It is necessary to distinguish the economic understanding of the budget from the legal understanding. We are primarily interested in the first of them.
From the point of view of economic practice federal budget- the most important element. It ensures the accumulation of financial resources and their redistribution.
Most of the effective demand is generated from budget funds. This is achieved by the fact that significant amounts of wages are paid from the budget, goods and services are purchased, and capital investments are made.
Budget parameters directly affect the most important macroeconomic indicators - investment and production volumes, employment levels, etc.
Thus, in its content, the federal budget is both an economic category and a political instrument.
In its form, the federal budget is the financial plan of the state, that is, a plan for the collection and use of financial resources in order to ensure state functions.
From a legal point of view, the federal budget is a normative act - a law. It is developed by executive authorities and adopted by legislative (or representative) authorities.
See also:Income The federal budget is divided into tax And non-tax. The balance of funds at the end of the previous year is credited to federal budget revenues.
Tax revenues of the federal budget are:Federal budget revenues can be transferred to the budgets of the constituent entities of the Federation and local budgets according to the standards established by the law on the federal budget for the next year.
The following expenses are financed from the federal budget:When forming budgets at all levels, the creation of reserve funds is provided. The reserve fund in the federal budget cannot exceed 3% of approved federal budget expenditures.
The size of reserve funds in the budgets of the constituent entities of the Russian Federation is established by the legislative authorities of the constituent entities of the Russian Federation when they are approved for the next financial year.
Reserve funds are used to finance unforeseen expenses, including emergency restoration work to eliminate the consequences of natural disasters and other emergencies.
The manner in which these funds are spent is determined by the government. In addition, the federal budget for the next financial year provides for the creation of a reserve fund for the President of the Russian Federation in the amount of no more than 1% of approved federal budget expenditures. The Budget Code of the Russian Federation establishes that funds from the reserve fund of the President of the Russian Federation are spent on financing unforeseen expenses, as well as additional expenses provided for by decrees of the President of the Russian Federation.
It is not allowed to spend funds from the reserve fund of the President of the Russian Federation on holding elections, referendums, or covering the activities of the President of the Russian Federation.
Data on federal budget revenues and expenditures for 1997-2003. are presented in table. 1. The federal budget had a significant deficit in 1997-2000. In 2001, an attempt was made to ensure a balanced budget. For 2003, a federal budget surplus of 72.2 billion rubles is planned.
The main expenditure items of the federal budget are:Drawing up a draft federal budget is the exclusive prerogative of the Russian government. It begins no later than 10 months before the start of the next financial year.
The draft federal budget is based on the following documents:1. The budget message of the President of the Russian Federation is sent to the Federal Assembly of the Russian Federation no later than March of the year preceding the next financial year. The budget message of the President of the Russian Federation formulates the budget policy for the next year. It is determined on the basis of priority tasks for the development of the economy and social sphere.
2. The forecast of socio-economic development is developed on the basis of statistical data for the last reporting period and trends in the development of the economy and social sphere for the planned year.
The initial macroeconomic indicators for drawing up the draft budget are: the volume of gross domestic product for the next financial year and its growth rate; inflation rate.
Thus, the parameters of the federal budget for 2003 are based on forecast indicators: GDP - 13050.0 billion rubles, inflation rate - 10-12% per year.
When developing a forecast of socio-economic development, the following methods are used:
3. The main directions of budget and tax policy for the next financial year are a document containing a plan of changes in budget and tax policy and, accordingly, in budget and tax legislation. In particular, this document may provide for changes in the rates of some taxes and the distribution of taxes between budgets.
4. The forecast of the consolidated financial balance is a forecast of income and expenses of all budgets across the territory of the Russian Federation. It is compiled on the basis of the balance sheet for the previous year and the forecast of socio-economic development for the future period. This balance reflects the total amount of financial resources available in the country and their distribution between the federal budget, the budgets of the constituent entities of the Federation and the budgets of local self-government. The consolidated financial balance allows decisions to be made about changes in the allocation of resources between budgets.
Of the listed documents, the long-term financial plan should be noted. It is compiled on the basis of a medium-term forecast of socio-economic development of the Russian Federation and contains data on the forecast capabilities of the budget for mobilizing revenues and financing basic expenses.
The long-term financial plan is not approved by law. It is being developed to inform legislative bodies about the expected medium-term trends in economic and social development. This plan is developed for three years, of which: the first year is the year for which the budget is drawn up; the next two years are the planning period.
The long-term financial plan is adjusted annually taking into account the indicators of the updated medium-term forecast of socio-economic development of the Russian Federation. It is compiled according to aggregated indicators of the budget classification.
Let us now turn directly to the budgeting process. The Budget Code of the Russian Federation distinguishes two stages of this process. For educational purposes, we will break them down into sub-steps.
The first stage is the development, based on the economic forecast plan, of the main characteristics of the federal budget project. This stage has the following substages:At the same time, the development of bills is being completed, the adoption of which must be taken into account in the draft budget. These include bills on the minimum wage and minimum pension;
The draft federal budget drawn up by the government of the Russian Federation is reviewed and approved by the State Duma.
The draft federal budget must be received by the State Duma no later than 24 hours on August 15 of the current year. At the same time, the draft budget is presented to the President of the Russian Federation for review.
The State Duma considers the draft law on the federal budget for the next financial year in the first reading within 30 days from the date of its submission.
First reading of the budget
When the State Duma considers the draft law on the federal budget in the first reading, its concept, the forecast for the socio-economic development of the country, the main directions of budget and tax policy for the next financial year, and the draft program of government external borrowings are discussed. At the first reading, the main characteristics of the federal budget are approved:
When approving in the first reading the main characteristics of the draft federal budget received from the government of the Russian Federation, the State Duma does not have the right to increase its revenues and deficit without the consent of the government of the Russian Federation.
If the draft law on the federal budget for the next year is rejected in the first reading, the State Duma has the powers to:
Based on the results of consideration of the draft law on the federal budget, a resolution of the State Duma is adopted to approve the draft federal law on the federal budget for the next financial year in the first reading.
Second reading
When the State Duma considers a draft law on the federal budget in the second reading, federal budget expenditures are approved by sections of the functional classification of budget expenditures of the Russian Federation within the total volume of federal budget expenditures approved in the first reading, as well as the total volume of the Federal Fund for Financial Support of the Subjects of the Russian Federation.
The Budget Committee develops and submits for consideration by the State Duma a draft resolution on the adoption of the draft law on the federal budget in the second reading
The State Duma considers the said bill in the second reading within 15 days from the date of its adoption in the first reading.
If the State Duma rejects the draft law on the federal budget for the next year in the second reading, it transfers the said bill to the conciliation commission.
Third reading
When the State Duma considers the draft law on the federal budget in the third reading, expenses are approved for subsections of the functional classification and the main managers of funds for all four levels of functional classification, and funds from the Federal Fund for Financial Support of the Subjects of the Russian Federation are distributed among the constituent entities of the Federation, the Federal Targeted Investment Program for the next year and the Program of government external borrowings of the Russian Federation for the next year.
The State Duma considers in the third reading the draft law on the budget for the next year within 25 days from the date of adoption of this bill in the second reading.
The total amount of allocations for each section of the functional classification, taking into account the adopted amendments, should not exceed the amount of expenses for the corresponding section, approved in the second reading of the draft law on the federal budget for the next year.
Fourth reading
The State Duma considers the draft law on the federal budget in the fourth reading within 15 days from the date of adoption of the said bill in the third reading.
When considered in the fourth reading, the federal budget bill is voted on as a whole. Amendments to it are not permitted.
The law on the federal budget for the next financial year adopted by the State Duma is submitted to the Federation Council for consideration within five days from the date of adoption. The Federation Council considers the law on the federal budget for the next year within 14 days from the date of submission by the State Duma. The Federation Council has the right to either adopt or reject the law on the federal budget. But he cannot make changes or additions to it.
If the law on the federal budget for the next financial year is rejected by the Federation Council, the specified federal law is transferred to the conciliation commission.
If the State Duma disagrees with the decision of the Federation Council, the law on the federal budget for the next year is considered adopted if at least two-thirds of the total number of deputies of the State Duma voted for it during the second vote.
If the President of the Russian Federation rejects the federal law on the budget for the next year, this law is transferred to the conciliation commission. This commission includes a representative of the President of the Russian Federation.
If the law on the federal budget is not adopted within the prescribed period, then the government of the Russian Federation has the right to carry out expenses next year, guided by the budget for the previous year, but in an amount not exceeding 1/12 of the previous allocations per month.
If the law on the federal budget is not adopted within 3 months of the new financial year, then the government of the Russian Federation continues to carry out current expenditures, but loses the right to:
In economic life, circumstances may arise that lead to violations of previously made forecasts of socio-economic development and, accordingly, the parameters of the adopted budget. Such circumstances can include both negative events within the country and sharp fluctuations in world market conditions. But other situations are possible when actual budget revenues significantly exceed planned ones.
