What does not apply to the functions of the state budget. Essence, types and functions of the budget
The state budget, like the entire system of finance, has two functions - distributive (redistributive) and control.
With the help of the distribution function of the budget, funds are distributed to the production and non-production spheres, inter-territorial and inter-sectoral distribution of financial resources, special funds are formed designated purpose, there is a concentration Money in the hands of the state and their use to meet national needs.
Intersectoral and territorial distribution of national income is carried out in accordance with the needs of the economic and social development of regions and industries.
The non-productive sphere does not participate in the creation of the national income, but is its active consumer. Funds are allocated from the budget for workers in these sectors for wages, technical equipment and maintenance of non-production institutions (health care, education, etc.). Through expenditures and taxes, the state budget acts as an important institution for distribution (regulation) and stimulating the economy and investment, and increasing production efficiency. Through the budget, state support is provided to certain sectors of the economy - aircraft manufacturing, space programs, the nuclear industry, power engineering, the coal industry and some others. Such support is often associated with the implementation of highly effective and fast payback projects. Taxes are used to regulate the economy.
When distributing financial resources through the budget, the social orientation of budgetary funds is important. In social policy, the main priorities are to support the least protected segments of the population (pensioners, disabled people, students, low-income families), as well as support for healthcare, education and culture institutions, and solving the housing problem.
control function state budget is carried out in the process of formation of budget revenues and financing of sectors of the national economy. In the conditions of becoming market relations the importance of budgetary control in the process of mobilizing resources and their use is increasing. The control function of the budget allows, through the formation and use of the fund of state funds, to “signal” how the budget is received financial resources(taxes and other resources) from different business entities. The basis of the control function is the movement of budgetary resources, reflected in the relevant indicators of budget revenues and expenditure assignments.
Budgetary control has three main objectives:
- - mobilization of funds for the centralized fund of the state;
- - observance of the mode of economy when spending financial resources;
- - Improving the efficiency of spending budget funds.
The control function of the budget is also expressed in the fact that, being connected with the national economy, the budget shows the course of processes, the trends that arise there. The receipt of funds in the budget and their use show both success and shortcomings in the spheres of production and circulation. This allows you to prevent the appearance of imbalances in time. With the help of the budget, control is exercised over the rational use of financial resources.
Thus, the main functions of the state budget, as the main financial plan of the state, are: 1) the redistribution of national income and GDP, which affects state regulation and stimulation of the economy, financial support for social policy; 2) control over the formation and use of the fund of funds.
About 50% of gross income is redistributed through the state budget. domestic product. The budget is widely used for intersectoral and territorial redistribution of financial resources, taking into account the requirements of the most rational distribution of productive forces, the rise of the economy and culture of the regions of the Russian Federation. IN modern conditions the most priority are the agro-industrial, fuel and energy, military-industrial complexes and transport.
The budget contributes to the formation of a rational structure of social production, improvement of proportions, more efficient use of funds. In the process of budget planning, the most appropriate ratio between centralized and non-centralized funds of funds is established.
If we consider the budget, we will see that it consists of two interconnected parts: income, which contains the transfer of all incoming funds, and expenditure, which combines all types of costs incurred. The revenue part was created in order to provide the resources declared in the estimate. The expenditure part expresses the direction of spending the money saved in the budget.
The organization of the budgetary system of a state depends, first of all, on its state structure. The budget system has a two-level structure in states with a single mechanism. In such states, for example, the Russian Federation, the United States of America, Germany, there is a transitional link - the financial costs of the subjects of the federation, states, territories.
On the example of the budget concept of the Russian Federation, we imagine that this budget concept is economic budgets three different levels:
the first level is the national state budget and the financial costs of municipal off-budget funds;
the second level - the financial costs of the constituent entities of the Russian Federation and the financial costs of territorial municipal non-budgetary funds;
the third level - regional financial expenses.
