Budget revenues. Budget revenues are funds received free of charge and irrevocably in accordance with legislation at the disposal of public authorities of the constituent entities of the Russian Federation.
Regional budget revenues are generated from tax and non-tax types of income, as well as from gratuitous transfers. Tax revenues of regional budgets in the Russian Federation are currently generated from their own and regulatory tax revenues. The Tax Code of the Russian Federation includes its own regional taxes and fees: property tax, organizations tax, real estate tax, road tax, transport tax, sales tax, as well as regional license fees. When a real estate tax is introduced in a given territory, the corporate property tax, the personal property tax and the land tax cease to operate. At the same time, the Federal Budget established that regional budgets receive part of the proceeds from federal taxes such as profit tax (income) of enterprises and organizations, personal income tax, value added tax on goods (work and services) produced on the territory of the Russian Federation. Federations; from excise taxes on ethyl alcohol from food raw materials, vodka and liquor products, from the tax on the purchase of foreign banknotes, from licensing and registration fees, as well as payments for the use of subsoil resources, forest resources, water bodies and from some other taxes. These tax revenues are considered regulatory; the share of budgets of the corresponding level in them is subject to periodic revisions. Non-tax revenues of the regional budget include:
funds received from the sale of regional property;
funds received in the form of rent or other payment for the temporary possession and use or temporary use of property owned by the region;
funds received in the form of interest on budget balances in accounts with credit institutions;
funds received from the transfer of property in regional ownership, secured by security, into trust management;
payment for the use of budget funds provided to other budgets, foreign states or legal entities on a repayable and paid basis;
income in the form of profit attributable to shares in the authorized capital of business partnerships and companies, or dividends on shares owned by constituent entities of the Federation;
part of the profit of regional unitary enterprises remaining after paying taxes and other obligatory payments;
other income provided by the legislation of the Russian Federation from the use of property that is in regional ownership;
income from paid services provided by budgetary institutions under the jurisdiction of government bodies of the constituent entities of the Federation.
The income of regional budgets may include gratuitous transfers from individuals and legal entities, international organizations and foreign governments. Free transfers for mutual settlements may also be included in budgets. Mutual settlements are understood as transactions involving the transfer of funds between budgets of different levels of the budget system of the Russian Federation, associated with changes in the tax and budget legislation of the Russian Federation, the transfer of powers to finance expenses or the transfer of income that occurred after the approval of the budget and were not taken into account by the budget law.
Budget expenses. According to the Budget Code, the following functional types of expenses are financed exclusively from the budgets of the constituent entities of the Federation:
ensuring the functioning of representative and executive authorities of the constituent entities of the Federation;
servicing and repayment of public debt of the constituent entities of the Federation;
holding elections and referendums in the constituent entities of the Federation;
ensuring the implementation of regional target programs;
formation of state property of the subjects of the Federation;
implementation of international and foreign economic relations of the subjects of the Federation;
ensuring the activities of the media of the constituent entities of the Federation;
providing financial assistance to local budgets;
ensuring the implementation of certain state powers transferred to the municipal level;
compensation for additional expenses arising as a result of decisions made by government bodies of the constituent entities of the Federation, leading to an increase in budget expenditures or a decrease in budget revenues of local budgets;
other expenses related to the exercise of powers of the subjects of the Federation.
Capital (investment) budget expenditures represent the part of budget expenditures that ensures innovation and investment activities, incl. investments in existing or newly created legal entities in accordance with the approved investment program, funds provided as budget loans for investment purposes to legal entities, expenses for major repairs and other expenses associated with expanded reproduction, expenses during the implementation of which the creation or the property owned by the subject of the Federation increases. A development budget can be formed as part of capital expenditures of budgets. Current budget expenditures include expenses ensuring the current functioning of regional government bodies, budgetary institutions, providing support to other budgets and individual sectors of the economy in the form of grants, subsidies and subventions for current functioning, as well as other budget expenses not included in capital expenditures in accordance with budget classification of the Russian Federation. Current expenses of the regional budget cannot exceed the volume of regional budget revenues. Subventions and subsidies to the budgets of constituent entities of the Russian Federation are provided to finance expenses of a targeted nature (expenses for federal target programs, capital expenditures, expenses transferred from the budgets of other levels of the budget system of the Russian Federation and other targeted expenses). The procedure for their provision and calculation are determined by a special federal law or the budget for the next financial year.
The fundamental place in the financial structure of each country belongs to the state budget. The main plan for the income and expenditure component of the economic, social and political life of the country is valid throughout the entire financial year. The budget legislation of the Russian Federation defines the sovereign “estimate” as a form of filling and spending monetary funds, the purpose of which is the full implementation of the tasks and functions of the state.
The budget system is a mechanism for implementing the functioning of the main financial plan in any state. Its effectiveness and efficiency are extremely important for the effective implementation of the much-needed principle of social equality and justice, which are carried out in the same proportion throughout Russia.
The federal and regional budgets are important elements in the process of redistribution and subsequent use of national income. Since the results of the activities of business entities in each country are indicators of gross domestic product and national income, their distribution is considered an extremely important procedure.
The regional budget represents the central link in the financial plans of the administrative-territorial units of the state. Their natural purpose is considered to be full material support for the functions assigned to the administrative bodies of a particular subject of the Russian Federation.
The regional budget is formed in accordance with the national financial plan designed for the year. At the same time, the revenue part largely depends on the inclusion of own and regulatory revenues. The first group includes local taxes and fees, including:
Own revenues, which represent the income of the regional budget, include profits from the operation of the provided property owned by the authorities of the constituent entities of the Russian Federation, and funds received as payment for services provided by state budget financing institutions.
