The state budget is a document that reflects the costs and revenues of the country. Usually it is compiled for one calendar year (from January 1 to December 31). The importance of the budget for the state is difficult to overestimate. Taking into account its importance for all spheres of public life, its implementation is ensured by special legislative norms. At the same time, the budget itself has the force of a normative act. Further in the article we consider the main sources of expenditures and revenues of the state budget.
Document Functions
The state budget is required:
- To regulate cash flows, strengthen ties between the center and the regions.
- Legal control of the government.
- Reflection of information on the actions of the cabinet.
- Definitions of indicators of economic policy, the formation of a framework of acceptable government actions.
Almost every economic institution (at an enterprise, bank, financial fund) develops a plan for obtaining funds and expenses, reflects the sources of income and expenses.
The state budget is a prerequisite and is considered the financial basis of the work of the government, its implementation of the functions that its society endowed. With the help of this document, it is possible to resolve issues related to monetary regulation both at the macro level and on the scale of the entire national economic complex as a whole. The economic significance of the state budget lies in the fact that it is due to it that a substantial part of demand is formed. The main sources of state budget revenues are considered means of the population.
Deficit and surplus
The formation of budget revenues is the final stage of the movement of money. Funds come from the real sector of the economy and other large financial sectors. Costs, in turn, are the final point of the flow of resources aimed at meeting the needs of the authorities and society.
The budget deficit is the amount by which budget revenues are less than costs. Surplus, respectively, represents the amount by which the amount of income is higher than expenses. It occurs quite rarely. As a rule, there is a budget deficit in which additional funds must be found to cover all planned costs.
Classification of the main sources of state budget revenues
Funds go to the treasury through internal and external channels. The sources of state budget revenues include:
- Issue (issue) and sale of bills, bonds (securities).
- Loans allocated from budgets of other levels (regional, local).
- Central Bank funds.
This list shows the internal financial channels. External sources of revenue of the state budget of the Russian Federation are:
- The proceeds from the sale of securities in the international financial market.
- Loans received from foreign banking and other international financial institutions.
- Loans issued by foreign governments.
Internal and external financing in aggregate forms the total volume of revenues to the treasury.
Budget requirements
A financial document governing state revenues and expenditures should not fix a strict link between the sources of state budget revenue generation and expense items. The government should be able to quickly identify priority tasks and how to solve them. In this case, the flexibility of state economic policy will be ensured.
The most important principle in the formation of the state budget is to observe the hierarchy of budgets. For example, cash flows from other levels cannot be included in the federal treasury. Compliance with this principle ensures the autonomy of budgets.
The financial document should reflect all revenues and expenses controlled by the government.
Treasury income
Government revenues are part of national cash. Their distribution is carried out through the acquisition of ownership and disposal of power.
Treasury revenues are intended to form a financial base, which, in turn, is used to implement socio-economic policies and ensure the country's defense and security.
Types of Income
In accordance with article 41 of the BC, the main sources of state budget revenue are tax and non-tax revenues, as well as gratuitous transfers.
The income items of the budget for the coming year include funds remaining at the end of the previous period.
Tax revenues are provided for by the legislation of the Russian Federation. These include, in fact, regional, local and federal fees and taxes, as well as fines and penalties.
Normative regulation
From an analysis of the BC norms, we can conclude that taxes are the main source of state budget revenues. The Codex contains a lot of articles on these revenues.
So, according to the provisions of Art. 49, the state budget revenue sources include own tax payments received by the federal treasury, except for funds transferred as regulatory income to the financial systems of regional and local levels. During the execution of the state budget, funds may come in offset.
In accordance with article 55 of the BC, regional budget revenues are generated from own taxes and regulatory revenues. An exception is funds transferred to municipalities.
In the 60th article of the BC, it is established that local budgets are formed at the expense of their own revenues and part of federal and regional taxes. The local treasury consists of funds received from the sale and use of municipal property, the provision of paid services by local authorities, etc.
Non-tax revenues
These sources of state budget revenues are presented in the form of:
- Property that is state property. The treasury receives funds received from the sale of valuables, their other onerous alienation, as well as from their use.
- Services provided by relevant government agencies on a fee basis.
- The funds received in the application of measures of responsibility (criminal, civil, administrative). These sources of state budget revenue include confiscations, fines, amounts received in compensation for damage caused to the Russian Federation, regions, municipalities, as well as other forcibly withdrawn amounts.
- Financial assistance, loans received from budgets of other levels.
- Other non-tax revenues.
Sources of state budget revenues are recognized as the proceeds from the use of state property. Speech, in particular:
- On the lease of property.
- Interest on the balances of budget funds held in the accounts of financial and credit institutions.
- Profits earned with a share in the authorized capital of business entities, or dividends on shares owned by the Russian Federation, entities or municipalities.
Own and regulatory income
The treasury's own revenues are funds allocated to it partially or fully on an ongoing basis. Such income can be both tax and non-tax.
