State and municipal finance organizations. Finance
Content of state and municipal finance
A special position in the financial system belongs to state and municipal (local) finances, which is due to their specific purpose - to provide state and local authorities with the funds necessary to perform their functions.
State and municipal finance- ϶ᴛᴏ monetary relations arising in the distribution process in connection with the formation of funds from public authorities and local governments and their use to meet the social needs of citizens, regulation of the economy, financing of national defense and law enforcement, management and other expenses of the state and municipalities ...
With the help of state and municipal finances, public authorities and local self-government bodies regulate social processes, influence the development of priority sectors of the economy, smooth out differences in the level of socio-economic development of individual territories of the country, etc.
The organization of state and municipal finance is influenced by a number of factors.
First of all, the form of government. It should be said that unitary states as a whole are characterized by a higher degree of concentration of financial resources at the disposal of central government bodies as compared to federal states.
It is worth noting that the basis of the financial resources of the authorities of the administrative-territorial units of unitary states is made up of deductions from regulatory revenues and funds of financial assistance from central government bodies. In the context of a federal form of state structure, built on the principle of differentiating the subjects of jurisdiction and powers of government bodies of the federation and the subjects of the federation, own revenues become predominant in the structure of financial resources of the subjects of the federation. With ϶ᴛᴏm, the scale of interbudgetary reallocation of funds is reduced.
Secondly, the peculiarities of the administrative-territorial structure of the state, which will remain in the functioning of some subjects of the federation as part of other subjects of the federation or in the formation of municipalities of different territorial levels.
According to the Constitution of the Russian Federation, the regions (regions) and their constituent autonomous districts will be equal subjects of the Russian Federation. Accordingly, the formation of financial resources of such krais (oblasts) and autonomous okrugs is carried out under conditions of delimitation of powers not only with the federal center, but also between the constituent entities of the Russian Federation. In this case, the list of incomes and the proportion of their crediting to the budgets of the indicated subjects of the Russian Federation can be regulated by federal laws and agreements (agreements) between the state authorities of the Autonomous Okrug and the state authorities of the region or region.
Federal Law No. 131-FZ of 06.10.2003 "On the General Principles of Organization of Local Self-Government in the Russian Federation", which came into force on January 1, 2006, retains the right to exercise local self-government simultaneously on the territory of two municipalities - municipal districts and their territory of settlements. It should be said that the powers of local self-government bodies to mobilize and use their own financial resources are implemented in the context of inter-municipal delineation of issues of local importance and the sources of their financial support. Federal legislation fixes the composition and level of income assigned to the budgets of each of the types of municipalities.
Third, the special status of certain territorial entities. Giving a territorial entity a special status will be an effective mechanism for taking into account the geopolitical, ethnographic, demographic and other characteristics of such an entity, developed by international practice.
So, some unitary states (Italy, Spain, etc.) are included in the composition of the autonomy, the authorities of which have broader powers in comparison with the authorities of other administrative-territorial units of these states. It should be said that for the implementation of such powers, autonomies are endowed with additional financial resources and, of course, have greater financial independence. International practice also allows us to give examples of federal states that include, along with the subjects of the federation, territorial entities of a different status (in the USA - a federal district, an associated territory, in India - union territories, etc.) the powers of their authorities to form and use financial resources.
The principle of equality of the subjects of the Russian Federation, enshrined in Art. 5 of the Constitution of the Russian Federation, does not provide for differences in the volume and composition of powers assigned to state authorities of republics, territories, regions, autonomous districts, autonomous regions, cities of federal significance. In accordance with federal legislation, uniform standards for deductions from federal taxes and fees to their budgets and a single method for calculating financial assistance are established for all constituent entities of the Russian Federation.
At the same time, for municipalities, the legislation of the Russian Federation provides for the possibility of establishing a special mode of operation. The granting of a municipality a special status is due to: the concentration within the boundaries of the municipality of state security objects, for which a special mode of functioning and protection of state secrets has been established (the status of a closed administrative-territorial formation - hereinafter referred to as ZATO); specialization of the city-forming organizations of the municipal formation in scientific, scientific-technical and innovative activities within the framework of the scientific-production complex (the status of a science city)
It should be noted that the special status provides for a greater scope of powers of local self-government bodies and, therefore, additional sources of their financial support. In particular, the obligations imposed on the local self-government bodies of the ZATO in connection with the special living conditions of citizens (for example, resettlement to a new place of residence of citizens who have lost their official connection with individual ZATO organizations; organization of access control to the territory of the ZATO, etc.) imply the expansion of powers local governments to mobilize financial resources. Federal legislation ϶ᴛᴏ is achieved by increasing the share of tax revenues credited to the budgets of ZATOs, establishing the right of local self-government bodies of ZATOs to ensure the balance of their budgets through financial assistance from federal government bodies.
The formation and use of financial resources of state authorities and local self-government is carried out in the form of various funds of funds: budgets of different levels of the country's budget system and off-budget funds.
Budgets are formed by public authorities of different levels and local governments to provide financial support for all tasks and functions assigned to them. With the help of budget funds, the regulation of economic and social processes, the development of scientific and technological progress, the formation of investment potential, etc. directed by them to meet the diverse needs of society.
The formation of extra-budgetary funds is associated with the emergence of a need for state authorities and local governments in significant amounts of financial resources for a number of important socio-economic events. Extra-budgetary funds make it possible to finance such events from special sources used for their intended purpose. At the expense of extra-budgetary funds, social payments (pensions, allowances, etc.) are provided, various environmental measures are financed, research and development projects are being implemented, etc. Based on the above, we come to the conclusion that extra-budgetary funds act as a form of education and use of financial resources of state authorities and local self-government, providing for the targeted direction of funds to finance individual social, economic, and environmental needs of society.
Formed in the form of budgets and extra-budgetary funds, financial resources of state authorities and local self-government - ϶ᴛᴏ revenues, receipts and monetary savings that are in state and municipal ownership and intended for the solution by state and local authorities of issues within their competence.
The formation of the bulk of the financial resources of state authorities and local self-government is carried out through the mobilization of state and municipal revenues.
Government revenues represent monetary funds credited in accordance with the current legislation to the budgets of public authorities at different levels, as well as to state extra-budgetary funds.
When ϶ᴛᴏm, the monetary funds credited to the budgets of the state authorities of the ϲᴏᴏᴛʙᴇᴛϲᴛʙm levels represent budget revenues; the monetary funds entering the state off-budget funds will be the income of these funds. Based on the foregoing, we come to the conclusion that government revenues consist of revenues from the budgets of government bodies of different levels and revenues of state extra-budgetary funds, and budget revenues occupy the main place in the composition of government revenues.
Municipal revenue- monetary funds credited in accordance with the legislation of state authorities and decisions of local self-government bodies to the budgets of municipalities.
Mobilization of revenues to budgets and state extra-budgetary funds is carried out in the form of tax and non-tax revenues, as well as gratuitous transfers. In a market economy, taxes are used to mobilize the majority of state and municipal financial resources.
Financing of budget expenditures in terms of the excess of their volume over the amount of income is carried out at the expense of receipts from sources of financing the budget deficit. Financing of the budget deficit of public authorities is ensured by attracting funds in the form of loans, carried out by placing government securities, and loans received from credit institutions; obtaining budget loans and budget loans from budgets of other levels; proceeds from the sale of state-owned property, etc. At the same time, the state authorities of the Russian Federation have the right to attract both internal and external sources of financing the budget deficit, and the state authorities of the constituent entities of the Russian Federation - only internal sources (Article 94 , 95 BC RF) In accordance with the current legislation of the Russian Federation, financing of the budget deficit of state extrabudgetary funds is provided only by changing the balances of funds on accounts for accounting for budgetary funds of other extrabudgetary funds.