Regional budgets of the Russian Federation include such an important indicator as the standard of provision for each individual resident. These same parameters, as a rule, serve as the basis for the distribution of the minimum amounts of income included in local budgets.
Meanwhile, the excess of the local budget standard compared to the average at the federal level allows the former to play the role of a donor for the latter. If everything happens the other way around, the local budget becomes a full recipient of the group of so-called regulatory incomes, which are:
They are formed through federal tax assessments. All fees undergo a mandatory stage of redistribution immediately before being transferred to the federal, regional and local budgets of the Russian state. The volume of regulatory revenues intended to go to regional and local budgets is determined in accordance with the standards and instructions included in the scope of the main legislative acts.
Since the regional budget is the central link of any territorial financial plan, its task can be considered to fully cover the costs necessary to ensure the performance of the functions of state entities. Its filling, as already mentioned, occurs due to various charges. Each of them represents a separate type of financial resources:
Regional budget funds are used, as a rule, in specific areas, where the main ones are the following:
Delving deeper into the budget legislation of the Russian Federation, it is impossible not to notice the concept of a consolidated budget that is often found in it. The regional budget and the local budget are included in a single set of financial plans for a specific subject of the Russian Federation. In turn, together with the federal, generalized information from individual regions represents the consolidated budget of the state.
Unlike the national financial plan, the consolidated one does not undergo the procedure of consideration and approval by representative bodies. In essence, it is a statistical indicator of the budgetary summary, which includes expected items of income and expenses, clarification of additional sources of filling the budget and receipt of funds, as well as directions for their application in Russia and some constituent entities of the Russian Federation.
The federal and each regional budget (budget of a state subject), going through the annual planning stage, are required to use consolidated data from consolidated government estimates. For example, in order to determine the volumes of certain deductions from distributed taxes and the amount of subsidies, data from the consolidated budgets of the corresponding administrative-territorial unit are taken as the basis. It is extremely important that the amount of the reserve entering the financial circulation of the state coincides with the result of the analysis of the formation and operation of the main sovereign fund.
It is also worth noting that the consolidated budgets of the regions play a huge role in the calculations demonstrating the degree of security of the population as a whole or residents of individual regions. For example, when drawing up a financial plan for a particular region, average indicators of the expenses of one person for medical care, etc. are often required.
Expenditures of the regional budget in the financial system of the Russian Federation are going through a phase of differentiation, since any of its levels has an equal set of rights to partially receive income or secure funds in full. In addition, any state bodies and local self-government have the authority to independently determine the vectors of spending budget funds at the regional level.
Meanwhile, today in the sphere of interbudgetary relations of the Russian state, coordination between the center and the regions plays an extremely important role. It should be emphasized that the root cause of most of the shortcomings of the budget mechanism in the Russian Federation is centralization, or federalism.
Strict implementation of the following recommendations of financial experts will help to eliminate all the problems of the functioning system:
The features of interbudgetary relations between regions and municipalities can be characterized using the example of the relationship between the federal and regional budgets. Since local government bodies function only on the basis of the local budget, the procedure for drawing up, forming and approving it is carried out by them. In addition, execution and control over execution are also the prerogative of local managers. In this case, subsidies provided by the federal budget to equalize the financial security of villages are necessary to balance the ability of local governments to exercise relevant powers, based on the level of security or population size. Subsidies for settlements are distributed through legislatively approved standards for deductions from taxes on personal income. Such subsidized revenues represent a regional financial fund, the purpose of which is to support the budget, in particular its revenue side.
At the same time, considering subsidies that initially go to the regional budget (regional budget) and then distributed at the local level, it should be noted that their totality forms a fund for co-financing the expenses of a particular region. The compensation fund is formed by a combination of subventions coming from the regional to the local budget.
However, the decision to allocate financial support to any municipal formation in the form of the above deductions, as a rule, occurs after confirmation of the feasibility of such financial assistance. That is, the task of the state is to control the rational use of funds from a specialized fund in order to prevent financing of an ineffective management mechanism.
Thus, government agencies have the right to carry out inspections to clarify the activities of local authorities in the field of filling budgets, their expenditure and compliance with proper saving measures.
The main goals of the annual policy in the field of financial planning are the following positions, designed for the long-term perspective of the effectiveness of budget instruments:
In addition, an obligatory step of the state and each of its subjects when forming the distribution of budget funds is to improve the quality of services provided to the population. First of all, we are talking about healthcare, education and the sociocultural component. Regular revenues from the national budget to regional municipal budgets are largely determined by the parameters of the functioning of the pension system. Here it is extremely important that territorial authorities have the opportunity to timely take into account demographic changes in the overall structure of the population.
According to most experts in the field of finance, the success and effectiveness of the budget mechanism largely depend on the operation of the state tax system. It should be aimed at creating a favorable climate for investor participation and increasing the level of entrepreneurial activity. Taxation of the country determines the ways to modernize the structure of the state's economy, and therefore its competitiveness in the markets of scientific and technical labor. It follows that the sources of federal budget resources, as well as the revenues of the regional budget of any of the constituent entities of the Russian Federation, are predetermined by the success of the tax system.
Achieving high results in the process of optimization and transformation of the political and economic sphere of activity of state bodies and local self-government requires the construction of an improved model of the budget structure of the Russian Federation. The system, first of all, which is not a counterweight to the federal structure of the country, is capable of qualitatively distributing social and financial resources at all levels. The regional budget for the development of an administrative-territorial unit, being directly dependent on the relationship with the federal center, reflects the level of socio-economic development of the state.
In general, the budget system of the Russian Federation has a fairly high chance of improvement and improvement in efficiency, therefore government financial management bodies need to eliminate the following:
The budget of the Russian Federation is the main financial plan of the country, compiled annually. Being a basic instrument for the accumulation of funds, it provides central and regional authorities with a natural opportunity to exercise managerial powers. The budget system of the Russian Federation is a direct reflection of the style of management characteristic of the state in all spheres of the economy.
