What are transfers? This concept has several definitions at once. So, this term refers to the movement of currency or precious metals from one country to another, the delegation of the right to own such securities as stocks, bills, checks and bonds. In addition, it refers to the movement of the population from one state to another, based on international treaties, as well as the automatic change of citizenship. This article will consider what transfers are from the point of view of the budget sphere.
It should be noted that in the Russian Federation this term began to be used in 1994. The budget transfer was originally understood as the forwarding of funds from the regional financial support fund to lower territorial budgets. Then this word took on a broader meaning. At the moment, they call almost any movement of funds at the federal level.
What are statewide transfers? These are payments that are made from the federal budget without exchange for goods or services. There are several illustrative examples. For example, the state transfers funds to households and various organizations. “Home groups” receive social benefits: unemployment benefits, poverty or disability benefits, pensions and scholarships. Government transfers to companies are subsidies.
Intergovernmental transfers
It should be emphasized that in most countries of the world different regions are developing unevenly. This is due to geographical and climatic features, economic conditions, the distribution of labor and other objective factors. Modern states are distinguished by a management vertical consisting of several levels. As a rule, the fullness of executive power is concentrated in the central office. It can be the Cabinet of Ministers or the Government.
But, in addition to this, there are local authorities. In states operating on the principle of federations, there is also another intermediate administrative authority. It performs its functions within a province, region, state, canton, land or other entity. In order to create more or less similar conditions for the progress of different regions within the same state, inter-budget transfers are used.
This method of transferring financial resources makes it possible to effectively compensate for the disproportionate development of certain territories of the country. Next, the main functions and types of transfers of this category will be considered. It should be noted that this kind of redistribution of funds is only one of the tools used to create equilibrium in the development of regions.
Functions
Various types of inter-budget transfers are used to achieve several key goals. The first of these is the elimination of horizontal imbalances in the economic development of the regions. The allocation of additional financial resources to local budgets makes it possible to prevent or eliminate already arising social tension, which may be caused by economic difficulties.
Another purpose of intergovernmental transfers is to compensate local budgets for expenses aimed at implementing national projects. This makes it possible to prevent an increase in imbalances in the process of fulfillment by the regions of tasks of global importance for the country.In addition, it should be noted that intergovernmental transfers are often used to mitigate the consequences of using an imperfect tax system.
Types of budget redistribution
Methods of transferring financial resources to the regions of the Russian Federation are described in the sixteenth chapter of the Budget Code. It also lists the main forms of transfers, as well as their description. First of all, from their number allocate subsidies, subsidies and subventions. Grants are used to more equitably supply financial resources to the constituent entities of the Russian Federation.
Subsidies are addressed directly to regional budgets and represent compensation for expenses incurred during the implementation of national projects. Subventions, like subsidies, are intended. They also represent compensation for the costs of local budgets, but only to a larger extent. What are transfers other than the three main forms listed above?
Other types of budget redistribution
The legislation of the Russian Federation isolates part of the funds in another group. It is called other inter-budget transfers. What it is? This category appeared in the latest version of the Budget Code, and earlier the laws of the Russian Federation did not provide for the existence of such a group. Other intergovernmental transfers, as well as subsidies, subsidies and subventions, are free of charge. They do not require a return of funds from federation entities in the future. This category, for example, includes financing of closed administrative-territorial entities (ZATOs).