In order to balance local budgets, local governments raise funds in the domestic financial market (in the form of placement of municipal securities, budget loans and budget loans from budgets of other levels, loans from credit institutions) and the paid alienation of municipal property (through its sale). self-government for external borrowing is not provided for by the Budget Code of the Russian Federation (Article 96 of the BC RF)
The monetary savings of public authorities and local governments are formed from the income and receipts of the current financial year, which were not used in the course of the execution of the current budget or the state extra-budgetary fund and intended to finance expenses in subsequent periods. The monetary savings of state and local authorities will be in the form of balances in the accounts of budgets or state extra-budgetary funds at the beginning of the financial year, accounted for after the completion of operations on the accepted monetary obligations of the previous year.
It is worth noting that the balances of funds are not subject to withdrawal and can be used by state authorities and local governments to cover intra-annual cash gaps during the next year, to finance the budget deficit or a state non-budget fund in the next financial year, and be placed in debt obligations.
The sources of the formation of state financial resources will be the gross domestic product, receipts from foreign economic activity, part of the national wealth (for example, receipts from the sale of land, receipts from the sale of intangible assets, receipts from the sale of confiscated or ownerless property, etc.) In the event of an emergency (natural disasters, armed conflicts and hostilities, etc.), during a period of economic instability, part of the national wealth can act as a source of state financial resources when selling gold reserves, foreign exchange reserves, etc. At the same time, sources of financial resources for local governments will be the gross regional product, as well as part of the national wealth that is or is converted into municipal property.
The use of financial resources of public authorities and local self-government is carried out in the form of state and municipal expenditures.
Government spending- ϶ᴛᴏ funds allocated by state authorities from the budgets of the current levels and state extra-budgetary funds for financial support of the tasks and functions assigned to them.
Funds allocated from the budgets of state authorities at the highest levels represent budget expenditures; the funds transferred from the state extra-budgetary funds will be the expenses of these funds. Based on the foregoing, we come to the conclusion that government expenditures consist of the expenditures of the budgets of government bodies of different levels and the expenditures of state extra-budgetary funds, while the bulk of government expenditures is carried out at the expense of budgets of different levels.
Municipal expenses- ϶ᴛᴏ funds allocated by local governments from the budgets of municipalities to address issues of local importance.
Public expenditures are intended to meet the needs of society in the development of the economy and social sphere, governing the state, strengthening its defense capacity and national security, etc. the state. At different stages of the development of the state, the tasks facing it do not remain unchanged, but the volume and structure of government spending in specific areas change.
At the same time, the need for municipal expenses is due to the satisfaction of the needs of citizens associated with the place of direct residence (maintenance of the municipal housing stock, transport services for the population, landscaping, public order, management of the municipal formation, etc.) The variety of types of municipal expenses depends on the functions of local authorities. self-government; the level of socio-economic development of the municipality; tasks solved by local governments at a particular stage of development.
Organization of public finances at the federal and regional levels
Based on Art. 5 of the Constitution of the Russian Federation, state power in the Russian Federation is exercised on the basis of the delineation of the subjects of jurisdiction and powers between the state authorities of the Russian Federation and the state authorities of the constituent entities of the Russian Federation, which is due to the federal form of state structure. Proceeding from ϶ᴛᴏgo in the Russian Federation in the composition of public finances, one can distinguish public finances at the federal level and public finances at the level of the constituent entities of the Russian Federation (regional level). level create conditions for the implementation of functions assigned to the state authorities of the constituent entities of the Russian Federation.
Public finance at the federal level consists of the federal budget and state extra-budgetary funds of the Russian Federation. Based on Art. 144 of the Budget Code of the Russian Federation, only the following social extra-budgetary funds have the status of state off-budget funds of the Russian Federation: Pension Fund of the Russian Federation; Social Insurance Fund of the Russian Federation; Federal Compulsory Health Insurance Fund.
State finances at the regional level include the budgets of the constituent entities of the Russian Federation (regional budgets) and territorial state non-budgetary funds. The budgets of the constituent entities of the Russian Federation are represented by different types of budgets: republican budgets of republics, regional budgets of territories, regional budgets of regions, district budgets of autonomous districts, regional budget of an autonomous region, city budgets of cities of federal significance. Territorial compulsory health insurance funds are included in the territorial state extra-budgetary funds in accordance with the current legislation.
Based on all of the above, we come to the conclusion that the composition of public finances in Russia can be represented as follows (Figure 11.1):
Figure 11.1. Composition of public finance in the Russian Federation
The federal budget will be the main financial base for the activities of the state authorities of the Russian Federation. It concentrates the bulk of the financial resources at the disposal of these bodies.
Federal budget- the form of education and spending of funds intended to ensure the tasks and functions referred to the jurisdiction of the Russian Federation.
The formation of the federal budget is carried out through the mobilization of tax revenues, non-tax revenues, gratuitous transfers and other revenues.
The tax revenues of the federal budget include: federal taxes and fees credited to the federal budget in accordance with federal legislation; regional taxes and fees charged to the federal budget in accordance with federal legislation; penalties and fines collected for violation of tax legislation on certain types of taxes and fees to be credited to the federal budget.
Non-tax revenues of the federal budget will be: revenues from the use of property in federal ownership, or from the activities of organizations under the jurisdiction of federal executive bodies; income from the sale of intangible assets credited to the federal budget; administrative fees and charges; penalties and funds received in compensation for damage caused to the Russian Federation; income from foreign economic activity; other non-tax income.
The federal budget may receive gratuitous transfers from state extra-budgetary funds of the Russian Federation, from various organizations (residents and non-residents), from the budgets of other levels of the budgetary system of the Russian Federation, and other gratuitous transfers.
Other federal budget revenues include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions of federal subordination; other incomes stipulated by the legislation of the Russian Federation.
In addition to various types of revenues, revenues from sources of financing the budget deficit are credited to the federal budget, which, according to Art. 94 of the Budget Code of the Russian Federation are subdivided into receipts from internal sources and receipts from external sources of financing the federal budget deficit.
The receipts from internal sources of financing the federal budget deficit include: funds raised in the form of loans in the currency of the Russian Federation by placing government securities of the Russian Federation, and loans from credit institutions in the currency of the Russian Federation; proceeds from the sale of federal property; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation; receipts from the sale of state stocks; receipts from changes in the balances of funds on accounts for accounting for federal budget funds; receipts from other internal sources of financing the federal budget deficit.
Proceeds from external sources of financing the federal budget deficit will be: funds raised in the form of loans in foreign currency through the placement of government securities of the Russian Federation, and loans from foreign governments, foreign banks and firms, international financial organizations in foreign currency; receipts from other external sources of financing the federal budget deficit.
The funds received in the federal budget are directed to the implementation of expenses for the implementation of the powers of the state authorities of the Russian Federation on the subjects of the jurisdiction of the Russian Federation and the subjects of the joint jurisdiction of the Russian Federation and the constituent entities of the Russian Federation.
At the expense of the federal budget funds are provided: financing of the activities of the President of the Russian Federation, federal legislative, executive and judicial authorities; financing of the national defense and state security of the Russian Federation; state support for business entities operating in priority sectors of the economy for the Russian Federation (capital-intensive, innovative, strategic); financing the activities of state institutions that produce social services for public consumption on a non-market basis; financing of international activities in general federal interests; elimination of the consequences of emergency situations and natural disasters on a federal scale; financial support for the constituent entities of the Russian Federation and municipalities of a special status; financing of elections and referendums of the Russian Federation; servicing the state debt of the Russian Federation; financing of other expenses for the implementation of the powers of the state authorities of the Russian Federation. Along with the federal budget, a significant amount of financial resources formed at the disposal of the state authorities of the Russian Federation is concentrated in the state off-budget funds of the Russian Federation (the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Fund of Compulsory Medical Insurance)
State off-budget fund of the Russian Federation- a fund of funds formed outside the federal budget and intended for the implementation of the constitutional rights of citizens to pensions, social insurance, health care and medical care (Article 13 of the BC RF)
The income of the state social extra-budgetary funds of the Russian Federation is formed from: compulsory payments established by the legislation of the Russian Federation (deductions from the unified social tax, deductions from taxes under special tax regimes, various insurance contributions, etc.); federal budget funds; voluntary contributions from individuals and legal entities; income from the placement of temporary funds of funds; other incomes stipulated by the legislation of the Russian Federation.
