In the Russian Federation, the state financial system is designed in such a way that there are budgets of different levels. The most famous is the so-called central, which is controlled by officials from Moscow. But there are also regional, oblast, provincial, district, city and rural budgets. What are they? What income do people get and expenses? What is the budget of the constituent entities of the Russian Federation? All this will be considered in the framework of the article.
general information
The budget of the constituent entities of the Russian Federation is a form of collection and expenditure of funds that are needed to ensure the functions and tasks under the jurisdiction of the constituent entity of the Federation. They are formed on the basis of the following principles:
- Publicity.
- Unity (all revenues go to one budget).
- The balance.
- Independence (each level of government should work independently on drawing up its own budget).
Revenues can be divided into non-tax and tax. In general, it should be noted that the federal budget and the budgets of the constituent entities of the Russian Federation are quite similar. In short, they differ in the articles of filling and spending, as well as their size. Non-tax revenues represent revenues from various types of property and dividends on shares owned by the entity. Each of them is interested in developing and increasing revenues. Tax revenues are divided into fixed (own) and regulated.
What are they?
Fixed taxes are introduced directly by the constituent entity of the Russian Federation and are paid to the budget on an ongoing basis. These include, for example, regional fees. They form the core of the financial system of the constituent entities of the Russian Federation. Thanks to this, it becomes possible to implement a long-term economic and social policy, ensuring the work of institutions and structures of the social sphere. So, taxes may be levied on the property of the organization, real estate, transport, license fees and imputed income. And in another case, a different mechanism works. Regulated taxes mean the amount of money that is transferred annually from higher budgets to lower ones in order to ensure the necessary amount of financial resources to fulfill the obligations undertaken. Let's look at a few options. This is both VAT and personal income tax, and income tax. True, not all funds are redistributed, but only a certain percentage. Regulatory taxes include subsidies, subsidies and funds from special funds for the financial support of the regions. As you can see, the budget of the constituent entities of the Russian Federation is a complex mechanism for ensuring activity, which is based on many sources. Regulated incomes were introduced due to the varying levels of territorial development.
Subject Capabilities
They can introduce regional fees and taxes, set rates on them and provide benefits. Also, representatives of the executive branch within the framework of entities can provide installments or deferrals for their payment. But this is only possible in cases where there are no more problems anywhere. If we talk about what makes up the largest part of the budgets of the constituent entities of the Russian Federation, these are VAT, excise taxes, duties and income tax. It should be noted the high intensity of the redistribution of funds. Since the federal center takes quite a lot of money for itself, on average in the country this income item ranges from 30-40% of the total amount of funds.
Costs
What is the money spent on? What are the budget expenditures of the constituent entities of the Russian Federation? About a third of all funds is used as assistance at other levels of the state financial system. For example, a region transfers districts for the construction of schools. Then, attention is paid to industry, health care, agriculture and the road sector, law enforcement, public administration, education, culture and social policy.
Costs: Case Studies
It is necessary to provide financing for a large number of activities. At the same time, the budgets of the constituent entities of the Russian Federation are grouped by articles. Details may vary depending on the situation, but in general they are similar. So, for example, financing of municipal institutions of education, health care, housing and communal services is combined in one article. By a sign of social policy is meant expenses that go to citizens with children, people with disabilities, and veterans. Also, the budgets of the constituent entities of the Russian Federation / local budgets lend on preferential terms to industrial enterprises, agricultural associations, and help regional scientific institutions. Separately, there are social support services, such as state administration, law enforcement, fire prevention facilities.
How is everything really going?
It is probably no secret to anyone that due to a lack of finance, the social sphere, education and health care are supplied on a residual basis. Alas, for several years the allocated funds for doctors and hospitals have been reduced, which cannot but upset. This is largely due to difficult economic conditions. Ideally, the social sphere should fully ensure compliance with the standards established by the state. Now they provide for a significant level of providing the population with services. But alas, all four indicators in this area have problems. These words refer to the provision of preschool and educational institutions, outpatient facilities and hospitals.
State debt of subjects
A separate territory of the federation has the right to borrow funds to fulfill its duties. Additional financing may be needed both for banal “eating”, and to help business entities by providing soft loans. Be that as it may, the state debt of the subject is being formed. By it is meant a set of obligations that are secured by property. Incomes of budgets of constituent entities of the Russian Federation in this case can be increased by:
- Conclusion of agreements with financial and credit organizations (including international ones) or foreign countries.
- Obtaining government loans, which implies the issuance of securities.
- The conclusion of agreements on the restructuring and prolongation of debt obligations of previous years.
- Lobbying for the provision of state guarantees.
Who can attract external borrowing? This opportunity is available exclusively to those entities that do not receive assistance to equalize security from the federal budget.
Specific issues of working with a public debt
The upper limit of debt obligations is established at the legislative level. Therefore, to exceed it just does not work out. Moreover, the maximum value should not exceed the level of income without taking into account assistance. In addition, it should be noted that entities are not liable for debt obligations of other structural units, as well as of the entire Russian Federation. A certain influence is also exerted by the constitution or the adopted charter of the territorial entity. The budget funds of the subject of the Russian Federation are the economic basis for the public sector. Therefore, the opportunity was provided not only to acquire debt, but also to receive assistance from other internal sources of the Russian Federation.
Credentials
Important is not only the amount of money received, but also the powers that local authorities have. So, taxes can go into the budget of the constituent entities of the Russian Federation a lot, but it is rather difficult to spend them. Consider the example of a
city of federal significance and at the same time the capital of the Russian Federation - Moscow. On September 10, 2017, elections of district deputies were held. It would seem that since this is the capital, they will manage significant funds. But no. In fact, everything is carried out centrally. And to say that the districts have significant budgets is impossible. In the case of Moscow, the situation is structured in such a way that most of the powers are concentrated in the mayor and the city administration. Therefore, deputies act more as translators of the opinions of local residents than people who have real power. Although a similar situation is not observed everywhere. In this regard, the Russian Federation is a very interesting state, in which several approaches to governance exist simultaneously under the same formal jurisdiction. And if in Moscow the district deputies have very illusory management opportunities, then there are a number of cities where almost any change requires their consent. Of course, it cannot be said that deputies in, say, Yaroslavl are much more influential. But they can, if they wish, come into confrontation with the administration, significantly complicating their lives. Whereas in Moscow for this elementary real leverage is not provided for.