The function performed by the state budget. Budget functions
12.2. The state budget, its functions and structure
The main link in the financial system is the state budget. The state budget- a centralized fund of monetary resources, which is used by the government to perform the corresponding functions of the state at the micro and macro levels. The totality of the national budget and the budgets of administrative - territorial units is budget system countries. Its structure depends on the state structure. In unitary countries, the budget system has a two-tier structure - state and local budgets(budgets of cities, districts of regions). In countries with a federal state structure, there is an intermediate link - the budgets of states, lands, republics. In general, the budgets of various levels are consolidated budget countries.
The state budget fulfills the main functions:
Distributive- ensures the formation and spending of state funds to meet national needs.
Control- guarantees the formation of funds and their spending for the intended purpose.
The state budget consists of revenues and expenditures.
Revenue structure:
Legal entity taxes.
Individual taxes.
Government loans.
Other income:
non-tax payments and fees,
receipts from the sale of lottery tickets,
proceeds from the sale of state property, etc.
Consumable structure:
Social and cultural activities.
Economic activity.
Subsidies local budgets regions and the city of Minsk.
Defense and state control.
Replenishment of government stocks and reserves.
Foreign economic.
Budgetary funds include extrabudgetary funds, which quantitatively are not included in the state budget, but according to the principle of distribution and use are equivalent to the state budget expenditures. Their presence is due to the need to attract additional funds for specific purposes. Extrabudgetary funds are at the disposal of central and local authorities and are grouped by target destination.
12. 3. Budget deficit and budget surplus.
State debt
When government spending exceeds revenues, then there is budget deficit, otherwise - surplus (surplus).
Causes budget deficit:
Expansion of the socio-economic functions of the state.
Increased management costs.
Increased defense spending.
Periodic downturns in social production.
Deficit state budget financed due to:
Loans from the population, that is, through the sale of interest-bearing securities, thus the national debt is formed.
Issuing new money, which is a more stimulating way of financing deficit spending than expanding loans.
Distinguish:
Structural deficiency the state budget, which is the excess of government spending over taxes in full employment (this is the difference between the expenditure and revenue parts of the budget in full employment).
Cyclic deficit the state budget is the difference between the actual budget deficit and the structural deficit that occurs as a result of a cyclical decline in production.
State debt- This is the total amount of the state's debt to its own and foreign individuals and legal entities. It becomes inevitable when there is a budget deficit. Public debt is quantitatively defined as the difference between accumulated over a certain period of time budget deficits and budgetary surpluses. Critical level public debt the World Bank estimates it is 50% of GDP.
Public debt is subdivided on the:
Interior- the state's debt to its citizens. It is formed as a result of the issuance of debt obligations, wage arrears and transfer payments.
External- the result of borrowing from outside the state. Public debt service leads to the following economic impact:
The level of consumption for the population of a given country is decreasing.
Due to growth interest rate private capital is being squeezed out, which limits economic growth.
The level of taxes is increasing, which reduces economic activity.
The national income is redistributed in favor of the holders of government bonds.
Repayment of public debt and interest on it, that is, public debt management, carried out at the expense of:
Refinancing, that is, the issuance of new loans to cover the arrears of old loans.
Conversions, that is, changes in the terms of the loan in relation to the yield (change in interest rates).
Consolidation, that is, changes in terms of maturity (transformation of short-term bonds into medium-term and long-term).
Budget as a phenomenon
Definition 1
The budget is a complex, multifaceted phenomenon that needs to be considered from different points. It presents the plan of the State and consists of two parts: revenue and expenditure. Has the force of law and is an expression financial relations, and also bears the function of a fund of funds.
The value of the budget is determined by the relations of turnover in society. Its task is to redistribute funds and their partial accumulation in the relevant State funds and cover the necessary Government spending.
Budget functions
Budget functions are embedded in their essence and are expressed through properties:
- The distribution function is expressed in the formation and use of centralized funds of funds corresponding to different levels of government of State and local government. With the help of the budget, the State has the ability to regulate the country's economic activity, the development of territories and various industries, as well as the social sphere. By means of regulation, the State purposefully increases or restrains the rate of growth of production, increases or decreases the rate of growth of capital, and changes the structure of supply and demand.
- The redistributive function manifests itself directly at the stages of income generation and the distribution of budgetary resources. In the process of budgeting, a part of the GDP is withdrawn in favor of the State, which is redistributed between the needy areas of the economy.
- Regulatory and incentive functions are manifested through tax revenues and expenditures. They act as a tool to stimulate the economy and investment, and increase production efficiency.
