When establishing norms regulating the budget deficit, the RF BC introduces a number of restrictions.

If the 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.

Size of the federal budget deficit should not exceed the total volume of budget investments and public debt servicing costs. Current expenditures of the budgets of the constituent entities of the Russian Federation and local budgets cannot exceed their income. The size of the budget deficit of the constituent entity of the Russian Federation may not exceed 15% of the budget revenue of a constituent entity of the Russian Federation, excluding financial assistance from the federal budget. Proceeds from the sources of financing the budget deficit of the constituent entity of the Russian Federation are directed only to finance investment costs and cannot be used to finance the costs of servicing and repaying the debt of the constituent entity of the Russian Federation. The size of the local budget deficit may not exceed 10% of the local budget income, excluding 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 costs and cannot be used to finance the costs of servicing and repaying the municipal debt.

Classification of the budget deficit.

Types of budget deficit:

Structural.

Cyclical.

Sources of financing the budget deficit

The sources of financing the budget deficit are approved by the legislative authorities in the law on the budget for the next financial year for the main types of fundraising. Credits 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 the currency of the Russian Federation;

state loans carried out by issuing securities on behalf of the Russian Federation;

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

proceeds from the sale of state-owned property;

the amount of excess of revenues over expenditures on state stocks and reserves;

change in the balances of funds on the accounts for the accounting of federal budget funds.

b) external sources:

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

loans from foreign governments;

loans from banks and firms of foreign countries;

loans from international financial organizations provided in foreign currency.

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

state 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 balances of funds on 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 the budgets of other levels of the budget system of the Russian Federation;

loans received from credit institutions;

proceeds from the sale of property owned by the municipality;

changes in the balances of funds in the accounts for the accounting of local budget funds.

Feature of internal sources of financing the budget deficit due to the fact that the Government of the Russian Federation is constantly increasing the terms of borrowing in 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 confidence of legal entities and individuals who are investors in the securities market. Guarantees of the stability of securities, including in terms of maturity, mean not only trust in the government, but also maintaining minimal investment risks in the long term.

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

Balancing the budgets of all levels is a necessary condition for fiscal policy. The excess of spending over income is the budget deficit. Budget surplus - the excess of budget revenues over its expenditures;

If there is a budget deficit, the expenditures included in the current expenditure budget are subject to priority financing. The size of the federal budget deficit cannot exceed the total volume of budget investments and expenditures for servicing the state debt of the Russian Federation in the corresponding financial year.

The size of the budget deficit of a constituent entity of the Russian Federation cannot exceed 15% of the volume of budget revenues of the constituent entity, excluding financial assistance from the federal budget.

The size of the local budget deficit, approved by the normative act of the representative body of local self-government, cannot exceed 10% of the local budget revenues, excluding financial assistance from the federal budget and the budget of the constituent entity of the Russian Federation.

If in the process of budget execution there is an excess of the maximum level of deficit or a significant decrease in revenues from revenue sources of the budget, then a mechanism for sequestering expenditures is introduced, which consists in a proportional reduction in public expenditures (by 5, 10, 15, and so on) monthly for all budget items during the remainder of the current financial year. Protected articles are not subject to sequestration (their composition is determined by the Federal Assembly of the Russian Federation, as well as by the representative authorities of the constituent entities of the Russian Federation).

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

Credits from the Bank of Russia, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, subjects of the Russian Federation, municipalities during their initial placement cannot be sources of financing the budget deficit.

The sources of financing the federal budget deficit are:

1) internal sources in the following forms:

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

state loans carried out by issuing securities on behalf of the Russian Federation;

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

proceeds from the sale of state-owned property;

the amount of excess of revenues over expenditures on state stocks and reserves;

change in balances of funds on accounts for accounting for federal budget funds;

2) external sources in the following forms:

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

loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency.

State credit reflects credit relations regarding the mobilization by the state of temporarily free funds of enterprises, organizations and the population on a repayment basis to finance government spending.

Individuals and legal entities act as lenders, while the state represented by its bodies acts as a borrower.

The state attracts additional financial resources by selling bonds and other government securities on the financial market. This form of credit allows the state to attract additional financial resources to cover the budget deficit without issuing for these purposes.

State. credit is also used to stabilize the money circulation in the country.

Classification of public credit.

1. Depending on the borrower, government loans are divided into:

¨ hosted by central government;

¨ hosted by local governments.

2. At the location of the state. credit can be internal and external.

3. By terms of attraction:

short-term (up to a year);

medium-term (from one to 5 years);

long-term.

The size of the state loan is included in the amount of the country's public debt.

Chapter 14. Budget deficit and sources of its coverage. State and municipal debt

14.1. Budget deficit and sources of its coverage

A budget deficit is an excess of expenditures over incomes of the corresponding level. In other words, this is a situation when, when approving the budget, there are no profitable sources for part of the expenses. However, this does not mean that sources will not appear in the future, during the execution of the budget.