The federal state budget and disaggregated financial costs of the constituent entities of the Russian Federation constitute the unified state budget of the Russian Federation.
The federal budget is the 1st level of the concept of the Russian Federation. The federal state budget is considered an important monetary project of the country, which is ratified by the Federal Assembly in the form of a federal law.
Actually, the Federal state budget is considered the main tool for the distribution of state earnings and GDP, through which foreign exchange funds are concentrated, which are necessary in order to coordinate the financial formation of the state and the implementation of social political figures in a single locality of the Russian Federation. The federal budget is based on the need to implement the preferred public financial strategy. Main functions federal budget are considered: the division of government earnings and GDP; popular settlement and economic revitalization; monetary provision of social politicians; monitoring the formation and consumption of a centralized fund of currency money.
The budgets of the subjects of the Russian Federation fit into the second level monetary system states. The budget of the subject of the Russian Federation is a configuration of the creation and spending of funds predetermined to ensure the tasks and functions assigned to the objects of the subject of the Russian Federation.
The budgets of the constituent entities of the Russian Federation are one of the important channels for bringing the latest consequences of production to the attention of residents. From these budgets, the formation of areas of the production sector is financed to a high degree, primarily the local light and food industries, public utilities, promotion of transport and communications.
Of particular importance are the budgets of the subjects in the organization of national and social tasks, primarily in the division of public funds for the maintenance and promotion of the social infrastructure of society.
The division of national financial resources between the levels of the budgetary system is based on the views of the independence of budgets, their state aid, and the territorial development of the keys to their income. Based on these principles, the revenues of the budgets of the constituent entities of the Russian Federation are formed at the expense of their own and regulatory sources of income.
Local budgets make up the third level budget organization Russian Federation. Art. 14 of the RF BC establishes the budget of the municipality (local budget) as a configuration for the creation and spending of financial resources that are intended to supply the tasks and functions assigned to the objects of local government.
An important task of implementing the public policy of the state has been entrusted to local administrations. Funding for public services for residents is largely carried out at the expense of local budgets.
The results of economic and social processes are displayed most clearly in the expenditure share of local budgets. The increase in expenses is associated with an increase in the level of spending on the maintenance of housing and communal and cultural and household items, on the improvement of territories, with a fresh building. also in last years The transfer of various departmental objects, such as housing, socio-cultural organizations, and consumer service organizations, to municipal ownership is widely practiced, which leads to a high increase in budget expenditures.
It should be noted that the structure of expenditures of some types of local budgets is not the same and depends on the volume of the economy and the jurisdiction of its bodies of the administration of various territorial organizations.
Budget- this is a form of formation and spending of a fund of funds intended for financial support of the tasks and functions of the state and local government.
How legal act the budget is the main financial plan for the formation, distribution and use of the centralized monetary fund of a state or municipal entity, approved by the relevant representative body of power.
The federal budget and the budgets of state off-budget funds are developed and approved in the form of laws of the constituent entities of the Russian Federation, local ones are developed and approved in the form of legal acts of representative bodies of local self-government or in the manner established by the charters of municipalities.
The functions of the budget are that they create financial basis required for activities government agencies and local governments. Budgetary funds are intended for:
- functioning of organs government controlled;
- implementation of the international activities of the state, including the implementation of international treaties, the return and provision of loans, the fulfillment of international obligations for the protection of the environment, cultural and information relations;
- national defense;
- law enforcement and state security;
- the functioning of the federal judiciary;
- fundamental research and promotion of scientific and technological progress;
- development of industry, energy and construction;
- development Agriculture, transport, road economy, informatics, market infrastructure;
- prevention and liquidation of emergency situations;
- development of education, culture, art and mass media, healthcare;
- implementation of social policy, etc.
Consolidated budget - a set of budgets of all levels of the budget system of the Russian Federation in the relevant territory (Article 6 of the RF BC).
