The main elements of the state budget. The state budget as the main element of the economic policy of the state
Budget - This is a specific detailed plan for the collection and use of resources by economic agents for a certain period.
- a document describing the income and expenses of a particular state, as a rule, for a year (from January 1 to December 31).
Functions of the state budget:
- Regulates state cash flows, strengthens relations between the center and the subjects of the federation
- Legally controls government actions
- Carries information about the intentions of the government to participants in economic activity
- Defines the parameters of economic policy and sets the scope for possible government action
Due to the special importance of the state budget for all spheres of economic life, its preparation, approval and implementation take place at the level of laws. However, the state budget itself is a law.
Almost every economic institution (enterprise, company, industry, bank, economic and financial funds, etc.) has a plan for collecting income and using expenses. All socio-political institutions (state organizations, political parties, etc.) have budgets.
The state budget serves as a prerequisite and financial basis for the functioning of the state and the implementation of those functions that the company authorized to carry out it. With the help of the budget, financial regulation issues are solved at the macro level and across the economy. Economic importance The budget consists in the fact that it forms a significant part of the final demand (at the expense of its funds a large part of the income from the population is generated, large volumes of production are acquired, and state reserves are created). Significant financial flows pass through the budget; it directly affects the formation of important economic indicators (Fig. 1):
Revenues of the state budget are the final stage of cash flows coming from the real sector and other large areas of financial relations, and expenditures of the state budget are the starting point for the movement of state resources for the needs outlined by the state and society (Fig. 2).
Fig. 1. The impact of the state budget on key economic indicators:- Volume of production
- Investment
- Real income
The state budget is the main financial plan of the country, having the force of law.
The budget is a way of redistributing the cash incomes of the population, enterprises and other legal entities in the interests of financing government and other public expenses.
State budget revenues:
- Taxes on income of legal entities and individuals
- Revenues from the real sector (income tax)
- Indirect taxes and excise taxes
- Duties and non-tax fees
- Regional and local taxes
State budget expenditures:
- Industry
- Social politics
- Agriculture
- Public administration
- International activity
- Defense
- Law enforcement
- The science
- Healthcare
Balanced budget - a budget in which the ratio of income to expenses is equal.
If the income and expenses in the budget vary, then the budget deficit or surplus.
The expenditures of state budgets are made in the directions and in the amounts determined by federal law, laws and other regulatory legal acts of subjects of state power. State budget expenditures can be classified according to various featuredthe most important of which is financing state of their functions: economic, social, defense and so forth
The following expenses are financed from the federal budget:- content of authorities;
- national defense;
- science financing;
- real sector financing;
- formation of state reserves;
- servicing and repayment of public debt (internal and external);
- regulation of the financial potential of state entities (federal or unitary).
- state support for industries (construction, agriculture, transport, communications);
- law enforcement;
- ensuring fire safety;
- science and socio-cultural events.
The basic principle of differentiating costs between budgets is their adequacy to the powers assigned to the corresponding level of government.
Budget expenditures are also divided according to the principle of their participation in the process of expanded reproduction.
According to the principle of participation in the expanded reproduction process, budget expenditures are divided into current and capital expenditures.
Current expenses - this:
- maintenance of government, administration and law enforcement agencies;
- current expenditures on defense, science, social services;
- separate compensation costs by industry.
Capital expenditures are divided into:
- new construction;
- reconstruction of important state and municipal property.
Among priority state budget expenditures are allocated:
- social expenses;
- military expenses;
- content of the judicial system;
- education and healthcare.
The state as a subject of the economy carries out certain expenses and has certain incomes.
The bulk of government spending goes through the state budget.
The draft state budget is annually discussed and adopted by the legislative body, in Russia it is the State Duma. In addition to the state budget, the budget system of the country includes the budgets of the subjects of the federation and the budgets of cities and municipalities. Drafts of these budgets are discussed and adopted by regional and local legislative bodies.