The Budget Code determines that in the event of the adoption of the budget for the next year with a deficit, the federal law, the law of the constituent entity of the Russian Federation or the normative act of the local government approves the sources of financing the budget deficit.

The Code also establishes a ceiling on the budget deficit for each level of the budget system.

The size of the federal budget deficit cannot exceed the total volume of budget investments and expenditures for servicing the public debt of the Russian Federation.

The maximum size of the budget deficit of a constituent entity of the Russian Federation is related to the volume of income and cannot exceed 15 percent of the budget revenues of a constituent entity of the Russian Federation, excluding assistance from the federal budget.

The size of the local budget deficit cannot exceed 10 percent of the local budget revenues, excluding assistance from the federal budget and the budget of a constituent entity of the Russian Federation.

In addition, the code contains one more restriction, according to which the current expenditures of the budgets of the constituent entities of the Russian Federation and municipalities cannot exceed the volumes of incomes of the corresponding budget. Consequently, current expenditures should, on the one hand, be provided with income, and on the other hand, their volumes should be determined when forming budgets, taking into account the planned amount of income.

At the federal level, the deficit is defined both in sum terms and as a percentage of gross domestic product (GDP). In recent years, the federal budget has been approved without a deficit and even with an excess of revenues over expenditures.

In 2003, the federal budget was approved for spending in the amount of 2 trillion. 345.6 billion rubles and income in the amount of 2 trillion. 417.7 billion rubles. The excess of income over expenses is determined in the amount of 72 billion 150 million rubles. At the same time, the volume of GDP is projected in the amount of 13 trillion. 50 billion rubles, inflation rate (consumer prices) 10-12 percent. The excess of revenues over expenditures in 2003 is planned to be distributed as follows: 51.4 billion rubles are directed to repay the state debt and 20.7 billion rubles are directed to replenish the financial reserve.

The financial reserve is the funds accumulated to pay off the public debt in subsequent years.

On the example of our conditional subject of the Russian Federation with a population of 800 thousand people, the budget parameters are approximately as follows: expenses are determined in the amount of 4 billion 643 million rubles, and revenues in the amount of 4 billion 418 million rubles. The deficit was approved at 224.7 million rubles, which is 15 percent of budget revenues, excluding assistance from the federal budget, or 4.8 percent of total budget expenditures.

On the example of a municipality, let's consider the procedure for determining the parameters of possible costs. Own revenues of the municipal formation - a city with a population of about 100 thousand inhabitants, amount to 320 million rubles. Given the requirements of the budget code, the deficit cannot exceed 10 percent of revenues, i.е. will amount to 32 million rubles. Financial assistance from the budgets of other levels is determined in the amount of 100 million rubles. Therefore, the budget expenditure of a given municipality should be determined as follows:

Expenditure = Doh. own + Doh. fin. pom. + Def. =320+100+32= 452 million rubles.

If the volume of planned expenditures exceeds the amount determined above, the local government will either have to reduce expenditures on some items or find additional revenues at the municipal level.

It has already been noted above that if the budget is adopted with a deficit, the document approving the budget must determine the sources of its financing.

For the federal budget, two groups of sources of financing deficits are defined: external and internal.

External sources are defined in the following forms:

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

Credits of foreign governments, banks and firms, international financial organizations, provided in foreign currency, attracted by the Russian Federation.

Domestic sources of financing the deficit are defined in the following forms:

Credits received by the Russian Federation from credit institutions in the currency of the Russian Federation;

State loans carried out by issuing securities on behalf of the Russian Federation;

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

Proceeds from the sale of federally owned property;

The amount of excess of revenues over expenditures on state stocks and reserves;

Changes in balances of funds in accounts for accounting for federal budget funds.

The sources of financing the budget deficit of the constituent entity of the Russian Federation are somewhat different from the federal level and consist only of internal sources in the following forms:

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

Budget loans and budget credits received from the budgets of other levels of the budget system;

Loans received from credit institutions;

Proceeds from the sale of state-owned property of a constituent entity of the Russian Federation;

Changes in the balances of funds on accounts for accounting for budget funds of a constituent entity of the Russian Federation.

For the municipal level, the sources of financing the budget deficit practically do not differ in form from the sources defined for the constituent entity of the Russian Federation:

Municipal loans carried out by issuing municipal securities on behalf of the municipality;

Loans received from credit institutions;

Budget loans and budget credits received from budgets of other levels;

Proceeds from the sale of municipal property;

Changes in the balances of funds on accounts for accounting for local budget funds.

In practice, the main sources of financing the budget deficit at the level of the subject and at the level of the municipality are budget loans and loans from commercial organizations. Loans are not widely used. The sale of property is a source that tends to decrease as it is sold and, as a result, is final.

