Any developed state has budgetary obligations to its citizens, which are also called appropriations. Budget appropriations - these are budget funds that are provided to recipients or budget funds managers with a budget signature. These funds are used for various purposes, including the payment of social benefits, pensions, etc. Let us consider in more detail what the appropriations are and what their types are according to the law.
What is the appropriation?
In the global sense, appropriations are a certain amount of money that is allocated from state or non-state sources for specific purposes. An example is the financing of the construction and repair of roads in rural areas.
With the help of federal budget allocations, the state regulates imbalances in the development of various industries and even entire regions. There is also the opportunity to have a significant impact on the structure of the economy, to increase the level of the national economic complex. Recipients of the appropriations are enterprises owned by the state. In addition to enterprises, the recipient can be a legal entity that takes part in the implementation of state social programs.
The essence of the budget allocation
Funds from the budget in the form of appropriations are always allocated to recipients free of charge. In other words, they are not required to return funds back to the state budget. The economic nature of such payments is manifested in several types of expenses. Each such species can be characterized both in terms of quality and quantity. So, the quantitative component allows you to establish the amount of expenses, and the qualitative reflects their purpose.
As for the structure of budget expenditures, it is established in the budget plan every year depending on the economic situation in the country, as well as public preferences.
Types of budget allocation
According to the legislation, the following types of budget allocations are distinguished:
- Monetary support of institutions and organizations that are completely dependent on the federal treasury.
- The implementation of mandatory payments to citizens of the country, which is already done by local authorities.
- The exercise of certain state powers.
- Compensation of expenses that arose as a result of the implementation of decisions taken by one or another level of government. These decisions can lead either to an increase in waste, or to their reduction.
What relates to budgetary allocations?
It is worth noting that all issues, somehow related to the appropriations, are regulated by the Budget Code of Russia. From the point of view of state policy, appropriations are expenditure obligations that are to be fulfilled in a specified fiscal year. This means that certain limits are set for budgetary obligations and their direct recipients are indicated, as well as the purpose of using these funds. In other words, any public servant or civil service does not have the right to use the appropriations received for their own purposes.
According to financiers, the most significant ones should be singled out from a list of federal budget appropriations. Among them:
- Appropriations allocated for the provision of state (or municipal) plan services, including payment of contracts for the supply of various products, the performance of certain types of work, and the provision of services for certain state needs.
- Social obligations to citizens of the country.
- Assistance in the form of subsidies for legal entities (except government agencies) individuals, individual entrepreneurs engaged in the production of goods and services.
- Budget investments for legal entities, the only exception is municipal institutions.
- Provision of intergovernmental transfers.
- Payments on state (municipal) debts.
- Enforcement of judicial acts relating to unlawful actions of state authorities or local authorities in relation to a citizen or legal entity.
Also, appropriations are also the provision of certain contributions, payments and gratuitous transfers of monetary assistance to subjects of international law.
The provision of public services
Experts in the field of economics and finance make in a separate category those allocations that relate to the provision of services by the state. Among them:
- Subsidies to autonomous institutions and organizations. In this case, appropriations are subsidies allocated for reimbursement of expenses for rendering public services to legal entities or individuals.
- Allocation of subsidies to non-profit structures for the provision of public services.
- Allocation of funds for clear performance of functions budgetary institutions.
- Payment for the procurement of goods, certain works necessary for the needs of the state. This list can include various investments in municipal property, the development and purchase of military equipment, the purchase of goods to replenish the material reserve, etc.
Social Security
As for ordinary citizens, for them the budget appropriation is primarily the payment of pensions, various social benefits, compensations and other social benefits, which are provided for by the Budget Code of the Russian Federation and relevant regulatory documents. These financial obligations are carried out by the state within the framework of social support programs for the population.
Here we are talking not only about the money paid to the population, but also about the payment by the state of the goods and services that are provided to citizens. It is noteworthy that specific transfers and the volume of budget allocations in favor of the population are necessarily determined by one or another law. For example, Federal Law No. 178-F3 refers to the provision of free travel on local trains to several categories of needy people.
