Each state has its own budget. The definition of this term is familiar to most Russian citizens. In some cases, it is called the "main financial law" or "document" of the state. However, there are also regional and municipal budgets. Their functioning has features. What is the structure of the budget system of the Russian Federation? How is the "main" financial law of the state adopted?
Definition of the term
"Budget" is the "bag" in English. That is, a certain reserve, which today is most often understood as financial. It may be at the disposal of the state, any of its region, city, family, or individual. There is a budget for an organization that may not be related to the state. The term in question is universal. Each can have its own budget structure. Of course, this term, as a rule, sounds in relation to state affairs. How will its correct definition sound?
Among Russian experts, the following is common. A budget is a list of revenues and expenses compiled by the government of a country, region or city in relation to a specific time period, which is approved in accordance with the established legislative procedure. The calculation of revenue and expenses, as a rule, is the estimated one - reflecting the most probable scenario.
In the Russian economy, the role of the public sector is very significant. Some experts define it as a host. And therefore, changes in the external environment affecting budget revenues can be considered as negative factors in the development of the national economy of the Russian Federation and the growth of citizens' incomes.
Budget Levels in Russia
In Russian practice, there are several levels of budget preparation and execution - federal, regional, as well as local. In unitary states, the regional level may be absent. In those where the traditions of federalism are particularly strong, for example, in the USA, even municipal budgets can be subdivided into other formats.
There is an option in which the figures for each of their levels of the Russian budget add up. A common set of financial indicators is being formed. In this case, the consolidated budget of the country is obtained. It is used if you need to make a forecast or calculation of a macroeconomic nature.
Budget revenues and expenses
From what sources does the state, region or municipality earn? What are the main sources of budget? Taxes, excises, duties and other related charges are most often referred to income. They are sent to the treasury in an irrevocable order. Although in a number of cases the law provides for certain deductions of some kind, within the framework of which mechanisms that are relatively close in form to return payments from the budget are still involved.
Expenses include monetary funds, which, in accordance with the norms established by law, are used to finance tasks performed by state and municipal authorities. The interaction between the individual entities receiving these funds is called the budget system. Budget expenditures can be classified according to two main criteria. Firstly, this is their departmental affiliation. Expenses in this case are grouped based on the distribution of appropriations in relation to specific recipients. Secondly, economic classification is also possible. In this case, expenses are grouped based on their nature, industry focus.
Functions and value of the budget
We supplement the definition of the concept of "budget" with information about what basic functions it performs. Firstly, this is a fair redistribution of financial resources within the framework of national income. The fact is that different regions of the country, if we talk about Russia, have an uneven level of economic development. From where there is more revenue, help goes to where there is a need for financial support. Secondly, the budget stimulates the development of the national economy by providing citizens who work in government agencies with purchasing power. Thirdly, it ensures the development of key socially significant areas - education, medicine, the army.
Budget structure and levels
Consider the structure of the state budget. Above we called its functions. For their correct implementation, we need an appropriate system that solves the problems of redistributing funds and subsequent control over their use. Thus, the budget is a resource, as a rule, centralized, and providing for a hierarchy of subjects using it.
How is the distribution of powers for the development of the state financial resource? The main role here belongs to the Federal Treasury. How is the interaction between the center and the subject of the federation in the field of solving departmental tasks? The Federal Ministry is responsible for work in the field of education, which exercises control over structures of a lower rank. Similarly, in other departments - the Ministry of Health, the Ministry of Internal Affairs. The budget structure in terms of the distribution of funds between the federal center and the regions in Russia is similar to the government model. There are regional offices of the Federal Treasury. They are entrusted with the task of distribution and cash management of budgetary financial flows.
The budget of the region, thus, is mastered in the course of direct interaction of the authorities of the subject of the federation with the Treasury. At the same time, the legislation defines the channels through which the region itself can replenish its financial reserves. The budget of the region and other subjects of the federation can be replenished by regional taxes, as well as shares received from some varieties of federal fees.
The situation is somewhat different when it comes to the municipal level. The city budget and its management are largely remote from state competence. Municipalities are called upon to extract income for its replenishment on their own. The main resources for this are the sale of property owned by the city or region, as well as paid services provided by municipal institutions. In some cases, additional allocations from the state come to the level of the local budget. Also, the municipal treasury is replenished by taxes levied in accordance with legislation - directly, or as deductions from the Federal Tax Service structures stipulated by regulatory enactments. It is possible to replenish the city budget due to some types of state duties levied by banks, which are working on the territory of the municipality.
The budgets of municipalities, like their federal counterpart, may have a consolidated format. That is, to represent a set of relevant income and expenses that reflect individual settlements. The budgets of which, in turn, can be formed by settlements located on their territory. The development of these local financial documents can be carried out at the level of self-government bodies independently.
The task of municipalities is to ensure the necessary balance of local budgets, compliance with the requirements established at the level of federal law. This includes a policy in the field of solving problems with deficient execution of financial plans, debt obligations.
The main area of interaction between municipalities and state bodies in the field of budget policy is the reporting of the former with respect to the latter. In the order determined by the relevant legislative acts, municipalities send reports to the regional authorities on how the local budget has been implemented.
Deficit and surplus
A budget can be scarce, surplus, and balanced. In the first case, revenues for the same period are lower than expenses. In the second case, the opposite. In the third, equality is observed (with minimum permissible deviations). Among economists, many experts consider the deficit to be the norm (provided that it is not very large). In many cases, the planned budget is set up as follows by default. As a rule, in established, competitive economies, there is always something to make up for. With what?