In the event of a decrease in expected revenue receipts to the federal budget by more than 10% of annual assignments, the government of the Russian Federation is obliged to submit to the State Duma a draft law on amendments and additions to the law on the federal budget. At the same time, the following documents are submitted to the State Duma:
The State Duma must consider this bill extraordinary within 15 days in three readings.
If the draft federal law on amendments and additions to the law on the federal budget is not adopted within the prescribed period, the government of the Russian Federation has the right to a proportional reduction in federal budget expenditures until a legislative decision is made on this issue.
The reduction in budget expenditures was called sequestration. This is a fairly rare procedure and is used in exceptional cases.
In previous years, the concept of “protected budget items” was used. Expenditures on such items had to be financed as a matter of priority. They were not subject to sequestration.
An important grouping of budget expenditures is the functional classification, which reflects the directions in which budget funds are spent on the state performing its main functions.
Until 2005 in accordance with functional classification, all expenses of the federal budget of the Russian Federation included expenses for:
1) public administration and local self-government;
2) judicial power;
3) international activities;
4) national defense;
5) law enforcement activities and security state security;
6) fundamental research and promotion of scientific and technological progress;
7) industry, energy and construction;
8) agriculture and fishing;
9) protection of the natural environment and natural resources, hydrometeorology, cartography and geodesy;
10) transport, road management, communications, computer science;
11) development of market infrastructure;
12) prevention and liquidation of consequences of emergency situations and natural disasters;
13) education;
14) culture, art and cinematography;
15) mass media;
16) healthcare and physical education;
17) social policy;
18) servicing state and municipal debt;
19) replenishment of state stocks and reserves;
20) financial assistance to budgets of other levels;
21) recycling and liquidation of weapons, including implementation of international treaties;
22) mobilization preparation of the economy;
23) exploration and use of outer space;
24) military reform;
25) road maintenance;
26) other expenses;
27) target budget funds.
On the relationship between different types of expenses by area
functional classification is evidenced by the data in table. 2. Since 2005, the functional classification has undergone significant changes. Instead of twenty-seven sections, today the functional classification includes only 11. These are the following sections;
table 2 Structure of federal budget expenditures in 1998-2004, %
| No. | Expenses | 1 9 9 8 | 2000 | 2002 | 2003 | 2004 |
| 1. | State administration and local government | 2,4 | 3,0 | 2,9 | 2,8 | 2,9 |
| 2. | Judicial branch | 0,9 | 1,0 | 1,0 2,2 | 1,1 | 1,2 |
| 3. | International activity | 2,9 | 6,6 | 1,9 | 1,7 | |
| 4. | National Defense | 16,4 | 16,5 | 14,6 | 14,7 | 15,4 |
| 5. | Law enforcement and state security | 8,3 | 9,3 | 8,9 | 10,4 | 11,6 |
| 6. | Basic research and assistance to N T P | 2,2 | 1,9 | 1,5 | 1,7 | 1,7 |
| 7. | Industry, energy and construction | 5,5 | 2,3 | 3,0 | 2,7 | 2,5 |
| 8. | Agriculture and fishing | 2,4 | 1,3 | 1,4 | 1,3 | 1,1 |
| 9. | Protection of the environment and natural resources | 0,6 | 0,4 | 0,5 | 0,4 | 0,4 |
| 10. | Transport, road management, communications, computer science | 0,3 | 0,2 | 0,4 | 0,3 | 0,2 |
| 11. | Development of market infrastructure | 0,02 | - | 0,001 | 0,001 | - |
| 12. | Prevention and liquidation of consequences of emergencies and natural disasters | 1,8 | 1,1 | 0,4 | 0,9 | 0,9 |
| 13. | Education | 3,4 | 3,8 | 4,1 | 4,2 | 4,4 |
| 14. | Culture, art, cinematography | 0,7 | 0,5 | 0,5 | 0,5 | 0,6 |
| 15. | Mass media | 0,4 | 0,7 | 0,5 | 0,5 | 0,5 |
| 16. | Health and Physical Education | 1,9 | 1,9 | 1,6 | 1,7 | 1,8 |
| 17. | Social politics | 7,0 | 7,4 | 22,0 | 24,1 | 6,2 |
| 18. | Public debt servicing | 24,8 | 25,7 | 14,6 | 11,8 | 10,8 |
| 19. | Replenishment of government stocks and reserves | 1,3 | 0,02 | 0,03 | 0,9 | 0,8 |
| 20. | Financial assistance to budgets of other levels | 10,4 | 8,07 | 13,6 | 12,7 | 30,6 |
| 21. | Disposal and liquidation of weapons, including implementation of international treaties | 0,4 | 0,2 | 0,5 | 0,5 | 0,5 |
| 22. | Mobilization preparation of the economy | 0,2 | 0,01 | 0,02 | 0,02 | 0,1 |
1. National issues.
2. National defense.
3. National security and law enforcement.
4. National economy.
5. Housing and communal services.
6. Environmental protection.
7. Education.
S. Culture, cinematography and media;! mass media.
9. Healthcare and sports.
10.Social policy.
11. Interbudgetary transfers.
By section "National Issues" expenses for the functioning of the head of state - the President of the Russian Federation, the current official of a constituent entity of the Russian Federation and local government, legislative (representative) bodies of state power and local self-government are reflected. The Government of the Russian Federation, the highest executive bodies of the constituent entities of the Russian Federation, local administrations, the judicial system, financial, tax and customs authorities and supervisory authorities in these areas, elections and referendums, international relations and international cooperation, international economic and humanitarian assistance, maintenance and replenishment of the state material reserve, fundamental research, servicing state and municipal debt, reserve funds, applied scientific research in the field national issues and other national expenditures.
By section "National Defense" expenses for maintaining and supporting the activities of the Armed Forces of the Russian Federation are reflected in
in the field of land, sea, air, missile and space defence. This also includes expenses for mobilization and non-military training, mobilization preparation of the economy, preparation and participation of the Russian Federation in ensuring collective security and peacekeeping activities, implementation of nuclear weapons complex activities related to national defense, applied scientific research, as well as other issues in this area.
Chapter "National Security and Law Enforcement" includes expenses for maintaining and supporting the activities of internal affairs bodies, the prosecutor's office, justice, security, border service, authorities for control of the circulation of narcotic drugs and psychotropic substances, as well as internal troops, and the penal system. This section also reflects expenses for the prevention and response to emergency situations and natural disasters, civil defense, migration policy, applied scientific research in the field of national security and law enforcement.
By section "National economy" expenses are reflected for the maintenance and support of the activities of ministries, services, agencies that carry out leadership and management in the sphere of the national economy, including: industry and energy, compliance with competition laws in commodity markets and in the financial services market, technical regulation and metrology, regulation of natural monopolies , regulation in the field of environmental management, environmental protection and environmental safety, environmental, technological and nuclear supervision.
This section reflects the costs of developing construction standards and monitoring their compliance, as well as costs associated with technical regulation and metrology. It also takes into account the costs of maintaining and supporting the activities of the Federal Service for Labor and Employment and the implementation of state policy in the field of employment. Costs for supporting individual industries are also taken into account - the fuel and energy complex, agriculture, forestry, water resources, transport, communications and computer science (subsidizing interest rates, supporting industries, etc.).
Chapter "Department of Housing and Utilities" includes expenses for maintaining and ensuring the activities of institutions that carry out
related to leadership and management V areas of housing and communal services and urban planning, as well as the costs of managing services in specified field, applied scientific research. This reflects the costs of construction and reconstruction of residential buildings, provision of subsidies to citizens for the purchase of housing and subsidies to facilitate the expansion, improvement or maintenance of the housing stock. This section also reflects expenses related to issues of communal development and the provision of public services: such as maintaining and restoring the proper technical and sanitary-hygienic condition of buildings, structures, equipment, communications (development, reconstruction and replacement of utility networks) and housing and communal services facilities purposes (street lighting, sanitary cleaning facilities, green spaces, etc.).
By section "Environmental protection" expenses for wastewater treatment, waste collection and disposal, protection of plant and animal species and their habitats, and atmospheric air purification are reflected.
Chapter "Education" reflects the direction of expenses for the purposeful process of education and training. This reflects: expenses for preschool education of young children age and maintenance of preschool educational institutions; expenses for primary general, basic general, secondary (complete) general education; expenses for initial vocational training in secondary specialized educational institutions, special vocational schools, interschool training centers, training and production workshops; expenses for education in educational institutions of secondary vocational education; expenses for higher professional education; expenses for professional retraining and advanced training, as well as for youth policy and the organization of a health campaign for children.
