Costs and budget revenues are very diverse in their sources, composition, direction of use and other features. To ensure their accounting and planning, a certain system is used. Next, we consider what constitutes the budget classification of the Russian Federation.
Characteristic
The features that the budget classification of the Russian Federation possesses are determined by the socio-economic nature of profit and costs, the management system and the national economic structure. The regulation of the sources of growth and the definition of cost objectives are considered to be unchanged conditions for the effectiveness of the functioning of the financing process.
The budget classification of the Russian Federation is based on factors capable of combining certain types of revenues and costs. This grouping allows you to carry out financial control in the sector National economy and monitor compliance with the law.
Terminology
Budget classification - a grouping of profits and costs on a homogeneous basis. They are located and encrypted in accordance with a specific order. The budget classification is based on such a set of parameters that reflects the socio-economic, departmental and territorial aspect of the growth formation, the direction of funds, their structure and composition.
Value
Budget classification with its skillful use contributes to the formation of a real picture of the movement of finances and an active influence on the course of social and economic processes. When comparing reporting and planned information, analysis and comparison of various indicators, specialists have the opportunity to make reasoned conclusions and make suggestions on the formation and use of funds.
Budget classification also helps to focus the main financial resources on the main areas of socio-economic development. Grouping and detailing costs and profits greatly facilitate the verification of data, comparison of estimates from homogeneous institutions and departments, territorial turnover of funds for several years.
The use of budget classification helps to determine the dynamics of growth and the proportion of certain revenues and costs or the level of diverse needs. Thanks to the common system, conditions are created for connecting various estimates and other information on the transfer of finances to the vaults, economic analysis and consideration are facilitated, and control over the execution of regulations and programs is greatly simplified. In addition, the regulation of the timely and complete accumulation of funds and their use in accordance with the intended purpose is carried out. All this contributes to economical spending, the implementation of the provisions of financial discipline.
System purpose
With the independence of all elements of the financial structure, the grouping provides the basis for the formation of a common methodological approach to the formation and subsequent execution of the types of budgets, for comparing the parameters in the territorial and sectoral contexts. The system, therefore, is needed by state and local governments for the following:
- Conducting financial accounting.
- Budget planning.
- Reporting.
- Managing the implementation of financial programs and plans.
- Implementation of budget control.
- Analysis of the formation and execution of plans.
The procedure for applying budget classification is considered mandatory for all financial components of a single system and organizations. It is formed in accordance with the requirements reflected in certain regulations.
Types of budget classification
During the development of management methods, the system under consideration underwent certain changes. Until 1991, the USSR used two types of classification:
- According to the profit and costs of the union and republican financial reporting systems of the union entities.
- On expenses and revenues of autonomous territories and local budgets.
This division was due to the peculiarities in terms of growth and costs of regional reporting systems. This was also explained by the specifics of the procedure for the cash execution of territorial budgets by the branches of the State Bank of the country. According to the financial reporting systems, only current accounts were carried out. Nevertheless, the presence of common foundations of a single system made it possible to bring these budgets into a single one.
Structure
A new budget classification of expenses and revenues was introduced in 1991. It combined homogeneous groupings by profit and expenses of federal, regional and local financial reporting systems. The new structure reflected changes in the planning, execution, and accounting of expenses and revenues. It was built on the principles of using mixed types of groupings:
- The budget classification of budget expenditures and accounting were carried out by departments depending on their financial plans and estimates. The distribution of costs in them was carried out by direction and destination. In particular, deductions were supposed for social cultural events, the national economy, defense, administration and so on. At the same time, each agency acted as the manager of certain loans.
- The budget classification of income was compiled on the basis of the subject grouping. For revenues, departmental differences are considered insignificant due to the fact that they are not the managers of these funds. In accordance with the budget classification, each enterprise, ministry, association, etc. makes the payments established for it.
At the heart of the system was a certain scheme. It was attended by such elements:
- Section. It reflects the direction of consumption and the type of profit.
- Chapter. Here the department, the ministry was determined.
- Paragraph. It reflected the industry, organization, event, type of profit and cost.
- Article. For costs, a certain direction of funds was established.
Background to the changes
The reasons for the reorganization that took place in budgetary practice are related to reforms in the public administration system and structure, independence of all types of financial reporting systems, expansion of the powers of local and state regulatory bodies in the preparation and execution of their programs. Equally important were the changes in the parts of profit and costs, the decoding of the directions of movement of funds.
For the new classification, certain requirements were imposed. The most important of them are the clarity, simplicity, the most clear reflection of the sources of revenue and cost areas. One of the main tasks of the new system was to ensure comparability of the structure and composition of the parameters of the expendable and profitable parts, as well as their true content. The latter concerns mainly indicators of financial costs.
Legal support
In accordance with the above tasks, they formulated the corresponding order "On Budget Classification". In 1997, a new grouping system was developed and introduced. It is approved by relevant law. According to its provisions, the budget classification includes such components:
- The economic grouping of government spending.
- Functional budget classification of expenditures of the country.
- Grouping of sources of internal revenue to fill the deficits of financial reporting systems.
- Classification by income.
- Grouping by sources of external financing to fill the deficit public finance.
- Distribution by types of external and internal debt of the state.
The departmental groupings on expenses of the local, subject and federal budgets also belong to the general system. It should be noted that the system is undergoing regular updates. In particular, in 2013, Resolution No. 65n was adopted. Budget classification in accordance with it should be used according to the established plan. This plan was developed for the subsequent period. In accordance with it, a budget classification for 2015 has been compiled.
