Expenses federal budget- These are funds allocated to finance national expenditures. They express economic relations associated with the distribution and redistribution of national income used for national purposes.

Budget expenditures must correspond and meet the needs of the state economy. Budget expenses are manifested through specific types of expenses for necessary needs, and such expenses can be characterized both from a qualitative and quantitative point of view. The qualitative characteristics of each type of budget expenditure make it possible to determine the economic nature and social purpose of each element of expenditure, and the quantitative characteristic - their value.

Expenses are divided into the following blocks (Figure 8):

Figure 8. - Types of government expenditures

Each of these blocks includes specific areas for using budget funds. Budget funds are provided in the following forms:

• · allocations for maintenance budgetary institutions;
• · funds to pay for goods, works and services performed by individuals and legal entities under state or municipal contracts;
• · transfers to the population, i.e. budget funds to finance mandatory payments to the population: pensions, scholarships, compensation, etc. social payments established by law Russian Federation, legislation of the constituent entities of the Russian Federation, legal acts of local governments;
• · allocations for the implementation of certain state powers transferred to other levels of government;
• · allocations to compensate for additional expenses arising as a result of decisions made by government bodies, leading to an increase in budget expenses or a decrease in budget revenues;
• · budget loans to legal entities (including tax credits, deferments and installments for the payment of taxes and payments and other obligations);
• · subventions and subsidies to individuals and legal entities;
• · investments in the authorized capital of existing or newly created legal entities;
• · budget loans, grants, subventions and subsidies to budgets of other levels budget system Russian Federation, state extra-budgetary funds;
• · loans to foreign countries;
• · funds for servicing and repaying debt obligations, including state or municipal guarantees.

Types of budget expenditures are presented in Table 1.

Table 1. - Types of budget expenses

1. On an economic basis
Subvention
Subsidy
Budget loan
2. By influence on the process of expanded reproduction	Current expenses
Capital Expenditures
3. By subject	National security spending
Research expenses
Expenditures on foreign policy
Financing of the social sphere (education, healthcare, culture, sports, etc.);
creation of reserve funds;
Government expenses
Public debt servicing costs
4. By territorial basis	Federal budget expenditures
Expenditures of the budgets of the constituent entities of the federation
Local budget expenditures

The economic classification of budget expenditures of the Russian Federation is a grouping of budget expenditures at all levels of the budget system of the Russian Federation according to their economic content.

Subsidies are budget funds provided to the budget of another level of the budget system of the Russian Federation on a free and irrevocable basis.

Subvention - budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous and non-refundable basis for the implementation of certain targeted expenses.

Subsidy - budget funds provided to the budget of another level of the budget system of the Russian Federation, to an individual or legal entity on the basis of shared financing of targeted expenses.

Budget loan is a form of financing budget expenditures, which provides for the provision of funds to legal entities or other budgets on a repayable and reimbursable basis.

Current expenses are budget funds allocated to legal entities to finance their current needs.

Capital expenditures are government investments in fixed assets and increases in reserves.

Federal budget expenditures for the distribution of funds by sections, subsections, target items and types of expenditures of the functional classification of expenditures of the budgets of the Russian Federation, groups of expenditures, subject items, sub-items and elements are approved by the federal law on the federal budget for the next financial year.

Federal budget expenditures are classified by economic role and by functional purpose(Figure 9).

Figure 9. - Classification of budget expenses

Federal budget expenditures for the economic role in the reproduction process represent costs associated with the financing of material production and the maintenance of the non-productive sphere (current and capital expenditures).

By functional purpose, federal budget expenditures represent the costs of maintaining the administrative apparatus, financing the national economy, socio-cultural events, national defense, law enforcement, fundamental research, etc.

Federal budget funds are used to finance activities of regional and local importance, included in targeted regional and local programs.

The budget of a constituent entity of the Russian Federation is a consolidated budget, which includes the regional budget itself, as well as the district budget (the so-called local budgets).

Expenditures of the budgets of the constituent entities of the Russian Federation are funds allocated from the budget fund to provide financial support for the tasks and functions of the constituent entities of the Russian Federation. State authorities of the constituent entities of the Russian Federation, local governments, taking into account existing financial capabilities, have the right to increase the standards of financial costs for the provision of state and municipal services. The composition of expenditures of such a budget differs from the federal budget in that it does not contain expenditures on national defense, international activities, fundamental scientific research, prevention and response to emergencies, servicing public external debt, or replenishing government stocks and reserves. Otherwise, the budget expenditures of a constituent entity of the Russian Federation coincide with the classifications of federal budget expenditures and are financed both from their own sources of income and from the federal budget in the form of grants, subsidies, etc.

