State budget

as the main link of the financial system

STATEBUDGET- this is a list of state revenues and expenditures for a certain period (for a year) and represents centralized funds of funds accumulated mainly with the help of taxes and used forstateregulation of the economy, stimulation of the economic situation, financing of social programs, science and culture, the armed forces, the formation of financial and material reserves, the maintenance of organsstate management.

The state budget is formed on the basis of the Budget Code of the Russian Federation. The state budget has the official status of law. It is approved by the parliament and executed by the government.

The state budgetis a centralized fund of monetary resources necessary to perform the functions of the state. These functions are reduced to the redistribution of funds and control over their effective use. In this sense, the functionsbudgetare similar to the functions of finance, which is understandable, sincebudgetjust a part of the whole. However, with regard tostatebudgetIt is customary to distinguish the following functions related topublic device:

(1) intervention in the economy;

(2) maintenance statecontrol apparatus;

(3) law enforcement and judiciary;

(4) medicine, health care and education;

(5) the defense of the country.

All these functions are largely possible thanks to the financial system.

2. General principles of construction state budget

The principles of the budget system are its fundamental principles and rules: unity, completeness, reality, transparency and independence of allbudgetsincluded in the budget system.

The unity of the budget system is ensured by a unified legal framework, the use of unified budget classifications, the unity of the form of budget documentation, the provision of the necessary statistical and budget information from one levelbudgetto another to compile consolidatedbudgets, agreed principles of the budget process, the unity of the monetary system. Besides. The principle of the unity of the budget system is based on the interactionbudgetsall levels, carried out through the use of regulatory revenue sources, the creation of targeted and regional budget funds, their partial redistribution. The mechanism for implementing the principle of the unity of the budget system is a single socio-economic, including tax, policy.

IndependencebudgetsIt is ensured by the presence of its own sources of income and the right to determine the directions of their use and spending. To own sources of incomebudgetsinclude: statutory sources of income for each levelbudget; deductions from regulatory revenue sources; additional sources established independently by the representative authorities of the subjects and local authorities.

Decisions of representative bodies of power on budgetary issues are subject to publication in the media within the time limits established by the relevant representative body of power, or are brought to the attention of the population in another way based on the capabilities of the relevant representative body of power. In the event of a decision to reject the projectbudgetor on non-approval of performance reportsbudgetand the use of funds from extra-budgetary and foreign exchange funds, the necessary information about the reasons for making such a decision should be published in the media.

These principles of the budget structure can be protected in court - through the arbitration court.

3. Costsstate budget

Above, it was indicated for what purposes the funds are spent. Componentsstate budget. Since the state needs, first of all, to ensure stability in society, these areas of expenditure are: law enforcement agencies,stateapparatus, social goals. Since the first third of the twentieth century, the role of the state has been increasing, and, consequently, the expenditure part of the state budget in economic regulation.

When drafting projectsbudgets, clarification budgetsin the course of their execution, when considering projectsbudgets, approval budgets:

The volume of financing of measures for the socio-economic development of the relevant nationalstateand administrative-territorial formations within the limits of the planned budget revenues, provided grants, subventions, as well as taking into account attracted borrowed funds; directions for the use of funds are determinedbudgetfor investments, own targeted programs; for foreign economic activity, environmental protection measures (in excess of appropriations allocated from environmental non-budgetary funds), restoration of natural and cultural monuments, improvement of cities, towns and villages, maintenance and overhaul of housing stock, public utilities, a network of roads of appropriate importance (in excess allocations from road funds), educational institutions, health care and social security institutions, science and culture, physical culture and sports, the media, for the maintenance of organsstateauthorities and administrations and local governments and for other purposes;

The norms of expenses for the maintenance of housing and communal services, educational institutions, institutions of health care and social security, science and culture, physical culture and sports, police bodies of public security, environmental protection and for other purposes are determined and specified;

The size of grants, subventions is determinedbudgetslower territorial level and their purpose.

Expenses budget, provided for by the budget classification, are divided into expenses included inbudgetrunning costs andbudget development.

To budgetcurrent expenses include expenses for the current maintenance and overhaul (rehabilitation) of housing and communal services, environmental protection facilities, educational institutions, healthcare and social security institutions, science and culture, physical culture and sports, the media, bodiesstateauthorities and administrations, local governments and other expenses not included in development expenses. Tobudgetdevelopment includes appropriations for innovation and investment activities related to capital investments in socio-economic development, for own environmental programs and environmental protection measures (in excess of appropriations allocated from environmental non-budgetary funds), other expenses for expanded reproduction. It is the secondbudget- development - determines the scale and speed of the re-equipment of production, R&D.

4. Incomestate budget

Revenue part budgetsconsists of fixed and regulatory income. Besides, inbudgetsgrants and subventions, as well as borrowed funds, may be received.

The procedure and conditions for the provision and use of subsidies and subventions fromstate budgetRussian Federation are established by the legislative acts of the Russian Federation, and the procedure and conditions for the provision and use of subsidies and subventions from otherbudgetsare established by legislative acts of the republics within the Russian Federation and by decisions of the relevant representative bodies of power adopted within their competence.

In case of insufficient budgetary funds to cover expenses in excess of the minimumbudget, or in cases of temporary financial difficulties in the process of fulfilling the approvedbudgetit is possible to obtain interest-bearing or interest-free loans, as well as issue loans for investment purposes. The maximum ratio of the total amount of loans, credits, other debt obligationsbudgetand the volume of its expenses is established by the laws of the Russian Federation.

However, the main source of incomestate budget(about 95% in RF) are taxes. The foundations of the Russian tax system are established in various regulations, in particular, in the Law "On the Fundamentals of the Tax System in the Russian Federation", which defines the general principles for building the tax system of our country.Lawwas adopted on December 27, 1991.

