Interbudgetary transfers: concept, forms, conditions of provision. Subsidies and other interbudgetary transfers provided to local budgets from the budgets of the constituent entities of the Russian Federation Interbudgetary transfers provided free of charge
Regional interbudgetary transfers are provided in the form:
· financial assistance to local budgets. This type interbudgetary transfers exist in the form of subsidies from regional funds for financial support of settlements and subsidies from regional funds for financial support of municipal districts (city districts), as well as subsidies;
· subventions to local budgets from regional budget compensation funds, including autonomous okrugs;
· funds transferred to the federal budget in connection with repayment and servicing government debt subject of the Russian Federation before federal authorities state power;
· budget loans to local budgets.
Upon receipt financial resources from the subject's budget, all rules established by the legislation on taxes and fees are observed.
Budget loans from the budgets of the constituent entities are provided on the condition that there are no overdue debts of municipal bodies to the budget.
Another mandatory condition is that the loan should be used only by local authorities and for its intended purpose. Providing loans to legal entities is not permitted.
In case of non-compliance by authorities local government conditions for the provision of interbudgetary transfers from the budget of a constituent entity of the Russian Federation, the body executing the budget of a constituent entity of the Russian Federation has the right to suspend the provision of interbudgetary transfers.
Subventions continue to be an exception to this list. A regional fund for financial support of settlements is formed as part of the budget of the subject in order to equalize, based on the number of residents, the financial capabilities of local government bodies of settlements to exercise their powers to resolve issues of local importance.
The procedure for the formation of a regional fund for financial support of settlements and the distribution of subsidies from the specified fund, including the procedure for calculating and establishing additional standards for income tax deductions replacing the specified subsidies individuals to local budgets, approved by the law of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation.
The volume of the regional fund for financial support of settlements is approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation for the next financial year.
All urban settlements (including urban districts) and rural settlements of a constituent entity of the Russian Federation have the right to receive subsidies from the regional fund for financial support of settlements.
In this case, the amount of the specified subsidy is determined for each settlement of the subject based on the number of residents of the settlement per capita.
27. Conditions for the provision of interbudgetary transfers to the budgets of constituent entities of the Russian Federation from the federal budget.
Article 130. Conditions for the provision of interbudgetary transfers from the federal budget
· Subjects of the Russian Federation, whose budgets received funds from the federal budget (with the exception of subventions, as well as subsidies provided to the constituent entities of the Russian Federation from the Investment Fund of the Russian Federation) for 2 of the last 3 reporting financial years exceeded 5% of own income consolidated budget of a constituent entity of the Russian Federation, have no right conclude agreements on cash services for budget execution of a constituent entity of the Russian Federation, the budgets of territorial state extra-budgetary funds and the budgets of its constituent municipalities by the executive body of state power of the constituent entity of the Russian Federation.
· Subjects of the Russian Federation, in whose budgets share of interbudgetary transfers from the federal budget (with the exception of subventions, as well as subsidies provided to constituent entities of the Russian Federation from the Investment Fund of the Russian Federation) during two of the last three reporting financial years exceeded 20% the volume of own revenues of the consolidated budget of a constituent entity of the Russian Federation, have no right:
1) establish and fulfill expenditure obligations not related to the resolution of issues related to the Constitution of the Russian Federation and federal laws to the powers of state authorities of the constituent entities of the Russian Federation;
2) exceed the standards established by the Government of the Russian Federation for the formation of expenses for remuneration of state civil servants of a constituent entity of the Russian Federation and (or) the maintenance of government bodies of a constituent entity of the Russian Federation. (see text in the previous edition)
· In the constituent entities of the Russian Federation, in whose budgets share of interbudgetary transfers(with the exception of subventions, as well as subsidies provided to constituent entities of the Russian Federation from the Investment Fund of the Russian Federation) from the federal budget during two of the last three reporting financial years exceeded 60% volume of own revenues of the consolidated budget of a constituent entity of the Russian Federation, the following additional measures:
1) signing agreements with the Ministry of Finance of the Russian Federation on measures to improve the efficiency of use budget funds and increasing tax and non-tax revenues of the budget of a constituent entity of the Russian Federation;
2) organizing the execution of the budget of a constituent entity of the Russian Federation with the opening and maintenance of personal accounts for the main managers, managers, recipients of budget funds of the constituent entity of the Russian Federation and chief administrators (administrators) of funding sources budget deficit subjects of the Russian Federation in the bodies of the Federal Treasury;
3) submission by the financial body of the subject of the Russian Federation to the Ministry of Finance of the Russian Federation, in the manner established by it, of documents and materials necessary for preparing a conclusion on compliance with the requirements of the budgetary legislation of the Russian Federation submitted to the legislative (representative) body of the subject of the Russian Federation of the draft budget of the subject of the Russian Federation for the next financial year and planning period;
4) conducting an annual external audit of the annual report on the execution of the budget of a constituent entity of the Russian Federation by the Accounts Chamber of the Russian Federation or Federal service financial and budgetary supervision;
If public authorities of the constituent entities of the Russian Federation fail to comply with the conditions for the provision of interbudgetary transfers from the federal budget, determined by the budget legislation of the Russian Federation, as well as in case of violation of the maximum values, the Ministry of Finance of the Russian Federation has the right to decide to suspend (reduce) in the manner established by it the provision of interbudgetary transfers (with the exception of subventions) to the relevant budgets of the constituent entities of the Russian Federation until they are brought into compliance with the requirements of the provisions stipulating the conditions for the provision of interbudgetary transfers.