The consolidated budget of a subject of the Russian Federation consists of the budget of the subject itself and the set of budgets of municipalities located on its territory. The consolidated budget of the region is presented in Figure 10.

The budgets of the constituent entities of the Russian Federation are discussed and approved by the legislative body of the constituent entities of the Russian Federation in the form of a law, after which the executive bodies of the constituent entities of the Russian Federation receive the rights to use budget funds.

Figure 10. - Consolidated budget of a constituent entity of the Russian Federation

Local budget expenditures are funds allocated to financially support the tasks and functions of local government. The expenditure portion of local budgets most clearly reflects the consequences of economic and social processes in the country.

The expenditure part of local budgets includes financing of expenses related to resolving issues of local importance.

In accordance with the Budget Code of the Russian Federation, the following types of expenses are financed exclusively from local budgets (Figure 11):

The procedure for executing the expenditure portion of the local budget is established by the charter of the municipality or other legal act of the local government body.

So, budget expenditures represent funds allocated to finance national expenditures. These funds are used to improve the standard of living in the country and ensure the development of all sectors of the economy.

Figure 11. - Expenditures financed from local budgets

Russian New University

Nizhny Novgorod branch

Course work

by academic discipline:

Finance.

Subject : Budget expenditures at various levels.

Completed:

3rd year student of group E-1-01

Tsybin S.V.

Checked:

Ph.D. E.A. Lazarev

Nizhny Novgorod 2004

Introduction ………………………………………………………………….…….3

Chapter 1. The economic essence of Russian budget expenditures... ………...…5

1.1. Classification of Russian budget expenditures ………………………..……7

A) functional; ………………………………………………….………9

B) economic; …………………………………………………….…..….11

B) departmental... ………………………………………………….….……13

1.2. Federal budget expenditures ……………………………………..14

1.3. Expenditures of the budgets of the constituent entities of the Russian Federation ………………………………...….17

1.4. Local budget expenditures ………………………...………………..21

Chapter 2. Analysis of the dynamics of consolidated expenses

budget of the Russian Federation ………………………………………………….………………..…26

2.1. Analysis of the expenditure side of the federal budget of the Russian Federation ………...……26

2.2. Analysis of expenses of a separate subject of the Russian Federation ………………………….30

2.3. Comparative analysis of expenditure items of the Russian Federation and the USA... ………….32

Chapter 3. Main directions for effective

use of funds from the state budget of the Russian Federation. ……….…..….…36

Conclusion ……………………………………………………………..……..37

Bibliography ……………………………………………………....…..39

Application ……………………………………………………...……….……40

Introduction

The central place in the financial system of any state is occupied by the state budget - this is the monetary fund used by the government to finance its activities, with the help of which the state influences economic processes. The state budget interacts with other parts of the financial system, redistributing funds in favor of needy funds (usually by transferring funds from the central state fund to municipal financial funds, state enterprise funds and special government funds).

As an economic category state Russian budget represents a set of economic (monetary) relations that arise in the process of formation, planned distribution and use of the state centralized fund of funds. Budgetary relations arise between the state and legal entities and individuals regarding the formation and use of a centralized fund of monetary resources intended to finance the national economy, socio-cultural events, defense needs, government controlled, material incentives.

The concentration of financial resources in the budget is necessary for the successful implementation of the state's financial policy. The budget is a form of education and expenditure of funds. The totality of all types of budgets forms the state budget system.

The budget system of the Russian Federation consists of three links and includes:

- federal budget ;

- budgets of the constituent entities of the Russian Federation(21 republican budgets within the Russian Federation, 55 regional and regional budgets, city budgets of Moscow and St. Petersburg, 10 district budgets of autonomous okrugs, budget of the Autonomous Jewish Region);

- local budgets(about 29 thousand local budgets: city, district, township, rural).

The budgets of lower-level self-government bodies do not include their income and expenses in the budgets of higher levels.

The state budget consists of 2 interconnected parts that complement each other: revenue and expenditure.

The revenue part shows where funds come from to finance the activities of the state, which sections of society contribute more of their income. The income structure is variable and depends on specific economic conditions development of the country, market conditions and ongoing economic policy politicians. Any change in the structure of budget revenues reflects changes in economic processes.

The expenditure part shows for what purposes the funds accumulated by the state are directed.

State budget expenditures– these are economic relations arising in connection with the distribution of the state’s funds and its use according to sectoral, target and territorial purposes. The category of budget expenditures is manifested through specific types of expenditures, each of which can be characterized from qualitative and quantitative aspects. A qualitative characteristic allows us to establish the economic nature and social purpose of each type of budget expenditure, while a quantitative characteristic allows us to establish their value.