By determining the tax climate of the country, the federal budget is able to clearly demonstrate the volume of financial resources required by the state in relation to actually existing reserves. Based on this, the regional budget receives clear, fixed directions for spending funds in a specific industry, thus expressing the economic national policy.
August 2, 2019, The President of Russia signed the Federal Law developed by the Government aimed at improving the system of interbudgetary relations Federal Law of August 2, 2019 No. 307-FZ. The draft federal law was submitted to the State Duma by Government Order No. 2288-r dated October 24, 2018. The federal law specifies the conditions and procedure for the distribution and provision of interbudgetary transfers. The provisions governing the provision of subventions to the budgets of the constituent entities of the Federation from the federal budget, including in the form of a single subvention, are being clarified.
April 16, 2019, Budgets of the constituent entities of the Federation. Interbudgetary relations On the provision of subsidies to the Trans-Baikal Territory for the payment of wages to public sector employees Order of April 11, 2019 No. 698-r. Funds are being sent to the Trans-Baikal Territory to ensure the payment of wages to public sector employees.
April 15, 2019, Budgets of the subjects of the Federation. Interbudgetary relations The President of Russia signed the Federal Law developed by the Government on changes in the procedure for administering budget revenues at all levels from fines, penalties, and penalties Federal Law of April 15, 2019 No. 62-FZ. The draft federal law was submitted to the State Duma by Government Order No. 1287-r dated June 27, 2018. The federal law is aimed at resolving issues related to the inclusion in budget revenues of all levels of fines, penalties, penalties under civil contracts, as well as payments paid for the purpose of voluntary compensation for damage caused to state or municipal property, or harm caused to the environment .
April 1, 2019, Public finance management tools Long-term budget forecast approved Order of March 29, 2019 No. 558-r. The budget forecast of the Russian Federation for the period until 2036 was approved. The key goal of the budget forecast is to assess, on a variable basis, the most likely trends in the budget system, which allows, through the development and implementation of appropriate decisions in the field of tax, budget and debt policy, to ensure stable macroeconomic conditions and the achievement of strategic goals of the country’s socio-economic development.
November 28, 2018, Budgets of the subjects of the Federation. Interbudgetary relations The President of Russia signed the Federal Law on Amendments to the Budget Code developed by the Government Federal Law of November 28, 2018 No. 456-FZ. The draft federal law was submitted to the State Duma by Government Order No. 2078-r dated September 29, 2018. In connection with changes in the legislation on taxes and fees, the Federal Law establishes in the Budget Code standards for the distribution of income from individual tax payments between the budgets of the budget system of the Russian Federation.
October 25, 2018, Budgets of the constituent entities of the Federation. Interbudgetary relations On the introduction to the State Duma of bills aimed at improving the system of interbudgetary relations Order No. 2288-r dated October 24, 2018. The bills, in particular, provide for reducing the maximum size of the budget deficit of the constituent entities of the Federation from 15 to 10%. The concept of a single subvention to the budgets of the constituent entities of the Federation from the federal budget is being introduced, the procedure for the formation and provision of which will be established by a regulatory legal act of the Russian Government. The possibility of providing new interbudgetary transfers – “horizontal” subsidies – is envisaged.
October 17, 2018, Budgets of the constituent entities of the Federation. Interbudgetary relations On instructions on the issue of a mechanism for compensating the budgets of the constituent entities of the Federation for lost revenues The Chairman of the Russian Government, D.A. Medvedev, instructed that when developing federal laws that lead to the emergence of new spending obligations or a decrease in the income of the constituent entities of the Federation, full or partial compensation for the decrease in income or increase in expenses of the regions should be provided.
September 29, 2018, Budgets of the subjects of the Federation. Interbudgetary relations On introducing to the State Duma a bill on amendments to the Budget Code Order of September 29, 2018 No. 2082-r. The bill was developed in order to create appropriate legal conditions for the preparation of the draft federal law “On the federal budget for 2019 and for the planning period of 2020 and 2021.” In connection with amendments to the Tax Code, it is proposed to consolidate in the Budget Code the standards for the distribution between the budgets of the budget system of the Russian Federation of income from individual tax payments.
August 10, 2018, Budgets of the subjects of the Federation. Interbudgetary relations On the provision of subsidies to the constituent entities of the Federation in order to stimulate the growth of tax potential for corporate income tax Resolution of August 8, 2018 No. 930. 30.6 billion rubles are allocated from the reserve fund of the Russian Government to provide subsidies to the budgets of 63 constituent entities of the Federation in order to stimulate the growth of tax potential for corporate income tax. This will allow to encourage the subjects of the Federation that ensured the maximum increase in tax revenues from corporate income tax to the federal budget at the end of 2017.
August 3, 2018, Taxes and non-tax payments. Financial reporting and audit The President of Russia signed the Federal Law on Amendments to the Legislation on Taxes and Fees Federal Law of August 3, 2018 No. 302-FZ. The purpose of the Federal Law is to improve tax administration procedures. In particular, the period for conducting a desk tax audit of a tax return for value added tax has been reduced from three to two months, and the procedure for carrying out additional tax control actions has been clarified. A tax rate of 0% has been established for value added tax on the sale of goods exported from Russia to the territory of the state of the Eurasian Economic Union, in cases provided for by the Treaty on the Eurasian Economic Union of May 29, 2014. July 14, 2018, Saturday
1Regional budget revenues are generated from tax and non-tax types of income, as well as from gratuitous transfers.
