The concept and specific properties of the budget

National finance consists of a number of centralized funds, the main of which is the state budget. The state budget is the central link in the financial system of any state.

The term "budget" in translation from English means "purse with money". It arises historically where the state and commodity-money relations exist.

The Budget Code defines the budget as follows:

Budget is a plan for the formation and use Money to ensure the implementation of the tasks and functions of the state. It represents the main financial plan state for the current financial year and has the force of law, because is approved by the Parliament and signed by the President, and is mandatory for all participants in budgetary relations.

The budget depends on many objective and subjective factors, therefore its volume, structure, content of income and expenses differ in each historical period in different countries.

Objective factors:

1. the nature of industrial relations;

2. the level of development of the productive forces;

3. natural, economic and social characteristics of each country;

4. type of state.

Subjective factors:

1. government policy in the relevant period;

2. development priorities;

3. external and internal economic situation.

The budget has the following properties:

1. impersonal income state budget, since there is no binding to a specific expense;

2. the budget affects the national economy through the system of income and expenditure;

3. budget expenditures must be provided with financial resources, centralized and timely financing of the envisaged activities must be carried out;

4. implementation of state control over the execution of the budget;

5. formation of budgets on a territorial basis;

6. the possibility of prompt adjustment of budget indicators for income and expenditure in case of changes in macroeconomic indicators.

The concept and significance of budgetary relations

The Budget Code provides the following definition of budget relations:

Budget Relations- these are the relations between the participants in the budget process that arise in the preparation, consideration, approval and execution of the republican budget, local budgets and budgets of state extra-budgetary funds, drawing up, reviewing and approving reports on their execution, determining the rights and obligations of participants in the budget process, as well as in monitoring the execution of budgets and applying liability for violations of budget legislation.

As part of financial relations, when separating net income, budgetary relations arise. Their appearance is due to the splitting off of a part of net income in the form of taxes and obligatory payments. Budgetary relations are also redistributive in nature and mediate the relationship of business entities with the state regarding the withdrawal of net income to form state revenues.

With the help of budgetary relations, a centralized fund of funds is formed. Budgeting can be represented as the following scheme:

GDP=C+V+M →m1

C (fixed assets) + V (labor) = replacement fund

M - net income

m1 - part of net income that goes to the formation of the budget fund, i.e. these are taxes and payments.

m2 - part of the net income that remains with business entities.

Budgetary relations are characterized by the following peculiarities :

1. they are of a monetary nature;

2. these relations are determined by the functioning of the state;

3. they are associated with the formation and use of a centralized fund of funds;

4. mediate the gratuitous movement of value in the form of taxes, non-tax revenues, as well as budget financing;

5. are redistributive in nature;

6. they are regulated by budgetary and tax laws.

The action of budget relations is limited to the area of ​​budget distribution and is carried out within the framework of the budget process.

The main participant in budgetary relations is the state.

Budget Functions and Budget Mechanism

Budget fulfills 2 main functions:

1. distribution;

2. control.

With the help of the budget, a significant part of the national income and GDP is redistributed. Scope distributive function includes redistribution at various levels between structural divisions(intersectoral and interterritorial) and between levels of budgets.

control function budget is manifested in the process of formation and use of the fund of state funds. Through income indicators, it is possible to determine how timely and fully financial resources are received from business entities and citizens at the disposal of the state, as well as to determine to what extent they correspond to needs, how funds are distributed and how efficiently they are used.

The appropriations allocated in the order of distribution are targeted and aimed at certain economic and social goals. Therefore, it is also necessary to control their use. Budgetary control is aimed at ensuring the execution of the budget and is part of financial control.

In modern states, the budget is used in the system of state regulation of the reproduction process, and this is possible due to the budgetary mechanism.

Budget mechanism is a set of forms of budgetary relations, methods of mobilization and ways of using budgetary resources.

The budgetary mechanism is created by the state to implement budgetary policy, regulate the economy by maneuvering budgetary resources. This is facilitated by a specific property of the budget - the anonymity of state budget revenues, that is, they are not tied to specific expenditures.

With the help of the budgetary mechanism, the state redistributes GDP, national income, changes the structure of social production, influences economic transformations and social reforms, and creates conditions for controlling economic processes.

4. Economic content, purpose and role of the state budget

The economic significance of the budget lies in the fact that it can actively influence social production with the help of taxes and direct the mobilized resources to the development of priority sectors of the economy. This enables the government to implement its economic, social, foreign and domestic policy.

The state budget has external features, namely the form and its material content.

By organizational form The budget is the financial plan of the state, which takes central location in common system financial plans.

By material content The state budget is a centralized fund of state funds.

By social nature the state budget is the main tool or tool for the redistribution of national income.

Consequently, the state budget is the main financial plan of the state, which reflects economic relations regarding the formation, distribution and use of the fund of funds.

Purpose the state budget is as follows:

1. with its help, the redistribution of GDP and national income is carried out;

2. carried out state regulation and stimulating the economy;

3. financial support for social policy is carried out;

4. control over the formation and use of the fund of budgetary funds.

The role of the state budget:

1. with the help of the state budget, the implementation of the management functions assigned to the state is ensured;

2. the budget is a tool for the redistribution of funds between sectors of the economy, economic regions and social groups of the population;

3. The budget is the basis for the content of the non-productive sphere.

The state budget functions with the help of special economic forms - revenues and expenditures, which have their own purpose and reflect the stages of the redistribution of the value of the social product.

1. Implementation of financial relationships with state authorities and local self-government.

2. Principles and mechanisms of use budget funds.

1. Implementation of financial relationships with state authorities and local self-government

The modern state, in addition to performing its ancient functions (defense, management, maintaining internal security), also performs economic functions. The modern state carries out state regulation of the economy. State intervention in the economy is necessary in order to ensure the effective development of all sectors of the economy, since a purely market distribution of income is not efficient, and for this reason, the non-productive sector will be financed on a residual basis.