So, the following main taxes are federal:

a) value added tax;

b) excises on certain groups and types of goods;

c) tax on transactions with securities;

d) customs duty;

e) deductions for the reproduction of the mineral resource base;

g) payments for the use of natural resources;

h) tax on profits of enterprises and organizations;

i) taxes that serve as sources of formation of road funds;

j) stamp duty;

l) state duty;

l) a fee for the use of the names "Russia", "Russian Federation" and words and phrases formed on their basis;

m) tax on the purchase of foreign banknotes and payment documents denominated in foreign currency;

n) income tax (dividends, interest, etc.).

5. Cost sequestration

balancebudgetsall levels is a prerequisite for fiscal policy. The excess of spending over income is a deficit.budget. When there is a deficit budgetthe expenses included in thebudgetcurrent expenses. In order to balance budget mayset deficit limits budget. If during execution budget there is an excess of the deficit limit or a significant decrease in income sources budget, thenthe mechanism of cost sequestration is introduced, which consists in a proportional reductionstateexpenses (for 5, 10, 15 and so on percent) monthly for all itemsbudgetduring the remainder of the current financial year. Protected articles are not subject to sequestration.

The composition of protected articles is determined by the Federal Assembly of the Russian Federation, as well as by the representative authorities of the constituent entities of the Russian Federation within their competence. Covering the deficitbudgetdevelopment is also carried out through the releasestateloans or use of credit resources.

6. Budget process

The budget process is the legally regulated activity of the authorities for the preparation, consideration, approval and executionbudgets. An integral part of the budget process is budget regulation - a partial redistribution of financial resources betweenbudgetsdifferent levels. Regulation of the budget process is a very important procedural part of the functioning of the financial system. This activity consists of several stages, which are briefly discussed below.

Drafting projectsbudgetspreceded by the development of plans and forecasts for the development of territories and target programs, on the basis of which the executive authorities make proposals for itemized authorization of budget expenditures. At the same time, calculations are submitted to determine incomebudgets.

The decision to start work on the drafting of the projectbudgetadopted by the President of the Russian Federation 18 months before the start of the corresponding financial year. Based on this decision, the Government will organize a phased work on draftingbudget. During the first three months, a forecast of the socio-economic development of the RSFSR, a consolidated balance of financial resources, the main directions of budget policy are compiled, and project target figures are calculatedbudgetfor the relevant period.

Over the next four months, the territorial executive authorities are conducting a detailed study and coordination of indicators of socio-economic development and target figures for the project.budget.

Over the next two months, the Government prepares a draft budget message and submits it to the President. The President presents the budget message to the Federal Assembly and sends it for publication in the press. The President's Budget Message includes:

(1) the main indicators of the socio-economic development of the Russian Federation for the relevant period;

(2) consolidated financial balance for the territory of the Russian Federation;

(3) the main directions of the RF budget policy;

(4) information about stateincome in the territory of the Russian Federation;

(5) project budget RF;

(6) draft consolidatedbudget RF;

(7) performance evaluationbudgetsprevious and current financial years.

The President delivers a budget message to the Joint Chambers at the beginning of April of the year preceding the relevant financial year.

Permanent commissions of the Federal Assembly from the moment the draft was submittedbudgetUntil May 15, the Russian Federation is conducting an article-by-article review of the submitted draftbudgetand draw conclusions on it. At the joint chambers from May 15 to May 25, an article-by-article opinion onbudget, plans, taxes and prices, and a discussion is held on the main directions of budgetary policy. Within the next three weeks, no later than June 15, resolutions on the sanctioning of the revenue part are adopted at separate meetings of the chambers.budgetand budget allocations. Budget expenditures are authorized in accordance with the items of the functional budget classification. In the event of discrepancies in the decisions of the chambers, a conciliation commission consisting of eight people from an equal number of representatives of the chambers is created. The decision of the conciliation commission is approved at a joint meeting of the chambers. Decree of the Federal Assembly on sanctioningbudgetmay contain permission to allocate appropriations both for the coming financial year and for a two to three year period.

Bills requiring amendments (increase or decrease) in the amount of budget expenditures must be considered without fail in the process of authorizing budget expenditures. In case of non-authorization of the relevant budgetary expenditures, the entry into force of laws regarding the allocation of appropriations is postponed until a decision is made to authorize the relevant expenditures in the next financial year.

Commission on budget, plans, taxes and prices organizes the project review processbudget, prepares a preliminary conclusion on the project budgetand prepares a draft resolution of the Federal Assembly on the authorization of budget expenditures for consideration at a joint meeting of the chambers.

On the basis of the resolution of the Federal Assembly on the authorization of budget expenditures, the President organizes the revision and refinement of the draftbudget. Refined project budgetsubmitted by the President for consideration by Parliament no later than September 15 of the year preceding the next financial year. When considering a projectbudgetParliament decides on the following main characteristics:

Appropriation ceilingbudgetrunning costs and budget development (expenditure part);

Unbalance limits budget(surplus or deficit in absolute terms or as a percentage of projected revenues).

After approval of the main characteristics of the projectbudgetbudget appropriations are approved by items in accordance with the functional budget classification. Within the framework of approved budget items of this classification, any type of appropriations in the amount equal to or exceeding 1 billion rubles must be indicated in a separate line.

From September 15 to October 15, parliamentary commissions adopt conclusions on the above main characteristics and on individual articles of the submitted draftbudget. On the basis of the conclusions adopted by the parliamentary commissions, the commission on budget, plans, taxes prepares for the project budget summary opinionand submit it to Parliament. From October 15 to November 30, the Federal Assembly approves article by articlebudget in the form of a law.

Statement budget takes place at a joint meeting of the chambers. Report on budget is represented by the President or another official on his behalf. A co-report on behalf of the parliament is submitted by the relevant parliamentary commission. Decision on the approval of the main characteristics budget and under the articles of the functional classification are adopted by a simple majority of votes. Proposals for specific amounts of appropriations contained in the final version of the project are put to the vote budget presented by the President.

In case of non-approval of individual articles of the submitted draftbudgetThe Federal Assembly holds a second vote on the redistribution of budget appropriations within the upper limit of the amount of budget appropriations. The decision is taken by a simple majority of votes.

