The function that state budget performs. Budget functions
12.2. State budget, its functions and structure
The main link of the financial system is the state budget. The state budget - Centralized fund of monetary resources, which is used by the government to fulfill the relevant functions of the state on micro and macro levels. The combination of the national budget and budgets of administratively territorial units is budget Systemcountries. Its structure depends on the state device. In unitary countries, the budget system has a two-level construction - state and local budgets (Budgets of cities, regions of the regions). In countries with federal state, there is an intermediate link - state budgets, land, republics. In general, the budgets of various levels are constituted consolidated budget countries.
State Bureau performs the main functions:
Distribution - ensures the formation and spending of cash of the state to meet national needs.
Control - guarantees the formation of funds and their spending on the prescribed.
The state budget consists of income and consumables.
Structure of the revenue:
Taxes from legal entities.
Taxes from individuals.
State loans.
Other income:
non-tax payments and fees,
receipts from the sale of lottery tickets,
receipts from sales of state-owned objects, etc.
Consumables structure:
Social and cultural activity.
Economic activities.
Subsidies to local budgets of the regions and the city of Minsk.
Defense and state. control.
Replenishment of state reserves and reserves.
Foreign economic.
Budget funds include extrabudgetary fundswhich are not quantitatively included in the state budget, but on the principle of distribution and use are equivalent to the budget expenditures of the state. 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 appointment.
12. 3. Budget deficit and budgetary surplus.
State debt
When government spending exceed income, then takes place budget deficit, otherwise - proticiency (surplus).
The reasons budget deficit:
The rational of the socio-economic functions of the state.
Increase management costs.
Increased defense expenditures.
Periodic discardation of social production.
Deficit State budget financated Due to:
Loans in the population, that is, through the sale of interest on interest papers, the public debt is formed.
The release of new money, which is a more stimulating method for financing scarce expenses compared to the extension of loans.
Distinguish:
Structural deficit The state budget, which represents the excess of government spending on taxes in full-time employment (this is the difference between the consumable and profitable parts of the budget in full-time employment).
Cyclic deficiency The state budget is the difference between the actual budget deficit and the structural deficit, which occurs in the results of the cyclic decline in production.
State debt - This is the total amount of state debt to its and foreign individuals and legal entities. It becomes inevitable with a budget deficit. Quantitatively, the public debt is defined as the difference between the budget deficits accumulated over a certain period of time and budget excess times. The critical level of public debt on worldwide bank estimates is 50% of GDP.
State duty is subdivided on the:
Interior - Debt of the state in front of their citizens. It is formed as a result of the issue of debt obligations, debt on the payment of wages and transfer payments.
External- The result of borrowing outside the state. Public debt service leads to the following economic consequences:
The level of consumption for the population of this country is reduced.
Due to interest rates, private capital is supplanted, which limits economic growth.
Increases tax levels, which reduces economic activity.
National income is redistributed in favor of government bondholders.
Repayment of public debt and percent on it, that is public debt management Exercised at the expense:
Refinancing That is, the release of new loans to cover the arrears in old loans.
Conversion That is, changes in loan conditions relative to profitability (changes in interest rates).
Consolidation That is, changes in conditions relative to the maturity time (the transformation of short-term bonds into medium-term and long-term).
Budget as a phenomenon
Definition 1.
The budget is a complicated phenomenon, multifaceted to be considered from different points. It represents the state plan and consists of two parts: revenue and consumable. It has the power of the law and is an expression of financial relations, as well as the function of the fund of funds.
The budget value is determined by the relationship in society. Its task is to redistribute funds and their partial accumulation in relevant state funds and coverage of the necessary government spending.
Budget functions
The budget functions are laid in their essence and have expressions through properties:
- The distribution function is expressed in the formation and use of centralized funds of funds corresponding to various levels of state and local government. With the help of the budget, the state has the opportunity to regulate the country's economic activity, the development of territories and various industries, as well as the social sphere. By regulation, the state purposefully increases or restrains the growth rates of production, increases or reduces the growth rates of capital, changes the structure of demand - proposals.
