Inter-budget transfers: concept, types of inter-budget transfers, purpose, forms, terms of provision

Within any country there are more and less developed territories. To ensure uniformity, various types of intergovernmental transfers are used. Management in modern states is usually carried out at different levels. There is not only an apparatus of the central government, but also local authorities. In federal states there is also a third intermediate level of government, which exercises its powers within a single state, province, canton or other entity. Such a system helps to provide effective compensation for the unequal development of regions. The following questions will be considered in the article: concept, forms, types of inter-budget transfers, their significance and ways of regulating their distribution.

The concept and its economic meaning

Inter-budget transfers are one of the tools for redistributing funds between regions of the country. Their main function is to ensure uniform development of various territories within a single state. The budget is a centralized fund that contains all of the country's monetary resources. Not only the present, but also the future of the state depends on their effective use. However, it is important not only where to invest these funds, but also where exactly to do it.

Functions

Different types of intergovernmental transfers are used to achieve the following goals:

• Elimination of horizontal imbalances between regions. Thus, various types of inter-budget transfers to local budgets can eliminate the social tensions associated with economic downturns.
• Reimbursement of budgets of less developed regions of funds spent on tasks of national importance. Thus, they do not allow imbalances to increase during the implementation of large-scale projects.
• Elimination of deficiencies in the tax collection system.

Transfer Forms

The 16th chapter of the Budget Code of the Russian Federation explains the procedure for the redistribution of funds between regions. Article 6 defines the concept. The following types of intergovernmental transfers in Russia are distinguished:

1. Grants aimed at equalizing the security of funds of the constituent entities of the Russian Federation.
2. Subsidies to federal budgets.
3. Other inter-budget transfers, the types and purposes of which are discussed in chapter 16.
4. Subventions to the subjects of the Russian Federation.
5. Transfers directed to extrabudgetary funds.

Subsidies

Inter-budget transfers, the concept and types of which are defined in Chapter 16, differ not only in their direction, but also in the order of return. The most beneficial form is subsidies. They are given to the regions free of charge. However, their purpose is not predetermined. Grants received by the subject can be used at his discretion. These funds are allocated from a special Federal Fund for Financial Support. It is formed on the basis of the minimum level of security by means of the regions of the Russian Federation. The exact amount of subsidies allocated to each entity is approved for each financial year. Due to these funds, the state reduces imbalances in the development of various regions of the Russian Federation.

Subsidies

Considering inter-budget transfers, the types and purpose of which are prescribed in the legislation, it is important to pay attention to tools that help to eliminate the negative consequences of the implementation of joint projects that are important for the whole country. Subsidies are needed to offset the costs of local funds. The purpose and objectives of their provision are established by the legislation of the Russian Federation and its subjects. For example, subsidies may be provided for the development of the social or innovative infrastructure of the country's science cities.They can be allocated both from the Co-financing Fund and from the reserve funds of the President and the Government of the Russian Federation. Subsidies, as well as subsidies, are given to regions free of charge. They cover part of the costs for which they are allocated, the remaining funds are taken from the local budget.

Subventions

This tool to ensure uniform development of the regions is used to reimburse the costs associated with the implementation by municipalities of the powers of the central apparatus. Subventions are allocated from the special Federal Compensation Fund. Funds from it are distributed in accordance with the requirements of regulatory legal acts. They, like the two previous types, are provided free of charge. However, a feature of subventions, as well as subsidies, is their targeted nature. These two categories differ only in terms of funding. Subventions fully cover targeted expenditures, and subsidies only a part of them.

As for intergovernmental loans, they are fully consistent with the usual. They are provided on a refundable and reimbursable basis. subject of federation for a predetermined period.

Types of other inter-budget transfers

Separately, the legislation provides another group of funds. They are called other inter-budget transfers. This group appeared only in the new code; before that, the legislation of the Russian Federation did not provide for such a form of reallocation of funds. They are also irrevocable and free of charge. This group, for example, includes transfers to closed administrative-territorial territories.

From local budgets

Transfers can be distributed not only through the central government. Individual subjects of the Russian Federation can also provide them to each other. Forms of transfers are similar to those that may be provided from the federal budget. Among them are:

• Grants for equalizing the monetary security of various settlements and municipal areas.
• Central office subsidies to local budgets.
• Subventions to autonomous okrugs and other constituent entities of the Russian Federation, to the federal budget.
• Other transfers.