Code generation
In accordance with Resolution No. 65n, the budget classification provides for the fixation of all financial indicators. When codification is used:
- Grouping by operations of the general government sector.
- Lists of administrators of revenues from the federal and subject budgets and sources of filling deficits in the financial reporting system.
To fix the indicators, each is set a specific place in the code. It is a multi-bit parameter. As in previous periods, the budget classification for 2015 reflects the movement of profit, costs and sources of revenue to fill the deficit of the financial reporting system.
General government operations grouping
It has a fairly distinct system. When constructing it, the following principles are used:
- Impact on the net price of assets.
- Separate control over operations between subsectors.
- Impact on the economy.
This classification consists of 8 sections:
- 100 - income.
- 200 is the cost.
- 300 - income non-financial assets type.
- 400 - disposal of non-financial assets.
- 500 - the arrival of financial assets.
- 600 - deductions of financial assets.
- 700 - increased liabilities.
- 800 - decrease in liabilities.
Further, when detailing, the classification of budget items and their structural units is used. Grouping by operations is carried out in accordance with the influence exerted by them on liabilities or assets of the general government sector. The introduction of codification is considered a fundamental difference between the new system and the previous one. Due to it, it is carried out:
- Classification of not only the movement of funds, but also liabilities and assets of the general government sector.
- Accrual method in financial accounting.
Cost grouping
The unified code for classifying expenses provides for certain categories for the separation of administrators of funds - the main managers of the corresponding part of the general financial system. These include departmental, functional and economic groups. Of particular interest is the second category.
Functional grouping of funds
It consists of budget expenditures at all levels of the system. It reflects the direction of costs for the implementation of the main state functions, solving problems of local importance. These include, in particular, financing the implementation of regulations adopted by state authorities, municipal legal provisions approved at the local level, as well as ensuring certain state powers that are transferred to other government levels.
The first level of classification are sections. They reflect the direction of deductions for the performance of the main state functions. The second level is subsections. They specify the direction of funds for the performance of state functions within the framework of the sections.
This classification includes 84 subsections. Their structure is built in accordance with the principle of subfunctions. The "National Issues" section contains 15 subsections.Subsequent detailing is carried out at the level of cost elements and target areas.
The third level of functional grouping of costs
It is composed of targeted articles. They reflect the costs of certain areas of activity that are carried out by the subjects of financial planning and participants in the circulating movement of funds within the framework of the subsections of the functional grouping. Within the framework of the targeted cost items, reporting on the implementation of relevant programs is streamlined. With the help of concretization of the directions of movement of funds, the financial activities of the planning entities and participants in the negotiation process are carried out. Implementation is performed using a non-programmatic method or by forming certain programs.
Revenue accounting system
Revenue classification is a grouping of revenues at all levels of the financial reporting structure. It is based on relevant regulations, which determine the sources of formation of this profit. The classification of revenues contains the code of the administrator of accruals to the budget, subgroups, groups, sub-articles, articles, programs, elements. Also included here is the distribution by location of the economic division of revenues. The structure of the codification of profit contains four parts:
- Accrual administrator.
- Type of income.
- Software grouping.
- Economic classification of charges.
Revenue admins
They are:
- Tax authorities.
- Legal entities authorized by the government and institutions established by them (municipal, state).
- Local government departments.
- Regulatory bodies of extrabudgetary state funds.
They control the accuracy of the calculation, timeliness and completeness of payment, accrual, collection, accounting and decision-making on the offset (return) of funds transferred by mistake or excessively recovered (paid), fines and penalties for them. They also verify the ownership of unknown income.
Revenue administrators monitor, analyze, control and forecast profits from the appropriate source, provide projections for the next financial year to the authorized bodies. The budget classification of taxes is compiled in accordance with the authority to establish deductions by state, subject and local (territorial) governing bodies. So, the collection of property of organizations, which is deducted by the entities, assigned code 02, by individuals - 03. From the last funds are sent to the local budget.
Software revenue grouping
Codification in this case is performed to bring the profit classification to a single form, together with the sharing of costs. Subsequent refinement of the revenue grouping can be carried out by state authorities of the subjects, municipalities. At the same time, in respect of non-tax revenues, the corresponding codes of programs or subprograms are applied on the basis of a normative act or a decision of municipalities in cases where administration is not assigned to institutions of a different level.
Economic profit grouping
This classification is used in accounting for operations of the general government sector in accordance with their economic content. Groups consist of categories uniting all types of receipts by methods and sources of their receipt. Budget revenues may be as follows:
- Gratuitous transfers. They are presented in the form of revenues from state enterprises, off-budget funds, non-residents. They also include financing of other levels, supranational organizations.
- Tax revenues. They are divided into several subgroups. In particular, they include taxes deducted from the payroll, direct transfers, capital gains.This category also includes payments for the use of natural resources, registration and license fees. Such revenues include taxes on services, property, goods, foreign trade and foreign economic transactions, other types of deductions and duties.
- Transfers of state funds. These, in particular, include road and environmental associations.
- Non-tax revenues. This category includes income from property owned by state and municipal property (including from its sale), administrative transfers and fees, damages, penalties. These deductions include revenues from the sale of land allotments and intangible assets, foreign economic activity, capital transfers from non-state sources, and so on.
The administrators are state authorities, the Central Bank of the Russian Federation, local government departments and regulation of extrabudgetary state funds. They also exercise control over the timeliness, completeness and accuracy of revenues.
