The budget reform launched by the Ministry of Finance has been going on for more than a dozen years.
Almost all segments involved in the budget process at the federal, regional, and local levels are subject to "redrawing".
One of the most significant innovations for all this time has been the introduction of a new classification of both income and expenditure, which makes it possible to unify budgets at all levels.
The principles for classifying budget expenditures are approved directly by the Ministry of Finance of the Russian Federation and tend to almost change annually. It includes:
Thus, all budget expenditures are encoded by a 20-digit set of numbers.
Because, as with any auditingactivities, and in the implementation of preliminary financial control focuses precisely on the observance of the targeted and targeted nature of the expenditure of funds, it is precisely the classification of types of expenses that can be called the most complex and important in the implementation of the budget process. That it most accurately reflects the structure of budget expenditures. The guidelines on the procedure for applying budget classification, approved by Order of the Ministry of Finance No. 87-H, set forth the main requirements for the cost structure:
Single types of expenses are divided into groups, subgroups.and items of expense type. Possession of CWR deciphering skills usually allows citizens to more fully and objectively assess the direction of spending budget funds of the territory where they live.
This includes most of the cost of doingthe functions of the state, faced by almost all citizens: the purchase of textbooks in schools, food for children, drug provision of hospitals, etc.
In order to roughly imagine how muchmoney provided for such purposes and activities, in the budget it is necessary to find the CWR 244, the decoding of which tells us that, for example, funds for:
Interpretation of CWR 244 in conjunction with the codes of operations of the public administration sector is usually a fairly serious section in the explanatory notes to the estimates of public institutions.
All institutions of the public sector payMandatory taxes and fees in a general manner. In the budget laws you can find this item of expenditure provided for state-owned institutions. In addition to the traditional land tax and property tax of organizations, for example, a transport tax can be paid, which is present in the decoding of CWR 852.
Budgets of different levels to cover the deficitquite often practice attracting either bank or budget loans within the country. Any loan is granted on the terms of payment, that is, at a certain interest rate. Payment of interest is attributed to CWR 853. Deciphering information on this type of expenditures makes it possible to obtain, in addition to information about interest payments for loans, information and other obligatory payments, with the exception of taxes and fees, which are not reflected in other types of expenditure codes. For example, in the comparative table of the Ministry of Finance, which relates the types of expenditures and the types of operations of the public administration sector, when studying CWR 853, the deciphering of the CSOG indicates that there may also be costs for increasing the value of shares acquired into state ownership.
In the context of economic modernization processes inbudgets of all levels provide for CWR 242 expenses. Decryption and allocation of these expenses is made in accordance with the regulatory documents adopted by each level of authority.
Financial support for the existence of allbudgetary institutions of education, culture, social protection, health care is carried out by the formation of their state or municipal task by the founder and the provision of a grant for its implementation. These expenses in the budget and in the list of the main manager of budgetary funds are attributed to CWR 611. Interpretation by institutions is done directly in the above-mentioned list.
With revenue classification budget codesthe population still somehow encounters in everyday life, paying the parental fee for visiting children in kindergartens, taxes on property, land, transport, fines, if there is no luck. The expenditure components of classification codes relate mainly to narrow specialists, one way or another connected with budget execution or budget accounting. Studying the basics of financial literacy, examples of which are given above, will allow you to become more consciously aware of the budget materials periodically published in the media.