The budgets of the constituent entities of the Federation are credited with income from regional taxes and fees, the list and rates of which are determined by federal tax legislation, and the proportions of their delineation on an ongoing basis and distribution in the order of budget regulation between the regional budget and local budgets are determined by the law on the budget of the constituent entity of the Federation for the next financial year and the Federal Law “On the financial foundations of local self-government in the Russian Federation”.
Tax revenues of the budgets of the constituent entities of the Federation also include deductions from federal regulatory taxes and fees allocated for credit to regional budgets according to the standards determined by the federal law on the federal budget for the next financial year, with the exception of income from federal taxes and fees transferred in the manner of budget regulation local budgets.
Regional are taxes and fees established by the Tax Code of the Russian Federation and the laws of the constituent entities of the Russian Federation, put into effect in accordance with the Tax Code of the Russian Federation, the laws of the constituent entities of the Russian Federation and mandatory for payment in the territories of the corresponding constituent entities of the Russian Federation. For regional taxes, the representative body of the constituent entity of the Federation independently establishes tax rates within the limits established by the Tax Code, the procedure and deadlines for tax payment, as well as reporting forms for it. Regional taxes and fees include:
Organizational property tax;
Property tax;
Road tax;
Transport tax;
Sales tax;
Gambling tax;
Regional licensing fees.
60% of the tax amount assessed to taxpayers on extracted minerals (with the exception of extracted minerals in the form of hydrocarbons and common minerals) is distributed to the regional budget income. When extracting common minerals, the full amount of tax is payable to the budgets of the constituent entities of the Russian Federation.
The amount of tax calculated by the taxpayer on extracted minerals in the form of hydrocarbon raw materials is distributed as follows: - 80% of the tax amount - to the federal budget; -- 20% of the tax amount goes to the regional budget.
The amount of tax calculated by the taxpayer for extracted minerals in the form of hydrocarbon raw materials on the territory of an autonomous district that is part of a region or region is distributed as follows:
74.5% of the tax amount goes to the federal budget;
20% of the tax amount goes to the budget of the autonomous region;
5.5% of the tax amount goes to the budget of the region or region.
When distributing tax revenues by levels of the budget system, tax revenues of the budgets of the constituent entities of the Federation must be at least 50% of the amount of revenues of the consolidated budget of the Russian Federation.
Non-tax revenues of the regional budget include:
Funds received from the sale of regional property;
Funds received in the form of rent or other payment for the temporary possession and use or temporary use of property owned by the region;
Funds received in the form of interest on budget balances in accounts with credit institutions;
Funds received from the transfer of regionally owned property, secured as collateral, into trust management;
Payment for the use of budget funds provided to other budgets, foreign states or legal entities on a repayable and paid basis;
Income in the form of profit attributable to shares in the authorized capital of business partnerships and companies, or dividends on shares owned by constituent entities of the Federation;
Part of the profit of regional unitary enterprises remaining after paying taxes and other obligatory payments;
Other income provided by the legislation of the Russian Federation from the use of property located in regional ownership;
Income from paid services provided by budgetary institutions under the jurisdiction of government bodies of the constituent entities of the Federation.
The income of regional budgets may include gratuitous transfers from individuals and legal entities, international organizations and foreign governments.
Free transfers for mutual settlements may also be included in budgets. Mutual settlements are understood as transactions involving the transfer of funds between budgets of different levels of the budget system of the Russian Federation, associated with changes in the tax and budget legislation of the Russian Federation, the transfer of powers to finance expenses or the transfer of income that occurred after the approval of the budget and was not taken into account by the budget law.
Financial assistance from the federal budget in the form of grants, subventions and subsidies or other irrevocable and gratuitous transfer of funds is subject to accounting in the revenues of the regional budget, which is the recipient of these funds. Moreover, such financial assistance is not the regional budget’s own income.
Own revenues of the budgets of the subjects of the Federation from regional taxes and fees, as well as from federal taxes and fees assigned to the subjects of the Federation can be transferred to local budgets on an ongoing basis in whole or in part - in a percentage approved by the legislative bodies of the subjects of the Russian Federation for a period of at least three years. The validity period of the regulations can be reduced only if changes are made to federal tax legislation.
The representative government body of a constituent entity of the Federation has the right to introduce regional taxes and fees, set rates for them and provide tax benefits within the limits of the rights granted by federal tax legislation.
Laws of a subject of the Federation on introducing amendments and additions to the tax legislation of the Russian Federation within the competence of the subject of the Federation, which come into force from the beginning of the next financial year, must be adopted before the budget for the next financial year is approved. Amendments and additions to the legislation of a constituent entity of the Federation on regional taxes and fees, assuming their entry into force during the current financial year, are allowed only if appropriate changes and additions are made to the budget for the current financial year.
The executive authorities of a constituent entity of the Federation may provide tax credits, deferments and installment plans for the payment of taxes and other obligatory payments to the regional budget in accordance with tax legislation within the limits of providing tax credits, deferments and installment plans for the payment of taxes and other obligatory payments determined by the budget.
If there is no debt on budget loans from the regional budget to the federal budget and the maximum size of the budget deficit and the size of the public debt are observed, executive authorities may also grant deferments or installment plans for the payment of taxes and other obligatory payments to the regional budget in relation to the amount of federal tax or fee received by the regional budget. budget of a subject of the Federation.
From a management perspective, it is advisable to use the classification of income into permanent and variable income. Permanent funds consist of taxes and fees regularly levied in favor of the subject of the Federation, a significant part of the revenue from the services of regional services, rent from the use of property, rent payments for the use of subsoil and natural resources, etc. The non-permanent funds of the region include borrowed funds, income from sales of property, etc.
In the budget, funds are classified into functional and investment income. Revenues contributed to the functional part of the budget are used to cover the corresponding expenses of the functional part of the budget. The excess of functional revenues over functional expenses represents an independent source of income for the investment part of the regional budget. Actually, investment budget revenues represent income intended to finance capital investments.