Budget expenditures represent costs arising in connection with the performance by the state of its functions. These costs express the economic relations on the basis of which the process of using the funds of the centralized fund of state funds in various directions occurs. The expenditure side covers the entire economy, since the state takes into account the economic interests of society as a whole. The amount and structure of federal budget expenditures are influenced by many factors, such as: government structure, external and domestic politics state, the general level of the economy, the level of well-being of the population, the size of the public sector in the economy and many other factors. The main expenditure items of the Russian Federation budget are: administration, defense, maintaining law and order, social security, healthcare, culture, education, as well as servicing external public debt.

This paper examines the structure of budget expenditure items, their classification, composition and distribution. Attention is also paid to the dynamics of change consumable parts budgets over several years. A comparative analysis of expenditure items in the budgets of the Russian Federation and the United States seems quite important.

Chapter 1. Economic essence of expenditures of the state budget of the Russian Federation

Budget expenses – these are funds allocated to financially support the tasks and functions of the state and local government. These costs express the economic relations on the basis of which the process of using the funds of the centralized fund of state funds in various directions occurs.

Through budget expenditures, budget recipients are financed - organizations in the production and non-production spheres that are recipients or managers of budget funds. The budget determines only the amount of budget expenditures by cost items, and direct expenditures are made by budget recipients. In addition, at the expense of the budget, budget funds are redistributed across levels of the budget system through grants, subventions, subsidies and budget loans. Budget expenses are mostly irrevocable. Only budget credits and loans can be provided on a repayable basis.

Budget financing is based on specific principles. First of all, the main task of budget financing is to obtain maximum effect at minimum cost, which requires economy and efficiency in the use of funds. Efficiency and economy in the use of budget funds means that when drawing up and executing budgets, authorities and recipients of budget funds must proceed from the need to achieve specified results using the amount of funds determined by the budget. If additional financing is necessary, the budget recipient must rely on its own funds or look for additional sources of financing.

The targeted nature of the use of expenses involves the use of assignments in approved areas. If the recipient of budget funds does not fulfill the conditions determined by the law (decision) on the budget, the Minister of Finance of the Russian Federation, the head of the relevant executive body of the constituent entity of the Russian Federation or local government at any stage of budget execution is obliged to block expenses associated with the fulfillment of certain conditions, henceforth until the specified conditions are met in accordance with the procedure established by the Code. Misuse of appropriations may result in the return of funds already used.

The next principle of budget financing is to allocate funds to the extent that production targets are met, as well as taking into account previously allocated allocations. For organizations in the production sector based on prepared financial plans. In the social sphere, taking into account approved estimates.

1.1. Classification of state budget expenditures

The economic essence of budget expenditures is manifested in many types of expenditures. Each type of expense has qualitative and quantitative characteristics. At the same time, a qualitative characteristic, reflecting the economic nature of the phenomenon, allows us to establish the purpose of budget expenditures, and a quantitative one - their value. The structure of budget expenditures is established annually directly in the budget plan and depends on the economic situation and public priorities.

Budget expenses are expressed in monetary terms and distributed in strict accordance with approved items. The Government of the Russian Federation distributes centralized financial resources strictly for their intended purpose:

By territorial;
by industry;
on target.

The state, using funds from the budget, finances various social projects, industry, agriculture, medicine, defense and other sectors of the national economy. Funds are also allocated from the budget to pay for national needs, etc.

The federal budget finances expenses intended for:

To ensure the activities of the institutions of supreme state power in the Russian Federation (President, Accounts Chamber, Federal Assembly, Central Election Commission, etc.);
to maintain the functioning of the judicial system of the Russian Federation;
for liquidations natural Disasters and consequences of emergency situations;
to ensure state security;
to support the transport industry and the energy sector (including financial support for nuclear energy);
for conducting space research;
to finance scientific and technical developments;
for geological surveys, the purpose of which is to develop new earthly subsoil and replenish state reserves with precious stones and metals, etc.

State budget expenditures have certain characteristics and differ from each other as follows:

1. By qualitative indicators (from these expenses you can get an idea of ​​their economic component).
2. By quantitative indicators (these expenses make it possible to determine the level of budget financing and, accordingly, the size of government costs).

Budget expenses are costs generated in connection with the performance by the state and local governments of their constitutional and statutory functions.
Expenditures of budgets at all levels of the budget system of the Russian Federation are formed taking into account:

• minimum state social standards;
• standards of financial costs for the provision of public

services;

• unified methodological basis for calculating the minimum budgetary provision.

