Fiscal policy is one of the key areas of government activity in most countries. For Russia, the corresponding direction of state activity is considered especially significant. The fact is that the Russian economy is largely based on budget capitals, on the activities of state enterprises. The effective distribution of the corresponding income and expenses is the most important factor in maintaining the stability of the national economy. One of the main criteria for the quality of work with the country's budget is the correct classification of certain items of revenue or expenses of the state treasury. There are many approaches to how it should be implemented. Many of the relevant criteria are fixed at the level of federal sources of law adopted by the Russian authorities. Which of the relevant acts can be considered key? How noticeable are changes in the regulations of these sources of law over time?
The main categories of economic classification of budget expenditures
The economic classification of budget expenditures of the Russian Federation involves the distribution of relevant costs into 3 main groups: in fact, expenses, receipts of financial assets, disposal of related assets, as well as obtaining non-financial resources. In turn, each group includes additional categories. Consider this feature in more detail.
Expenditures as one of the key groups in the economic classification
Let's start with expenses as one of the key groups that represent the economic classification of budget expenditures of the Russian Federation. There are additional subcategories in the cost structure, namely: remuneration of labor and related accruals, purchase of services, payment of debts, gratuitous transfers, social security, and other costs.
As for the first paragraph, in its structure, in turn, there are additional articles: salary, other payments, accruals.
Regarding the acquisition of services - this subcategory of costs involves communication, transport, utilities, rent, maintenance services, and other services.
With regard to the payment of debts, it is assumed that the calculations are as follows: internal obligations, external debts.
Another subcategory of costs is gratuitous transfers. Those can be sent in favor of budgetary institutions, as well as other legal entities that are not related to state or municipal organizations.
Gratuitous transfers of funds can also be sent in favor of budgets - those that operate in the Russian Federation, in foreign countries, as well as those that are accepted at the level of international organizations.
Non-financial asset income
Another group of costs to which the Russian classification of budget expenditures is presented is revenue non-financial assets. Its structure contains subcategories suggesting an increase in the value of fixed assets, intangible assets, and inventories. Consider the specifics of each item in more detail.
As for such a subcategory of costs, as an increase in the value of fixed assets, it is assumed that capital is spent in connection with the need to pay various contracts for the organization: for the purchase of facilities, for contracting related to the construction, repair, re-equipment, modernization of assets that form fixed assets.The objects here may be: buildings (residential and non-residential), structures, apartments, cars, various mechanisms, equipment and tools, production equipment, household tools, library funds, medical equipment, jewelry, exhibits, furniture, stages and stage equipment, weapons and other military equipment. The structure of the relevant costs may also include costs associated with the acquisition of the necessary machines and materials that are used in the work of the contractor.
Regarding the cost of intangible assets, the costs associated with the payment of purchase contracts or the creation of the corresponding type of objects are assumed here. At the same time, resources must have documents that confirm that the organization has exclusive rights to use them. Such sources may be copyright agreements, patents, certificates, licenses.
The costs of the organization can also be directed towards increasing indicators of the value of inventories. This category of costs involves the direction of the organization’s funds for the purchase of raw materials or materials that are intended for one-time use over a period of 12 months. The corresponding type of costs can also be established in relation to items whose involvement is carried out by the organization for more than 12 months, but not classified as fixed assets. Examples of resources acquired by the company can be: medicines, upholstered furniture, dishes, food, gasoline, engine oil, various types of fuel, building materials, stationery, seeds, books and other printed materials, spare parts, etc.
Receipt of financial assets
The next group of costs to which the classification of budget expenditures can be represented is revenue financial assets. Its structure may contain subcategories suggesting spending money to increase the value of securities and loan debt.
Regarding the first item of expenses, this includes the costs associated with paying for the work, the implementation of which involves the implementation of targeted investment initiatives - federal, regional or municipal.
Regarding the increase in debt on loans - this includes expenses associated with the issuance of budget loans, as well as the provision of financial funds in debt to individuals and organizations. The subjects of legal relations in this case may also be foreign firms and governments of other states. The subject of loan agreements may be the performance of various guarantees.
Disposal of financial assets
The classification of budget expenditures also includes such a group of costs as the disposal of financial assets. In its structure there are subcategories suggesting the allocation of funds to reduce the value of securities that are not related to stocks, debts on budget loans.