- The redistribution function is manifested directly at the stages of the formation of income and the distribution of budgetary resources. In the process of formation of budgets, the state of GDP is removed in favor of the state that is redistributed between the insecrees of the economy.
- Adjusting and stimulating functions have manifestation through tax income and expenses. They act as a tool for stimulating the economy and investment, increase production efficiency.
- Social function is in the social orientation of budget funds. This is manifested in support of society, primarily the least protected layers of the population, health facilities, education, culture and housing.
- The planning function defines the budget policy, goals, tasks and ways to achieve them. Distributes the powers between the authorities. Determines the needs for cash in order to provide functions assigned to the relevant authorities to solve the tasks. Develops ways to develop budgets based on calculated and projected data. Development of budget projects, as well as measures providing budget execution.
- The function of the budget organization involves determining the budget and its classification, the procedure for compiling, reviewing and approving budgets. Provides the choice of relevant credit institutions from the position of providing budgets with the necessary means. Defines the authorities responsible for developing standards defining budgetary structures in accordance with the tasks.
- The control function interacts with the distribution and necessitates the ability to control the execution of budgets.
The need for budget
The existence of the budget is essentially due to the existing system of commodity and money relations, in which the state can fulfill its functions only with sufficient funding. The budget acts as a accumulating fund, in which due to the accumulation of funds of all sectors of the economy is formed and sent to the future necessary to fulfill the fulfillment of the functions of the state. The budget allows for social justice in society and improves the efficiency of the use of economic resources.
Note 1.
In recent years, there has also been a stimulating function of the budget expressed in the allocation of funds to priority and well-growing industries and encouraging economic entities to effective economic use that contributes to the mobilization of domestic economic resources.
Budget functions laid in them essencewhich manifest themselves through their properties.
Basic functions of budgets are:
Distribution function of the budget;
Redistributive GDP function;
Regulating function;
Stimulating function;
Social function;
Planning function;
Organization function;
Control function.
Fig. one. Budget functions
Distribution function of the budget It is manifested directly through the formation and use of centralized funds of funds at the levels of government authorities and local governance. Important in B. distribution of budget funds Assigned to funds: reserve, development, support for subjects of the Russian Federation.
Via budgets And the Funds state regulates the economic life of the country, the economic development of territories and industries, the social sphere. By regulating the economic sphere and relationship in it, the state purposefully strengthens or restrains the growth rate of production, accelerates or reduces the growth of capital and private savings, changes the structure of supply and demand, regulates social security of members of society.
Redistributive budget function National income and GDP manifests itself directly at the stages of education of budget revenues and the distribution of budgetary resources. In the process budget revenue formation Forced withdrawal is occurring in favor of the state of the GDP, created in the process of public reproduction. Through the federal budget, about 20% of GDP is redistributed.
Funds of state budget First of all, they are sent to financing the structural restructuring of the economic sphere, comprehensive targeted programs, increasing scientific and technical potential and activities of social security of the least secured segments of the population.
Budget revenues of all levels of the budget system Significantly vary on their payers, objects of taxation, methods for making income and timing. At the same time, they are united by unity, as they pursue a single goal - the formation of the revenue of the budgets of various levels. Budget revenues Can wear tax and non-tax.
Through budget spending Budgets are funded - the organization of industrial and non-productive spheres. In the budgets of any level of the budget system, only the size of budget expenditures on costs is defined, and budget prophetors are engaged in direct costs of spending budget resources. Due to budget expenditures There is a redistribution of budget resources on the levels of the budget system through the system of subsidies, subsidies, subventions and loans.
Budget expenditures Basically carry irrevocable. Only loans and loans work on a refundable. The structure of budget expenditures is annually established by the budget plan (estimates) and depends, as well as budget revenues, from the economic situation and state priorities.
Regulating and stimulating budget functions manifested directly through tax income and budget expenses. 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 budget function It is that budgetary funds contain the social orientation manifested in direct support of members of society, first of all, in support of the least protected segments of the population, health care institutions, education, culture, housing and communal services.