The following principles are possible for building relationships between budgets of different levels (federal, budgets of constituent entities of the Federation, local budgets):
The principle of democratic centralism involves the inclusion of budgets of all levels in the state budget (until 1991 the state budget of the RSFSR, like the budgets of other union republics, were included in the state budget of the USSR. Thus, it included all the budgets of the country, rural and village budgets).
The principle of fiscal federalism assumes that budgets of lower levels function autonomously, i.e. do not include their income and expenses in budgets of lower levels. At the same time, the possibility of redistributing funds between budgets is not ruled out.
To achieve a certain balance of budgets of various levels, the state resorts to such financial instruments as:
subventions- funds for special purposes;
subsidies- fixed amounts of cash allocated to replenish income and minimize budget deficits of the lower level (negative tax):
credit resources - funds transferred on a reimbursable basis at or without interest.
The state budget reflects the monetary relations that the state has with legal entities and individuals regarding the redistribution of national income in connection with the formation and use of funds to finance the economy, the implementation of social policies, the development of science, culture, education, the defense of the country and the management of society. Thus, the financial relations that arise between organizations and the population with the state are budgetary relations. The budget allows you to focus the financial resources of the state on those sectors of the economy that are most important at this historical stage.
In modern conditions, the budget is also a powerful means of state regulation of the economy, the impact on the economic situation, an instrument for the implementation of anti-crisis measures.
The essence of the budget is implemented through its functions.
Budget allocation function - means the concentration of funds in the hands of the state and their use in order to meet national needs.
Budget control function - lies in the fact that the budget objectively, through the formation and use of the state funds fund, reflects the economic processes taking place in the structural links of the economy.
The budget as a plan of income and expenses consists of two parts - revenue and expenditure. Budget revenues and expenses are special economic forms on the basis of which the redistribution of financial resources created in society takes place.
The system of budget revenues is based on taxes and fees.
The budget finances the national economy, social and cultural events, and the country's defense.
The largest part of expenditures on the economy is financing from the budget of the most important and major economic programs, implementation of investment policies, and environmental protection measures.
Significant budgetary funds spent on socio-cultural activities are aimed at developing education, maintaining a culture, providing medical services to the population and providing social support to the population that needs it.
As part of defense spending, the main place is occupied by the purchase of weapons and military equipment, the costs of the current maintenance of the armed forces, the financing of military research and development, and military construction.
Government spending tends to increase. German government spending growth predicted by German economist A. Wagner, former adviser to German Chancellor Otto von Bismarck back in the 19th century. Wagner formulated law of increasing state activityaccording to which government spending in countries where industry is developing should grow faster than national income.
The main reasons for the increase in state activity:
The complication of the entire system of socio-economic relations, which increases the number of causes of all kinds of friction in society (the state needs more and more funds to maintain law enforcement agencies to maintain stability and efficiency in the economy, maintain law and order, etc.).
The development of new technologies that create the need for large amounts of capital necessary for production, which can be provided by state corporations.
Growing government activity in areas such as health and education, where the benefits of providing services are not susceptible to economic valuation.
Government services, according to Wagner, have become a high-quality good, i.e. the elasticity of demand for government spending by households has become greater than 1. In other words, each percent increase in household income leads to morethan a 1% increase in household demand for government spending ( G) Therefore, with an increase in per capita income, the share G in GDP also tends to increase.
The state, realizing its functions through the state budget, relies on the following principles of the organizational structure of the system of public spending:
- principle of targeting budgetary funds - means that government spending is carried out strictly for their intended purpose in accordance with the directions of spending provided for by financial plans;
- irrevocability principle- means that funds used for various purposes do not need to be reimbursed. This method of providing funds is called " budget financing ".
- saving principle - means that minimizing costs relative to the result, or rational, appropriate use of funds.
The ideal execution of the state budget is the full coverage of expenses by income and the formation of a balance of funds, i.e. excess of income over expenses. Full compliance of income over expenses characterizes a balanced budget. Some excess of income over expenses is called « budget surplus» . In this case, they say that the state has budget surplus. However, in practice the reverse situation and education are more often budget deficit.
