“Target items of budget expenditures” have been supplemented with new areas of expenditure;

from Instructions No. 65n in Chapter 182 “Federal Tax Service”, codes for the budget classification of excise tax revenues on certain types of alcoholic beverages imported into the territory of the Russian Federation are excluded;

to Instructions No. 65n was supplemented with new income classification codes for crediting penalties and fines on insurance premiums at an additional tariff (depending on the billing period - before or after January 1, 2017).

However, the amendments most affected the “Classification of the public administration sector” of Instructions No. 65n. They are associated, first of all, with the entry into force of federal accounting standards for public sector organizations “Fixed assets”, “Rent”, “Impairment of assets”.

For the purposes of maintaining budget accounting by administrators of budget revenues, maintaining accounting records by state (municipal) budgetary and autonomous institutions, individual articles of KOSGU are detailed by subarticles. A comparative table of KOSGU codes for 2018 (as amended by the order of the Ministry of Finance of Russia) and those used in 2017 is given below.

2017		2018
№	Name	№	Name	what to consider
120	Property income	120	Property income
		121	Operating lease income	Income from lease payments (other than contingent lease payments) that arise when providing property under operating lease agreements. An exception is rental payments when providing land.
		122	Income from finance lease	Income from non-operating (finance) leases (other than contingent lease payments): under an agreement providing for the provision by the lessor of an installment plan for payment of rental payments; under leasing agreements.
		123	Payments for the use of natural resources	Income from payments for the use of natural resources (including water bodies, forests), rental payments for the provision of subsoil plots for the purposes of geological study, exploration and (or) extraction of minerals, lands, and other similar payments.
		124	Interest on deposits, cash balances	Interest income on the balance of funds placed in the form of deposits, as well as interest on balances of funds in accounts with the Central Bank of the Russian Federation and in credit institutions.
		125	Interest on loans provided	Interest income: on budget credits and loans provided from budgets; loans provided at the expense of targeted foreign loans (borrowings); loans, microloans (loans) provided by budgetary (autonomous) institutions; REPO transactions.
		126	Interest on other financial instruments	Income from interest on other financial instruments not included in subarticles 124, 125.
		127	Dividends from investment objects	Income in the form of profit attributable to shares in the authorized (share) capital of business partnerships and companies, or dividends on shares owned by the Russian Federation, constituent entities of the Russian Federation or municipalities, state (municipal) institutions. Income from the transfer of part of the profit of state and municipal unitary enterprises remaining after paying taxes and mandatory payments.
		128	Income from the granting of non-exclusive rights to the results of intellectual activity and means of individualization	Income from the granting of non-exclusive rights to the results of intellectual activity and (or) means of individualization.
		129	Other income from property	Income from property not included in subarticles 121 - 128 of KOSGU.
130		130	Income from the provision of paid services (work), compensation of costs
		131	Income from the provision of paid services (work)	Income from the provision of paid services, work (except for services, work under the compulsory medical insurance program), incl. income of institutions from receipts of subsidies for financial support for the implementation of state (municipal) tasks.
		132	Income from the provision of services (work) under the compulsory health insurance program	Income from the provision of medical services to insured persons within the framework of the basic compulsory medical insurance program.
		133	Fee for providing information from government sources (registers)	Income from fees for providing information from government sources (registers), including: statistical information; information from the Unified State Register of Taxpayers; information and documents from the Unified State Register of Legal Entities, the Unified State Register of Individual Entrepreneurs; information on registered rights to real estate and transactions with it.
		134	Income from reimbursement of expenses	Income from compensation of expenses, including: reimbursement of state fees previously paid when going to court; fee charged to personnel when issuing a work book or an insert in it; reimbursement of expenses aimed at covering procedural costs; reimbursement of expenses for carrying out enforcement actions by bailiffs.
		135	Income from contingent rental payments	Income from reimbursement of costs for the maintenance of property leased in accordance with a lease agreement (property lease) or a gratuitous use agreement, incl. income from compensation of costs (expenses) for paying for utilities, operation and maintenance services of the rented building (premises).
		136	Budget revenues from the return of accounts receivable from previous years	Receipts to budget revenues from the return of receivables from previous years generated by the recipient of budget funds.
140	Amounts of forced seizure	140	Fines, penalties, penalties, damages
		141	Income from penalties for violation of procurement legislation and violation of the terms of contracts (agreements)	Income from monetary penalties (fines) for violation of legislation on the procurement of goods, works and services, as well as for violation of the terms of contracts (agreements) for the supply of goods, performance of work, provision of services.
		142		Income from penalties on debt obligations
		143	Insurance claims	Receipts of insurance compensation from insurance organizations.
		144	Compensation for property damage (except for insurance compensation)	Income from monetary penalties (fines) and other amounts in compensation for damage to property, incl. damage to financial assets.
