The term "finance" comes from the Latin word finis, meaning the end, the end, namely the completion of the payment, the completed settlement. Later from finis came the word financia (finance), meaning cash payment.
Thus, finance is a historically established economic category. It arose with the development of commodity-money relations. The initial condition for the emergence of finance is commodity production, mediated by monetary relations.
Finance is an integral part of monetary relations, their role and significance depend on what place monetary relations take up in the economy. On a surface public life finance exists as a movement of cash and non-cash Money... Unlike money, which plays the role of a universal equivalent, finance is economic instrument distribution and redistribution of gross domestic product and national income, as well as a means of control over the formation and use of funds.
Finance - economic relations associated with the formation, distribution and consumption of centralized and decentralized funds to perform the functions and tasks of the state.
A special position in the financial system belongs to state and municipal (local) finances, which is due to their specific purpose - to provide state and local government bodies (LSG) with the funds necessary to perform their functions.
State and municipal finances are monetary relations that arise in the course of the formation and use of funds by state authorities and LSGs.
With the help of state and municipal finances, public authorities and LSG regulate social processes, influence the development of priority sectors of the economy, smooth out differences in the level of social economic development separate territories of the country, etc.
The modern market economy is mixed system, in which the mechanisms of public and private regulation closely interact. The economic basis on which the entire system of state participation in the economic life of the country is based are public finance... This is the most important tool for implementing the government's economic policy. We can say that herself economic policy more than half consists of financial and monetary.
Public finance is the most important lever by which the government influences the entire production and distribution process. Public finance can be defined as a collection of centralized and decentralized monetary funds operated by government agencies in order to meet national and social needs.
State funds are formed mainly through the withdrawal through taxation of part of the income from other subsystems of the financial system. The structure of public finance includes various separate links.
The leading role in the public finance system is played by inter-budgetary relations. They are formed at the federal, regional and local levels. Through inter-budgetary relations, the state forms a significant part of the national income.
The state not only generates financial resources, but also carries out expenses. These two processes are closely related and are expressed in such economic forms as government revenues and government spending.
The composition of public finances is shown in Fig. 1.1.
Rice. 1.1. Composition of public finance in the Russian Federation
The region's finances are an integral part of the country's financial system. Their content and socio-economic functions are determined by the same characteristics as for the country's finances as a whole, and their role differs only in the specifics of those management tasks that are implemented at a given - regional or local - level of the federal structure of the state, taking into account the existing and normatively fixed system of distribution of powers and responsibility of the Federation, its subjects and LSG institutions.
As a tool for the implementation of regional socio-economic policy, the region's finances should contribute to the development of production, employment growth, attraction of investments, including in those sectors that are priority from the point of view of current and long-term tasks of the functioning of the regional economic complex.
The region's finances in their social function must provide the necessary living resources for those groups of the population that, due to age or for other reasons, are not able to participate in the process of material production, but must have a guaranteed material income.
Currently, there is a noticeable trend towards strengthening the social functions of regional finance. This is due to the fact that in last years the main burden of financing social expenditures is shifted to the system of regional and local finance.
The main feature of the region's finances is that there are, as it were, three independent financial subsystems - the state one, including the subject of the Russian Federation itself; municipalities constitutionally independent from the state, as well as individual legal and individuals, first of all, business entities. The first two subsystems traditionally belong to the category of centralized finance (budget system and centralized off-budget funds); the third subsystem belongs to the category of decentralized finance.
The finances of private legal entities and individuals, of course, are not in the direct jurisdiction of regional or local authorities the authorities, however, to a large extent are also an object of management, an object of regional financial policy through taxation instruments, budget financing social spheres, financing of regional and municipal orders.
Thus, since ultimately all the financial subsystems of the region are located on the same territory and proceed from the interests of the same inhabitants of the region, such a division, which is natural for the conditions of a multi-structured market economy, should not prevent the consolidated participation of these subsystems in solving local social -economic problems. The only difference is in the principles of operation, the area of operation and the degree of responsibility of each of the subsystems. A single field of activity for all the finances of the region dictates a single criterion for assessing the management of regional finances - improving the economic and social situation in the region.
The most important link in the financial system of the Russian Federation is local finance, which provides local self-government bodies (LSGs) with funds to carry out the functions provided for by the Constitution of the Russian Federation and other legislative acts.
The essence of local finance lies in the fact that they cover that part of monetary relations regarding the distribution and redistribution of the value of the aggregate product created in society, which is accumulated in the prescribed amount in the hands of state authorities and local government to cover the costs necessary for the state and local authorities their functions.
Local finance includes local budget funds, state and municipal securities owned by local self-government bodies, and other financial resources.
In the Russian Federation, based on the federal structure, public finances include two levels: the finances of the federal authorities and the finances of the bodies of the constituent entities of the Russian Federation. Municipal finance is a grassroots level and is separated into an independent structural level. The formation and use of local finance is based on the principles of independence, state financial support and transparency.
The owner's rights in relation to local finances are exercised on behalf of the population of the municipal formation of local self-government bodies or directly by the population of the municipal formation in accordance with the charter of the municipal formation.
Local finance plays an important economic, social, political role and has three functions.
First of all, it is the reallocation function. Thanks to this function, funds are concentrated in the hands of local authorities and used to meet the needs of the population and the authorities of the municipality.
The regulatory function of local finance is associated with the formation and use of the budgetary fund. The budgetary fund is formed from taxes, loans, municipal property revenues.
The control function allows you to find out how timely and fully financial resources come to the disposal of local authorities, how the proportions actually add up during distribution budget funds whether they are being used effectively.
Formation of the main volume financial resources government bodies and LSGs are carried out through the mobilization of state and municipal revenues.
State revenues are the financial relations of the state with individuals and legal entities regarding the formation of centralized funds of funds.
The financial resources available to state-owned enterprises are decentralized funds.
In the composition of centralized state revenues, the leading place is occupied by budget revenues, due to which the solution of the main state socio-economic problems is mainly ensured.
In addition to the budget, the centralized state revenues include financial resources of state extra-budgetary funds.
The main source of the formation of state revenues is the national income, in the event of an emergency - a part of the national wealth.
National income and part of the national wealth represent the internal sources of government revenue. External sources of government revenues are understood as the national income and, in exceptional cases, the national wealth of another country.
The main tasks of the state revenue system are both fiscal and economic tasks in general.
Municipal income - funds credited in accordance with the legislation of public authorities and municipal legal acts representative bodies local self-government to the budgets of local self-government bodies and municipal extra-budgetary funds.
At the same time, in the Russian Federation, as in many other states, the formation of municipal off-budget funds is prohibited, therefore, municipal revenues include only the revenues of the local self-government budgets.
In the Russian Federation, state and municipal revenues are generated by mobilizing tax and non-tax revenues, as well as gratuitous receipts. In conditions market economy the formation of the predominant part of state and municipal financial resources is provided with the help of taxes.
The use of financial resources of public authorities and LSG is carried out in the form of state and municipal expenditures.
Government expenditures - financial relations of the state, due to the use of centralized and decentralized state revenues. Public expenditures are understood as direct expenditures of the state, which it carries out through the system of budgetary and extra-budgetary funds, as well as state enterprises, institutions and organizations.
The main functions of public finance in market conditions include:
1. Development, adoption, implementation and improvement of legislative acts that form the institutional foundations of the market economy.
2. Maintaining macroeconomic and socio-political stability, effective regulation and industrial policy. On the basis of a well-thought-out system of regulation, the state is able to actively influence the nature and results of market activity in the interests of society as a whole. Most economically developed countries in the early stages of development used different ways stimulating market development. Subsidies were used for strategic development directions, assistance to infrastructure development, various forms of export promotion and protection of the internal market.
3. Funding for basic social services, support for vulnerable groups of the population. State bodies the authorities largely insure citizens against the threat of their economic security... This can be done through retirement benefits, medical and social insurance.
4. Regulation of integration into world economy taking into account the protection of national interests. With the development of international trade, countries are increasingly involved in world economic processes. This is due to the emergence of new information systems, the desire of highly developed countries to use their advantages.
5. Implementation of environmental protection measures. The ways and methods of implementing these functions for different states may be different and depend on the specific situation: the level of development of the country, the stage of its economic development.
Municipal expenditures are funds allocated from the budgets of local self-government bodies and municipal extra-budgetary funds to address issues of local importance.
Taking into account the fact that in the Russian Federation the formation of municipal off-budget funds is not allowed, only the expenditures of the local self-government budgets are allocated in the composition of municipal expenses.
State expenditures are intended to meet the needs of society in the development of the economy and social sphere, government, strengthening its defense capability and national security, etc. In this case, specific areas government spending determined by various functions (economic, social, managerial, defense, political) performed by the state. At different stages of the development of the state, the tasks facing it do not remain unchanged; accordingly, the volume and structure of government spending in specific areas change.
In turn, the need for municipal expenses is due to the satisfaction of the needs of citizens associated with the place of direct residence (the content of municipal housing stock, public transport services, landscaping, public order protection, municipal administration, etc.). The variety of types of municipal expenses depends on the functions of local self-government bodies; the level of socio-economic development of the municipality; tasks solved by local self-government bodies at one or another stage of development.
A special place in the financial system of any state belongs to state and municipal finance.
