The financial system of each state includes a budget. This document is a very complex mechanism, the effect of which affects the standard of living of the country, its economy and the structure of the state system. The state budget and its structure should be balanced.
First you need to figure out what is a budget. This is a system that is enshrined in the constitution or legislation in the field of finance. Each country has its own state budget and its structure. It depends on the structure of the state and the economic situation.
The state budget and its structure may consist of several levels. In Russia, this system has its own characteristics. It is divided into the following levels.
1. The budget at the federal level and extra-budgetary funds of state significance.
2. The budgets of the constituent entities of Russia and its other territorial associations.
3. Local budgets. This includes municipal, city, and rural budgets.
From this it follows that the state budget and its structure are determined by economic relations within the state and beyond, as well as the structure of the state system.
The economic side of the budget system is made up of monetary relations, which depend on the principles of their formation, distribution and use.
Each country fixes the state budget and its structure at its discretion. Its principles may be stipulated in a constitution or a separate law of federal significance.
If we consider Russia, then the federal budget is the most important here. Followed by the budgets of territorial associations and local significance. The Russian budget system has a four-level construction. Such an organization is also characteristic of some other federal countries.
Countries that have a unitary structure of the state system usually use a two-tier budget system. It distinguishes between the state budget and local budgets.
Budgets with one level are currently very rare. They are inherent mainly in countries in which there is a monarchy, in whose hands the entire money circulation is located.
In Russia, a budget code has been developed, it stipulates all the principles by which the state budget and its structure are developed.
The federal budget includes a plan for the expenditure and receipt of funds for a fiscal year or a specific planning period. These funds are intended to fulfill obligations at the state level.
The budget of entities is a plan for the expenditure and receipt of funds necessary to fulfill their obligations.
The budget of municipalities and local governments consists of income and expenses that are intended to fulfill the obligations of these bodies of the Russian Federation.
Thus, the state budget is a special form of income and expenditure of funds, which includes all funds of the country, including federal, regional and local significance.
The subjects of regional and local self-government cannot use other organizational forms of financial planning of expenses and income, except for the budget.
There are extrabudgetary funds that are designed for special use and fulfillment of obligations. Such funds exist both at the federal level and at the level of other subjects of regional or local significance.
The budget is usually approved for the next fiscal year, which often coincides with the calendar year. It also covers the planning period, which includes two years following the financial year.