The state is obliged to ensure healthy competition, the need to develop public goods, restrain inflationary processes, and regulate the employment of the population. Not only modern market requires intervention in the economy, but also the solution of such an important problem as the maintenance of the social sphere, the need to overcome social injustice and inequality. In any society, there are elderly and elderly citizens, the sick and disabled, families with many children and low-income families, the unemployed, and it is the democratic state that takes care of such citizens and bears significant, ever-increasing social costs. State intervention in the economy is provided by such a universal form as the budget.

Regulation of the economy occurs in the formation of budget revenues and in the implementation of expenditures.

Funds from the budgets come to commercial organizations as part of state support for their activities. In the context of market transformations, the share of budget funds in sources financial resources commercial organizations decreased significantly. Nevertheless, commercial organizations can receive budget funds in the form of subsidies, budget investments, and budget loans. The provision of budgetary funds to commercial organizations is strictly targeted and, as a rule, is carried out on a competitive basis. Sometimes it is difficult to allocate budgetary funds from other sources of financial resources of a commercial organization. Thus, budgetary funds received in the form of payment for a state or municipal order are reflected as sales revenue.

In the field of industry, construction and energy, state support is provided for the implementation of investment projects. The initiators of the implementation of these projects can be:

Federal authorities executive power;

Authorities of the constituent entities of the Russian Federation, local governments;

Commercial organizations, including foreign ones.

Among the investment projects applying for state support, selection is carried out according to the following principles:

1. Investment projects must meet the established criteria.

2. Equal conditions for access to the procedure for providing state support are provided.

3. The investment project must be break-even.

4. The risk of the state with private capital must be shared.

5. The project must balance the interests of the state and the interests of private participants in the project.

6. The conditions of fair competition and antitrust laws must be observed.

In order to improve the processes of providing state support within the framework of the federal budget, a federal investment fund was created. Its funds are used to finance projects federal level, and since 2008 funding from the federal investment fund and from regional budgets technical projects that are aimed at developing the infrastructure of the constituent entities of the Russian Federation.

The provision of state support from the investment fund can be carried out in the following forms:

1. Co-financing of the project on contractual terms with registration of property rights of the Russian Federation. (Private capital must provide at least 25% of own funds from estimated cost this project).

3. Provision of state guarantees under investment projects in the amount of up to 60% of funds provided by creditors for no more than 5 years.

Most often, investment projects in industry and construction are financed through federal targeted programs. In this way, the construction of specific facilities necessary for the implementation of federal targeted programs. Through the same targeted programs, funds are allocated for the implementation of sectoral programs.

The state regulates investment activity not only through financial support, but also through the introduction of tax incentives.

The legislation provides for the possibility of financing construction and industrial facilities in two ways:

1. Grant of funds for the construction of facilities for federal (state) needs.

2. Allocation of budgetary funds to finance investment projects on terms of repayment and payment. (Budget credits).

In addition, the state has undertaken a number of accompanying procedures:

a) Development of technical regulations for construction;

b) Implementation of project expertise;

c) Protection Russian enterprises from supplies from abroad of obsolete equipment and materials;

d) Issue of bonded loans, including guaranteed ones.

In the budgets, expenditures for financing investment programs are provided as follows:

1. In the federal budget, provided that they are part of the cost of implementing the relevant target programs, as well as on the basis of proposals from the President of the Russian Federation and the government.

2. In the budgets of the constituent entities of the Russian Federation, provided that these expenses are part of the costs of implementing regional targeted programs, as well as on the basis of proposals from the executive authorities of the constituent entities of the Russian Federation.

The Government of the Russian Federation has the right to provide state guarantees for investment projects of social and national economic significance.

When making decisions on the provision of such guarantees, the following criteria for the significance of projects are taken into account:

Promoting the growth of production of competitive products;

Contribute to the solution social problems nationwide;

Compliance with the environmental safety of the population.

Analysis, evaluation and selection of projects for the provision of state guarantees are carried out by the Ministry of Finance and the Ministry of Economic Development of the Russian Federation

State support for the economy.

2. Principles and mechanisms for the use of budgetary funds

Organizations can receive budget funds in the form of subsidies, budget investments, budget loans. The provision of budgetary funds to commercial organizations is strictly targeted and, as a rule, is carried out on a competitive basis.

Budget credit can be provided to a legal entity that is not a state or municipal enterprise, on the basis of an agreement concluded in accordance with the Civil Code of the Russian Federation, provided that the borrower presents security for his obligation to repay this loan.

A budget loan is issued on the terms of compensation and repayment.

The only ways to ensure the fulfillment of the obligation to repay a budget loan can be bank guarantees, guarantees, pledge of property, including shares, other securities, shares, in the amount of at least one hundred percent of the loan granted. Enforcement of obligations must have a high degree of liquidity.

Valuation of property provided as security for a budget loan is carried out in accordance with the legislation of the Russian Federation.

A prerequisite for granting a budget loan is a preliminary check financial condition borrower by the financial authority. The latter also checks intended use loan.

When approving the budget for the next financial year, indicate the purposes for which this loan can be provided, the conditions and procedure for its issuance, the limit for the provision within the year and for a period beyond the budget year.

The report on the execution of the federal budget is accompanied by a report on the provision and repayment of budget loans. Violation of the established procedure for lending by financial authorities is considered non-compliance with the budgetary legislation of the Russian Federation and the basis for holding officials accountable.

Return of provided legal entities budget loans, as well as fees for their use are equated to payments to the budget. This loan can be provided only to those legal entities that do not have overdue debts on previously issued budget funds on a repayable basis.

Recipients of a budget loan are required to provide information and a report on its use to the bodies executing the budget. These bodies maintain a register of all granted budget credits in the context of their recipients.