Budget functions:
- formation of a budget fund or budget revenues. This function is manifested through the formation of centralized funds of funds at the levels of government. The main source of budget revenues is national revenues;
- expenditure of the budget fund, or financing of budget expenditures. This function assumes specific target budget spending. Through budget expenditures, the state gets the opportunity to ensure its functions, namely the production of public goods, the maintenance of law and order, issuing activities, the development of science and technology, and ensuring the country's defense capability;
- the budget performs a control function, which implies the possibility and obligation state control for the receipt and expenditure of public funds.
The role of the budget: the budget reflects the spending of funds, the redistribution of national income and GDP, and acts as an effective regulator of the country's economy and social processes.
The state budget plays an important role in the social redistribution of resources and is the main link in the state financial systems. Budget, in a general sense, it is a plan for the formation and use of financial resources to ensure the functions of a particular organization. For example, the budget of a business entity is known as the balance sheet.
The state budget - it is an annual plan of public expenditures and sources of their financial coverage.
The relationship of the budget with other parts of the financial system is regulated current legislation. The totality of all budgets that are part of the budget system of Ukraine is called the consolidated (consolidated) budget of Ukraine.
The budget device is understood as the organization and principles of building the budget system, its structure, the relationship between its individual elements and links.
The budget is compiled according to the budget classification.
Budget classification - it is one international system functional grouping of budget revenues and expenses according to homogeneous features. It provides an opportunity to compare the budget data of different budgets, to determine the nature of the regulatory actions of the state to search for profitable sources and directions for using the funds received.
fiscal(from the word Fisk - treasury, treasury)budget function consists in the financial provision of the performance by the state of the main functions that are in the sphere of its responsibility.
When performing this function, it must be remembered that the state budget is considered not only as an estimate of revenues and costs, but above all - as a way to ensure macroeconomic balance and economic growth, a financial plan that provides for the reproduction of conditions for own financing in the long term.
Regulatory function of the budget relies on the fiscal redirection of part of the resource flows in the country in accordance with the directions established by the Law on the State Budget.
The withdrawal of a part of the social product in the form of taxes and non-tax revenues to the budget allows you to adjust the use of this product, affecting the volumes aggregate demand and the proportion between consumption and savings in the economy. At the recession stage, budget expenditures increase, compensating for the loss of part of public demand, which revives the economy, but worsens the budget balance. During the recovery phase, an increase in tax revenues improves the balance of the budget. In the case of a progressive taxation scale, an increase in income leads to an increase in part tax payments, which is a kind of "built-in" stabilizer, "cooling" the economy. decline tax rates and increased government spending is used as leverage to revitalize economic dynamics, while raising tax rates and reducing costs is one of the ways to prevent the "overheating" of the economy. Thus, the budget plays a counter-cyclical and stabilizing role.
Strategic function of the budget is determined by the structure of public consumption and public investment and is implemented through the influence of the state on the inter-sectoral and inter-regional redistribution of resources within the country in accordance with the set long-term strategic priorities.
First of all, these are state purchases (government orders) of products of certain industries, budget investments in industries that are defined as strategically important, but which, for objective reasons, cannot attract private capital to depressed regions, etc. This function is of particular importance in transitional economies in which significant structural changes take place.
The stimulus function of the budget consists in the influence of measures budget policy to the activation of economic processes.
If the regulatory and structural functions can be aimed at both accelerating and slowing down economic processes, then the stimulating function of the budget is to create the maximum favorable conditions for effective entrepreneurial activity in line with the legislation and national interests of the country with the help of tax incentives, subsidies or subsidies, investments, etc.
In addition to the fiscal, all other functions of the state are not direct and their implementation extends beyond the boundaries of one year, but precisely through the fiscal functions of the state. Therefore, the effectiveness of their execution by the state budget can be determined by the results of one year only partially.
Main strategic directions budget policy:
ensuring full and timely execution financial obligations states at all levels of government;
elimination of disincentive elements and strengthening of the stimulating functions of the budget policy, primarily in the areas of reform tax system and budget spending policies;
reducing the debt burden on the economy.