The use of funds from state extra-budgetary funds of the Russian Federation is carried out exclusively for the purposes determined by the legislation of the Russian Federation. According to the Budget Code of the Russian Federation, at the expense of the state social extra-budgetary funds of the Russian Federation, expenses related to the implementation of the constitutional rights of citizens to: social security by age are financed; social security due to illness, disability, in case of loss of a breadwinner, birth and upbringing of children and in other cases provided for by the legislation of the Russian Federation on social security; health care and free medical care (Article 143 of the RF BC)
The bulk of the financial resources of the state authorities of the constituent entities of the Russian Federation are concentrated in the regional budgets.
The budget of a constituent entity of the Russian Federation (regional budget) is a form of formation and expenditure of funds intended to ensure the tasks and functions attributed to the jurisdiction of the constituent entity of the Russian Federation (Article 15 of the BC RF).
The revenues of the budgets of the constituent entities of the Russian Federation are formed at the expense of tax revenues, non-tax revenues, gratuitous transfers and other revenues.
The tax revenues of the budgets of the constituent entities of the Russian Federation will be: federal taxes and fees credited to the regional budget in accordance with federal legislation; regional taxes and fees credited to the regional budget in accordance with federal and regional legislation; local taxes and fees charged to the regional budget in accordance with federal legislation; penalties and fines collected for violation of tax legislation on certain types of taxes and fees to be credited to the regional budget.
The structure of non-tax revenues of the budgets of the constituent entities of the Russian Federation includes: income from the use of property owned by the constituent entities of the Russian Federation, or from the activities of organizations under the jurisdiction of the executive authorities of the constituent entities of the Russian Federation; income from the sale of intangible assets credited to the regional budget; administrative fees and charges; penalties and funds received in compensation for damage caused to the subject of the Russian Federation; other non-tax income. The budgets of the constituent entities of the Russian Federation may receive gratuitous transfers from territorial state extra-budgetary funds, from various organizations (residents and non-residents), from the federal budget in the form of financial assistance, and other gratuitous transfers.
Other revenues of the budgets of the constituent entities of the Russian Federation include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions of regional subordination; other incomes stipulated by the legislation of the Russian Federation. In addition to income, the budgets of the constituent entities of the Russian Federation are credited in accordance with Art. 95 of the Budget Code of the Russian Federation, receipts from internal sources of financing the budget deficit of a constituent entity of the Russian Federation, which include: funds attracted in the form of loans carried out by placing government securities of a constituent entity of the Russian Federation, and loans from credit institutions in the currency of the Russian Federation; proceeds from the sale of property owned by a constituent entity of the Russian Federation; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation and territorial state extra-budgetary funds; receipts due to changes in the balances of funds on accounts for accounting for funds from the budget of a constituent entity of the Russian Federation; receipts from other internal sources of financing the budget deficit of the constituent entity of the Russian Federation.
The funds credited to the budgets of the constituent entities of the Russian Federation are directed to the implementation of expenses for the implementation of the powers of the state authorities of the constituent entities of the Russian Federation on the subjects of jurisdiction of the subjects of the Russian Federation and the subjects of the joint jurisdiction of the Russian Federation and the subjects of the Russian Federation.
At the expense of the budgets of the constituent entities of the Russian Federation, the following is provided: financing of the activities of the legislative, executive and judicial authorities of the constituent entities of the Russian Federation; government support for priority sectors of the economy for the region (mainly agriculture, food and light industry); state support for suburban (rail, road, river) transport; implementation of the constitutional right of citizens to compulsory general education, social protection, health care and free medical care in institutions that are state-owned by the constituent entities of the Russian Federation or under the jurisdiction of state authorities of the constituent entities of the Russian Federation; maintenance of historical monuments and objects of cultural heritage that are state-owned by the constituent entities of the Russian Federation; financial support for municipalities on the territory of a given constituent entity of the Russian Federation; financing of elections and referendums of the constituent entities of the Russian Federation; servicing the state debt of the constituent entities of the Russian Federation; financing of other expenses for the implementation of the powers of state authorities of the constituent entities of the Russian Federation.
In addition to the budgets of the constituent entities of the Russian Federation, the financial resources formed at the disposal of the state authorities of the constituent entities of the Russian Federation are concentrated in the territorial state extra-budgetary funds. As already noted, these include the territorial compulsory health insurance funds.
Note that a territorial state off-budget fund is a fund of funds formed outside the budgets of the constituent entities of the Russian Federation and intended for the implementation of individual constitutional rights of citizens (in particular, for health care and generous assistance) (Article 13 of the BC RF)
Incomes of territorial compulsory health insurance funds are formed from: deductions from the unified social tax, deductions from taxes under special tax regimes, receipts from territorial budgets in the form of insurance premiums for compulsory medical insurance of the unemployed population, receipts from state extra-budgetary funds of the Russian Federation, income from placement temporarily free funds of funds, etc.
The bulk of the expenses of these funds is directed to the implementation of territorial programs of compulsory medical insurance of the constituent entities of the Russian Federation. With the exception of the above, the territorial compulsory health insurance funds are used to finance certain health care activities (for example, within the framework of various targeted programs), as well as the activities of the funds.
Do not forget that it will be important to say that there are certain interrelationships between budgets and extra-budgetary funds at the federal and regional levels, among which the following can be distinguished:
- between the federal budget and the budgets of the constituent entities of the Russian Federation. For example, funds are transferred from the federal budget to the budgets of the constituent entities of the Russian Federation in the form of financial assistance (subsidies for equalizing the level of budgetary provision of the constituent entities of the Russian Federation; subsidies for partial reimbursement of expenses for providing the population with subsidies for paying for housing and utilities; subsidies for reforming and improving regional finances, development of social infrastructure, increasing the efficiency of budget expenditures, support for economic reforms, etc.); funds are transferred from the budgets of the constituent entities of the Russian Federation to the federal budget to repay previously granted budget loans to cover intra-annual cash gaps;
- between the federal budget and state extra-budgetary funds of the Russian Federation. So, from the federal budget to the Pension Fund of the Russian Federation, funds are transferred from the unified social tax to pay the basic part of the labor pension, subventions are sent to the Social Insurance Fund of the Russian Federation to pay compensation and benefits to citizens affected by the Chernobyl disaster, nuclear tests at the Semipalatinsk test site, etc. ᴛᴏm the federal budget may receive gratuitous transfers from state extra-budgetary funds of the Russian Federation. Except for the above, temporarily free funds of the Social Insurance Fund of the Russian Federation, the Federal Mandatory Medical Insurance Fund can be invested in liquid government securities of the Russian Federation, the funds from the placement of which go to the federal budget;
- between the budgets of the constituent entities of the Russian Federation and territorial state off-budget funds. Funds are transferred from the budgets of the constituent entities of the Russian Federation to the territorial compulsory medical insurance funds in the form of insurance premiums for compulsory medical insurance of the unemployed population. It should be noted that territorial compulsory health insurance funds can temporarily invest free money in liquid state securities of the constituent entities of the Russian Federation, the funds from the placement of which go to the budgets of the constituent entities of the Russian Federation;
- between state off-budget funds of the Russian Federation and territorial state off-budget funds. For example, funds are transferred from the Federal Compulsory Medical Insurance Fund to the territorial compulsory medical insurance funds to equalize the financial conditions of their activities within the framework of the basic compulsory medical insurance program; from the Pension Fund of the Russian Federation to the territorial compulsory medical insurance funds, funds are received for compulsory medical insurance of non-working pensioners.
