The concept of the budget, its essence. Budget item. State and local budget

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:45

Budget is a term that can be interpreted very broadly. But most often it is used when it comes to public affairs. What forms of budget are currently functioning in Russia? How similar are they to those found in world practice?

What is a budget

In a broad sense, the concept of the budget reflects any source containing a resource in the form of cash. But, as a rule, this term is used in the context, as we have already said, of public financing. And in this case, the concept of the budget may reflect not so much the source of something as the whole system within which cash flows are managed.

Public sector is often opposed to commercial. Why? This division, it must be said, is rather conditional. Both business and budget structures deal with financial flows, income, expenses, and sales. The entrepreneurial spirit of some officials (we speak without any subtext) will sometimes give odds to experienced businessmen. What is the fundamental difference? The main criterion that distinguishes business from budgetary structures is the purpose of establishing an economicactive subjects - enterprises, social institutions, management organizations. In the case of a business, this is profit in favor of the owner, who can then distribute it as he sees fit. If he wants, he will let him solve social problems, and if not, he will buy a yacht or a house on an island in the Mediterranean Sea.

If we talk about budgetary structures, then the purpose of their establishment is exclusively social tasks, as well as those related to the maintenance of state sovereignty as such, the implementation of the social contract concluded between the authorities and citizens. The state, when making money (by selling oil, levying taxes, etc.), does this in order to direct the proceeds to pay the salaries of teachers, doctors, security officials, and the military.

Thus, the financial budget of the state is a resource on the basis of which it actually functions. How does the government build a cash flow management system? Now we will study this aspect.

Fundamentals of state budget policy

Many countries of the world, including Russia, have a federal budget. It implies the financial system, which is under the jurisdiction of the highest authorities - the government, the president, the parliament. Depending on the structure of the political system, forms of government, budgets can also be regional, municipal (as in Russia) or have other localized options.

At each level of the budget, the relevant government institutions are working ongenerating income, as well as managing cash flows in terms of expenses. Perhaps "interbudgetary" interaction. Often it is expressed in mutual assistance between structures of different levels. For example, when subsidies, grants, subventions are sent from the federal budget in favor of regional or municipal ones, or loans are issued in an appropriate manner.

Structure of the Russian budget

Let's consider how the financial budget is arranged (in the sense that by this term we mean the formed system of cash flow management by the state) in Russia. The main legislative source regulating this area is the Budget Code. According to this legal act, the structure of the state financial system is built on four main levels: federal, regional, local and local (some experts combine the last two, but they are indicated separately in the law).

At the first level, financial flows are controlled, respectively, by the federal authorities. They also manage income and expenses within their competence. At the second stage, financial flows are managed by the authorities of the constituent entities of the Russian Federation - republics, territories, regions. On the third - municipalities (districts, urban settlements). On the fourth - local settlements (villages, villages).

There is a concept of "consolidated budget". It can be applied in two contexts. When it comes to the total sum of revenues and expenditures of financial systemsmunicipalities, their local settlements and the entire region, then a regional consolidated budget is formed. In turn, their totality for all subjects of the federation, as well as the volume of financial flows managed by the highest authorities, forms the consolidated budget of the Russian Federation.

Among the political institutions that perform a key linking function between financial management systems at different levels is the Federal Treasury. This executive body, both at the highest level and in the course of delegation of authority to the regions, performs the function of cash support for budget transfers, ensures the correct calculation of procedures related to the development of financing.

Center and regions

How do the powers of the budgetary authorities at different levels compare? Before studying this aspect in the Russian context, let us consider what models exist in the world within which such a distribution occurs. And there are two of them. In the scientific community, they are called decentralized and cooperative.

Regarding the first one, the federal budget plays the role mainly of the "second plan" in it. Regional authorities have a fairly large autonomy in the formation of their own capital management systems, collect the bulk of taxes (and in some cases have the right to establish their own). The federal center does not actively interfere in regional budgetary processes. The concept of the state budget in countries where a decentralized system is practiced (this is Japan, the USA), asas a rule, is associated with programs of a defense nature, financing of infrastructure projects of national importance. Regional and municipal government structures are responsible for financial support of local social tasks.

The main disadvantage of this system is that in the countries where it is applied, there is practically no so-called institution of "budget equalization", in which assistance is provided to those regions and local settlements experiencing income problems (usually from the federal center).