Budget planning feature suggests:
Defining budget policy, goals, tasks and choosing ways to achieve them;
Delimitation of powers and items of maintaining between the authorities of all levels of the budget system;
Determining the needs of funds in order to financial support for the functions assigned to the authorities and solving the tasks facing the society and the state;
Development and substantiation of optimal ways to develop budgets in order to develop proposals for strengthening budgets based on forecast (calculated) data;
The development and justification of projects of budgets, their income and expenditure parts in relation to the budget policy defined in the Presidential Message of the Russian Federation by the Federal Assembly of the Russian Federation for the next fiscal year;
The development of specific activities that ensure budget execution in the interests of the implementation of budget policy for the next fiscal year.
Budget organization function suggests:
Determination of the budget device and the budget classification;
Determining the procedure for drawing up, consideration, approval and execution of budgets;
The choice of credit institutions providing a budget process from the provision of budget provisions with financial resources;
The delimitation of powers of legislative and executive bodies of all links of the budget system;
Determining the authorities of the responsible for the development of criteria and standards that determine the structure and volume of budgets and the relevant needs and objectives of the budget policy;
Determination of the structure of the control bodies responsible for the formation and execution of budgets.
Control budget feature specifies simultaneously with distribution and assumes the possibility of the obligation of state and local control bodies and the use of budgetary funds.
Control function budgetit has a specific form of manifestation and is implemented in the following areas:
Control over the right and timely transfer of revenues to budgets and extrabudgetary funds;
Control over the target, economical and efficient use of budgetary resources and funds of extrabudgetary funds.
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 control over the actions of the executive branch, which can be carried out in various forms - by the part of the specialized bodies endowed with control powers (for example, the Accounts Chamber), by the superior organization, etc. In countries with developed democratic traditions, public monitoring is important For the development of which special programs for increasing the transparency of the budget system are accepted. The budget is accepted as the law and thereby imposes restrictions on the actions of the government. It legally consolidated the limits of certain types of income and expenses, which the state should clearly comply with the socio-economic policy.
2. Information function. The budget is an indicator of the current state of the country's economy, the social sphere, the political situation. The structure of its profitable and expenditure part allows you to judge the priorities of state policy, the scale 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 planned document, it acts as a forecast of the future economic situation. Its development is accompanied by the forecast calculations of the main indicators of the country's development, which is guided by not only government agencies, but also the organization of the non-state sector of the economy, as well as ordinary citizens. Planning and forecast indicators are laid in the budget law form certain expectations that can be both positive and negative.
3. Institutionalization of social preferences. In democratic states, the adoption of the law on the budget will be preceded by its consideration in parliament. At this stage, the draft law contains adjustments to the government, taking into account the opinions of deputies representing the interests of their voters. Thus, the budget structure reflects public policy preferences. Through the mechanisms of representative democracy, these preferences are embodied in specific figures of income or expenditure articles.
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 a law on budget and control over its execution. The established procedure for the budget process, the degree of real participation in it of representative power bodies, as well as the control of voters for the actions of elected bodies, is important.
4. Adjusting function. In a market economy, the main instrument of state regulation is the financial system, the central link of which is the budget. Any significant economic policy decisions must have financial support, so they are supported by relevant budget expenditures.
Exercising the costs of health care, education, social security, the state regulates the social development and standard of living of the country's population. With the help of expenses to support individual sectors of the economy, the production of social and significant goods and services is ensured, which in terms of the market may be ineffective. The budget is a regional policy tool, because at the expense of the funds of donor regions, supports depressive and crisis territories that have insufficient economic potential or experiencing emergency situations.
The influence of the budget is not limited to the state sector of the economy and goes far beyond its limits. Regulatory impact is provided not only by budget expenditures, but also taxes that stimulate or restraining the development of individual industries or areas of activity.
The named budget functions are objective and occur in any country of the world, regardless of the level of development of democratic institutions and the nature of state economic policy. Some of them can contradict each other. For example, to successfully implement the control and information function, the budget must be stable, and the regulatory function, on the contrary, implies its change, depending on the current conditions of socio-economic development. The choice between stability or flexibility of the budget is determined by the objectives of the policy of the state, established traditions and public preferences, as well as a number of other factors.
