The classification of budget expenditures is a grouping of expenditures of budgets of all levels and reflects the direction of budget funds for the implementation of sector units government controlled and local self-government of the main functions, the solution of socio-economic problems.

1. The code for classifying budget expenditures consists of:
1) from the code of the main manager of budgetary funds;
2) code of the section, subsection, target item and type of expenses;
3) classification code for operations of the general government sector related to budget expenditures.

The list of sections, subsections, target articles (state (municipal) programs and non-program areas of activity), groups (groups and subgroups), types of budget expenditures is approved as part of the departmental structure of budget expenditures by a law (decision) on the budget.

The classification of budget expenditures contains 14 sections reflecting the direction financial resources to carry out the basic functions of the state. The sections are detailed by subsections, specifying the direction of budgetary funds to perform the functions of the state within the sections.

Sections of the classification of budget expenditures are represented by the following positions:
0100 - General government issues;
0200 - National Defense;
0300 - National Security and Law Enforcement;
0400 - National economy;
0500 - Housing and communal services; 0600 - Environmental protection; 0700 - Education; 0800 - Culture, cinematography; 0900 - Health care; 1000 - Social policy; 1100 - Physical culture and sports; 1200 - Mass media; 1300 - Service of the state and municipal debt;
1400 - Interbudgetary transfers of a general nature to the budgets of the constituent entities of the Russian Federation and municipalities.

Federal budget for 2014 and for the planning period of 2015 and 2016. the structure of federal budget expenditures for 2014 is provided for by sections, subsections, targeted articles (state programs Russian Federation and non-program areas of activity), groups of types of expenditures of the classification of expenditures of the federal budget.

The main part of the federal budget expenditures for 2014 according to the sections of classification of budget expenditures are expenditures under the “Social Policy” section, followed by expenditures under the “National Economy” section.

Sections and subsections of the classification of expenses are uniform and are used in the preparation, approval and execution of budgets of all levels of the budget system of the Russian Federation. So, for example, section 0700 "Education" is represented by the following subsections:
0701 - Pre-school education;
0702 - General education;
0703 - Primary vocational education;
0704 - Secondary vocational education;
0705 - Vocational training, retraining and advanced training;
0706 - Higher and postgraduate professional education;
0707 - Youth policy and health improvement of children;
0708 - Applied Scientific research in the field of education;
0709 - Other issues in the field of education.

As an illustrative example, we will give the structure of federal budget expenditures for 2014 for the relevant subsections of section 0700 "Education".

Based on the presented data, we can conclude that the key area of ​​federal budget spending for 2014 under the subsections of the Education section is Higher and Postgraduate Vocational Education (about 80%).

Target articles provide anchoring budget appropriations to specific areas of activity of subjects of budget planning and participants in the budget process, within the subsections of the classification of budget expenditures.

The target item code consists of seven characters - from 8 to 14 digits of the 20-digit expense classification code. At the same time, digits 8-10 determine the code of the target article itself, digits 11-12 - the program code, with the help of which the target items were detailed, digits 13 to 14 - the subprogram code, specifying, if necessary, the direction of spending funds within the framework of the corresponding program. For example, the target article code 02 1 0000 means that federal budget expenditures belong to state program of the Russian Federation 02 "Development of education" for 2013-2020, subprogram 1 "Development of vocational education 1.

Lists of target articles used in the budgets of the constituent entities of the Russian Federation and local budgets, forms the relevant financial body in accordance with the expenditure obligations to be fulfilled at the expense of the relevant budgets. For example, the list of target articles established for the federal budget includes the target article code 100 00 00 “Federal Target Programs”.

This target article reflects federal budget expenditures for the implementation of federal target programs (subprograms) in accordance with the list approved in the established manner, including research and development work, budget investments and other activities. The code of the specified target article includes a program slice - 4 characters, including 4 and 5 characters - the code of the federal target program. For example:
1000200 - Federal target program "Culture of Russia (2012-2018)"
1000600 - Federal Target Program "Russian Language" for 2011-2015
1001200 - Federal target program "Development of the water management complex of the Russian Federation in 2012-2020".