State and municipal finances are monetary relations that arise in the course of the formation and use of financial resources of public authorities and local governments.
appointment Traditionally, the need for state and municipal
public finance is conditioned by the satisfaction of public
and municipal needs in the course of implementation by state bodies
finances by the authorities and local governments assigned
authority on them. State and municipal finances ensure the fulfillment of the obligations of the state and municipalities in the field of national security, defense, state and municipal administration, social protection of citizens, etc. in groups; stimulation of investment and innovation processes. The scale of state and municipal finances testifies to the degree of influence of state authorities and local governments on socio-economic development.
In the overseas economic theory the purpose of state and municipal finance is associated with ensuring the functioning of the public sector of the economy and adjusting the influence market mechanism resource allocation. The state and municipalities are considered not so much as the subjects of power influencing the participants of social reproduction, but as the subjects of economic activity carrying out the production, distribution and provision of public goods. State and municipal finances are aimed at the reproduction of public goods that have a collective form of consumption, in which: the use of the good by one person does not exclude the possibility of its consumption by others; an increase in the number of consumers does not diminish the usefulness of the good; there is no right to
the dividend to choose the volume of consumption of the good; the availability of goods to all consumers is ensured without additional costs. Market production of these goods is ineffective. This determines the predominant role of the state and municipalities and, accordingly, state and municipal finances in ensuring the reproduction of public goods. The scale of state and municipal finance depends on the volume of goods provided on a non-market basis, as well as the level of participation of the state and municipalities in regulating the effect of market distribution of goods.
The organization of state and municipal finance is aimed at creating conditions for the effective and full implementation of their functions by public authorities and local authorities. In this regard, the main tasks of organizing state and municipal finances are: optimization of the proportions of delineation of financial resources between public authorities and local authorities in accordance with the powers assigned to them; endowing public authorities and local self-government bodies with financial rights that allow them to actively influence socio-economic development; stimulation of public authorities and local self-government bodies to carry out investment, institutional, social transformations; increasing the responsibility of public authorities and local governments for the efficiency and effectiveness of state and municipal finance management.
In states with developed market economies, the organization of state and municipal finances is carried out in accordance with the principle of independence of state authorities and local authorities in the management of state and municipal finances within the established powers; the principle of openness and transparency, providing for openness, reliability and completeness of information about state and municipal financial resources; the principle of legality, which presupposes normative legal regulation of the process of formation and use of financial resources of state authorities and local self-government bodies; the principle of efficient use of state and municipal financial resources.
Forms of organization Formation and use of financial resources of bodies
state government and local government
and municipal is carried out in the form of various funds of funds:
financial resources of budgets and extrabudgetary funds. The budget is the form
the formation and use of financial resources of public authorities and local governments, directed by them to meet the diverse needs of society. Off-budget funds are a form of formation and use of financial resources of state authorities and local authorities, providing for the targeted direction of funds to finance certain needs of society.
Formed in the form of budgets and off-budget funds, state and municipal financial resources are revenues, receipts and monetary savings,
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at the disposal of public authorities and local self-government bodies and intended to resolve issues within their competence.
The sources of public financial resources are gross domestic product, receipts from externally economic activity, part of the national wealth (for example, income from the sale of land, intangible assets, confiscated or ownerless property, etc.). In the event of an emergency (natural disasters, armed conflicts and military operations, etc.), during a period of economic instability, part of the national wealth can act as a source of state financial resources when selling gold reserves, foreign exchange reserves and others. In turn, the sources of municipal financial resources are gross regional product, as well as part of the national wealth located or converted into municipal property.
state Formation of the main volume of financial resources of the organization
and municipal new state authorities and local governments
income is carried out through the mobilization of state
and municipal revenues. They are the material embodiment of economic relations arising in the course of the distribution of gross domestic product, receipts from foreign economic activity and part of the national wealth in order to form funds of financial resources of state authorities and local governments.
State and municipal revenues represent monetary funds received by the budgets of state authorities and local self-government bodies, as well as state and municipal extra-budgetary funds on a gratuitous and irrevocable basis.
At the same time, monetary funds credited to the budgets of state authorities and local self-government bodies represent budget revenues; monetary funds entering state and municipal off-budget funds are the income of these funds.
Thus, government revenues consist of revenues of the budgets of government bodies and revenues of state extra-budgetary funds, and budget revenues occupy the main place in the composition of government revenues. The composition of government revenues is shown in Fig. 5.1.
In the Russian Federation, as in many other states, the formation of municipal off-budget funds is prohibited, therefore, municipal revenues include only revenues of the budgets of local governments.
The types of state and municipal revenues are diverse. Depending on the method of mobilization, the following are distinguished: income from collection mandatory payments, which include income from taxes, duties, license and other fees, social insurance contributions, fines and penalties, etc .; income from the economic activity of the state and municipalities, including income from the use and sale of state and municipal property, the provision of state and municipal services on a paid basis; voluntary receipts from public authorities and local authorities of another level, governments foreign states, international financial institutions as well as individuals and organizations. This income grouping is recommended by the International Monetary Fund.
In the Russian Federation and some other states, a different grouping of income is used, depending on their economic content. Within the framework of this grouping, the state and municipal revenues are distinguished: tax revenues, which include revenues from the payment of taxes and monetary collection on them, as well as some types of duties and fees; non-tax revenues, combining, along with revenues from the economic activity of the state and municipalities, revenues from the collection of duties, fees and other mandatory payments not related to tax revenues; gratuitous receipts from other budgets, from subjects of international law, organizations and citizens.
In the Russian Federation, revenue from the payment of state duties is classified as tax revenue, while revenue from customs and patent duties is non-taxable.
Typically, the revenue from the collection of user fees natural resources are included in tax revenues, and from the collection of license fees, fees for the rendered state and municipal services are referred to as non-tax revenues. Meanwhile, other approaches are not excluded. For example, in accordance with the Budget Code of the Republic of Kazakhstan, all types of fees (including registration fees, for the issuance of permits, travel on paid state roads and others) are tax revenues of budgets.
Sometimes the decision on whether a payment is classified as tax or non-tax revenues depends on the action of a political factor, since it affects the assessment of the level of the tax burden in the state.
Along with state and municipal revenues, the formation of the budgets of state authorities and local self-government bodies, as well as state and municipal extra-budgetary funds, is carried out at the expense of receipts from sources of financing their deficit. They include funds attracted on terms of repayment and repayment in the form of loans and credits, as well as funds from the sale of certain types of state and municipal property.
Allocate receipts from internal and external sources financing the deficit. The criterion for this grouping is the currency in which the funds are raised, or the sign of the creditors' residency.
w In the Russian Federation, in accordance with federal legislation, receipts from internal sources of financing the deficit include receipts in the currency of the Russian Federation, receipts from external sources - in foreign currency.
According to the methodology of the International Monetary Fund, receipts from internal sources of financing the deficit form the funds attracted from residents; receipts from external sources - from non-residents.
Proceeds from sources of financing the deficit are used to ensure a balance between budgets and extra-budgetary funds, as well as to pay off state and municipal debt.
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Cash savings state authorities and local self-government bodies are formed at the expense of income and receipts of the current financial year, not used in the course of execution of budgets and extra-budgetary funds and intended for expenditures in subsequent periods. Cash savings are manifested in the form of balances in the accounts of budgets and extra-budgetary funds at the beginning of the financial year, recorded after the completion of operations of the previous year. The balances of funds can be used to finance temporary cash gaps and deficits in budgets and extra-budgetary funds, be placed in debentures.
A special position in the composition of monetary savings belongs to funds of stabilization funds. They are formed in order to transform into money capital certain types state revenues and ensure the balance of budgets and the fulfillment of state obligations in the face of reduced revenues during periods of recession, the unfavorable influence of the external economic (seasonal) factor. These funds include: in the Russian Federation - the Reserve Fund, the National Welfare Fund, the reserve funds of the constituent entities of the Russian Federation; in other countries - the National Fund of the Republic of Kazakhstan, the National Welfare Fund of Kuwait, etc.
Their formation is carried out at the expense of income associated with the extraction and export of certain types of natural resources, as well as other incomes that have a significant growth in a favorable economic environment.
In the Russian Federation, the formation of the Reserve Fund, the National Welfare Fund is ensured by income from the tax on the extraction of minerals in the form of hydrocarbons, as well as export customs duties on oil, gas and goods produced from oil. The formation of the reserve funds of the constituent entities of the Russian Federation is carried out in accordance with the laws of these constituent entities of the Russian Federation.
The National Fund of the Republic of Kazakhstan receives income from taxes paid by organizations of the oil sector (corporate income tax, excess profit tax, etc.), as well as from the privatization of state property in the mining and processing industries.
The funds of stabilization funds can be placed in financial assets provided for by law, including foreign currency, debt obligations of foreign states and international financial organizations, bank deposits, etc. This provides investment income from the management of funds. With a decrease in government revenues, an increase in the budget deficit and an increase in the debt of public authorities on debt obligations, the funds of the funds are directed as part of the sources of financing the budget deficit to ensure their balance.
state Use of state and municipal financial
and municipal resources occurs through the implementation of state
expenses and municipal expenses. They are material
a significant embodiment of economic relations arising in the process of using funds of financial resources of state authorities and local governments in order to meet social needs.
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State and municipal expenditures represent monetary funds allocated from the budgets of state authorities and local self-government bodies, as well as state and municipal extra-budgetary funds in order to exercise state powers and resolve issues of local importance.
Funds allocated from the budgets of public authorities and local authorities represent budget expenditures; monetary funds transferred from state and municipal extra-budgetary funds are expenditures of these funds.
Thus, government expenditures consist of the expenditures of the budgets of government bodies and the expenditures of state extra-budgetary funds, while the bulk of government expenditures is carried out at the expense of the budgets. The composition of government spending is shown in Fig. 5.5.
