The state budget is the most important document of the country. A budget is a detailed plan in which all income and expenses are carefully described, as well as the financial policy of the state is determined.
The state budget, as the name suggests, lists the income and expenses of a particular country. Usually such a document is drawn up for a calendar year, that is, it covers the period from January 1 to December 31.
The preparation of the state budget is necessary in order to plan in advance and then regulate the cash flows of the country. In addition, the state budget is needed to control the actions of the government. It records data on the plans of government agencies. The annually compiled budget also sets the parameters for the country's economic activity and outlines options for government action.
Since this document is the basis of government policy, it is drawn up, approved and implemented at the level of laws. Moreover, the state budget itself is essentially a law.
State budget revenues make up the following revenues: income taxes (applies to both individuals and legal entities - they can be collected either by central or local tax authorities), income taxes (revenues that go to the budget from the real sector), indirect taxes, excise taxes, duties and other non-tax levies, regional taxes. Moreover, taxes make up, on average, about 84% of state budget revenues, revenues from non-tax collections - 7%, and revenues from targeted budget funds - 9%.
State budget funds are spent at the discretion of the government for the development of industry, agriculture, social needs of the population, public administration, military purposes (defense), international activities, law enforcement agencies, science and health care.
The governments of all countries try to draw up a balanced budget, that is, one in which the volumes of revenues and expenditures are equal. If there is no balance between these two items, then there may be either a surplus (income is more than spending), or a budget deficit (spending is more than income). A surplus is rare, unlike a deficit. The main problem in the area of public budget management is corruption, which is especially prevalent in budget execution.
The state budgetary system of the Russian Federation consists of federal, regional and local budgets. The federal budget is drawn up and approved by the Federal Assembly for the whole year and has the form of a federal law. Thanks to the federal budget, there is a redistribution of national income and GDP. The procedure for the formation and execution of the federal budget is regulated in the Budget Code of the Russian Federation.