Providing subsidies to legal entities

Article 78 individual entrepreneurs, individuals

[Budget Code of the Russian Federation] [Chapter 10] [Article 78]

1. Subsidies to legal entities (with the exception of subsidies to state (municipal) institutions), individual entrepreneurs, as well as individuals - producers of goods, works, services are provided on a gratuitous and irrevocable basis in order to compensate for lost income and (or) financial support(reimbursement) of costs in connection with the production (sale) of goods (with the exception of excisable goods, except for cars and motorcycles, wine products produced from Russian Federation grapes), performance of works, provision of services.

2. Subsidies to legal entities (with the exception of subsidies to state (municipal) institutions, as well as subsidies specified in paragraph 7 of this article), individual entrepreneurs, as well as individuals - producers of goods, works, services are provided:

1) from the federal budget and the budgets of state off-budget funds of the Russian Federation - in the cases and in the manner provided for by the federal law on the federal budget, federal laws on the budgets of state off-budget funds of the Russian Federation and the regulatory legal acts Government of the Russian Federation or acts authorized by him federal bodies state power (federal state bodies);

2) from the budget of a constituent entity of the Russian Federation and the budgets of territorial state non-budgetary funds - in the cases and in the manner provided for by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation, the laws of the constituent entities of the Russian Federation on the budgets of territorial state non-budgetary funds and the regulatory legal acts of the highest the executive body of state power of a constituent entity of the Russian Federation or acts of state authorities authorized by it of a constituent entity of the Russian Federation;

3) from the local budget - in cases and in the manner provided for by the decision of the representative body of the municipality on the local budget and adopted in accordance with it by the municipal legal acts of the local administration or acts of local governments authorized by it.

3. Regulatory legal acts, municipal legal acts regulating the provision of subsidies to legal entities (with the exception of subsidies to state (municipal) institutions), individual entrepreneurs, as well as individuals - producers of goods, works, services, should determine:

1) categories and (or) selection criteria for legal entities (with the exception of state (municipal) institutions), individual entrepreneurs, individuals- manufacturers of goods, works, services eligible for subsidies;

2) purposes, conditions and procedure for granting subsidies;

3) the procedure for the return of subsidies to the relevant budget in case of violation of the conditions established during their provision;

4) the procedure for the return in the current financial year by the recipient of subsidies of the balance of subsidies not used in the reporting financial year, in cases provided for by agreements (contracts) on the provision of subsidies;

5) provisions on mandatory verification by the main manager (manager) of budgetary funds providing a subsidy and the state (municipal) financial control body of compliance with the conditions, goals and procedure for granting subsidies by their recipients.

4. Provision of subsidies for reimbursement of expenses for the payment of customs duties incurred by legal entities, individual entrepreneurs who are persons participating in the implementation of the project for the creation and operation of a territorially separate complex (the Skolkovo innovation center) is carried out in the form of advance payments at the expense of the federal budget.

Features of the provision of subsidies specified in this paragraph may be established by the Government of the Russian Federation subject to the provisions federal law"About the innovation center "Skolkovo".

5. When granting subsidies referred to in this article, prerequisite their provision, included in contracts (agreements) on the provision of subsidies, is the consent of their recipients (with the exception of state (municipal) unitary enterprises, business partnerships and companies with the participation of public law entities in their authorized (share) capital, as well as commercial organizations with participation of such partnerships and companies in their authorized (reserve) capitals) for the implementation by the main manager (manager) of budgetary funds that provided subsidies, and by state (municipal) financial control bodies to verify compliance by recipients of subsidies with the conditions, goals and procedure for their provision.

6. The subsidies provided for by this article may be provided from the federal budget, the budget of a subject of the Russian Federation, the local budget in accordance with the terms and conditions provided for by concession agreements concluded in the manner prescribed by the legislation of the Russian Federation on concession agreements.

Conclusion of concession agreements on behalf of the Russian Federation, a subject of the Russian Federation, a municipality for a period exceeding the validity period of the approved limits budget commitments, is carried out in cases stipulated, respectively, by decisions of the Government of the Russian Federation, the highest executive body of state power of a subject of the Russian Federation, local administration, adopted in the manner determined respectively by the Government of the Russian Federation, the highest executive body of state power of a subject of the Russian Federation, local administration.

7. The law (decision) on the budget may provide for budget appropriations for the provision, in accordance with decisions of the President of the Russian Federation, the Government of the Russian Federation, the highest official of a constituent entity of the Russian Federation, the highest executive body of state power of a constituent entity of the Russian Federation, local administration to legal entities (with the exception of state (municipal) institutions), individual entrepreneurs, individuals grants in the form of subsidies, including those provided on a competitive basis.

The procedure for providing these subsidies from the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets is established by the regulatory legal acts of the Government of the Russian Federation, the highest executive body of state power of the constituent entity of the Russian Federation, municipal legal acts of the local administration, respectively, if this procedure is not determined by the decisions provided for in the first paragraph of this item.

Questions for self-control:

1. How many levels of budgets can be identified in the budget system of the Russian Federation?

2. What document approves the federal budget?

3. For what purposes is the budget of the constituent entities of the Russian Federation intended?

4. What is the consolidated budget of the Russian Federation?

5. How are funds allocated for the fulfillment of expenditure obligations of municipalities arising in connection with the implementation by local governments and expenditure obligations of municipalities performed at the expense of subventions from other budgets taken into account? budget system Russian Federation?

6. What institutions are called institutions of a new type?

7. What conditions must an institution meet in order to carry out income-generating activities?

8. What expenses are financed by budgetary funds?

9. Where can funds from income-generating activities be used?

10. What is the significance of the analysis of the use of budgetary and extrabudgetary funds?

Its main elements are:

Budget planning and forecasting;

Operational management of budgetary resources;

Timely financing of state expenses;

Accounting, reporting on the execution of budgets;

Analysis of budget execution and amendments to the approved budget;

Consideration and approval of budgets in the relevant levels of management;

Formation of a regulatory and legislative, as well as information base for the normal functioning of the budget system.