Taking into account the fact that in the Russian Federation, as in many other states, the formation of municipal off-budget funds is not allowed, only expenditures of the budgets of local self-government bodies are allocated in the composition of municipal expenses.
The variety of types of state and municipal expenditures provides for the need to group them. Depending on the functional purpose in the composition of state and municipal expenditures, they distinguish between the costs of ensuring the activities of state and municipal bodies, defense, organizing public order and security, supporting the economy and scientific and technological progress, housing and communal services, environmental protection, health care, education, culture and social protection... Thus, the functional composition reflects the distribution of costs in the main areas of activity of public authorities.
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sti and local governments and allows you to reveal the role of the state and municipalities in the management of the economy and social sphere.
This grouping of expenses is recommended by the International Monetary Fund. It has found wide application in world practice and is formed taking into account the specifics of state and municipal government. Differences in the functional grouping of state and municipal expenditures in different states are manifested in the detailing of the directions for the use of funds.
In the United States, the functional composition of government expenditures, along with social security spending, includes expenditures on payments and services to veterans. In Sweden, along with public administration expenditures, the expenditures for public financial management and the expenditures for operating activities tax service; in addition, they share the costs of material support for sickness and disability, old age, unemployment, as well as material support for family and childhood, immigrants and refugees.
In the Russian Federation, the functional grouping of state and municipal expenditures includes expenditures on general state issues, national defense, national security and law enforcement, national economy, housing and communal services, environmental protection, education, culture and cinematography, health care, social policy, physical culture and sports, mass media, servicing the state and municipal debt, interbudgetary transfers the budgets of the constituent entities of the Russian Federation and municipalities of a general nature.
Depending on the economic content, state and municipal expenditures are distinguished: current expenditures, which include expenditures on the maintenance of state and municipal civil and military employees; social security contributions; payment social benefits; purchase of consumables, uniforms and soft equipment; purchase of services; servicing state and municipal debt obligations; gratuitous transfers for current needs to organizations, state authorities and local governments, governments of foreign states; capital expenditures including the costs of capital investment to fixed assets; creation of state and municipal reserves; acquisition of land and intangible assets; gratuitous transfers of innovative and investment purposes to organizations, state authorities and local governments, governments of foreign states. The grouping of state and municipal expenditures depending on the economic content makes it possible to reflect their influence on the structure of public consumption and accumulation.
Public finance management is carried out by special bodies using special techniques and methods, incl. a variety of incentives and sanctions. The art of management consists in choosing the most effective method from among the available ones or creating conditions for the rational use of the applied methods in order to the fastest solution the task at hand. The controls can be conditionally divided into two groups:
a) bodies of general (or legislative) financial management;
b) bodies of operational management of finances.
Public financial management in economically developed countries regulated by legislative bodies through the adoption of financial legislation, approval state budget and a report on its implementation, the introduction or abolition of certain types of taxes, approval limit size public debt and etc.
At the national level, the management apparatus of the financial system includes the following bodies:
Specialized committees for the budget, taxes, banks and finance of the State Duma and the Federation Council;
The Accounts Chamber of the Russian Federation;
The Ministry of Finance of the Russian Federation and its local authorities;
central bank RF;
federal Service tax police of the Russian Federation;
State Customs Committee of the Russian Federation;
Federal Commission by market valuable papers;
Ministry state property;
Executive directorates of off-budget social funds.
The financial management bodies, which are the totality of all organizational structures in charge of financial management, include public authorities, local governments and other participants. budget process(at the macro level) and financial management (various organizations).
When considering the structure of financial management at the federal level, legislative and executive bodies of state power, local government bodies are distinguished.
The President of the Russian Federation determines the goals and objectives of financial policy, expressing them in an annual message to the Federal Assembly, signs laws, submits draft financial legislation for consideration.
The government of the Russian Federation is responsible for the development and implementation budgetary policy RF, preparation and implementation of the budget, development of laws on financial issues, etc.
The Federal Assembly of the Russian Federation considers and approves the annual law on the federal budget and the report on its implementation, financial legislative acts. It also hears the annual report of the Government of the Russian Federation on budget execution and forms the Accounts Chamber, which is the controlling body of the legislative branch.
The Ministry of Finance currently has the following tasks: it develops a single state financial, credit, monetary and tax policy, audit policy, accounting, extraction and processing of precious metals.
Functions of the RF Ministry of Finance:
1.development of draft laws on the development of the budgetary system, the basics of the budgetary process, the delineation of budgetary powers between federal authorities, subjects and local governments
2. development of laws on taxation;
3.development of the law on the budget and organization of its execution, preparation of reports
4.coordination of budgetary and monetary policy
5. management of the state debt of the Russian Federation and the issue of government securities, as well as reporting on them.
The Ministry of Finance carries out its activities, including through F. Treasury, which carries out short-term planning of budget execution, takes into account funds federal budget, controls the activities of commercial banks on the timely execution of orders of taxpayers, and also distributes taxes between budgets of various levels. Also upon receipt financial aid from the federal budget, regional and local budgets are also executed through the federal treasury.
Also, when receiving financial assistance from the federal budget, regional and local budgets are also executed through the federal treasury.
At the regional level, the highest authorities approve laws on the introduction of regional taxes, the budget of the subject and its implementation, etc. They also have the right to initiate legislation under federal laws in the field of finance. constituent entities of the Russian Federation independently develop the financial policy of the region, draw up a draft budget and reporting on its implementation.
Local financial management. The executive bodies of local self-government develop the municipal financial policy, draw up and execute the budget.
The concept and goals of financial management of commercial organizations.
Financial management commercial organization is the process of creating a financial mechanism for organizing its financial relations with other entities. It includes the following main elements:
-financial planning;
-operative management;
-financial control.
1. Financial planning. When developing financial plans for a commercial organization, the planned costs of the activities being carried out are compared with the available opportunities, the directions for effective capital investment are determined; identification of on-farm reserves for increasing financial resources; optimization of financial relationships with counterparties, the state, etc .; control over the financial condition of the enterprise is carried out. Need financial planning a commercial organization can be caused not only by an internal need for effective management of financial resources, but also by an external one - by the desire of creditors and investors to have information about the profitability of upcoming investments.
2. Operational management. Of great importance for the financial management of a commercial organization is the analysis of the execution of financial plans and forecasts. However, not always a prerequisite is the compliance of the planned financial indicators with the actual ones. The greatest importance for effective management is to identify the reasons for deviations from the planned (forecast) indicators. Data on the actual execution of financial plans are analyzed not only by special divisions of the organization, but also by the governing bodies of a commercial organization.
3. Financial control. State financial control over commercial organizations of non-state forms of ownership is limited to issues of execution tax liabilities, as well as the use of budgetary funds, if a commercial organization receives such funds within state aid... Internal financial control is of great importance for effective financial management of a commercial organization, as well as audit control.
Thus, the financial management of a commercial organization includes controls similar to other parts of the financial system, but at the same time there is a specificity of financial planning, operational management and organization of financial control.
Content of state and municipal finance
A special position in the financial system belongs to state and municipal (local) finances, which is due to their specific purpose - to provide state and local authorities with the funds necessary to perform the functions assigned to them.
State and municipal finance- ϶ᴛᴏ monetary relations arising in the distribution process in connection with the formation of funds from public authorities and local governments and their use to meet the social needs of citizens, regulation of the economy, financing of national defense and law enforcement, management and other expenses of the state and municipalities ...
With the help of state and municipal finances, public authorities and local self-government bodies regulate social processes, influence the development of priority sectors of the economy, smooth out differences in the level of socio-economic development of individual territories of the country, etc.
The organization of state and municipal finance is influenced by a number of factors.
First of all, the form of government. It should be said that unitary states as a whole are characterized by a higher degree of concentration of financial resources at the disposal of central government bodies as compared to federal states.
It is worth noting that the basis of the financial resources of the authorities of the administrative-territorial units of unitary states are deductions from regulatory revenues and funds of financial assistance from central government bodies. In the context of a federal form of state structure, built on the principle of differentiating the subjects of jurisdiction and powers of the state authorities of the federation and the subjects of the federation, own revenues become predominant in the structure of financial resources of the subjects of the federation. With ϶ᴛᴏm, the scale of interbudgetary reallocation of funds is reduced.
Secondly, the peculiarities of the administrative-territorial structure of the state, which will be in the functioning of some subjects of the federation as part of other subjects of the federation or in the formation of municipalities of different territorial levels.
According to the Constitution of the Russian Federation, the regions (regions) and their constituent autonomous districts will be equal subjects of the Russian Federation. Accordingly, the formation of financial resources of such territories (regions) and autonomous regions is carried out under the conditions of delimitation of powers not only with the federal center, but also between the constituent entities of the Russian Federation. At the same time, the list of incomes and the proportion of their crediting to the budgets of the indicated constituent entities of the Russian Federation can be regulated by federal laws and treaties (agreements) between public authorities autonomous region and state authorities of the region or region.
Federal Law No. 131-FZ of 06.10.2003 "On the General Principles of Organization of Local Self-Government in the Russian Federation", which came into force on January 1, 2006, retains the right to exercise local self-government simultaneously on the territory of two municipalities - municipal districts and their territory of settlements. It is worth saying that the powers of local self-government bodies to mobilize and use their own financial resources are implemented in the context of inter-municipal delineation of issues of local importance and the sources of their financial support. Federal legislation fixes the composition and level of income assigned to the budgets of each of the types of municipalities.