By section "Culture, cinematography, media" expenses are reflected for the provision of services in this area, the maintenance of cultural institutions, the management of objects intended for cultural purposes, the organization, holding or support of cultural events, state support and subsidies for the production of films, radio and television broadcasting, publishing, as well as the provision of grants, subsidies to support individual artists, writers 192
lei, artists, composers or organizations involved in cultural activities.
This section provides for the allocation and financing of cultural objects that are particularly significant for the state, such as, for example, the Russian State Library; State Hermitage Museum; State Russian Museum; State Museum of Fine Arts named after A.S. Pushkin; Museum of Science and Industry; Novgorod State United Museum-Reserve; State Academic Bolshoi Theater of Russia; State Academic Mariinsky Theater; State Film Fund of the Russian Federation; State Kremlin Palace, etc.
Expenses for "Healthcare and Sports" provide for state expenses for the maintenance and operation of institutions that provide leadership and management in the healthcare sector, the current maintenance of healthcare institutions, including the provision of medical services by them, the costs of providing services to individuals, centralized purchases of medicines and medical equipment, and the implementation of activities related to the organization of treatment citizens of the Russian Federation abroad, the current maintenance of institutions providing state sanitary and epidemiological supervision, activities in the field of sanitary and epidemiological supervision, as well as expenses of the budgets of constituent entities of the Russian Federation for compulsory medical insurance of the non-working population.
This section also reflects the costs of maintaining and supporting the activities of institutions providing leadership and management in the field of sports, providing services for organizing sports and physical education, managing facilities intended for active sports or sports events, participation in Russian and international sports events , as well as the costs of providing subsidies to support teams or individual participants in competitions.
By section "Social politics" expenses for pension provision associated with the payment of old-age pensions, pensions for military personnel, state and municipal employees, judges, lifelong maintenance of judges, including an allowance of 50% of the monthly lifetime maintenance are reflected. This section also reflects expenses associated with the organization of social services for the population, the functioning of
7 - 4222 Thoughts
establishing social service institutions and organizations (boarding homes for the disabled, medical and sanitary expert commissions, etc.), providing social support measures in the form of benefits in cash and in the form of benefits for dependents in the event of loss of a breadwinner, as well as social support measures related providing disabled people with technical means of rehabilitation, including the manufacture and repair of prosthetic and orthopedic products.
This section also reflects expenses associated with social insurance of the population, including all types of benefits and insurance payments provided by the Federal Social Insurance Fund, providing social protection in the form of: cash benefits to persons who are able to work, are ready to work, but cannot find a suitable job; child benefits for citizens with children; benefits to citizens in the event of post-vaccination complications; car insurance compensation for disabled people and others. It also takes into account the costs of combating homelessness, guardianship and trusteeship.
The section “Interbudgetary transfers” reflects the costs of paying transfers, other forms of financial assistance, grants, subventions and subsidies to government bodies at various levels. This section reflects expenses associated with the formation within the federal budget of the Federal Fund for Financial Support of the Subjects of the Russian Federation, the Compensation Fund, the Fund for Co-financing Social Expenditures, the Regional Development Fund, as well as other forms of support for budgets at other levels, including targeted ones of a current nature. It also reflects expenses incurred at the expense of the federal budget by transferring funds to the Social Insurance Fund of the Russian Federation and the Pension Fund of the Russian Federation for the payment of benefits and cash payments, as well as the Federal Compulsory Medical Insurance Fund for the implementation of social support measures for certain categories of citizens in the provision of medicines and compulsory health insurance for the non-working population, including children.
Federal budgets for 2005 and 2006 compiled in accordance with the new sections of the functional classification of budget expenditures (Table 3).
Analysis of the relationship between sections of the functional classification is of great importance in determining the intentions and preferences of the government for the next financial year. Yes, from
Table 3
Distribution of federal budget expenditures by sections
functional classification of budget expenditures of the Russian Federation
for 2005-2006,%"
| Name | 2005 | 2006 |
| Total | 100,0 | 100,0 |
| National issues | 16,0 | 15,2 |
| National Defense | 17,3 | 15,6 |
| National Security and Law Enforcement | 13,2 | 12,7 |
| National economy | 7,7 | 7,9 |
| Department of Housing and Utilities | 0,25 | 0,7 |
| Environmental protection | 0,15 | 0,1 |
| Education | 5,1 | 4,8 |
| Culture, cinema and media | 1,2 | 1,2 |
| Healthcare and sports | 2,7 | 3,4 |
| Social politics | 5,6 | 4,9 |
| Interbudgetary transfers | 30,8 | 33,5 |
1 Calculated according to the Federal Laws on the Federal Budget for 2005 and 2006.
table 2 shows that the bulk of federal budget expenditures today are directed to financing national issues, national defense and law enforcement. In total, these expenses for 2006 will amount to 43.5% of the expenses of the federal budget of the Russian Federation.
The largest item of federal budget expenditure is interbudgetary transfers. In 2006, they will amount to almost 1,500 billion rubles in absolute terms. This is largely due to the fact that currently most of the revenues are concentrated in the federal budget, which are then redistributed between levels of the budget system.
Defense spending is the second largest item in the federal budget. In 2006, these expenses will amount to almost 670 billion rubles. Of course, this is much less than our state spent on military needs under the USSR. At that time, arms expenditures ranged from 25 to 30% of GDP. However, if we compare this article with others - support for individual sectors of the economy, including social sectors, then it significantly surpasses them.
The third place is occupied by expenditures on national issues - about 650 billion rubles in 2006. A significant amount
expenses under this section are largely explained by the fact that in the new budget classification, expenses for national needs include expenses for servicing the public debt - approximately "/ of the total expenses for this section.
I would like to note that the cost of servicing the public debt has occupied a significant place in the structure of federal budget expenditures in recent years (Table 2). Thus, expenses for servicing public debt in 2001 amounted to 20.1% of expenses of the federal budget of the Russian Federation. In 2002 they were 14.6%. In 2005, the share of federal budget expenditures was 8.3%. Although the share of expenditures on servicing the public debt is decreasing, its share in federal budget expenditures still remains significant, especially if we compare the level of these expenditures with expenditures on education, health care, and science.
State expenditures to support certain sectors of the national economy - industry, construction, agriculture, transport, etc. - are stable, but relatively low. In 2006, these expenditures will amount to only 340 billion rubles.
Education costs are also low. Over the past years, they have accounted for no more than 4-5% of federal budget expenditures. Healthcare costs are significantly lower - no more than 2-3%.
The share of expenditures on basic research is also small - only 1.5% of federal budget expenditures. This is a very small figure, and it is constantly falling. Thus, if in 1991 state expenditures on fundamental research amounted to 1.03% of GDP, which amounted to 3.87% of federal budget expenditures, then in 1993 it was already 0.69% of GDP. In 2001, the share of spending on science in GDP was only 0.2%, which is many times lower than the critical level estimated at 3% of GDP. It is believed that when the level of government spending on science is less than 3% of GDP, scientific and technical potential is destroyed. Such expenditures on science do not actually allow for deep fundamental research, which could in the very near future bring the country to the forefront of scientific and technological progress.
However, it should be noted that in 2002 expenses under the item “Social Policy” increased significantly. If in 2001 expenses under this item amounted to only 9% of federal expenses
budget, then in 2002 - 22% (see Table 1). Currently, the share of spending on social policy is about 5%. A fairly high share of expenditures on social policy is due to the fact that this section takes into account the expenditures of state social extra-budgetary funds - the Pension Fund of the Russian Federation, the Social Insurance Fund, etc.
Determining priority areas for spending budget funds is a very important and responsible activity of the state. Unfortunately, in Russia there are still a number of negative aspects in the area of spending budget funds. This is low efficiency in the use of budget funds; widespread practice of misappropriation of budget funds; insufficient funds allocated to address social issues; low share of public investment in the national economy, which reduces the possibility of quickly stabilizing the financial situation in the country.
The main tasks in the field of improving the process of spending budget funds in Russia are:
1) ensuring priority financing of social expenditures;
2) expansion of public financing of investments in priority areas of the economy;
3) reduction of expenses for individual targeted expenditure items and targeted programs;
4) reduction of subsidies to cover losses of certain industries;
5) concentration of budget expenditures on the most effective costs;
6) reducing costs for maintaining the state apparatus and servicing the public debt;
7) increasing the efficiency of using budget funds
funds for national defense on the basis of gradual
conducting military reform;
8) strengthening control over the use of budget funds.
Traditional: financing of direct organizations.
Target:
Allocation of funds for the implementation of budget programs and cultural events;
Support for cultural figures (state, gubernatorial, etc. scholarships, prizes);
2-1 Actual expenditures on culture, art and cinematography from the federal budget in 1993-1998. were below plan.