To finance current expenses, taxes, revenues from payments and only in certain cases for capital expenses should be used. For capital expenditures, it is advisable to use subsidies and loans. It is not advisable to use taxes to finance capital expenditures.
It is advisable to use long-term loans for the purposes of capital expenditures in the region because capital expenditures will satisfy the needs of the population for a long time, and repayment of the loan and payment of interest on it will also be carried out from tax funds for a long time.
The use of loans to pay off current expenses is undesirable, since such a policy leads to living citizens shifting the burden of payments onto future generations, who, unlike them, will no longer be able to benefit from these loans.
Current taxes and fees are of little use for capital expenditures from the point of view that citizens will be forced to bear the full burden of costs for services that only future generations will benefit from.
However, there are cases where borrowing is an acceptable source of financing current expenses. Budget expenditures are usually made on a fairly stable schedule throughout the year, at the same time, the flow of revenues into the regional budget may be less regular and depends on many factors. In general, during the year you should either balance your assets and liabilities in your current accounts or have a small positive balance in order to cover capital expenditures. Therefore, short-term loans practiced by regional authorities to compensate for irregular payments are fully justified.
If regional authorities do not have the ability to immediately increase revenue, and higher levels of management have not provided the necessary assistance, the only option left is to raise a loan to cover unforeseen expenses.
When using loans for these or other purposes, it should be taken into account that an increase in the share of borrowed funds in the regional budget leads to a significant increase in risks associated with changes in market conditions.
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MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
FEDERAL AGENCY FOR EDUCATION
In recent years, the subjects of the Federation have received certain rights in the field of taxation and disposal of regional property. As a result, the dependence of the regional budget revenue base on the efficiency of managing the process of forming its own financial base has strengthened. Existing revenue sources cannot be considered exhaustive, and this is the reason for the imbalance of the budgets of the constituent entities of the Russian Federation. Hence, streamlining the financial support of the powers of the constituent entities of the Russian Federation is the most important condition for strengthening Russian statehood based on the principles of financial independence and federalization.
Currently, there are no effective incentives for the growth of regional budget revenues, which leads to the emergence of a large number of chronic subsidized territories. Smooth equalization of budgets through subsidies and subventions creates dependent attitudes among regional authorities and does not contribute to the development of their economic initiative. In essence, the principle of functioning of financial circuits within the budget is ignored - their objective connection with the sphere of production of goods and services. Therefore, there is a need to improve the mechanism for generating the revenue side of regional budgets and increasing the level of regions’ own income.
The formation of regional budget revenues under the influence of the budget structure of the Russian Federation is expressed, in our opinion, in two aspects. The first aspect is related to state regulation and the organization of numerous budgetary relationships for the mobilization of budgetary resources at the disposal of governing bodies of the constituent entities of the Russian Federation and the use of their resources in accordance with the tasks arising from the functions of the region. At this stage, the procedure for generating and sources of income is determined by legal methods. The most difficult and important task of state regulation of regional revenues at the formation stage is to provide expenditure functions with their own revenue receipts as the main condition for the effectiveness of creating budgetary relationships. However, in the process of forming budgetary relations at the regional level, it is difficult to achieve a match between the revenue potential and the needs for financing expenses. These circumstances predetermine the regulation of budgetary relations of an administrative-territorial entity with the Russian Federation as a whole as a single state.
The legal regulation of the division of budget revenues between the regional and federal levels expresses the second aspect of the influence of the state budgetary structure on the formation of budgets of the constituent entities of the Russian Federation. Through the system of legal regulation of interbudgetary relations, the correspondence of expenditure functions and revenue receipts in regional budgets is ensured.
It is important to note that, despite their relative independence, both aspects of the principle of federalism in the field of education and the distribution of budget revenues of the constituent entities of the Russian Federation function as a single whole, since they reflect two sides of the single process of organizing budgetary relations of the state. Revenues of regional budgets are financial relations determined by legal norms regarding the receipt of funds into the budget of the Russian Federation, a subject of the Federation or a municipal entity in order to create a financial base to meet public needs. Regional budget revenues express the financial relations that arise between the authorities of the constituent entities of the Russian Federation with enterprises, organizations and citizens regarding the receipt of funds into the budget of the corresponding region in order to create its financial base to meet public needs. The form of manifestation of these financial relations are various types of payments and receipts to the regional budget with their material embodiment - funds mobilized into the budget fund of the constituent entity of the Russian Federation. The basis for building a system of regional budget revenues is based on principles that allow a subject of the Russian Federation to have sufficient financial resources for its activities and at the same time use payments from legal entities and individuals to regulate their financial condition. The main principle is the principle of independent combination with their state financial support (see diagram 1).
Specific types of revenue receipts to the regional budget are characterized by great diversity, which is due, on the one hand, to the presence in a market economy of sectors and different business entities that differ in the scope of their financial rights and obligations to the state, and on the other hand, to the tasks arising from economic and financial politics of the region.
All regional budget incomes can be divided into several groups according to socio-economic characteristics: income from the state or municipal economy, generated mainly as a result of the production activities of state or municipal enterprises, as well as from the use of property and natural resources of territorial entities (for example, forests, reservoirs etc.); income from enterprises and organizations of various forms of ownership (except state) (taxes, fees, other payments); income from joint ventures, foreign enterprises and organizations operating in a specific territory; receipts from personal income of citizens.
In addition, you base the grouping of regional budget revenues on the legislative acts of the Russian Federation that determine the source of revenue generation for budgets at all levels. The budget classification of income from the budgets of the constituent entities of the Russian Federation divides them into groups, subgroups, articles and subarticles with the assignment of budget classification codes.
