Extrabudgetary funds are one of the ways to use national investment and solve the economic problems of raising and developing production, overcoming crisis situations, instability and temporary stagnation. They play an important role in the country's economy along with the existing social and pension funds, health funds of the Russian Federation and others.
The national economy is one of the main types of production. Its basic industries under the current market economy require modernization and expansion of fixed assets, replacement of worn and outdated machinery. Light industry needs revival, agriculture needs development and further support. And these are not all the tasks facing the state economy. Due to the financial crisis, inflation is growing, the budget deficit, as well as external and internal debt of the country. For these reasons, people, and especially vulnerable groups, are at risk of declining living standards. All this creates the need for a large amount of funding and concentration of funds at the state level.
Extrabudgetary funds are an effective solution to the parallel distribution of finances, in addition to state and local territorial budgets, for a number of factors. The use of such funds is expressed in the need to redistribute financial resources in the conditions of their limited nature and the crisis of the financial condition of the country's economy. For this it is important to conduct a detailed analysis to identify the most problematic areas of development and redistribute the targeted use of financial resources.
The dynamics of economic changes require professionalism in management and operational decision-making regarding the redistribution of finances. Unlike budget funds, the use of which is controlled by the legislative bodies (parliament), the spending of extrabudgetary funds is controlled by central, republican or local authorities, which provides an opportunity for faster and more efficient redistribution of funds and helps to increase the speed of response to the economic situation of the country, especially regarding the deficit of the state budget.
Extra-budgetary funds are intended not only to regroup financial resources from enterprises and institutions. Also, these organizations allow you to find additional sources of cash in such a way as to cover the excess of expenditure over revenue. Sources of financing of extra-budgetary funds can be either permanent or temporary, be different in some administrative-territorial units from others and determined by the scale and nature of the implementation of tasks in times of crisis.
Classification of extrabudgetary funds. Today you can find many options for the separation of these organizations, depending on the considered parameters. So, according to their intended purpose, the funds are divided into economic and social extra-budgetary funds. In terms of management - to state and regional funds.
Using the help of these funds, you can:
1) to influence the production process by financing, lending and subsidizing enterprises;
2) to contribute to the improvement of environmental measures due to special sources and fines from environmental pollution;
3) maintain the standard of living of the population by paying pensions, subsidies, allowances and so on;
4) to provide both domestic and foreign loans to foreign countries.
Under the law, extrabudgetary funds are exempted from state and customs duties, as well as from taxes. Part of the funds from them can be directed to constituent activities, and part - to invest in securities.
According to world statistics, the number of such funds in Western countries ranges from 30 to 80.