Budget execution is considered the process of achieving the main goals and objectives established in the planning period. It is no secret to anyone that when approving the budget for the next reporting year, an estimate of the revenue and expenditure parts is drawn up, which must be adhered to throughout the entire period.
According to current legislative norms, budget execution is entrusted to state authorities according to each level of this system. The Ministry of Finance sets the main financial indicators that the state budget must comply with , that is, the consolidated balance sheet. This aspect especially concerns the level of deficit or shortage of income from own sources to cover planned expenses. For this, an annual deficit limit is set annually, exceeding which requires the introduction of emergency measures. As a rule, in this case sequestration is introduced - a procedure involving a proportional reduction in government spending. The only exceptions are socially protected articles, for example, the payment of pensions, benefits, scholarships, support for the most important social and economic programs in the country.
Speaking in actual terms, the direct execution of the budget for expenditures is carried out by fund managers, especially financial authorities. A vivid example of such is the Ministry of Finance, which is capable of not only monitoring, but also correcting the established data. But the revenue side is largely fulfilled thanks to the tax service, which is the main body for accumulating funds in the state treasury.
As you know, in Russia the budget system consists of three main links: the federal, the budget of the subjects of the federation, and local budgets. The federal treasury can be considered as a unifying body, since it places all the funds raised on a separate account with the central bank, and then they are distributed in the selected areas. And the federal treasury is managed by the Ministry of Finance, which seeks to realize the main goals and objectives. These may include the following:
- adhere to the principle of cash desk unity, that is, the accumulation of resources from different sources on one account;
- determination of the amount of subsidies and other appropriations intended for other parts of the budget system, with the subsequent transfer of these amounts to the relevant accounts;
- compilation of a consolidated statement in the context of fund managers;
- carrying out work on planning and forecasting the main economic development trends in the future, on the basis of which it becomes easier to draw up a budget for the future period;
- control over budget execution, which is expressed in the regular provision of reports on the compliance of the actual state of affairs with the planned indicators.
If we talk about documenting, then control activities are carried out on the basis of a budget list. This document is considered a certain basis, based on which you can understand how clearly the budget is implemented. The painting involves a careful reflection of the revenue and expenditure of all items provided by law and annual practice. Among sources of income are individuals and legal organizations. From the first, tax and non-tax payments to the budget are charged due to self-payment in certain bodies. And legal entities, as a rule, transfer funds in non-cash form from their bank account to the corresponding budget account.
And in conclusion, I want to note that budget execution involves strictly targeted use of the received subventions or subsidies. Among the enlarged goals, the content of the apparatus of state administration, the defense of the country, and the maintenance of branches of the national economy of paramount importance are distinguished.