The program cut of the target items intended to reflect the costs of ensuring public regulatory obligations is applied as follows:
- program code (4, 5 characters of the seven-digit code of the target article) reflects the belonging of the expenses to the relevant law, other regulatory legal act establishing the payment;
- subprogram code (6, 7 signs of the seven-digit code of the target article) specifies the types of payments within the framework of the law encoded at the program level, other regulatory legal acts.

Public regulatory obligations are, for example, monthly supplements to pensions certain categories pensioners, state scientific scholarships for young scientists of Russia, prizes of the Government of the Russian Federation in the field of culture and education, etc.

The last three characters of the budget classification code for budget expenditures consist of the classification code for general government operations related to budget expenditures.

Common for the budgets of the budgetary system of the Russian Federation, the items of operations of the public administration sector in group 200 "Expenses" are:
210 - wages and accruals for wage payments;
220 - payment for works, services;
230 - service of the state (municipal) debt;
240 - gratuitous transfers to organizations;
250 - gratuitous transfers to budgets;
260 - social security;
290 - other expenses.

Budget classification represents a grouping of incomes and expenditures of budgets of all levels, as well as sources of financing their deficits. It provides comparability of indicators of all budgets. With its help, systematization of information about the formation budget revenues and spending.

The federal law "On the budget classification of the Russian Federation" was adopted State Duma Russian Federation June 7, 1996 This law is currently in force with amendments and additions adopted federal law dated 05.08.2000 No. 115-FZ.

The budget classification of the Russian Federation includes:

1. classification of budget revenues;
2. classification of budget expenditures;
3. classification of funding sources;
4. classification of operations of public legal entities (hereinafter referred to as the classification of operations of the public administration sector).

In addition, the classification is provided:

• sources of internal financing of budget deficits;
• sources of external financing of the federal budget deficit;
• types of state internal debts of the Russian Federation, subjects of the Russian Federation, municipalities;
• RF types.

Rice. 4 Budget classification

Budget classification of income

The classification of budget revenues is a grouping of budget revenues of all levels of the Russian Federation.

Incomes of budgets of all levels are classified into groups, subgroups, articles and sub-articles.

The classification of income provides for the following groups: Further detailing of income is carried out by subgroups, items and sub-items of the budget classification, for example:

Such detail allows to take into account receipts to the budgets of all types of income provided for by law. For each of them, an independent code is provided in the budget classification.

Budget classification of expenditures

Cost classification carried out in several ways:

• functional the classification reflects the allocation of budget funds to the implementation of the main functions of the state (management, defense, etc.). (Section → Subsection → Target items → Types of expenses).
• departmental classification of budget expenditures is directly related to the management structure, it reflects the grouping legal entities receiving public funds. (The main managers of budget funds).
• Economic the classification shows the division of state expenditures into current and capital, as well as wages, material costs, and the purchase of goods and services. (Expenditure category → Groups → Subject items → Sub-items)

See also: Budget expenditures

Functional classification of budget expenditures

It is a grouping of expenditures of budgets of all levels of the budget system of the Russian Federation and reflects the expenditure of funds for the implementation of the main ones.

The functional classification of expenses has four levels: sections; subsections; targeted articles; types of expenses.