- The social function is the social orientation of budget funds. This is manifested in the support of society, primarily the least protected segments of the population, health care institutions, education, culture and housing.
- The planning function determines the budgetary policy, goals, objectives and ways to achieve them. Distributes powers between the authorities. Determines the needs for funds in order to ensure the functions assigned to the relevant authorities to solve the assigned tasks. Develops ways of developing budgets based on calculated and projected data. Development of draft budgets, as well as activities to ensure the implementation of the budget.
- The function of organizing the budget involves determining the structure of the budget and its classification, the procedure for drawing up, considering and approving budgets. Provides a selection of appropriate credit institutions from the standpoint of ensuring budgets the necessary funds... Determines the bodies responsible for the development of standards defining budget structures in accordance with the tasks.
- The control function interacts with the distribution function and stipulates the possibility and obligation of the authorities to control the execution of budgets.
The need for a budget
The existence of the budget is inherently determined by the existing system of commodity-money relations, in which the State can perform its functions only with sufficient funding. The budget acts as an accumulating fund, in which, due to the accumulation of funds from all sectors of the economy, the amount necessary for performing the functions of the State is formed and channeled in the future. The budget allows to ensure social justice in society and increases the efficiency of the use of economic resources.
Remark 1
IN last years there is also a stimulating function of the budget, expressed in the allocation of funds to priority and well-developing sectors and encouraging economic entities to efficient economic use, which contributes to the mobilization of domestic economic funds.
Budget functions embedded in their entities, which are manifested through their properties.
The main functions of budgets are:
Distribution function of the budget;
Redistributive function of GDP;
Regulatory function;
Stimulating function;
Social function;
Scheduling function;
Organization function;
Control function.
Rice. one. Budget functions
Budget allocation function manifests itself directly through the formation and use of centralized funds of funds at the levels of government and local government. Important in budget allocation allocated to funds: reserve, development, support of the constituent entities of the Russian Federation.
Through budgets and funds, the state regulates the economic life of the country, the economic development of territories and industries, the social sphere. By regulating the economic sphere and relations in it, the state purposefully increases or restrains the rate of growth of production, accelerates or decreases the growth of capital and private savings, changes the structure of supply and demand, and regulates the social security of members of society.
Redistributive function of the budget national income and GDP is manifested directly at the stages of formation of budget revenues and distribution of budgetary resources. In the process formation of budget revenues there is a compulsory withdrawal in favor of the state of a part of the GDP created in the process of social reproduction. Across federal budget about 20% of GDP is redistributed.
State budget funds primarily aimed at financing structural adjustment economic sphere, comprehensive target programs, building up scientific and technical potential and measures for social protection of the poorest strata of the population.
Budget revenues of all levels of the budget system differ significantly in their payers, objects of taxation, methods of withdrawal of income and timing of payment. At the same time, they are united by unity, as they pursue common goal- formation of the revenue side of budgets of various levels. Budget revenues can be tax and non-tax in nature.
Across budget expenditures budget recipients are financed - organizations in the production and non-production spheres. In the budgets of any level of the budget system, only the size of budget expenditures is determined by cost items, and budget recipients are involved in the direct processes of spending budget resources. At the expense of budget expenditures there is a redistribution of budgetary resources at the levels of the budgetary system through a system of grants, subsidies, subventions and loans.
Budget expenditures are mostly irrevocable. Only credits and loans work on a repayable basis. The structure of budget expenditures is set annually budget plan(estimate) and depends, as well as budget revenues, from the economic situation and the priorities of the state.
Regulatory and stimulating functions of budgets manifest themselves directly through tax revenues and budget expenditures. That is, tax revenues and budget expenditures act as a tool for regulating and stimulating the economy and investment, increasing production efficiency, primarily the most important sectors of the national economy, nuclear energy, mechanical engineering, agro-industrial complex, housing construction.
Social function of the budget lies in the fact that budgetary funds contain a social orientation, manifested in the direct support of members of society, primarily in support of the least protected segments of the population, health care institutions, education, culture, housing and communal services.
Budget planning function suggests:
Determination of budgetary policy, goals, objectives and the choice of ways to achieve them;
Delineation of powers and subjects of jurisdiction between the authorities at all levels of the budgetary system;
Determination of the need for funds in order to financially support the functions assigned to the authorities, and to solve the problems facing society and the state;
Development and substantiation of optimal ways of budget development in order to develop proposals for strengthening budgets based on forecast (calculated) data;
Development and justification of draft budgets, their revenues and expenditures in relation to the budgetary policy defined in the Address of the President of the Russian Federation to the Federal Assembly of the Russian Federation for the next financial year;
Development of specific measures to ensure the execution of the budget in the interests of implementing the budgetary policy for the next financial year.