Minimum state social standards are government services, the provision of which to citizens on a free and irrevocable basis through financing from the budgets of all levels of the budget system and the budgets of state extra-budgetary funds is guaranteed by the state at a certain minimum acceptable level throughout the Russian Federation.
At the same time, state authorities and local governments have the right to increase the standards of financial costs for the provision of state and municipal services, taking into account available capabilities.
Minimum budgetary provision is the minimum acceptable cost of state or municipal services in monetary terms provided by state authorities or local governments per capita at the expense of budget funds.
Budget expenditures depend on the volume of budget revenues. However, the state’s needs for new expenses initiate the search for new additional sources income receipts. Therefore, expenses are in an organic relationship with budget system revenues.
Due to the fact that budget funds have numerous channels of use, there is a need to classify them, and in accordance with several criteria.
Depending on their economic content, budget expenditures are divided into current and capital. This division is established by the economic classification of budget expenditures of the Russian Federation.
Capital expenditures of budgets are part of budget expenditures, including:

1. funds for innovation and investment activity(expense items intended for investments in existing or newly created legal entities in accordance with the approved investment program);
2. - funds provided as budget loans for investment purposes to legal entities;
3. - expenses for major (restoration) repairs and other expenses associated with expanded reproduction;
4. - expenses, the implementation of which creates or increases property owned by the Russian Federation, constituent entities of the Russian Federation, municipalities;
5. - other budget expenses included in its capital expenses in accordance with the economic classification of expenses.

A development budget can be formed as part of capital expenditure budgets. The development budget includes allocations for innovation and investment activities related to capital investments in the socio-economic development of territories, for its own environmental programs and protection measures environment(in excess of allocations allocated from environmental extra-budgetary funds), other expenses for expanded reproduction. The procedure and conditions for the formation of the development budget are determined by federal law.
Current budget expenses are the part of expenses that provides:

• current functioning of state authorities, local governments, budgetary institutions;
• providing state support to other budgets and individual sectors of the economy in the form of grants, subsidies and subventions for current functioning;
• other budget expenses not included in capital expenses in accordance with budget classification RF.

Depending on the form, budget expenses are divided into:

1. allocations for the maintenance of budgetary institutions;
2. funds to pay for goods, works and services performed by individuals and legal entities under state or municipal contracts;
3. transfers to the population, including allocations:

• for the implementation by local government bodies of the obligation

payments to the population established by law;

• implementation of certain state powers transferred to other levels of government;
• compensation for additional expenses arising as a result of decisions made by public authorities, leading to an increase in budget expenses or a decrease in budget revenues;

1. budget loans to legal entities (including tax credits, deferments and installments for the payment of taxes and payments and other obligations);
2. subventions and subsidies to individuals and legal entities;
3. investments in the authorized capital of existing or newly created legal entities;
4. budget loans, grants, subventions and subsidies to budgets of other levels, state extra-budgetary funds;
5. loans and borrowings within the country through government external borrowings;
6. loans to foreign countries;
7. funds for servicing debt obligations, including state or municipal guarantees.

A significant share of budget expenditures consists of expenditures of budgetary institutions used exclusively for: wages; transfer of insurance contributions to extra-budgetary funds; transfers to the population; travel and other compensation payments to employees; payment for goods, works and services under concluded state or municipal contracts; payment for goods, works and services in accordance with approved estimates without concluding such contracts.
It should be borne in mind that all purchases of goods, works and services worth more than 2000 minimum wages (minimum wages) are carried out exclusively on the basis of state or municipal contracts. The legislation establishes that a state or municipal contract is an agreement concluded by a state authority or local government body, a budgetary institution, an authorized body or organization on behalf of the Russian Federation, a subject of the Russian Federation or a municipal entity with individuals and legal entities in order to meet state or municipal needs, provided for in budget expenditures. Contracts are usually placed on a competitive basis and include a mandatory condition on the payment of a penalty if the contractor violates the terms of the contract.
A state or municipal order is a set of concluded contracts for the supply of goods, production of work, and provision of services at the expense of budgetary funds.
Budgetary institutions, government bodies of the Russian Federation, government bodies of constituent entities of the Russian Federation and local governments, state and municipal customers are required to maintain procurement registers.
Budgetary institutions, government bodies of all levels, state and municipal customers making purchases in an amount of no more than 2000 minimum wages for one type of goods or services (for one contract), maintain procurement registers that indicate the following information: short name of the purchased goods, works and services; name and location of suppliers, contractors and service providers; price and date of purchase.
The budget law may define mandatory conditions for the recipient of budget funds to finance specific expenses provided for by the budget law. If the recipient of budget funds does not fulfill these conditions, the Minister of Finance of the Russian Federation, the head of the relevant executive body, at any stage of budget execution, blocks expenses associated with the fulfillment of certain conditions until they are fulfilled.
An important item of budget expenditures are transfers to the population - mainly funds to finance mandatory payments to the population: pensions, scholarships, benefits, compensation, and other social payments.
Budget expenses are carried out not only in the form of gratuitous and irrevocable allocations, but also in the form of budget loans. Such a loan can be provided to a legal entity that is not a state or municipal unitary enterprise, on the basis of an agreement concluded in accordance with the civil legislation of the Russian Federation, taking into account the provisions of the Budget Code and other regulations, only if the borrower provides security for the fulfillment of its obligation to repay the specified loan .
The law regulates ways to ensure the fulfillment of loan repayment obligations. They can only be:

• bank guarantees;
• guarantees (except for guarantees of executive authorities of constituent entities of the Russian Federation);
• pledge of property, including in the form of shares, other securities, shares, in the amount of at least 100% of the loan provided.

At the same time, the security for fulfillment of obligations must have high liquidity. The assessment of property provided as security for obtaining a loan is carried out in accordance with the law.
The Russian Federation, a constituent entity of the Russian Federation, and a municipal entity are represented in the loan agreement by state bodies and local government bodies. These bodies are authorized in accordance with federal laws, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, regulations of constituent entities of the Russian Federation, regulations of municipalities.
A budget loan is provided after an audit of the financial condition of the recipient by a financial or authorized body. The recipient can be verified at any time during the loan period. Checks of the intended use of the loan are also carried out.
When approving the budget for the next year, the following is indicated:

• the purposes for which a budget loan can be provided;
• conditions and procedure for providing budget loans;
• limits on their provision for a period within a year and for a period beyond the budget year;
• restrictions on subjects of using loans.

A report on the provision and repayment of budget loans is attached to the budget execution report.
Funds from the repayment of budget loans are reflected in budget expenditures with a minus sign. In other words, the return of budget loans, as well as fees for using them, are equal to mandatory payments to the budget.
A budget loan can be provided only to those legal entities that do not have overdue debt on previously provided budget funds on a repayable basis.
Budget loans (interest-bearing and interest-free) are provided to state or municipal unitary enterprises on the terms and within the limits provided by the budgets.
Bodies executing the budget or other authorized bodies maintain registers of all budget loans provided by recipients of budget loans.
As noted earlier, the forms of providing state support to other budgets and individual sectors of the economy for their current functioning are, among other things, subsidies and subventions.
Subvention - budget funds provided to a budget of another level or to a legal entity on a gratuitous and irrevocable basis for the implementation of certain targeted expenses.
Subsidy - budget funds provided to a budget of another level, to an individual or legal entity on the basis of shared financing of targeted expenses.
The provision of subsidies and subventions, including for the allocation of grants and provision of material support, is allowed from:

• the federal budget - in cases provided for by federal and regional target programs and federal laws;
• budgets of constituent entities of the Russian Federation - in cases provided for by federal target programs, federal laws, regional target programs and laws of constituent entities of the Russian Federation;
• local budgets - in cases provided for by federal target programs, federal laws, regional target programs, laws of constituent entities of the Russian Federation and decisions of representative bodies of local self-government.