Within two weeks, the President must sign the law or return it to Parliament with comments for reconsideration. The President has the right of suspensive veto (rejection and return for consideration and approval in Parliament) of certain articlesstate budget. If the President uses the right of veto, the issue under this article is submitted to a joint meeting of the chambers, it must be considered within a week. To override a veto, a parliamentary decision must be passed by a simple majority vote. In case of consent to the veto, the President must issue an appropriate decree on appropriations under this article. During the period until the final decision on the veto is taken, the Government has the right to use monthly budget appropriations under the disputed item in the amount of 1/12 of their value in the previous financial year.

The government annually in May of the year following the reporting year submits to the parliament a report and a report on the implementation of the republicanbudgetfor the past financial year. Performance report budget consideredand is approved by Parliament by a simple majority vote.

From 1997 to 1999, expenditures in the country exceeded revenues and the state budget deficit ranged from 86 to 53 billion rubles. In 2000, the difference between the revenue and expenditure parts of the budget was positive for the first time in the past five years, and the budget surplus amounted to 112 billion rubles.

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The leading role in the formation and development of the economic structure of any modern society is played by state regulation, carried out within the framework of economic policy by the electoral authorities. One of the most important mechanisms that allow the state to carry out economic and social regulation is the financial mechanism - the financial system of society, the main link of which is the state budget. Thus, the state budget is an integral attribute of any state.

The important role of the budget is expressed in the fact that it forms the financial basis for the functioning of the state and municipalities

The budget is a powerful governing mechanism: it ensures the uniform development of the economy and culture throughout the country.

Budget

as legal category- this 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. Such a financial plan establishes the legal rights and obligations of participants in budgetary relations.

Budget

as economic category is a set of economic imperative relations that arise in the process of creation, distribution and use of state and municipal centralized funds of funds.

Budget

The form of formation and spending of the fund of funds intended for financial support of the tasks and functions of the state and local self-government.

The budget structure of a country is determined by its state structure. In unitary states, the budget system consists of two levels - the state budget and local budgets. The budget system of federal states consists of three levels.

The Budget Code of the Russian Federation (Article 10) establishes a three-level structure of the budget system of the Russian Federation:

the first level is the federal budget and the budgets of state off-budget funds;

the second level - the budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds;

the third level is local budgets.

The federal budget and the consolidated budgets of the constituent entities of the Russian Federation are consolidated RF budget

The federal budget and the budgets of state off-budget funds are developed and approved in the form federal laws

; budgets of subjects of the Russian Federation and budgets of territorial state non-budgetary funds - in the form laws of subjects of the Russian Federation

; local budgets are developed and approved by legal acts of representative bodies of local self-government or in the manner prescribed by the charters of municipalities.

Each of the budgets serves as a financial base for the activities of the relevant state or local authorities.

Course program

Topic 1. Basic concepts of finance.
Topic 2 The state budget as the main link in the financial system.
Topic 3. Regional and local budgets.
Topic 4. extrabudgetary funds.
Topic 5. Insurance market finance.
Topic 6. Finances of enterprises and organizations.
Topic 7. Fundamentals of financial control and regulation.
Topic 8. Concept and essence of money.
Topic 9. Money circulation and monetary system.
Topic 10. Fundamentals of monetary policy.
Topic 11. The concept and essence of credit.
Topic 12. Fundamentals of regulation and functioning of the credit system.
Glossary

Lecture 1. Basic concepts of finance

1. The economic essence of finance.

2. History of finance and financial relations.

3. Financial system and financial policy.

Lecture 2. The state budget as the main link in the financial system

1. The function of the state budget.

2. General principles of building the state budget.

3. State budget expenditures.

4. State budget revenues.

5. Sequestration of expenses.

6. Budget process.

Lecture 3. Regional and local budgets

1. The principle of fiscal federalism.

2. Relations between the budgets of different levels.

3. Expenses of regional and local budgets.

4. Revenues of regional and local budgets.

Lecture 4. Extra-budgetary funds

1. The purpose of the creation and functioning of extrabudgetary funds.

2. Bases of regulation of activity of funds.

3. Types of income and expenses of funds.

4. The relationship of funds with other parts of the financial system.

Lecture 5. Finance of the insurance market

1. The concept, essence and place of insurance in the financial system.

2. Participants of the insurance market.

3. Fundamentals of regulation of the insurance market participants.

Lecture 6. Finance of enterprises and organizations

1. Principles of corporate finance.

2. The role of enterprise finance in the redistribution of public goods.

3. Financial regulation of the activities of enterprises.

4. Fundamentals of financial analysis of the activities of enterprises and the effectiveness of the functioning of their finances

Lecture 7. Fundamentals of financial control and regulation

1. Functions and essence of financial control.

2. Types and methods of financial control.

3. Sanctions of financial control.

4. Fiscal regulation of the economy.

Lecture 8

1. Historical development of money.

2. Functions of money.

Lecture 9

1. The concept of money circulation.

2. Elements of the monetary system and their interaction.

3. Laws of monetary circulation.

4. Inflation: concept, essence and types.

5. Consequences of the inflationary impact on money circulation.

Lecture 10. Fundamentals of monetary policy

1. Reasons for the emergence and basic postulates of monetarism.

2. Methods of monetary regulation of the economy.

3. The function of the central (issuing) bank.

Lecture 11

1. The concept of credit.

2. Functions of credit.

3. Credit classification.

Lecture 12

1. The concept of the credit system. Banks and banking operations.

2. Regulation of cash and non-cash payments.

3. The securities market.

I. Finance and financial system

Topic 1. Basic concepts of finance

Basic concepts and functions of finance

Finance is a relationship for the creation and redistribution of public goods and wealth. In this sense, they are closely related to money circulation and the sphere of credit. At the same time, money performs various functions, the main of which can be called the function of a universal equivalent, a commodity that serves as a measure of the value and cost of other goods, works and services. In contrast, finance is a relationship, i.e. are a tool for the accumulation and distribution of wealth, which is carried out, among other things, with the help of money.