Budget organization function suggests:
Determination of the budgetary structure and budget classification;
Determination of the procedure for drawing up, considering, approving and executing budgets;
Selection of credit institutions that provide the budget process from the standpoint of providing budgets with financial resources;
Delineation of powers of legislative and executive bodies of power at all levels of the budgetary system;
Determination of the bodies responsible for the development of criteria and standards that determine the structure and volume of budgets and meet the needs and objectives of budgetary policy;
Determination of the structure of the control bodies responsible for the formation and execution of budgets.
Control function of budgets acts simultaneously with distribution and assumes the possibility and obligation of state and local control bodies over the receipt and use of budgetary funds.
Budget control function has a specific form of manifestation and is implemented in the following areas:
Control over the correct and timely transfer of revenues to budgets and extra-budgetary funds;
Control over targeted, economical and efficient use of budgetary resources and extra-budgetary funds.
The main purpose of the budget is that it allows you to accumulate funds in the hands of the state and use them to finance various programs. However, in addition to this most important task, the budget also performs a number of other functions. These include:
Public functions:
1. Control function. The budget allows to exercise control over the actions of the executive branch, which can be carried out in various forms - by specialized bodies endowed with control powers (for example, the Accounts Chamber), by a parent organization, etc. In countries with developed democratic traditions, social control is of great importance. for the development of which special programs are adopted to increase the transparency of the budget system. The budget is passed as law and thus imposes restrictions on the actions of the government. It legislatively establishes the limits of certain items of income and expenses, which the state must strictly observe when conducting social economic policy.
2. Information function. The budget is an indicator of the current state of the country's economy, social sphere, and political situation. The structure of its revenue and expenditure side allows you to judge the priorities public policy, the scale of influence of individual interest groups on it. Moreover, since the law on the budget for the next year is drawn up as a planning document, it acts as a forecast of the future economic situation. Its development is accompanied by predictive calculations of the main indicators of the country's development, which are guided not only government agencies, but also organizations of the non-state sector of the economy, as well as ordinary citizens. Planned and forecast indicators laid down in the law on the budget form certain expectations in society, which can be both positive and negative.
3. Institutionalization of social preferences. In democratic states, the adoption of a budget law is necessarily preceded by its consideration in parliament. At this stage, adjustments are made to the draft law drawn up by the government, taking into account the views of deputies representing the interests of their voters. Thus, the structure of the budget reflects public preferences for public policy. Through the mechanisms of representative democracy, these preferences are embodied in specific figures for income or expenditure items.
This budget function in different countries implemented in different ways. It depends on how well developed are the procedures for the participation of citizens and their representatives in the development of the law on the budget and control over its implementation. The established order is important budget process, the degree of real participation of the representative authorities in it, as well as the control of voters over the actions of the elected bodies.
4. Regulating function. In conditions market economy the main tool state regulation is an financial system, the central link of which is the budget. Any significant decisions in the field of economic policy must be financially backed, therefore, they are supported by corresponding budgetary expenditures.
By spending on health care, education, social security, the state regulates social development and the standard of living of the country's population. With the help of expenditures on support of certain sectors of the economy, the production of socially significant goods and services is ensured, which from the point of view of the market may be ineffective. The budget is a tool regional policy, since at the expense of donor regions, support is provided to depressed and crisis areas that have insufficient economic potential or are experiencing the consequences of emergency situations.
The impact of the budget is not limited public sector economy and goes far beyond it. Regulatory influence is exerted not only by budget expenditures, but also by taxes that stimulate or hinder the development of certain industries or spheres of activity.
The named functions of the budget are objective in nature and take place in any country in the world, regardless of the level of development of democratic institutions and the nature of state economic policy. Some of them may contradict each other. For example, for the successful implementation of the control and information function, the budget must be stable, and the regulatory function, on the contrary, involves its change depending on the current conditions of social and economic development... The choice between budget stability or flexibility is determined by the objectives of state policy, established traditions and social preferences, as well as a number of other factors.
Functions of the state budget as an economic category:
1. Distribution (redistribution). Due to the distribution function, funds are concentrated in the hands of the state and used to meet national needs.
