Limits of budgetary obligations are Accounting for limits of budgetary obligations

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

The taxpayers' funds received by the state budget are further distributed according to targeted needs in favor of the population and society as a whole. How the process of providing budget allocations is organized, we will consider in the article below.

Classification of budget commitments

Limits on budget commitments are a certain amount of money allocated by government agencies to cover social benefits, as well as the cost of landscaping in the allotted period of time. In other words, those funds that the state is obliged to realize for the benefit of society.

Commitment caps are the aggregate component of treasury appropriations. And the latter are classified as follows:

• covering the social needs of the population;
• purchase of municipal goods and services;
• budgetary investments to non-state legal organizations;
• transfers from the intergovernmentalcharacter;
• providing assistance to representatives of international law in the form of charity;
• repayment of municipal debt;
• enforcement of judgments in which the state of the Russian Federation acts as a defendant regarding the moral or physical damage caused.

Mechanism for allocating budget commitments

Budget liability limits are a subject of state property, therefore the Treasury approaches the issue of their distribution in a comprehensive manner and with a high degree of responsibility.

To begin with, the needs are described by the highest body - the Ministry of Finance, after the data obtained are brought to the attention of the Treasury. Over the next three working days, the latter sends out notifications to local administrative bodies. The same scheme applies when the Treasury receives funds from the Ministry of Finance of the Russian Federation.

In the event that at the beginning of the new year the budget list was not drawn up for any reason, the supreme body brings information to the attention of the district centers using the above mechanism. At the same time, the data provided by the Ministry of Finance should contain a reference to the period for which the deferment or reduction of the limits of budget obligations will be carried out, after which the declared allocations will be withdrawn.

Budget blocking

Sometimes, at the stage of distribution of transfers, blocking is carried out by the federal treasury. Since the limits of budgetary obligations arethe indicator is multi-level, then both the Ministry of Finance and the lower executive body have the right to reduce them.

Allocations may be blocked if authorized representatives of the Treasury have doubts about the appropriateness of the allocated funds. Also, the limits of budgetary obligations can be reduced if in the current period there is a sharp decline in revenues to the state treasury from taxpayers. This decision can be made by any member of the executive branch - both the Minister of Finance and a representative from the local administrative district.

Also, the limits of budgetary obligations are annually blocked as planned on December 31 due to the end of the reporting period.

Functions of the Treasury

Since the federal treasury is the main manager of budgetary funds, we will dwell on its functionality in more detail. So, the powers of this body include the following:

1. Bringing information to the administrative authorities about the list of potential expenses and their limits.
2. Accounting for limits on budgetary obligations for cash execution
3. Opening bank accounts required for painting.
4. Maintaining a general administrative register.
5. Summary of budget spending statistics.
6. Providing all the necessary requested information to the Ministry of Finance regarding the expenditure of state obligations for the reporting period.
7. Forecasting future limits.
8. Permanent control over the execution of the federal budget by local administrative bodies.
9. Keeping a log of concluded state agreements, which involve funds from the treasury.
10. Protection of national secrets.

In general, we see that the federal treasury is a key body involved in the fulfillment of state financial obligations to the population.

The role of the Treasury in the Russian Federation

The chief manager of budgetary funds represented by the State Administration of the Federal Treasury was established in 1992 by decree of the President of the Russian Federation.

The organization has been functioning according to a number of principles for more than two decades:

• cash unity (in practice, means that any income and expenses go through officially registered bank accounts);
• subordination - each administrative body receives exactly as much funds from the treasury as provided by the limit;
• targeting, which means that each budget allocation has a clearly justified intended use;
• efficiency - the activities of the treasury are subject to constant financial controlling;
• transparency - all budget commitments are allocated and implemented in an open and public manner.

Commitment Report

Annually towards the endannual period, each recipient of government appropriations prepares a report on the use of budget funds.

After that, for a month and a half, the Accounts Chamber of the Russian Federation sums up the results of the past year and gives a conclusion: whether there was an excess of the limits of budget obligations or not.

The conclusion of the authorized body contains a functional classification of costs, a description of each earmarked appropriation, an analysis of the state of budget loans and credits, investments provided by the state, as well as obligations related to treasury guarantees.

Based on the results of the opinion received, the Government Duma of the Russian Federation considers it and decides whether to accept it or reject it, with subsequent amendments.