In the group "Non-tax income" subgroups are distinguished: income from property in state and municipal ownership, or from activities; from the sale of state and municipal property; from the sale of regional reserves; from the sale of land and intangible assets; receipts of capital transfers from non-state sources; administrative fees and charges; penalties, compensation for damages; other non-tax income, gratuitous transfers.
The purpose of this classification of regional budget revenues is to ensure comparability of budget indicators at all levels, i.e. the federal budget, budgets of the constituent entities of the Russian Federation and local budgets. It is used in the budget process when drafting a budget, considering, approving and executing budgets, as well as when executive bodies draw up consolidated budgets. In addition, such a classification is important for analyzing sources of income, their volume, and prospects for use.
Own income includes regional taxes and fees, as well as income from the use of property administered by state authorities of the constituent entities of the Russian Federation, contributions received to the budget from regulatory income sources, additional sources established independently by the representative authorities of the constituent entities of the Federation (with the exception of the introduction of additional regional taxes and fees not provided for by federal tax legislation). Granting the subjects of the Federation such a right, firstly, contradicts the Constitution of the Russian Federation (Articles 71, 72) and the Tax Code of the Russian Federation (Article 12) and, secondly, additional taxes in certain subjects of the Russian Federation will inevitably lead to budget asymmetry and sharp differentiation of income potential of various regions of Russia. These payments are required by law.
By and large, transfers should also include deductions from regulatory taxes, since these are federal budget funds left to the regions. But, on the other hand, these deductions are characterized by irrevocability and gratuitousness. Therefore, they are traditionally taken into account as part of own income, but it is necessary to keep in mind the temporary nature of their structure and size.
Regulatory revenues of the budgets of the constituent entities of the Russian Federation should be considered forms of direct financial support for the constituent entities of the Russian Federation, enshrined in the budget code of the Russian Federation and approved by the law on the federal budget for the coming year, as well as interest deductions from federal taxes and other payments, which are transferred on a long-term basis (at least three years) to budgets of the constituent entities of the Federation for the purpose of budget regulation.
First, it is necessary to take into account the degree of mobility of income sources. All other things being equal, the higher the degree of mobility of the profitability of any objects, the higher should be the level of government power receiving income from these objects, since the uniformity of distribution of income sources in the territorial aspect is of particular relevance. It is generally accepted that labor and capital (primarily in monetary form) have a fairly high degree of mobility, and property (in the form of real estate) and natural resources have the lowest degree.
General methods are determined by the very nature of the revenue part of the regional budget, its public nature, and its focus on achieving common interests. Special methods are used in the process of attracting certain types of income to the budgets of constituent entities of the Russian Federation. The most common general method in modern conditions is the method of authoritative instructions (imperative). Thus, the annual laws on the federal budget contain certain instructions to the constituent entities of the federation, which are not necessary to comply with, but in order to implement a unified budget policy, it is desirable.
To accumulate funds in regional budget funds, the method of mandatory and voluntary payments is used. Regional budget revenues are generated to a greater extent by the method of mandatory payments, which is implemented through the taxation mechanism. The modern tax system of budget funds of the constituent entities of the Russian Federation does not correspond to their interests, since they (income) are formed mainly from deductions from federal taxes and transfers from the federal budget, and not from their own sources. A compromise between the financial interests of Russia and the constituent entities of the Russian Federation in the distribution of revenue sources between state budgets can be achieved in the process of implementing the principle of federalism in the tax system, that is, by consistently delineating taxes between the Russian Federation and its constituent entities. A necessary condition for ensuring the adequacy of the budgets of the constituent entities of the Russian Federation is the presence of significant revenues and easily collected regional taxes.
The ratio of mandatory and voluntary payment methods depends on many different factors: the political course of the state, the authorities of the constituent entity of the Russian Federation, the development of federal relations, the need for financial resources, etc. Currently, the dominant position in the formation of regional budgets belongs to the method of mandatory payments. The transition of the state and administrative-territorial entities to new economic conditions objectively requires expanding the scope of attracting voluntary payments to the relevant budgets.
Partial fixation of regional budget revenues is carried out by the method of quotas and annexation of rates. The essence of the quota method is that income in a certain percentage remains at the disposal of the subject of the Russian Federation in whose territory it was received. The method of adding rates is based on the fact that a subject of the Federation has budgetary competence regarding the introduction of surcharges on federal taxes. The amount of allowances is limited by law.
Deductions from federal taxes and other payments are distributed among the budgets of the constituent entities of the Russian Federation using the normative method. The standards for deductions are approved, as a rule, for the financial year; however, and this is important to emphasize, the Budget Code of the Russian Federation determines the possibility of a long (at least three years) period for crediting federal regulatory taxes and other payments to the budgets of the constituent entities of the Russian Federation (Article 48). This method increases the interest of the constituent entities of the Russian Federation in collecting federal taxes and allows for more accurate planning of revenue receipts into the budgets of the constituent entities of the federation. However, attention should be paid to the extremely weak methodological basis for the distribution of regulatory taxes to the budgets of the constituent entities of the Russian Federation, as a result of which the system of vertical financial equalization becomes ineffective, does not take into account the potential and needs of each administrative-territorial entity, and the budgetary independence of the regions is reduced and confrontation appears between them.
The scientific literature rightly notes that subsidies, subventions and subsidies as methods of allocating financial resources to regional budgets quickly form a core of “maliciously subsidized subjects” who are not interested in developing their own revenue base, but are only interested in perpetuating the subsidized financing regime. However, they cannot be completely excluded as methods of providing the budgets of the constituent entities of the Russian Federation with the necessary funds. With a formal approach to solving the problem of eliminating subsidies to these budgets and transferring large amounts of deductions from unstable income to them, the position of regional budgets may worsen. This will lead to constant cash gaps and the need to repeatedly apply for loans from the federal budget.