It should be noted that in practice the budget system is considered as a set of budgets. This does not allow a comprehensive study of the elements of the budget system, to determine the problems of formation and use of budgets in the republic. The main ones, in our opinion, are the following:

Macroeconomic situation in the economy of the Republic of Kazakhstan and its individual regions (development of production, financial resources, etc.);

Role tax system in budgeting;

Distribution of taxes and other types of income between budgets;

Distribution budget spending between budgets;

Principles of operation of regulatory revenues;

Principles of allocating budget subsidies and subsidies from the republican budget;

Extra-budgetary funds and their role in the process of distribution and redistribution of financial resources;

Control over the spending of budgetary funds and the correctness of income transfer by levels of the budget system;

Distribution of investment expenses between budgets;

Methods for increasing the efficiency of budgetary capital investments;

Organizational forms of investment;

The role of investment funds;

budget investments and investment loans, methods of their combination;

conversion programs;

Distribution of social expenses between budgets;

Methods of financing education and science;

The expediency of changing benefits to the population;

Pension fund and pension system;

Criteria for determining budget deficits;

Measures to reduce the gap between budget revenues and expenditures;

Securities in the financial market;

Relationship with National Bank Republic of Kazakhstan;

Development of a unified budget classification with a greater focus on functional classification;

Methods for developing a draft budget;

Adjustment and clarification of budget indicators during the financial year;

Accounting and reporting on the use of the budget;

Methods for analyzing the execution of budget revenues and expenditures;

Methods for forecasting expenditures and budget revenues;

Organizational structure of budget divisions of financial bodies and their functions in the conditions of functioning of the new financial system of the Republic of Kazakhstan.

A systematic study of these issues would help develop a sound financial policy of the state in market conditions and determine an acceptable structure of financial, tax and other bodies that manage financial relations in the republic.

Budget revenues express the economic relations that arise between the state and enterprises, organizations, and citizens in the process of forming the country's budget fund. The form of manifestation of these economic relations are various types of payments by enterprises, organizations and the population to the state budget, and their material and material embodiment is the funds mobilized to the budget fund. Budget revenues, on the one hand, are the result of the distribution of the value of the social product between the various participants in the reproduction process, and on the other hand, they are the object of further distribution of the money concentrated in the hands of state cost, because the latter is used to form budget funds for territorial, sectoral and targeted purposes.

The composition of budget revenues, forms of mobilization of funds to the budget depend on the system and methods of management, as well as on the economic tasks solved by society. In our country, where until recently the state acted as the owner of the predominant mass of the means of production, budget revenues were based mainly on the cash savings of state enterprises. The system of collection of payments in the period 1930-1990 was distinguished by the fact that it was of a pronounced fiscal nature, was strictly centralized, and was based on the use of individual rates. These features reflected the administrative-command approach to the mobilization of financial resources at the disposal of the state, testified to the desire of the center to concentrate the maximum possible amount of money in its hands.

Particularly brightly named features were manifested in payments from profits made by state enterprises on the basis of individual rates, adapted by sectoral management bodies to specific economic results. Even the introduction of regulatory payments from profits (payments for production assets, labor resources etc.) could not change the withdrawal system as a whole - it continued to focus on the individual results of managing individual enterprises. The absence of objective criteria, according to which the share of participation of each economic entity in the formation of the country's budget fund would be reasonably determined, led to undermining the financial independence of enterprises, neglecting their economic interests.

The transition to a market economy required the use economic methods management of social production, and the inefficiency of the previously used forms of mobilizing part of the net income of enterprises to the budget led to a radical decrease in the system of revenue receipts - it began to be based on tax payments, the relationship between enterprises and the budget was transferred to a legal basis regulated by law.

Increasing budget deficit, inflation and depreciation of capital, unprofitability, payment crisis - all these phenomena testify to the financial relationship between enterprises and the state (primarily with the budget system), the impact on real sector general public policy financial stabilization.

The emergence of a new market type financial interrelations between the state and enterprises did not save the Kazakh economy from inefficiency to the stabilization of the state budget. Objectively inherent positive properties and advantages of a market economy are not realized in specific Kazakhstani conditions.

The situation of insolvency in the sphere of financial relations between enterprises and the state is manifested in systemically reproducing phenomena: chronic insolvency of enterprises in payments to the budget and state non-budgetary funds; a decrease in the real budgetary potential and the compulsion to pursue a policy of continuous sequestration of budgetary expenditures, the decline and relegation to secondary roles of the investment function of public finances; low tax collection and a massive reduction in tax revenues.

The main reason for the budget crisis is the lack of income, annual errors in assessing the collection of taxes. The most important condition for overcoming the crisis is the continuation of the tax reforms begun in late 1996 and early 1999, supplementing them with a number of new provisions. At the same time, it is necessary to take into account some objective circumstances and draw conclusions from the experience of tax reforms.

First. An attempt to immediately build in Kazakhstan a tax system that is typical for countries with developed economies was not successful. The current tax system does not take into account the peculiarities of the motivation of domestic taxpayers, which makes it inefficient. Incomes are hidden, capital flows from the legal sector to the shadow economy, and is exported abroad.

Second. Tightening tax administration, of course, is necessary, but it would be a mistake to place special hopes on it. Tax collection cannot be increased through administrative pressure without creating effective economic incentives for enterprises to pay taxes honestly, without reducing barter transactions and crowding out money surrogates.

Third. Solving the problem of a significant increase in tax collection, one cannot rely only on lowering tax rates. Such a reduction is important, but taken in isolation, it will not have a decisive impact on the filling of budgets at all levels.

With the current tax system, the exit from the budget and economic crisis will be unacceptably long and difficult for Kazakhstan. The existing tax relations have become habitual for some, convenient for others, but in general the country suffers huge losses.

