The state is the institution whose purpose is to maintain the existing order. And for this it is necessary to create at least the illusion of justice, leveling the incomes of various segments of the population. If we take this as a fact, then it becomes immediately clear what the appropriations are. They represent the amount of money allocated to fulfill government obligations to the population.
Government allocations are often made to support the functioning of important enterprises or industries. With the help of them, the imbalance in the development of regions is eliminated, the structure of the economy is changing, and the effectiveness of the complex of the national economy is increasing.
The legislative framework
The main regulatory act that governs what appropriations are and how they are allocated is the Budget Code of Russia. Its latest revision was adopted in December 2016. Article 6 defines what the appropriation is. According to her, these are the maximum volumes of financial resources that are envisaged by the government this year for the fulfillment by the state of obligations. Also budget appropriations Articles 69-70, 72, 74, 78-80, 83, 174 of the Civil Code of the Russian Federation are devoted to planning their distribution. Already on their basis, orders are drawn up in municipal financial departments in the subjects of Russia. Since appropriations are expenditures of the state budget, decisions of local government bodies are taken into account when determining their limits.
Distribution principles
Having considered what budget allocations are in accordance with Russian law, we can understand how important they are for the stable functioning of the economy and the maintenance of an acceptable level of well-being of the population. When distributing them, the following principles are taken into account:
- Allocation limits are set on the basis of available and forecast data on the development of regions or industries and the adopted estimate.
- The success of the disbursement of funds by the entity in past periods and the achievement of the set results are one of the factors in deciding on the distribution of state funding.
- The appropriations are allocated by the federal treasury only within the framework of the estimate. Financing costs cannot exceed the planned.
- All expenses are intended and cannot be redirected to other industries or regions.
- Public funds should be used sparingly and as efficiently as possible.
Budget financing objectives
Often, allocations are made to support the existence and support of government agencies. Also, some of them go to payments to the population through local governments. The allocation of the state budget can perform the following tasks:
- Coverage of government obligations to provide services, including under contracts with local authorities.
- Securing funding for social programs for vulnerable groups.
- Supporting initiatives of legal entities that are related to the performance of state tasks.
- Subsidizing private entrepreneurs producing important goods and services as part of development programs.
- Payment of state and municipal debt.
- Allocations for intergovernmental transfers.
- The execution of lawsuits brought against the Russian Federation related to harm to a private enterprise in connection with improper actions by state authorities.
- Financing of subjects of international law.
Receipt scheme
Russian legislation determines the procedure for calculating the state appropriations of various organizations and institutions that exist through budgetary funding. For them, special accounts are opened at the federal treasury. To carry out the estimates, registration accounts are opened. Each of them corresponds to a certain group of expenses and is codified accordingly. It is also possible for the distributor to open consolidated accounts. They are intended for the receipt of funds, the coding of which is not installed. This money then goes not to business entities, but is credited to other accounts opened with the federal treasury.
