Each state, with a view to the effective functioning of the production economy and the social system, legislates the principles of the country's budget system. For a rational and sufficient distribution of budgetary resources. Since the definition of budget opportunities is laid at the stage of its discussion and approval, the principles of building a budget system play a great role for the correct assessment of the financial indicators of the next year and the efficient spending of financial resources in the process of budget implementation.
The concept of budget and the functioning of the budget device
Each country forms a specific plan for spending financial resources and income for a certain period. This plan is the budget. The procedure for working with the budget is multi-stage. An assessment is made of all current and possible factors affecting the socio-economic sphere, and depending on the proposed changes, as well as in order to maintain priority directions for the development of the state, a budget document is signed.
The budget device implies the fundamental rules (principles) of budget organization, in accordance with which there is interaction between the subjects of the budget process, the formation and expenditure of financial resources from the budget is carried out.
The principles of organization of the budget system contain the essential provisions of how this system should function. Several of these principles are distinguished; they together make it possible to talk about the effectiveness of the entire country's financial system.
Regulation on the unity of the budget system
The basis of this provision is the uniformity of legislation in the field of budgetary activity, the work of the budgetary system, the generality of documentation and reporting forms, responsibility for violation of the rules. All of the above can be reduced to several theses, built on a single (s):
- legal basis;
- organization of the country's monetary system;
- the content of budget processes;
- responsibility for non-compliance and violations in the implementation of legislation in the field of budgeting.
The principle of separation of income and expenses
The principles of the budget system cannot but reflect the revenue and expenditure structure, therefore this provision reflects the fact that each level of government - federal bodies, constituent entities of the Federation and local self-government - has legislatively fixed types of revenues and expenses that the budget of each level will operate on.
Since in this case we are referring not only to expenses, but also to income, this means that this principle will be implemented through a number of economic systems, for example, through a fiscal (tax) system.
Budget independence
Building a public administration system involves dividing the government into levels, each of which will have a certain independence in deciding on the budget process. In this case, the principles of the budget system of the Russian Federation take into account the rights and obligations of federal authorities and the local level.
This means that authorities must independently ensure a balanced budget and the effectiveness of its use. They are entitled to independently organize the budget process.It is also understood that each level of government, in accordance with the law, has the right to establish taxes and fees that will go to the budget of a certain level. It is unacceptable to independently introduce actions on taxes and fees and other payments that may in the current financial period affect the previously approved budget with a change in its condition for the worse.
Completeness of reflection of all constituent items of the budget
The principles of the functioning of the budget system are inseparable from the essence of the formation of the state budget, therefore, in these principles, expenditures and revenues to the budget also occupy a significant place. This provision deals with the fact that all sources of income and budget financing with a deficit balance, as well as the direction of expenditures, must be reflected in the budgets of the corresponding levels.
Budget balance
This principle of observing the balance of budgetary funds is based on the rule of equal expenditures for income and receipts to finance the deficit. That is, the formation of the planned budget should be thought out and focused on the assumption of the least amount of deficit of financial resources.
This is an extremely important principle for creating a balanced budget. For its formation, it is necessary to conduct a thorough analysis of the structure of budget spending in the current financial year, take into account trends in the economy, and lay down potential risks. However, quite often a budget deficit takes place, and in this case, the reasons can be both in overvalued income items and in underestimated expenses.
Regulation on the effectiveness of the use of budget funds
Considering the principles of the functioning of the budget system, it should be noted that they are aimed at creating a stable system with the ability to continuously improve the efficiency of its functioning. This provision refers to the fact that it is necessary to create not only the maximum possible revenue parts of the budget, but also to distribute and direct budget allocations with the maximum rational effect.
It should be noted that the concept of effective distribution and development of budgetary resources includes not only their direction in the production sphere, but this principle is also suitable for the social sphere. Funds should be allocated in such an amount that would cover the main problem areas, while improving the quality of life of the population.
The rule of general cost budget coverage
This principle is based on the fact that there is no binding of items of expenditure to certain incomes. That is, there is a general flow of funds that go to the declared areas of application. But there are exceptions to this rule, which affects:
- target funds of foreign borrowing;
- voluntary contributions of the population;
- expenditures that have been designated in accordance with international treaties;
- certain non-tax revenues;
- subsidies received from other budgetary sources of the system.
The principle of publicity or openness
Transparency of the state system is fundamental, therefore, all the principles of the budget system also boil down to the fact that information on budget processes should be open and published in the media. The following data are related to disclosure:
- Approved budgets and reports on their implementation.
- Draft budgets.
- Issues of disagreement, regardless of which particular structures of power appear in the discussion.
- It should be noted that in general budget law presupposes the existence of secret expenditure items, but they can only be approved at the federal budget level. Such articles do not fall under this principle.
Equality of budgetary rights of constituent entities of the Russian Federation and municipalities
This provision operates on the basis that the authorized state authority for working with the budget, regardless of level (federal or local government level), bases its activities solely on those rules and principles that are spelled out in the Budget Code of the Russian Federation. All principles of the budget system of the Russian Federation are based on a set of rules set forth in this code.
There are also a number of new principles that were introduced not so long ago. Among them:
- reliability of expenses indicated in the budget;
- targeting and targeting of budget funds;
- single cash desk;
- jurisdiction of budget expenditures.
Conclusion
The organization of budget processes in our country is necessarily based on what principles of building the budget system of the Russian Federation are approved and spelled out in the corresponding code. Thanks to these rules, all financial processes associated with budgeting have a clearly structured system of subordination and consistency. This is a very important aspect for the development of economic and social spheres, because thanks to the rules by which all economic entities act, it is possible to more fully and with less risk to predict the development of a process.
But the principles of the budget system can also be supplemented and concretized, since this system is also constantly developing taking into account the requirements of the development of the socio-economic system.