Features of the organization of municipal finance
The main task of organizing municipal finance is to provide local governments with financial resources in an amount sufficient to independently resolve issues of local importance. Based on Art. 9 of the European Charter of Local Self-Government, local governments have the right to have sufficient financial resources of their own, which they can freely dispose of in the exercise of their functions. The financial resources of local self-government bodies should be proportionate to their powers. Formation of a stable financial base of local self-government bodies will be the most important direction of the ongoing reform of local self-government in the Russian Federation.
The ownership of financial resources to local government bodies that exercise the powers of the municipal owner is one of the substantive features of municipal finance. The world practice of the administrative-territorial structure is rich in examples when representative bodies of local self-government are not created in every local community. It is pertinent to note that the experience of municipal construction in the Russian Federation testifies: in the territories of administrative-territorial units of the local level (in particular, individual districts) there are territorial bodies of state power, which are not recognized as subjects of budgetary legal relations and, of course, do not have budgetary powers and do not form their own budget resources. The implementation of the functions assigned to them is carried out at the expense of the state financial resources of the constituent entities of the Russian Federation. At the expense of the financial resources of local self-government bodies, according to an estimate of income and expenses, the activities of governing bodies of individual settlements that are not municipalities and are part of a municipal formation are ensured. Based on all of the above, we come to the conclusion that the organization of municipal finance is "tied" to municipalities, within the boundaries of which local self-government is carried out.
Foreign experience testifies to the diversity of approaches to the definition of the territorial organization of local self-government, when the rights of local self-government are vested in various territorial entities (cities, towns, rural settlements, communities, etc.; districts, districts, cantons, etc.) Law of 06.10.2003 No. 131-FZ "On the General Principles of Organization of Local Self-Government in the Russian Federation", which comes into force on January 1, 2005, municipalities are recognized settlements, urban districts, municipal districts and inner-city territories of cities of federal significance. At the same time, the list of territorial units within which local self-government is implemented, and the types of municipalities is defined as exhaustive and is subject to change and addition only within the framework of federal legislation.
The variety of types of municipalities provided for by federal legislation makes it possible to distinguish the finances of settlements, urban districts, municipal districts and inner-city territories of cities of federal significance. Settlement finances are designed to ensure the implementation of the powers of local self-government bodies of settlements to resolve issues of local importance, enshrined in federal legislation and the legislation of the constituent entities of the Russian Federation for settlements. At the expense of the financial resources of local self-government bodies of municipal districts (urban districts), issues of local importance are resolved, attributed to the jurisdiction of municipal districts (urban districts), as well as the powers of local self-government transferred by local self-government bodies of settlements, and state powers delegated by state authorities of the Russian Federation are implemented. and subjects of the Russian Federation.
The need to separate state and municipal finances is dictated by the separate position of local government bodies in the system of government bodies. In their activities, local government bodies ensure the implementation of the right of citizens to independently and under the responsibility of solving all issues of local importance, determined by federal legislation.
Article 12 of the Constitution of the Russian Federation guarantees that local self-government is independent within the limits of their powers. This provides that local governments acquire the right to form their own financial resources and to independently choose the directions and forms of using funds. The prohibition on arbitrary alienation of financial resources of local governments (Article 31 of the RF BC) is supplemented by a guarantee of transferring additional financial resources to local governments in order to ensure the state powers delegated to them.
The independence of local self-government is supported by the organizational separation of local self-government bodies from public authorities. Based on Art. 12 of the Constitution of the Russian Federation, local government bodies are not included in the system of government bodies. This predetermines the independence of the establishment by the municipal entity of the structure of local finance management bodies, the forms of their interaction, the powers of specific bodies and their officials. Federal legislation provides for measures to protect local governments, incl. local finance authorities from interference in their activities by state authorities.
Following the Constitution of the Russian Federation, the independent formation of local budgets will be an integral feature of local self-government.
The budget of a municipality (local budget) is a form of formation and spending of funds intended to ensure the tasks and functions related to the jurisdiction of local self-government (Article 14 of the Budget Code of the Russian Federation)
Local budgets- the central link of local finance, in which the bulk of the financial resources of municipalities are mobilized and at whose expense the basic needs of the local community are financed.
Local budget funds are owned by the municipality, which is enshrined in Art. 49 of the Federal Law of 06.10.2003 No. 131-FZ "On the General Principles of Organization of Local Self-Government in the Russian Federation".
The formation of local budgets is carried out through the mobilization of tax revenues, non-tax revenues, gratuitous transfers, and other revenues of local budgets.
Tax revenues of local budgets form: federal taxes and fees credited to the local budget in accordance with federal and regional legislation, as well as decisions of local governments; regional taxes and fees credited to the local budget in accordance with regional legislation and decisions of local self-government bodies; local taxes and fees credited to the local budget in accordance with federal legislation and decisions of local governments; monetary penalties in the form of sanctions applied for certain types of taxes and fees, which must be credited to the local budget; means of self-taxation of citizens.
As non-tax revenues, local budgets are credited with: revenues from the use of property in municipal ownership or from the activities of municipal organizations (dividends on shares in municipal ownership; income from the lease of property in municipal ownership, etc.); income from the provision of budget loans and budget loans; income from the provision of services or compensation for the costs of the municipality; payments from municipal organizations; funds from the sale of confiscated and other property converted to the income of the municipality; administrative fees and charges; penalties and compensation for damage to municipalities.
Gratuitous transfers to local budgets are carried out in the form of financial assistance from the federal budget and the budgets of the constituent entities of the Russian Federation; financial assistance from the budgets of other municipalities; other gratuitous transfers.
Other revenues of local budgets include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions under the jurisdiction of local governments, other revenues provided for by the legislation of the Russian Federation.
According to the Budget Code of the Russian Federation, the approved volume of budget revenues of the municipal formation, excluding financial assistance from the budgets of other levels of the budgetary system of the Russian Federation, cannot be lower than the approved volume of current budget expenditures, and must be at least 10 times higher than the level of the local budget deficit (Article 92 of the Budget Code of the Russian Federation)
The balance of the budgets of municipalities is ensured by local governments at the expense of the following types of receipts from sources of financing the deficit of local budgets: receipts from the placement of municipal securities; loans from credit institutions; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation; receipts from the sale of property in municipal ownership, including receipts from the sale of shares owned by the municipality; proceeds from the sale of land plots credited to the local budget. In accordance with the Budget Code of the Russian Federation, the balances of local budgets can be used to finance the local budget deficit (Article 96 of the Budget Code of the Russian Federation)
Sources of financing the local budget deficit are approved by the representative bodies of local self-government in the decision on the budget for the coming financial year.
According to the main purpose of municipal finance - financial support of the powers of local self-government bodies, the funds of local budgets are directed to the implementation of expenses: to resolve issues of local importance, which are within the competence of local self-government bodies of this municipal formation; on the implementation of certain state powers delegated to local self-government bodies; on the exercise of powers delegated by other bodies of local self-government.
The first group of expenses - to meet the basic living needs of the population in the areas attributed to the jurisdiction of the municipality, includes expenses for:
- realization of the constitutional rights of citizens to compulsory general education, social protection, health care and free medical care in institutions that are in municipal ownership or under the jurisdiction of local governments;
- ensuring the living conditions of the municipality as a whole (for the protection of public order, landscaping and landscaping of territories, removal and processing of household waste and garbage, etc.);
- implementation of local self-government (for the conduct of municipal elections and local referendums, for the maintenance of local self-government bodies);
- servicing municipal debt. Financing of the expenses of this group is carried out exclusively at the expense of local budgets.
The second group includes expenses for the financial support of powers that are within the competence of the state authorities of the Russian Federation and the constituent entities of the Russian Federation and transferred by them to local governments at a time, for a specified period or indefinitely. Traditionally, the delegation of state powers to local self-government bodies is seen as an instrument of decentralization of state power, contributing to an increase in the efficiency of public administration at the local level, based on the interests of the population and taking into account local traditions.
