A competent social policy implies that the state is obliged to provide assistance to needy categories of people or to allocate financial resources for relevant projects in the regions. At the same time, money from the state budget is distributed among the subjects not only to support the population. There are larger costs. In general, the main difference is in the procedure for the appointment of such assistance and in the final result.
To understand how subsidies differ from subventions and subsidies, one should refer to their definitions. To do this, look into the dictionary of economic terms. Many people do not know how the subsidy differs from the subvention. What is the difference between these concepts, we will consider in detail in our article.
Subsidy
According to the dictionary, a subsidy is a one-time allowance, which is allocated from the state budget. Moreover, such assistance can be provided directly to an individual in the form of payments (direct subsidy) or in the form of benefits (indirect). In addition, money can be transferred to the account of regional authorities, so that in the future responsible organizations bring the money to a direct addressee.
Thus, a subsidy is a payment or benefit in kind provided to individuals, regional authorities, states or organizations within the framework of the implementation of certain goals on an irrevocable basis from a municipal, state or specially created fund.
The ultimate goal of such payments is the financial support of citizens or co-financing of regional budget expenditures.
Subvention
We continue to consider how the subsidy differs from the subvention. In the economic dictionary, the explanation for the second term is given as follows: these are inter-budgetary funds allocated for the financing of certain projects or the implementation of specific obligations.
The subvention is not targeted social assistance to the population. It represents an investment in a large project at the budget level of the authorities. If the financial resources are not fully used, their balance is refundable, and the subsidy is given free of charge.
So, the subvention is a budget target financing. If it is aimed, for example, at the remuneration of teachers, then it cannot be spent on other needs. Subvention is direct targeted support, which does not imply equity participation. We found out how the subsidy differs from the subvention in the budget. Consider some of the features of these cash grants.
Subsidy when assigned
The main differences between subsidies and subventions are to whom and for what purpose this money is addressed. Now you should understand under what conditions such payments can be received.
The subsidy is assigned to poor and socially unprotected categories of citizens in the form of financial support if the facts are documented:
- Those in need are citizens of the Russian Federation or official residents permanently living in the country.
- Applicants for a subsidy have no arrears in payment of utility bills.
- They have lodging and permanent registration.
Subsidies affect the following social categories of citizens:
- Senior citizens.
- Young and large families.
- Disabled people and families where they are cared for.
A representative of any of the above categories may apply for a subsidy if his income does not exceed the amount of the minimum level established in the state.If cash assistance is granted to a family, then the total income (including scholarships, allowances and other payments) of all members is calculated. This amount is divided by the number of people registered in the dwelling. To find out how the subsidy differs from the subvention, we will analyze under what circumstances it is possible to obtain the latter.
When subventions are assigned
They are paid only on the basis of submitted applications from local authorities. At the end of a fiscal year, administrative employees of a constituent entity of the Russian Federation analyze expenditure items for a specific period and identify the needs of the region. Based on the financial report, an application is prepared for the next year, which is sent to the federal government. After that, all requirements are considered. Some of them receive approval and the right to a subvention.
At the end of the billing period, unspent funds are returned. It is undesirable to go beyond the budget, as well as to receive too much balance. This means that the calculations were made incorrectly, and part of the funds was held in the accounts unnecessarily.
Types of Cash Assistance
Both the subsidy and the subvention are allocated for specific purposes. This is their similarity. What is the difference between a subsidy and a subvention? Possible options for subsidies from the state budget are associated with general trends in the country's economy. In accordance with this, it is possible to distinguish certain varieties of these payments. Types of subventions differ in the purposes for which they are distinguished:
- The exercise by local authorities of their powers.
- Budget deficit coverage.
Cash assistance for medicine, education or construction are not subventions, but co-financing of the budget, which will be further allocated taking into account the needs of the subjects.
Types of subsidies are a reflection of the main directions of social policy in the state:
- Support for family, old age, childhood.
- Separation of responsibilities for caring for the disabled.
The state is trying to take into account the needs of citizens, so subsidizing is one of the most flexible systems. Every six months, the laws that govern the procedure for assigning payments are updated. To date, subsidies are allocated for such needs:
- Payment of housing and communal services.
- The acquisition of housing.
- Starting a business for people registered with unemployment.
- Support for people with disabilities and those affected by disasters and disasters.
- Helping young families, parents with many children and single mothers.
- Pension and child benefits.
- Quotas for expensive treatment.
- Benefits for veterans and military personnel.
findings
We examined how the subsidy differs from the subvention. These are fundamentally different types of financial subsidies. If subsidies help specific categories of people, then subventions are aimed at solving the regional targets. Their general purpose is to help the population.