In particular, the functional classification provides for the following sections (Code - Name):

• 0100 - State administration and local self-government
• 0200 - Judiciary
• 0300 - International activities
• 0400 - National Defense
• 0500 - Law enforcement and state security
• 0600 - Basic research and promotion of scientific and technological progress
• 0700 - Industry, energy and construction
• 0800 — Agriculture and fishing
• 0900 - Protection of the natural environment and natural resources, hydrometeorology, cartography and geodesy
• 1000 - Transport, road facilities, communications and informatics
• 1100 - Development of market infrastructure
• 1200 - Housing and communal services
• 1300 - Prevention and elimination of consequences of emergencies and natural disasters
• 1400 - Education
• 1500 - Culture, art and cinematography
• 1600 - Media
• 1700 - Health and physical culture

• 1800 - Social policy
• 1900 - Servicing the public debt
• 2000 - Replenishment of state stocks and reserves
• 2100 - Financial assistance to budgets of other levels
• 2200 - Utilization and elimination of weapons, including the implementation of international treaties
• 2300 - Mobilization preparation of the economy
• 2400 - Exploration and use of outer space
• 3000 - Other expenses
• 3100 -Target budget funds

Further detailing of the functional classification of expenses is carried out by subsections, target items and types of expenses, for example:

Based on the above functional classification, budgets of all levels are built. It is clear that this takes into account the specifics of the budget of a particular level. The full functional classification is used for.

Departmental classification of budget expenditures

Departmental classification budgets is a grouping of expenses by recipients of budgetary funds. The list of recipients of funds from the federal budget is approved by law for the next year.

Departmental classifications of the budgets of the subjects of the Federation and local budgets are approved by the authorities of the subjects of the Federation and local governments, respectively.

An example of a functional classification of expenses by 4 levels:

Economic classification of budget expenditures

Economic classification budget expenditures is a grouping of expenditures of budgets of all levels of the budget system of the Russian Federation according to their economic content. It reflects the types of financial transactions carried out when performing government bodies their tasks. The economic classification includes groups, subgroups, subject items, subitems and cost elements.

The expense groups are:

	Name
	Current expenses- this is a part of budget expenditures that ensures the current functioning of public authorities, budget institutions and so on. The category "Current expenses" includes the following groups: purchases of goods and services; interest payments; subsidies and current transfers; payment for services for the recognition of property rights abroad.
	Capital expenditure is a part of budget expenditures that provides innovative and investment activity. A development budget can be allocated as part of capital expenditures. Capital expenditures have the following groups: capital investments in fixed assets, the creation of state reserves and reserves, the acquisition of land and intangible assets capital transfers.
	Providing loans (budget loans)

Further detailing within the framework of economic qualification has the following structure:

The economic classification of expenditures of the budgets of the Russian Federation has been transformed into a classification of public sector operations. It determines the direction of budget revenues and expenditures, depending on the economic content of operations carried out in the public administration sector.

The classification of general government transactions is a grouping of transactions based on their economic content.

Within the framework of this classification, operations of the general government sector are divided into current (income and expenses), investment (operations with financial assets) and financial (transactions with financial assets and liabilities).

The classification of general government transactions consists of the following groups:

• 100 Income;
• 200 Expenses;
• 300 Receipt of non-financial assets;
• 400 Disposal of non-financial assets;
• 500 Receipt of financial assets;
• 600 Disposal of financial assets;
• 700 Increase in liabilities;
• 800 Reducing liabilities.

Groups are detailed by articles and sub-articles. The more detailed analytical codes provided in this document are not general government transaction classification codes, but are intended solely for the purpose of structuring the text of these Guidelines.

Classification of expenditures of the budgets of the Russian Federation for public sector operations (Codes and names of articles and sub-items)

Budget classification of the Russian Federation

By its very nature, a classification of general government transactions is a grouping of transactions in the general government sector based on their economic content.

CLASSIFICATION OF BUDGET INCOME

The structure of the 20-digit budget revenue classification code is presented in the form of four components:

1) chief administrator of budget revenues (categories 1–3);

2) type of income (group, subgroup, item, subitem, element) (categories 4–13);

3) subtype of income (categories 14–17);

4) classification of operations of the general government sector related to budget revenues (categories 18–20).