The strategic direction of improving the tax system should be its simplification. We have massive concealment of income and low tax collection, which has to be compensated by high tax rates. People who do not want or are not able to hide their income suffer, i.е. honest and hard-working people who should be a support, not a victim of the state. Therefore, we should be more resolute in opening up from those taxes, the payment of which is difficult to control.

The second direction is further reduction of tax benefits. Now the right to tax incentives are determined not by the market, not by the consumer, but by the administrative mechanism. Obtaining these benefits does not depend on the importance of a particular type of activity for society, but on the ability to lobby for one's interests at structural levels of power.

The third direction is the change in the structure of taxes. We need to move towards the gradual abandonment of taxes that impose an additional burden on the growth of income and profits, wages, production volumes, investment, and employment. This will create powerful incentives for modernizing production and increasing foreign and domestic investment.

This chapter discusses in detail one link of local finance - local budgets, since the other two links - the finances of local economic entities, as well as extra-budgetary funds are considered in the corresponding chapters of the textbook as functionally the same type of concepts that have the same features and properties that are generally characteristic of finances of economic entities of the national economy and off-budget funds of the state.

Local finance is an economic relationship through which local governments mobilize, distribute and use, in accordance with the functions assigned to them, part of the social product in monetary form. Local finances are an important component of the financial system of the state. They include local budgets, special off-budget funds and finances of business entities owned by local governments.

The structure and direction of local finances are determined by the functions of local authorities and administration - maslikhats (meetings of deputies), local administration and local self-government.

At present, in the conditions of formation market relations, the scope of activities of local authorities is expanding and they are gaining significant independence in solving problems of a social, economic, environmental, demographic nature.

Local governments are entrusted with important tasks for the implementation of social programs of the state.

Funding for public services activities is mainly carried out at the expense of local financial resources. Social infrastructure sectors provide services to the population at the expense of funds, which in the vast majority are formed from budget funds.

Financial relations at the local level are regulated by the Budget Code, On the Republican Budget for the current year, and other laws on economic and financial activities.

An important role in local finance belongs to local budgets, which are the financial base for the multifaceted activities of local authorities and administration.

Local budgets (oblasts, cities, districts) in Kazakhstan occupy in terms of income and expenditure within 50% of the state budget funds.

In the budgetary form of organizing financial relations, two trends coexist:

• 1) centralization of the system of forms and methods of managing the movement of financial resources as a reflection of a more general process of development of centralized principles in managing the economy in order to overcome the crisis and stabilize;
• 2) decentralization of finances with the strengthening of the functions of local authorities and administration in the formation and use of financial funds.

The second trend is justified by the proximity of local authorities to local conditions, their greater interest in the socio-economic development of the territories.

The principle of the administration of financial relations is the possibility of exercising the control function of finance: the less a certain financial relation is subject to formal control, the more desirable it is to refer to decentralized regulation, and, conversely, with good controllability, to centralized regulation.

World financial theory and practice determine that local (local) budgets function as an independent part of the budget system. The independence of the budget is understood as a situation when the regional government on the basis of a fixed revenue base itself determines the volume of the budget, the specific structure and amount of income and expenditure by item. Its execution is carried out on the basis of the republican legislation, which determines the rights in this area of ​​regional governments.

On the other hand, regions are parts of a single economic complex, which is in a certain subordination, and cannot exist outside of it. The content and nature of regional reproduction are determined by the basic patterns of development of all social reproduction. Therefore, the need for centralism in management within reasonable limits determined by the real state of production is assumed. The economic independence of the regions cannot be absolute. It is always relative, and the smaller the region, the smaller the degree of this independence, that is, the freedom to make decisions independent of the center. In addition, the current level of social economic development regions, the prevailing nature of budgetary relations, the complexity of the period of transition to a market economy do not allow us to talk about the real independence of most local budgets of the republic. Therefore, the principle of sufficiency of funds for financing should be implemented. social infrastructure in amounts that provide the population with a guaranteed minimum of social benefits. The independence of each administrative and economic unit should have a certain optimal level, the criterion of which is the maximum possible realization of the economic interests of the region.

One of the important conditions for the economic independence of the regions is the creation in them of guaranteed sources of funds necessary to finance activities for the reproduction of regional resources and nature protection.

The general principle of determining the optimal combination of centralized and local principles in the management of the region's economy is formulated as follows: centralism in determining the strategy of economic development, independence in its implementation.

Operational and economic independence requires the creation of a separate, fixed revenue system at the local level, covering at least 50% of expenses, and rigid fixing of revenues for the budget for a long period.

In countries with developed market economy the redistribution of national income through the budget is carried out on the basis of the theory of "fiscal federalism".

The essence of the theory is that the entire state economy as a whole (all enterprises, institutions and administrative structures included in government sector economy) is a multi-level system, where there is a division of management functions between levels and their legal subordination along the vertical. In this regard, the focus is on the following questions:

• 1) the optimal number of levels of public sector management;
• 2) optimal distribution of powers between management levels;
• 3) the level of the most effective financing of social expenditures;
• 4) degree of intervention central government in the management and financing of local authorities;
• 5) the share of own funds in financing the expenses of local authorities and administration;
• 6) the form of control over the spending of funds at all levels of the state economy.

The policy of fiscal federalism is aimed at reducing the financial dependence of local governments on the center. This is a way to reduce the deficit of not only local budgets, but also the state budget as a whole, the way to real independence in solving local social problems.

It is achieved through the development of the tax autonomy of the regions, granting them the right to collect local surcharges to national taxes or to assign their own taxes (environmental, property, inheritance, consumption). At the same time, transfer financing from the central budget is being reduced, which does not interest local authorities in the effective use of funds, depriving them of financial independence.

