Budget control is a type of financial accounting carried out by the state. This activity is aimed at ensuring the legality, efficiency, reliability of economic phenomena and processes.
Budget control is part of the financial and economic control. It is considered as a complex of certain measures that are carried out by state bodies to verify the effectiveness, legality and appropriateness of actions in the formation, use and distribution of monetary funds of the state as a whole, as well as its subjects and territorial bodies. Budget control allows you to identify the reserves for increasing revenue in the budget, as well as methods for improving budget discipline. All these measures have a legislative basis due to the fact that it is law that ensures the regulation of control relations in the field of financial activity.
The concept of "budget control" is not contained in the current legislation. To determine the essence of this activity, experts proceed from the fact that it is part of a complex of financial actions of the state and municipal formations. In other words, budget control refers to the method that is used to ensure legality in the course of financial activity.
A feature of this accounting method (in contrast to customs, currency or tax) is the presence of special content, a specific object, subject, tasks and goals.
The content of budget control is a check on the implementation of the budgets of the country, off-budget funds. The same concept includes an assessment of the organization of money circulation, the use of credit resources, the state of public debt (external and internal), state reserves, the provision of tax and financial benefits and privileges.
The purpose of budget control should be considered to ensure the legality of the implementation of financial activities. In other words, compliance with legislation is analyzed and evaluated by all parties involved in financial relations.
This goal can be achieved by performing certain tasks. These include:
- Compliance with the law.
- Ensuring effective control over the formation of state profit and its rational use.
- Compliance with the financial process.
- Exercising control over the implementation of the structure of intergovernmental relations.
- Prevention, suppression of offenses in the field of finance.
- Coordination and verification of the activities of control units.
The object of financial verification include monetary relations that are formed at all stages of the financial process.
The subjects are the bodies of budget control. These include legislative, executive units of power, officials of territorial administrations in municipalities. Subjects are divided into controlled and controlling. The first category includes units of state power, enterprises, organizations, institutions. In other words, controlled objects include all objects that received, transferred or used budget funds.
Different types of financial audits are based on specific methods and forms of their conduct. To reduce the risks of errors, the PMK KIS Budgeting is often used.
Existing legislation divides the state financial audit into internal and external. Internal control is exercised by the executive branch. This check, carried out regarding the own activities of the parties to financial relations, is inextricably linked with the tasks that their participants face.
External control is carried out by independent bodies. This check is carried out regarding the financial activities of the executive branch.