The budget device is the principles of the functioning of the budget system, its structural characteristics and the relationship between the forms.
Its basis consists of economic relations and legal norms that determine the main competence of central and local authorities regarding the implementation of the budget process and the relationship between all its types.
Note that the budget and government systems are directly dependent. If we consider a unitary state, the budget here can be of two levels - state and local. As for the federal one, the budget structure is subdivided into three levels: the federal budget, the members of the federation, and the local one. Note that the types of local forms may also be different, which is due to the administrative-territorial division of the country. The budget is a form of education and use of funds, which is designed to provide all the functions of public authorities. Its correct structure helps in the implementation of a successful financial public policy.
The budget device and budget system exist in direct dependence on each other. The basis of any budget structure is this system - a set of budgets of individual elements of the administrative-territorial division, based on the principle of economic relations and legal norms. As for the components of this system, there are several of them: structure, principles of structure and organization of functioning.
In general, the budget device is based on several principles:
1. The types of budgets that are created in a particular state should be shared.
2. The country should clearly regulate the basic principles of the system.
3. Between the links of the budget system should clearly distinguish.
4. Between these parts should be determined by the nature of the relationship and highlighted their forms.
If we consider in more detail, it should be based on the separation of types of budgets, which are at different levels.
The budget device of the Russian Federation consists of three main links:
1. The federal budget.
2. Budgets developed by national-state and administrative-territorial units, which are called the budgets of the federation or regional. Among them are the republican, regional, regional, budgets of autonomous units, as well as city (for example, Moscow or St. Petersburg).
3. Local.
This system should be unified, which can be achieved through implementation through a single socio-economic policy and a combination of legal norms, as well as the use of common classifications and forms of maintaining budget documentation. In general, a budget device is an activity regulated by law.
In order to understand what it is based on, it is necessary to consider the main features of its components. So, the organization of relations between budgets is based on their directions, types and forms. As for the first sign, according to it there is a division into vertical (carried out between different levels of budgets) and horizontal (of the same level).
With regard to the characteristics of the relationship, they are divided into regulated by law and regulatory documents and contractual (developed on the basis of an agreement between authorities).
By forms, subsidies are allocated (allocation of funds from higher levels to lower), mutual settlements, withdrawal of funds, as well as budget loans (represent a temporary transfer of funds due to the need).