The experience of the development of territorial administration in other countries confirms the need for decentralization of administration, providing local authorities with great rights in solving social and economic problems development of subordinate territories. In relation to the conditions of a unitary state - Kazakhstan, the term fiscal federalism can be transformed into "fiscal regionalism" while maintaining the essence of the concept.

Until 1994, there were 3,045 local budgets in Kazakhstan: in connection with the centralization of the budget system, since the beginning of 1994, 2,500 local budgets were liquidated - rural, settlement, aul. The financial possibilities of the district level in the mobilization and use of financial resources are significantly limited. In the aspect of the above trends in the global economic development of budgetary systems, the processes of centralization of the budgetary system in Kazakhstan can be attributed to forced measures caused by the crisis situation in the budgetary and financial sphere.

Revenues to local budgets of the Republic of Kazakhstan include the following types:

• 1) revenues of local budgets;
• 2) received official transfers from higher budgets, legal entities and individuals, foreign states;
• 3) repayment of the main debt on loans previously issued from local budgets.

In turn, income consists of:

• a) receipts of taxes, fees and other obligatory payments;
• b) non-tax revenues;
• c) income from capital transactions.

Taxes, fees and obligatory payments assigned to local budgets for 2001 included:

corporate income tax, collected in the administrative-territorial unit, in the amount of 50%;

excises on alcoholic beverages, gambling in the amount of 50%;

individual income tax;

social tax;

property tax;

land tax;

vehicle tax;

the share of the Republic of Kazakhstan in terms of production sharing under concluded contracts in the part that goes to local budgets;

fees, fees, duties (with the exception of the fee for registration of the issue of valuable papers).

Non-tax revenues to local budgets include:

dividends on shares of enterprises that are communal property;

income from lotteries run by local authorities;

remuneration (interests) for loans from local budgets;

proceeds from the sale of property owned by local authorities;

proceeds from the sale of services from public institutions subordinated to local authorities;

proceeds from the lease of communal property;

receipts from public procurement organized by state institutions subordinate to local authorities;

proceeds from the lease of land;

pollution charges environment to local state funds for environmental protection in the amount of 50%;

other administrative fees;

administrative fines and sanctions imposed by state institutions subordinate to local executive bodies;

other receipts provided for by the legislation of the Republic of Kazakhstan..

The ratio between separate categories revenues to local budgets on average in Kazakhstan, according to Table 2.1, formed in favor of tax (82.4%), of which social tax, corporate and individual income tax, property taxes (on property, land, vehicles) prevail .

The second source of income is transfers from the republican budget. Although, on average, they take up about 14% of revenues, in the budgets of some subventional regions this source takes up to 50%, since their own tax and other revenues are not enough to achieve an acceptable level of financing of socio-economic needs. This is due to the fact that in such areas there is a narrow tax base, represented by low-power economic entities, whose fiscal potential is small.

In this aspect, the problem of redistributing revenues through the republican budget through the mechanism of budgetary withdrawals and subventions is an urgent one, that is, this mechanism needs to be worked out on an objective basis. For example, there are significant disproportions in the Almaty region: the revenue potential of Almaty is about 25% of the entire state budget, while city budget expenditures are 7% of state budget expenditures, which means mobilization of 2/3 of the revenues collected in the city to the republican budget . Moreover, from the remaining 1/3, the city budget transfers another half of the proceeds to the republican budget in the form of budgetary withdrawals. In the opposite case, Almaty region, having a tax potential of 2.6% of the national one, generates over 4% of the total state budget expenditures, that is, 50% forms the budget through subventions.

The problems of local budgets also lie in the fact that the sectors of the economy that make up their property not only do not provide income for the formation of budgets (housing, cultural and art institutions, communal infrastructure - water supply, transport, cleaning services, etc.), but are unprofitable and absorb a significant part of the local budgets. When property was divided into republican and communal, unprofitable enterprises or those generating small incomes were transferred to the jurisdiction of local authorities.

The expenditures of local budgets (Table 2.1) are dominated by financing of social infrastructure - education, healthcare, social protection of the population (45.4%), from economic sectors - transport and communications.

The functional group - defense spending - means financing the costs of civil defense (in case of emergency events) and military registration and enlistment offices.

The proportion of expenditures on official transfers is quite large - the withdrawal of funds from local budgets for transfer to a higher budget (in this case, the republican one). Budget withdrawals are made in areas that, due to a higher economic level of development or due to natural conditions have tax base higher than the national average and, consequently, a higher level of tax revenues. Both subventions and withdrawals are used to equalize the level of socio-economic development of administrative-territorial units.

As for the share of local budget expenditures in the state budget expenditures for individual functional groups, it occupies a predominant place in the areas of financing social infrastructure, for example:

housing and communal services -100%;

healthcare - 86.1%;

education - 84.0%;

culture, sports, information space - 73.2%;

transport and communications - 62.8%.

The volumes of expenses for other groups are quite significant:

financing of the economy as a whole - 46.4%;

management (public services of a general nature) - 29.9%;

public order and security - 23.4%.

The composition and structure of receipts and spending of funds at the local level depend on the factors that determine the degree of socio-economic development of an administrative-territorial unit: the presence of production facilities, natural resources, objects of social and household infrastructure, unit status, population density, natural and climatic conditions, etc.

The situation is similar at the local level - in the budgets of cities and districts. Thus, in the budget of the Almaty region, 50% of revenues fall on the regional budget and 46% - on the budgets of cities and regions; at the same time, the share of tax revenues is 40% and 60%, respectively, non-tax revenues - 27% and 73%, that is, in favor of grassroots budgets, and subventions - 57% and 43%. The expenditures of the regional budget and the budgets of cities and districts are distributed equally, but in the second case, expenditures on education (80%), health care (71%), administration (60%) prevail, in the regional budget - expenditures on social security and social assistance (90%). %).