		145	Other income from forced seizure amounts	Other proceeds from monetary penalties (fines) imposed to compensate for damage caused as a result of illegal or misuse of budget funds, other monetary penalties (fines) for violation of legislation in the field of finance, taxes and fees, insurance, securities market, other monetary penalties (fines), from confiscations, compensations, penalties, penalties and amounts of forced seizure not included in subarticles 141 - 144.
-	-	175	Exchange differences based on the results of recalculation of accounting (financial) statements of foreign institutions	Exchange differences based on the results of recalculation of accounting (financial) statements of foreign institutions. This subsection of KOSGU is not used to reflect cash receipts and disposals.
-	-	176	Income from valuation of assets and liabilities	Financial result from the assessment of financial and non-financial assets and liabilities, including: fixed assets, intangible assets, non-produced assets, inventories; securities (except for shares, participation in capital); debts on granted credits, borrowings (loans); debt on external debt obligations. This subsection of KOSGU is not used to reflect cash receipts and disposals.
180	Other income	180	Other income
		181	Unidentified receipts	Payments to be classified as unidentified revenues credited to budgets
		182	Income from free use rights	Income in the form of the difference between the amount of lease payments under an agreement on free use (lease on preferential terms) and the amount of the fair value of lease payments.
		183	Income from subsidies for other purposes	Income of state (municipal) institutions from subsidies for other purposes.
		184	Income from subsidies for capital investments	Income of state (municipal) institutions from subsidies for capital investments.
		189	Other income	Other income of budgets, state (municipal) institutions, not included in other articles of group 100 “Revenue” and subarticles 181 - 184 of KOSGU.
231		231	Domestic debt service	Budget expenditures for servicing state (municipal) internal debt, expenses of state (municipal) institutions for paying interest on debt obligations.
		294		Expenses for payment of penalties and fines for late repayment of budget loans.
232	External debt servicing	232	External debt servicing	Budget expenditures for servicing public external debt.
		294	Penalties for debt obligations	Expenses for payment of penalties, fines for late repayment of loans from foreign states (including targeted foreign loans (borrowings), international financial organizations, other subjects of international law and foreign legal entities) received in foreign currency.
-	-	274	Asset impairment losses	Financial result due to a decrease in the value of assets due to their impairment not related to depreciation.
290	other expenses	290	other expenses
		291	Taxes, duties and fees	Expenses for paying taxes (included in expenses), state duties and fees, various types of payments to budgets of all levels.
		292	Fines for violation of legislation on taxes and fees, legislation on insurance premiums	Expenses for payment of fines, penalties for late payment of taxes, fees, and insurance premiums.
		293	Fines for violation of procurement legislation and violation of the terms of contracts (agreements)	Expenses for payment of fines for violation of legislation on the procurement of goods, works and services, as well as payment of penalties for violation of the terms of contracts (agreements) for the supply of goods, performance of work, provision of services.
		295	Other economic sanctions	Expenses for payment of other economic sanctions not included in subarticles 292 - 294.
		296	Other expenses	Expenses not included in articles 210 - 270 and subarticles 291 - 295, including: payment of scholarships; payment to individuals (except for producers of goods, works, services) of state bonuses, grants, monetary compensation, allowances, and other payments; compensation for losses and damages; acquisition (production) of gift and souvenir products not intended for resale; entertainment expenses, reception and services for delegations.
	-	350	Increase in the value of the right to use an asset	An increase in the value of the right to use an asset upon recognition of an operating lease accounting item as part of non-financial assets.
410		410	Decrease in the value of fixed assets	Income from disposal of fixed assets, incl. from the sale of fixed assets, from compensation for damage identified in connection with a shortage of fixed assets, and other similar income. Operations for the disposal of fixed assets.
-	-	411	Depreciation of fixed assets	Amounts of reduction in the value of fixed assets as a result of depreciation.
-	-	412	Impairment of fixed assets	The amount of reduction in economic benefits and useful potential contained in an item of fixed assets as a result of its impairment.
420		420	Decrease in the value of intangible assets	Income from disposal of intangible assets, incl. from sales, income from compensation for damage identified in connection with the shortage of intangible assets. Operations for disposal of intangible assets.
-	-	421	Amortization of intangible assets	Amounts of reduction in the value of intangible assets as a result of depreciation.
-	-	422	Impairment of intangible assets	The amount of reduction in economic benefits and useful potential contained in an intangible asset as a result of its impairment.
430		430	Decrease in value of non-produced assets	Income from the sale of non-produced assets. Operations for the disposal of non-produced assets.
-	-	432	Impairment of non-produced assets	The amount of reduction in economic benefits and service potential embodied in an item of non-produced assets that is not attributable to changes in fair value in the normal course of use as a result of an impairment.
-	-	450	Decrease in the value of the right to use an asset	Operations for the disposal of the right to use an asset associated with the calculation of depreciation on operating lease accounting items. This article of KOSGU is not used to reflect cash receipts and disposals.