Budget financing - this is an irrevocable allocation of funds from the relevant budgets (state, regional, district, city, etc.) to the maintenance of organizations in accordance with the cost estimate.
budget reserves- these are contingency funds that are created in the respective budgets to ensure uninterrupted financing of measures planned in the budgets in the event of a decrease in income or in the case of financing unforeseen measures of an urgent nature. The size of budgetary reserves is usually 3% of the corresponding budget.
The main part of state revenues and expenditures is carried out through the budget system. In Ukraine budget system consists of the state budget, the budget of the Autonomous Republic of Crimea and local budgets. The organization and principles of building the budget system, as well as the relationship between its individual links, are characterized by the concept budget device. The budget structure of Ukraine is determined taking into account the state structure and the administrative-territorial division of the country.
Government revenue - these are monetary relations regarding the distribution of GDP, as well as the part of GDP used by the state to carry out its functions. Budget revenues are obtained from receipts from payments by individuals and legal entities taxes, fees and other obligatory payments, as well as receipts from other sources determined by the legislation.
Income budgets of Ukraine are divided into revenues of the state and local budgets. From the state budget of Ukraine to the budget of the Autonomous Republic of Crimea, the budgets of regions, the cities of Kyiv and Sevastopol, a part of the income is transferred in the form of percentage deductions from national taxes, fees and obligatory payments that are collected in the given territory. The amount of these deductions is approved by the Verkhovna Rada of Ukraine in the Law on the State Budget of Ukraine for the corresponding year, taking into account the economic, social, natural and ecological state of the respective territories.
Government spending, including net lending, these are costs that are not reimbursable, do not create and do not repay financial requirements. They consist mainly of purchases of goods, services, remuneration of civil servants, social benefits and servicing the public debt.
In accordance with economic classification budget expenditures are divided into current expenditures, capital expenditure and lending less repayments.
The state, using the budget, finances the development of individual industries, regions and areas of activity. In addition to direct financing and direct public investment, state budget expenditures are carried out in such forms as grants, subsidies, subventions. SUBVENTION- (from lat. subvenire - to come to the rescue) a type of monetary assistance to local budgets from the state budget, intended for a specific purpose. In case of violation of the intended use of assistance funds received in the form of an insurance amount, they are subject to return to the budget from which they were received.
Subvention should be distinguished from grants, with which cash aid from the state budget is not stipulated by any conditions, and from subsidies, denoting subsidies, both to budgets and to various organizations at the expense of the budget or special funds created from contributions from individual companies and citizens.
The state budget envisages reserve fund The Cabinet of Ministers of Ukraine in the amount of not more than 1% of the expenditures of the general fund of the budget to finance urgent costs in the economy, socio-cultural and other activities that could not be provided for at the time of approval of the state budget.
The excess of income over expenses is surplus (surplus) of the budget. The excess of expenses over income is budget deficit.
The government can use the budget surplus under unforeseen circumstances to early payments, repayment of public debt, lending or transferring it to the income of the next budget year.
The maximum size of the state budget deficit and the sources of its coverage are determined by the Verkhovna Rada of Ukraine during the approval of the state budget. In world practice, a budget deficit of up to 10% of the amount of income is considered acceptable, a deficit of more than 20% is critical.
A generally accepted indicator in world practice of how large and dangerous the budget deficit is is the ratio of the negative budget balance (government domestic debt) to GDP. According to the IMF, an indicator exceeding 2.5% is alarming.
The deficit is covered by internal state loans, loans from foreign states and other financial institutions. Decisions on attracting loans in each specific case are made by the Verkhovna Rada of Ukraine.