Third, the special status of certain territorial entities. Giving a territorial entity a special status will be an effective mechanism for taking into account the geopolitical, ethnographic, demographic and other characteristics of such an entity, developed by international practice.
So, some unitary states (Italy, Spain, etc.) are included in the composition of the autonomy, the authorities of which have broader powers in comparison with the authorities of other administrative-territorial units of these states. It should be said that for the implementation of such powers, autonomies are endowed with additional financial resources and, of course, have greater financial independence. International practice also allows us to give examples of federal states that include, along with the subjects of the federation, territorial entities of a different status (in the USA - federal district, associated territory, in India - union territories, etc.) The heterogeneous status of territorial entities that are part of the federation determines the different scope of powers of their authorities in the formation and use of financial resources.
The principle of equality of the subjects of the Russian Federation, enshrined in Art. 5 of the Constitution of the Russian Federation, does not provide for differences in the volume and composition of powers vested in the bodies of state power of republics, territories, regions, autonomous okrugs, autonomous region, cities of federal significance. In accordance with federal legislation for all constituent entities of the Russian Federation, uniform standards for deductions from federal taxes and fees to their budgets and a unified methodology for calculating financial assistance.
At the same time, for municipalities, the legislation of the Russian Federation provides for the possibility of establishing a special mode of operation. Giving a municipality a special status is due to: concentration within the boundaries of the municipality of objects state security, for whom a special regime of functioning and protection of state secrets has been established (the status of a closed administrative-territorial entity - hereinafter referred to as ZATO); specialization of the city-forming organizations of the municipal formation in scientific, scientific and technical and innovation activities within the framework of a research and production complex (status of a science city)
It should be noted that the special status provides for a greater scope of powers of local self-government bodies and ϲᴏᴏᴛʙᴇᴛϲᴛʙenno additional sources their financial security. In particular, the obligations imposed on the local self-government bodies of the ZATO in connection with the special living conditions of citizens (for example, resettlement to a new place of residence of citizens who have lost their official connection with individual ZATO organizations; organization of access control to the territory of the ZATO, etc.) imply the expansion of powers local governments to mobilize financial resources. Federal legislation ϶ᴛᴏ is achieved by increasing the share of tax revenues credited to the budgets of ZATOs, establishing the right of local self-government ZATOs to ensure the balance of their budgets through financial assistance from federal government bodies.
The formation and use of financial resources of state authorities and local self-government is carried out in the form of various funds of funds: budgets of different levels of the country's budget system and off-budget funds.
Budgets are formed by public authorities of different levels and local governments to provide financial support for all tasks and functions assigned to them. With the help of budget funds, the regulation of economic and social processes, the development of scientific and technological progress, the formation of investment potential, etc. directed by them to meet the diverse needs of society.
The formation of extra-budgetary funds is associated with the emergence of a need for state authorities and local governments in significant amounts of financial resources for a number of important socio-economic events. Extra-budgetary funds make it possible to finance such events from special sources used by intended purpose... At the expense of extrabudgetary funds, social payments(pensions, benefits, etc.), various environmental measures are financed, research and development projects are being implemented, etc. Based on the above, we come to the conclusion that extra-budgetary funds act as a form of education and use of financial resources of bodies state power and local self-government, providing for the targeted direction of funds to finance individual social, economic, environmental needs of society.
Formed in the form of budgets and extra-budgetary funds, the financial resources of state authorities and local self-government - ϶ᴛᴏ income, receipts and monetary savings that are in state and municipal ownership and intended for the solution by state authorities and local self-government of issues within their competence.
The formation of the bulk of the financial resources of state authorities and local self-government is carried out through the mobilization of state and municipal revenues.
Government revenues represent monetary funds credited in accordance with the current legislation to the budgets of public authorities at different levels, as well as to state extra-budgetary funds.
When ϶ᴛᴏm, the monetary funds credited to the budgets of the state authorities of the ϲᴏᴏᴛʙᴇᴛϲᴛʙm levels represent budget revenues; the monetary funds entering the state off-budget funds will be the income of these funds. Based on the foregoing, we come to the conclusion that government revenues consist of budget revenues of government bodies of different levels and revenues of state extra-budgetary funds, and budget revenues occupy the main place in the composition of government revenues.
Municipal revenue- monetary funds credited in accordance with the legislation of state authorities and decisions of local self-government bodies to the budgets of municipalities.
Mobilization of revenues to budgets and state extra-budgetary funds is carried out in the form of tax and non-tax revenues, as well as gratuitous transfers. In a market economy, taxes are used to mobilize the majority of state and municipal financial resources.
Financing of budget expenditures in terms of the excess of their volume over the amount of income is carried out at the expense of receipts from sources of financing the budget deficit. Financing of the budget deficit of public authorities is ensured by attracting funds in the form of loans, carried out by placing government securities, and loans received from credit institutions; obtaining budget loans and budget loans from budgets of other levels; proceeds from the sale of property located in state property and other RF financing the budget deficit of state extra-budgetary funds is provided only by changing the balances of funds on the accounts for accounting for the budgets of the extra-budgetary funds.
In order to balance local budgets local authorities carry out fundraising on the internal financial market(in the forms of placement of municipal securities, budget loans and budget loans from budgets of other levels, loans of credit institutions) and paid alienation of municipal property (through its sale) The right of local governments to external borrowings is not provided for by the Budget Code of the Russian Federation (Art. )
The monetary savings of state authorities and local self-government bodies are formed from the income and receipts of the current financial year, which were not used in the course of the execution of the current budget or the state non-budgetary fund and intended to finance expenses in subsequent periods. The monetary savings of state authorities and local governments will be in the form of balances in the accounts of budgets or state extra-budgetary funds at the beginning of the financial year, accounted for after the completion of transactions on accepted monetary obligations last year.
It is worth noting that the balances of funds are not subject to withdrawal and can be used by public authorities and local governments to cover intra-annual cash gaps during the next year, to be used to finance the budget deficit or state extra-budgetary fund in the next financial year placed in debt obligations.
The sources of the formation of state financial resources will be the gross domestic product, receipts from foreign economic activity, part of the national wealth (for example, receipts from the sale of land, receipts from the sale of intangible assets, receipts from the sale of confiscated or ownerless property, etc.) In the event of an emergency (natural disasters, armed conflicts and hostilities, etc.), during a period of economic instability, part of the national wealth can act as a source of state financial resources when selling gold reserves, foreign exchange reserves, etc. At the same time, sources of financial resources for local governments will be the gross regional product, as well as part of the national wealth that is or is converted into municipal property.
The use of financial resources of state authorities and local self-government is carried out in the form of state and municipal expenses.
Government spending- ϶ᴛᴏ funds allocated by state authorities from the budgets of the current levels and state extra-budgetary funds for the financial support of the tasks and functions assigned to them.
Funds allocated from the budgets of government bodies at the highest levels represent budget expenditures; the funds transferred from the state extra-budgetary funds will be the expenditures of these funds. Based on the foregoing, we come to the conclusion that government expenditures consist of budget expenditures of government bodies of different levels and expenditures of state extra-budgetary funds, while the bulk of government expenditures is carried out at the expense of budgets of different levels.
Municipal expenses- ϶ᴛᴏ funds allocated by local governments from the budgets of municipalities to address issues of local importance.
Public expenditures are intended to meet the needs of society in the development of the economy and social sphere, governing the state, strengthening its defense capability and national security, etc. In this case, specific areas of public spending are determined by various functions (economic, social, managerial, defense, political) performed by the state. At different stages of the development of the state, the tasks facing it do not remain unchanged, but the volume and structure of government spending in specific areas change.
At the same time, the need for municipal expenses is due to the satisfaction of the needs of citizens associated with the place of direct residence (maintenance of the municipal housing stock, transport services for the population, landscaping, public order, management of the municipal formation, etc.) The variety of types of municipal expenses depends on the functions of local authorities. self-government; the level of socio-economic development of the municipality; tasks solved by local governments at a particular stage of development.
Organization of public finances at the federal and regional levels
Based on Art. 5 of the Constitution of the Russian Federation, state power in the Russian Federation is carried out on the basis of the delimitation of the subjects of jurisdiction and powers between the bodies of state power of the Russian Federation and the bodies of state power of the constituent entities of the Russian Federation, which is due to the federal form of state structure. Proceeding from ϶ᴛᴏgo in the Russian Federation in the composition of public finances it is possible to distinguish public finances at the federal level and public finances at the level of the constituent entities of the Russian Federation (regional level). level create conditions for the implementation of functions assigned to the state authorities of the constituent entities of the Russian Federation.
Public finance at the federal level consists of the federal budget and state extra-budgetary funds of the Russian Federation. Based on Art. 144 of the Budget Code of the Russian Federation, only the following social extra-budgetary funds have the status of state off-budget funds of the Russian Federation: Pension Fund of the Russian Federation; Social Insurance Fund of the Russian Federation; Federal Compulsory Health Insurance Fund.
Public finances at the regional level include the budgets of the constituent entities of the Russian Federation (regional budgets) and territorial state non-budgetary funds. The budgets of the constituent entities of the Russian Federation are presented different kinds budgets: republican budgets of republics, regional budgets of territories, regional budgets of regions, district budgets of autonomous districts, regional budget of an autonomous region, city budgets of cities of federal significance. Territorial compulsory health insurance funds are included in the territorial state extra-budgetary funds in accordance with the current legislation.