A comparative table of KOSGU codes for 2018 (as amended by the order of the Ministry of Finance of Russia) is given in the “Budget” section, subsection “Budget classification of the Russian Federation”, heading “Methodological office”.

To ensure complete reflection of information on operations in accounting (budget) accounting, an institution has the right, when forming an accounting policy, to provide additional detail for the following items:

• 310 "Increase in the value of fixed assets";
• 320 “Increase in the value of intangible assets”;
• 330 "Increase in the value of non-produced assets";
• 340 "Increase in the cost of inventories";
• 530 “Increase in the value of shares and other forms of participation in capital” (within the third category of the code).

Previously, institutions could also detail articles:

• 120 "Income from property";
• 130 “Income from the provision of paid services (work);
• 140 "Amounts of forced seizure";
• 180 "Other income";
• 290 "Other expenses".

However, as of January 1, 2018, the details of these articles are provided for by law, so the institution has no right to make any changes.

No changes were made to the analytical groups of the subtype of budget revenues, i.e. no additional detail is provided for them. This means that digits 15 - 17 of account numbers with the KDB classification type are indicated in the same order.

Since KOSGU is used for accounting (budget) accounting purposes and is involved in the formation of the account number, the Russian Ministry of Finance has prepared changes to the charts of accounts and instructions for their use. Draft orders are placed on draft regulatory legal acts. However, before approving these orders, institutions should be guided by current regulations and record transactions in accordance with them.

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION
ORDER

ABOUT THE PROCEDURE FOR APPLYING BUDGET CLASSIFICATION

RUSSIAN FEDERATION
List of changing documents

(as amended by Orders of the Ministry of Finance of Russia dated December 16, 2013 N 121н,

from 02/20/2014 N 11н, dated 05/14/2014 N 34н,

from 05/26/2014 N 38н, dated 06/11/2014 N 47н,

from 07/30/2014 N 67н, dated 08/29/2014 N 88н,

from 09/26/2014 N 109н, dated 11/21/2014 N 134н,

from 12/16/2014 N 150n)
According to Articles 18, 21 And 165 Budget Code of the Russian Federation (Collection of Legislation of the Russian Federation, 1998, N 31, Art. 3823; 2007, N 18, Art. 2117; N 45, Art. 5424; 2008, N 29, Art. 3418; 2009, N 1, Art. 18; Art. 1780; Art. 2291; Art. 4192; Art. 2013;

1. Approve the attached Directions on the procedure for applying the budget classification of the Russian Federation (hereinafter referred to as the Instructions).

2. Establish that Directions(with the exception of the list and codes of subgroups of types of expenses of the classification of budget expenses) apply to legal relations that arose during the preparation and execution of budgets of the budgetary system of the Russian Federation, starting with the budgets for 2014 (for 2014 and for the planning period of 2015 and 2016).

3. Establish that in 2014 the list and codes of subgroups of types of expenses for classification of budget expenses, uniform for the budgets of the budgetary system of the Russian Federation, are applied, in accordance with the provisions Instructions.