Visually, the essence of finance and its constituent components can be represented as follows:

Finance - Relations by

Finance is also closely related to credit: the latter creates the basis for expanded reproduction and accelerated accumulation of wealth. Through credit relations, the distribution function of finance is partially realized and the movement of cash and commodity flows is directed. The healthy functioning of finance largely depends on the state of money circulation and credit: the more developed the monetary and credit systems, the more efficient the accumulation and redistribution of social wealth.

What are the functions of finance? It is customary to distinguish three functions, the essence of which can be represented as follows:

Functions of Finance
Distribution	Control	Regulatory
In the process of production and trade, various incomes arise - the profit of the entrepreneur, the income of his employees, the trade margin of intermediaries, etc. However, in order to meet the development needs of society, it is necessary to redistribute part of these and other incomes. This is carried out by withdrawing (voluntary or compulsory) part of these incomes, creating funds from these funds and spending funds for socially useful purposes: education, medicine, construction, defense, etc. For example, the payback period of railway transport or the subway can reach tens of years. This means that not every corporation, firm or bank will be able to afford such investments; the role of the investor in such inefficient and low-profit industries is assumed by the state. For the construction of the railway and the subway, colossal funds are required - their accumulation and spending is carried out with the help of the distributive function of finance. And where to spend (on what to distribute) resources? After all, they are limited, and from the two projects for the construction of the railway, it is necessary to choose the most optimal one. Questions like this can be answered using the control function.	The functioning of society and the interaction of its members is possible due to this. That control and management mechanisms exist and are constantly being improved. In this sense, finance is more than "democratic", since it has numerous mechanisms for monitoring the correct accumulation and distribution of funds and resources. Let us imagine the previously mentioned workers and entrepreneurs from whom the whole income and savings: the very essence of expanded reproduction and increased profitability is lost. Finance allows you to regulate (with the participation of these workers and entrepreneurs) the rate of withdrawal of their funds. Let us also imagine that the funds collected in this way are spent not on the subway, but on waging an unnecessary war or building a dacha for an official. Was the creation of a centralized fund of resources then justified? Most probably not. Therefore, finance also makes it possible to determine the most optimal ways of spending the accumulated funds, so that the needs of society are met as much as possible.	Now imagine that the resources were accumulated, correctly (at least according to formal signs correctly) the investment paths were chosen, for example, the construction of a hydroelectric power station. However, as a result of the construction, it turned out that valuable agricultural land was flooded, and the surrounding areas are experiencing economic stagnation. How to help people equalize the level of development of their area and compare it with the national average? How to create modern production that could help slow down the outflow of young people and in the long term bring an increase in the living standards of the population of this region? One way is to provide the resources needed to rectify the current situation, build a factory for the production of computers, provide residents with housing, and so on. These resources may be provided by a bank or financial company. But they are unlikely to want to make long-term investments that do not yet promise high profits, all the more so. That to a certain extent we are not talking about making a profit, but about providing assistance to people in trouble. The provision of subsidies by the state budget in this case characterizes the third - regulatory - function of finance.

What is the basis for finance to be able to carry out the described functions? Of course, the basis is the material prerequisite for the accumulation and distribution of resources. The term “public wealth” was used above, which needs to be clarified: the material basis of finance is the national income.

National income is value added, i.e. that improvement of goods, work, services, which at each stage of interaction between producers, intermediaries and consumers is “added” by each of them. In order for an IDO student to receive a RUDN University diploma, someone must print it on stamped paper, for which someone, in turn, must make this paper from raw materials (it is easy to complete the chain: someone must cut down a tree, process it etc.) At each stage of papermaking, each worker "added value", i.e. invested his labor and resources, which increases the price of the final product. So, the totality of all income that was received by each worker at the stage of processing and selling the product is called national income (it can be calculated by adding all the newly created value and subtracting the value consumed during its creation of resources).

National income is the basis of finance. Through the two main components of the national income - accumulation funds and consumption funds - there is an accumulation and distribution of society's resources, alignment of the proportions and trends of economic development and control over the correctness of these measures. If the indicator of national income is declining, then this is a sure sign that financial relations need to be adjusted (for example, to reduce the amount of mandatory withdrawals of the income of workers and entrepreneurs, or to start living “within our means” - to reduce costs and investments in inefficient industries).

Cost sequestration

Balancing the budgets of all levels is a necessary condition for fiscal policy. The excess of spending over income is the budget deficit. If there is a budget deficit, the expenditures included in the current expenditure budget are subject to priority financing. In order to balance the budget, limits on the budget deficit may be set. If in the process of budget execution there is an excess of the maximum level of deficit or a significant decrease in revenues from revenue sources of the budget, then a mechanism for sequestering expenditures is introduced, which consists in a proportional reduction in public expenditures (by 5, 10, 15, and so on) monthly for all budget items during the remainder of the current financial year. Protected articles are not subject to sequestration. The composition of protected articles is determined by the Federal Assembly of the Russian Federation, as well as by the representative authorities of the constituent entities of the Russian Federation within their competence. The development budget deficit is also covered by issuing government loans or using credit resources.

Budget Process

The budget process is the legally regulated activity of the authorities in the preparation, consideration, approval and execution of budgets. An integral part of the budget process is budget regulation - partial redistribution of financial resources between budgets of different levels. Regulation of the budget process is a very important procedural part of the functioning of the financial system. This activity consists of several stages, which are briefly discussed below. The drafting of budgets is preceded by the development of plans and forecasts for the development of territories and target programs, on the basis of which the executive authorities make proposals for itemized authorization of budget expenditures. At the same time, calculations are submitted to determine budget revenues.

The decision to start work on drafting the budget is made by the President of the Russian Federation 18 months before the start of the corresponding financial year. On the basis of this decision, the Government will organize a phased work on the drafting of the budget. During the first three months, a forecast of the socio-economic development of the RSFSR, a consolidated balance of financial resources, the main directions of budget policy are compiled, and the control figures of the draft budget for the corresponding period are calculated.