Budget deficit - this is the excess of budget expenditures over revenues: Budget Deficit \u003d Expenses - Revenues |
The size of the budget deficit is influenced by fluctuations in the volume of national output. During periods of crisis, depression, when GDP is declining, the budget is usually reduced with a deficit, while during periods of recovery there is a positive budget balance.
The reasons for these changes in the budget balance lie in the fact that during recessions tax revenues are reduced. At the same time, during periods of recession, some types of government spending increase (unemployment benefits and other social benefits). The relationship between the budget and GDP can be illustrated with the help of Fig. 10.1.
Fig. 10.1. The relationship between budget and GDP
Suppose that government spending is 200 monetary units and the tax rate is 0.2. Income Y \u003d 0 no tax revenue. When revenues increase to 1000 units, tax revenues become equal to government spending (200 units). With revenues of 1,500 units, government spending will be 300 units, etc. Thus, with a low level of income, there is a deficit of the state budget, with a high one - an excess of the budget - a surplus.
Which is better: surplus or deficit? If there is an excess in the state budget, i.e. Since the state levies more taxes than it pays, this means that there are more withdrawals from macroeconomic turnover than injections. The result is a reduction in GDP. On the contrary, if the state budget is in deficit, i.e. his expenses exceed revenues, injections become more than seizures. This means that purchasing power is increasing and GDP is increasing. Thus, it turns out that deficit is not an indicator of poor housekeeping. Nevertheless, the state budget deficit is an ambiguous phenomenon.
There are two main points of view on the formation of the state budget. The first is that the budget should be balanced annually. The second point of view allows for some periods the existence of a budget deficit 1, it only requires that after a number of years (3-5) a balance be ensured. According to established international standards, the budget deficit should not exceed 3% of GDP.
Representatives of the Keynesian school argue that the budget deficit is a blessing, since its presence makes it possible to increase aggregate demand through scarce financing of government spending. If the state pays more money than it receives, then this increases the purchasing power in society - people buy more, enterprises sell more, increasing the employment of resources. On the other hand, the budget deficit is the dissatisfaction of the needs of society, which gives rise to various negative economic phenomena.
The reasons for the budget deficit may be different.
Firstly, the deficit may be associated with the need for large government investments in the development of the economy and reflect the natural processes of regulating the economic situation.
Secondly, the deficit may arise as a result of emergency circumstances (wars, natural disasters), when funds are required in excess of the planned and usual results, it is not enough.
The budget deficit arising for these two reasons is called “ structural budget deficit».
Thirdly, the cause of the deficit may be a cyclical drop in production as a manifestation of crisis in the economy, the inability of the government to control the financial situation in the country. This deficit is called " cyclical budget deficit". It clearly represents an undesirable and negative phenomenon in the economy.
Where can the government get funds to finance the budget deficit?
There are four ways:
by additional issue of money;
due to loans from the Central Bank;
through borrowing from the population and firms;
through external borrowing.
Each of these methods has its pros and cons.
The advantages of the first two are that their use makes it possible to avoid crowding out private investments with state ones, therefore business expenses and personal consumption will not decrease. However, their use is fraught with an increase in inflation.
In the case of financing the state budget deficit by issuing money, the state receives special income (income from printing money seigniorage) It occurs when excess growth in the money supply is pleased with the increase in real GNP, which leads to an increase in the average price level. As a result of this, all economic agents pay a kind of tax, and part of the income is redistributed in favor of the state.
Recall that with a significant budget deficit, which is covered by additional emissions, hyperinflation may occur. With such inflation, there is a sharp devaluation of all incomes, including tax revenues, which further exacerbates the problem of the budget deficit. Thus, hyperinflation, on the one hand, arises as a result of the budget deficit, on the other hand, exacerbates it even more. This phenomenon is called tanzi-Oliver effect 2 .
This effect occurs because during the period of hyperinflation, revenues from direct taxes to the budget manage to depreciate in the period between the receipt of income and the payment of tax.