Based on the above, we come to the conclusion that the composition of public finances in Russia can be represented in the following form (Fig.11.1):
Figure No. 11.1. Composition of public finances in the Russian Federation
The federal budget will be the main financial base for the activities of the state authorities of the Russian Federation. It concentrates the bulk of the financial resources at the disposal of these bodies.
Federal budget- the form of education and spending of funds intended to ensure the tasks and functions assigned to the jurisdiction of the Russian Federation.
The formation of the federal budget is carried out through the mobilization of tax revenues, non-tax revenues, gratuitous transfers and other revenues.
The tax revenues of the federal budget include: federal taxes and fees credited to the federal budget in accordance with federal legislation; regional taxes and fees credited to the federal budget in accordance with federal legislation; penalties and fines for violation tax legislation on certain types of taxes and fees to be credited to the federal budget.
Non-tax revenues of the federal budget will be: revenues from the use of property in federal ownership, or from the activities of organizations under the jurisdiction of federal executive bodies; income from the sale of intangible assets credited to the federal budget; administrative fees and charges; penalties and funds received in compensation for damage caused to the Russian Federation; income from foreign economic activity; other non-tax income.
The federal budget may receive gratuitous transfers from state extra-budgetary funds of the Russian Federation, from various organizations (residents and non-residents), from the budgets of other levels of the budgetary system of the Russian Federation, and other gratuitous transfers.
Other federal budget revenues include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions of federal subordination; other incomes stipulated by the legislation of the Russian Federation.
In addition to different types revenues to the federal budget are credited with receipts from sources of financing the budget deficit, which, according to Art. 94 of the Budget Code of the Russian Federation are subdivided into receipts from internal sources and receipts from external sources of financing the federal budget deficit.
The receipts from internal sources of financing the federal budget deficit include: funds raised in the form of loans in the currency of the Russian Federation by placing government securities of the Russian Federation, and loans from credit institutions in the currency of the Russian Federation; proceeds from the sale of federal property; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation; receipts from the sale of state reserves; receipts from changes in the balances of funds on accounts for accounting for federal budget funds; receipts from other internal sources of financing the federal budget deficit.
Proceeds from external sources of financing the federal budget deficit will be: funds raised in the form of loans in foreign currency through the placement of government securities of the Russian Federation, and loans from foreign governments, foreign banks and firms, international financial organizations in foreign currency; receipts from other external sources of financing the federal budget deficit.
The funds received in the federal budget are directed to the implementation of expenses for the implementation of the powers of the state authorities of the Russian Federation on the subjects of the jurisdiction of the Russian Federation and the subjects of the joint jurisdiction of the Russian Federation and the constituent entities of the Russian Federation.
At the expense of the federal budget funds are provided: financing of the activities of the President of the Russian Federation, federal legislative, executive and judicial authorities; financing of the national defense and state security of the Russian Federation; governmental support business entities operating in priority sectors of the economy for the Russian Federation (capital-intensive, innovative, strategic); financing of activities government agencies producing social services of public consumption on a non-market basis; financing of international activities in general federal interests; elimination of the consequences of emergency situations and natural disasters on a federal scale; financial support of the constituent entities of the Russian Federation and municipalities of a special status; financing of elections and referendums of the Russian Federation; servicing the state debt of the Russian Federation; financing of other expenses for the implementation of the powers of the state authorities of the Russian Federation. Along with the federal budget, a significant amount of financial resources formed at the disposal of the state authorities of the Russian Federation is concentrated in the state off-budget funds of the Russian Federation (the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Fund of Compulsory Medical Insurance)
State extrabudgetary fund RF- a fund of funds formed outside the federal budget and intended for the implementation of the constitutional rights of citizens to pensions, social insurance, health care and medical care (Article 13 of the BC RF)
Incomes of state social extra-budgetary funds of the Russian Federation are formed from: compulsory payments established by the legislation of the Russian Federation (deductions from a single social tax, deductions from taxes for special tax regimes, various insurance premiums, etc.); federal budget funds; voluntary contributions from individuals and legal entities; income from the placement of temporary funds of funds; other incomes stipulated by the legislation of the Russian Federation.
The use of funds from state non-budgetary funds of the Russian Federation is carried out exclusively for the purposes determined by the legislation of the Russian Federation. According to the Budget Code of the Russian Federation, at the expense of the state social extra-budgetary funds of the Russian Federation, expenses related to the implementation of the constitutional rights of citizens to: social security by age are financed; social security due to illness, disability, in case of loss of a breadwinner, birth and upbringing of children and in other cases stipulated by the legislation of the Russian Federation on social security; health care and free medical care(Article 143 of the BC RF)
The bulk of the financial resources of the state authorities of the constituent entities of the Russian Federation are concentrated in regional budgets.
The budget of a constituent entity of the Russian Federation (regional budget) is a form of formation and expenditure of funds intended to ensure the tasks and functions referred to the jurisdiction of the constituent entity of the Russian Federation (Article 15 of the BC RF).
The revenues of the budgets of the constituent entities of the Russian Federation are formed at the expense of tax revenues, non-tax revenues, gratuitous transfers and other revenues.
The tax revenues of the budgets of the constituent entities of the Russian Federation will be: federal taxes and fees credited to the regional budget in accordance with federal legislation; regional taxes and fees paid to the regional budget in accordance with federal and regional legislation; local taxes and fees credited to the regional budget in accordance with federal legislation; penalties and fines collected for violation of tax legislation on certain types of taxes and fees to be credited to the regional budget.
The non-tax revenues of the budgets of the constituent entities of the Russian Federation include: income from the use of property owned by the constituent entities of the Russian Federation, or from the activities of organizations under the jurisdiction of the executive authorities of the constituent entities of the Russian Federation; income from the sale of intangible assets credited to the regional budget; administrative fees and charges; penalties and funds received in compensation for damage caused to a constituent entity of the Russian Federation; other non-tax income. The budgets of the constituent entities of the Russian Federation may receive gratuitous transfers from territorial state extra-budgetary funds, from various organizations (residents and non-residents), from the federal budget in the form of financial assistance, and other gratuitous transfers.
Other revenues of the budgets of the constituent entities of the Russian Federation include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions of regional subordination; other incomes stipulated by the legislation of the Russian Federation. In addition to income, the budgets of the constituent entities of the Russian Federation are credited in accordance with Art. 95 of the Budget Code of the Russian Federation, receipts from internal sources of financing the budget deficit of a constituent entity of the Russian Federation, which include: funds attracted in the form of loans carried out by placing government securities of a constituent entity of the Russian Federation, and loans from credit institutions in the currency of the Russian Federation; proceeds from the sale of property owned by a constituent entity of the Russian Federation; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation and territorial state extra-budgetary funds; receipts due to changes in the balances of funds on accounts for accounting for funds from the budget of a constituent entity of the Russian Federation; receipts from other internal sources of financing the budget deficit of the constituent entity of the Russian Federation.
The funds credited to the budgets of the constituent entities of the Russian Federation are directed to the implementation of expenses for the implementation of the powers of the state authorities of the constituent entities of the Russian Federation on the subjects of jurisdiction of the subjects of the Russian Federation and the subjects of the joint jurisdiction of the Russian Federation and the subjects of the Russian Federation.
At the expense of the budgets of the constituent entities of the Russian Federation, the following is provided: financing of the activities of the legislative, executive and judicial authorities of the constituent entities of the Russian Federation; state support of priority sectors of the economy for the region (mainly Agriculture, food and light industry); state support for suburban (rail, road, river) transport; the implementation of the constitutional right of citizens to compulsory general education, social protection, health protection and receiving free medical care in institutions that are state-owned by the constituent entities of the Russian Federation or under the jurisdiction of state authorities of the constituent entities of the Russian Federation; maintenance of historical monuments and objects of cultural heritage, which are state property of the constituent entities of the Russian Federation; financial support for municipalities on the territory of a given constituent entity of the Russian Federation; financing of elections and referenda of the constituent entities of the Russian Federation; servicing the state debt of the constituent entities of the Russian Federation; financing of other expenses related to the implementation of the powers of state authorities of the constituent entities of the Russian Federation.
In addition to the budgets of the constituent entities of the Russian Federation, the financial resources formed at the disposal of the state authorities of the constituent entities of the Russian Federation are concentrated in the territorial state non-budgetary funds. As already noted, these include the territorial compulsory health insurance funds.
Note that a territorial state off-budget fund is a fund of funds formed outside the budgets of the constituent entities of the Russian Federation and intended for the implementation of individual constitutional rights of citizens (in particular, for health care and generous assistance) (Article 13 of the BC RF)
Incomes of territorial compulsory health insurance funds are formed from: deductions from the unified social tax, deductions from taxes under special tax regimes, receipts from territorial budgets in the form of insurance premiums for compulsory health insurance the non-working population, receipts from state non-budgetary funds of the Russian Federation, income from the placement of temporarily free funds of funds, etc.
The bulk of the expenses of these funds is directed to the implementation of territorial programs compulsory medical insurance of the constituent entities of the Russian Federation. With the exception of the above, the territorial compulsory health insurance funds are used to finance certain health care activities (for example, within the framework of various targeted programs), as well as the activities of the funds.