In cases of misuse of subsidies and subventions within the established time limits, as well as in cases of their non-use within these periods, they are subject to return to the appropriate budget.
At the stage of budget execution, so-called cash gaps often arise - a temporary need for cash, caused by the fact that expenses of a particular budget need to be financed before the intended revenues arrive in this budget. In this case, they resort to such a method of budget regulation as a budget loan. A budget loan is budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than six months within a financial year. A budget loan differs from subventions and subsidies in that the latter are used at the stage of budget formation, and the former at the stage of its execution.
The most important item of budget expenditure is the financing of budget investments. Expenses for such financing are provided for by the corresponding budget, subject to their inclusion in the federal target program, regional target program, or by decision of the relevant executive authorities.
Objects of state property of constituent entities of the Russian Federation and municipal property can be included in the federal targeted investment program, federal target programs at the stage of drawing up, consideration and approval of the federal budget.
Federal investment projects that involve expenses in the amount of more than 200,000 minimum wages are subject to review and approval in the manner prescribed for the financing of federal target programs.
The provision of budgetary investments to legal entities that are not state or municipal unitary enterprises entails the emergence of the right of state or municipal ownership to an equivalent part of the authorized capital and property of these legal entities and is formalized by the participation of the Russian Federation, constituent entities of the Russian Federation and municipalities in the authorized capitals of such legal entities in accordance with civil legislation of the Russian Federation.
Objects created with the involvement of budgetary funds in the equivalent part of the authorized capital and property are transferred to the management of state or municipal property management bodies.
Budget legislation provides for the creation of reserve funds of executive authorities and local self-government in the expenditure side of the budgets. At the same time, the legislation contains a rule prohibiting the creation of reserve funds for legislative bodies and deputies of legislative bodies.
The size of these funds in the federal budget cannot exceed 3% of approved budget expenditures. The size of reserve funds in the budgets of the constituent entities of the Russian Federation is established by their legislative authorities when approving budgets for the next year.
The intended purpose of the reserve funds is to finance unforeseen expenses, including for emergency restoration work to eliminate the consequences of natural disasters and other emergencies.
The federal budget for the next year provides for the creation of a reserve fund of the President of the Russian Federation in the amount of no more than 1% of approved budget expenditures. The reserve fund of the President of the Russian Federation is spent on the basis of a written order of the President to finance unforeseen expenses, as well as additional expenses provided for by his decrees. The legislation especially emphasizes that spending funds from the reserve fund of the President of the Russian Federation for holding elections, referendums, and covering the activities of the President of the Russian Federation is not allowed.
The Budget Code, as well as Decree of the Government of the Russian Federation dated June 12, 1998 No. 438 “On measures to strengthen financial discipline,” provide for a special procedure for financing expenses not provided for in the budget. If a federal law or other legal act is adopted that provides for an increase in funding for existing types of expenses or the introduction of new types of budget expenses that were not financed by any budget before the adoption of the legislative act, this act must contain rules defining the sources and procedure for financing new types of budget expenses, including, if necessary, the transfer of financial resources for new types of expenses to budgets of other levels.
This eliminates the possibility of increasing budget deficits.
These types of expenses begin to be financed only from the beginning of the next financial year, subject to their inclusion in the budget law or in this year after making appropriate changes to the law, if there are appropriate sources of additional budget revenues and (or) when expenses are reduced on individual budget items.
If the costs of implementing a legislative act are not fully covered by sources of financing, the budget law indicates in which part the funding of the legislative act is not provided.
Laws and other legal acts that determine the expenditure of budget funds have different legal force. Thus, if legislative or other legal acts establish budgetary obligations not provided for by the budget law, the budget law is applied.
There are cases when, in the process of budget execution, there is an increase in the volume of budget revenues in excess of the amounts established by law about the budget. Additional income is primarily used to finance expenses provided for by legislative and regulatory acts that are not provided or not fully provided by sources of financing.
Budgets of various levels of the budgetary system of the Russian Federation have certain powers to finance expenses. In this sense, expenses are divided into four groups:

1. expenses financed exclusively from the federal budget;
2. expenses jointly financed from the federal budget, budgets of constituent entities of the Russian Federation and budgets of municipalities;
3. expenses financed exclusively from the budgets of constituent entities of the Russian Federation;
4. expenses financed exclusively from local budgets.

The following functional types of expenses are financed exclusively from the federal budget:

• ensuring the activities of the President of the Russian Federation, the Federal Assembly of the Russian Federation, the Accounts Chamber of the Russian Federation, the Central Election Commission of the Russian Federation, federal executive authorities and their territorial bodies, other expenses for national government according to the list determined when the law on the federal budget for the next year is approved;
• functioning of the federal judicial system;
• carrying out international activities in general federal interests (financial support for the implementation of interstate agreements and agreements with international financial organizations, international cultural, scientific and information cooperation of federal executive authorities, contributions of the Russian Federation to international organizations, other expenses in the field of international cooperation determined upon approval of the law on federal budget for the next year);
• national defense and ensuring state security, implementing the conversion of defense industries;
• fundamental research and promotion of scientific and technological progress;
• state support for railway, air and sea transport;
• government support for nuclear energy;
• liquidation of consequences of emergencies and natural disasters on a federal scale;
• exploration and use of outer space;
• maintenance of institutions that are federally owned or administered by government bodies of the Russian Federation;
• formation of federal property;
• servicing and repaying the government debt of the Russian Federation;
• compensation to state extra-budgetary funds for the costs of paying state pensions and benefits, other social benefits to be financed from the federal budget;
• replenishment of state reserves of precious metals and precious stones, state material reserves;
• holding elections and referendums in the Russian Federation;
• federal investment program;
• ensuring the implementation of decisions of federal authorities that led to an increase in budget expenditures or a decrease in budget revenues of budgets of other levels;
• ensuring the implementation of certain state powers transferred to other levels of government;
• financial support for constituent entities of the Russian Federation;
• official statistical records;
• other expenses.