If the budget deficit is financed by issuing government loans, then this leads to an increase in the market rate of bank interest. And an increase in the interest rate leads to a rise in the cost of credit and to a decrease in investment.
According to the Budget Code of the Russian Federation, the budget deficit of a constituent entity of the Russian Federation cannot exceed 15% of the budget revenues of a constituent entity without taking into account financial assistance from the federal budget.
The size of the local budget deficit, approved by the regulatory act of the representative body of local self-government, cannot exceed 10% of the local budget revenues without taking into account financial assistance from the federal budget and the budget of the constituent entity of the Russian Federation.
If in the process of budget execution there is an excess of the limit level of the deficit or a significant decrease in the revenues of budget revenue sources, then the mechanism of sequestration of 3 expenditures is introduced, which consists in a proportional decrease in government spending (by 5, 10, 15 and so on) per month for all budget items in for the remaining time of the current financial year. Protected articles are not subject to sequestration (their composition is determined by the Federal Assembly of the Russian Federation, as well as by the representative authorities of the constituent entities of the Russian Federation).
Sources of financing the budget deficit are approved by the legislative (representative) authorities in the law on the budget for the next financial year for the main types of funds raised.
Bank of Russia loans, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, municipalities at their initial placement, cannot be sources of financing the budget deficit.
Sources of financing the federal budget deficit are:
1) internal sources in the following forms:
Loans received from credit organizations in the currency of the Russian Federation;
Government loans by issuing securities on behalf of the Russian Federation;
Budget loans and budget loans received from budgets of other levels of the budget system;
Proceeds from the sale of property owned by the state;
The amount of excess of income over expenditures on state reserves and reserves;
Changes in fund balances in accounts for accounting for federal budget funds;
2) external sources in the following forms:
State loans carried out in foreign currency by issuing securities on behalf of the Russian Federation;
Loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency.
If there is a budget deficit, the priority financing shall be the expenses included in the budget of current expenses. The size of the federal budget deficit cannot exceed the total amount of budget investments and expenses on servicing the state debt of the Russian Federation in the corresponding financial year.
As a result of state loans, state debt (Fig. 10.2).
As of January 1, 2009, Russia's state debt amounted to $ 40.6 billion, which amounted to 2.4% of GDP.
Fig. 10.2. The structure of total public debt
It can take forms internal and external debt. Typically, loans are placed domestically, but some of them can be placed abroad.
It exists as the sum of issued and outstanding debt obligations.
The part that the state takes to cover the state budget deficit abroad will, therefore, be included in both state and foreign debt. This is the most difficult debt, since the state is bound by a number of obligations on it, on the one hand, and, on the other hand, when paying off it, you have to pay with valuable goods and pay high interest.
It is important that the debt itself is not even its absolute value, although this is also significant, but its ratio to GDP. There are international criteria regarding the size of public debt. So, according to the criterion of the Maastricht Treaty of 1992 4. (To the Maastricht Standard) the value of total public debt (internal and external) should not exceed 60% of GDP, and the state budget deficit should not exceed 3% of GDP. There are also criteria for external loans:
Debt to export - not more than 200%;
The ratio of the cost of servicing external debt to export is not more than 15-20%.
The economic consequences of public debt can be reduced to the following four points:
the growth of public debt reduces the stock of capital in the economy: money could be invested not in government bonds, but in real investments, so this leads to crowding out private capital;
interest payments on government debt increase income inequality: those who own bonds will become even richer;
an increase in taxes to cover public debt acts as an anti-stimulus to business activity: the desire to work decreases, output decreases;
when the government takes a loan to refinance a debt or pay interest on it, it leads to an increase in the interest rate, which reduces the propensity to invest. In the future, a country may find itself with a reduced production potential.
The presence of public debt and its negative consequences necessitate debt management.
Repayment of state loans and interest payments are made either from the budget or by refinancing - issuing new loans in order to pay off the holders of bonds of the old loan.