28. Purpose of the federal budget, its main characteristics.
The budget plays an important economic, social, and political role in the reproduction process. The state influences the redistribution of national income between sectors. Through the budget, the state can influence weaker, non-monetary sectors (such as agriculture, culture, education, healthcare, etc.).
Federal budget– the form of formation and expenditure per financial year of funds intended to fulfill the expenditure obligations of the Russian Federation.
The federal budget is the main financial basis for the activities of government bodies of the Russian Federation. It concentrates the bulk of the financial resources generated at the disposal of these bodies.
Federal budget- the form of formation and expenditure of funds intended to support tasks and functions falling under the jurisdiction of the Russian Federation.
The formation of the federal budget is carried out through the mobilization of tax revenues, non-tax revenues, gratuitous transfers and other income.
The first function is associated with the generation of income, consisting of tax and non-tax revenues.
The main source of revenue is the income of economic entities received as a result of the redistribution of the national product.
The structure of budget revenues is not constant and depends on the economic development of the country in a certain period.
Another function is related to the targeted use of budget funds.
Finally, the third function involves the creation of controls associated with both the first and second functions. The targeted use of budget funds is subject to control. There is a special reporting form for this.
In accordance with the Budget Code of the Russian Federation, the budget has its own structure. The main components are budget revenues and expenses.
Income and expenses, in turn, are subject to grouping.
Budget classification The Russian Federation is a grouping of income, expenses and sources of financing budget deficits at all levels.
29. Composition of federal budget revenues and expenditures.
Tax revenues from the federal budget include:
· federal taxes and fees credited to the federal budget in accordance with federal legislation;
· regional taxes and fees credited to the federal budget in accordance with federal legislation;
· penalties and fines collected for violation tax legislation for certain types of taxes and fees subject to credit to the federal budget.
Non-tax revenues of the federal budget are:
· income from the use of federally owned property or from the activities of organizations under the jurisdiction of federal bodies executive branch;
· proceeds from sales intangible assets, credited to the federal budget;
· administrative fees and charges;
· penalties and funds received to compensate for damage caused to the Russian Federation;
· income from foreign economic activities; other non-tax income.
The federal budget may include gratuitous transfers from state extra-budgetary funds of the Russian Federation, from various organizations (residents and non-residents), from budgets of other levels of the budget system of the Russian Federation, and other gratuitous transfers.
Chapter 7, Article 50 Tax revenues of the FB.
· corporate income tax
· value added tax
excise taxes on ethyl alcohol from all types of raw materials
· excise taxes on alcohol-containing and alcoholic products
excise taxes on tobacco products
excise taxes on cars and motorcycles
· excise taxes on excisable goods and products imported into the territory of the Russian Federation
· mineral extraction tax
Regular payments for mining
· fee for the use of objects of aquatic biological resources
water tax
Article 51. Non-tax revenues of the FB:
· income from the use of property, which is state property of the Russian Federation
· income from the sale of property(except for shares and other forms of participation in capital, state reserves of precious metals and precious stones), which are in the state ownership of the Russian Federation
· part of the profit unitary enterprises created by the Russian Federation, remaining after paying taxes and other obligatory payments
· license fees
· customs duties and customs duties
· fees for the use of forests located on forest fund lands
· fees for the use of federally owned water bodies
· fees for the use of aquatic biological resources under intergovernmental agreements
· fees for negative impact on environment
· consular fees
patent fees
· fees for providing information on registered rights to real estate and transactions with it, issuing copies of contracts and other documents
· fees for reimbursement actual expenses related to consular actions
· recycling fees
· profit of the Central Bank of the Russian Federation remaining after paying taxes and other obligatory payments
Chapter 10. FB expenses.