The need for financial support for regional budgets determines the allocation of funds from the federal budget to the budgets of constituent entities of the Russian Federation not only on irrevocable and gratuitous terms, but also by providing financial assistance on a repayable, urgent and (or) reimbursable basis. These lending methods include budget credit and budget loan.
The next common feature of a budget loan and a budget loan is the purposefulness of the funds raised. State authorities of the constituent entities of the Russian Federation have the right to attract loans from the federal budget to cover the deficits of the corresponding budgets, as well as to finance the expenses of regional budgets to pay off debt obligations. Federal budget funds are issued as a budget loan to a constituent entity of the Russian Federation to finance cash expenses arising during the execution of the budgets of a constituent entity of the Russian Federation.
The terms for providing budget credits and budget loans differ. The attraction of federal budget funds by subjects of the Russian Federation as a budget loan is limited to six months with a repayment period until the end of the financial year. The repayment period for a budget loan is not determined by law; moreover, there is no sign of urgency. In our opinion, the sign of urgency should be legislatively enshrined in the text of the Budget Code of the Russian Federation.
It is important to pay attention to the distinctive features of a budget loan and budget credit from other forms of financial assistance. Firstly, a budget loan and budget credit are provided on the terms of repayment, urgency and (possibly) compensation, and grants, subsidies and subventions are provided on a gratuitous and irrevocable basis. Secondly, the implementation of a budget loan as a method of financial assistance occurs at the stage of budget execution, while grants, subsidies and subventions are applied at the stage of its preparation.
In our opinion, the main form of centralized support for the constituent entities of the Russian Federation should be budget loans allocated from the federal budget to cover cash gaps, since this method is more consistent with inter-budgetary regulation, promotes the development by the constituent entities of the Russian Federation of their own sources of budget income and reduces the dependent mood in relation to the federal center.
In order to provide financial assistance to the budgets of the constituent entities of the Russian Federation, on the basis of the Decree of the President of the Russian Federation “On the formation of the republican budget of the Russian Federation and relations with the budget of the constituent entities of the Russian Federation in 1994,” a financial support fund for the regions of the Russian Federation (FFSR) was formed. It should be noted that the creation of funds to support regions within the federal budget is an international experience transferred to Russian practice. The formation and allocation of a target FFPR as part of the federal budget, in our opinion, means the regulation of actually existing interbudgetary relations regarding the horizontal alignment of the budgets of the constituent entities of the Russian Federation.
Unlike other forms of financial assistance to the constituent entities of the federation, FFPR funds are currently allocated in absolute amounts, which are established by the law on the federal budget for the current year. The procedure for allocating differentiated shares, which existed earlier, to a certain extent does not stimulate the constituent entities of the Federation to timely and fully collect and transfer taxes to the federal budget.
The considered legal and economic grounds for the classification of regional budget revenues and methods of their formation do not exhaust all their aspects. However, the analysis allows us to conclude that in the optimal model for generating regional budget revenues, the grouping of revenues should be made according to the criterion of independence of regional authorities. Therefore, in our opinion, it is necessary to divide the income of regional budgets according to ownership into their own and attracted, the use of administrative methods in budgetary activities should be reduced, using them in organic unity with financial methods.
The distribution of national monetary resources between the links of the budget system is based on the principles of independence of territorial budgets, their state financial support, and the territorial formation of their sources of income. Based on these principles, local budget revenues are generated from their own and regulatory sources of revenue.
Allocations to finance the implementation of certain state powers transferred to local governments, allocations to finance the implementation by local governments of federal laws and laws of constituent entities of the Russian Federation, allocations to compensate for additional expenses arising as a result of decisions made by government bodies, leading to an increase in budget expenses or reduction in budget revenues of municipalities;
In terms of volume and economic significance, the leading position in local budget revenues is occupied by deductions from regulatory taxes. Their role is not only to provide financial resources to local authorities, but also to increase the interest of local authorities in mobilizing funds to a higher budget, in increasing the efficiency of social production in the territory under their jurisdiction.
The mechanism of interbudgetary regulation is reflected in the Budget Code of the Russian Federation. Article 52 of the Budget Code “Transfer of the federal budget’s own revenues to budgets of other levels” establishes that the federal budget’s own revenues can be transferred to the budgets of the constituent entities of the Russian Federation and local budgets according to the standards established by the federal law on the federal budget for the next financial year for a period of at least three years and the Federal Law “On the financial foundations of local self-government in the Russian Federation”.
The size of the minimum shares of federal taxes assigned to municipalities on an ongoing basis is determined by the legislative bodies of the constituent entities of the Russian Federation. The share of federal taxes to be assigned to municipalities is calculated based on the total amount of funds transferred to the constituent entity of the Russian Federation for each of these taxes. Within these limits, the legislative body of a constituent entity of the Russian Federation establishes for each municipality the share of the corresponding federal taxes, fixed on an ongoing basis, based on their average level for the constituent entity of the Russian Federation. The shares of such taxes are calculated based on the actual data of the base year. In addition to these shares, the legislative body of a constituent entity of the Russian Federation can establish standards for contributions to local budgets from regulatory revenues for the planned financial year, as well as on a long-term basis.
State authorities of the constituent entities of the Russian Federation similarly establish constant percentages and temporary standards for contributions to local budgets from regional taxes, which they define as regulatory. At the same time, the standards of deductions can be established unified or differentiated, including group and individual, or by combining them for different types of regulatory taxes.