Management methods public debt include:
conversion - a change in the terms of the loan regarding profitability, i.e. decrease or increase in the amount of interest paid on loans. In this case, foreign creditors are invited to purchase real estate, to participate in the joint investment of capital, privatization of state property. Private national firms of the creditor country redeem the obligations of the debtor country from their state or bank and, with mutual consent, use them to acquire property;
consolidation - a change in the loan conditions associated with their terms (the conversion of short-term liabilities into medium and long-term ones). It is possible only with the mutual consent of the borrower government and the creditor government.
An extreme measure that the state can take when budgetary funds are already in short supply, it can declare refusal to pay interest and pay off its obligations to internal or external investors, i.e. announce sovereign default. And this should be understood as state bankruptcy 5.
So, large budget deficits and generated public debt, although not fatal to the economy, can create a number of serious problems. Therefore, at present, the governments of most developed countries are forming a budgetary policy, which envisages both improving tax policy and reducing public spending, including through social allocations.
The budget is an important link in the country's financial system. Reflecting the content of the processes of production and distribution of the social product and national income, the budget is an economic form of education and use of the main centralized fund of state funds.
The budget annually centralizes part of the cash income of enterprises and the population. The accumulated funds are distributed and used to finance the costs of the implementation of the functions of the state. At the expense of budgetary funds, national needs are met, certain areas of activity are financed - defense, management, public order and state security, basic science, etc. In addition, the collective needs are met through the budget by financing the costs of education, healthcare, culture and art.
The state budget actively affects the economy as a whole, since it acts as the budget of the entire national economy. A large role is played by the state budget in the field of material production, acting as a stimulator of its growth. The budget funds are used to ensure both the individual (within the framework of individual enterprises) and public (across the national economy) circulation of funds. Budget financing of capital investments and working capital at existing and newly commissioned enterprises, ensuring other expenses allows the budget to be included in the individual circulation of funds at individual enterprises, contributing to its continuity and uniformity See: Grigoryev L.A. The financial system and economic development // World Economy and International Relations. - 2003. - No. 7. - S. 65 ..
Budgetary allocations in the manufacturing sector are the main source of its functioning and further development. The bulk of institutions and organizations in this sphere do not have their own sources of income and are on budget financing.
State expenditures on education and healthcare, social insurance and social security, science, culture and art are the financial basis without which it is impossible to conduct social and cultural events on a national scale. Of great importance is the budget in shaping the rational structure of non-production sectors.
Providing financial resources for the functioning of the non-production sphere, the state through the budget can form the final size of the consumption fund, influence the territorial proportions in its use.
Budget policy is the core of the state’s economic policy and reflects all its financial relationships with public institutions and citizens. When planning budget policy, the state should proceed from the need to ensure financial and social stability. Predictability of fiscal policy is a key factor in overall macroeconomic sustainability.
The state budget policy regulates financial flows between sectors of the national economy, forms state funds of monetary resources and provides solutions to socio-economic problems of providing collective and individual benefits in the form of goods and services from the resources of the budget system and state extra-budgetary funds. Its regulatory and controlling tool is the budget deficit (surplus). This is a complex financial and economic category, which reflects and manifests the proportions of the budget system, the relationship between the state revenue streams and the needs for state financing, which ensures the effective implementation of all functions of the state (regulatory and managerial, defense, social, investment, foreign economic). It is also the result and a criterion for the effectiveness of the interaction of the state with the production and social sectors, the banking system, the financial market, and the external market. See: Maltsev V.A. Financial law: textbook: for students of educational institutions of secondary vocational education / V.A. Maltsev. - 2nd ed., Rev. and add., 2007. - S. 153 ..
The main requirements for budget policy include:
1. Realism.
2. The federal budget should embody the responsibility of the state for the unconditional fulfillment of its budgetary obligations.
3. The federal budget should be an effective instrument of the policy of financial recovery of the economy, not to allow the growth of inflationary expectations.
4. It is necessary to focus on increasing revenues, not due to an increase in the tax burden, but due to a more resolute implementation of measures to legalize private entrepreneurship initiatives.