In the cooperative system, in turn, there is a noticeable centralization. The concept of the budget in those countries where it is used, as a rule, is associated with public capital at the level of the highest authorities. In such systems, in turn, "budget equalization" is developed. Thus, regional and local structures are much less concerned about the efficiency of revenue collection than under a decentralized system (moreover, the rules that include the national budget law may impose significant restrictions on this).

How to distribute powers?

In what cases does a state choose a decentralized model, and in what cases - a cooperative one? The first option, as a rule, is used in cases where the resource availability of the regions of the country is approximately the same or comparable. The authorities can be sure that taxes per capita are paid approximately the same, and citizens' incomes are also more or less equal. The cooperative model, on the other hand,is applied if the difference in the economic development of regions is noticeably pronounced. The current stage of Russia's economic development is more suitable for the application of this particular model.

But at the same time, the Russian budget law includes provisions that may indicate a fairly large independence of the regions regarding capital management policy. Let's consider this aspect in more detail.

Independence of budgets in Russia

Independence of budgets of various levels in the Russian Federation suggests that local authorities (in regions or municipalities) have a set of certain rights. And this is despite the fact that the concept of the budget in Russia is almost always associated with the highest bodies of state power. What is the expression of the independence of the regions and municipalities in question?

First of all, it is the right to manage the budget, financial reserves that local authorities have on their own. That is, the federal center has a limited resource for intervening in local decisions related to the financing of certain projects. Also, budget financing by regions and municipalities can be carried out at the expense of their own sources. And this is generally welcome. The ideal option is when a region or city can do without subsidies and subsidies.

Another important criterion for the independence of Russian budgets is the fact that they are adopted separately at each of the respective levels of political power. At the federal level, the government of the Russian Federation, the State Duma, the Federation Council are involved in this, andPresident of Russia. The regions have their own legislative and executive bodies, just like municipalities.

The next point, reflecting the independence of the levels of management of state cash flows, is the legislative consolidation of the right to levy certain taxes. Also, regions and municipalities are empowered to determine the revenue and expenditure items of the budget at their own discretion. Let's consider the aspect concerning both in a little more detail.

Revenues and expenditures of the budget

How do budgets at each level generate income? Basically, these are various kinds of taxes and fees. What kind of municipality, region or federal power structure will be collected is determined by the legislator. Taxes and the budget are areas that are strongly interconnected. Expenses, in turn, reflect the social orientation of the state's financial policy, which is transmitted to the level of regions and municipalities (as well as the need to maintain key political institutions). In Russia, they are associated with monetary support, mainly in such areas as:

education;
medical and welfare;
defense;
work of law enforcement agencies;
functioning institutions of power.

An important nuance: pension provision is formally referred to as extrabudgetary policy. The FIU and numerous NPFs have their own financial reserves.

The structure of spending, which is typical for the Russian budget system, may coincide with that in a number of other countries, but are not excludedoptions when there will also be plenty of differences. It all depends on what system of public financial management is practiced - decentralized or cooperative. In the first case, for example, such areas as medicine and education may not depend on the budget at all, they are private.

Fair budget: Russian scenario

Let's consider the most important, according to many experts, aspect of public financial management - the same "budget equalization". Through what mechanisms is it carried out in Russia? What kind of assistance can regions, municipalities count on if their main budget does not have sufficient revenues, and expenses remain relevant?

The main mechanisms in question will be as follows.

Local budgets receive a certain percentage (there are norms determined by laws) from those taxes that should be directed to higher levels of the state financial mechanism.
Grants from financial support funds - regional, district.
Subsidies, subventions and grants from state financial institutions of other levels.

Imaginary locality

Thus, the concept of a local budget can be quite arbitrary. It is not uncommon for a particular region, city or small settlement, due to objective factors of a socio-economic or political nature, to be predominantly subsidized. It may not contain local funds at all. But at the same time relativeThe local entity will still have independence in the distribution of budgetary funds - we described above what rights it has in this regard.

A variant is possible in which local budgets receive a targeted subsidy. For example, it can be financing of socially significant projects. In this case, it is important for the municipality, first of all, to guarantee the implementation of the relevant program in accordance with the standards adopted at the federal and regional levels.

Fair budget: world practice

Now consider the mechanisms by which "fiscal equalization" is carried out in other countries.

There is an option in which certain regions are given the right to conduct economic activities within the framework of specific economic regimes, under which, for example, there may be tax benefits. This kind of support is practiced in China, Australia, and some countries of the Pacific Region. The second mechanism is subsidizing the difference between expected income and real (normative) income. The third possible scenario is that the federal center supplies the regions with cash flows based on the estimated collection of income (in practice, the expected dynamics of tax payments and their predicted value).