Under the budget understand the scheme of income and expenditure of any subject (state, organization, family, person) for a certain period of time. The most common time interval is a year. This term is actively used in economics. The main directions of budget policy and tax policy coincide with their goals and objectives.
State budget
The state budget is the most important financial document of the country. It includes a set of estimates of various public services, departments, ongoing and planned programs, etc. The source of the state budget is the federal treasury.
Government work aimed at the formation, approval and execution of budget programs in Russia is called the budget process.
Russian budget
The Russian budget consists of the following levels:
- Federalbudget.
- Regional budgets of subjects of the Russian Federation.
- Municipal (local) budgets of municipalities.
The Federal Treasury is the body supervising the execution of the Russian budget.
The budget can be in surplus or deficit. In the first case, his total income is more significant than his expenses, and in the second - on the contrary.
Approval of the budget
At the initial stage, the Russian budget is developed by the Ministry of Finance. This stage is called budget planning. Further work on the draft law is being carried out by the Government of Russia. Further, it is considered by the State Duma, and the process takes place in 3 stages, which are called readings. The next body that considers the proposed budget is the Federation Council. At the last stage, it is signed by the president.
The adopted budget is calculated for the coming year and the next 2 years of the planning period. The beginning of the year is considered to be the first of January, but in some states it starts on a different date.
If the budget is not adopted by any of the authorities, a situation arises called a budget crisis.
What is fiscal policy
The budgetary policy of states is part of the financial policy. Its main goal is to ensure a balance of income and expenses and to designate a source of budget financing. It is one of the levers that can be applied by the state to mitigate this or that financialeconomic crisis.
Financial policy and budget policy (as one of its directions) serve the purpose of developing and strengthening the state economy. In turn, financial policy is one of the most important directions of the country's economic policy. Budget policy is closely linked to the choice of an economic model, in accordance with which the state intends to exist and develop.
Fiscal policy is a system of measures and actions taken by the authorities to manage the budget process, which is part of the overall economic policy. It is focused on the implementation of various functions of the budget to achieve the planned social and economic effect.
From the budget, you can get a lot of information about the main directions of budgetary and tax policy for the year, as well as for the next 2 planning years.
The budget policy has subjects and objects. Subjects are authorities that are in one way or another connected with the development and adoption, execution and control over the execution of the budget. Objects are certain articles of legislation and other legal regulations.
Principles of fiscal policy
The budget policy is implemented on the basis of the following principles:
- the principle of objectivity, when objective economic processes are taken as a basis;
- the principle of rigor, the obligatory execution of the budget;
- the principle of continuity - the construction of such a budget policy thatwould take into account the already existing experience gained in past periods;
- the principle of publicity, implying transparency and openness in the implementation of all stages of the budget process.
Main varieties of fiscal policy
Fiscal policy differs depending on the goals. The following varieties are distinguished:
- long-term (strategic), with a duration of 3 or more years, and tactical;
- According to the priorities, the budget policy is divided into: income type, expenditure, control and regulation and combined.
- according to the direction of the budget policy is divided into restraining and stimulating;
- according to the territorial principle, local, regional and federal politics are distinguished;
- according to the nature of specialization, investment, tax, social policy and other types are distinguished.
Main directions of budget policy
The directions of the budget policy coincide with its goals and objectives. The main directions of the budget policy of the Russian Federation:
- Ensuring the full functioning of the tax system.
- Optimization of income from the export of goods and raw materials.
- Work on the effective management of state. property.
- Improving the efficiency of budget spending.
- Improve the efficiency of budget planning and execution.
- Striving for a sustainable fiscal surplus.
- Increase the transparency of budget procedures.
- Streamlining budget procedures.
- Decrease dependence on global markets.
- Ensuring sustainable economic growth and improving the living standards of the population.
Thus, the budget and the main directions of budgetary policy are interconnected.
Fiscal policy options
The value of the so-called budgetary potential is important in the implementation of budgetary policy. It characterizes the possibility of accumulation of funds in the budget. Opportunities for state regulation of the economy and the implementation of other state functions depend on it. With the development of the financial and economic crisis, this potential decreases. This is largely due to poor tax collection.
Fiscal policy is seen as the core of the state's economic policy. With the right budget policy and a well-thought-out budget, investment opportunities and the quality of life of the population increase; the influence of the state on the world stage is increasing, labor productivity is growing.
The level of its predictability is also important. The federal budget must be stable and predictable in order to be a reliable guarantor of stability in the country. In Russia, it is customary to draw up a presidential budget message, which is a mandatory component in the preparation of the federal budget.
Taxes, spending, government loans, government purchases and transfers serve as instruments for implementing the main directions of fiscal policy.
The main disadvantage of the Russian economy
When implementing budgetary policy, it is desirable to make a long-term forecast, which is called a budget forecast. However, the country's dependence on fluctuations in the world energy markets makes such a forecast rather problematic. Now the country is in a state of systemic economic and social crisis, even despite the recovery in prices for exported raw materials. However, the impetus for its development was just a sharp drop in oil prices in 2014-2016.
Current social and economic crisis
Under the economic crisis is understood as a violation of stability and stability in the country. At the same time, the old ties in the economy and production are disrupted, which creates a general imbalance in economic processes. Previous crises were noted in the 1990s and in 2008-2009. However, the latter did not cause serious social problems, probably due to the short duration of the decline in commodity prices. The collapse of the Soviet Union was probably also a consequence of the fall in oil prices.
Additional causes of the current crisis could be the following:
- introduction of a package of sanctions against the Russian Federation from 2014 by Western states;
- deterioration of the situation in Ukraine and annexation of Crimea to Russia.
However, the initial reason for the development of the current crisis, probably, was the deviation of the economic policy of the state from the course that is beneficial for the country. Thus, until 2010 the country's budget was characterized by a surplus, butafter 2010, the surplus disappeared, despite the then favorable external economic background. At the same time, the growth of the country's GDP also stopped.
Expert forecasts for the end of the crisis in early 2017 and the improvement of the economic and social situation in the country have not yet been confirmed. Economists are calling for a change in the economic course, otherwise it is not known what the consequences for the economy and the country's budget could be in the event of a new collapse in oil prices.
Ways out of the crisis
To get out of this situation, the mechanism of budget policy can be applied, among other things. It is necessary to create incentives and favorable conditions for the introduction and development of new technologies, overcoming technological backwardness, increasing energy efficiency and labor productivity, developing knowledge-intensive industries and reducing domestic oil consumption in order to increase its exports. Combating unfair and unequal distribution of income is a prerequisite for economic recovery. After all, without this it is impossible to increase domestic demand for domestic products and improve the social situation of the population. Unfortunately, these vital problems for Russia have not yet been resolved, which creates gloomy prospects for the Russian economy and the country's budget. This negative process can be accelerated by the rapid depletion of oil reserves in Russia and the increase in the cost of its production, which are forecast for the 2020s and are partially observable now.
Conclusion
Thus, the main directions of the budgetary, tax andcustoms policy, their goals and objectives are aimed at improving the socio-economic situation in the country. Budget policy is largely reflected in the budget of the Russian Federation. The current crisis phenomena in the country testify to the need to reform the economy and change the structure of the budget.