Support for creative projects in the field of culture and art
^resident, gubernatorial, etc. grants) 25.
9 7.5. Forms of financial interaction between cultural management bodies at various levels.
Abroad.
Subsidy call- a higher body develops a program that affects the interests of a number of territories, and partially undertakes its financing, so that the rest is reimbursed by interested participants.
Reimbursement subsidies- a program developed by a lower level body is partially financed from the budget of a higher level.
Counter subsidies-centralized funds are allocated only in response to subsidies from the local budget or sponsorship funds.
In Russian federation.
Equity financing- in relation to those projects that correspond to established priorities and are justified by detailed financial calculations.
Seed funding- in relation to those projects that correspond to established priorities, but have an increased risk during implementation, or cannot be justified by detailed financial calculations, and subsequent financing of which is possible based on the results of the completed stages of work.
Guardianship financing- in relation to those projects that are innovative in nature and require special support.
9.2. Financing of cultural organizations. 9.2.1. Stages of changing the financing system.
Until the end of the 80s of the XX century In the cultural sphere, three types of organizations were distinguished according to the method of financing:
fully financed from the budget(libraries, television) were financed according to estimates in accordance with the budget classifier of cost items;
25 Since 1997, in accordance with the decree of the President of the Russian Federation “On measures to strengthen state support for culture and art of the Russian Federation,” 100 grants from the President of the Russian Federation have been allocated to support creative projects of national importance in the field of culture and art. In addition, special forfeits are provided to support certain types of art. Since 2003, seven forfeits have been established by the President of the Russian Federation to support creative projects of leading musical groups and organizations operating in the field of musical art. Since 2005, seven forfeits have been established to support creative projects of leading professional groups of folk musical and choreographic art.Since 2006, Twelve grants in the field of theatrical art have been established to support the most famous and oldest drama theaters (6) and theatrical educational institutions (5).
- self-sustaining(circuses) - reimbursed their expenses and generated profit;
- subsidized(all other cultural organizations) - received a subsidy to cover the difference between income and expenses.
Since the late 80s of the XX century during the transition of cultural organizations to new business conditions, the foundations are laid multi-channel financing system. Organizations are given the right to attract extrabudgetary funds through the provision of paid services and receipt of voluntary contributions from enterprises and individual citizens. Budget funds are allocated as a single amount and are interpreted as a special type of income of cultural organizations, due to the social usefulness of the results of their activities. Funds coming from other sources are not grounds for reducing budget allocations. Funds not used by the organization cannot be withdrawn or counted toward the next year’s funding. Organizations are independent in spending financial resources within the framework of a voluntarily chosen income distribution model.
Attempts to improve the methods and mechanisms of financing budgetary cultural institutions by introducing "results-based budgeting (RBB)". The concept of budgetary budgeting is based on the principle of financing not the existing costs of budgetary institutions, but the state or municipal social order (task), determined by the priorities of the relevant cultural policy.
PB as an alternative to estimated (cost-based) financing. The use of budgetary budgeting in many countries of the world as a tool for rationalizing and increasing the efficiency of using budget expenditures.
9.2.2. Channels and sources of financing of state and municipal institutions in Russia 26.Funding channels:
Direct budget financing;
Indirect budget financing;
Extrabudgetary funds.
A) Direct budget financing:
- capital investments(investments) - funds for new construction, reconstruction of buildings, technical re-equipment;
- budget (current) allocations- budget funds allocated according to estimates for the maintenance of budgetary institutions and maintenance
"" Ignatieva E. L. Financing of cultural institutions in modern economic conditions // Directory of the head of a cultural institution. 2002. No. 0. P. 8-15 (see Appendix I).
statutory activities in accordance with the approved budget IMI yu In the absence of financial cost standards, the principles for determining the amount of budget allocations are established. onV, the corresponding limits of budget obligations are adjusted. National funds are used exclusively through personal accounts of financial institutions, which are maintained by the relevant authorities
treasury;
- special-purpose financing- budget funds provided-
1e on a competitive basis for the implementation of cultural projects for additional
crimes concluded with state authorities and local governments. The main form of targeted budget financing is financing by programs and projects.
B) Indirect budget financing.
Tax benefits.
Benefits provided to cultural institutions for paying taxes at the federal level.
The rights of state authorities of the constituent entities of the Federation and local governments to provide additional tax benefits to cultural institutions:
Exemption from federal taxes to the extent that
goes to regional and local budgets;
Exemption from regional and local taxes.
State policy to reduce tax benefits.
Other financial benefits:
Securing property under the right of operational management, in
in some cases - transfer for free use or
reductions in rental rates;
Preferential tariffs for utilities.
B) Extrabudgetary funds:
Income received from activities: provision of paid services, use of property, etc.;
Loans (see clause 9.2.4.);
Charitable donations, sponsorship contributions, grants from charitable foundations, etc. (see clause 9.3.)
Inconsistency of the norms of the current legislation regarding income received from business activities. In Article 47 of the “Fundamentals”, the income of cultural organizations was divided into income from the main (paid) types of cultural activities and income from business activities. Since 2004, this wording has been removed. For tax purposes in the Tax Code of the Russian Federation, all income received by state and municipal institutions from conducting activities is treated as income from business activities. And, finally
Nets, in the Budget Code of the Russian Federation these incomes are considered as non-tax income d 0. progress of the respective budgets.
9.2.3. The main sources of income for private non-profit and commercial cultural organizations.
To the main sources of income generation private non-profit organizations relate:
Regular and one-time receipts from the founders (participants, members);
Voluntary property contributions and donations;
Revenue from the sale of goods, works, services and property rights;
Dividends (income, interest) received on shares, bonds, other securities and deposits;
Income received from the property of organizations;
Targeted funding from budgets of different levels;
Other receipts not prohibited by law.
Narrower range of possible funding sources commercial cultural organizations. A high share of income from activities in the total income of commercial organizations.
Sources of financing for cultural projects do not differ from similar sources of financing for cultural organizations.
9.2.4. Loans: forms, area and prospects for use.
According to the form of provision can be distinguished:
Bank loan - issuing a loan at a certain interest rate
for a specified period;
Material credit (leasing) - provision of lease of expensive equipment for a long or medium term;
Supplier credit - transfer of goods (work, services) before the actual transfer of funds and (or) other forms of payment based on concluded contracts;
- “uncivilized credit” - untimely payment by cultural organizations for utilities and other services, goods and work.
The predominance at the present stage of “uncivilized credit with the almost complete absence of bank and material credit.
A budgetary institution does not have the right to receive credits (loans) from credit organizations, other legal entities, individuals, from the budgets of the budgetary system of the Russian Federation (Article 161 of the Budget Code of the Russian Federation).
Prospects for the development of leasing in the cultural sector.
expenses are recognized as justified and documented
actual costs (in some cases, losses) incurred by the organization.
Justified expenses should be understood as socially and (or) economically justified expenses.
Documented expenses mean payments confirmed by documents drawn up in accordance with the legislation of the Russian Federation (Article 252 of the Tax Code of the Russian Federation).
Expenses, depending on their nature, as well as the conditions for implementation and areas of activity of organizations, are divided into expenses associated with production and sales, and non-operating
In the Russian Federation, a special mechanism for spending budget funds is provided for budgetary institutions. In accordance with Art. 70 of the Budget Code of the Russian Federation, they spend budget funds exclusively on:
Payment of labor in accordance with concluded employment contracts and legal acts regulating the amount of wages of relevant categories of employees;
Transfer of insurance contributions to state extra-budgetary funds;
Transfers to the population paid in accordance with federal laws, laws of constituent entities of the Russian Federation and legal acts of local governments;
Travel and other compensation payments to employees in accordance with the legislation of the Russian Federation;
Payment for goods, works and services under concluded state or municipal contracts;
Payment for goods, works and services in accordance with approved estimates without concluding state or municipal contracts.
Expenditure of budgetary funds by budgetary institutions for other purposes is not permitted.
The distribution of expenses among the relevant items and sub-items is carried out in accordance with the budget classification of the Russian Federation and the Instructions on the procedure for its application, approved by the Ministry of Finance of the Russian Federation.
Modern technologies for financing organizations
(pg> R USE of cultural organizations of technology fundraising ■ Raising financial resources).
Broad and narrow interpretation of fundraising. Fundraising in the narrow sense of the word is the attraction of financial resources from extra-budgetary sources. Fundraising in the broad sense of the word is raising funds from all possible channels and sources of financing. The broad interpretation of fundraising is due to the specifics of non-profit cultural organizations in our country, integrated into the state (municipal) sector 2? .
Fundraising as financial support for social partnership in the implementation of cultural projects.
The role of business plans in attracting additional financial resources to cultural organizations.