Due to the limited funds and non-execution of income items of the approved budget, the actual implementation of the state budget of Ukraine in recent years is lower than envisaged. The lack of funds constantly forces us to solve the problem of priority areas for spending them. In these cases, it becomes inevitable sequestration (reduction) of costs, those. proportional reduction of them (except for specially protected - wages, scholarships, pensions and other transfers, the cost of medicines, food, etc.).
Main stages budget process: drawing up a draft budget; budget review; budget approvals; implementation of the budget; drawing up, reviewing and approving a report on the implementation of the budget.
Under emergency circumstances, an emergency budgetary spending regime may be introduced in the country. The introduction of emergency measures provides for the adoption of a special law.
1. Control function. The budget allows for control over the actions of the executive, which can be exercised in various forms - by specialized bodies endowed with control powers (for example, the Accounts Chamber), by a higher organization, etc. In countries with developed democratic traditions, public 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 adopted as a law and thus imposes restrictions on the actions of the government. It legislates the limits of certain items of income and expenditure, which the state must strictly observe when conducting social economic policy.
Budget objectively, through quantitative characteristics the formation and use of the state cash fund reflects economic processes occurring in the structural links of the economy. Thanks to this property, the budget can “signal” how financial resources from different business entities come to the state’s disposal, whether the sizes of centralized resources correspond to the volume of state needs, whether direct public investment etc. in the budget process, weaknesses, pain points in the country's economy are highlighted.
The government has the opportunity, by adjusting the direction of movement of centralized financial resources, to intensify the activity of certain industries and sectors of the economy. Consequently, the control function of the budget is not prohibitive, not restrictive, it allows you to control the degree and forms of state influence on the reproduction process.
2. Information function. The budget is an indicator of the current state of the country's economy, social sphere, the political situation. The structure of its revenue and expenditure part 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. The planning 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 public 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 opinions of deputies representing the interests of their constituents. Thus, the structure of the budget reflects public preferences for public policy. Through the mechanisms of representative democracy, these preferences are embodied in specific numbers of income or expenditure items.
This function of the budget in different countries implemented in different ways. It depends on how developed the procedures for the participation of citizens and their representatives in the development of the law on the budget and control over its implementation. Of great importance is the established order of the budget process, the degree of real participation of representative authorities in it, as well as the control of voters over the actions of elected bodies.
4. Regulating function. In conditions market economy the main instrument of state regulation is the financial system, the central element of which is the budget. Any significant economic policy decisions must be supported financially, so they are supported by appropriate budgetary spending.
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 to support 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 inefficient. The budget is an instrument of regional policy, since the funds of donor regions are used to support depressive 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 areas of activity.
5. Redistributive– equalization of incomes between groups and strata of society (decrease social inequality, support for those in the zone of social risk, provision for the disabled, etc.). Reflects the redistribution of resources between the regions of the country, the most significant in given period branches of the economy. Through the state budget, the country concentrates a significant share of the national income to finance the economy, socio-cultural events, strengthen defense and maintain government and government bodies.
6. Reproductive. The balance of the budget when implemented at various stages and stages of production, distribution, exchange and consumption regulates the constantly repeating production process. With the help of the federal budget, economic growth is supported, key sectors of the economy are being developed, economic structures are being reformed, and scientific and technological progress is accelerating.
Depending on the impact on the process of expanded reproduction, budget expenditures are divided into current (providing current needs) and capital (providing investment needs and growth of reserves).
7. Stimulating. Governmental support advanced sectors of the economy (aviation, space programs, nuclear industry, power engineering, etc.). support is associated with the implementation of highly effective and fast payback projects.
8 Fiscal- on the one hand, providing the state with financial resources for the implementation of direct administrative, defense, foreign policy and social tasks, i.e. implement those public services that are assigned to him by society.
This function is aimed at creating conditions for the efficient deployment and use of all the resources available to the state and maintaining a certain level of economic activity. Fiscal policy of the state - policy of reduction budget deficit to the level corresponding to the main macroeconomic goals: control over inflation, increase in investment activity of all financial resources, growth of the general economic potential of society.