Local budgets also receive full income from the use of municipally owned property and income from paid services provided by local government bodies and budgetary institutions under the jurisdiction of local government bodies. Also, local budgets receive full proceeds from the sale of municipally owned property. Other non-tax revenues go to local budgets in the manner and according to the standards established by federal laws, laws of constituent entities of the Russian Federation and legal acts of local governments.
It should be noted that subsidies and subventions as methods of allocating financial resources to local budgets are imperfect. These sources lack incentives and create a dependent mood among local authorities. This practice of transferring funds does not contribute to the development of their economic initiative, reduces the possibility of overfulfilling the revenue side of budgets, and weakens financial control.
However, noting all the negative aspects of subsidies and subventions, they cannot be completely excluded as methods of providing local budgets with the necessary funds. With a formal approach to solving the problem of eliminating the subsidization of these budgets and transferring large amounts of deductions from unsustainable sources of income to them, their situation may worsen. This can lead to constant cash gaps and multiple requests for loans from higher budgets. In general, this will lead to complications in financing planned activities.
Therefore, apparently, not everywhere and not always one should strive to replace subsidies by any means. It seems that subsidies can take place in those populated areas where, due to historical conditions and ongoing policies in the field of environmental protection, historical monuments and other reasons, the economic potential cannot be expanded to such an extent as to ensure the territorial generation of income. Local sources are not able to cover the necessary expenses. An example would be resort cities and towns, cities - historical and architectural reserves, etc. Subventions should be issued for specific purposes for specific activities for which there are not enough funds locally.
Borrowed funds are used to solve economic problems in the respective territories of municipalities. They can be in the form of: interest-bearing and interest-free loans received from the regional budget; commercial bank loans; municipal loans; other borrowed funds guaranteed by local governments or executive authorities of a constituent entity of the Russian Federation.
The most important block for the formation of local finances and the revenue side of local budgets are local non-tax revenues and, first of all, municipal property (including land), income from its use, rental and privatization. Currently, with the exception of privatization legislation, other provisions of economic law relating to the powers of local government and its bodies are in their infancy. Therefore, it is absolutely necessary to clearly establish the legal basis for lease and mortgage relations (including in the property and land spheres).
Such a source of financial resources as targeted extra-budgetary funds has practically lost its importance. The main income items that previously formed these funds are currently consolidated in the budget. Off-budget funds currently include only voluntary contributions and donations from legal entities and citizens, as well as fines for environmental pollution, damage to historical and cultural heritage sites and natural monuments.
The content of the regional budget must be disclosed from various positions: as a relationship, subject, document. A regional budget is a financial category, a fund of funds (budget in a material sense), a planning document reflecting specific income and expenses that fall within the competence of authorities at a given level (budget as a legal category).
The regional budget as a financial category is a set of monetary relations that develop at the level of a subject of the Federation regarding the redistribution of national income and part of the national wealth for the purpose of the formation, distribution and use of a monetary fund centralized within a certain region, intended to finance the functions and tasks of the subject of the Russian Federation, as well as providing financial assistance to local budgets located on its territory if their own income is insufficient.
The absence of a legislative basis for the collection of payments that are not in the nature of taxes inevitably raises the question of the legality and expediency of the existence of each of them. In addition, the legal status of local governments in establishing the collection procedure and directions for using the received funds has not been determined. In these conditions, it seems necessary to adopt a legislative act on non-tax payments, which would determine their legal status, as well as the status of payments that are currently part of the tax system, but in their economic essence are not taxes (for example, fees for the right to trade, state duties and etc.).
The following organizational measures are needed to resolve the problem of inefficient use of property owned by the region: increasing receipts from dividends on shares of enterprises belonging to the regional property, from leasing property owned by the region and from payments to state and municipal unitary enterprises.
thesis, added 12/28/2017
The structure of the budget system and the principles of the budget structure of the Russian Federation. The role of regional and local budgets in the economic and social development of the state. Features of the formation of revenues of territorial budgets of the Russian Federation.
test, added 09/10/2012
The essence of regional budget revenues and sources of their formation. The concept and composition of tax revenues of the federal budget of the Russian Federation. Revenue management of regional budgets. Establishment of special tax regimes. The principle of stability of budget revenues.
course work, added 05/31/2013
The concept and features of regional finance, their role in the socio-economic development of the region. Problems of the relationship between regional and local budgets, principles of formation of income and expenditure items. Analysis of financial resources of the Altai Territory.
course work, added 01/18/2012
Formation of revenues of local budgets of the Russian Federation, their role and use. Regulation of income of regional and local budgets. Principles of budget execution. Principles of interbudgetary relations. Forms of financial support for the subjects of the Federation, their characteristics.
test, added 01/07/2008
Characteristics and essence of local budgets, their importance in carrying out national economic and social tasks. Main features of the legislative levels of local budgets in the Russian Federation. Economic analysis of local budgets.
abstract, added 10/07/2011
Non-tax revenues of the budget of the Russian Federation: concept, content, sources. Non-tax revenues of the budgets of the constituent entities of the Russian Federation and local budgets. Ways to increase the efficiency of non-tax revenues in Russia through optimizing the conditions for managing state property.
abstract, added 01/12/2011
General provisions on the budget system and budget structure of the Russian Federation. Theoretical foundations for the formation of regional budget revenues. Formation of the regional budget of the Russian Federation using the example of the budget of the Samara region.
course work, added 11/29/2006
The bulk of local finances are regional budgets and budgets of administrative-territorial entities. Sources of formation and the existing system of regulation of regional budgets. Spending of the regional budget of the Udmurt Republic.
test, added 03/23/2011
Non-tax revenues as a reserve for the execution of budget revenues. Reducing budget deficits at all levels and improving the lives of the population in the country. Composition, structure and features of the formation of non-tax revenues of the budgets of the constituent entities of the Russian Federation and local budgets.