Functions of the state budget as an economic category:
1. Distribution (distribution). Thanks to the distribution function, there is a 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 other units of finance carry out such a multi-shaped (inter-sectoral, inter-dertestorial, etc.) and multi-level (federal, republican, regional, urban, etc.) Redistribution of funds as a budget.
The area of \u200b\u200bthe distribution function is determined by the fact that almost all participants in social proceedings come into relations with the budget. The main object of the budget redistribution is pure income; However, this does not exclude the possibility of redistributing 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 come to the order of the state, as actually develop proportions in the distribution of budget funds, whether they are effective. The control function lies in the fact that the budget objectively - through the formation and use of the fund of funds of the state - displays the economic processes flowing into the structural links of the economy. Thanks to this property, the budget can "signal" financial resources from different business entities come to the disposal of the state, whether the size of the state's centralized resources corresponds to the amount of its needs, etc. The basis of the control function is the movement of budgetary resources, reflected in the corresponding indicators of budget revenues and consums.
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 in the levels of state and territorial power and management. In developed countries, up to 50% of GDP are distributed through budgets;
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, sending budget funds to support or develop industries, regions. In this way, economic relations, the state is capable of purposefully strengthening or restraining the rate of production, accelerate or weaken the growth of capital and private savings, to change the structure of demand and consumption.
3. Financial support of the budget sector and the implementation of the social policy of the state. The social orientation of budget funds is important. In social policy, the main priorities are supporting the least protected segments of the population, as well as the functioning of health care institutions, education and culture, the solution of a housing problem.
4. Control over the formation and use of centralized funds funds. In the budget planning and budget execution, the financial and economic activities of the national economy are monitored. In the conditions of becoming market relations, the value of budgetary control in the process of resource mobilization and their use is enhanced.
Thus, the functions of the state budget can be divided into 3 categories: social features (control, information, institutionalization of social preferences, regulating), the functions of the state budget as an economic category (distribution and control), the functions of the state budget as a financial plan (redistribution of GDP, state budget Regulation and stimulation of the economy, financial support of the budget sector and the implementation of the social policy of the state, control over the formation and use of centralized funds funds).
The functions of the state budget are carried out on the basis of the use of the budgetary mechanism, which is a real embodiment of the budget policy and reflects the specific focus of budget relations to solve 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 for the social sphere and the implementation of the state social policy;
4) control over the formation and use of centralized funds funds. Distributionthe budget function is manifested through the formation and use of centralized funds of funds in the levels of state and territorial power and management. With the help of the budget, the state regulates the economic life of the country, economic relations, sending budget funds to support or develop industries, regions. In this way, economic relations, the state is able to purposefully accelerate or restrain the production rates, the growth of capital and private savings, change the structure of demand and consumption.
Redistributionnational income through the budget has two interrelated, flowing at the same time and continuously: L) budget revenue education; 2) the use of budget funds (budget expenditures).
During the formation of budget revenues and the use of budgetary funds, tasks are solved state regulationeconomic and social processes in the country.
By centralizing in the budget of part of financial resources, the state is able to provide cash to the national needs - the accelerated development of the progressive sectors of the national economy, the reproduction of the qualified labor force, the development of science and technology, the country's defense capability.
Through the budget, the national income is redistributed on the territory, as well as from the production in non-manufacturing spherefor which cash funds are being created at the expense of the budget to finance the needs of health, education, culture, management, defense. Budgets through budget financing are redistributed by financial resources between the industrial sectors in order to proportional to their proportional development. Through the budget, an inter-dertestorial and intersectoral redistribution of national income is performed. Thus, the interests of the country's economic development and interests of the proportional development of regions are observed.
A large role in economic and cultural construction in places is played budget regulation.With the help of budget regulation, there is a wide scale of the interlerattorial distribution of funds, entalling the necessary sources of income of regional and local budgets.
Great role budget in the non-productive sphere, where he is the main source of financing.It is through the state budget that the financing of socio-cultural events, management and defense comes.
And finally, budgets perform controla function that involves the possibility and obligation of state control over the admission and use of budgetary funds.