Over the next four months, the territorial executive authorities are conducting a detailed study and coordination of indicators of socio-economic development and target figures for the draft budget.

Over the next two months, the Government prepares a draft budget message and submits it to the President. The President presents the budget message to the Federal Assembly and sends it for publication in the press. The President's Budget Message includes:

(1) the main indicators of the socio-economic development of the Russian Federation for the relevant period;

(2) consolidated financial balance for the territory of the Russian Federation;

(3) the main directions of the RF budget policy;

(4) information on state revenues in the territory of the Russian Federation;

(5) draft budget of the Russian Federation;

(6) draft consolidated budget of the Russian Federation;

(7) evaluation of the execution of the budgets of the previous and current financial years.

The President delivers the Budget Address to the Joint Chamber at the beginning of April of the year preceding the relevant fiscal year.

From the moment the draft budget of the Russian Federation is submitted until May 15, the standing committees of the Federal Assembly conduct an item-by-item consideration of the submitted draft budget and issue conclusions on it. At the joint chambers from May 15 to 25, an opinion on the budget, plans, taxes and prices is heard article by article and a discussion is held on the main directions of budget policy. Over the next three weeks, no later than June 15, at separate meetings of the chambers, resolutions are adopted on the authorization of the revenue side of the budget and budgetary appropriations. Budget expenditures are authorized in accordance with the items of the functional budget classification. In the event of discrepancies in the decisions of the chambers, a conciliation commission consisting of eight people from an equal number of representatives of the chambers is created. The decision of the conciliation commission is approved at a joint meeting of the chambers. The decision of the Federal Assembly on budget authorization may contain permission to allocate appropriations, both for the coming financial year and for a two to three year period.

Bills requiring amendments (increase or decrease) in the amount of budget expenditures must be considered without fail in the process of authorizing budget expenditures. In the event of non-authorization of the relevant budgetary expenditures, the entry into force of laws regarding the allocation of appropriations is postponed until a decision is made on the authorization of the relevant expenditures in the next financial year.

The Committee on Budget, Plans, Taxes and Prices organizes the process of reviewing the draft budget, prepares a preliminary opinion on the draft budget and prepares a draft resolution of the Federal Assembly on the authorization of budget expenditures for consideration at a joint meeting of the chambers.

On the basis of the resolution of the Federal Assembly on the authorization of budget expenditures, the President organizes the revision and refinement of the draft budget. The revised draft budget is submitted by the President for consideration by the Parliament no later than September 15 of the year preceding the next financial year. When considering the draft budget, Parliament decides on the following main characteristics:

· the upper limit of the volume of appropriations of the current expenditure budget and the development budget (expenditure part);

· the limits of budget imbalance (surplus or deficit in the form of an absolute value or a percentage of projected revenues).

After the main characteristics of the draft budget are approved, budget allocations are approved by item in accordance with the functional budget classification. Within the framework of approved budget items of this classification, any type of appropriations in the amount equal to or exceeding 1 billion rubles must be indicated in a separate line.

From September 15 to October 15, parliamentary commissions adopt conclusions on the above main characteristics and on individual articles of the submitted draft budget. On the basis of the conclusions adopted by the parliamentary commissions, the budget, plans and taxes commission prepares a consolidated conclusion on the draft budget and submits it to the parliament. From October 15 to November 30, the Federal Assembly approves the budget item by item in the form of a law.

The budget is approved at a joint meeting of the chambers. The budget report is submitted by the President or, on his behalf, by another official.

A co-report on behalf of the parliament is submitted by the relevant parliamentary commission. The decision to approve the main characteristics of the budget and the items of the functional classification is taken by a simple majority of votes. Proposals for specific appropriations contained in the final version of the draft budget submitted by the President are put to the vote.

If certain articles of the submitted draft budget are not approved, the Federal Assembly holds a second vote on the redistribution of budget appropriations within the upper limit of the amount of budget appropriations. The decision is taken by a simple majority of votes.

Within two weeks, the President must sign the law or return it to Parliament with comments for reconsideration. The president has the right of suspensive veto (rejection and return for consideration and approval in parliament) of certain articles of the state budget. In case of application

The President of the veto puts the issue under this article to a joint meeting of the chambers, it must be considered within a week. To override a veto, a parliamentary decision must be passed by a simple majority vote. In case of consent to the veto, the President must issue an appropriate decree on appropriations under this article. During the period until the final decision on the veto is taken, the Government has the right to use monthly budget appropriations under the disputed item in the amount of 1/12 of their value in the previous financial year.

The government annually in May of the year following the reporting year submits to the Parliament a report and a report on the execution of the republican budget for the past financial year. The budget execution report is considered and approved by Parliament by a simple majority of votes.

Questions:

1. List the functions of the state budget.

2. Describe the general principles of building the state budget.

3. What is related to the expenditure budget and the development budget.

4. List federal taxes.

Article 9. Independence of budgets

The republican budget of the RSFSR, the republican budgets of the republics within the RSFSR, the budgets of national-state and administrative-territorial formations are independent.

The independence of budgets is ensured by the presence of their own sources of income and the right to determine the directions of their use and spending.

The own sources of budget revenues include:

1. statutory revenue sources for each level of the budget;

2. deductions from regulatory income sources;

3. additional sources established independently by the Supreme Soviets of the republics within the RSFSR, local Soviets of People's Deputies within the framework of the legislation of the RSFSR. The independence of budgets means, in addition to having their own sources, also the right to determine the direction of their use and spending. Thus, the independence of budgets is the main and most important element of budgetary federalism. Another element is the precise procedure for the relationship of budgets.

Article 1

The general principles of taxation and fees that determine the types of tax payments, the amount of deductions from regulatory revenue sources, the standards and the mechanism for distributing revenues between the federal and _________ budgets are determined by the legislation of the Russian Federation.

Article 2

The formation of the budget of ______________, as well as the relationship between the federal budget and the budget of ______________, are carried out in accordance with the legislation of the Russian Federation. Public authorities _________, within their competence, determine the issues of the budget structure and the budget process in _______________.

