federal law on the federal budget cannot exceed the total volume of budget investments and expenses for servicing the public debt of the Russian Federation in the corresponding financial year.

The size of the budget deficit of a constituent entity of the Russian Federation, approved by the law of a constituent entity of the Russian Federation on the budget for the corresponding year, cannot exceed 15% of the volume of budget revenues of a constituent entity of the Russian Federation without taking into account financial assistance from the federal budget. If the law of a subject of the Russian Federation on the budget for the corresponding year approves the amount of proceeds from the sale of property, the maximum amount of the budget deficit of a subject of the Russian Federation may exceed the specified limit, but not more than by the amount of proceeds from the sale of property.

The size of the local budget deficit, approved by the normative act of the representative body of local self-government on the budget for the corresponding year, cannot exceed 10% of the volume of local budget revenues without taking into account financial assistance from the federal budget and the budget of a constituent entity of the Russian Federation. If a normative act of a representative body of local self-government on the budget for the corresponding year approves the amount of proceeds from the sale of property, the maximum amount of the local budget deficit may exceed the specified limit, but not more than by the amount of proceeds from the sale of property. *

Compliance limit values must also be ensured according to the report on the execution of the relevant budget for the financial year (Article 92 BK RF).

Sources of financing the budget deficit approved by the legislative (representative) authorities in the law (decision) on the budget for the next financial year for the main types of funds raised.

Loans from the Bank of Russia, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, and municipalities during their initial placement, cannot be sources of financing the budget deficit (Article 93 of the Budget Code of the Russian Federation).

The current expenditure budget highlights protected articles, for which expenses are guaranteed to be paid in full under the conditions of application of the sequestration mechanism. The list of protected items is established annually when the corresponding budget is approved. These include articles providing for payment wages and pensions, scholarships, expenses for renting premises, heating, lighting, etc.

As part of budgets, the amount formed from the balances of funds in the corresponding budget is approved, which is used during budget year to cover temporary cash gaps. This amount called circulating cash. Negotiable cash on hand must be restored during the budget year to the amounts approved at the beginning of the year.