Jointly from the federal budget, budgets of the constituent entities of the Russian Federation
and local budgets finance the following expenses:

• state support for industries (except for nuclear energy), construction and construction industry, gasification and water supply, Agriculture, automobile and river transport, communications and road facilities, subways;
• ensuring law enforcement activities;
• R&D ensuring scientific and technological progress;
• ensuring social protection of the population;
• ensuring environmental protection, conservation and reproduction natural resources, provision of hydrometeorological activities;
• ensuring prevention and response to emergencies and natural disasters on an interregional scale;
• development of market infrastructure;
• ensuring the development of federal and national relations;
• ensuring the activities of election commissions of the constituent entities of the Russian Federation;
• ensuring the activities of the media;
• ensuring receipt general education;
• other expenses that are jointly managed.

The distribution and assignment of these expenses between budgets of different levels is carried out by agreement of government bodies at the corresponding levels and approved by laws on budgets.
The following expenses are financed exclusively from the budgets of the constituent entities of the Russian Federation:

• ensuring the functioning of legislative and executive authorities of the constituent entities of the Russian Federation;
• servicing and repaying public debt of the constituent entities of the Russian Federation;
• holding elections and referendums of constituent entities of the Russian Federation;
• ensuring the implementation of regional target programs;
• formation of state property of the constituent entities of the Russian Federation;
• implementation of international and foreign economic relations of constituent entities of the Russian Federation;
• maintenance and development of enterprises, institutions and organizations under the jurisdiction of the authorities of the constituent entities of the Russian Federation;
• ensuring the activities of the media of the constituent entities of the Russian Federation;
• providing financial assistance to local budgets;
• ensuring the implementation of certain state powers transferred to the municipal level;
• compensation for additional expenses arising as a result of decisions taken by the authorities of the constituent entities of the Russian Federation, leading to an increase in budget expenses or a decrease in budget revenues of local budgets;
• other expenses related to the exercise of powers of constituent entities of the Russian Federation.

The following expenses are financed exclusively from local budgets:

• maintenance of local government bodies;
• formation of municipal property and its management;
• organization, maintenance and development of enterprises, institutions and organizations of education, healthcare, culture, physical culture and sports, the media, other institutions and organizations that are municipally owned or administered by local governments;
• maintenance of municipal bodies for the protection of public order;
• organization, maintenance and development of municipal housing and communal services;
• municipal road construction and maintenance of local roads;
• improvement and landscaping of municipal territories;
• organization of disposal and processing of household waste (except for radioactive waste);
• maintenance of burial sites under the jurisdiction of municipal authorities;
• organization of transport services for the population and institutions that are municipally owned or administered by local governments;
• ensuring fire safety;
• environmental protection in the territories of municipalities;
• implementation of targeted programs adopted by local governments;
• servicing and repaying municipal debt;
• targeted subsidies to the population;
• maintenance of municipal archives;
• holding municipal elections and local referendums;
• financing the implementation of other decisions of local government bodies and other expenses related to issues of local importance, determined by representative bodies of local government in accordance with the budget classification of the Russian Federation.

And agreements should take place in the next financial year at the expense of the relevant budgets.

Budget expenditures, depending on their economic content, are divided into current expenditures and capital expenditures.

Capital Expenditures budgets - a part of budget expenditures that ensures innovation and investment activities, including expenditure items intended for investments in existing or newly created legal entities in accordance with the approved investment program, funds provided as budget loans for investment purposes to legal entities, expenses for carrying out capital (restoration) repairs and other expenses associated with expanded reproduction, expenses during the implementation of which property is created or increased, owned respectively by the Russian Federation, constituent entities of the Russian Federation, municipalities, other budget expenses included in capital budget expenses in accordance with the economic classification expenditures of the Russian Federation budgets. A development budget can be formed as part of capital expenditure budgets.

Current expenses budgets - part of budget expenditures that ensures the current functioning of state authorities, local governments, budgetary institutions, the provision of state support to other budgets and individual sectors of the economy in the form of grants, subsidies and subventions for the current functioning, as well as other budget expenditures not included in capital expenses in accordance with the budget classification of the Russian Federation.

Budget funds are provided in the following forms:

• allocations for the maintenance of budgetary institutions;
• funds to pay for goods, works and services performed by individuals and legal entities under state or municipal contracts;
• transfers to the population;
• allocations for the implementation by local government bodies of mandatory payments to the population established by the legislation of the Russian Federation, the legislation of the constituent entities of the Russian Federation, legal acts of representative bodies of local government;
• appropriations for the implementation of certain state powers transferred to other levels of government;
• allocations to compensate for additional expenses arising as a result of decisions made by government bodies, leading to an increase in budget expenditures or a decrease in budget revenues;
• budget loans to legal entities (including tax credits, deferments and installments for the payment of taxes and payments and other obligations);
• subventions and subsidies to individuals and legal entities;
• investments in the authorized capital of existing or newly created legal entities;
• interbudgetary transfers;
• loans and borrowings within the country through government external borrowings;
• loans to foreign countries;
• funds for servicing debt obligations, including state or municipal guarantees.