Firstly, this is the issue of various kinds of securities (as a rule, these are government bonds). The investor buys them, in exchange for some kind of obligation (usually this is the payment of interest after some time), the state uses the funds received to compensate for the budget deficit. In Russia, such bonds also exist.
Secondly, it can be a budget loan. These are appropriations that can be obtained from regional and municipal financial reserves.
Thirdly, the Central Bank can help the budget by providing the necessary funds.
The above mechanisms for filling the deficit are internal. But there are also external resources. These include:
- sale of bonds on the international market;
- attracting loans from foreign private entities;
- loans from foreign governments;
Often, internal and external mechanisms are activated simultaneously. Many experts believe that the greater the credibility of the national economy with national and international lenders, the less concern the government may have about a budget deficit. Therefore, analysts believe, there is no particular reason to be surprised that many developed states, including the United States, have debt on government obligations equal to 100% of GDP and even more. This means that lenders trust the stability of the economies of those countries where they buy bonds. Although, there is an opposite point of view. For it, payments to the budget through loans cannot be endlessly secured. Sooner or later, the state will run out of resources to service external debts.
How is the Russian budget adopted
Having considered what a budget is, the definition of this term, we will study how it is adopted. On the example of mechanisms operating in Russia. First, how budgeting is done.
The procedure in question involves the determination of the necessary amount of funds that the state needs to finance the work of departments responsible for solving particular problems. The draft budget is being developed by the Ministry of Finance of Russia. As a rule, work on the budget of a certain year begins in January of the previous one.
First of all, the Ministry of Finance models various scenarios within which the country's economy can develop. If they are approved by the Government, then the department begins to study the sources of income and cost structure. It is important to have time to do this before July 15. After - the draft budget is again sent for consideration by the Government. He has a month to make suggestions for finalizing the document. After - the budget goes to the State Duma for consideration. This process takes place in several stages.
First, the draft budget is studied by the State Duma deputies themselves. The experts involved by the Budget Committee also participate. Following this, the document is sent to other structures of the State Duma, to the President and to the Accounts Chamber so that an opinion is given. After going through all these steps, budget approval begins.
Budget approval process
This process, as well as the preparation of the main financial document of the state, begins in the State Duma. In total, four readings should pass.
As part of the first, State Duma deputies discuss the concept of the budget, compare it with the forecast for the development of the country's economy, as well as with priorities in tax policy. We are studying the main characteristics of the document - sources of income, expenses, the presence or absence of deficit in the budget execution plans.
In the second reading, expenditure items are approved according to the established classification scheme. The size of the Support Fund of the subjects of the Russian Federation is determined. The term in which the State Duma needs to have time to consider the budget in the second reading, from the moment of its adoption in the first - 15 days.
In the framework of the third reading, specific articles on expenses are determined, as well as the departments responsible for the correct use of funds are recorded. The period in which the State Duma must meet the moment of adoption of the document in the second reading is 25 days.
The fourth reading includes consideration of possible amendments to the budget. We also study options with the distribution of revenue and costs quarterly.
Having passed all the stages of discussion in the State Duma, the draft budget is sent to the upper house of the Russian Parliament - the Federation Council. If the senators accept the document, it is transmitted for signature to the head of state. After - it acquires the status of Federal law. Starting next year, the provisions provided for in it begin to be implemented.
Budget execution
A budget is a law that must be correctly enforced. The department responsible for it is the Federal Treasury, accountable to the Government of the Russian Federation. Some experts emphasize the fact that in the course of budget execution, executive structures cannot make any amendments to the document. They must have the status of federal laws, which are also adopted with the participation of the State Duma, the Federation Council and the President. A budget is a document that by default assumes implementation in its original form. If there is a need to revise the expenditure items of the main financial document of the state (as a rule, in such cases we are talking about reducing them), then the sequestration procedure is implemented. In the Russian Federation, its peculiarity is such that, if the authorities adopt an appropriate resolution, then expenditures within the budget are reduced in all respects - every month from the moment the law on sequestration is passed until the end of the year.
They control how the budget is implemented, at the same time, both branches of government. If these are representative structures, then we are talking about parliamentary control. If these are departments accountable to the government, then the corresponding supervision is called administrative.
The functions of parliamentary control are assigned to the Accounts Chamber. This department has the authority to conduct inspections - in ministries, their subordinate structures, as well as in enterprises that may be involved in one way or another in budget execution. The Accounts Chamber is obliged to submit reports to the legislative structures on how the main state financial law is being implemented every quarter. Also, this parliamentary body gives conclusions on the report generated by the Government, which also relates to the implementation of the budget.
How are similar procedures implemented at the regional and municipal levels? In general, the procedures are similar to those carried out by federal authorities, subject to compliance with the Budget Code of the Russian Federation.
The greatest differences can be observed in procedures carried out at the municipal level. So, for example, in a number of cities and regions of Russia, the role of the mayor of the city is a leading one, somewhat similar to the position of the President in relation to other authorities. But there are municipalities where the post of head of administration is rather nominal. A more significant role is played by the local parliament.
The peculiarity of the approval and consideration of municipal budgets is that all facts relating to this process should be officially published. This applies to all stages of the work of local authorities. Starting from the decision that the budget is approved and ending with the report on the implementation of the main financial document of the municipality. Also, information to be published includes quarterly information on how the budget is implemented.