Regional representative bodies approve stable standards for the distribution of revenues between the regional budget and the budgets of districts, cities, as well as long-term amounts of subventions transferred from regional budgets to the budgets of districts and cities and budgetary withdrawals transferred from the budgets of districts and cities to regional budgets.

Budgeting is carried out on the basis of local budget programs which are developed by local representative bodies. The financial substantiation and implementation of local budget programs are entrusted to the administrators of local budget programs - local executive bodies and state institutions subordinate to them.

Local executive bodies have the right to borrow funds from legal entities and individuals, as well as from the Government of the Republic of Kazakhstan (by lending from the republican budget) to finance regional investment programs agreed with the Government of the Republic of Kazakhstan. Borrowing is carried out in the form of a loan or issue of securities of local executive bodies; their order is determined by the Government.

The cost estimates of state institutions included in the budget programs are executed by the heads of these institutions in accordance with the financial permits of local executive bodies.

In the budget systems of many countries, it is customary to divide budget revenues at different levels into fixed and regulatory ones. Fixed, or own revenues, are funds that permanently or for a long time (several years) enter the budget of an administrative-territorial unit on a legislative basis in full or in a fixed share. Regulatory funds are transferred from the higher budget in the form of percentage deductions from their income to the lower budget in order to balance the income and expenditures of the lower budget. The list of regulatory revenues may change during the development of a higher budget for a new budget year or on the basis of a resolution or order of a body authorized for such actions. The fixed incomes of local budgets include the so-called " local taxes”, central budgets - “national taxes”.

"Budget regulation" is carried out by transferring part of the proceeds from national taxes and revenues to the territorial level with a lack of own revenue sources for full implementation territorial bodies the functions assigned to them. In Kazakhstan, with the abolition of the division of taxes into national and local, the terms “fixed” and “regulating” incomes or taxes are not used, although the actual fixing of incomes has been preserved, as well as the process of budgetary regulation in the form of subventions, budgetary withdrawals, funds transferred by mutual settlements and other transfers.

Rationalization of budget decision-making is possible by drawing up estimates from scratch (rather than by adjusting last year's data) and using a planning, budget programming (PPB) system.

The zero-based budgeting method is that each year a new estimate is prepared, and the budgetary institution is obliged to fully justify its spending program and determine priorities. This does not exclude funding for programs already underway, but within the framework of the fiscal year's current fiscal policy, determined by the Ministry of Finance in budget circulars used by budgetary institutions in the preparation of estimates.

The PCB method is used to finance measurable results of budget programs in order to determine what combination of organizational arrangements and resource allocation among different institutions will most contribute to achieving the best performance indicators. With this method, cost rates can be used. Thus, the budget process at the local level can be based on performance criteria.

The budgetary mechanism is a set of forms, methods and tools with the help of which the functioning of the state and territorial budgets is ensured. The budgetary mechanism is included in the composition of the financial mechanism along with the insurance mechanism, the tax mechanism, the mechanism for the functioning of enterprise finance, etc.

The organizational basis of the budgetary mechanism is the regulatory and legal support for the implementation of economic relations that develop regarding the formation and use of budgetary funds.

The budgetary right, as a rule, is approved in the Constitution of the country. The implementation of budgetary law depends on the level of competence that the authority is endowed with, i.e. from the subjects of jurisdiction, rights and obligations of the authorities. In the budget process of most states, there is a distinction between the competencies of representative and executive authorities.

Thus, the competence of the government of most post-socialist states is the development and submission to the parliament or the president for submission to the parliament of the draft state budget and a report on its implementation.

The processes of budget formation, its execution and control over the use of allocated budget allocations are within the competence of the executive authorities. The legal framework for the implementation of the budget process is built taking into account the state structure. The budgetary right is realized through the use of budgetary powers.

The budget mechanism is implemented using a series of financial methods and tools. These financial methods include: budget planning, budgetary operational management, budgetary control, budgetary provision (budget financing), budgetary regulation. The main financial instruments used in the process of mobilizing funds to the budget: taxes, mandatory fees, financial sanctions. Tools used in the process of using budgetary resources: standards of budgetary institutions, financial incentives (budget financing of effective directions for the development of the national economy).

The basic components of the budgetary mechanism are:

Budget norms and standards:

rates wages in budgetary institutions, pensions, scholarships;

rates of taxes and non-tax payments;

spending rates in budget institutions X;

norms of budget security;

the size of grants, subsidies, subventions.

Budget incentives:

tax benefits for legal entities and individuals;

budget loans;

tax holidays;

tax deferrals;

writing off tax debts;

providing financial assistance and support.

Budget sanctions:

sanctions for violation of tax laws;

sanctions for misuse of budgetary funds;

penalty for late payment payments;

reduction or suspension of budget financing;

cancellation of benefits.

The mechanism for the formation of budgetary resources depends on the effectiveness of the application of administrative and economic levers and methods of attracting funds to the budgetary fund. These levers include:

development and analysis of budget requests (provide communication between budgetary institutions and the Ministry of Finance);

the use of a system of budgetary restrictions (allows to ensure, through the preparation of information and analytical justifications, the regulation of the compliance with the needs for budgetary funds and the possibility of their satisfaction);

conducting budgetary expertise (a method of budgetary policy, with the help of which each bill is analyzed in order to assess its impact on the revenue and expenditure parts of the budget for the current year;

budget regulation;

budget stimulus;

budget authorization.