Financial provision by local governments of certain state powers delegated to them presupposes compliance with the following conditions:
- the volume of expenditures of local budgets for the exercise of delegated powers cannot exceed the amount of funds received from public authorities to ensure such powers;
- the conditions and procedure for the additional use of own revenues of local budgets to finance the delegated state powers are subject to regulation in the charter of the municipality;
- the procedure for spending funds by local government bodies for the exercise of delegated state powers is established by federal government bodies or government bodies of the constituent entities of the Russian Federation.
The allocation of the third group of expenses is due to the right of local self-government bodies of municipal districts to delegate part of their powers to local self-government bodies of individual settlements that are part of a given municipal district, and, on the contrary, the transfer by local self-government bodies of specific settlements of part of their powers in favor of municipal districts.
Financial support by local self-government bodies of the powers delegated to them to resolve issues of local importance under the jurisdiction of other municipalities is carried out exclusively on the basis of an agreement of local self-government bodies and within the funds received in order to compensate for additional costs.
Local self-government bodies can invest funds of local budgets in the authorized capital of organizations, transfer budget funds for management, provide budget loans to cover cash gaps in other budgets. Meanwhile, the placement of budget funds on bank deposits is not allowed by the Budget Code of the Russian Federation (Article 237 of the BC RF)
Along with the local budget, the economic basis of local self-government can be municipal off-budget funds, which are an independent link in municipal finance.
Municipal off-budget funds - funds of monetary funds formed outside the budgets of municipalities and intended for the implementation of individual needs of the local community (provision of environmental protection measures, protection of historical and cultural monuments, etc.)
The functioning of municipal off-budget funds is based on a targeted orientation in the formation of financial resources, when the mobilization of funds is carried out taking into account the previously designated and specified directions of their use.
The right of local self-government bodies to form municipal off-budget funds was first formulated in the Law of the RSFSR dated 06.07.1991 No. 1550-1 “On local self-government in the RSFSR”. The active formation by local governments of municipal off-budget funds was dictated by the desire to ensure the concentration of financial resources on priority tasks for the municipality or especially significant programs; use the targeting of certain types of income (for example, payments for the use of natural resources); guarantee the fulfillment of certain expenditure obligations regardless of the results of the execution of local budgets; to increase the efficiency of financial resources management. Meanwhile, off-budget funds did not allow local governments to achieve effective and rational use of funds, which was due to a number of factors:
- limited financial resources at the disposal of local governments;
- multi-channel financing of the same expenses;
- disproportion of the fixed income sources with the amount of funds required for the implementation of programs;
- refusal to use free balances of municipal off-budget funds to finance the deficit of local budgets;
- imperfection of the organization of accounting and control over the formation and use of the funds of these funds.
The diversion of revenues to municipal off-budget funds was a latent form of overestimating the needs of the municipal formation for financial assistance from the budgets of the constituent entities of the Russian Federation. In general, the process of consolidation of budgets and state extra-budgetary funds, which began at the federal level in 1994, found its gradual manifestation in the form of the abolition of some municipal extra-budgetary funds and consolidation in local budgets on the basis of targeted budget funds of others.
Modern federal legislation does not allow determining the legal status of municipal off-budget funds in a clear and unambiguous manner. Federal Law No. 154-FZ of 28.08.1995 "On the General Principles of Organization of Local Self-Government in the Russian Federation" confirms that representative bodies of local self-government have the right to form targeted off-budget funds that are part of municipal property. Newly adopted in 2003, the Federal Law "On the General Principles of Organization of Local Self-Government in the Russian Federation" of this law does not formulate and establishes the exclusive position of local budgets in the financial support of issues of local importance. The Budget Code of the Russian Federation also does not contain instructions on the possibility of creating municipal off-budget funds; the position of municipal off-budget funds in the budgetary system of the Russian Federation has not been determined.
At the same time, the absence in federal legislation of norms prohibiting the formation of municipal extra-budgetary funds does not impede the activities of local self-government bodies to mobilize and use their own financial resources in an extra-budgetary form. This is evidenced by the presence of off-budget funds in many municipalities.
Federal legislation does not provide for mandatory payments to be credited to municipal off-budget funds. Taxes and levies assigned to local budgets cannot be directed to municipal off-budget funds. Local governments do not have the right to introduce additional fees and other mandatory payments not provided for by federal legislation. Based on the above, we come to the conclusion that the revenues of municipal extra-budgetary funds are limited in terms of the composition and volume of funds raised: voluntary contributions and donations from citizens and organizations for these purposes; fines for offenses in the field of environmental protection and use of natural resources (to be used for environmental protection and restoration measures); fines for damage and loss of objects of historical and cultural heritage, natural monuments, which are under the jurisdiction of local authorities (directed to the implementation of measures to restore and maintain in the preservation of objects of historical and cultural heritage); other income in accordance with the legislation of the Russian Federation.
At the expense of municipal extra-budgetary funds, expenses can be financed to meet the various needs of local communities, taking into account the need to fix these costs for certain types of income (for example, costs for environmental protection measures, municipal housing construction, construction and repair of municipal roads, support for small businesses, etc.). )
The functional isolation of municipal off-budget funds entails their organizational independence. These funds are approved in the form of separate legal acts of representative bodies of local self-government in the manner to be determined in the charter of the municipality. The funds of municipal off-budget funds are credited to special accounts opened with credit institutions that carry out cash execution of the budget.
Changes made to Art. 14 of the Budget Code of the Russian Federation by the Federal Law of 20.08.2004 No. 120-FZ "On Amendments to the Budget Code of the Russian Federation in Regulating Interbudgetary Relations" allow to resolve the uncertainty of the position of municipal extra-budgetary funds. The use by local self-government bodies of forms of education and spending of funds other than the local budget for the fulfillment of expenditure obligations of the subject education is not allowed.
Control questions
- What is the economic content of state and municipal finance?
- What is the reason for the need for the existence of state and municipal finance?
- What factors influence the organization of state and municipal finances?
- What is the composition of the financial resources of public authorities and local governments?
- What are the sources of financial resources of state authorities and local self-government?
- What are the differences between budgets and extra-budgetary funds of public authorities?
- What are state and municipal revenues?
- What are government and municipal spending?
- What federal legislative acts regulate the formation of financial resources of public authorities and local governments?
Self-study assignments
- Analyze the composition, structure and dynamics of federal budget revenues and expenditures over the past five years.
- Analyze the composition and structure of revenues and receipts of regional budgets over the past five years.
- Analyze the composition and structure of revenues and revenues of local budgets over the past five years.
The term "finance" comes from the Latin word finis, meaning the end, the end, namely the completion of the payment, the completed settlement. Later from finis came the word financia (finance), meaning payment of money.
Thus, finance is a historically established economic category. It arose with the development of commodity-money relations. The initial condition for the emergence of finance is commodity production, mediated by monetary relations.
Finance is an integral part of monetary relations, their role and significance depend on the place of monetary relations in the economy. On the surface of public life, finance exists as the movement of cash and non-cash funds. Unlike money, which plays the role of a universal equivalent, finance is an economic instrument for the distribution and redistribution of gross domestic product and national income, as well as a means of control over the formation and use of funds of funds.
Finance - economic relations associated with the formation, distribution and consumption of centralized and decentralized funds to perform the functions and tasks of the state.
A special position in the financial system belongs to state and municipal (local) finances, which is due to their specific purpose - to provide state and local government bodies (LSG) with the funds necessary to perform the functions assigned to them.
State and municipal finances are monetary relations that arise in the course of the formation and use of funds by state authorities and LSGs.
With the help of state and municipal finances, public authorities and local government bodies regulate social processes, influence the development of priority sectors of the economy, smooth out differences in the level of socio-economic development of individual territories of the country, etc.