4. Entrust control over the implementation of this order to the First Deputy Minister of Finance of the Russian Federation T.G. Nesterenko.
Minister

A.G.SILUANOV
Does not require state registration. Letter of the Ministry of Justice of Russia dated August 2, 2013 N 01/69992-YUL.
Approved

by order of the Ministry of Finance

Russian Federation

Table 1

Structure of the budget income classification code
Code of the chief budget revenue administrator			Budget income type code										Budget income subtype code				Classification code for general government sector operations related to budget revenues
			income group	income subgroup		income item		income sub-item			income element
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20

2. Code of the chief administrator of budget revenues
The code of the chief administrator of budget revenues is established by law (decision) on the relevant budget.

The codes of the main administrators of budget revenues of the budget system of the Russian Federation - federal government bodies, the Central Bank of the Russian Federation, management bodies of state extra-budgetary funds are given in Appendix 7 to these Guidelines.

Assignment of budget revenue classification codes to the chief administrators of budget revenues is carried out on the basis of the powers they exercise to provide state (municipal) services, other powers to perform government functions, in the implementation of which obligations arise for legal entities and individuals to transfer funds to the budget system of the Russian Federation, and also the powers to present demands for the transfer of property, including funds, to a public law entity.

Federal budget revenues administered by government bodies of the constituent entities of the Russian Federation (state institutions under their jurisdiction) in terms of delegated powers of the Russian Federation are assigned budget revenue classification codes containing the code of the chief administrator of budget revenues, which is a federal government body (state body), carrying out the transfer of powers to the Russian Federation.

Budget revenues of a constituent entity of the Russian Federation (local budgets) administered by government bodies of a constituent entity of the Russian Federation in terms of delegated powers of the Russian Federation are assigned budget revenue classification codes containing the code of the chief administrator of budget revenues, which is a government body of a constituent entity of the Russian Federation exercising the corresponding delegated powers of the Russian Federation. Federation, established by the law on the budget of a constituent entity of the Russian Federation.

Budget revenues of a constituent entity of the Russian Federation administered by local self-government bodies of a municipality (state institutions under their jurisdiction) in terms of delegated powers of a constituent entity of the Russian Federation are assigned budget revenue classification codes containing the code of the chief administrator of budget revenues of a constituent entity of the Russian Federation, which is a government body ( state body) of a subject of the Russian Federation, carrying out the transfer of powers of a subject of the Russian Federation, established by the law on the budget of a subject of the Russian Federation.

The budget revenues of a municipal district, administered by local self-government bodies of the settlement (state institutions under their jurisdiction) in terms of the delegated powers of the municipal district, are assigned budget revenue classification codes containing the code of the chief administrator of the budget revenues of the municipal district, which is a local administration body or other executive administrative body the body of the municipal district that transfers the powers of the municipal district.

The chief administrator of budget revenues of a constituent entity of the Russian Federation (local budget), which is a federal government body (state body) (federal government institution), is assigned the code of the chief administrator of budget revenues of a constituent entity of the Russian Federation (local budget), corresponding to the code of the chief administrator of budget revenues of the budget system of the Russian Federation Federation in accordance with Appendix 7 to these Guidelines.

Classification codes for budget revenues intended to record the receipt of amounts of monetary penalties (fines), compensation for damages are assigned to government bodies (state bodies), management bodies of state extra-budgetary funds, local government bodies, government institutions under their jurisdiction, whose officials accept decisions on the imposition of monetary penalties (fines) for offenses, on the presentation of claims for damages in accordance with the legislation of the Russian Federation, on the referral of cases to the court (magistrate). Classification codes for budget revenues intended to account for income: from the provision of subsidies, subventions (with the exception of a single subvention, consolidated subsidies) and other interbudgetary transfers that have a designated purpose (hereinafter referred to as targeted interbudgetary transfers), the return of these targeted interbudgetary transfers of previous years are assigned to the authorities authorized in accordance with regulatory legal acts to use these funds.

The budget classification of the Russian Federation is a systematized and structured grouping of expenditure and revenue transactions of all levels of budgets of the RF BS, sources of financing budget deficits and operations of public legal entities.

KBC are needed for:

• classification of completed payment transactions;
• tracking movements (movements) of funds;
• determining the amount of outstanding payments;
• facilitating the work of employees of public sector bodies.

