Regional budget - the financial basis of the work of regional authorities

The financial basis of local authorities is the regional budget. Property and monetary rights granted to these bodies allow you to draw up, review, approve and, of course, execute your budget.

The regional budget is the main channel for bringing the final result of production to citizens. It is with the help of this source that the social product is redistributed between the layers of the population and the administrative-territorial units. In addition to the above, this type of budget provides financing for such important industries as the food industry, utilities and other budget organizations. This, in a way, is a tool for improving the well-being of citizens.

From the economic point of view, the regional budget should perform such functions:

- to form monetary funds involved in the financial support of the functioning of local authorities;

- distribute these funds among the leading branches of the economy;

- to control the financial and economic activities of subordinate organizations, institutions and enterprises.

The formation of a regional budget is carried out by the relevant authorities and consists of the implementation of certain stages related to its drafting, approval and execution. The main components of this budget, as well as any other, are the revenue and expenditure parts.

The basis of the revenue part is various income to the budget. In tax revenues, the largest share is taken by land tax. This type of tax is an economic tool in achieving high efficiency of land use. Also, the land tax serves as a source of reimbursement of the expenditure part of the local budget for the development and development of new territories.

The regional budget should be supported by fixed sources of income. It is these sources that should contribute to the increase of payments, as the budgetary expenditures are characterized by a tendency to a constant increase. Therefore, in the budget of any region, an important role should be assigned to regulatory sources, which are funds coming from higher-level budgets.

The number of regulatory revenues includes:

- percentage deductions from tax revenues of the top-level budgets;

- subsidies and subventions from higher budgets.

The role of regulatory revenues is to provide the regional authorities with monetary resources, and this source of income serves to increase the interest of local authorities in raising funds to the higher-level budget.

Often, the costs of the regional budget exceed revenues. In this case, from the deficit, the budget can save only subsidies or subventions from the higher-level budget. However, these sources do not have incentive qualities and favor the development of a sense of dependency in the regions.

The regional budget can not exist without its expenditure, the main direction of which is financing of social and cultural institutions, such as health care and public education, as well as other budget organizations. At the same time, the structure of the budgets of different regions differs among themselves. If in the regional, city and regional budgets the expenditures on social and cultural activities make up almost half of all expenditures, then in village, rural and district budgets - up to 86%.

With the growth of large cities and populated areas, the costs per capita increase. And this is one of the important indicators of expenditures of regional budgets. Also, we should not forget about the growing needs of residents of small towns and villages in the municipal sector.