9.3. Charity, patronage and sponsorship in culture. 9.3.1. Sponsorship.
Sponsorship- making a contribution by a legal or individual (sponsor) (in the form of providing property, results of intellectual activity, provision of services, carrying out work) into the activities of another legal or individual (sponsored) on the terms of the sponsored’s distributing advertising about the sponsor, his goods.Sponsorship contribution is recognized as payment for advertising, and the sponsor And sponsored accordingly by the advertiser And advertising distributor 2.
Charity.
Charity- activities for the disinterested (free of charge or on preferential basis) transfer of property to citizens or legal entities, including funds, disinterested performance of work, provision of services, provision of
other support.
Main features of charitable activities:
Voluntariness;
Selflessness (and selflessness means support not only free of charge, but also on a preferential basis);
27 Ignatieva E. Fundraising in Russia: State and prospects // AL-manager-
2002. No. 2. pp. 7-11. Currently, there are two transcriptions of the word "Gashk1ga151P#
The author adheres to the European pronunciation of “fundraising”, which was reflected
information on the pages of this textbook. Using the transcription "fand"
"rising" in this article reflects the position of the editors of the "Agt-Manager" magazine.
29 Federal Law of the Russian Federation “On charitable activities and charitable organizations.
Art. 1.2.
Focus on social priority goals.
The use of volunteer labor as a form of charity in culture.
Volunteer (volunteer)- a person who works on his own initiative without appropriate monetary remuneration, that is, free of charge.
The feasibility of developing a special program for recruiting
(recruitment) and working with volunteers.
Patronage as a type of charitable activity in the field of culture, science, and education.
Legislative acts of the Russian Federation do not contain the concepts of “philanthropist” and “philanthropic activity”, although in practice the term “patronage” is used. Currently, the Russian Ministry of Culture has prepared a concept for a draft federal law, which proposes to specifically highlight “philanthropy” as a cultural category and enshrine it in the law “On Charitable Activities and Charitable Organizations.”
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
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Introduction
federal spending budget financing
The leading, determining role in the formation and development of the economic structure of any modern society is played by government regulation. One of the most important mechanisms that allows the state to carry out economic and social regulation is the financial mechanism, the main link of which is the budget. It is through the financial system that the state forms centralized funds and influences the formation of decentralized funds of funds, ensuring the ability to perform the functions assigned to state bodies.
The basis of the financial base of the Russian Federation is the federal budget. Sustainable development of the economy of a federal state is impossible without the availability of sources of financing for the implementation of programs and projects.
Thanks to the budget, the state has the opportunity to concentrate financial resources on critical areas of economic and social development, practically use the budget as an instrument of state regulation of the economy, and stimulate production and social processes. There is no doubt that federal budget expenditures play one of the leading roles in state regulation of the economy.
The size and structure of federal budget expenditures are influenced by many factors, such as: government structure, foreign and domestic policies of the state, the general level of the economy, the level of well-being of the population, the size of the public sector in the economy and many other factors.
This course work is devoted to the consideration of the federal budget, in particular the composition and structure of its expenses, and its role in the system of financial plans.
Based on the above, we can determine the objectives of this work:
Consider the budget as an economic category, that is, give its definition, essence and highlight the main functions performed by the budget;
Expand the concept of the composition and structure of expenditure items of the federal budget of the Russian Federation;
Show its role in the system of financial plans of the country;
The theoretical basis of the course work was the work of such scientists as Neshita A.S., Drobozina A., Polyak G.B. and others, also regulations, the Budget Code of the Russian Federation, periodicals.
1. Socio-economic essence and functions of the federal budget
In any country, the state budget is the leading link in the financial system. It combines the main income and expenses of the state. The budget is the unity of the main financial categories (taxes, government credit, government spending) in their action, i.e. Through the budget, resources are constantly mobilized and spent.
The state budget is the main financial plan of the state for the current year, which has the force of law. The budget is approved by the legislative body - the Federal Assembly.
The Russian federal budget is the main link in the budget system. It expresses economic monetary relations that mediate the process of formation and use of a centralized fund of state funds, and is developed and approved by the Federal Assembly of the Russian Federation in the form of a federal law. Through this budget, funds from enterprises of various forms of ownership and partly the income of the population are mobilized. They are used to finance the national economy, social and cultural events, strengthening the country's defense capability, maintaining government bodies, financial support for the budgets of the constituent entities of the Federation, repaying public debt, creating state material and financial reserves, etc.
The centralization of funds has important economic and political significance, since the mobilized revenues serve as one of the main tools for implementing the measures planned by the state. This makes it possible to maneuver resources, concentrate them on critical areas of economic and social development, and implement a unified economic and financial policy on the territory of the country.
The main functions of the budget are:
1. redistribution of national income and GDP;
2. government regulation and stimulation of the economy;
3. financial support for social policy;
4. control over the formation and use of a centralized fund of funds.
The federal budget is the main instrument for the redistribution of national income and GDP. The budget is widely used for intersectoral and territorial redistribution of financial resources, taking into account the requirements for the most rational placement of productive forces, economic and cultural growth throughout Russia, including republics, territories, and regions.
In modern conditions, the highest priorities are the agro-industrial, fuel and energy, military-industrial complexes and transport. The budget contributes to the formation of a rational structure of social production, improvement of proportions, and more efficient use of public funds.
Through expenses and taxes, the budget acts as an important tool for regulating and stimulating the economy and investment, and increasing production efficiency. State support is provided to advanced sectors of the economy - aircraft manufacturing, space programs, the nuclear industry, power engineering and some others. Such support is also associated with the implementation of highly effective and quick-payback projects. To regulate the economy, tax policy should be actively used through the application of an appropriate tax mechanism.
The social orientation of budget funds is of great importance. In social policy, the priorities are support for the least protected segments of the population (pensioners, disabled people, students, low-income families), as well as the functioning of healthcare, educational and cultural institutions.
The budget has the greatest impact on economic sectors and non-production institutions in the process of financial planning. Being the main financial plan for the formation and use of the state fund of funds, the budget is associated with all enterprises and organizations.
The state budget performs the function of the organizer of distribution processes. Although not all net income created at enterprises of various forms of ownership in the sphere of material production is redistributed through the budget, it affects the size of savings and the determination of the optimal structure of income according to the financial plans of enterprises and sectors of the economy.
In the process of budget planning and budget execution, control is exercised over the financial and economic activities of the national economy. The control function of the budget involves creating conditions for control. The control function makes it possible for the state to effectively influence all economic processes.
2. Federal budget expenditures
Federal budget expenditures are funds allocated to fulfill the expenditure obligations of the Russian Federation and to provide financial support for the tasks and functions of the state.
In practice, federal budget expenditures are funds allocated from the federal budget to finance expenses of a national nature provided for in the law on the federal budget for the corresponding financial year.
They express economic relations associated with the distribution and redistribution of national income used for national purposes.
Federal budget expenditures are classified:
1. according to the economic role in the reproduction process - on costs associated with the financing of material production and the maintenance of the non-productive sphere;
2. by functional purpose - for the costs of maintaining the management apparatus, financing the national economy, socio-cultural events, national defense, law enforcement, fundamental research, etc.
Depending on their economic content, budget expenditures are divided into current expenditures and capital expenditures.
Capital expenditures of the budget are the part of budget expenditures that ensure innovation and investment activities.
This includes items of expenditure intended for investments (capital investments) for the reproduction of fixed assets and their overhaul.
Current budget expenditures are part of the budget expenditures that ensure the current functioning of government bodies, budgetary institutions that rely on budgetary funding from the federal budget, the provision of state support to other budgets and individual sectors of the economy in the form of subsidies, subsidies and subventions for current financing.
The formation of federal budget expenditures is carried out in accordance with the expenditure obligations of the Russian Federation, stipulated by the delimitation of powers of public authorities established by the legislation of the Russian Federation.
Expenditure obligations of the Russian Federation arise as a result of:
Adoption of federal laws and (or) regulatory legal acts of the President of the Russian Federation and the Government of the Russian Federation in the exercise by federal government bodies of powers on subjects of jurisdiction of the Russian Federation and (or) powers on subjects of joint jurisdiction not covered by Federal Law of October 6, 1999 No. 184-FZ “On the general principles of organization of legislative (representative) and executive bodies of state power of the constituent entities of the Russian Federation” to the powers of government bodies of the constituent entities of the Russian Federation;
Conclusion by the Russian Federation or on behalf of the Russian Federation of treaties (agreements) in the exercise by federal government bodies of powers on subjects of jurisdiction of the Russian Federation and (or) powers on subjects of joint jurisdiction not covered by the Federal Law “On General Principles of the Organization of Legislative (Representative) and Executive Bodies state authorities of the constituent entities of the Russian Federation" to the powers of state authorities of the constituent entities of the Russian Federation;
Adoption of federal laws and (or) regulatory legal acts of the President of the Russian Federation and the Government of the Russian Federation, providing for the provision of interbudgetary transfers from the federal budget in the forms and manner provided for by the Budget Code, including:
* subventions to the budgets of the constituent entities of the Russian Federation for the fulfillment of expenditure obligations of the constituent entities of the Russian Federation in connection with the exercise by public authorities of the constituent entities of the Russian Federation of powers subject to financial provision through subventions from the federal budget;
* subventions to local budgets for the fulfillment of expenditure obligations of municipalities in connection with the vesting of local governments with certain state powers of the Russian Federation.