The modern market economy is a mixed system in which mechanisms of public and private regulation closely interact. The economic basis on which the entire system of state participation in the economic life of the country rests is public finance. This is the most important tool for implementing the government's economic policy. We can say that economic policy itself is more than half composed of financial and monetary.
Public finance is the most important lever by which the government influences the entire production and distribution process. Public finance can be defined as a collection of centralized and decentralized funds managed by government agencies to meet national and social needs.
State funds are formed mainly through the withdrawal through taxation of part of the income from other subsystems of the financial system. The structure of public finance includes various separate links.
The leading role in the public finance system is played by inter-budgetary relations. They are formed at the federal, regional and local levels. Through inter-budgetary relations, the state forms a significant part of the national income.
The state not only generates financial resources, but also carries out expenses. These two processes are closely related and are expressed in such economic forms as government revenues and government spending.
The composition of public finances is shown in Fig. 1.1.
Rice. 1.1. Composition of public finances in the Russian Federation
The region's finances are an integral part of the country's financial system. Their content and socio-economic functions are determined by the same characteristics as for the country's finances as a whole, and their role differs only in the specifics of those management tasks that are implemented at a given - regional or local - level of the federal structure of the state, taking into account the existing and normatively fixed system of distribution of powers and responsibility of the Federation, its subjects and LSG institutions.
As a tool for the implementation of regional socio-economic policy, the region's finances should contribute to the development of production, growth of employment, attraction of investments, including in those sectors that are priority from the point of view of current and long-term tasks of the functioning of the regional economic complex.
The region's finances in their social function must provide the necessary living resources for those groups of the population that, due to age or for other reasons, are not able to participate in the process of material production, but must have a guaranteed material income.
Currently, there is a noticeable trend towards strengthening the social functions of regional finance. This is due to the fact that in recent years the main burden of financing social expenditures has been shifted to the system of regional and local finance.
The main feature of the region's finances is that there are, as it were, three independent financial subsystems - the state one, including the subject of the Russian Federation itself; municipalities, constitutionally independent from the state, as well as individual legal entities and individuals, primarily business entities. The first two subsystems traditionally belong to the category of centralized finance (budgetary system and centralized off-budget funds); the third subsystem belongs to the category of decentralized finance.
The finances of private legal entities and individuals, of course, are not under the direct jurisdiction of regional or local authorities, but to a large extent they are also an object of management, an object of regional financial policy through taxation instruments, budgetary financing of social spheres, financing of regional and municipal orders.
Thus, since ultimately all the subsystems of the region's finances are located on the same territory and proceed from the interests of the same inhabitants of the region, such a division, which is natural for the conditions of a multi-structured market economy, should not prevent the consolidated participation of these subsystems in solving local social -economic problems. The only difference is in the principles of operation, the area of operation and the degree of responsibility of each of the subsystems. A single field of activity for all the finances of the region dictates a single criterion for assessing the management of regional finances - improving the economic and social situation in the region.
The most important link in the financial system of the Russian Federation is local finance, which provides local self-government bodies (LSGs) with funds to carry out the functions provided for by the Constitution of the Russian Federation and other legislative acts.
The essence of local finances lies in the fact that they cover that part of monetary relations regarding the distribution and redistribution of the value of the aggregate product created in society, which is accumulated in the prescribed amount in the hands of state authorities and local governments to cover the costs necessary for the state and local authorities their functions.
Local finance includes local budget funds, state and municipal securities owned by local self-government bodies, and other financial resources.
In the Russian Federation, based on the federal structure, public finances include two levels: the finances of the federal authorities and the finances of the bodies of the constituent entities of the Russian Federation. Municipal finance is a grassroots level and is separated into an independent structural level. The formation and use of local finance is based on the principles of independence, state financial support and transparency.
The owner's rights in relation to local finances are exercised on behalf of the population of the municipal formation of local self-government bodies or directly by the population of the municipal formation in accordance with the charter of the municipal formation.
Local finance plays an important economic, social, political role and has three functions.
First of all, this is the redistribution function. Thanks to this function, funds are concentrated in the hands of local authorities and used to meet the needs of the population and the authorities of the municipality.
The regulatory function of local finance is associated with the formation and use of the budgetary fund. The budgetary fund is formed from taxes, loans, municipal property revenues.
The control function allows you to find out how timely and fully financial resources come to the disposal of local authorities, how the proportions are actually formed in the distribution of budgetary funds, whether they are effectively used.
The formation of the bulk of the financial resources of public authorities and LSG is carried out through the mobilization of state and municipal revenues.
State revenues are the financial relations of the state with individuals and legal entities regarding the formation of centralized funds of funds.
The financial resources available to state-owned enterprises are decentralized funds.
In the composition of centralized state revenues, the leading place is occupied by budget revenues, due to which the solution of the main state socio-economic problems is mainly ensured.
In addition to budgetary revenues, centralized state revenues include financial resources of state non-budgetary funds.
The main source of the formation of state revenues is the national income, in the event of an emergency - a part of the national wealth.
National income and part of the national wealth represent the internal sources of government revenue. External sources of government revenues are understood as the national income and, in exceptional cases, the national wealth of another country.
The main tasks of the state revenue system are both fiscal and economic tasks in general.
Municipal revenues are funds credited in accordance with the legislation of state authorities and municipal legal acts of representative bodies of local self-government to the budgets of local self-government bodies and municipal extra-budgetary funds.
At the same time, in the Russian Federation, as well as in many other states, the formation of municipal off-budget funds is prohibited, therefore, municipal revenues include only revenues of the local self-government budgets.
In the Russian Federation, state and municipal revenues are generated by mobilizing tax and non-tax revenues, as well as gratuitous receipts. In a market economy, the formation of the predominant part of state and municipal financial resources is provided with the help of taxes.
The use of financial resources of public authorities and LSG is carried out in the form of state and municipal expenditures.
Government expenditures - financial relations of the state, due to the use of centralized and decentralized state revenues. Public expenditures are understood as direct expenditures of the state, which it carries out through the system of budgetary and extra-budgetary funds, as well as state enterprises, institutions and organizations.
The main functions of public finance in market conditions include:
1. Development, adoption, implementation and improvement of legislative acts that form the institutional foundations of the market economy.
2. Maintaining macroeconomic and socio-political stability, effective regulation and industrial policy. On the basis of a well-thought-out system of regulation, the state is able to actively influence the nature and results of market activity in the interests of society as a whole. Most economically developed countries in the early stages of development used various ways to stimulate market development. Subsidies were used for strategic development directions, assistance to infrastructure development, various forms of export promotion and protection of the internal market.
3. Funding for basic social services, support for vulnerable groups of the population. State authorities to a large extent insure citizens against threats to their economic security. This can be done through retirement benefits, health insurance, and social insurance.
4. Regulation of integration into the world economy, taking into account the protection of national interests. With the development of international trade, countries are increasingly involved in world economic processes. This is due to the emergence of new information systems, the desire of highly developed countries to use their advantages.
5. Implementation of environmental protection measures. The ways and methods of implementing these functions in different states may be different and depend on the specific situation: the level of development of the country, the stage of its economic development.
Municipal expenditures are funds allocated from the budgets of local self-government bodies and municipal extra-budgetary funds to address issues of local importance.
Taking into account the fact that in the Russian Federation the formation of municipal off-budget funds is not allowed, only the expenditures of the local self-government budgets are allocated in the composition of municipal expenses.
Government spending is intended to meet the needs of society in the development of the economy and social sphere, government, strengthening its defense capability and national security, etc. In this case, specific areas of government spending are determined by various functions (economic, social, administrative, defense, political) performed by the state ... At different stages of the development of the state, the tasks facing it do not remain unchanged; accordingly, the volume and structure of government spending in specific areas change.