The mechanism for the distribution of budgetary resources depends on the regulation of this area of ​​activity in relation to any form of distribution:

interbudgetary distribution of income is regulated by the procedure for distributing income between budgets with the help of such economic instruments as fixed income for different budget levels;

budgetary regulation is regulated by the Procedure for regulating local budget revenues based on percentage deductions from national revenues, interbudgetary transfers, equalization grants, subventions;

interbudgetary redistribution of funds is regulated by the procedure for redistribution of internal budgetary flows in the form of withdrawal of budgetary surplus and provision (receipt) of budgetary loans to cover cash gaps;

inter-budget distribution of expenditures is carried out in accordance with the procedure for delimiting expenditures between budgets according to the principle of subsidiarity;

budget financing is regulated by the procedure and conditions for the provision and use of funds (approved by the Verkhovna Rada) in the form of estimated financing, public investment, targeted loans from the state enterprise budget, state subsidies to enterprises and institutions;

budgetary reservation - in accordance with the procedure for the formation of the reserve fund of the Cabinet of Ministers of Ukraine and reserve funds local councils;

budgetary regulation of expenditures - in accordance with the procedure for rationing the expenditures of budgetary institutions through the establishment of norms for budgetary support (mandatory norms of expenditures and estimated norms of expenditures).

The administrative and economic instruments of the mechanism for the use of budgetary resources are:

budgetary appointments (powers granted to the main managers of budgetary funds by the Budget Codes of Ukraine and other laws or decisions on the local budget);

budget breakdown of income and expenses (method of establishing the procedure for using funds);

sequestration of the budget and budgetary protection (in Ukraine, the remuneration of employees public sector, payroll, purchase of medicines and dressings, provision of food, payment of interest on public debt, transfers to the population for social protection and social security);

budget regulation.

A special role in the management of budgetary resources in the process of their use is played by budgetary monitoring, which is a system of constant monitoring, evaluation and forecasting of the state of both the budgetary system as a whole and individual budgets.

Analytical task:

Compare the main directions of budget policy for the two previous periods.

1In this case, the equation is equivalent in meaning to the equation.

The budgetary mechanism is an integral part of the financial mechanism, represented by a set of types and forms of organization of budgetary relations, the use of budgetary funds, the principles of planning and financing, the conditions and methods for exercising financial control.

The budgetary mechanism is used to purposefully influence the economy through the forms of organization of budgetary relations.

The budget mechanism is based on the following principles:

• 1) the principle of unity of the budgetary system of the Russian Federation;
• 2) the principle of delimitation of incomes, expenses and sources of financing budget deficits between the budgets of the budgetary system of the Russian Federation;
• 3) the principle of balance;
• 4) the principle of independence of budgets;
• 5) the principle of equality of budgetary rights of the constituent entities of the Russian Federation, municipalities;
• 6) the principle of completeness of reflection of incomes, expenses and sources of financing of budget deficits;
• 7) the principle of efficiency and effectiveness of the use of budgetary funds;
• 8) the principle of general (aggregate) coverage of budget expenditures;
• 9) the principle of transparency (openness);
• 10) the principle of budget reliability;
• 11) the principle of targeting and targeted nature of budgetary funds;
• 12) the principle of subordination of budget expenditures;
• 13) the principle of cash desk unity.

Depending on the economic content of different groups of budgetary relations, three links are distinguished in the structure of the budgetary mechanism:

• 1) a mechanism for mobilizing funds to the federal, regional and local budgets;
• 2) a mechanism for spending budgetary funds by providing them to legal entities and individuals;
• 3) a mechanism for interbudgetary distribution and redistribution of financial resources.

In each of the links there are such elements as specific types of budget expenditures, revenues and receipts.

The links of the budgetary mechanism function with the help of methods, methods, conditions that determine the volume and movement of budgetary resources. Methods for calculating budget revenues, the procedure for making payments, the principles and conditions of budget financing, and various kinds of sanctions are parts of the budget mechanism that determine the possibilities for a quantitative and qualitative impact of the budget on the economy.

Separate blocks are allocated in the structure of the budgetary mechanism. With a functional-managerial approach to the budgetary mechanism, the following blocks are distinguished in its composition:

• 1) budget planning and budget forecasting;
• 2) budget execution;
• 3) budgetary control.

The construction of the budget mechanism is significantly influenced by budget device countries. So, in federal states, depending on the level of management of budgetary processes, three links of functioning are distinguished in the budgetary mechanism:

• - federal budget;
• - regional budgets;
• - local budgets.

The budget mechanism is a tool for implementing budget policy and, in general, financial policy states, regions, municipalities. With its help, state and municipal bodies seek to ensure the solution of the tasks formulated in the main directions of financial and budgetary policy for the appropriate period of time, based on the goals set by the course of the country's economic and social development.

The impact of the budgetary mechanism on the economy:

• - quantitative (determined by the volume and proportions of mobilized and redistributed budget funds)
• - qualitative (associated with the impact on the economic interests of business entities through specific types of budget revenues and expenditures)

Elements and links of the budget mechanism:

• - mechanism for mobilizing budget funds -> types of budget revenues
• - mechanism for spending budget funds -> types and forms of budget expenditures
• - budget balancing mechanism -> sources of covering the budget deficit
• - budgetary redistribution mechanism -> forms of financial support for territories

The budget mechanism is a set of methods for accumulating funds in the budget, methods and forms of allocation from the budget and interbudgetary relations.

There are three parts of the budget mechanism:

• 1) methods of accumulation of funds in the budget:
  • - tax (taxes, tax payments);
  • - non-tax (income from the use of state and municipal property, income from the sale of property, income from the sale of state reserves, income from foreign economic activity, fines, penalties of a non-tax nature);
• 2) methods and forms of allocation of funds from the budget:
  • - budget financing - the allocation of budget appropriations on the principles of irrevocable, perpetual and free (gratuitous);
  • - budget lending - the allocation of funds from the budget on the principles of lending, i.e., repayment, urgency, payment;
• 3) methods and forms of interbudgetary relations.

In the third link of the budgetary mechanism, methods for distributing funds between budgets and forms of interbudgetary relations are considered. Interbudgetary relations are part of the financial relations that arise between central authorities the authorities of the Russian Federation, the authorities of the constituent entities of the Russian Federation and municipal authorities regarding the limitation and consolidation of budgetary powers and the redistribution of budgetary funds.