In accordance with the functions of the state, the following functional types of expenses are financed exclusively from the federal budget:
1) ensuring the activities of the President of the Russian Federation, the Federal Assembly of the Russian Federation, the Accounts Chamber of the Russian Federation, the Central Election Commission of the Russian Federation, federal executive bodies and their territorial bodies, other expenses for general government administration according to the list determined upon approval of the federal law on the federal budget for the next financial year;
2) functioning of the federal judicial system;
3) carrying out international activities in the general federal interests (financial support for the implementation of interstate agreements and agreements with international financial organizations, international cultural, scientific and information cooperation of federal executive authorities, contributions of the Russian Federation to international organizations, other expenses in the field of international cooperation);
4) national defense and ensuring state security, carrying out the conversion of the defense industry;
5) fundamental research and promotion of scientific and technological progress;
6) state support for railway, air and sea transport;
7) state support for nuclear energy;
8) liquidation of consequences of emergency situations and natural disasters on a federal scale;
9) exploration and use of outer space;
11) formation of federal property;
12) servicing and repayment of the government debt of the Russian Federation;
13) compensation to state extra-budgetary funds for expenses on the payment of state pensions and benefits, other social benefits subject to financing in accordance with the legislation of the Russian Federation from the federal budget;
14) replenishment of state reserves of precious metals and precious stones, state material reserve;
15) holding elections and referendums of the Russian Federation;
16) federal investment program;
17) ensuring the implementation of decisions of federal government bodies that led to an increase in budget expenditures or a decrease in budget revenues of budgets of other levels;
18) ensuring the implementation of certain state powers transferred to other levels of government;
19) financial support for constituent entities of the Russian Federation;
20) official statistical records;
21) other expenses.
In addition, in accordance with the legislation of the Russian Federation, federal budget funds are used jointly with funds from the budgets of the constituent entities of the Federation and the budgets of municipalities to finance the following functional types of expenses:
1. state support for economic sectors (with the exception of nuclear energy), construction and the construction industry, agriculture, road transport, river transport, communications and road infrastructure, subways;
2. ensuring law enforcement activities;
3. ensuring fire safety;
4. research, development and design and survey work that ensures scientific and technological progress;
5. ensuring social protection of the population;
6. ensuring environmental protection, protection and reproduction of natural resources, ensuring hydrometeorological activities;
7. ensuring the prevention and mitigation of the consequences of emergency situations and natural disasters on an interregional scale;
8. development of market infrastructure;
9. ensuring the development of federal and national relations;
10. ensuring the activities of election commissions of the constituent entities of the Russian Federation in accordance with the legislation of the Russian Federation;
11. ensuring the activities of the media;
12. financial assistance to other budgets;
13. other expenses that are jointly managed by the Russian Federation, constituent entities of the Russian Federation and municipalities.
3. Composition and structure of expenses
State support for certain sectors of the national economy
One of the main tasks of the state is to create and maintain a favorable business climate through effective regulation, creating appropriate conditions for economic development, as well as protecting and supporting domestic producers.
In recent years, expenditures on the fuel and energy complex, development of water resources, communications and information technology, as well as transport have grown at the fastest rates. These funds are used, first of all, to finance measures for the development of relevant sectors of the economy, including the fuel and energy complex, space research, agriculture, territories and infrastructure, etc.
According to estimates, in 2010, mineral production increased by 2.2%, and this growth was due to both favorable external conditions and increased domestic demand. Despite this, in recent years there has been a steady decline in the rate of production growth. To maintain the profitability of mining, it is necessary to constantly replenish the mineral resource base from newly explored deposits. For these purposes, 18.1 billion rubles were allocated in the 2010 federal budget alone.
Today's growth rates of electricity consumption significantly exceed those envisaged in the Russian Energy Strategy for the period up to 2020. This is largely due to the growth of industrial production and electricity consumption by the population of large cities.
In order to prevent economic growth from being hampered by a shortage of energy consumption, the generating capacity of power plants should be significantly increased.
In solving this problem, great hopes are placed on nuclear energy. In 2010, 18 billion rubles were allocated for these purposes.
The development of the Russian economy is impossible without the creation of an effective transport system. Taking into account the current situation, accelerated modernization and ramification of the transport system are necessary. That is why budget expenditures for these purposes are increasing. In 2010, 181.6 billion rubles were allocated from the federal budget for the development of the transport system. Most of these funds are allocated to the development of road transport: the formation of a federal network of roads, reducing their overload, reducing the proportion of roads that do not meet regulatory requirements.
The budget, in addition to expenditures on federal roads, provides for expenditures on the development of the road network within large cities. In 2011, 35 billion rubles were spent from the federal budget. for subsidies related to the construction of highways to budgets of other levels.
The budget also includes provisions for modernizing the aircraft fleet to bring them into line with international standards. The amount of funding for activities related to this goal from the federal budget in 2010 amounted to 10.3 billion rubles.
7.3 billion rubles for the development of maritime transport. These funds are used to maintain the competitiveness of the merchant fleet and seaports. The provided support measures will contribute to an increase in the congestion of seaports by almost 2 times by 2011 compared to 2002, and to the growth of the Russian merchant fleet, both in the number of vessels and in their total tonnage.
10.8 billion rubles are allocated for the development of railway transport, which is aimed at measures to update and modernize fixed assets, increase the investment attractiveness of railway transport, and improve the quality of service.
In recent years, state support for rural areas has intensified, which is expressed both in an increase in spending on promoting agriculture and in the adoption of targeted federal programs and national projects for Russian rural areas. One of the priority areas for supporting and developing agriculture is the conservation and restoration of soils and agricultural lands. Another priority area of activity to support agriculture is solving the problem of deteriorating social development in rural areas, improving the living conditions of rural residents, increasing the availability of quality education, healthcare and social services. It is planned to allocate 65.5 billion rubles from the federal budget for the implementation of these plans in 2009-2011.
Financing socio-cultural events
Health care costs
The Constitution of the Russian Federation guarantees the rights of citizens to protect their health, therefore the task of the state is to ensure that every citizen receives high-quality medical care. The state finances the development of healthcare from the federal budget, the budgets of the constituent entities of the Russian Federation and local budgets, as well as through the compulsory health insurance (CHI) system created in Russia in 1991.
The main expenditures on health care fall on regional budgets and extra-budgetary funds, including compulsory medical insurance, with the share of the latter increasing annually. The share of federal budget expenditures on healthcare in 2009-2010 was no more than 10.3%. In 2006, the President of the Russian Federation initiated the implementation of the priority project “Health,” which provided for additional funding from the federal budget, which made it possible to increase the share of its funds in the total funding to 13%.
In 2009-2011, healthcare was one of the priorities of state policy, which was reflected in an increase in the share of healthcare costs in total federal budget expenditures, which more than doubled during this period: from 6.1% in 2009 to 11.5 % in 2010 year.
In 2011, 15.4 billion rubles were allocated within the project. from the federal budget for the purchase of about 23,000 units of equipment for municipal clinics and hospitals.
One of the important tasks of the state is the fight against diseases of a socially significant nature. 35.1 billion rubles will be allocated from the federal budget to finance this program. if in previous periods of its implementation (2008-2009) 18-19% of the total funds were allocated from the federal budget, now it is planned to spend about 45%.
Federal budget expenditures on the Federal Targeted Program “Prevention and Control of Socially Significant Diseases”, billion rubles.
Solving the demographic problem is also one of the priority areas of state policy. In 2010, an additional 32.3 billion rubles were allocated to solve this problem. Taking into account the costs of maternal basic capital, the federal budget obligations for the demographic project amount to about 165 billion rubles. annually.
Education expenses
Article 43 of the Constitution of the Russian Federation enshrines the right of every citizen to education in state and municipal institutions. Education is financed from the budgets of all levels of the budget system.
The federal budget mainly funds higher professional education and scientific research in the educational field. In 2010, spending on education increased by 31% and amounted to 278.5 billion rubles.
In addition, since 2009, part of the federal budget funds within the framework of the priority national project “Education” has been additionally allocated for transfers to regional budgets, mainly to support school education.
