Budget policy is a part of the financial policy pursued by the state. It determines the principles of organizing relations in the field of finance in the formation of budget revenues, the implementation of their expenses, and the conduct of inter-budget relations. This policy affects the proportions and sizes of financial resources centralized by the state, determines the cost structure and the prospects for the use of budget funds in order to develop the country's economy.
The budgetary policy of the state governs all relations in the field of finance that occur between enterprises and the state through the implementation of tax collections, in the course of investment policy, and budget planning in relation to priority sectors of activity.
The state purposefully affects the economy, changing the volume and structure of government spending, taxation and state property, which are the tools with which the budget policy is carried out. Its main parameters are reflected in the budget and act as a tool for managing public finances.
The goals of the budget policy for the fiscal year are spelled out in the Budget Message of the President to the Federal Assembly.
Budget policy is a strategic direction that determines the prospects for the formation and subsequent use of finance in order to solve the main problems of the economy. Therefore, there are three main areas of this policy:
- Allocation component. Means the need to adjust the market mechanism for regulating financial resources in the economy in order to increase market efficiency. For example, when collecting taxes, the state may limit the production of goods unclaimed on the foreign market and facilitate the production of such goods that have great advantages.
- Distribution component. It consists in changing the results of the distribution of income. Example: a fiscal policy on collecting taxes from the working population helps to pay benefits and pensions for the disabled.
- The stabilization component. It determines the effect on macroeconomic equilibrium, which is determined by the size of taxes, budget expenditures, the size of public debt and the general condition of the credit system.
It should be noted that the accounting policy of a budget organization plays a special role in the organization of budget accounting. At the enterprise, it is determined using the chart of accounts and existing requirements for the organization of budget accounting in this area.
Budget accounting (unlike a commercial organization) is much more complicated. Moreover, the level of control over the use of budget funds is much higher. What in this case will the accounting policy give? Allows you to consolidate existing accounting methods that are used from year to year.
The structure of the accounting policy includes organizational, methodological sections and applications with a working chart of accounts, a workflow schedule and a list of unified forms created by the organization on its own.