Budget institutions spend budget funds exclusively:

• for wages in accordance with concluded employment contracts and legal acts regulating the amount wages relevant categories of workers;
• transfer of insurance contributions to state extra-budgetary funds;
• transfers to the population paid in accordance with federal laws, laws of constituent entities of the Russian Federation and legal acts of local governments;
• travel and other compensation payments to employees in accordance with the legislation of the Russian Federation;
• payment for goods, works and services under concluded state or municipal contracts.

All purchases of goods, works and services worth more than 2,000 times the minimum wage are carried out exclusively on the basis of state or municipal contracts. Financing for the placement of an order for the supply of goods, performance of work, provision of services for state or municipal needs can be carried out at the expense of funds provided for by the expenditures of the relevant budget or the corresponding budgets of state extra-budgetary funds to ensure state needs, or at the expense of funds provided for by the expenditures of the local budget to provide municipal needs.

Expenses for financing budget investments are provided for by the corresponding budget, subject to their inclusion in the federal target program, regional target program, or in accordance with the decision of the federal executive body, the executive body of the constituent entity of the Russian Federation or local government body.

Federal investment projects that involve expenses in the amount of more than 200,000 minimum wages are subject to review and approval in the manner prescribed for financing federal target programs.

The expenditure side of budgets at all levels of the budget system of the Russian Federation provides for the creation of reserve funds of executive authorities and reserve funds of local governments. In the expenditure side of budgets at all levels of the budget system of the Russian Federation, the creation of reserve funds of legislative (representative) bodies and deputies of legislative (representative) bodies is prohibited. The size of reserve funds in the federal budget cannot exceed 3% of approved federal budget expenditures.

The federal budget for the next financial year provides for the creation of a reserve fund of the President of the Russian Federation in the amount of no more than 1% of approved federal budget expenditures. The funds from the reserve fund of the President of the Russian Federation are spent on financing unforeseen expenses, as well as additional expenses provided for by decrees of the President of the Russian Federation. The expenditure of funds from the reserve fund of the President of the Russian Federation is carried out on the basis of a written order of the President of the Russian Federation.

At the same time, spending funds from the reserve fund of the President of the Russian Federation on holding elections, referendums, and covering the activities of the President of the Russian Federation is not allowed.

Expenditure obligations of the Russian Federation

Expenditure obligations of a constituent entity of the Russian Federation

a) on issues of local importance, as well as the conclusion by a municipal entity or on behalf of a municipal entity of contracts (agreements) on these issues;
b) when local government bodies exercise certain state powers.

Expenditure obligations of a municipality arising as a result of the adoption of regulatory legal acts of local government bodies when these bodies exercise certain state powers in accordance with federal laws (laws of a constituent entity of the Russian Federation) are fulfilled through subventions from the regional compensation fund.

Local self-government bodies independently determine the amount and conditions of remuneration for deputies, elected officials of local self-government exercising their powers on a permanent basis, municipal employees, employees of municipal unitary enterprises and institutions.

In a municipality that receives subsidies from the budget of a constituent entity of the Russian Federation in accordance with clause 3 of Art. 138 or subsidies from the budget of the municipal district in accordance with paragraph 4 of Art. 142 of the Budget Code of the Russian Federation, the amount of remuneration for deputies, elected officials of local self-government exercising their powers on a permanent basis, municipal employees, employees of municipal unitary enterprises and institutions is set no higher limit values established by the law of the subject of the Russian Federation.

Local government bodies do not have the right to establish and fulfill expenditure obligations related to the resolution of issues within the competence of federal government bodies, government bodies of constituent entities of the Russian Federation, except for cases established respectively by federal laws and laws of constituent entities of the Russian Federation.

Local government bodies have the right to establish and fulfill expenditure obligations related to the resolution of issues not within the competence of local government bodies of other municipalities, government bodies, and not excluded from their competence by federal laws and laws of constituent entities of the Russian Federation, only if they have their own financial resources ( with the exception of subsidies, subventions and grants provided from the federal budget and the budget of a constituent entity of the Russian Federation).

Conducted in the manner established by the executive body of state power of the constituent entity of the Russian Federation.

The register of expenditure obligations of a constituent entity of the Russian Federation, as well as a set of registers of expenditure obligations of municipalities that are part of a constituent entity of the Russian Federation, are submitted to the Ministry of Finance of the Russian Federation in the manner established by this Ministry.

The register of expenditure obligations of the municipality is maintained in the manner established by the local administration. It is submitted by the local government body to the executive body of state power of the constituent entity of the Russian Federation in the manner established by this executive body.