Government spending: types. Government spending, their economic and social significance

Government spending is a type of activity that is regulated by legal norms and is aimed at spending budget funds to ensure the livelihoods of the country's population, the development of production, the defense of the state, and the satisfaction of social, economic and cultural needs.

Highlights

Government spending depends on government objectives for the current fiscal year. They are carried out from different funds. From centralized, which includes budgets of all levels, as well as from the state extra-budgetary fund and decentralized, which include funds of state enterprises and organizations. A prerequisite is the use of such methods as loans and loans.

Types of expenses budget:

• economic;
• military;
• social;
• covering foreign policy activities;
• going to the content of the management apparatus.

Sometimes unplanned ones are added to the main expenses.

State and municipal expenses - this is a gratuitous and irrevocable allocation of funds for the functioning and development of enterprises or institutions to perform their functions. This means that these costs are not returned to the treasury, and it is filled at the expense of other means.

Types of budget expenditures: budget loan

Any legislation implies several other options for government spending. Budget loan - This is an opportunity to allocate funds from the treasury with subsequent return and retribution.

This type of expense does not apply to state and municipal institutions, only to legal entities and foreign powers. A prerequisite is a refund with a predetermined percentage.

Sources of government spending

Today, the basis for financing municipal waste is primarily investments, long-term investments, as well as state budget funds. Sources of government spending are funds of ministries, departments, extra-budgetary assets, financial resources enterprises and organizations. All these funds can be endowed with a paid or gratuitous basis.

Principles of financing public spending

1. Planning. In accordance with this principle, public spending should be consistent with municipal plans and programs.
2. Irrevocability and gratuitousness of allocated funds. Only those cases that are established by applicable law are excluded.
3. Control. Public spending policies should be transparent. The use of funds is monitored and offenses entail liability.

Legal modes of financing

The first is financing of state-owned commercial enterprises. In this case, the property is secured by economic ownership. The second financing regime includes the provision of cash to municipal enterprises, which are non-profit. The rights to the operational management of property apply here.

State-owned single enterprises, which are based on the right of economic management, must cover any production and non-production expenses from the income of the organization. If this is not possible, then management uses bank loans.

Government spending

In order for the country to develop, function in all sectors, certain rules are established at the legislative level. The rate of expenditure is a single measure of waste for homogeneous enterprises. They are divided into mandatory and optional. The first include: wage rate, travel, vacation pay. To optional - expenses for the maintenance of work facilities, including heating and lighting.

Norms of expenditures can also be material and monetary. The former include in-kind funds per unit of embezzlement, for example, the volume of products per one prisoner in prison.

Types of government spending also include individual and combined. For example, feeding in a hospital and serving one patient is one goal, respectively, the rate of expenditure is individual. Combined is manifested if there are several such costs. For example, full medical care for a patient per day.

Budget expenditures

Of course, that state funds are closely monitored. Enterprises and organizations cannot squander on personal needs, such as new furniture in an office or vacation at sea at the expense of the organization.

The state budget covers such expenses of institutions:

• remuneration in accordance with labor contracts (this includes employees of state bodies or, as they are commonly called, state employees);
• travel, vacation and sick leave, which are also prescribed in the employment contract;
• payment for the supply of goods;
• payment of taxes and other fees to the budget system of the country;
• compensation for harm, if received at the workplace or in the performance of their duties.

The economy of public spending is built on the functioning of organizations and the maintenance of the life of society.

All costs of institutions are necessarily limited. The waste of state funds for other needs is not allowed. In case of failure to comply with these conditions, violators are punished to the fullest extent of the law.

Public government spending

This term refers to the use of monetary resources in order to provide certain segments of the population with necessary goods.

There are three main groups of public government spending. The first is the financing or production of a wide range of goods (for example, a defense order). The second group is sent to meet the needs of those members of society who cannot provide for themselves (orphans, disabled people, pensioners). The third group is social insurance expenses (in case of illness, emergency, unemployment benefits are also included here).

Ways of financing

State budget expenditures include several financing methods.

1. Purchase of goods and services from private enterprises.
2. Subsidizing organizations included in the state support program.
3. Financing waste of municipal enterprises.
4. Payments to individuals covered by special programs.
5. Compulsory social insurance.

These forms of financing often act as complementary or interchangeable. For example, in a program helping people with disabilities includes expenses for the maintenance of houses where people with disabilities live, for the provision of medicines, the purchase of special equipment. This also includes staff salaries.

Or another example, when in connection with natural monopoly in the market, the company produces a socially significant product. The state forces to set a low price, and therefore the losses incurred by the enterprise are covered from the country's budget. But in this case, there are also two methods of action: compensation for the loss or nationalization of the whole industry.It should be noted that in most countries, monopolistic enterprises belong to the state. And all their costs are covered by taxpayers.

Social support

Another important area of ​​public spending is social support. It makes it possible to redistribute state budget expenditures to various groups of the population. It is important to understand the difference between a situation when a person needs help and receives it at the expense of other individuals (taxation) and the case when he uses the payment from a special fund accumulated by himself (social insurance).

In order to increase the efficiency of functioning of social protection mechanisms of a society, it is necessary to determine the scale of distribution. This is done as follows:

1. Those individuals who are not able to contribute to the formation of insurance funds should be provided with social assistance within the framework of guarantees established by the state.
2. The rest of the population should be covered by compulsory insurance, but also within the established guarantees, which are dictated by fairness and effectiveness.
3. The state should follow policies that complement voluntary-private compulsory public insurance.

Thanks to the state budget, an economically developed country has the opportunity to use its financial resources in areas of social development. The government apparatus annually makes decisions related to the treasury, amendments and changes are made to the current legislation to ensure decent living for residents in this territory. With the help of the budget, there is also a distribution of national income between the spheres of social activity.

State budget revenues

State revenues and expenses are formed due to the economic activities of organizations, individuals or legal entities. To a greater extent, the treasury is replenished with taxes paid by both central and local authorities. Less money comes from external economic factors, as well as from revenues of state institutions. A small percentage is the proceeds from the trust funds of the estimate.

The state budget of the Russian Federation is replenished to a greater extent through taxes - only 84%, while income from trust funds is about 10%.

In general, the state budget is a plan of income and expenditures of the country for the current year, which is drawn up in the form of a balance sheet and has a legislative background. Each country has its own system.

In modern economic conditions, due to the pursuit of an active state policy, a significant increase in spending is taking place. This growth was predicted by the famous German economist Adolf Wagner. He was the first to formulate the so-called law on increasing state activity. Its essence was that spending in developing countries is growing faster than national income.