The federal budget is The law on the federal budget

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

Any social payments, reconstruction of institutions of a non-profit nature and many other activities of state importance are largely compensated by national we alth. Its formation and structuring is a difficult and time-consuming process, and we will try to understand it in this article.

The concept of the federal budget

The federal budget is the fundamental treasury of any state, which is a system of relationships based on imperative funds, which are an integral part of government funds. National financial we alth takes the main socio-economic functions of the country as the basis of its formation, from which the main directions of future income and expenses are distinguished.

In turn, the federal budget of the Russian Federation performs the most important functions in the life support of the state system:

• stimulates social policy;
• regulates economic processes within the country;
• takes part in the redistribution of GDP and national income;
• controls cash flow.

As we can see, this financial instrument has more than enough tasks, so the government approaches its formation and structuring thoroughly, which we will talk about later.

How the budget is adopted

We all understand that the federal budget is not just a money supply, it is a huge complex mechanism, and each of us is interested in what principles officials are guided by when adopting it.

As a rule, the treasury is approved in four hearings and includes the following series of procedures:

1. According to the statistics of key industries, the totals for the previous reporting period are estimated.
2. Next, the immediate prospects for the socio-economic development of the state are predicted.
3. The main points of the upcoming tax and budget policy are highlighted.
4. Based on the development plans for key areas, the consolidated budget and consolidated financial balance are forecast.
5. Next, federal programs for various purposes are predicted - target, investment and defense.
6. International agreements with any financial obligations are taken into account.
7. Federal budget accounts for other expenses are taken into account.
8. An upcoming external borrowing program is under consideration.
9. Proposals on the level of minimum indexation of social benefits are being considered.
10. Regulations suspendedthe financing of which is not provided for by the budget policy for the next year.

Required programs

The draft federal budget as a financial instrument also has a certain social responsibility to its people, so some mandatory programs still exist, but each of them is carefully checked for compliance.

There is a legally approved clear algorithm of actions for this:

• the government is provided with a justification for the project from a technical and economic point of view, since the state apparatus must be sure of the need to finance a particular procedure from the treasury;
• further, social and environmental consequences of the implementation of a certain program are predicted;
• guided by the current legislation, the government decides on the direct amount of funding for a particular project;
• other necessary documentation is being prepared.

Principles of formation of the federal budget

Any details relating to the formation and disposal of the state treasury are regulated by this regulatory legal act - the Federal Law on the Federal Budget. A clear prescribed algorithm of actions in the event of a particular situation is extremely important in today's unstable market relations. Since it would be strange and very inappropriate after the adoption of the structure of the treasury for the current year to dispose of funds for social benefits in favor ofstrengthening national defense.

Therefore, every disposal of public funds, even of an insignificant nature, is regulated by the current legislation and is based on the following principles:

• all receipts of financial flows are classified into groups and classes depending on economic and territorial predisposition - this means that some local budget revenues remain at the disposal of the district, and vice versa;
• when a deficit occurs due to excessive spending, the missing funds are covered, also starting from the structural component of this financial instrument.

In general, it is difficult to describe the mechanism of managing the state treasury in a few sentences, but then we will try to deal with this complex structure.

Structure of the federal budget

We all understand that a huge complex of cash flow cannot be managed only by higher executive authorities. The federal budget is a financial institution of incommensurable size, and in world practice there are several generally accepted structures for its regulation:

• banking;
• mixed;
• treasury.

Once in the Russian Federation, a banking structure was practiced, which allowed fixing the movement of financial flows at the level of making a payment and was regulated by the Central Bank. But such a system turned out to be imperfect due to untimely display of information, thereforeit was decided to move to treasury management.

Budget management

In addition to the principles of the order, the federal law on the federal budget also regulates all levels of management of this property.

Thus, at the first stage is the Main Department of the Federal Treasury, which balances all current income and expenses, as well as informing the executive authorities about this.

At the second level is the Department of the Treasury, which is directly subordinate to the district authorities. The functions of this institution are to inform higher authorities about income and execution of orders on expenses in their territory.

The third level of management includes local city and district treasuries that keep records of the movement of public funds in the allotted area.

Functions of the Central Treasury

All federal budget funds one way or another are accounted for by employees of the Central Treasury, which is entrusted with a number of important functions and tasks:

• distribution of budget revenues between different levels of government;
• accounting for any kind of payments, including tax payments, on government accounts;
• implementation of returns and offsets of excessively or erroneously transferred funds between treasuries of all levels;
• recalculation of planned indicators, taking into account various kinds of deferrals and benefits;
• setting restrictions on what orother funding;
• constant control of spending in order to effectively manage the state treasury;
• managing all financial flows in Treasury bank accounts.

Sources of income

Who forms the state treasury? Let's get to know the participants in this complex and ongoing process:

1. Taxpayers - make regular and systematic transfers, replenish local budget revenues.
2. The Central Bank, together with commercial ones, organizes the direct movement of public funds through the accounts.
3. The Federal Treasury with its structural divisions - keep records of received finances.
4. Executive bodies, including the state inspection, are intermediaries between payers of obligations and the treasury, regulate their relationship.

Thus, we can say that economic entities that have certain obligations to the country are extremely important and irreplaceable participants in this mechanism. But there are also non-tax budget revenues, which include fines, pen alties and other pen alties that have arisen in the course of relations with government agencies.

Sources of expenses

Expenditure federal budget is the result of settlement formations, which are fully dependent on the revenue side. The size of this sector of the state treasury is directly proportional to the socialeconomic needs of both the population and the country as a whole. Of course, this does not mean that they are fully satisfied; nevertheless, they are taken into account in annual planning. They are distributed according to the following principles:

• sectoral (formed on the needs of various departments and ministries);
• territorial (the area of participation of the subjects of the country, that is, the population);
• functional (costs are made in accordance with the declared targeted programs, which may include social, environmental, scientific and other issues).

All government spending decisions are taken directly by the Central Treasury and the Ministry of Finance.

Budget balance

The federal budget of the Russian Federation over the past decades has not been able to boast of its balance, which, in principle, is normal in world practice - it always exceeds something: either income or expenses.

Thus, in the 90s of the last century, the budget deficit was persistently observed, which means that the needs for the socio-economic regulation of the state were much greater than the receipts from taxpayers.

However, in recent years, the situation has changed exactly the opposite, and at the moment there is a steady surplus of the national treasury.

Federal budget regulation

Now the government has set the most important task - to increase economic efficiency against the backdrop of foreign policy, which means that in the first placethe structure of state financial reserves is regulated. Various principles of managing social funds are regulated by the Federal Law on the federal budget.

But we all understand that it is difficult to predict anything in such unstable market relations, which largely depend on international relations. Therefore, against the backdrop of recent events, a special Stabilization Fund was created, focused on supporting economic growth through a budget surplus.