Budget classification of expenses

The budget of the Russian Federation is a complex set of various items of income and expenditure. Its effective implementation presupposes a competent classification of sources of revenue, as well as directions of costs present in the state financial system. The specific nature of Russia's political system presupposes the formation of a stable structured model of classifying the incomes and expenditures of the state budget for certain categories. Do the Russian authorities have such a resource?

General information on budget classification

Of course, yes. Otherwise, the functioning of the national economy would be impossible. Classification of expenses, incomes and other parameters of the budget occupies the most important place in the system of state economic planning. The given mechanism assumes the account, systematization and the analysis of the information, concerning execution of articles of the state budget. Based on this information, subsequently, an assessment of the effectiveness of the state policy in the corresponding direction can be carried out, as well as the identification of possible mechanisms for its optimization.

Federal standards

Formation of general principles for classification of budget revenues and expenditures in Russia is built at the federal level through the issuance of relevant regulatory and legal acts, and is subsequently delegated to regions and municipalities. The fact that the development of standards and norms through which the articles of revenue and expenditures of the state budget are assigned to certain categories is realized at the federal level - the most important factor of the stability of the national economy, and in many respects also of the political system.

The budget classification of expenditures and incomes presupposes grouping of relevant articles in terms of the similarity of sources of revenue and channels of investing money into the treasury and is used both for the purpose of drawing up financial plans and in the process of their execution. The key task of the state at the same time is to ensure comparability of certain indicators in budgets of different levels - federal, regional, municipal.

Structure of budget classification in the Russian Federation

On the basis of which principles is the budget classification of expenditures in Russia carried out? First of all, there are two main mechanisms for its implementation.

• First, it is the classification of income. It involves the grouping of budget revenues at all levels in relation to the sources that form it, and in accordance with the provisions of the regulatory legislation. The income categories are determined by the articles that unite these or other sources of revenue on a common basis. This can be, for example, customs fees.
• Secondly, it is a classification of budget expenditures. It is also a grouping of costs that are allocated to different levels of the public financing system. The classification of expenditures reflects the direction of cash flows in specific areas in order to address the key tasks facing the state - economic development and improving the welfare of citizens.

Budget classification within the Russian model assumes the attribution of revenues and costs to sections, subsections, as well as targeted items of the state budget, which reflect the direction of cash flows in the area of solving specific types of tasks facing the state and presume the implementation of certain economic activities.

Classification of expenditures and revenues of the RF budget can also be carried out on economic grounds. The given mechanism assumes grouping of various articles proceeding from their economic maintenance. As a rule, it is planned to allocate current and capital costs. Also, the economic classification of income and expenditure involves the subsequent compilation of estimates for specific budgetary organizations.

Departmental classification

The most important component of the system of distribution of expenditures within the framework of state financing is the activity of agencies. What are they? First of all, the authorities themselves can determine certain mechanisms for assigning budget items to specific categories. Thus, the departmental classification of the expenditures of the state system of financing is being practiced. It is a grouping of cost items at the level of budget systems of the subjects of the Russian Federation. The main task of the authorities involved in this area of work is to allocate budget resources to managers.

The departmental classification of items of expenditure most often acts as a mechanism for allocating appropriate appropriations. The criteria here are the same as those mentioned above - assigning costs to certain sections, sub-sections or targeted articles (which, in turn, can be further classified into subarticles and other elements of financial support for the activities of government bodies and institutions). As for the managers of budgetary funds at the level of the regions of the Russian Federation, as well as entities in a similar status, engaged in work at the municipal level, their lists are approved by the executive authorities or by the competent local government bodies.

Significance of classification

Classification of revenues and expenditures of the state budget of the Russian Federation is of great importance. The effectiveness of its implementation directly affects the quality of the functioning of the state financial system of. Specificity of the budget policy of the Russian Federation is largely determined by the specifics of the structure of public administration, the characteristics of the national model of the federal structure of our country.

Therefore, it is extremely important from the point of view of maintaining the integrity and stability of the political system to have a structured model for classifying and distributing the revenues and costs of the budget. The principles of its alignment should be understandable and open both for federal structures that make key decisions in the field of financial management, and for regional and municipal authorities.