Article 3

Executive authorities _______________ ensure timely and complete transfer of received taxes and other payments to the federal budget in accordance with the current legislation of the Russian Federation.

Article 4

In order to speed up settlements between budgets and reduce counter financial flows, financing of federal programs and organizations located on the territory of _______________ and financed from the federal budget within the approved limits and estimates of federal executive bodies through the Main Directorate of the Federal Treasury of the Ministry of Finance of the Russian Federation is carried out by direct transfer of amounts from the expense account of the territorial administration of the federal treasury by _________________ within the limits of federal budget revenues collected in the territory of ________________. [hereinafter the final provisions - the entry into force of the Agreement, the validity period and the renewal procedure, etc.]

As for the differentiation of tax payments between budgets, this is usually achieved either by assigning various taxes to different budgets, or by assigning a part of the taxes collected to budgets of a lower level. So, in Russia, income tax "has two rates" - 13% is credited to the federal budget, and from 22 to 30% - regional. “Double” rates for excises, VAT, income tax, payments for the use of certain resources are also fixed.

In addition to the division of tax revenues, relations between budgets can be built in the image and likeness of civil legal relations. This means that if the lower budget incurs any expenses for the higher budget, the latter reimburses these expenses according to the quarterly information on the costs incurred.

In exceptional cases, if the funds of local budgets are insufficient to reimburse expenses, according to the report of the financial authorities, the Ministry of Finance of the Russian Federation makes an advance transfer of funds for these purposes with their subsequent offset in accordance with the established reporting submitted by the financial authorities. Advance receipts are reflected in the accounting of budget execution in financial bodies as funds received from the republican budget of the Russian Federation. Thus, from the general state budget, expenses for the maintenance of state authorities, expenses related to ensuring the activities of people's deputies, reimbursement of expenses for paying the difference in interest rates, compensation for damage caused to citizens, compensation for damage and expenses for paying compensation to rehabilitated citizens, paying compensation victims of political repressions, expenses related to the storage, repair, shipment, transportation of confiscated property and treasures that are subject to transfer to federal ownership, expenses for the payment of benefits and compensations and other expenses.

The basis of the relationship between the budgets of different levels is the need to achieve the so-called minimum budget, i.e. carried out in accordance with the consolidation in accordance with the social policy of certain guarantees for the inhabitants of the region. The minimum budget is the estimated amount of income of the corresponding consolidated budget of the lower territorial level, covering the minimum necessary expenses guaranteed by the relevant higher authorities, part of which, in case of insufficient estimated volume of fixed income, is covered by deductions from regulatory revenues, subsidies and subventions by decision of the higher representative authority.

The expenditure part of the minimum budget is calculated according to the unified or group minimum social and financial norms and standards established by the higher representative body of power on the basis of current legislative acts within its financial capabilities. The development of minimum social and financial norms and standards submitted for approval by the Parliament is carried out by the Government.

The expenditure part of the minimum budget is determined by:

a) the amount of costs included in the current budget, taken into account by higher authorities in the calculations for the budget of the year preceding the planned one (in comparable conditions), taking into account the increase (decrease) in these costs caused by:

· agreed with the higher authority in the manner prescribed by law, the amount of costs in connection with a change in the composition of objects subject to budget financing;

decisions of higher authorities on changes in social and financial norms and standards;

· changes in the index of prices and tariffs according to the calculations of higher executive authorities, carried out in the prescribed manner;

b) the minimum required amount of costs included in the development budget of a given national-state or administrative-territorial entity.

And, finally, the relationship between budgets is built on the basis of respect for the rights and obligations enshrined in legislation or an agreement. This is guaranteed by the fact that public authorities are obliged to compensate in full the damage caused to legal entities and individuals as a result of the adoption by these bodies of decisions on budgetary issues in excess of their competence. The damage caused is subject to compensation at the expense of the appropriate budget on the basis of a court or arbitration court decision.

Topic 4. Extra-budgetary funds

Members of the insurance market.

All participants in the insurance market can be conditionally represented by the following groups:

Buyers	Intermediaries	Sellers	State
Policyholders	Insurance agents and insurance brokers	Insurers	Supervisory authorities
Persons who need or are required by law to insure their life, property or liability. These are those whose financial resources are “withdrawn” by the insurer and transferred to other segments of the financial market	Persons who bring supply and demand together. Insurance agents act on behalf of the insurer, and insurance brokers - on their own behalf, but both of them - on behalf of the insurer.	Properly licensed subjects of the insurance market - in the vast majority of cases, legal entities (including the state). It is they who accumulate the funds of policyholders and place these funds in reliable and liquid assets.	We are talking about those cases where the state does not participate in insurance relations as a representative of one of the three previously listed groups. This refers to the participation of the state in the regulation of the insurance market, which is carried out in various ways (they will be discussed below)

Table 1

Under the sign "Z" are the costs (for the acquisition of assets and the increase in working capital), taken into account with a "minus" sign; under the sign "P" - receipts (from their sale and reduction of working capital), recorded with a "plus" sign.

In this case, row (5) = (1) + (2) + (3) + (4) φ1(t) = row (7) = (5) + (6).

Liquidation refers to the "Step T" column. Calculation of the net real money flow at the stage of liquidation of the object - see table 4 and explanations to it.

The flow of real money from operating activities includes the following types of income and expenses (see table 2):

table 2

№	Name of indicator	The value of the indicator by steps
		Step 0	Step 1	Step 2	...	Step T
	Volume of sales
	Price
	Revenue (=1x2)
	Non-operating income
	variable costs
	fixed costs
	Building depreciation
	Equipment depreciation
	Interest on loans
	Profit before taxes
	Taxes and fees
	projected net income
	Depreciation (=7+8)
	Net inflow from operations (=12+13)

In this case, line (12) = (10) - (11), line (13) = (7) + (8), f2(t) = [f+(t)] = line (14) = (12) + (13), and line (10) is equal for the project as a whole: line (10) = (3) + (4) - (5) - (6) - (7) - (8), for the recipient line (10) = (3) + (4) - (5) - (6) - (7) - (8) - (9).

