Mankind has always sought to unify the names of its operations, regardless of the field of activity. From this laudable aspiration, various standards, norms, rules, and accounting accounts were born. Of particular interest has always been the possibility of unifying expenditures and budget revenues. The state has long strictly regulated all actions in this direction.
In the Soviet Union, paragraphs, sections and articles of budget expenditures and revenues were adopted. The budget reform, begun back in the late 90s of the last century, smoothly led us first to six-digit codes for budget classification, and then to twenty-digit ones.
BSC - what is it?
BSC - this is how in their professional jargon accountants and financial workers call budget classification codes. Actively apply them in the form in which they exist now, experts began in the early 2000s. The Ministry of Finance of the Russian Federation approved them by its order and annually adjusts it based on the needs identified during the implementation of the budget process.
BSC Application
Taking into account the codes of budget classification, in accordance with the requirements of the instructions relating to budget accounting, twenty-digit accounting accounts are also formed. The budget classification codes affect both the expenditure and the revenue parts of the budget, therefore, experts allocate both BCC revenues and BCC expenses. With their help, planned assignments of income and expenses are unified and the actual budget execution is monitored. Non-budget revenue-generating codings for the budget classification of an accountant are more simply referred to as the KBK of taxes, implying not only the types of income administered by the tax authorities, but also all mandatory payments to the budgets.
KBK taxes
One of the standard questions has always been considered the following: tax CSC - what is it? The question concerns, perhaps, the majority of the inhabitants of our country. Almost all of us are taxpayers, so we have to deal with KBK quite often: either when receiving a tax notice, or when filling out documents for the refund of part of the income tax.
KBK structure
BSC taxes consists of 20 characters.
The first three indicate the ministry or agency that charges and collects this or that type of payment. This may be not only the tax service, but also, for example, the Ministry of Natural Resources.
The fourth to twelfth digits govern the code of the type of income. They show the following:
- 4 sign - income group (tax - 1, non-tax - 2). It should be noted that all revenues for which the tax service is responsible are grouped under the number 1, even the state duty, which in its economic essence is more likely to be related to mandatory payments;
- 5 mark and 6 signs - a subgroup of income, which shows, depending on which base the tax has been calculated (from profit, from total income, from the value of property in property, etc.);
- 7 sign - 11 sign - articles and sub-items of income (more detailed detailing of types of taxes depending on the details of the base);
- 12 signs and 13 signs - indicate to which budget the tax should be paid - federal, regional or local;
- from 14 to 17 mark - a code of subspecies of income. It gives the administrator the opportunity to set aside for himself, for example, payment of the main payment, payment of fines and penalties;
- 18, 19, 20 - mean the code of the operation of the general government sector or KSGU in kbk. What it is? It is worth considering in more detail.
Classification of codes of operations of the general government sector and its application
KOSGU takes place both in the expenditure and in the revenue KBK. Their classification is perhaps the most important, interesting and understandable.
This code is designed to collect operations into groups based on their economic content. Codes can be divided into five main groups, which will then be divided into several smaller subgroups:
- 100 - income;
- 200 - expenses;
- 300 - 400 - operations with non-financial assets;
- 500 - 600 - operations with financial assets;
- 700 - 800 - transactions related to obligations or, more simply, to borrowing.
Since the most interesting and most often used are KOSGU regarding income and expenses, it makes sense to consider them in more detail.
So, the enlarged income group is divided into:
- tax revenues (i.e. all taxes are collected here);
- income associated with the state’s ownership of land or property;
- income from various sanctions - fines, compensation for damage, etc .;
- income from paid services - i.e. this includes, for example, a fee for certificates issued by authorities for money;
- receipts for various kinds of mutual settlements from other budgets - i.e. it can be free financial assistance from one level of government to another, or some targeted state funds;
- income from currency fluctuations. By the way, in case of loss, they can be negative;
- other income that did not find a place in other groups.
Despite the fact that the expenditure side of the budget is described in much more detail, the enlarged group of expenses is divided into only 6 types of subgroups.
The Ministry of Finance instruction is a rather weighty brochure, where all classifications and their details are detailed. Initially, it is somewhat scary, but with a detailed study, it becomes clear that BSC is not only not difficult, but also very exciting.