The formation of expenditures of the budgets of the budgetary system of the Russian Federation is carried out in accordance with expenditure obligations stipulated by the delimitation of powers established by the legislation of the Russian Federation of federal government bodies, public authorities of the constituent entities of the Russian Federation and local governments, the execution of which is in accordance with the legislation of the Russian Federation, international and other treaties and agreements should occur in the next financial year (the next financial year and planning period) at the expense of the relevant budgets.
Funds from the federal budget are provided:
· financing the activities of the President of the Russian Federation, federal legislative, executive and judicial authorities; national defense funding and state security Russian Federation;
· state support for business entities operating in priority sectors of the economy for the Russian Federation (capital-intensive, innovative, strategic);
· financing the activities of government institutions producing on a non-market basis social services public consumption;
· financing of international activities in the general federal interests;
· elimination of consequences emergency situations and natural disasters of a federal scale;
· financial support for constituent entities of the Russian Federation and municipalities special status;
· financing of elections and referendums of the Russian Federation;
· servicing the public debt of the Russian Federation;
· financing of other expenses for the implementation of the powers of government bodies of the Russian Federation.
30. Sources of financing the federal budget deficit.
Included sources of domestic deficit financing
1. the difference between the funds received from the placement of government securities of the Russian Federation, the nominal value of which is indicated in the currency of the Russian Federation, and the funds allocated for their redemption;
2. the difference between budget loans received and repaid by the Russian Federation in the currency of the Russian Federation, provided to the federal budget by other budgets of the budget system of the Russian Federation;
3. the difference between loans received and repaid by the Russian Federation in the currency of the Russian Federation from credit institutions;
4. the difference between loans received and repaid by the Russian Federation in the currency of the Russian Federation from international financial organizations;
5. changes in the balances of funds in accounts for the accounting of federal budget funds during the corresponding financial year;
6. other sources of internal financing of the federal budget deficit.
Included other sources of internal financing
· proceeds from the sale of shares and other forms of participation in capital owned by the Russian Federation;
· proceeds from the sale of state reserves of precious metals and precious stones, reduced by the amount of payments for their acquisition;
· exchange rate differences from the federal budget;
· the amount of funds allocated for the execution of state guarantees of the Russian Federation in the currency of the Russian Federation, if the execution by the guarantor of state guarantees of the Russian Federation leads to the emergence of the right of recourse of the guarantor to the principal or is conditioned by the assignment to the guarantor of the rights of the beneficiary's claim against the principal;
· the difference between the funds received from the return of budget loans provided from the federal budget to legal entities and the amount of budget loans provided from the federal budget to legal entities in the currency of the Russian Federation;
· the difference between the funds received from the return of budget loans provided from the federal budget to other budgets of the budget system of the Russian Federation, and the amount of budget loans provided from the federal budget to other budgets of the budget system of the Russian Federation in the currency of the Russian Federation;
· the difference between the amount of funds received from the return of budget loans at the expense of funds from targeted foreign loans (borrowings) provided within the country, and the amount of budget loans provided within the country at the expense of funds from targeted foreign loans (borrowings);
· the difference between the amount of funds received from the return of other budget credits (loans) provided within the country and the amount of other budget loans provided within the country;
· the difference between funds transferred from the unified federal budget account and funds credited to the unified federal budget account when carrying out operations to manage fund balances on the unified federal budget account;
· other sources of internal financing of the federal budget deficit.
2. Composition sources of external deficit financing The federal budget includes:
1. the difference between funds received from the placement of government loans, which are carried out by issuing government securities on behalf of the Russian Federation and the nominal value of which is indicated in foreign currency, and funds aimed at repaying them;
2. the difference between loans received and repaid by the Russian Federation in foreign currency foreign countries, including targeted foreign loans (borrowings), taking into account funds transferred from the federal budget to Russian suppliers of goods and (or) services for export to repay the state external debt of the Russian Federation, international financial organizations, and other entities international law and foreign legal entities;
3. the difference between loans received and repaid by the Russian Federation in foreign currency from credit institutions.