The structure of the budget revenue classification code

The code of the chief administrator of budget revenues consists of three digits. It is established by the law (decision) on the budget. Assignment to the chief administrators of budget revenues of codes of classification of budget revenues is carried out on the basis of the powers they exercise to present claims for the transfer of property, including funds, to a public law entity.

The income type code (bits 4–13 of the budget income classification code) consists of 10 characters and includes:

group (category 4);

subgroup (categories 5, 6);

article (categories 7, 8);

Sub-article (bits 9-11);

element (digits 12, 13).

The income group has the following meanings:

· 100 - tax and non-tax revenues;

· 200 - gratuitous receipts.

Further detailing of the code for the type of budget revenues is carried out in the context of the relevant articles and sub-items in accordance with the Instructions on the procedure for applying the budget classification of the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 01, 2013 No. 65n.

In digits 18–20 of the code for classifying budget revenues, KOSGU is used (Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation). This grouping reflects the economic content of operations carried out in the public administration sector.

CLASSIFICATION OF BUDGET EXPENDITURES

The grouping of expenditures of budgets of all levels is a classification of budget expenditures.

Chief manager of budgetary funds

Chapter

Subsection

Target Article

Type of expenses

Article (subarticle) of the classification of operations of the general government sector related to budget expenditures

program

subroutine

Chief stewards (ranks 1–3). The list is given in Appendix 9 to Order No. 65n and is established by the law (decision) on the relevant budget as part of the departmental spending structure.

Sections, subsections (bits 4–7). There are 14 sections in the classification of budget expenditures.

They reflect the direction of financial resources for the implementation of the main functions of the state. The sections are detailed by subsections specifying the direction of budgetary funds for the performance of state functions within the sections.

An example of the classification of budget expenditures

Section 0700 "Education" consists of nine subsections. It accumulates the costs of a purposeful process of education and training in the interests of a person, society, and the state. Thus, subsection 0702 “General education” reflects expenses for primary general, basic general, secondary (complete) general education. Here are the costs of maintenance and support educational process educational institutions, institutions for out-of-school work with children, special (correctional) institutions.

Target articles. The target item code consists of seven characters - bits 8–14 of the 20-digit budget expenditure classification code. At the same time, digits 11 and 12 are intended for coding the program of the corresponding target item, and digits 13 and 14 are for coding a subprogram specifying (if necessary) the direction of spending funds within the program.

Types of expenses (categories 15–17) detail the directions of financing budget expenditures both by target items and by targeted programs budget spending.

The lists of types of expenses used in the budgets of the constituent entities of the Russian Federation and local budgets are formed by the relevant financial authority based on expenditure obligations to be fulfilled at the expense of the relevant budgets.

In digits 18–20 of the budget expenditure classification code articles and sub-articles of KOSGU are given (contained in Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation).

CLASSIFICATION OF SOURCES OF FINANCING OF BUDGET DEFICIENCY

The classification code for sources of financing budget deficits consists of 20 categories and includes:

· code of the chief administrator of budget deficit financing sources (categories 1–3);

· codes of the group, subgroup, article and type of source of financing of budget deficits (bits 4–17);

· classification code for operations of the general government sector related to sources of financing budget deficits (digits 18–20).

The list of chief administrators of sources of financing budget deficits is approved by the law (decision) on the relevant budget.

Groups and subgroups (categories 4–7) are established by the budget legislation of the Russian Federation and are the same for the budgets of the budget system of the Russian Federation, for example 4600 - “Other loans (budget loans)”.

Further detailing of subgroups of the code of sources of financing of budget deficits is carried out by means of articles and types of sources of financing of budget deficits.

At the same time, the six-digit code of the article of sources of financing budget deficits is detailed by a sub-article and an element - respectively, categories 3, 4 and 5, 6 of its six-digit code.

The element of sources of financing of budget deficits reflects the belonging of the source of financing of the budget deficit to the corresponding budget of the budget system, for example, the code of the element of sources of financing of budget deficits:

01 - federal budget;

· 10 - the budget of the settlement.