Regulatory revenues are federal and regional mandatory payments, in respect of which there are established standards for deductions to the budgets of entities or municipalities for the coming financial year. The relevant standards are defined in the legislation of that level of the financial system from which the funds are transferred.
Mandatory deductions
The Tax Code establishes the obligation for all business entities to pay fees and taxes to the state budget. These payments are the main source of income. They are divided into direct and indirect taxes. The latter are the main source of state budget revenues. They are presented in the form of taxes levied on consumers. Among them are VAT, excise taxes, customs duties and duties. Indirect deductions affect the price level and consumption structure.
Direct taxes call funds that are levied directly from the source of their occurrence. These include income tax, personal income tax, etc.
In the indirect payment system, VAT is of particular importance. Its share is about 40% of all revenues. In this regard, VAT is often considered the main source of revenue for the state budget. Excises are federal taxes levied on a limited group of goods. A key feature of such products is its high profitability. Among the goods subject to excise taxes (excisable goods), there are gasoline, tobacco products, oil, alcohol, natural gas, etc.
Direct taxes can act not only as a source of state budget revenues. Similar payments are set at the regional and local levels. This will depend on the location of the enterprise, its scale.
Personal income tax rates - another important source of state budget revenues - vary in different countries and can vary from 6 to 45%. In Russia, income tax is levied at a rate of 13%.
Classification of income by level
Taxes may be federal, local or regional. The first ones include VAT, personal income tax, deductions from profits, customs duties, excise taxes. Regional are payments from property of organizations, deductions from sales of products, license fees, etc.
Local are taxes that are enforced by municipal legal acts.
Features of the formation of revenue items of the state budget
Funds are transferred to the treasury based on the provisions of the Tax Code and the Commercial Code. Funds from sources of state budget revenues are recognized as received from the moment the financial institution conducted an operation to credit them to the account of the competent authority responsible for replenishing the treasury and spending its funds.
Budget expenses
They are carried out according to uniform methodological principles at all levels of the financial system. At the same time, unified minimum security standards for the provision of public services apply. They are determined by the government.
Treasury expenses are divided into capital and current. The first should include the costs of innovation and investment. In their composition:
- Investment costs according to the approved program.
- Funds allocated in the form of budget loans and loans to legal entities.
- Costs of overhaul of state property.
- Costs required to expand production.
A development budget is formed from capital expenditures. The rules for its creation are established by federal law.
Current include expenses aimed at ensuring the work of state authorities, regional and municipal government structures.
Cost Forms
Budget expenses are expressed:
- In appropriations for the maintenance and organization of activities of budgetary organizations and institutions.
- Payment of works, services, products under municipal or state contracts.
- Transfers to the population.
- Budget loans, subsidies, subventions.
- Investments in the capital of newly created or existing organizations.
- Loans to foreign countries.
- The cost of servicing and paying public debt.
The recipients of funds are budgetary institutions.
Cost system
Due to the costs incurred from the treasury, the state has an impact on the socio-economic status of society.
The expenditure of funds is made in the amounts and in the directions established by federal law and other regulatory acts. Budget costs can be classified according to different criteria. A key sign of differentiation is the direction of financing. Budget funds may be spent on the implementation of social, economic, defense and other functions.
At the expense of the state treasury, funding is provided:
- The activities of power structures.
- Science.
- National defense.
- The real economic sector.
- State reserves.
- Internal and external debt.
- The system of regulation of the financial potential of the country.
However, there are several areas that require costs not only from the state, but also from the regional and local budgets. These include financing:
- Law enforcement activities.
- Economic sectors. This is primarily about agriculture, construction, the work of transport enterprises, communications organizations.
- Fire safety.
- Science and social and cultural events.
The key principle of cost differentiation in the budget system is the conformity of their powers assigned to authorities of one level or another.
Conclusion
Budgeting is a daunting task. In the preparation of expenditure and revenue items should be taken into account not only the needs, but also the capabilities of the state and society. The priority areas of financing currently include:
- Social sphere.
- The judicial system.
- The military sphere.
- Healthcare
- Education.
To ensure the normal functioning of these areas requires a large amount of cash. The government is faced with the task of finding promising sources of income. It is possible to increase the amount of funds by raising taxes. However, as practice shows, this measure can only be temporary and be used for a period of crisis.
To increase the volume of revenues, it is necessary to develop foreign trade relations, establish contacts with foreign enterprises, and develop domestic production. Currently, the commodity sector of the economy is developing quite successfully. Russia is a major supplier of gas to various countries of the world. Due to the sale of this raw material, a lot of money comes to the treasury. However, today they are extremely insufficient to boost the country's economy.
At the state level, various programs for the development of the national economic complex are being developed. Today, the emphasis is on domestic production, the supply of Russian products abroad. Of course, the existing problems in relations between the Russian Federation and the West create significant obstacles to the implementation of state economic policy.