8. Social. Covers all areas of social development. The federal budget finances not only branches of material production, but also non-productive spheres: education, healthcare, culture, etc. Allows for accelerated development human potential- engine of social progress. Taking into account off-budget funds, the budget covers institutions of social and cultural significance, which makes it possible to provide social support to vulnerable groups of the population, to ensure the functioning of healthcare, educational and cultural institutions.
By spending on health care, education, social security, the state regulates social development and the standard of living of the country's population. The budget is an instrument of regional policy, since the funds of donor regions are used to support depressive and crisis areas that have insufficient economic potential or are experiencing the consequences of emergency situations.
These functions of the budget are of an objective nature and take place in any country in the world, regardless of the level of development of democratic institutions and the nature of the state economic policy.
Required Properties budget
In order for the budget system to be able to effectively perform the functions assigned to it, it is necessary to fulfill a number of mandatory requirements:
Budget transparency- information openness of the budget system not only for state bodies, but also for society as a whole; the completeness of the reflection of budget revenues and expenditures, the openness of the methodology for calculating its individual articles; accuracy, reliability and timeliness of budget execution reports; a clear definition of the procedures for its preparation, approval and execution; availability of effective control mechanisms at all stages of the budget process.
Clear regulation- to increase the transparency of the budget process, it is necessary to clearly regulate all its stages and the powers of its participants. Legislation defines the functions of individual public authorities involved in the development and execution of the budget, the procedure for their interaction at various stages of the budget process, and a number of other points.
openness budget materials allows citizens and organizations to get an idea of the directions of the socio-economic policy of the state, not only for the next year, but also for a longer period. Therefore, the most important documents accompanying the budget process must be published in the mass media. This applies not only to the approved text of the law on the budget for the next year, but also to other materials: assessments of the current state of the country's economy and forecasts for its development, the concept of state policy, reports on budget execution, etc.
Completeness of the budget- the requirement of its completeness is closely connected with the transparency of the budget. The budget must cover everything financial flows government institutions. Different types of income should be credited to a single budget account from which all envisaged expenses are financed. If this requirement is not met, the budget cannot fully perform its functions, primarily information and control.
Budget system -
The budget system of the Russian Federation- based on economic relations and the state structure of the Russian Federation, regulated by the rule of law, the totality of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds
It consists of budgets of three levels:
- I level- the federal budget and the budgets of state off-budget funds;
Federal budget - the main link of the financial and budgetary system - is a form of formation and use of a centralized fund of funds to ensure the functions of public authorities. Financial resources necessary for their subsequent redistribution and use for the purposes of state regulation are mobilized through the FB. economic development country and the implementation of social policy on the territory of the Russian Federation. At the expense of the FB funds, the following expenses are covered: the maintenance of government bodies, meeting the needs of the country's defense, financial aid subjects of the Federation, servicing the public debt, replenishing state stocks, reserves, etc.
State off-budget funds - funds of funds formed outside the federal budget and the budgets of the constituent entities of the Russian Federation. Designed to implement constitutional rights to pensions, social insurance, social security in case of unemployment, health care and medical assistance.
- II level- budgets of subjects of the Russian Federation and budgets of territorial state off-budget funds;
The budget of the subject of the Russian Federation - the form of formation and spending of funds intended to ensure the tasks and functions related to the subjects of the jurisdiction of the subject of the Federation. In conjunction with the set of budgets of municipalities located on the territory of a constituent entity of the Federation, it amounts to consolidated budget of this subject.
- III level - local budgets - the form of formation and spending of funds intended to ensure the tasks and functions assigned to the subjects of local government.