Back in June 2019, the Russian Ministry of Finance adjusted the current procedure for applying the budget classification for 2019 and the planned two-year period. Innovations in 65n “Budget classification” are enshrined in order No. 87n dated 06/09/2017.

Instruction 65n has been cancelled! Instead, use the new one, which was approved by Order of the Ministry of Finance dated June 8, 2018 No. 132n “On approval of the Procedure for the formation and application of budget classification codes of the Russian Federation”!

Changes in 2019 by income

The structure and procedure for the formation of profitable BCCs in 2019 remained the same:

However, order 65n as amended for 2019, income is supplemented by new KDBK, the Ministry of Finance announced this in letter dated May 26, 2017 No. 23-01-07/32970. Main innovations:

• KDBK 000 1 14 02022 02 0000 440 - reflects income from the sale of scrap ferrous and non-ferrous metals that were generated as a result of economic activities (for example, the sale of a metal safe);
• KDBK 000 1 14 00000 00 0000 000 - the funds received as compensation for damages for shortages (OS, intangible assets, MH) are reflected using the codes of the budget revenue subtype 400 “Disposal of non-residential assets”;
• KDBC 000 1 13 02992 02 0000 130 - the amount of returned balances of subsidies from budgetary and autonomous institutions formed due to failure to fulfill state (municipal) assignments;
• KDBC 000 2 18 02000 02 0000 180 - the amount of balances of state support subsidies received from enterprises that did not fulfill the conditions of state support (did not reach the established indicators).

Consumable KBK: changes 2019

The structure and procedure for generating budget expenditure codes are enshrined in section 3 of instructions 65n, with changes for 2019:

The list of consumable BSCs has been supplemented in 2019. Officials have introduced new codes for income taxes, excise taxes and resort fees. Let's take a closer look at the innovations:

1. Corporate income tax.

New BDCs have been approved for payments under the NNP in relation to income received from Russian bonds. Moreover, this code is applicable for bonds issued during the period from 01/01/2017 to 12/31/2021, and only in rubles. Such instructions are contained in the order of the Ministry of Finance dated 06/09/2017 No. 87n. New codes:

1. Excise taxes.

By Order of the Ministry of Finance dated 06.06.2017 No. 84n, new KRB were introduced in 65n with changes for 2019, excise tax costs for the following types of products:

1. Resort fee.

The new type of fees is planned to be introduced from 05/01/2018; it will not affect all regions of Russia, but only the Crimea, Sevastopol, Altai and Krasnodar territories. The fee should not exceed 50 rubles per day per person (tourist).

The structure of the new KRB is 000 1 15 08000 02 0000 140 (“Fee for the use of resort infrastructure (resort fee)”), the revenue administrator code has not yet been determined.

New KVR 2019

Let us note that officials not only adjusted the name of the old CVRs, but also expanded the list of expenses included in the groups, and also approved new codes.

Features of using the updated instructions 65n:

KBK 2019

Any expenditure transaction of an institution must be classified in accordance with instruction 65n on budget accounting. To avoid mistakes, we suggest downloading a table that presents all KBK 2019:

Errors in KBK

If an institution made a mistake in the BC code when sending a payment, then the mistake must be corrected urgently. Why? For an organization, a payment with an incorrect code may result in fines and administrative penalties.

For example, GBOU DOD DYUSSHOR "ALLUR" transferred insurance premiums to the Federal Tax Service, but the payment order indicated the wrong BCC. In this case, the Federal Tax Service will not receive the due amount, that is, the debt on insurance premiums for the ALLURE State Budgetary Institution will not be repaid. At the first desk inspection, the inspector will assess fines and penalties for late payments.

How to fix the problem?

If the payment is in the bank, then the accountant should contact the branch of the service organization and cancel the payment. Let us remind you that in some cases bank employees have the right to independently refuse to carry out debit transactions. For example, due to errors in the details or KBK.

If the payment has gone through, the institution should submit an application to search for the payment. After determining the location of the funds, the return procedure is carried out.

The payment slip indicates the BCC of another tax payment. For example, instead of insurance premiums, personal income tax code. In this case, you need to contact the Federal Tax Service with an application for crediting the amounts to the correct code.

On January 1, changes made to the Instructions on the procedure for applying budget classification for 2016, approved by Order of the Ministry of Finance of the Russian Federation dated July 1, 2013 No. 65n (hereinafter referred to as Instructions No. 65n), came into force. The article presents the main innovations that need to be taken into account in the work of the financial divisions of law enforcement ministries and departments.