5. The objectives of fiscal policy should be as detailed as possible.
For a long time, Russia's budget was in short supply. In recent years, the budget is not only not deficient, but also being formed, it is being executed with a rather large surplus.
The deficit of the state budget is not a clearly negative phenomenon. Its nature and role should be evaluated taking into account the causes, directions and goals of using mobilized additional financial resources, sources and methods of financing.
A tax cut with constant government spending, from the point of view of the consumer thinking about the future, means that the government finances this decrease due to the growth of public debt. In turn, the growth of public debt implies that in the future it will be necessary to increase taxes to cover it. Thus, in fact, taxes are not changed, but simply redistributed over time.
Taxpayers' expectations regarding future tax increases and lower revenues will result in today's consumption not increasing, only consumer savings as protecting the measure to maintain a “familiar” standard of living in the future. The increase in private savings will enable the sale of government securities designed to cover the budget deficit without increasing the interest rate.
The main parameters of budget policy at the present stage are as follows: to keep the economy from falling production and to ensure financial stabilization. For this, it is necessary, first of all, to take urgent measures to strengthen monetary circulation and the national currency as the basis for overcoming the economic crisis. Only in conditions of a steadily functioning monetary circulation, it is possible to realize relations between all participants and the constituent parts of the economic mechanism.
To strengthen the monetary circulation and the financial situation of the country, it is necessary to improve the budget mechanism, ensure state regulation of the money supply, de-dollarization, priority financing for the development of the real sector of the economy, improve the banking system; stimulate investment activity, seek to increase the share of accumulation in national income; to strengthen the budget revenue base by improving taxation and strengthening control over the completeness of tax payments; create a system of effective financial control over the efficient and targeted use of public spending; tighten control over the size of public debt. The main objectives of fiscal policy in Russia are: ensuring the full financing of the social sphere, stimulating investment activity, and unconditional fulfillment by the state of its financial obligations.
The set of incomes and expenses of the state in a strictly defined time period, drawn up in the form of a financial document with the obligatory indication of the sources and estimated sizes of cash receipts, directions and volumes of their spending.
In order to formulate the state budget, which reflects the needs of the country, which are subject to financing for their satisfaction from the state treasury, the government bodies involved in its preparation examine and approve expenditure and revenue parts, each of which is an obligatory structural form of the state budget. The state budget consists of the following levels:
- federal;
- regional;
- municipal;
- local;
- budgets of state extra-budgetary funds.
The structure of the expenditure side of the budget
Government spending, laid down in the country's budget, are formed from the aggregate of all the needs of the state in a certain time period. Funds from the state treasury are allocated to meet such national goals and interests as:
- Military. Ensuring the security and defense capability of the state.
- Economic. Formation of state property, repayment of external debt, support of entrepreneurship, replenishment of the state reserve, participation in investment projects, other expenses of an economic nature.
- Foreign policy. Expenses for carrying out international activities, participation in international associations, organizations, assemblies, ensuring international agreements and so on.
- Social. Providing insurance, pension, targeted and other payments, budget allocations for the maintenance of medical, educational, cultural and other social facilities. The costs of the formation and functioning of the state social policy.
- Public administration costs. They provide for the activities of the president of the country, authorities and other needs of state administration.
Thus, the state budget has three cost structures, including departmental, economic and functional. The main financial document of the country also includes closed items of expenditure, usually used by the Ministry of Defense, but often distributed to the socio-economic sphere.
Budget revenue structure
Government revenues represent cash received irrevocably and free of charge in accordance with state law. The revenue part is formed from:
- Tax payments, including taxes and fees on property, on foreign trade, on profit and other areas of activity, duties and deductions.
- Non-tax revenues based on business income, fines, administrative fees, sanctions and other non-tax payments.
- Income from capital transactions. Trading operations with land, state stocks, fixed capital.
State revenues that exceed expenditures form a budget surplus, in fact an excess of cash. In the case when the expenditure is more profitable, a deficit is formed.