Do not forget that it will be important to say that there are certain interrelationships between budgets and extra-budgetary funds at the federal and regional levels, among which the following can be distinguished:
- between the federal budget and the budgets of the constituent entities of the Russian Federation. For example, funds are transferred from the federal budget to the budgets of the constituent entities of the Russian Federation in the order of financial assistance (subsidies for leveling the level of budgetary provision of the constituent entities of the Russian Federation; subsidies for partial reimbursement of expenses for providing subsidies for housing payments to the population and utilities; subsidies for the reform and improvement of regional finances, development social infrastructure improving efficiency budget expenditures, support economic reforms and etc.); funds are transferred from the budgets of the constituent entities of the Russian Federation to the federal budget to repay previously granted budget loans to cover intra-annual cash gaps;
- between the federal budget and state off-budget funds of the Russian Federation. So, from the federal budget to the Pension Fund of the Russian Federation, the funds of the unified social tax are transferred to pay the basic part of the labor pension, subventions are sent to the Social Insurance Fund of the Russian Federation to pay compensation and benefits to citizens affected by the Chernobyl disaster, nuclear tests at the Semipalatinsk test site, etc. ᴛᴏm the federal budget may receive gratuitous transfers from state non-budgetary funds of the Russian Federation. Except for the above, the temporarily free funds of the Social Insurance Fund of the Russian Federation, Federal Fund compulsory health insurance can be invested in liquid government securities of the Russian Federation, funds from the placement of which go to the federal budget;
- between the budgets of the constituent entities of the Russian Federation and territorial state off-budget funds. Funds are transferred from the budgets of the constituent entities of the Russian Federation to the territorial compulsory medical insurance funds in the form of insurance premiums for compulsory medical insurance of the unemployed population. It should be noted that the territorial compulsory health insurance funds can temporarily invest free funds in liquid state securities of the constituent entities of the Russian Federation, the funds from the placement of which go to the budgets of the constituent entities of the Russian Federation;
- between state off-budget funds of the Russian Federation and territorial state off-budget funds. For example, funds are transferred from the Federal Compulsory Health Insurance Fund to the territorial compulsory health insurance funds to equalize the financial conditions of their activities within the framework of the basic compulsory health insurance program; from The Pension Fund RF territorial compulsory medical insurance funds receive funds for compulsory medical insurance of non-working pensioners.
Features of the organization of municipal finance
The main task of organizing municipal finance is to provide local governments with financial resources in an amount sufficient to independently resolve issues of local importance. Based on Art. 9 of the European Charter of Local Self-Government, local governments have the right to have sufficient financial resources of their own, which they can freely dispose of in the exercise of their functions. The financial resources of local self-government bodies should be commensurate with their powers. Formation of a stable financial base bodies of local self-government will be the most important direction of the ongoing reform of local self-government in the Russian Federation.
The ownership of financial resources to local government bodies exercising the powers of the municipal owner is one of the substantive features of municipal finance. The world practice of the administrative-territorial structure is rich in examples when representative bodies of local self-government are not created in every local community. It is pertinent to note that the experience of municipal construction in the Russian Federation testifies: in the territories of administrative-territorial units of the local level (in particular, individual districts), there are territorial bodies of state power, which are not recognized as subjects of budgetary legal relations and, of course, do not have budgetary powers and do not form their own budgetary resources. The implementation of the functions assigned to them is carried out at the expense of the state financial resources of the constituent entities of the Russian Federation. At the expense of the financial resources of local government bodies, according to an estimate of income and expenses, the activities of governing bodies of individual settlements that are not municipalities and are part of a municipal formation are ensured. Based on the foregoing, we come to the conclusion that the organization of municipal finance is "tied" to municipalities, within the boundaries of which local self-government is carried out.
Foreign experience testifies to the diversity of approaches to determining the territorial organization of local self-government, when the rights of local self-government are vested in various territorial entities (cities, towns, rural settlements, communities, etc.; districts, districts, cantons, etc.). Federal law dated 06.10.2003 No. 131-FZ "On the general principles of organizing local self-government in the Russian Federation", which comes into force on January 1, 2005, municipalities are settlements, urban districts, municipal districts and inner-city territories of federal cities. At the same time, the list of territorial units within which local self-government is implemented, and the types of municipalities is defined as exhaustive and is subject to change and addition only within the framework of federal legislation.
The variety of types of municipalities provided for by federal legislation makes it possible to distinguish the finances of settlements, urban districts, municipal districts and inner-city territories of cities of federal significance. Settlement finances are designed to ensure the implementation of the powers of local self-government bodies of settlements to resolve issues of local importance, enshrined in federal legislation and the legislation of the constituent entities of the Russian Federation for settlements. At the expense of the financial resources of local self-government bodies of municipal districts (urban districts), issues of local importance are resolved, attributed to the jurisdiction of municipal districts (urban districts), as well as the powers of local self-government transferred by local self-government bodies of settlements, and state powers delegated by state authorities of the Russian Federation are implemented and subjects of the Russian Federation.
The need to separate state and municipal finances is dictated by the isolated position of local government bodies in the system of government bodies. In their activities, local government bodies ensure the implementation of the right of citizens to independently and under the responsibility of solving all issues of local importance, determined by federal legislation.
Article 12 of the Constitution of the Russian Federation guarantees that local self-government is independent within the limits of their powers. This provides that local governments acquire the right to form their own financial resources and to independently choose the directions and forms of using funds. The ban on arbitrary alienation of financial resources of local governments (Article 31 of the RF BC) is supplemented by a guarantee of transferring additional financial resources to local governments in order to ensure the state powers delegated to them.
The independence of local self-government is supported by the organizational separation of local self-government bodies from public authorities. Based on Art. 12 of the Constitution of the Russian Federation, local government bodies are not included in the system of government bodies. This predetermines the independence of the establishment by the municipal entity of the structure of local finance management bodies, the forms of their interaction, the powers of specific bodies and their officials... Federal legislation provides for measures to protect local government bodies, incl. local finance authorities from interference in their activities by state authorities.
Following the Constitution of the Russian Federation, the independent formation of local budgets will be an integral feature of local self-government.
The budget of a municipality (local budget) is a form of formation and spending of funds intended to ensure the tasks and functions related to the jurisdiction of local self-government (Article 14 of the BC RF)
Local budgets- the central link of local finance, in which the main part of the financial resources of municipalities is mobilized and at whose expense the basic needs of the local community are financed.
Local budget funds are owned by the municipality, which is enshrined in Art. 49 of the Federal Law of 06.10.2003 No. 131-FZ "On the General Principles of Organization of Local Self-Government in the Russian Federation".
The formation of local budgets is carried out through the mobilization of tax revenues, non-tax revenues, gratuitous transfers, and other revenues of local budgets.
Tax revenues of local budgets form: federal taxes and fees credited to the local budget in accordance with federal and regional legislation, as well as decisions of local governments; regional taxes and fees credited to the local budget in accordance with regional legislation and decisions of local governments; local taxes and fees credited to the local budget in accordance with federal legislation and decisions of local governments; monetary penalties in the form of sanctions applied for certain types of taxes and fees, which must be credited to the local budget; means of self-taxation of citizens.
As non-tax revenues, local budgets are credited with: revenues from the use of property in municipal ownership or from the activities of municipal organizations (dividends on shares in municipal ownership; income from the lease of property in municipal ownership, etc.); income from the provision of budget loans and budget loans; income from the provision of services or compensation for the costs of the municipality; payments from municipal organizations; funds from the sale of confiscated and other property converted to the income of the municipality; administrative fees and charges; penalties and compensation for damage to municipalities.
Gratuitous transfers to local budgets are carried out in the form of financial assistance from the federal budget and the budgets of the constituent entities of the Russian Federation; financial assistance from the budgets of other municipalities; other gratuitous transfers.
Other revenues of local budgets include: revenues from entrepreneurial and other income-generating activities carried out by budgetary institutions under the jurisdiction of local governments, other revenues provided for by the legislation of the Russian Federation.
According to the Budget Code of the Russian Federation, the approved amount of budget revenues of the municipal formation, excluding financial assistance from the budgets of other levels of the budgetary system of the Russian Federation, cannot be lower than the approved amount. running costs budget, and must be at least 10 times higher than the level of the local budget deficit (Article 92 of the BC RF)
Balance of the budgets of municipalities is ensured by local authorities at the expense of the following types of receipts from sources of financing the deficit of local budgets: receipts from the placement of municipal securities; loans from credit institutions; budget loans and budget loans received from the budgets of other levels of the budgetary system of the Russian Federation; receipts from the sale of property in municipal ownership, including receipts from the sale of shares owned by the municipality; proceeds from the sale land plots credited to the local budget. In accordance with the Budget Code of the Russian Federation, the balances of local budgets can be used to finance the local budget deficit (Article 96 of the Budget Code of the Russian Federation)
The sources of financing the local budget deficit are approved by the representative bodies of local self-government in the decision on the budget for the coming financial year.
According to the main purpose of municipal finance - financial support of the powers of local self-government bodies, funds from local budgets are directed to the implementation of expenses: to resolve issues of local importance, which are within the competence of local self-government bodies of this municipal formation; on the implementation of certain state powers delegated to local self-government bodies; on the exercise of powers delegated by other bodies of local self-government.
The first group of expenses - to meet the basic living needs of the population in the areas attributed to the jurisdiction of the municipality, includes expenses for:
- realization of the constitutional rights of citizens to compulsory general education, social protection, health care and free medical care in institutions that are in municipal ownership or under the jurisdiction of local governments;
- ensuring the living conditions of the municipality as a whole (for the protection of public order, landscaping and landscaping of territories, removal and processing of household waste and garbage, etc.);
- implementation of local self-government (for the conduct of municipal elections and local referenda, for the maintenance of local self-government bodies);
- servicing municipal debt. Financing of the expenses of this group is carried out exclusively at the expense of local budgets.