The classification we considered, in the opinion of experts, as a whole, is sufficiently linguistically constructed. The income and expenditure items provided by the Russian budget system, which is very important, are the same for all levels of public financial management. It is quite worthwhile to consider this aspect in more detail.

Unity of the budgetary system

So, the most important feature that characterizes the classification of budget revenues and expenditures in the Russian model is the unity of approaches and criteria for classifying them at a certain federal, regional or local level. Therefore, the key rules governing this mechanism are approved at the level of the highest authorities. As a rule, the relevant sources of law are federal. In turn, at the level of the subjects of the Russian Federation or municipalities, the necessary detailing of regulatory norms can be carried out by issuing regional or local laws. The main thing at the same time is not to violate the general principles of budget classification, fixed at the federal level.

We investigated the key theoretical principles by which the authorities in the Russian Federation classify the items of expenditure and incomes of the state financial system as one or another category. We saw that there are a number of basic approaches to building such a scheme, which are based on economic criteria, or, for example, the methods involved in specific departments. Let us now consider a number of practical points, reflecting how the classification of state expenditures and incomes is carried out. We will study the very categories for which the revenues and costs of the state financial system are distributed in the Russian Federation. Let's start with income.

Classification of income

Classification of budget revenue is expressed in referring its sources to groups, subgroups and specific articles.

Regarding groups, you can identify tax revenues. Among the key subgroups:

1. Taxes on goods, services, licensing and other charges. These include:

- VAT,

- excises on products or raw materials that are produced in Russia or imported from abroad;

- federal, regional, as well as local fees related to the category of licensing;

- tax on the acquisition of foreign currency, as well as payment documents, which are expressed through foreign currency;

- UTII.

2. Property fees. These include taxes:

- on the property of enterprises;

- on the property of natural persons;

- on real estate;

- On inheritance or donation.

3. Fees for the use of natural resources located in the state. Among them are:

- payments for subsoil use;

- collection of mineral resources for reproduction;

- tax on additional revenues from hydrocarbon production;

- tax on the right to use water resources, objects of wildlife;

- forestry, water, environmental, land taxes.

4. Fees related to trade between the Russian Federation and other countries, with foreign economic transactions. Among them are:

- customs, state fees and duties;

- Contributions to various funds owned by the state;

- fees for gambling, advertising;

- road and transport taxes.

Another major group of sources of budget revenue is non-tax revenues. In their structure there are the following main subgroups:

1. Property income on assets that are owned by the state, municipalities, or arising from certain commercial activities. These include:

- income from the use of assets owned by the state or municipalities;

- dividends on securities of state origin;

- proceeds from the rental of state property;

- interest that is received as a result of the formation of bank deposits at the expense of free budget funds, as well as those that arose due to the provision of loans within the country;

- income that has arisen as a result of the provision of services or compensation for the costs of the state;

- profit of the Central Bank of the Russian Federation;

- payments from state or municipal institutions;

- a fee for quotas for catching fish for joint ventures and foreign organizations;

- other income from assets that are owned by the state or the municipality.

2. Income from the sale of assets owned by the state or local government. These can be:

- proceeds from the privatization of enterprises that were owned by the state;

- income arising from the sale of shares by public authorities;

- revenue, which appeared as a result of transactions with residential real estate;

- income from the sale of production or non-production resources, transport, or certain types of equipment;

- proceeds from the sale of confiscated or unowned property owners, hoards and other assets that have become the property of the state or municipality.

- income from the sale of state stocks;

- revenues from the sale of land resources, as well as intangible assets;

- receipts from non-state structures in the format of capital transfers;

- payments and fees related to the administrative category;

- fines, payment of compensation for damage;

- revenue arising from foreign economic activities;

- other income classified as non-tax.

3. Gratuitous income. Their sources can be:

- budgets of different levels;

- state funds, organizations;

- supranational structures.

The classification can include funds that are transferred to trust funds. Actually, this type of institution can also have income.

4. Proceeds from trust funds. Among them are:

- Road, environmental funds;

- structures related to the activities of the customs system of Russia;

- Crime Prevention Fund;

- structures under the jurisdiction of the Federal Border Service, the Ministry of Atomic Energy;

- Fund for the reproduction of mineral and raw materials.