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 a law (decision) on the relevant budget, subject to the restrictions established by paragraphs 2 and 3 of this article.

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

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

If the law of the constituent entity of the Russian Federation on the budget approves, as part of the sources of financing the budget deficit of the 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 the balance of funds in the accounts for accounting for the budget of the constituent entity of the Russian Federation, including the funds of the Reserve Fund of the constituent entity of the Russian Federation, the budget deficit of the constituent entity of the Russian Federation may exceed the limits established by this paragraph, within the amount of the said receipts and reduce the balance of funds on the accounts for accounting for the budget funds of the constituent entity of the Russian Federation, including the funds of the Reserve fund of the subject of the Russian Federation.

3. The deficit of the local budget should not exceed 10 percent of the approved total annual volume of local budget revenues, excluding the approved volume of gratuitous receipts and (or) tax revenues for additional deductions.

For a municipal formation in respect of which the measures provided for by paragraph 4 of Article 136 of this Code are being implemented, the budget deficit must not exceed 5 percent of the approved total annual volume of local budget revenues, excluding the approved volume of gratuitous receipts and (or) receipts of tax revenues for additional rates of deductions.

In the event that a municipal legal act of the representative body of the municipality on the budget approves, 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 the balance of funds on accounts for accounting for local budget funds the deficit of the local budget may exceed the limits established by this paragraph, within the amount of the indicated receipts and a decrease in the balance of funds on the accounts for accounting for the funds of the local budget.

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

Excess, according to the data of the annual report on the execution of the relevant budget, of the limits established by this article 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. Credits from the Central Bank of the Russian Federation, as well as the acquisition by the Central Bank of the Russian Federation of government securities of constituent entities of the Russian Federation, municipal securities when they are placed, cannot be sources of financing the deficit of the corresponding budget.

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

The balance of the budget - the equality of its revenues to expenditures; budget surplus - the excess of budget revenues over its expenditures; budget deficit - 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.

In the event of the adoption of the Federal budget for the next financial year with a deficit, 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 expenditures on servicing the public debt of the Russian Federation.

The sources of financing the federal budget deficit are approved by the legislative (representative) authorities in the law (decision) on the federal budget for the next financial year for the main types of funds raised. The 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 the currency of the Russian Federation;
  • b) government loans carried out by issuing securities on behalf of the Russian Federation;
  • c) budget loans received from the 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 a reduction in federal budget expenditures. If in the course of execution of the federal budget there is a decrease in receipts of federal budget revenues or receipts from sources of financing the federal budget deficit, which leads to incomplete financing of expenditures by no more than 5 percent compared to the approved budget, the Minister of Finance has the right to independently decide on the introduction of a regime for reducing federal expenditures. budget and enter the specified mode. If incomplete financing of expenditures occurs in the range from 5 to 10 percent, then the Government of the Russian Federation has the right to decide on the introduction of a regime for reducing federal budget expenditures. Reduction of expenses is carried out in the same proportion 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 submits to the State Duma draft federal laws on amendments and additions to the federal law on the federal budget.

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

The important question is how to reduce. In world practice, the model of the so-called "automatic" reduction of costs subject to sequestration has been adopted as a basis. Typically, such a reduction is made in a single proportion (as a percentage) for all budget items, or for their individual groups.

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

The question of the time frame of sequestration is debatable. There is a point of view that the 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 report on budget execution. Another position - the sequestration should be introduced for a certain period within the current financial year: half a year, a quarter, preferably with a monthly breakdown, and monthly reporting on its implementation. The choice of one or another position depends on the current practice of the budget process and the specifics of the economic situation.

However, sequestration has a number of disadvantages. First, the sequestration upsets the existing balance and provokes a new round of struggle for budgetary resources. Significant gains in it are received by those forces that control the main financial flows. All the traditionally weak sides will be the losers: subsidized regions, such areas as education, medicine, scientific research, which do not have a sufficient lobbying apparatus.

Such a situation can only cause another round of social tension.

Secondly, practice shows that in the conditions of limited funding, there is a strengthening of territories - regional leaders and a concentration of economically weaker regions 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 power.

Therefore, the sequestration is capable of provoking further separatist tendencies and leading to the destruction of the common economic space.

It can be concluded 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 deal with the budget deficit, so it should be used when the reserves of all other anti-deficit measures are used and completely exhausted.
• 3. Refusal of automatic proportional reduction of budget expenditures. The reduction should be carried out not item by item and not by groups of items, but by the purpose of spending budget funds or by groups of expenses.
• 4. Creation of universally recognized and legislatively approved conditions for the introduction of the sequestration procedure and its time limits. Practice shows that such an optimal boundary is a quarter with a monthly breakdown.
• 5. It is desirable 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.

The creation of a holistic concept of budgetary sequestration will make it possible to eliminate the effect of surprise in the event of an unexpected drop in budget revenues.