In the economic literature, the concepts of "production costs", "production costs", "production costs" are often used. At the same time, the definitions of these concepts often differ significantly, sometimes they mean the same content.

W expenses- this is the value expression of the material, financial, labor and other resources used by the organization for a certain period. Costs- a generalizing indicator that reflects the total cost associated with a particular process. At the same time, the main difference between the concepts costs" And " expenses"is that the costs cover all the resources spent in the organization, and the costs relate only directly to the output.

Costs lead to a decrease in some assets and an equal increase in other assets, i.e. do not reduce the capital of the enterprise and do not have a direct impact on profits. Costs can be charged to either assets or expenses of the organization.

Expenses represent an outflow of economic benefits during the reporting period in the form of a decrease or use of the entity's assets or an increase in its liabilities resulting in a decrease in capital, other than the allocation of capital to the entity's members. This means that expenses have a direct impact on profits and reduce the capital of an economic entity.

Costs in the period in which they are incurred may coincide with costs if one of the following conditions is met:

Income received as a result of their implementation;

There is a reasonable degree of certainty that there will be no income in both this and future reporting periods.

The totality of costs not recognized as expenses at the end of the reporting period is not recognized in the income statement, but in the balance sheet as assets.

In the general case, the valuation of the consumed resources continues to be included in the cost until the moment of recognition of the income for which the consumption of these resources was directed comes. At the time of income recognition, costs are recognized as expenses.

Thus, the terms "costs" and "costs" are close in content and are interchangeable, and the use of the term "costs" should be treated carefully.

For effective management costs, it is necessary to use a classification that involves grouping costs according to certain criteria.

The classification of costs is necessary for the rational organization of their accounting, determining their place and role in the formation of the cost of production, further improving planning, accounting and calculating the cost of production.

In accordance with international standards and accounting practices in developed countries market economy all costs should be generalized and grouped into three areas of activity:

1) for costing, estimating stocks and work in progress, determining profits;

2) for making managerial decisions, planning and forecasting;

3) to exercise control and regulation.

Within these areas of activity, you can use different options for classifying costs, depending on specific tasks.

In the practice of production accounting of Russian enterprises, the first direction of activity historically prevailed - the calculation of the cost of production. There was a certain range of classifications that were aimed at calculating the cost of production for subsequent pricing. Product costing was the main purpose of cost grouping.

The cost of living and materialized labor for the production and sale of products (works, services) - PRODUCTION COSTS. In domestic practice, the term PRODUCTION COSTS is used to characterize all production costs for a certain period.

In accordance with international standards, EXPENSES are losses and costs incurred in the course of the main activities of the enterprise.

Costs reflect the cost of resources used in the course of the enterprise's activities for the production of products. The composition of the costs included in the cost of production is set centrally. The principles of formation of the cost of production are determined by the Law of the Russian Federation "On the tax on profits of enterprises and organizations", "Regulations on the composition of costs for the production and sale of products (works, services) included in the cost of products (works, services), and on the procedure for forming financial results taken into account in the taxation of profits”, as well as other regulatory acts.

The Regulation distinguishes between costs attributable to the cost of production (works, services) and costs incurred from other sources of financing. The regulation on the composition of costs determines that the cost of production is valuation used in the production process of natural resources, raw materials, materials, fuel, energy, fixed assets, labor resources, as well as other costs for its production and sale.

One of the prerequisites for the rational organization of cost accounting is their economically justified classification. In accordance with international standards and accounting practices in countries with developed market economies, it is advisable to generalize and group all costs into three areas of activity:

1) for costing, estimating stocks and work in progress, determining profits;

2) for making managerial decisions, planning and forecasting;

3) to exercise control and regulation.

Within these areas of activity, you can use different options for classifying costs, depending on specific tasks.

In the practice of production accounting of Russian enterprises, the first direction of activity historically prevailed - the calculation of the cost of production. There was a certain range of classifications that were aimed at calculating the cost of production for subsequent pricing. Product costing was the main purpose of cost grouping.