The flow of real money from financial activities includes the following types of inflow and outflow of real money (see table 3):

Table 3

However, for the project as a whole:

fz(t) = row(6) = (1) + (2) + (3) - (4), (3.5), and for the free funds of the recipient:

fz(t) = row(6) = (1) + (2) + (3) - (4) - (5).

The net salvage value of an object (net real money flow at the stage of liquidation of an object) is determined on the basis of the data given in Table 4.

Table 4

№	Name	Earth	Buildings, etc.	Machinery, equipment	Total
	Market value
	Costs (Table 1)
	Accrued depreciation
	Book value at T-th step
	Liquidation costs
	Capital gains income		No	No
	Operating income (losses)	No
	taxes
	Net liquidation value

The procedure for assessing the liquidation value of an object when it is liquidated at the T-th step (the first step beyond the limit of the service life established for the object) is as follows.

The market value of the elements of the object is estimated independently, based on the changes that are expected in the area of ​​its location. The book value of the object for step T is determined as the difference between the initial costs (line 2) and the accrued depreciation (line 3), i.e. line 4 = line 2 - line 3. In this case, the amount of depreciation is determined from table 2. Capital gain (line 6) refers to land and is determined as the difference between the market (line 1) and book (line 4) value of the property. Operating income (losses) shown on line 7 relates to the remaining elements of equity, which are realized separately, i.e. line 7 = line 1 - (line 4 + line 5). The net salvage value of each element is the difference between the market price and taxes that are charged on capital gains and proceeds from the sale of property, i.e. line 9 = line 1 - line 8.

The totality of financial relations that exist within the framework of a given economic formation forms the financial system. The financial system of Russia is divided into two subsystems: national finances and finances of business entities. The former provide the needs of expanded reproduction at the macro level, the latter are used to provide the reproduction process with monetary resources at the micro level. In turn, national finances are divided into the state budget, off-budget funds, state credit, insurance funds and the stock market. The finances of economic entities include state, municipal, private, joint-stock, rental and public finances. National finances and finances of economic entities differ in the methods of formation and use of funds. National finances are centralized funds of monetary resources that are created for the distribution and redistribution of ND created in the branches of material production. Enterprise finance is a decentralized fund of funds created from the cash income and savings of the enterprises themselves.

The central place in the financial system of any state is occupied by the state budget. It is the financial plan of the state having the force of law. The Budget Code of the Russian Federation defines the budget as 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 self-government. In its economic essence, the state budget reflects the monetary relations that develop between the state and legal entities and the population and consist in the redistribution of ND in connection with the formation and use of funds to finance the economy, the implementation of social policy, the development of science, culture, education, national defense and management society. The state budget can be considered as a means of implementing the financial functions of the state. It performs 2 functions:

1) the distribution function is manifested as a result of the use of funds concentrated in the state to meet public needs;

2) the control function allows you to find out how timely and to what extent financial resources are at the disposal of the state, how they are distributed and used.

The state budget is an important instrument of influencing the development of the economy and the social sphere. With its help, the state, carrying out the redistribution of ND, can change the structure of social production, influence the results of management, and carry out social transformations. The state uses the budget to regulate the economy by maneuvering the monetary resources that come at the disposal of the state. In the process of implementing budgetary policy, the state has the opportunity to apply various forms of influence on the economy: subsidizing and financing enterprises, making public investments, and financing the conversion of defense industries. The result of such an impact is the growth of ND, the solution of social problems, the expansion or reduction of aggregate demand and aggregate supply, and the creation of the necessary infrastructure.

The budget consists of two parts: income and expenses. Revenues serve as the financial base for the activities of the state, expenses are used for national needs. For each country, the budget structure has its own characteristics, as it is determined by the economic potential of the country, the scale of tasks solved by the state, the role of the state in the economy, the international situation and other factors.

The revenue part shows where the funds come from to finance the activities of the state, which sections of society deduct more from their income. Budget revenues are generated from tax and non-tax types of income, as well as from gratuitous transfers. Tax revenues include federal, regional and local taxes and fees provided for by Russian tax legislation, as well as fines and penalties. Non-tax income includes:

1) income from the use of state and municipal property;

2) income from paid services provided by budgetary institutions;

3) profit of the Central Bank;

4) income from the privatization of state property;

5) income from foreign economic activity;

6) receipts from off-budget funds.

Budget expenditures are funds allocated for the financial support of the tasks and functions of the state and local self-government. In budget expenditures, economic relations that arise between the payer and the state are expressed. These relations are manifested when making payments in the form of taxes and fees directed to the formation of the state budget fund. Budget expenditures, depending on their economic content, are divided into current and capital.

Capital expenditures are called budget expenditures that ensure innovation and investment activities. Current expenses are associated with the provision of budgetary funds to legal entities for their maintenance and coverage of current needs.

In the economic literature, there is another classification of budget expenditures. In this case, the costs are divided into 2 parts:

1) public procurement of goods and services;

2) transfer payments.

Depending on the ratio of budget revenues and expenditures, three financial situations are possible:

1) budget deficit (revenues are less than expenditures);

2) budget surplus or surplus (revenues are greater than expenditures); 3) a balanced budget (revenues are equal to expenses).

Common causes of budget deficits for all countries include the following: 1) a drop in income in a crisis state of the economy and a decrease in the growth of national income; 2) reduction of excise taxes received by the budget; 3) increase in budget expenditures; 4) inconsistent financial and economic policy.

The budget deficit can be chronic and short term. Chronic deficiency or long-term imbalance budget is associated with the presence of a gap between income and expenditure over a number of years. The imbalance is short-term if the discrepancy between income and expenses is limited to one year.

