Budget classification of the Russian Federation

The budget classification of the Russian Federation isThe division of income and expenditure by separate groups depending on specific characteristics. The purpose of this division is to facilitate the system of financial control and to maintain the procedure for involving and using funds. Indeed, the presence of a clear classification allows analysts not only to track the targeted use of financial resources, but also to reveal the moments of inexpedient investment of funds or to find ways to increase revenues.

The budget classification of the Russian Federation is based oncertain requirements and principles. First of all, the group must comply with the principles of clarity and transparency, so that each person, having taken a legislative act or other state document, understood and oriented in this division. Also, the system of reflecting the indicators of expenditures and incomes requires a detailed reflection of indicators, which greatly facilitates the procedure for verifying the quality of the implementation of the budget plan.

Modern budget classification of the Russian Federationis organized in such a way as to ensure comparability of data at the international level. This, in turn, is a huge step towards strengthening relations with representatives of foreign companies. All national firms and organizations that comply with tax legislation must adhere to the grouping of incomes and expenditures created by state bodies. So, the budget classification of the Russian Federation includes:

1) The division into groups of all revenues coming to the treasury of the state.

2) Then the following classification of the expenditure part is distinguished:

a) organizational;

b) functional;

c) economic;

d) sources of internal and external financing of the budget deficit;

e) types of state internal and external debt.

The income part is differentiated by source of funds. And the detailing is manifested in the formation of individual groups, subgroups, articles and sub-items.

The expenditure part reflects the directionsuse of funds received. In this connection, the functional classification presupposes the reflection of the goals for which financial resources are allocated within the framework of this division. Most of the funds go to ensure the smooth execution of the main functions of government agencies, to implement social programs that are of paramount importance. Within the framework of functional differentiation, one can note the presence of levels. The first reflects sections of specific government functions. Under the second level, it is common to understand a set of concreting subsections. At the third level, the articles of target spending are concentrated. That is, the amounts go directly to the managers and are intended to finance certain needs. And the fourth level is the detailing of articles by types of expenses. In general, this division is inherent in each classification of the expenditure part.

Organizational budget classificationThe Russian Federation is intended to allocate financial resources to recipients or distributors within the republican and local budgets, as well as federal budgets. Accordingly, the classification of the economic expresses the cost of economic needs. The next group reveals the financing of the budget deficit and the debt of both internal and external.

The budget classification of the Russian Federation is aimed atfacilitate the achievement of the main objectives of the policy pursued by the state, as well as simplify the system of monitoring of finance, designed to facilitate control over the appropriateness of spending in a particular sphere. In addition, it allows the government to identify additional sources of income.

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