Cost classification for cost calculation

Costs are usually classified according to a number of criteria, among which the main ones are the following.

According to the economic content, the following groupings are distinguished: by cost elements and by items. To determine the volume of material, labor, financial resources used by the enterprise for all production and economic activities, regardless of their purpose and use, they use a classification by economic elements. The nomenclature of elements is the same for all enterprises. Production costs that form the cost of production, consist of the following elements:

• material costs;
• labor costs;
• deductions for social needs;
• depreciation of fixed assets;
• other costs.

The costing items group the costs to form the cost of individual types of products. The list of articles is established for individual industries, based on the characteristics of technology and organization of production. Approximate costing items reflecting the costs of production:

1) raw materials and supplies;

2) returnable waste (subtracted);

3) purchased products, semi-finished products, production services of third-party enterprises;

4) fuel and energy for technological needs;

5) main wage production workers;

6) additional salary;

7) deductions for social needs;

8) expenses for the preparation and development of production;

9) expenses for the maintenance and operation of equipment;

10) shop expenses;

11) general factory;

12) losses from marriage;

13) other production expenses.

According to the degree of homogeneity, costs are single-element and complex. Single-element costs are those that at a given enterprise cannot be decomposed into components. Complex - consist of several economic elements. For example, workshops (general production), which include almost all elements.

To calculate the cost of a unit of production, according to the method of inclusion in the cost of a unit of production, the costs are divided into direct and indirect.

Direct - direct material, direct labor, i.e. those that are directly related to the finished product.

Direct material - the cost of basic materials that become part of finished products, their cost can be directly and economically attributed to a particular product.

Materials can be basic and auxiliary. Auxiliary - nails for furniture, bolts in cars, glue, etc. - indirect general production.

Direct labor - the cost of wages of the main production workers. These costs can be reduced by improving efficiency. The remaining labor costs that cannot be directly and economically attributed to a certain type of finished product are indirect. These are mechanics, inspectors and other auxiliary workers.

Indirect (general production) - cannot be directly attributed to the finished product, they are distributed among individual products according to the methodology chosen at the enterprise (in proportion to the basic wage, the number of machine hours worked, hours worked, etc.). They do not depend on the volume of production.

According to the connection of costs with the technological process, costs are basic and overhead.

The main ones are the costs of all types of resources (raw materials, materials, semi-finished products, depreciation of fixed production assets, wages of the main production workers) that are associated with the release of products. This is the most important part of the cost.

Overhead costs are divided into two groups:

Overhead general production - organization, maintenance and production management;

Overhead general economic - organization and management of the enterprise.

General production - 1) RSEO - depreciation of equipment and vehicles, current maintenance and repair of equipment, energy costs for equipment, services of auxiliary industries, wages of workers, wear and tear of the IBE, etc.; 2) general shop - production management, preparation and organization of production, depreciation of buildings, structures, production equipment, maintenance of the management apparatus of the production unit, etc.

General business - administrative management, expenses for technical, production management, expenses for the management of supply and procurement, financial and marketing activities; for the preparation, recruitment, selection, training of personnel, payment for the services of external organizations (auditing) repair of buildings, structures, inventory, taxes, fees, payments.

According to the sphere of occurrence, all costs are divided into production and non-production. The first group reflects the costs associated with the production of products, and the second - the costs generated in the process of implementation.

Cost classification for planning and decision making

One of the functions of cost management is cost planning. From the point of view of the degree of coverage by the plan, it is customary to divide costs into planned and unplanned.

Planned expenses form the basis of planned, normative and other calculations compiled in advance. These costs are due to the normal conditions of economic activity of the enterprise. There are no planned shortages and damage to raw materials, materials and other products during storage, losses from downtime and other costs caused by shortcomings in technology, organization, production management. Unplanned costs are reflected only in the actual cost estimate.