The content of the distribution function of the budget is determined by the processes of redistribution of financial resources between different divisions of social production. None of the other links of finance implements such a multi-type (intersectoral, inter-territorial, etc.) and multi-level (federal, republican, regional, city, etc.) redistribution of funds as the budget.
The scope of the distributive function is determined by the fact that almost all participants in social production enter into relations with the budget. The main object of budgetary reallocation is net income; however, this does not exclude the possibility of redistribution through the budget and part of the cost of the required product, and sometimes the national wealth.
2. Control function. Allows you to find out how timely and complete financial resources come at the disposal of the state, how are the proportions in the distribution of budgetary funds actually formed, whether they are effectively used. The control function is that the budget objectively - through the formation and use of the fund of state funds - reflects economic processes flowing in the structural links of the economy. Thanks to this property, the budget can "signal" how the state receives financial resources from various economic entities, whether the size of the centralized resources of the state corresponds to the volume of its needs, etc. The control function is based on the movement of budgetary resources, reflected in the corresponding indicators of budgetary receipts and expenditure assignments.
Functions of the state budget as a financial plan:
1. Redistribution of GDP. The distribution function of the budget is manifested through the formation and use of centralized funds of funds at the levels of state and territorial power and administration. IN developed countries up to 50% of GDP is distributed through budgets of different levels;
2. State regulation and stimulation of the economy. With the help of the budget, the state regulates the economic life of the country, economic relations, directing budget funds to support or develop industries and regions. By regulating economic relations in this way, the state is able to purposefully strengthen or restrain the rate of production, accelerate or weaken the growth of capital and private savings, and change the structure of demand and consumption.
3. Financial support of the budgetary sphere and the implementation of social policy of the state. The social orientation of budget funds is of great importance. In social policy, the main priorities are to support the least protected layers of the population, as well as the functioning of health care, education and culture institutions, and the solution of the housing problem.
4. Control over the formation and use of centralized funds of funds. In the process of budget planning and budget execution, control is exercised over the financial and economic activities of the national economy. In the conditions of formation market relations the importance of budgetary control in the process of resource mobilization and their use is increasing.
Thus, the functions of the state budget can be conditionally divided into 3 categories: public functions (control, information, institutionalization of public preferences, regulating), functions of the state budget as an economic category (distribution and control), functions of the state budget as a financial plan (redistribution of GDP, state regulation and stimulation of the economy, financial support of the budgetary sphere and the implementation of social policy of the state, control over the formation and use of centralized funds).
The functions of the state budget are carried out on the basis of the use budget mechanism, which is a real embodiment of budgetary policy and reflects the specific focus of budgetary relations on solving economic and social problems.
The budget performs the following tasks:
1) redistribution of national income;
2) state regulation and stimulation of the economy;
3) financial support of the social sphere and the implementation of social policy of the state;
4) control over the formation and use of centralized funds of funds. Distribution the function of the budget is manifested through the formation and use of centralized funds of funds at the levels of state and territorial power and administration. With the help of the budget, the state regulates the economic life of the country, economic relations, directing budget funds to support or develop industries and regions. By regulating economic relations in this way, the state is able to purposefully accelerate or restrain the rate of production, the growth of capital and private savings, and change the structure of demand and consumption.
Redistribution national income through the budget has two interconnected, proceeding simultaneously and continuously stages: l) the formation of budget revenues; 2) the use of budget funds (budget expenditures).
In the course of the formation of budget revenues and the use of budget funds, the tasks state regulation economic and social processes in the country.
By centralizing part of the financial resources in the budget, the state is able to provide in cash nationwide needs - the accelerated development of progressive sectors of the national economy, the reproduction of skilled labor, the development of science and technology, and ensuring the country's defense capability.
Through the budget, the national income is redistributed across the territory, as well as from production to non-production sphere, for which purpose, at the expense of the budget, monetary funds are created to finance the needs in the field of health care, education, culture, management, and defense. Through budgets by budget financing financial resources are redistributed between industries production sphere for the purpose of their proportional development. Through the budget, inter-territorial and inter-sectoral redistribution of national income is carried out. Thus, the interests of the country's economic development and the interests of the proportional development of the regions are respected.
An important role in local economic and cultural development is played by budgetary regulation. With the help of budgetary regulation, inter-territorial distribution of funds is carried out on a large scale, the allocation of the necessary sources of income to regional and local budgets.
The role of the budget in the non-production sphere is great, where it is the main source of funding. It is through the state budget that financing of social and cultural events, management and defense comes.
Finally, budgets fulfill control a function that implies an opportunity and a duty state control for the receipt and use of budgetary funds.