Regarding the first - here we are referring to the receipt of funds associated with the debt requirements of the Russian Federation to foreign partners. The decrease in debt on loans under this article involves the repayment of loans from budget funds, proceeds from individuals, legal entities or foreign partners.
Specificity of legislative regulation of economic classification
The classification of budget expenditures can be fixed at the legislative level. In the Russian Federation, special sources of law have been adopted, which contain relevant provisions. The Budget Code of the Russian Federation has the highest legal force. It can be supplemented by laws or by-laws. Many key provisions with which the types of classification of budget expenditures considered by us are correlated are contained, for example, in Order No. 65n of the Ministry of Finance of the Russian Federation dated 1.07.2013.
Depending on the purposes for which the methodology of assigning costs to a particular category is involved, other criteria may be used. Departmental classification of budget expenditures adopted by a specific executive authority of the Russian Federation may be applied. But in the general case, experts recommend adhering to the provisions of the Budget Code and legal acts issued by relevant ministries.
Budget revenues
Having considered how the classification of budget expenditures is carried out, we also examine the specifics of state revenues. Now they are divided into 2 main groups: tax revenues or non-related fees, as well as gratuitous revenues. Let us examine in more detail the essence of each.
Tax income
The classification of federal budget expenditures, which we studied above, involves the division of the main cost groups into a large number of subcategories. The same pattern is also characteristic of state revenues.
So as for the group including tax revenues then in its structure there is a large number of subcategories. Among those:
- taxes proper (for profits, goods, work, services, property);
- insurance contributions to state funds;
- duties;
- debt
- proceeds from foreign economic activity, from the use of state and municipal property;
- payments related to the use of natural resources;
- fines, sanctions;
- non-tax revenues;
- intergovernmental transfers.
Gratuitous income
Another major group of budget revenues is gratuitous revenues. Their varieties are provided for quite a lot. In this sense, all the patterns we have noted that characterize the classification of budget revenues and expenditures are also observed.
The structure of gratuitous receipts may include transfers: from non-residents, from budgets, from state or municipal structures, from non-governmental organizations, from supranational institutions. It is also customary to single out other gratuitous receipts into a separate subcategory that are not classified as belonging to one of those that we mentioned above. Gratuitous revenues include budget revenues arising from the return of the balance of subsidies, subventions and other targeted transactions by one or another entity.
Codes
The Russian budget system has adopted various classification codes - expenses or budget revenues. Consider their specifics.
The classification code of the budget expenditures of the Russian Federation is a sequence of 20 digits. This structure is used at all levels of the state capital management system - federal, regional and local. So, the numbers 1 to 2 indicate the main manager of financial resources. Codes 4 to 5 fix a specific cost section, from 6 to 7 - a subsection, 8-17 - a target item, 18-20 - a specific type of cost.
Revenue Classification Codes
Having examined the way in which codes are used to classify the expenditures of the budgets of the Russian Federation, we consider the features of applying the corresponding methodology in relation to income.
It is worth paying attention to the fact that in this case, the codes, first of all, classify budget revenue by purpose of funds. So, code 01 corresponds to the federal budget of the Russian Federation, 02 to the financial system of a constituent entity of the Russian Federation, 03 to a municipal entity within a city of federal significance, 04 to a city district, 05 to a municipal district, 06 to PFR, 07 to FSS, 08 to FFOMS, 09 to territorial health insurance fund, 10 - rural settlement, 11 - urban district with internal division, 12 - intracity district, 13 - urban settlement.
The code that classifies budget revenues includes an indicator that correlates with the authority of the authorities related to the establishment and administration of taxes and other revenue items of the public capital management system. If we are talking about revenue classified as non-tax, then, for example, codes 01 and 02 in this case can be assigned in correlation with the authority to fix the amount of payments by federal structures or authorities at the level of constituent entities of the Russian Federation.
As for the non-tax revenue for classification codes 03, 04, 05, 10, 11, 12, 13, then in this case the legislation requires the following criteria to be followed.
As for mandatory payments (for example, penalties), these codes are used in correlation with the authority to fix the amount of payments, respectively: municipal bodies of intercity municipalities in cities of federal significance, government structures of urban districts, local authorities in settlements of the corresponding type with intra-city division, municipal bodies of internal districts of cities, local governments of districts, municipal structures of rural settlements, bodies of self-government I'm an urban settlement.