Role in the regional budget

The main purpose of the existence of government bodies is to ensure the integrated development of the state. All types of inter-budget transfers to municipalities, as well as other entities, are necessary precisely for this task. Today, in many countries, decentralization of governance. It is believed that local governments better know where to invest in order to achieve maximum effect. Therefore, the possibilities of the constituent entities of the Russian Federation are expanding more and more, including through transfers. Russia is characterized by subsidization of most regions. This state of affairs causes discontent among donor entities, because transfers over the past ten years have not improved the situation. The solution to the problem lies in the development of natural resources that are available in many subsidized regions, their use would guarantee the dynamic development of the economy, if not in the short, then in the medium term.

Regulatory framework

The process of improving the sphere of intergovernmental relations in Russia began with the collapse of the USSR. Over time, this issue has become increasingly relevant. The legislation of the Russian Federation defines the concept, types and significance of inter-budget transfers. The basic conditions for their presentation are described.

All types of transfers are discussed in detail in Chapter 16 of the Budget Code of the Russian Federation. They are also described in decrees and orders of the Government.

General terms and conditions

The legislation of the Russian Federation determines the manner in which intergovernmental transfers are allocated. The types and conditions for the provision of each of them are also described in the Code. Let us first consider the restrictions put forward by the legislator to transfers from the federal budget. Among them:

1. An entity cannot take on new expenditure obligations if 20% of its budget falls on transfers.
2. Upon receipt of additional funds, the region undertakes to more closely monitor financial discipline.
3. The Accounts Chamber of the Russian Federation, like the Federal Service for Budget Supervision, can at any time carry out an external audit of the entity that received the transfers.

Somewhat different is the procedure for obtaining funds from individual entities with a higher level of development. Among the main conditions:

1. Transfers from the budgets of the constituent entities of the federation are provided only if the local authorities comply with the legislation of the Russian Federation.
2. Lack of arrears with a potential recipient.
3. The legislation of the constituent entities of the Russian Federation may establish additional conditions for the receipt and provision of transfers.

Directions for improvement

Every year in Russia there is an expansion in the number of forms of support for the regions. Narrow-targeted types of inter-budget transfers of the Russian Federation are becoming more common. The latter may adversely affect the strengthening of the financial independence of individual entities. Therefore, it is rational to introduce block transfers. Thus, the modernization of the entire industry in the region as a whole could be carried out. In this case, the federal authorities establish a formula for the distribution of funds and the conditions for their spending, and local - the proportion of use for the needs of each of the areas. The methodology for calculating the volume of transfers is also important.

One of the areas for improvement could be the use of the index of well-being of the population. Moreover, the distribution of subsidies should be focused solely on equalizing the security of funds in the regions. Tasks like stimulating the expansion of the tax base of constituent entities of the Russian Federation and improving financial discipline are best solved using other tools. Only in this case, transfers can effectively fulfill their main function. In Russia, the creation of sound principles for the distribution of funds is necessary. This is the only way to ensure the stability of the state economy. So far, the system of distribution of budget transfers in Russia has been inefficient, so the question of improving it is urgent.

findings

Different areas within the same country always develop unevenly. There are reasons for this - both historical in nature and climatic. Therefore, one of the main tasks of central authorities is to relieve tension between individual regions through the redistribution of funds. The following main types of intergovernmental transfers are distinguished in the Russian Federation: subsidies, subsidies and subventions. All of them are non-refundable. A distinctive feature of the subsidies is that they do not have a special purpose.

Subsidies and subventions are allocated for specific tasks set by the federal government. The last two categories differ in that the former cover only part of the expenditures of local budgets, and the latter - all in full. Considerable attention to the concept of transfers, their types, forms and conditions of provision is given in the Budget Code of the Russian Federation, as well as in decrees and orders of the Government. In general, the system of equalization of income in the country is not effective. Among the areas of its improvement can be identified:

• The use of block transfers.
• Using the welfare index in determining the transfers needed for a region.
• The desire to align the level of budgetary provision of the regions.
• The creation of sound principles for the distribution of funds between various subjects of the federation in order to ensure greater economic stability.