In turn, the need for municipal expenses is due to the satisfaction of the needs of citizens associated with the place of direct residence (maintenance of the municipal housing stock, transport services for the population, landscaping, public order protection, management of the municipal formation, etc.). The variety of types of municipal expenses depends on the functions of local self-government bodies; the level of socio-economic development of the municipality; tasks solved by local self-government bodies at a particular stage of development.
A special position in the financial system belongs to state and municipal (local) finances, which is due to their specific purpose - to provide state and local authorities with the funds necessary to perform their functions.
State and municipal finances are monetary relations arising in the distribution process in connection with the formation of funds from public authorities and local governments and their use to meet the social needs of citizens, regulation of the economy, financing of national defense and law enforcement, management and other state expenditures and municipalities.
With the help of state and municipal finances, public authorities and local self-government bodies regulate social processes, influence the development of priority sectors of the economy, smooth out differences in the level of socio-economic development of individual territories of the country, etc.
Public finance is a form of organization of monetary relations, in which the state is a participant in one form or another. Public finance is a set of economic relations, a system of education and distribution of funds necessary for the state to maintain its bodies and perform its inherent functions.
Municipal finance is a monetary relationship that develops between local governments, on the one hand, and public authorities, legal entities and individuals, on the other hand, in the process of value distribution and redistribution of national income (partially and national wealth) in connection with the formation, distribution and use of centralized funds of funds of municipalities that meet the needs of local governments in solving economic and social problems. The main task of organizing local finances is to provide local governments with financial resources in an amount sufficient to independently resolve issues of local importance.
The structure of state and municipal finance includes the following elements:
1) The budgetary system as a set of financial plans of authorities at various levels and budgets of extra-budgetary funds.
2) The system of state and municipal loans, which is a way of mobilizing state revenues and serving the deficits of the budget system.
2. The main functions and principles of the organization of centralized finance.
In the socio-economic development of society, state and municipal finances perform a number of functions:
Planning - the formulation of goals and the choice of ways to achieve them. Implemented through budgeting;
Organizations - there is a budgetary structure, budget classification, uniform procedures for the budgetary process;
Incentives - the implementation of activities aimed at achieving goals;
Control.
Some principles of organizing state and municipal finances can be distinguished:
Unity of the legislative and regulatory framework;
Openness and transparency;
Delimitation of powers and subjects of reference;
Target orientation:
Scientific approach;
Economy and rationality;
Controlling financial flows on a centralized basis.
Some of these principles duplicate the principles of the budgetary system of the Russian Federation.
Public finances include:
· Budgetary system;
· Off-budget funds;
· Government credit.
Insurance includes:
· Personal insurance;
· Property insurance;
· liability Insurance.
The finances of business entities include:
· Finance of commercial enterprises and organizations;
· Financial intermediaries (credit organizations, private pension funds, insurance organizations and other financial institutions);
· Finance of non-profit organizations.
The process of organizing and regulating the financial system of a society is always carried out by the state in the person of authorized financial bodies, which determines the key role of the financial system of the state.
The structure and content of public finance depends on the system of government. In the Russian Federation, state finances include funds of funds formed at the federal level and the level of a constituent entity of the Federation.
The structure of federal finance includes the following links:
Federal budget and budgets of state extra-budgetary
social funds (PF RF, MHIF, FSS); State loan;
Finances of state unitary enterprises and state
corporations.
The structure of regional finance includes: The budgets of the subjects
RF; Territorial health insurance funds.
Federal finances are administered by federal government bodies that determine the strategic directions for spending public finances and exercise control over the targeted and efficient use of public finances.
Regional finance includes financial transactions carried out by the constituent entities of the Federation in order to perform state functions at the regional level. Finances at the regional level are formed both by extracting income from their own sources and by using the resources allocated by the federal center. Regional finances are managed by state authorities of sub-federal significance, which determine the priority areas for spending public finances at the regional level and monitor the targeted and efficient use of public finances at the regional level.
Public finance is a set of monetary funds (resources) that the state mobilizes to perform its functions. The size of public finances is determined by the functions and role of the state in society: in each country "its" public finances reflect the characteristics of "its" state. The essence of the first of them - economic - consists in financing the regulatory activities of the state in the national economy (public sector management, programming, etc.). The second function - defense - is to finance the army, police, etc. The third - social - is to provide support to the poor, financing unemployment benefits, the disabled and the sick. And finally, the last, fourth function, which is performed by public finances, is the most modern - it is the environmental function. It consists in providing subsidies for the development and implementation of new technologies in production that reduce its harmful effects on the environment. The implementation of these four functions is entrusted to the modern financial system, the structure of which depends on the specific tasks set.
More on the topic State and municipal finance, their economic content and structure:
- 53 State and municipal finance, their economic content and structure
- 2.3.1. Socio-economic essence of state and municipal finance
- No. 4. Public finance: concept, structure (federal finance, finance of the subjects of the federation)
- 38. Economic content and structure of state budget revenues
- 36. Economic content, composition and structure of state budget expenditures
- § 1. Transformation of state and municipal enterprises into joint stock companies and making state or municipal property as a contribution to the authorized capital of joint stock companies as the main methods of privatization in Russia. Management of shares in state and municipal ownership as one of the main mechanisms for managing state and municipal property
- 1.3. Prerequisites for reengineering the organizational structure of municipal finance management
- LECTURE 7. BASICS OF FUNCTIONING OF STATE AND MUNICIPAL FINANCE
- Tasks of reforming the management of state and municipal finances
- 5. State and municipal finance. Composition of financial resources.
- 2L. Organizational structure of municipal finance management in terms of the Budget Code of the Russian Federation
- 4.1 Assessment of options for the development of the organizational structure of municipal finance management in the city of Kemerovo
- Copyright - Legal profession - Administrative law - Administrative process - Antitrust and competition law - Arbitration (economic) process - Audit - Banking system - Banking law - Business - Accounting - Real law - State law and management - Civil law and procedure - Monetary circulation, finance and credit - Money - Diplomatic and consular law - Contract law - Housing law - Land law - Electoral law - Investment law - Information law - Enforcement proceedings -
State and municipal finance in the financial structure occupy a special position. This is due to their specific purpose, which is to provide state authorities and territorial administration of funds. These funds are used to assist in ensuring the performance of these bodies of their functions.
State and municipal finances are involved in the regulation of social phenomena, the development of priority economic sectors. With their help, it is possible to smooth out differences in the level of social and economic development of certain territories of the country.
State and municipal finances are shaped by a number of factors.
So, the form of the structure of power in the country is of great importance. in general (in comparison with federal ones) are characterized by a higher degree of concentration of funds at the disposal of central government agencies. In these countries, payments from revenues of regulatory significance and means of assistance from central authorities act as the basis for the monetary resources of administrative-territorial elements.
Within the framework of the structured in accordance with the principle of delimitation of powers and subjects of regulation of the subject and central representative offices of power, the predominant importance is acquired by the subjects' own incomes. At the same time, there is a decrease in the scale of interbudgetary reallocation of funds.
State and municipal finances are formed in accordance with the administrative-territorial structure of the country. This is expressed in the activities of some entities as part of others or in the formation of territorial entities of different levels.
In accordance with the Constitution, the krai (oblasts and other formations) and the autonomous okrugs included in their composition are equal subjects of the country. In this regard, resources occur within the framework of the delineation of powers both with the federal center and between territorial units.
The formation of state and municipal finances is also influenced by the special status of a number of entities. In accordance with their status, territorial entities perform certain functions. Additional funding is also allocated for solving a number of tasks, which allows individual entities to obtain financial independence.
In accordance with the principle of equality enshrined in Article 5 of the Constitution, differences in the composition and scope of powers of state bodies of territories, republics, autonomous districts, regions and other elements are not provided. According to federal legislation, for all subjects, uniform standards have been established for deductions from fees and taxes to budgets and a single method for calculating cash assistance.