Code of the main administrator of budget revenues
The legislation, which records the classification of revenues and expenses of the budget of the Russian Federation, contains provisions that reflect the specifics of using the code for the chief administrator of budget revenue. Let's consider this aspect in more detail.
The code in question is fixed in the law approving a particular budget level. The determination of the relevant values is based on the authority of a particular agency. An administrator is designated as the authority whose authority is in the best way correlated with the nature of the fee. For example, when it comes to payments to the FIU, the Pension Fund is actually appointed by the relevant institution.
In some cases, it is possible to delegate the authority of federal authorities in favor of regional structures regarding the implementation of the corresponding function of administering taxes and fees. In turn, departments working in the constituent entities of the Russian Federation may cede part of their powers to municipal organizations.
In the first case, if the federal budget revenues begin to be administered by the regional department, then the coordinates of the chief administrator, that is, the authority operating at the level of the political center, should be specified in the classification codes for budget revenues. The same pattern has been established with regard to interactions between constituent entities of the Russian Federation and municipalities. Similarly. if the authority related to the administration of budget revenues is transferred by the municipal administration to the district level, the codes must contain the coordinates of the local authority.
Functional cost classification
Classification of public expenditures Russian budget can be carried out according to functional principles. Let's consider this aspect in more detail.
The functional classification of budget expenditures assumes that the corresponding costs will be grouped at all levels, and at the same time be fixed on the basis of the direction of financing (which, in turn, is determined based on the specifics of the work of a particular authority or actual tasks related to socio-political development).
The considered approach is in some cases involved in the study of international experience regarding the interaction of state and municipal structures.
Functional classification of budget expenditures can be implemented within the framework of different methodologies. In Russia, the prevailing one is that it assumes the distribution of indicators by 4 levels.
The first level, within which the functional classification of expenditures of the budgets of the Russian Federation is carried out, is sections. It reflects the direction of capital, based on certain areas of activity of the state.
The second level is subsections. They specify the focus of financial resources, based on certain areas of activity of the state. At the same time, the relevant articles should not go beyond those groups that record sections of the classification of budget expenditures.
The third level is the allocation of target points characterizing the focus of financial resources. The correlation is fixed here budget allocation to specific aspects of the activities of public authorities.
The fourth level, which involves a common structure of classification of budget expenditures of the Russian Federation, is specific types of costs.
It can be noted that the scheme considered by us is one of the possible. If we talk about the legislative level of fixing the relevant criteria, the schemes recommended for use at the level of various departments can change quite significantly as the provisions of the sources of law are adjusted.
Thus, the budget classification of revenues and expenditures of the budget of the Russian Federation, approved, for example, in the Order of the Ministry of Finance of the Russian Federation No. 114n of December 10, 2004, has long been considered the most optimal in the practice of the departments responsible for the implementation of plans for the allocation of state capital. Now the corresponding source of law has lost its legal force - it has been replaced by a new Order of the Ministry of Finance of the Russian Federation No. 65n of 1.07.2013.
The provisions on the basis of which the budget classification of revenues and expenditures of the Russian budget can be carried out in the new document in certain aspects is similar to the wording that is present in the previous source of law, but is based on different approaches to working with certain items of revenue and costs of the state management system capitals.
Changes in the legislation governing the principles of classification of budget expenditures and revenues can be dictated by various reasons. These may be intermediate results of reforms in the field of taxes and fees. This may be the influence of foreign economic and political factors. This may be the recommendations of experts and scientists regarding the improvement of the budget system of Russia.
Is functional classification relevant?
Is it possible to say that the functional classification considered by us is relevant today? On the one hand, in the current provisions of the sources of law governing the budget policy of the Russian state, there is no direct prohibition on the use of the term “functional classification” in the practice of departments or, for example, in the preparation of training programs. On the other hand, in the main source of law governing budgetary relations - the BC RF, at the moment the corresponding concept is not disclosed. While in one of the editions of Article 21 of the Code, the term “functional classification” was present.
Similarly, the concept under consideration included Federal Law No. 115 of June 15, 1996, in which the legislator adopted key provisions of the budget policy of the Russian Federation. But subsequently, the active use of the term “functional classification” was probably decided to refuse. At the same time, this concept, as many researchers believe, is rightly attributed to the most universal. Classifying according to functional features, in principle, can be a large number of phenomena, including those related to state budget policy.