If there is a budget deficit, the sources of its financing should be indicated. A budget deficit of up to 10% of the amount of income is considered acceptable, and more than 20% is considered critical. In case of exceeding the limit level of the deficit and a significant decrease in the receipt of revenue sources, the cost sequestration mechanism. Sequester means that it is necessary to make a proportional reduction in expenses by a certain number of percent (5, 10, 15%) monthly for all budget items during the remaining time of the entire financial year. Articles called protected. These are the costs of wages, scholarships, medicines, food, etc.

The main measures to reduce the budget deficit are conversion, the transition from financing to lending, the gradual elimination of subsidies to unprofitable enterprises, reducing government spending, changing the taxation system, and increasing the role of local budgets.

There are three traditional ways to cover the budget deficit: 1) issuing government loans, 2) tightening taxation, 3) issuing money. Of particular importance is the strategy in the field of using internal or external loans as sources of financing the budget deficit. By resorting to such loans, the state accumulates its public debt. Public debt is the sum of budget deficits accumulated over a certain period of time, minus the positive budget balances available at that time. Public debt can be internal and external. External public debt is a debt to foreign states, organizations and individuals. It has a negative meaning, since the country gives away its securities abroad, which will be paid for by subsequent generations. domestic debt is the debt of the government of a given country to its citizens. The growth of public debt reduces the stock of capital in the economy, since the owner of savings, instead of investing them in the economy through the purchase of shares in industrial companies or lending to expand capital, acquires bonds, finances the state.

The budget is an important link in the country's financial system. Reflecting the content of the processes of production and distribution of the social product and national income, the budget is an economic form of formation and use of the main centralized fund of state funds.

The budget annually centralizes part of the cash income of enterprises and the population. The accumulated funds are distributed and used to finance the costs of carrying out the functions of the state. At the expense of budgetary funds, national needs are satisfied, certain areas of activity are financed - defense, management, protection of public order and state security, fundamental sciences, etc. In addition, collective needs are also met at the expense of the budget by financing the costs of education, health care, culture and art.

Table 1 shows the structure of the state budget of the Russian Federation.

Table 1.

Structure of the state budget

Personal tax (income)	Social spending
Corporate income tax	military spending
Turnover tax (VAT)	Spending on basic science and scientific research
	Expenses for financing the economy: A) the provision of subsidies, subsidies, loans; B) state investments B) federal programs
Customs duties
	State service. debt.

The structure of the country's budget depends, first of all, on its state structure. In countries with a unitary structure, the budget system has, as it were, a two-tier structure - state and local budgets. In countries with a federal state system, there is an intermediate link - the budget of the states, lands and their respective administrative entities.

The role of the state budget in social reproduction is determined primarily by the fact that with the help of the state budget (expenditure part) about 30% of the national income, 20% of the gross domestic product, 10% of the gross social product are distributed and redistributed.

It distributes funds between various sectors of the national economy, sectors of production, areas of public activity, economic regions and territories of the country (Fig. 3).

Rice. 3. Qualitative characteristics of the state budget

The state budget actively influences the economy as a whole, as it acts as the budget of the entire national economy. The state budget plays an important role in the sphere of material production, acting as a stimulator of its growth. Budget funds are used to ensure both individual (within individual enterprises) and public (on the scale of the entire national economy) circulation of funds. Budget financing of capital investments and working capital at existing and newly commissioned enterprises, providing for other expenses allows the budget to be included in the individual circulation of funds at individual enterprises, contributing to its continuity and uniformity.

Budget appropriations in the production sector are the main source of its functioning and further development. Most of the institutions and organizations in this area do not have their own sources of income and are on budget financing.

State expenditures on education and health care, social insurance and social security, science, culture and art are the financial base without which it is impossible to conduct socio-cultural events of a national scale. Of great importance is the budget in the formation of a rational structure of non-productive sectors.

Providing financial resources for the functioning of the non-productive sphere, the state through the budget can form the final size of the consumption fund, influence the territorial proportions in its use.

The essence of the state budget as an economic category is realized through its macroeconomic functions: distribution, control and the function of ensuring the existence of the state.

1. The manifestation of the distributive function is due to the fact that almost all participants in social production enter into relations with the budget. The main object of budget distribution and redistribution is the net income received in society. Meanwhile, this does not exclude the possibility of redistributing through the budget and part of the cost of the necessary product (personal income tax), and sometimes national wealth. Due to the distributive function of the budget, the concentration of funds in the hands of the state and their further use in order to meet social needs.

The distribution and redistribution of funds occurs between individual industries and areas of activity, between individual segments of the population, between certain types of services. As a result of distribution and redistribution, various funds of monetary resources of the state and local budgets, social insurance funds, pension funds, employment funds, social protection funds, and an innovation fund are formed.

The distributive function of the budget is also used for state intervention in the process of social production, regulating the economic activity of enterprises, accelerating economic growth, and strengthening the economic activity of entrepreneurs. Through the budget, the state influences not only the redistribution of national income, but also its production, the accumulation of funds, the sphere of consumption, the processes of demonopolization of the economy and the socialization of production, as well as its denationalization.

It is essential that the content of the distributive function of the budget is determined by the processes of redistribution of financial resources between various subdivisions of social production and strata of the population. It is important to note that none of the links in the financial system carries out such a multi-species (intersectoral, inter-territorial) and multi-level (republican, regional, city budget) redistribution of funds as the budget.

2. The control function lies in the fact that the budget objectively reflects the economic processes taking place in the structural links of the economy through the formation and use of state funds.

When forming state revenues, financial control is exercised over the correct collection of various types of taxes, the mobilization of other sources of income, compliance with the established proportions between them, the determination of the tax base, forms of preferential taxation, and the timing of receipt of income. When spending budgetary funds, the effectiveness of their use and their compliance with the intended purpose are monitored.

Financial control is exercised over the production, distribution and consumption of the total social product and national income, over the proportions that develop in the process of redistribution of national income.

3. The function of ensuring the existence of the state sets as its task the creation of a material and financial base for the functioning of the state; the content of the country's administration, presidential power, legislative and executive power, law enforcement and customs authorities, tax service.