The main purpose of the budget is that it allows you to accumulate financial resources in the hands of the state and use them to finance various programs. However, in addition to this most important task, the budget performs a number of other functions. These include:
Public Functions:
1. Control function. The budget allows you to exercise control over the actions of the executive, which can be carried out in various forms - by specialized bodies endowed with control powers (for example, the Accounts Chamber), by a higher organization, etc. In countries with developed democratic traditions, public 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 adopted as a law and thus imposes restrictions on the actions of the government. It legislates the limits of certain items of income and expenditure, which the state must strictly observe when pursuing socio-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 revenues and expenditures makes it possible to judge the priorities of state policy, the extent of the 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 by state institutions, but also by organizations of the non-state sector of the economy, as well as ordinary citizens. The planning 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 public 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 opinions of deputies representing the interests of their constituents. Thus, the structure of the budget reflects public preferences for public policy. Through the mechanisms of representative democracy, these preferences are embodied in specific numbers of income or expenditure items.
This function of the budget in different countries is implemented in different ways. It depends on how developed the procedures for the participation of citizens and their representatives in the development of the law on the budget and control over its implementation. Of great importance is the established order of the budget process, the degree of real participation of representative authorities in it, as well as the control of voters over the actions of elected bodies.
4. Regulating function. In a market economy, the main instrument of state regulation is the financial system, the central element of which is the budget. Any significant economic policy decisions must be supported financially, so they are supported by appropriate budgetary spending.
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 expenses to support 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 inefficient. The budget is an instrument of regional policy, since the funds of donor regions are used to support depressive and crisis areas that have insufficient economic potential or are experiencing the consequences of emergency situations.
The influence of the budget is not limited to the public sector of the 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 areas of activity.
These functions of the budget are of an objective nature and take place in any country in the world, regardless of the level of development of democratic institutions and the nature of the state economic policy. Some of them may contradict each other. For example, for the successful implementation of the control and information functions, the budget must be stable, and the regulatory function, on the contrary, involves its change depending on the current conditions of socio-economic development. The choice between budget stability or flexibility is determined by the goals of government policy, established traditions and public preferences, as well as a number of other factors.
Functions of the state budget as economic category:
1. Distribution (redistribution). Thanks to the distributive function, the concentration of funds in the hands of the state and their use in order 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 carries out such a multi-species (intersectoral, inter-territorial, etc.) and multi-level (federal, republican, regional, city, etc.) redistribution of funds as the budget.
The scope of the distribution function is determined by the fact that almost all participants in social production enter into relations with the budget. The main object of budgetary redistribution is net income; however, this does not exclude the possibility of redistribution through the budget and part of the cost of the necessary product, and sometimes national wealth.
2. Control function. Allows you to find out how timely and fully financial resources are at the disposal of the state, how the proportions in the distribution of budgetary funds actually add up, and whether they are effectively used. The control function lies in the fact that the budget objectively - through the formation and use of the state's fund of funds - reflects the economic processes taking place in the structural links of the economy. Thanks to this property, the budget can "signal" how financial resources come into the state's disposal from different business entities, whether the size of the state's centralized resources corresponds to the volume of its needs, etc. The basis of the control function is the movement of budgetary resources, reflected in the relevant indicators of budget revenues and expenditure assignments.
Functions of the state budget as a financial plan:
1. Redistribution of GDP. The distributive function of the budget is manifested through the formation and use of centralized funds of funds at the levels of state and territorial authorities and administration. In developed countries, up to 50% of GDP is distributed through the 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 by directing budgetary funds to support or develop industries and regions. Regulating economic relations in this way, the state is able to purposefully increase or restrain the pace 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 public sector and the implementation of the social policy of the state. The social orientation of budgetary funds is of great importance. In social policy, the main priorities are to support the least protected segments 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 the formation of market relations, the importance of budgetary control in the process of mobilizing resources 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, regulatory), functions of the state budget as an economic category (distributive 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 public sector and the implementation of the social policy of the state, control over the formation and use of centralized funds of funds).
The functions of the state budget are carried out on the basis of the use of the budgetary mechanism, which is the real embodiment of budgetary policy and reflects the specific focus of budgetary relations on solving economic and social problems.