In accordance with Art. 18, 19 of the Budget Code of the Russian Federation, the budget classification of the Russian Federation is used for the preparation and execution of budgets, as well as for the preparation of budget (accounting) and other financial statements that ensure comparability of budget indicators of the budget system of the Russian Federation. It includes:

• classification of budget revenues;
• classification of budget expenditures;
• classification of sources of financing budget deficits;
• classification of operations of public legal entities (classification of operations of the public administration sector, or KOSGU).

In 2014, Federal Law No. 311-FZ in Art. 18, 20, 21, 23 of the Budget Code of the Russian Federation, significant changes were made that affected the structure of budget classification codes and the new procedure for applying KOSGU. In connection with this, the financial department prepared orders dated 06/08/2015 No. 90n, dated 12/01/2015 190n on amendments to Instructions No. 65n, which took into account the innovations introduced into the Budget Code of the Russian Federation.

Additionally, methodological recommendations on the procedure for applying budget classification in the preparation and execution of budgets of the budget system of the Russian Federation, starting with budgets for 2016 (for 2016 and for the planning period of 2017 and 2018) (hereinafter referred to as the Methodological Recommendations).

Let's look at the main changes that were made to the budget classification for 2016.

Budget income classification code.

The classification of budget revenues is a grouping of budget revenues of the budget system of the Russian Federation.

The budget income classification code consists of 20 characters. The twenty-digit code includes the following (Table 1 of Instructions No. 65n):

• budget income subtype code (14th – 20th digits).

Previously, the budget income classification code looked like this:

• code of the chief administrator of budget revenues (1st – 3rd digits);
• code of the type of budget income (4 – 13th digits);
• budget income subtype code (14 – 17th digits);
• KOSGU code related to budget revenues (18th – 20th categories).

Thus, the KOSGU code in 2016 was excluded from the structure of the budget income classification code, and the income subtype code now includes the last seven digits of the account, including:

• subtype group of budget revenues (14th – 17th digits of the budget revenue classification code);
• analytical group of the subtype of budget income (18 – 20th digits of the budget income classification code).

Article 20 of the Budget Code of the Russian Federation establishes that the income subtype code is used to detail receipts according to income classification codes. The codes of the analytical group of the subtype of budget income by type of budget income (Appendix 11 to Instructions No. 65n) are mandatory for use by all levels of budgets of the budget system of the Russian Federation.

The analytical group of a subtype of income is a grouping of income by type of financial transactions related to income and consists of the following groups:

• 100 “Income” (detailed by codes 110 – 180, within the grouping of transactions related to income);
• 400 “Disposal of non-financial assets” (detailed by codes 410 – 440, operations on disposal of non-financial assets are grouped, including during their sale, in terms of cash receipts and disposals).

As an example, we give budget revenue codes in the table.

Budget income code	Budget revenue code name
000 1 13 01080 01 7000 130	Payment for services provided on a contractual basis by divisions of the internal affairs bodies of the Ministry of Internal Affairs of the Russian Federation for the protection of property of legal entities and individuals, and other services related to ensuring the safety and security of citizens (federal government institutions)
000 1 13 01140 01 7000 130	Payment for services provided by contractual units of the federal fire service of the Ministry of Emergency Situations of the Russian Federation (federal government agencies)
000 1 13 01150 01 7000 130	Income from engaging convicts in paid work (in terms of provision of services (work)) (federal government institutions)
000 1 13 01991 01 0200 130	Other income from the provision of paid services (work) by recipients of federal budget funds (funds received from activities carried out by institutions of the penal system)

Budget expenditure classification code.

From January 1, 2016, the structure of the twenty-digit code for the classification of budget expenditures includes the following components:

• code of the main manager of budget funds (1st – 3rd digits);
• target article code (8th – 17th digits);
• code for the type of budget expenditure (18th – 20th digits).

Previously, the budget expenditure classification code looked like this:

• code of the main manager of budget funds (1st – 3rd digits);
• section code (4th – 5th digits);
• subsection code (6th – 7th digits);
• target article code (8th – 14th digits);
• code for the type of budget expenditure (15th – 17th digits);
• KOSGU code related to budget expenditures (18th – 20th categories).

