The Federal budget is the Law on the Federal budget

Any social benefits, reconstruction of institutions of non-profit nature and many other activities of the state value to a greater extent kompensiruet at the expense of national wealth. Its formation and structuring-is the process difficult and time consuming, and we will try to understand in this article.

The Concept of the Federal budget

The Federal budget – fundamental Treasury of any state, which is a system of relationships based on mandatory funds, which are an integral part of the government's funds. National financial wealth in the base of its formation takes the basic socio-economic functions of the country, which are the main areas of future revenues and expenses.

In turn, the Federal budget of the Russian Federation carries out the major functions in the livelihood of the state system:

• Stimulates social policy;
• Regulates economic processes in the country;
• Participates in the redistribution of GDP and national income;
• Controls the flow of funds.

As we can see the problems this financial instrument is more than enough, so the government is thoroughly suited to its formation and structuring, as we next discuss.

How is the budget

We All understand that the Federal budget – it's not just money supply, it is a huge complex mechanism, and each of us wonder what principles guided the officials when accepting it.

As a rule, the Treasury stated in four hearings and includes the following number of procedures:

1. According to the statistics of the key sectors are estimated totals for the previous reporting period.
2. Next projected near term socio-economic development of the state.
3. Stand out highlights of the upcoming tax and budget policy.
4. On the basis of the development plans key areas of projected consolidated budget and consolidated balance sheets.
5. Next projected Federal programs for various purposes – trust, investment and defence.
6. Takes into account the agreement of an international character, with any financial obligations.
7. Take into account the accounts of the Federal budget for other expenses.
8. Discusses future programme aimed at the implementation of external loans.
9. The article Discusses the minimum level of indexation of social benefits.
10. Pause normative legal acts, financing of which is not provided with the budget policy for the next year.

Mandatory programs

The Draft Federal budget as a financial instrument also carries some social responsibility to their people, so some mandatory programs still exist, but each of them is carefully checked for compliance. For this there is approved by the legislature a clear sequence of actions:

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• The government's consideration is the justification for the project from a feasibility point of view, because the state apparatus must be convinced of the need to Finance a procedure with the Treasury;
• Next projected social and environmental impacts from implementation of a specific program;
• Guided by the current legislation, the government decides on the direct funding of a specific project;
• Prepares other required documentation.

Principles of forming the Federal budget

Any details related to the formation and disposal of state Treasury, regulates the present legal act-the Federal Law on the Federal budget. Spelled out a clear algorithm of actions in case of different situations is extremely important in today's unstable market relationships. Since it would be strange and highly impractical after the adoption of the structure of the Treasury for the current year to dispose of the funds on social benefits in favor of strengthening national defense.

So everyone, even of a minor nature, the disposal of state assets is regulated by the legislation and based on the following principles:

• All revenues financial flows are classified into groups and classes depending on economic and territorial predisposition – this means that some revenues of local budgets remain at the disposal of the County, and Vice versa;
• In the event of shortages due to excessive costs, missing funds covered, also starting from the structural component of the instrument.

In General, it is difficult to describe the mechanisms of managing the state Treasury in a few sentences, but we will try to deal with this complex structure.

Structure of the Federal budget

We All know that huge complex cash flow are not able to manage only the higher bodies of the Executive power. Federal budget – it is commensurate with the size of the financial institution, and in the worldpractice, there are several common structures for its regulation:

• A Bank;
• Combined;
• Treasury.

Once in Russia practiced banking structure, which allows to record the movement of financial flows at the level of payment and regulated by the Central Bank. But this system was imperfect because of a failure to display information, so the decision was made to move to the Treasury Department.

Budget Management

In Addition to the principles of the order, the Federal law on the Federal budget well as all levels of management of this property.

So, the first stage is the Main Federal Treasury Department, which is responsible for balancing of all current income and expenses, as well as informing the Executive authorities.

On the second level is the Treasury Department, reporting directly to the district authorities. The functions of this institution are to inform higher authorities about the income and the execution of the orders on costs in its territory.

Third level of management includes local city and district treasuries, which carry out accounting of the movement of public funds on the designated area.

Functions of the Central Treasury

All Federal funds anyway are accounting staff of the Central Treasury, which is responsible for several important functions and tasks:

• Distribution of budget revenues between the authorities of different levels;
• Records of any payments, including tax, the accounts of the state value;
• Implementation of refunds and offsets unnecessarily or mistakenly transferred funds between treasuries at all levels;
• Recalculation of planned targets, taking into account different kinds of deferments and exemptions;
• Identification of constraints in a particular financing;
• Constant monitoring of costs to ensure efficient management of state Treasury;
• Management of all financial flows in the Bank accounts of the Treasury.

Sources of revenue

Who shapes the state Treasury? Let's look at the participants in this complex and continuous process:

1. The Taxpayers – carried out ongoing and systematic enumeration swell the revenues of local budgets.
2. The Central Bank together with commercial – organize direct public money bills.
3. The Federal Treasury with its structural subdivisions-shall record the received Finance.
4. Executive bodies, including state inspection, – are intermediaries between the payers of the liabilities and the Treasury, regulate their relationship.

Thus, we can say that very important and indispensable participants in this mechanism are the entities who have certain obligations to the country. But there are also non-tax budget revenues, which include fines and other penalties arising out of relations with governmental authorities.

Sources

Expenditure Federal budget – is the result of the calculated forces, which fully depend on income. The size of this sector of the state Treasury directly proportional socio-economic needs of the people and the country as a whole. Of course, this does not mean that they are completely satisfied, however, taken into account in the annual planning. They are distributed according to the following principles:

• Branch (formed on the needs of various departments and ministries);
• Territorial (oblast participation of the country population);
• Functional (costs are carried out in accordance with the stated target programs, among which may be affected by social, environmental, scientific and other matters).

Any decisions on public spending are taken directly by the Central Treasury and the Ministry of Finance.

Budget Balance

The Federal budget of the Russian Federation over the last decade, could not boast of its balanced, which, in principle, is normal in the world practice – something always exceeds either the income or the expenses.

So, in 90-e years of the last century persistently observed budget deficit, and it means that requirements for socio-economic regulation of state was much greater than the revenues from taxpayers.

In recent years, However, the situation changed exactly the opposite, and at the moment there is a steady surplus in the national Treasury.

Regulation of the Federal budget

Now, the government has the most important task – the increase of economic efficiency against the background of foreign policy, this means that is primarily governed by the structure of the state financial reserves. Various principles of management of social funds and regulates the Federal law on the Federal budget.

But we all understand that it is difficultto predict anything in such an unstable market relations, which depend largely on international relations. Therefore, against the background of recent events, established a special Stabilization Fund, aimed at supporting economic growth at the expense of budget surplus.