At the same time, it should be noted that for municipal formations the possibility of applying a special mode of operation is provided by law. The application of a special status relative to the territorial unit of the country is associated with a number of reasons. Among them, they note the concentration within the boundaries of the subject of state security objects, for which a special regime operates, the specialization of city-forming organizations in innovative, scientific and technical, scientific activities in the conditions of a scientific and production complex. The presence of a special status implies a greater scope of powers for local government representations and additional sources of cash receipts (state finances, for example).
Chapter 2. Stateand municipal finance:essence and function
2.1. The essence of government andmunicipal finance
State and municipal finance is a set of economic relations arising in real money circulation in connection with the formation, distribution and use of centralized funds of financial resources.
The material basis of finance is money circulation. Real money turnover - it is an economic process that causes the movement of value and is accompanied by a flow of cash payments and settlements. The object of real money turnover is financial resources, which are sources of financing for expanded reproduction.
State and municipal finances express economic relations associated with the provision of centralized sources of financing for the state and municipal sectors of the economy, the most significant programs for the development of production and the public sector, organizations and institutions of the budgetary sphere, etc. Their functioning is aimed at achieving the general goals of the development of a socially oriented economy.
State and municipal finances function within the financial system of the state and are its central link (Fig. 2.1).
Figure 2.1. Composition of state and municipal financesFinance as an economic category depends on transformations in the relationship between the links of the financial system. This applies primarily to the relationship between macro finance and micro finance. Macro-level finances, and above all state and municipal budgets, are based on the financial potential of enterprises. Finance contributes to the achievement of general goals of economic development, therefore, their optimal organization is required. The way of organization establishes the qualitative certainty of finances. The distribution and use of financial resources in the state are carried out within the framework of an integrated system for managing financial flows.
An important methodological factor is the definition principles of organization and functioning state and municipal finance, which makes it possible to identify the directions of the influence of finance on the development of the state and municipal sectors of the economy, to develop criteria for their functioning.
Public and municipal finances are based on information flows. Government decision-making is based on a body of information. Analysis of the incoming information is important both at the moment of making a decision and in the process of monitoring the progress of its implementation. This information is contained in operational and statistical reporting, contracts and agreements, settlement documents, etc.
State and municipal finances have a clear target orientation. They affect certain socio-political interests of certain segments of society. However, in all their aspects, they are focused on solving state and municipal problems.
2.2. Functions of state andmunicipal finance
State and municipal finance as an economic category is manifested in the functions they perform. The study of the function is necessary for the implementation of public financial policy. Within the framework of financial science, there is a certain unity of functions of state finance and enterprise finance, and at the same time, there are significant differences that determine the importance of national interests and the entrepreneurial aspect of activity.
The main functions of the financial system . For the financial system as a whole, the following functions are of decisive importance: planning, organization, stimulation, control.
1. Scheduling function involves the formulation of goals and the choice of ways to achieve them on the basis of the delineation of powers and subjects of jurisdiction between the Federation, the subjects of the Federation and local authorities. The planning function usually includes the distribution of a limited amount of financial resources in the time aspect based on the priorities and development goals, their redistribution between the federal budget and the budgets of the subjects of the Federation and local governments. This function is implemented through the preparation of budgets for the corresponding financial year and perspective, balances of financial resources, taxation procedures, etc.
2. Organization function includes a budgetary structure, budget classification, implies the need to determine the procedure for drawing up, approving and executing the budget, choosing authorized credit organizations, delineating the powers of legislative and executive authorities in the budget process, defining the rights and responsibilities of functional units of financial bodies. This function is associated with the process of organizational construction of the internal system of regulation and control of budget flows and financial resources of the state.
3. Stimulation function is based on activities aimed at achieving goals. This function is used to interpret the factors affecting financial performance and taking into account its need for cash. The decisive role is played by the factors that determine the behavior of employees in their decision-making process on tactical and strategic aspects of finance.
4. Control function means helping to achieve the goals set. These include the development of norms and standards that are a benchmark, a criterion for assessing results, comparing achievements with the goals and established criteria, ensuring that the necessary changes are made to the conditions and factors of financial activity.
Functions of finance related to the regulation of real money turnover.
1. Distribution function state and municipal finance lies in the fact that through the distribution and redistribution of the newly created value, national needs are provided, sources of financing for the public sector of the economy are formed, and a balance of budgets and extra-budgetary funds is achieved within the unified budgetary system of the Russian Federation.
State and municipal finances function on the basis of the redistribution of financial resources through a system of centralized funds. With this function they serve reproductive processes both within the framework of relatively isolated structural formations, and on a national scale.
The distribution function is that the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.
The main objects of implementation of the distribution function of finance are mandatory payments to the budget and off-budget funds, as well as sources of financing the budget deficit. The process of redistribution of income between different levels of budgets plays a special role.
2. Control function state and municipal finance consists in the implementation of control over the real money turnover by the ruble, in which the state is a participant, in the formation of centralized funds of funds. Ruble control has two forms:
- control over changes in financial indicators, the status of payments and settlements;
- control over the implementation of the financing strategy.
In the first case, a system of sanctions and incentives is applied, using measures of a coercive or incentive nature. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to the anticipation of changes and the early adaptation of the order and conditions of financing to them. Constant changes and updates in the financial system require an adequate response to this from all branches of government.
The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an extra-budgetary fund, an enterprise or an institution, etc.
The control function of state and municipal finance is implemented in the following main areas:
1) control over the correct and timely transfer of funds to centralized funds;
2) control over compliance with the specified parameters of centralized funds, taking into account the needs of industrial and social development;
3) control over the targeted and efficient use of financial resources.
The targeted and effective use of financial resources is controlled on the basis of the compiled planned and reporting estimates for the formation and spending of monetary funds.
2.3. Principles and role of state and municipal finance
The state of state and municipal finances is one of the main indicators of the stability of the economy and the perfection of the social system. The budget provides funding for the most important investment programs, ecology, defense, etc.
State and municipal finance is focused on the following basic principles:
unity of the legislative and regulatory framework;
openness and transparency;
delineation of powers and subjects of jurisdiction;
target orientation;
scientific approach to the implementation of the intended goals;
efficiency and rationality;
manageability of financial flows on a centralized basis.
The achievement of goals is set by the development strategy. Financial strategy determines the possibility of a balanced management of the valuation of material and technical means and monetary resources at the disposal of the state and municipal sectors of the economy.
Of particular importance is the definition the role of finance in reforming the Russian economy, which can be reduced to three decisive factors:
1) economic stabilization;
2) adaptation to market transformations;
3) stimulating investment activity.
1. Economic stabilization at the macro level is inseparable from the general financial stabilization in the economy. Therefore, monitoring macroeconomic indicators allows us to identify the real situation in the financial sector. Of the macroeconomic indicators, the level of the budget deficit, the course of budget execution, the level of debt of enterprises to the budget and counterparties, the level of inflation, the refinancing rate of the Central Bank of the Russian Federation, changes in the exchange rate, etc. are of decisive importance. Financial stability means the availability of stable sources of financing, the possibility of raising funds in the market capital, accumulation of resources for the expansion of production and development of the public sector of the economy.
2 ... Financial adaptation to market transformations is expressed in the fact that the state and enterprises are full participants in the capital market, acting as lenders or borrowers. Organization of finance allows you to quickly respond to changes in the market situation, adapt to new conditions, use alternative financial instruments, fulfill tax and other monetary obligations.
Reforming the economy for the purpose of financial adaptation includes:
- liberalization of prices;
- privatization;
- social transformation;
- integration into the world system.
The transformation of economic relations means a transition to a new type of economic growth based on low inflation and unemployment, external economic balance, a favorable ecological environment and a fairly high standard of living. The goal of transformation is to create socially oriented market economy.
3 ... Investment activity the state and each enterprise is the result and indicator of economic growth. Finance plays a decisive role in attracting investment, creating favorable conditions for the functioning of the capital market. With regard to investment activity, the principle of strategic orientation is decisive and the task of finance is the need for its implementation.