The principles of the budget process are the consideration, preparation, approval and further implementation of any type of state budget. They are carried out in accordance with rigidly established rules due to their importance in the form of an economic instrument. The basic principles of the budget process include several stages, which can be listed in order as follows:
- Compilation.
- Consideration.
- Statement.
- Execution.
What it is?
The budget process itself, in accordance with the laws, is regulated by the norms of law by the activities of various state bodies, as well as participants in the drafting and consideration of projects, approval, execution, as well as control over the execution of budgets of various state extra-budgetary funds.
The main principles of the budget process consider regulation to be its main component, which is a partial redistribution of finances between budgets of various levels. The duration of this procedure is three and a half years, which is usually called the budget period.
Members
The participants in the budget process are:
- head of state;
- various bodies of monetary regulation, executive and legislative authorities, as well as local and state financial control;
- the main managers of budget funds;
- extrabudgetary funds owned by the state.
It is worth noting that the concept is quite important for such a process. fiscal year which may coincide with the calendar, but in a fairly large number of countries, it was shifted to March 1 or even April 1.
Main steps
The concept and principles of the budget process are considered as the initial stage of this procedure, drafting, in the process of which issues such as monetary and tax policies for the next year, the planned budget, the main technologies and directions for covering the deficit, as well as further redistribution of expenses between all parts of the system.
Next comes a review that begins six months before the legislative approval begins. The concept and principles of the budget process provide for the involvement in the consideration of the government, credit and banking and financial authorities, as well as local authorities. Ultimately, the authorized legislative body reviews the budget in several readings, as a result of which all disputed issues are agreed. In this case, the interests of all levels of government regarding expenses and income are coordinated. When the budget is adopted by law, it becomes a national law.
After that, budget execution comes into force - a complex procedure in which a large number of structures, departments and organizations take part. After the end of the revenue collection, the second stage starts - the implementation of the necessary expenses. Since the state budget itself has no expenses, and it deals only with the distribution of finances between several organizations, it is important to ensure the correct distribution of its funds.
The principles of the budget process in the Russian Federation provide, during consideration, for an exact indication of who owes and how much money is due, for which a list is being drawn up. With the help of this painting, recipients and managers of public funds will be determined in the future.
Treasury execution
Various budget processes are organized by a specialized financial state institution - the Treasury, whose accounts contain all available budget funds. The existence of this institution is objectively determined by the fact that there is a need to observe the principle of unity of the place of storage, collection and further payment of funds.
Regardless of the stage, the principles of the budget process provide for several main tasks of this institution:
- keeping records of payments and taxes;
- income distribution between different levels of budgets;
- accounting for deferrals and benefits provided by tax payers;
- mutual settlements between budgets;
- ensuring efficient and targeted spending of funds;
- management of expenses and revenues of the state budget, which is stored in the accounts.
The budget process and its features
The concept, principles and stages of the budget process - all this is considered from an economic and legal point of view.
From an economic point of view, this is a process in which income / expenses and the achievement of their balance are indicated, as well as the mobilization of income and the implementation of necessary expenses.
The principle of independence of the budget process from a legal point of view provides for the definition of this concept as the preparation, consideration, as well as approval and subsequent execution of a budget of a certain level.
In the course of its implementation, the determination of any possible income that is levied in the form of all kinds of tax or non-tax payments is provided. At this stage, it is important to determine how these or those taxes affect the activities of certain business entities, as well as how effective they are in terms of ensuring the receipt of finances in the budget.
The basic principle of the budget process provides for the mandatory development of the main directions of economic policy in the preparation process. An assessment of the amount of required budget expenditures is inextricable with an assessment of necessary expenditures, since their recognition in any case entails a procedure for finding additional sources of finance.
Members
Modern legislation establishes all the basic concepts and principles. The participants in the budget process are by law the following:
- The president.
- The State Duma.
- Council of the Federation.
- Government.
- Ministry of Taxes
- Accounts Chamber.
- Ministry of Finance.
- Central bank.
- The main managers and managers of the budget.
- State extrabudgetary funds.