The second group includes the costs of financial support of powers that are within the competence of the state authorities of the Russian Federation and the constituent entities of the Russian Federation and transferred by them to local governments at a time, for a specified period or indefinitely. Traditionally, the delegation of state powers to local self-government bodies is considered as an instrument of decentralization of state power, contributing to an increase in the efficiency of public administration at the local level, based on the interests of the population and taking into account local traditions.
Financial provision by local governments of certain state powers delegated to them presupposes compliance with the following conditions:
- the volume of expenditures of local budgets for the implementation of delegated powers cannot exceed the amount of funds received from public authorities in order to ensure such powers;
- conditions and procedure additional use own revenues of local budgets for financing the delegated state powers are subject to regulation in the charter of the municipality;
- the procedure for spending funds by local government bodies for the exercise of delegated state powers is established by federal government bodies or government bodies of the constituent entities of the Russian Federation.
The allocation of the third group of expenses is due to the right of local self-government bodies of municipal districts to delegate part of their powers to local self-government bodies of individual settlements that are part of a given municipal district, and, on the contrary, to the transfer by local self-government bodies of specific settlements of part of their powers in favor of municipal districts.
Financial support by local governments of the powers delegated to them to resolve issues of local importance under the jurisdiction of other municipalities is carried out exclusively on the basis of an agreement of local governments and within the funds received in order to compensate for additional costs.
Local governments can invest local budget funds in authorized capital organizations, transfer budget funds to management, provide budget loans to cover cash gaps in other budgets. Meanwhile, the allocation of budget funds to bank deposits The budget code of the Russian Federation is not allowed (Article 237 of the BC RF)
Along with the local budget economic basis local self-government can be municipal off-budget funds, which are an independent link in municipal finance.
Municipal off-budget funds - funds of monetary funds formed outside the budgets of municipalities and intended for the implementation of individual needs of the local community (provision of environmental protection measures, protection of historical and cultural monuments, etc.)
The functioning of municipal off-budget funds is based on a targeted orientation in the formation of financial resources, when the mobilization of funds is carried out taking into account the previously designated and specified directions of their use.
The right of local self-government bodies to form municipal off-budget funds was first formulated in the Law of the RSFSR dated 06.07.1991 No. 1550-1 “On local self-government in the RSFSR”. The active formation by local governments of municipal off-budget funds was dictated by the desire to ensure concentration financial resources on priority tasks for the municipality or especially significant programs; use the targeting of certain types of income (for example, payments for the use of natural resources); guarantee the fulfillment of certain expenditure obligations regardless of the results of the execution of local budgets; to increase the efficiency of financial resources management. Meanwhile, off-budget funds did not allow local governments to achieve effective and rational use of funds, which was due to a number of factors:
- limited financial resources at the disposal of local governments;
- multi-channel financing of the same expenses;
- disproportion of the fixed sources of income with the amount of funds required for the implementation of programs;
- refusal to use free balances of municipal off-budget funds to finance the deficit of local budgets;
- imperfection of the organization of accounting and control over the formation and use of the funds of these funds.
The diversion of revenues to municipal off-budget funds was a latent form of overestimating the needs of the municipal formation for financial assistance from the budgets of the constituent entities of the Russian Federation. In general, the process of consolidation of budgets and state extra-budgetary funds, which began at the federal level in 1994, found its gradual manifestation in the form of the abolition of some municipal extra-budgetary funds and consolidation in local budgets on the basis of targeted budget funds of others.
Current federal legislation does not allow determining legal position municipal extrabudgetary funds in a clear and unambiguous manner. Federal Law No. 154-FZ of 28.08.1995 "On the General Principles of Organization of Local Self-Government in the Russian Federation" confirms that representative bodies of local self-government have the right to form targeted off-budget funds that are part of municipal property. The newly adopted Federal Law "On General Principles of Organization of Local Self-Government in the Russian Federation" given right does not formulate and establishes the exclusive position of local budgets in financial support issues of local importance. The Budget Code of the Russian Federation also does not contain instructions on the possibility of creating municipal off-budget funds; the position of municipal off-budget funds in the budgetary system of the Russian Federation has not been determined.
At the same time, the absence in federal legislation of norms prohibiting the formation of municipal off-budget funds does not impede the activities of local self-government bodies to mobilize and use their own financial resources in an off-budget form. This is evidenced by the presence of off-budget funds in many municipalities.
Federal legislation does not provide for mandatory payments to be credited to municipal off-budget funds. Taxes and levies assigned to local budgets cannot be directed to municipal off-budget funds. Local governments do not have the right to introduce additional fees and other mandatory payments not provided for by federal legislation. Based on the above, we come to the conclusion that the revenues of municipal extra-budgetary funds are limited in terms of the composition and volume of mobilized funds: voluntary contributions and donations from citizens and organizations for these purposes; fines for offenses in the field of environmental protection and use of natural resources (to be used for environmental protection and restoration measures); fines for damage and loss of objects of historical and cultural heritage, natural monuments that are under the jurisdiction of local governments (directed to the implementation of measures to restore and maintain in the preservation of objects of historical and cultural heritage); other income in accordance with the legislation of the Russian Federation.
Municipal extra-budgetary funds can finance expenditures to meet the various needs of local communities, taking into account the need to assign these expenditures to certain types of income (for example, expenditures on environmental protection measures, municipal housing construction, construction and repair of municipal roads, support for small businesses, etc.)
The functional isolation of municipal off-budget funds entails their organizational independence. These funds are approved in the form of separate legal acts of the representative bodies of local self-government in the manner to be determined in the charter of the municipality. The funds of municipal off-budget funds are credited to special accounts opened in credit institutions carrying out cash execution of the budget.
Changes made to Art. 14 of the Budget Code of the Russian Federation by the Federal Law of 20.08.2004 No. 120-FZ "On Amendments to the Budget Code of the Russian Federation regarding the regulation of interbudgetary relations" allow to resolve the uncertainty of the position of municipal extra-budgetary funds. The use by local self-government bodies of forms of education and expenditure of funds other than the local budget for the fulfillment of expenditure obligations of the subject education is not allowed.
Control questions
- What is the economic content of state and municipal finance?
- What is the reason for the need for the existence of state and municipal finance?
- What factors influence the organization of state and municipal finances?
- What is the composition of the financial resources of public authorities and local governments?
- What are the sources of financial resources of state authorities and local self-government?
- What are the differences between budgets and extra-budgetary funds of public authorities?
- What are state and municipal revenues?
- What are government and municipal spending?
- What federal legislative acts regulate the formation of financial resources of public authorities and local governments?
Self-study assignments
- Analyze the composition, structure and dynamics of federal budget revenues and expenditures over the past five years.
- Analyze the composition and structure of income and receipts regional budgets over the past five years.
- Analyze the composition and structure of revenues and revenues of local budgets over the past five years.
List of exam questions for the discipline "State and municipal finance"
Finance is a historical and economic category. As a historical category, the term "finance" comes from the Latin word "financia", which means payment, income. For the first time in this meaning, finance was used in the XIII-XV centuries. in Italy. Later this term received international recognition and is now used to denote relations associated with the formation, distribution, use of funds. Consider this term as an economic category. A category is understood as social, specific, homogeneous relations, which in an abstract form characterize one of the aspects of social life. The economic category is also formed by homogeneous economic relations that have an objective character and a specific social purpose. They are extremely diverse and arise at all stages of the reproduction process and in all spheres of social life. Monetary relations are part of economic relations. However, not all monetary relationships are related to finance. Finance is an isolated part of monetary relations. their peculiarity lies in the fact that they are not directly related to commodity production and circulation. Finance arises when, as a result of the production of goods and their sale, cash income participants in production and the distribution and use of these incomes takes place. So, the receipt of proceeds from the sale of products is based on such functions of money as a measure of value, means of circulation and means of payment. But this is not finance, but the distribution of proceeds is already financial relations. Finance as an economic category is economic relations flowing in monetary form, associated with the distribution of a part of GDP and national income, resulting in the formation of financial resources accumulated in centralized and decentralized funds for the purpose of using them in the interests of the state, enterprises and citizens. Having carefully read this definition, it can be noted that a feature of economic relations that make up the content of finance as an economic category is a distributive 2 character and monetary form expressions. Cash flow is a prerequisite and an important sign of financial relationships. The place of origin and functioning of finance is the second stage of the reproduction process - the stage of distribution. We know that the reproduction process includes four successive stages: 1) production; 2) distributions; 3) exchange; 4) consumption (personal and industrial). At the first and fourth stages of the reproduction process, the movement of funds does not arise, and therefore they cannot be the place of origin of finance. The real movement of funds occurs only in the second and third stages, however, the nature of this movement is different. So, at the second stage of the reproduction process - the stage of distribution - this movement is characterized by the following features: 1) the value of the social product is distributed in monetary form; 2) the distribution takes the form of a cash flow that occurs separately from the movement of value; 3) monetary relations mediate the one-way movement of value. The third stage of the reproduction process - the stage of exchange - is distinguished by the fact that: 1) the value of the social product is distributed in commodity form; 2) distribution takes the form of movement of goods, mediated movement of funds; 3) monetary relations mediate the counter movement of value, which are in commodity and monetary forms.
Finance functions.