As can be seen from the above comparison, the 2016 KOSGU code was excluded from the structure of the expense classification code, and changes occurred in the structure of the target expense item code.

In accordance with paragraphs. 4.1.1 of Instructions No. 65n from January 1, 2016, the code of the target item of budget expenditure includes:

• program (non-program) item code (8th – 12th digits of the budget expenditure classification code);
• expenditure direction code (13th – 17th digits of the budget expenditure classification code).

Codes of target expenditure items of the corresponding budget are established:

• for the federal budget and budgets of state extra-budgetary funds of the Russian Federation - by the Ministry of Finance;
• for the budget of a constituent entity of the Russian Federation and the budget of a territorial state extra-budgetary fund - by the financial authority of the corresponding constituent entity of the Russian Federation;
• for the local budget - by the financial body of the municipality.

Target expenditure items of the corresponding budget of the budget system of the Russian Federation are assigned unique codes generated using an alphanumeric series: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, A, B, C, D, D, E, F, I, K, L, M, N, O, P, R, S, T, U, F, C, Ch, Sh, Shch, E, Yu, Z, D, F, G, I, J, L, N, Q, R, S, U, V, W, Y, Z.

Thus, the rules for the application of target items of expenditure of the federal budget and the budgets of state extra-budgetary funds of the Russian Federation are established in paragraphs. 4.1.2.2 – 4.1.2.5 Instructions No. 65n.

List of areas of expenditures used in connection with program items of target items of expenditures of the federal budget (within the framework of main activities (departmental target programs), subprograms of state programs of the Russian Federation, federal target programs), non-program areas of expenditures of federal government bodies, management bodies of state extra-budgetary funds RF, established by paragraph. 4.1.2.4. Instructions No. 65n.

The list of codes for target items of expenditures of the federal budget and budgets of state extra-budgetary funds of the Russian Federation and their names is presented in Appendix 10 to Instructions No. 65n.

Types of expenditures detail the direction of financial support for budget expenditures according to target items of expenditure classification. The list and rules for applying groups, subgroups and elements of expense types common to the budgets of the budget system of the Russian Federation can be found in paragraphs. 5.2 Instructions No. 65n.

The list of types of expenses common to the budgets of the budget system of the Russian Federation (groups, subgroups, elements of types of expenses) is given in Appendix 3 to Instructions No. 65n. The link between codes for types of expenses and KOSGU codes is presented in Appendix 5 to Instructions No. 65n.

We present an excerpt from Appendix 5 in the form of a table.

Type of expenses		KOSGU
Code	Name	Code	Name
130 “Expenses for payments to personnel in the field of national security, law enforcement and defense”
	Monetary allowances for military personnel and employees with special ranks		Wage
			Charges for wage payments
	Expenses for payments to military personnel and employees with special ranks, depending on the amount of salary		Other payments
	Other payments to personnel and employees with special titles		Other payments
			Transport services
			Other works, services
			Social assistance benefits for the population
			other expenses
210 “Development, purchase and repair of weapons, military and special equipment, industrial and technical products and property within the framework of the defense order”
	Purchase of weapons, military and special equipment, industrial and technical products and property within the framework of the state defense order in order to support the state weapons program		Other works, services
			Increase in the value of fixed assets
	Procurement of works and services in order to support activities within the framework of the state defense order		Communication services
			Transport services
			Public utilities
			Other work services
220 “Purchase of goods, works and services to provide special fuel and fuels and lubricants, food and clothing supplies to bodies in the field of national security, law enforcement and defense”
	Providing special fuel and fuels and lubricants outside the framework of the state defense order		Transport services
			Increase in the cost of inventories
	Food supply outside the framework of the state defense order		Transport services
			Increase in the cost of inventories

Classification code for sources of financing budget deficits.

The classification code for sources of financing budget deficits consists of 20 digits. Its structure includes:

• code of the chief administrator of sources of financing budget deficits (1st – 3rd categories);
• codes of group (4th – 5th digits), subgroup (6th – 7th digits), article (8th – 13th digits) and type (14th – 20th digits) sources of financing budget deficits.

As we can see, in the new code structure there is also no KOSGU on sources of financing budget deficits.

Article 23 of the Budget Code of the Russian Federation establishes that the list of codes for types of sources of financing budget deficits is approved by the relevant financial authority, taking into account the general requirements for the procedure for generating a list of codes for articles and types

sources of financing budget deficits approved by the Ministry of Finance.