Design
The principles of building the budget process provide for the direct development of draft federal budgets by the Ministry of Finance, which has the following powers:
- drafting with subsequent submission to the government;
- taking part in the development of various draft budgets for extrabudgetary state funds;
- representation of the state side in the process of negotiations on the provision of various loans from the federal budget, which is carried out after the relevant instructions from the government;
- compilation of a summary budget mural federal budget;
- development of an accurate forecast of the consolidated budget;
- development of a program of internal and external government borrowing, which is carried out on behalf of the government;
- cooperation with various financial international organizations;
- audits of finances of recipients of funds from the budget, including also recipients of loans, loans and guarantees;
- maintaining state registers of external and internal debt;
- state debt management;
- drawing up a report on the implementation of the established consolidated budget;
- maintaining a consolidated register of the main managers and recipients of funds from the budget, as well as the registration of various budget organizations whose work is directly financed by budget funds.
The basic principles of building the budget process provide for special powers of the Minister of Finance related to ensuring the budget execution procedure. In particular, he is engaged in the approval of the consolidated list and limits of obligations for the main managers, provides loans, and also has the right to redistribute the allocation between the main distributors and the articles of economic and functional classification within 10% of the approved amount. Among other things, it is worth noting that he has the right to reduce budget expenditures by no more than 5% of the total number of approved revenues.
It should be noted that also the basic principle of the budget process is its distribution into four main stages.
Project creation
At the stage of compiling the project, first of all, plans and further forecasts for the development of the territory and various target programs, municipalities and economic sectors are developed, as well as the preparation of consolidated balances, based on which, authorized executive bodies will be able to develop budget projects.
It is worth noting that this stage is the exclusive prerogative of the government, local authorities and the executive branch. The Ministry of Finance, as well as various financial services of the constituent entities of the Russian Federation, are directly involved in the preparation of the projects, and the procedure itself is carried out no later than 10 months before the next financial year begins.
The government is organizing phased work related to the design of the federal budget. Within the specified time period, forecasts of social and economic development are carried out, the main directions of the future budget policy are determined, the balance sheet of economic resources is determined, and control figures for the established project for the specified period and other documents are calculated. Territorial executive bodies are engaged in a detailed study and subsequent coordination of development indicators in the social and economic spheres, as well as clarification of all control figures.
This stage ends with the fact that no later than August 26 of this year, the government should consider the draft future budget, as well as all related materials and documents that were submitted by the Ministry of Finance and other federal executive bodies. It is also involved in approving the draft budget law for its further submission to the Duma.
Review and approval
Along with the draft federal law, the Government also introduces various draft federal laws into the State Duma. After the corresponding draft has been accepted for consideration by the Duma, it should be sent to the Council of the Federation, the committees of the Duma, as well as other subjects of law legislative initiatives that necessary suggestions and comments be made, as well as to the Accounts Chamber for making an opinion.
Execution
To date, the treasury execution of the designed budgets is being established. The various executive bodies are obliged to comply with the principles of organizing the budget process and their implementation, as well as managing accounts and all available means. The indicated bodies are a kind of cashiers for all recipients and managers of funds, and also make payments at their expense on behalf of and on behalf of the relevant institutions. Budget execution ends on December 31.
Last stages
The preparation of the report is the fourth stage of the budget process.
At the end of any financial year, the Minister of Finance orders that this year be closed and a report is prepared on the execution of the planned federal budget in general, and in addition to this, on all individual extra-budgetary funds. Based on this order, each recipient prepares a detailed annual report on their expenses and income, and the main managers are involved in the consolidation and synthesis of reports of those institutions that are in their department.
The current Budget Code stipulates that every year no later than June 1, the Government must submit to the Accounts Chamber and the State Duma a report on how the implementation of the established federal budget for a given financial year is carried out, presenting it in the form of a law. Further, the Accounts Chamber is engaged in the verification of this report, and ultimately draws up a conclusion that goes to the Duma. She is already engaged in the consideration of the report submitted by the Government within a month and a half after delivery of her opinion from the Accounts Chamber. In the process of performing this procedure, reports on execution are carried out by the heads of the Federal Treasury, as well as directly from the Minister of Finance. The report of the Prosecutor General on the extent to which current legislation is being followed, and the opinion presented by the chairman of the Accounts Chamber are also heard.
Based on the results of the review of the conclusion and report of the Accounts Chamber, the Duma should decide on the approval or rejection of the submitted report. Among other things, at each separate stage of the budget process, municipal financial control by the relevant authorities should be ensured.