A function is understood as the manifestation of a property of an object in a given system of relations. As applied to a category as specific, homogeneous, social relations, a function is understood as the manifestation of its essence in action, specific ways of expressing its inherent properties. The function is derived from the essence of the category, and the essence of the category, its social purpose is manifested, in turn, through the functions performed. And so, the essence of finance as an economic category is manifested through the functions they perform. The essence of finance as an economic category has not yet been fully disclosed. Moreover, the very question of the number of functions performed by finance is debatable. Economists name several functions performed by finance, including: 1) pay-as-you-go; 2) control; 3) regulation of the economy; 4) economic incentives. Let's take a quick look at these functions separately. Distribution function. The main characteristic of financial relations is their distributive nature, therefore the main function of finance is distributive. Finances serve different stages of the distribution of the aggregate social product, participating in both its primary distribution and redistribution. Through 7 finances, the state influences not only the redistribution of national income, but also production, capital accumulation, and the sphere of consumption. The distribution of national income occurs both between the production and non-production spheres, and within these spheres. The state, with the help of a financial mechanism, withdraws part of the income received in some areas of the economy and directs it to others, including the social one. Distribution function of finance allows: to create targeted funds of funds at the level of economic entities, population, state, local government; to carry out intra-economic, intra-sectoral, inter-sectoral, inter-territorial redistribution, as well as redistribution between the production and non-production spheres and social groups; create reserves at the level of an economic entity, state, household. The control function of finance arises and operates simultaneously with the distribution function. where there is an allocation of financial resources, it is possible to exercise control. Distribution and control are two sides of the economic process. Financial control is cost control. The control function of finance is manifested in the control over the distribution of GDP (the value of which has a monetary value) over the corresponding funds and their spending for their intended purpose. Through the control function, the ability of finance is manifested and quantitatively display the course of the reproduction process, and control the value proportions that are emerging in society. The instrument for implementing the control function of finance is the information included in the financial statements, compiled on the basis of financial accounting data. Economic regulation function. The coordinated functioning of the economy is achieved through its regulation. At the same time, self-regulation and state regulation are distinguished. Self-regulation of the economy is carried out through the formation of a financial base in different links of social production. Self-regulation is based on the free choice of business entities: - areas of entrepreneurial activity; - business partners and forms of relationships with them; - directions of use of income received as a result of their activities, excluding part of income (profit), sent in the form of mandatory payments to the budget and extra-budgetary funds. Self-regulation is possible only in a market economy, that is, when a free and rapid redistribution of financial resources is possible.8 In a situation of economic crisis, it is almost impossible to stabilize the economy with the help of market regulators alone. In this regard, there is a need for an additional mechanism for regulating the economy, primarily in government regulation... Such intervention is based on the use of cost levers of influence on processes social development and is implemented through financial policy. Economic incentive function. In a market economy, the role of economic incentives significantly increases, which is carried out with the help of various cost levers, including finance, which, due to their distributional nature, have great opportunities to influence the process of social production. Thus, financial incentives are an integral part of economic incentives. As part of the financial incentives for the development of production, one can single out: - effective areas of investment of financial resources; - incentive funds; - budgetary methods of intensifying production (tax incentives and sanctions); - financial incentives and sanctions. Financial incentives are closely related to the financial regulation of the economy. - these processes have a mutual influence on each other.
Financial resources.
Financial resources - funds accumulated in funds. Distinguish between centralized and decentralized funds. Centralized funds are created at the macro level (state budget, 3 extra-budgetary funds), decentralized - at the micro level (statutory, depreciation fund and other enterprise funds). Funds of financial resources or financial funds are an important component of the overall system of funds of funds operating in the economy. The use of financial resources through special-purpose monetary funds has certain advantages over the non-fund form, since it allows: 1) to ensure the concentration of resources in the main directions of development of social production; 2) to more closely link the satisfaction of social needs with economic opportunities; 3) to more actively influence social production. Financial resources are a distinctive feature of the economic category "finance", allowing them to be distinguished from the general set of categories participating in the value distribution. It should be noted that only finances are characterized by such a material medium. Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources. And so, let's note the main features of finance: 1. Finances are not the equivalent of money, they are monetary relations. 2.K financial relations do not include all monetary relations, but only those of them through which the movement of value is carried out, not mediated by the movement of goods. 3. Financial relations are distributive in nature, i.e. they are not associated with the creation, but with the distribution and redistribution of already created value. 4. As a result of financial relations, funds of funds are created, i.e. sums of funds with a designated purpose.
The financial system of the Russian Federation, its spheres and links. Lecture
State and municipal finance: essence, links and their relationship.
The essence of state and municipal finance
State and municipal finance is a set of economic relations arising in the real money turnover on the formation, distribution and use of centralized funds of financial resources.
The material basis of finance is money circulation. Real money turnover - it is an economic process that causes the movement of value and is accompanied by a flow cash payments and calculations. The object of real money circulation is financial resources, which are sources of financing for expanded reproduction.
State and municipal finances express economic relations associated with the provision of centralized sources of financing for the state and municipal sectors of the economy, the most significant programs for the development of production and the public sector, organizations and institutions of the budgetary sphere, etc. Their functioning is aimed at achieving the general development goals of a socially oriented economy.
State and municipal finances function within the financial system of the state and are its central link (Fig. 2.1).
Figure 2.1. Composition of state and municipal finances
Finance as an economic category depends on transformations in the relationship between the links of the financial system. This applies primarily to the relationship between macro finance and micro finance. Macro-level finance, and above all the state and municipal budgets, is based on the financial potential of enterprises. Finance contributes to the achievement of general goals of economic development, therefore, their optimal organization is required. The way of organization establishes the qualitative certainty of finances. The distribution and use of financial resources in the state are carried out within the framework of an integrated system for managing financial flows.
An important methodological factor is the definition principles of organization and functioning state and municipal finance, which makes it possible to identify the directions of the influence of finance on the development of the state and municipal sectors of the economy, to develop criteria for their functioning.
Public and municipal finances are based on information flows. Government decision-making is based on a body of information. Analysis of the incoming information is important both at the moment of making a decision and in the process of monitoring the progress of its implementation. This information is contained in operational and statistical reporting, contracts and agreements, settlement documents, etc.
State and municipal finances have a clear target orientation. They affect certain socio-political interests of certain segments of society. However, in all their aspects, they are focused on solving state and municipal problems.
2.2. Functions of state and municipal finance
State and municipal finance as an economic category is manifested in the functions they perform. The study of the function is necessary for the implementation of public financial policy. Within the framework of financial science, there is a certain unity of functions of state finance and enterprise finance, and at the same time, there are significant differences that determine the importance of national interests and the entrepreneurial aspect of activity.
The main functions of the financial system. For the financial system as a whole, the following functions are of decisive importance: planning, organization, stimulation, control.
1. Scheduling function involves the formulation of goals and the choice of ways to achieve them on the basis of the delineation of powers and subjects of jurisdiction between the Federation, the subjects of the Federation and local authorities. The planning function usually includes the distribution of a limited amount of financial resources in the time aspect based on the priorities and development goals, their redistribution between the federal budget and the budgets of the constituent entities of the Federation and local governments. This function is implemented through the preparation of budgets for the corresponding financial year and perspective, balances of financial resources, taxation procedures, etc.
2. Organization function includes a budgetary structure, budget classification, implies the need to determine the procedure for drawing up, approving and executing the budget, choosing authorized credit organizations, delineating the powers of legislative and executive authorities in the budget process, defining the rights and responsibilities of functional units of financial bodies. This function is associated with the process of organizational construction of the internal system of regulation and control of budget flows and financial resources of the state.
3. Stimulation function is based on activities aimed at achieving goals. This function is used to interpret the factors affecting financial performance and taking into account its need for cash. The decisive role is played by the factors that determine the behavior of employees in the process of making decisions on tactical and strategic aspects of finance.
4. Control function means helping to achieve the goals set. These include the development of norms and standards that are a benchmark, a criterion for evaluating results, comparing achievements with the goals and established criteria, ensuring that the necessary changes are made to the conditions and factors of financial activity.
Functions of finance related to the regulation of real money turnover.
1. Distribution function state and municipal finance lies in the fact that through the distribution and redistribution of the newly created value, national needs are met, sources of financing for the public sector of the economy are formed, and a balance of budgets and extra-budgetary funds is achieved within the framework of the unified budgetary system of the Russian Federation.
State and municipal finances function on the basis of the redistribution of financial resources through a system of centralized funds. With this function they serve reproductive processes both within the framework of relatively isolated structural formations, and on a national scale.
The distribution function is that the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.
The main objects of implementation of the distribution function of finance are mandatory payments to the budget and off-budget funds, as well as sources of financing the budget deficit. A special role plays the process of redistributing income between different levels of budgets.
2. Control function state and municipal finance consists in the implementation of control over the real money turnover by the ruble, in which the state is a participant, in the formation of centralized funds of funds. Ruble control has two forms:
control over changes in financial indicators, the status of payments and settlements;
control over the implementation of the financing strategy.
In the first case, a system of sanctions and incentives is applied, using measures of a coercive or incentive nature. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to the anticipation of changes and the early adaptation of the order and conditions of financing to them. Constant changes, updates in the financial system require an adequate response to this from all branches of government.
The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an extra-budgetary fund, an enterprise or an institution, etc.
The control function of state and municipal finance is implemented in the following main areas:
1) control over the correct and timely transfer of funds to centralized funds;
2) control over compliance with the specified parameters of centralized funds, taking into account the needs of production and social development;
3) control over the targeted and efficient use of financial resources.
The targeted and effective use of financial resources is controlled on the basis of the compiled planned and reporting estimates for the formation and spending of monetary funds.