Principles of building a state budget
In the vast majority of democracies, the preparation of the state budget is entrusted to the government; its adoption and approval is entrusted to the highest legislative bodies.
The purposeful socio-economic development of the state is ensured by the formation of various centralized funds, and, above all, the national fund of funds - state budget. Gos. the budget is the leading link in the country's financial system.
The general concept of the state budget is given in Art. 6 Budget Code of the Russian Federation . “The budget is a form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the state and local self-government”. However, the Budget Code gives too general a concept that characterizes only one side of it - as the “Form of education and spending money ..."
In the material sense state the budget is a centralized statewide. or administrative-territorial formation monetary fund, which is at the disposal of the relevant bodies of state. government and local government. Although the material content of the budget is not constant, the amount of money concentrated in it is constantly changing, the types of revenues to it, and the direction of expenses are changing.
However essence of state. the budget constant. It manifests itself in social relations associated with the concentration of cash in the budget and their use, i.e. in characterizing the essence of the budget as an economic category.
As an economic category, the budget is a set of economic (monetary) relations arising in the process of formation, planned distribution and use of the state centralized fund of funds. Budgetary relations arise between the state and its subjects (legal entities and individuals) during the formation of a centralized fund with the help of taxes, fees, duties, as well as when using a centralized budgetary fund; through economic relations annually mobilized in state. the budget a significant part of the savings of enterprises, organizations and part of the income of the population. Budget funds are allocated for financial support of the tasks and functions of the state, social and cultural events.
The concept of state. budget has a legal (legislative) aspect. From the position of legislative (legal) establishment of state. budget it is considered as a financial plan of the state.
In the sense of a legal act state. The budget is defined as follows.
The state budget- This is the main financial plan for the formation, distribution and use of the centralized monetary fund of the state, approved by the relevant legislative (representative) body of state authorities. Such a financial plan for the formation, distribution and use of a centralized fund of funds (state budget) secures the legal rights and obligations of participants in budget relations.
The main purpose of state. the budget - using financial means to create conditions for the effective development of the economy, solving national problems, strengthening defense capabilities.
The formation and use of the state budget in the Russian Federation has a number of distinctive features:
1. The preparation and use of the budget has a pronounced balance sheet character. The balance budget method allows you to outline the necessary relationship between the amount of cash income and the amount of expenses. An analysis of the evolving budget balance (in terms of income and expenses) allows us to conclude that it is necessary to change certain proportions in the plan, find additional resources or reduce certain expenses.
2. The formation and use of state. The budget is based on a combination of centralized principles with the initiative of local authorities.
3. With the help of state. the budget there is a redistribution of national income between sectors of the national economy, constituent entities of the Russian Federation and other areas.
4. A distinctive feature of state. The budget is its national economic character. The country's budget is associated with all sectors of the economy. The sectors are related to the budget both in terms of budgeting by income, and by financing them. The performance of these functions by the budget is combined with its active influence on the production process and the growth of accumulations.
Gos. the budget as an economic category expresses the system of economic relations between the state, on the one hand, enterprises, organizations and the population, on the other hand, regarding the distribution and redistribution of the aggregate social product and national income and the formation of a centralized state-wide cash fund.
Formation of state. budget occurs both at the stage of primary distribution of national income, and during its redistribution. In the process of the primary distribution of national income, the state receives at its disposal part of the net income in the form of taxes (value added tax, excise taxes, etc.). As a result of the redistribution, a part of the profits of enterprises and economic organizations of various forms of ownership comes into the budget.
The constituent elements of the state. budget:
1. State. income is part of the state. income, which in the process of distribution becomes the property of the state.
2. State. expenses - economic relations, through which the use of funds of the centralized monetary fund occurs.
3. The ratio of income and expenses.
May have three characteristics:
Costs exceed revenues \u003d budget deficit
Revenues exceed expenses \u003d budget surplus
A balanced budget \u003d the equilibrium state between expenditures and revenues.