Codes of groups and subgroups of sources of financing budget deficits, as well as items of sources of financing budget deficits used in the preparation and execution of budgets of the budget system of the Russian Federation, are given in Appendix 6 to Instructions No. 65n.

The detailing of sub-items, subtypes of sources of financing deficits in the budgets of constituent entities of the Russian Federation, budgets of municipal entities is carried out taking into account the specifics of the execution of the relevant budgets in accordance with the legislative acts of the constituent entities of the Russian Federation or municipal legal acts of municipal entities.

If the administration of operations according to the classification code of sources of financing budget deficits is carried out using detailed codes of a subtype of sources of financing budget deficits, when generating reports on the execution of budgets of the budget system of the Russian Federation after the name of the code of sources of financing budget deficits and the corresponding code of the analytical group of the type of sources of financing budget deficits , approved by Appendix 6 to Instructions No. 65n, the name of the corresponding subtype of sources of financing budget deficits is reflected in brackets.

Application of KOSGU 2016.

The procedure for applying KOSGU is the most relevant in 2016. Features of the application of this classification are disclosed in the Guidelines. In particular, in them the Ministry of Finance explained that the Budget Code of the Russian Federation as amended by Federal Law No. 311-FZ does not contain norms for the mandatory application of KOSGU in 2016 when drawing up and executing budgets of the budget system of the Russian Federation.

At the same time, the grouping of income, expenses and sources of financing budget deficits is implemented in accordance with the Budget Code of the Russian Federation by applying the classification of budget incomes, the classification of budget expenses and the classification of sources of financing budget deficits.

Article 219.1 of the Budget Code of the Russian Federation establishes that in the procedure for drawing up and maintaining budget schedules, the right or obligation of the main manager (manager) of budget funds may be established to detail the approved limits of budget obligations only by subgroups (subgroups and elements) of types of expenses.

At the same time, Art. 221 of the Budget Code of the Russian Federation determines that the indicators of the budget estimate of a state institution, the head of which is vested with the right to approve it in accordance with the procedure for approving the budget estimate of a state institution, can be detailed within the limits of budget obligations for:

• codes of elements (subgroups and elements) of expense types;
• codes of articles (subarticles) of the corresponding groups (articles) of KOSGU.

As follows from the explanations of the Ministry of Finance, the main manager of budget funds, in order to organize the execution of the budget for expenses when distributing budget allocations, limits of budget obligations for subordinate managers and recipients of budget funds, can establish additional management detail according to KOSGU codes 2016. Such detail is determined additionally (extra) to the twenty-digit code of the budget classification of expenses (chapter, section, subsection, target expense item, type of expense).

In addition to the above, in Letter No. 02-03-10/38491 dated 07/03/2015, the financial department indicated that, according to changes, from January 1, 2016, KOSGU is used for the purposes of maintaining budget (accounting) records, drawing up budget (accounting) and other financial statements , ensuring comparability of budget indicators of the budget system of the Russian Federation. Please note that this procedure for applying KOSGU is disclosed in paragraph 21 of Instruction No. 157n . Let us recall that, by virtue of the norms of this paragraph, in the 24th - 26th digits of the account number of the working chart of accounts, government institutions, budgetary institutions, as well as organizations exercising the powers of the recipient of budgetary funds, reflect the KOSGU codes. Consequently, KOSGU continues to be applied in 2016, taking into account the changes made to Instructions No. 65n, but only for the purposes of accounting (budget) accounting and reporting.

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In conclusion, we note that the changes made to Directive No. 65n affect almost all items of the budget classification. The main innovations affected the structure of codes for the classification of income, expenses and sources of financing budget deficits and are the next step towards reforming budget legislation.

Federal Law of October 22, 2014 No. 311-FZ “On Amendments to the Budget Code of the Russian Federation.”

Instructions for the application of the Unified Chart of Accounts for public authorities (state bodies), local governments, management bodies of state extra-budgetary funds, state academies of sciences, state (municipal) institutions, approved. By Order of the Ministry of Finance of the Russian Federation dated December 1, 2010 No. 157n.

A. Nuzhin
magazine expert
“Power ministries and departments:
accounting and taxation", No. 2, February 2016.