Pension expenses
In Russia in 2009 there were about 38.5 million pensioners, which is more than 27% of the population. In other words, the welfare of a quarter of the country's population directly depends on the pension system. The increase in budget spending on pensions in 2010 was approximately 16.6%, the same as in 2009. In 2010, 1,725 billion rubles were allocated from the Russian Pension Fund for the payment of pensions. At the same time, 959.7 billion rubles were allocated from the federal budget to finance pension payments.
In addition, another 146.6 billion rubles. allocated for pensions to military personnel and members of their families, as well as persons equal to them in terms of pension provision.
The need to finance part of the expenses of the Pension Fund of the Russian Federation from the federal budget is due to the fact that deductions from the wage fund do not cover the Fund’s needs for paying pensions, which, in turn, is due to the low number of employees per pensioner.
Expenditures on science
Basic scientific research has a significant impact on the economic development of the country, so the state should act as the main investor in this area, supporting advanced scientific schools, providing scientific institutions with new personnel and technical base, as well as creating favorable conditions for private business investment in science.
Government funding for science is about 60%, and this share has remained relatively stable for several years.
In 2010, federal budget expenditures on fundamental and applied scientific research amounted to 246 billion rubles, which is 27.1% more than in the previous year.
Most of the appropriations for applied scientific research are directed mainly to research in the fields of defense and national economics. In 2010, these areas together accounted for 90% of all spending on applied scientific research. In terms of the share of government spending on defense research in total spending on research and development, Russia is firmly one of the first in the world.
Expenditures on culture
The main expenses for culture are borne by the budgets of the constituent entities of the Russian Federation. Financial support for cinematography and scientific research in the field of culture, cinematography and media comes largely from the federal budget.
In 2010, federal budget expenditures on culture, cinematography and the media amounted to 65.2 billion rubles, which is 27% more than in 2009.
The cultural budget consists of two elements. These are current expenses and the federal target program “Culture of Russia”.
Current expenses finance enterprises and cultural institutions - state theaters, concert and exhibition halls, museums, libraries, as well as educational institutions in the cultural system and relevant scientific organizations.
The federal target program “Culture of Russia (2006-2010)” is aimed at solving specific problems in the field of culture and achieving certain results.
In 2009, 11.9 billion rubles were allocated from the federal budget for the preservation of cultural and historical heritage, which is 16.1% more than in the previous year. In 2006-2010, a complex of repair and restoration work should be carried out on 300 cultural heritage sites of federal significance in 70 regions of the country.
State investment in culture means investing in “human capital,” which is one of the most important factors in a country’s competitiveness in modern society; therefore, the tasks of reproducing the country’s creative potential by preserving and developing the domestic art education system and supporting artists and young talents are of particular importance.
For these purposes, the federal budget for 2010 allocated 21.8 billion rubles, which is 26.8% more than in 2009.
Expenditures on national defense and national security
National defense is the main and most significant component of state security (along with law enforcement and prevention and response to emergencies and natural disasters). Over the past years, about 15% of the country's budget expenditures (2.6-2.8% of GDP) have been spent on national defense, which indicates their stability.
The parameters of expenditures on national defense included in the budgets of recent years reflect the country’s consistently pursued policy of strengthening its defense capability. In general, the budgets of recent years have made it possible to stabilize the financing situation for the Armed Forces and move from maintaining the viability of the army at a minimum level to a development model.
In 2010, compared to 2009, the level of unit costs per serviceman increased by more than 20%, which, taking into account ongoing combat and operational training activities, contributed to an increase in the training of military personnel and the degree of coherence of formations and military units. Budget allocations for national defense have been growing steadily over recent years. As a result, there is a widespread belief about the exorbitant increase in national defense spending, which in turn has given rise to the myth of the country’s “militaristic budget.”
However, with an overall increase in federal budget expenditures of 22.6% in 2010, national defense expenditures increased by only 15.1%, which indicates a slower rate of growth compared to other sections of the federal budget.
One of the reasons for the current increase in spending on national defense is the chronic underfunding and exclusion from the list of priority areas for the development and provision of state support of both the national defense sector and the provision of state defense orders, observed in recent decades. The main items of expenditure for the Ministry of Defense of the Russian Federation have always been, first of all, the cost of weapons, personnel support, the organization of combat training and logistics, which in total amount to about 75% of all costs.
The most significant federal budget expenditures on national defense, billion rubles.
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Expenditure |
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Military personnel |
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Civilian personnel |
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Food supply |
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Logistics support |
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Combat training |
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Federal Target Program “Transition to recruiting military personnel serving under contract for a number of formations and military units for 2004-2007” |
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Presidential program “Destruction of chemical weapons stockpiles of the Russian Federation” |
In 2010, 841 billion rubles were allocated from the budget for the needs of the Ministry of Defense, and every year more and more funds go specifically to the development of the Armed Forces, and not to their maintenance.
A significant amount of state spending on the national security of the country in general and on the protection of individual citizens in particular is a forced but necessary measure. Protecting the interests of the country and protecting Russians is the direct responsibility of the state.
Expenditures on national security and law enforcement in 2010 amounted to 10.5% of the consolidated budget of the Russian Federation, and 77% of these funds were spent from the federal budget, amounting to 550.2 billion rubles. This is almost 12.8% of all federal budget expenditures. Per one Russian citizen, these expenses amounted to almost 5 thousand rubles. in year.
This money goes to fight crime and terrorism, to prevent and eliminate the consequences of emergencies and natural disasters, and to combat drug trafficking.
The dynamics of expenditures on national security and law enforcement activities is characterized by a stable increase in expenditures in absolute terms and a slight change in the structure in terms of an increase in the share of expenditures on preventing and eliminating the consequences of emergencies and natural disasters, the share of expenditures on combating drug trafficking, primarily due to the allocation budget allocations at the level of consolidated budgets of the constituent entities of the Russian Federation.
The total amount of expenses for the prevention and detection of crimes, control over compliance with law and order in 2010 increased by 2.14 times compared to 2009, and by 2011 will increase by 2 times.
The most significant federal budget expenditures on national security and law enforcement, billion rubles.
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Expenditure |
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Prosecutor's office |
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Internal Affairs Bodies |
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Internal troops |
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Justice authorities |
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Penal system |
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Security authorities |
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Border service authorities |
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Bodies for control over the circulation of narcotic drugs and psychotropic substances |
Expenditures on international activities and public debt
Expenses for international activities include expenses for non-trade operations (maintenance of Russian institutions and representative offices abroad, payment of membership fees to international organizations, etc.). Financing costs in the field of international activities covers international cooperation, implementation of international treaties, cultural, scientific and information relations. One of the sources of financing the budget deficit is government borrowing of the Russian Federation and constituent entities of the Russian Federation and municipalities.
Government borrowings are loans and credits attracted from individuals and legal entities, foreign states, international financial organizations, for which debt obligations of the Russian Federation arise, or a constituent entity of the Russian Federation as a borrower and guarantor of repayment of loans (credits) by other borrowers.
High energy prices and continued economic growth have allowed the budget to run a surplus, which eliminates the need for external borrowing to finance government activities and carry out reforms.
High incomes received from the export of energy resources allow both the creation of financial reserves and the repayment of debt accumulated over the years of reforms. Early repayment allows, firstly, to save on debt servicing, and secondly, to reduce dependence on the state of the global economy. According to the Ministry of Finance, the total savings of federal budget funds on interest payments to the Paris Club of creditors alone for the period until 2020 will exceed $12 billion. The saved payments are planned to be directed to investment activities.
In the 90s of the last century and the beginning of this century, the debts of the former USSR played a significant role in the structure of Russia’s external debt.
Today, the debts of the former USSR are mainly either repaid or converted into Eurobonds (securities that are government debt obligations denominated in a currency other than the currency of the issuing country. The advantage of Eurobonds is their free circulation on the financial market, which removes the issuer’s dependence on creditor bank or financial institution).
Domestic borrowing occurs mainly through the issuance of federal loan bonds (OFZ) with different yields and maturities. These bonds are freely traded on the financial market, making the government independent of the decisions of individual creditors. Debt servicing costs include all payments associated with the debt, excluding principal repayments. This includes: interest and other payments that do not reduce the amount of debt. According to estimates, in 2010 the cost of servicing state and municipal debt amounted to about 163 billion rubles, which is 40 billion less than in 09.
Financial support for regions
Natural features and prevailing economic realities determine the uneven distribution of production and resource potential across the country, which leads to a huge gap in the levels of budgetary provision of the regions.
The leveling of budgetary security levels is carried out by the state with the help of interbudgetary transfers, which are sent to all regions in the form of grants, subsidies or subventions. In 2010, interbudgetary transfers from the federal budget amounted to 787.9 billion rubles.