These are the key categories in which the income of the Russian budget is classified. As we defined above, their essence is aimed at maintaining the unity of the RF budget system, adapted to the specifics of the country's political system. But no less important for us will be to study the principles by which the state authorities also classify the expenditures of the state budget.

Classification of expenses

So, the criteria for classifying incomes to certain categories adopted in the Russian Federation, we considered. Let us now examine what the functional classification of the budget expenditures in Russia is. The main category is the section. There are a lot of specific varieties of them. Thus, the current classification of budget expenditures in the Russian Federation implies the allocation of the following list of sections:

- state and municipal management;

- judicial branch;

- activity in the international arena;

- the army;

- law enforcement structures;

- the science;

- Industry, energy and construction industries;

- activities in the field of agriculture, fisheries;

- environmental protection;

- transport sphere;

- communication, information technology;

- market infrastructure;

- Housing and communal services;

- prevention and elimination of consequences of emergencies;

- education;

- Culture and art;

- MASS MEDIA;

- health care, physical education;

- socially oriented policies;

- payments on external government loans;

- formation of state reserves;

- budgetary subsidies and other support measures;

- optimization of the composition of armaments, including in the framework of international agreements;

- training of the armed forces in terms of mobilization;

- financing the activities of trust funds;

- other types of expenses.

Let's study now what is the economic classification of budget expenditures. Within the framework of this approach, costs are assigned to the following main categories:

1. Current expenses. These include:

- payment of interest on loans;

- Subsidies, transfers;

- costs associated with procedures for recognizing rights to own assets abroad.

2. Capital expenditures. Among them are:

- investments in fixed assets;

- formation of the state reserve;

- purchase of land, as well as intangible assets;

- transfers related to the capital category.

3. Provision of budgetary loans. Among the activities of the corresponding type:

- provision of loans within the budget system ;

- loans to foreign countries;

- repayment of loans.

It is possible to allocate additional criteria for detailing costs. The economic classification of budget expenditures may imply the definition of the widest range of articles where public finances can be channeled .

Additional criteria for classification of income and expenses

For example, transfers to citizens are sometimes given a separate category. They are budget funds that are used to finance pensions, benefits, compensation, social benefits, and scholarships - all those financial support measures that are provided for by federal, regional or municipal legislation.

Budget classification of budget expenditures may imply the allocation of additional subject articles on the basis of current categories and sections. For example, in the case of subsidies - funds that are provided by the state in the required amounts to a regional or municipal budget, organization or citizen on terms of equity cash, they can be classified into different sub-items.

State standards in business

It is noteworthy that the functional classification of expenditures, as well as various methods of classifying budget revenues to one category or another, as used by state authorities, can be used in business in the form of fairly similar concepts. How is this possible?

The fact is that the classification of income and expenses of the organization can also assume that they are classified into sections, subsections, subject articles and additional categories. The methodology used by the authorities and business, in this sense, can be very similar.

For example, the classification of income and expenses of an organization can assume that they refer to the specific area of origin, if we talk about the former, and if we talk about the latter, to a certain sphere of investment activities (for example, improving the production base, improving the infrastructure, attracting new personnel, Objects, etc.). In turn, within each of the marked areas of activity of the enterprise, the costs will be specified.

The similarity of the principles by which the state's financial plan is structured and the organization's expenses are classified, as well as revenues, can be expressed not only in classifying the company's revenues and costs for certain items (as well as in the case of the state budget), but also in Building the principles of corporate relations between organizations, which, for example, are united in a holding. In what way can this be expressed?

Holding in this case can act as an analogue of the federal budget. Enterprises that are part of its structure - "regional" financial systems. Divisions and branches - "municipal" budgets. Thus, the classification of the organization's expenses can include, for example, the inclusion in their structure of transactions similar to subsidies and transfers, that is, aimed at providing financial support to those holding structures that it needs at a particular time.

Commercial activities can sometimes be very similar to one or other of the activities of public authorities. So, for example, with regard to loans and loans - the classification of the costs of the enterprise can also assume their inclusion in a separate category, just as the authorities do this by forming a budget.

Thus, the financial policies of power and business can have noticeable signs of similarity. Classification of company expenses, revenues, as well as the structuring of revenues and costs of the state budget within the various categories, in some cases will be carried out on the same principles.