The bulk of financial assistance to the regions is provided from funds formed as part of the federal budget: the Fund for Financial Support of the Subjects of the Russian Federation, the Fund for Co-financing of Social Expenditures, the Regional Development Fund, the Fund for Reforming Regional and Municipal Finance, and the Compensation Fund.
The main one in terms of its importance and volume of funds provided is the Federal Fund for Financial Support of the Subjects of the Russian Federation (FFSR). FFPR funds ensure the equalization of budgetary security and the creation of equal conditions for the constituent entities of the Russian Federation in terms of the implementation of basic social guarantees. The amount of subsidies from the FFSR depends on the tax potential of the regions (potential tax capabilities of the territory), climatic, socio-economic, demographic and other characteristics that affect the cost of providing budget services.
In 2007, the Federal Regional Development Fund was formed as part of the federal budget in the amount of 6.39 billion rubles, which is approximately 2.4 times higher than the level of previous years. Subsidies from the fund are provided to subjects of the Russian Federation that have a level of provision with social and engineering infrastructure below the Russian average, about 69 regions.
The Fund for Co-financing Social Expenditures was established to assist regions in financing, on a shared basis, priority social expenses: social protection of labor veterans, home front workers, people affected by political repression, payments of child benefits and targeted housing subsidies to the population.
To implement competitively selected budget reform programs in the regions, the Regional and Municipal Finance Reform Fund was created. It finances the winning programs of the competition, which include obligations in the field of the budget process and management of budget services, the introduction of advanced budgeting methods and administrative reform, reform of the state and municipal sectors of the economy and the housing and communal services sector, and improvement of the investment system.
The Compensation Fund occupies a special place in the system of financial support for regions. Funds from this fund are placed at the disposal of regions and local governments for the implementation of federal powers, for example: to pay for housing and communal services to certain categories of citizens - veterans, disabled people, citizens exposed to radiation as a result of the disaster at the Chernobyl nuclear power plant and other disasters; to provide social support measures for persons awarded the “Honorary Donor” badge; providing housing for veterans and disabled people; for the implementation of the state employment policy. In 2010, the Compensation Fund will amount to 158.15 billion rubles.
The existing system of interbudgetary relations is often criticized on two grounds: due to excessive centralization of revenues at the federal level and unreasonable distribution of subsidies. At a time when many regions and municipalities are experiencing serious financial difficulties in performing their functions, the federal center is forming its budget with a surplus.
There is also no doubt that the method of distributing subsidies from the Fund for Financial Support of Subjects of the Russian Federation lays out the wrong system of incentives, since it does not motivate regions to expand their own revenue base.
However, it must be recognized that, to a large extent, these problems are due to the extremely uneven distribution of income potential between the constituent entities of the Russian Federation, which does not allow us to abandon the high share of income withdrawal from relatively rich regions with subsequent redistribution in favor of the relatively poor. In this regard, the revision of the administrative-territorial division of Russia with the aim, among other things, of reducing the number of heavily subsidized subjects of the Russian Federation is the initial prerequisite for a qualitative improvement in interbudgetary relations.
Management costs
Management costs include the following expense groups:
To conduct elections and referendums. Includes all costs for elections of deputies to the State Duma, the President, people's judges and holding referendums;
Other expenses that fall under other sections of budget expenditures.
The presence of specific management activities of the state and its performance of economic and organizational functions give rise to federal budget expenditures on management. These expenses are the material and financial basis for the activities of government bodies that manage the economy. This item of government spending is the most controversial, because management costs are characterized by a constant increase, on the one hand, and a lack of criteria for assessing their effectiveness, on the other.
Federal budget expenses for management include maintenance costs:
· legislative bodies;
· government of the country;
· legislative bodies and governments of the constituent entities of the federation;
· local authorities and management;
· law enforcement agencies;
· judicial bodies and prosecutor's office.
Budgetary management costs are part of the general management fund, which is also formed in a decentralized manner by including management costs in the cost of products, works or services of enterprises and organizations. However, in fact, management costs significantly exceed budgetary allocations due to the involvement of various extra-budgetary funds, including funds of political parties. These funds are also used to create research centers, parallel management and security structures, etc.
Any state needs to improve its organizational form of management of the economic and social sphere, and the Russian government, realizing the importance of this management function, implements measures aimed at reducing the cost of the management apparatus, which must constantly be improved. It is clear that this kind of activity also has fiscal significance: by reducing management costs, money is saved that could be additionally used to finance the national economy and the social sphere.
This roughly corresponds to similar shares of expenditures in the budgets of countries such as Japan, the USA, Germany and France (on average 13-15%). Recently, this share of budget expenditures has been decreasing everywhere, for example, due to the redistribution of budget funds in favor of priority, socially significant initiatives.
The most significant items of expenditure on national issues in the federal budget in 2009-2010, billion rubles.
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Expenditure |
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Expenses, total |
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National issues |
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Judicial system |
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Ensuring the activities of financial, tax customs and supervisory authorities |
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International relations and international cooperation |
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State material reserve |
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Basic Research |
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Servicing state and municipal debt |
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Other national issues |
Not all expenses included in the section “National Issues” are equally related to the costs of financing public administration and local self-government. In the federal budget, the volume of expenditures on public administration and local self-government, compared with expenditures in the budget of the extended government, is 108.9 billion rubles. and 139.1 billion rubles. respectively.
4. The role of the budget in the country's financial plans
In its external form, the Federal budget is the main financial plan of the state, determining its income, expenses, and the movement of the decisive part of centralized financial resources for a specific period (usually a year). Recognition of the budget as the main financial plan determines its important place in the redistribution of national income, its dominant position in the system of financial plans, as well as its special role in social reproduction. Thus, half (sometimes more) of the national income is redistributed through the Federal budget. This allows the state not only to satisfy national needs, but also to actively influence the entire life of society and ensure the implementation of the country’s economic and social development program.
The federal budget dominates the overall system of financial plans, since it reflects part of the financial resources of all entities and units of the economy and regulates their financial relationships with the state for the current period. It is no coincidence that the financial plans of enterprises, firms, and their superior organizations forecast payments to the budget and allocations from the budget. The financial plans (estimates) of non-production institutions are even more precisely linked with the main financial plan of the state, since budget resources are the main source of financing their expenses. A certain connection exists between the budget and the plans of banks and other credit institutions, which, being tax payers, plan tax payments, and temporarily available budget funds as lending resources.
In the process of drawing up the main financial plan of the state, the Federal budget is materialized - embodied in the centralized fund of funds of the state.
It concentrates the monetary resources of enterprises, organizations and the population in the form of taxes, fees and other revenues for national needs. They form budget revenues, which are used to finance economic and social programs and other planned activities. At this stage, the budget can already be characterized as the main centralized fund of funds of the state.
However, the form and material embodiment are only external signs of the Federal Budget; the deep essence is economic relations. In the process of redistribution of national income, the formation of budget revenues and expenditures, certain financial relations arise between the participants in this process. Their specificity is determined by the economic nature of the budget, its form, material content and special public purpose.
The federal budget as an economic category characterizes the set of objective monetary relations that arise during the formation, expenditure and use of the main centralized fund of state funds. To forecast them, a basic financial plan is developed, which is carried out in the process of accumulating part of the national income and its redistribution for national needs.
Therefore, when revealing the concept of “Federal Budget”, it is advisable to simultaneously reflect its three most important characteristics: form, material content and economic nature-essence. Thus, the Federal Budget is the main financial plan of the state, reflecting economic relations regarding the formation, distribution and use of a centralized fund of funds.
Conclusion
The Russian federal budget expresses economic monetary relations that mediate the process of formation and use of the centralized fund of state funds.
The main functions of the Federal budget are the redistribution of national income and GDP, state regulation of the economy, financial support for social policy, control over the formation and use of funds, the formation and use of the budget fund.
The role of the Federal Budget lies in the fact that in its external form it is the main financial plan of the state, determining its income, expenses, and the movement of the decisive part of centralized financial resources for a specific period (usually a year).
The importance of federal budget expenditures in the development of the modern Russian economy can hardly be underestimated, given their role and influence on various aspects of economic activity, stimulating the development and implementation of advanced scientific achievements in production. Federal budget expenditures are socially beneficial. The active role of the state in social reproduction and increasing the efficiency of the economy, strengthening defense capabilities determines the variety of budgetary expenditures of the federal budget, but at the same time they serve a single goal - to provide financial resources for federal needs.
We must also not forget the huge contribution of budget financing to solving the problem of socio-cultural provision, because using the instrument of federal budget expenditures for socio-cultural needs, the state can pursue a fairly flexible social policy.
However, the possibilities for free regulation of the amount and structure of government spending are limited, and, above all, by the volume of revenues received by the federal budget. Thus, the budget, combining the main financial categories (taxes, state credit, government spending), is the leading link in the financial system of any state and plays both an important economic and political role in any modern society.
Bibliography
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