Included other sources of external financing The federal budget deficit includes:
· the amount of funds allocated for the execution of state guarantees of the Russian Federation in foreign currency, if the execution by the guarantor of state guarantees of the Russian Federation leads to the emergence of the right of recourse of the guarantor to the principal or is conditioned by the assignment to the guarantor of the rights of claim of the beneficiary to the principal;
· the difference between the funds received by the federal budget to repay the principal debt of foreign states and (or) foreign legal entities to the Russian Federation, and funds aimed at providing government financial and government export loans;
· other sources of external financing of the federal budget deficit.
By interbudgetary transfers, the legislator understands funds provided by one budget of the budgetary system of the Russian Federation to another budget of the budgetary system of the Russian Federation (Article 6 of the Budget Code of the Russian Federation). In this case, we mean the legal regime for transferring funds from one budget to another budget. In this interpretation, interbudgetary transfers include certain forms of transferred budget funds from one level of the budget system to another level. Depending on which budget the transfers come from, they are classified as transfers from the federal budget, from the budget of a constituent entity of the Federation or the budget of a municipal entity. But in any case, they come from the budget of a higher level to the budget of a lower level. Based on the substantive attribute, interbudgetary transfers from the federal budget to the regional budgets of the budget system of the Russian Federation in accordance with Art. 129 bookmakers of the Russian Federation have following forms: subsidies to equalize the budgetary provision of the constituent entities of the Federation; subsidies to the budgets of the constituent entities of the Federation; Subventions to the budgets of the constituent entities of the Federation. In addition, other forms of interbudgetary transfers to the budgets of the constituent entities of the Federation are possible, as well as interbudgetary transfers to the budgets of state extra-budgetary funds. For example, in Art. 139.1 of the Budget Code of the Russian Federation defines the regime for providing other interbudgetary transfers in the form of subsidies from regional budgets to local budgets. Moreover, they should not exceed 10% of the total volume of interbudgetary transfers to local budgets from the budgets of the constituent entities of the Federation (with the exception of subventions). Obviously, in this case we should talk about the presence of several types of subsidies. In fact, a budget loan provided from one budget to another budget has an interbudgetary nature (see Articles 93.2, 93.3 of the Budget Code of the Russian Federation). The list of forms of interbudgetary transfers is applied at all levels of the budget system of the Russian Federation. Even to the budgets of two types of municipalities, where formally there are no levels public authority, the same 162 forms of interbudgetary transfers from the budgets of municipal districts to the budgets of settlements are applied (Article 142 of the Budget Code of the Russian Federation). A positive aspect of changes to budget legislation recent years there was a unification of the mechanism of interbudgetary relations, including forms of interbudgetary transfers. In this regard, it should be noted that, according to Art. 135 of the Budget Code of the Russian Federation at the level of relations “subjects of the Federation - municipalities” the same forms of interbudgetary relations are applied as at the federal level of interbudgetary relations: grants, subsidies, subventions, other forms of interbudgetary transfers transferred to local budgets. The basis for the receipt of grants and subsidies to regional budgets, as well as local budgets, is the need to provide financial assistance to these budgets, since they have a revenue deficit. Therefore, in order to ensure a minimum level of income for the budgets of individual public legal entities, assistance is provided for the normal functioning of the state itself and society as a whole. As for subventions, the basis for their transfer to lower budgets is the fact of delegation of certain powers of government bodies at the federal level to government bodies of the constituent entities of the Federation and the obligation to finance these powers by the relevant authorities. For understanding legal support regime for receiving grants and subsidies great value has the fact that all powers of all levels of public legal entities represent a single, integral complex of public functions of the state. At the same time, the state transferred some of its functions to local self-government as a type of public authority. The named complex of public functions is structured based on their assignment to individual public legal entities or their implementation in the form of joint jurisdiction. Therefore, in order for all public functions to have at least a minimum level of financial support, the regime of transfer of grants and subsidies should be recognized as mandatory in order to achieve a certain level of budgetary security of the budgets of the budgetary system of the Russian Federation. The forms of interbudgetary transfers aimed at providing financial assistance to regions have certain conditions for their provision. According to Art. 130 of the Budget Code of the Russian Federation, among such conditions, is the observance by government bodies of the constituent entities of the Federation of the budget legislation of the Russian Federation and the legislation of the Russian Federation on taxes and fees. This condition, in fact, repeats the requirement of the Constitution of the Russian Federation about a single legal space in the Russian Federation. Other conditions for the provision of grants, subsidies and other transfers (with the exception of subventions) are aimed at encouraging state authorities of the constituent entities of the Federation receiving such transfers to take care of increasing the corresponding budgets themselves. In particular, the subjects of the Federation, in whose budgets the estimated share of interbudgetary transfers from the federal budget during two of the last three reporting financial years exceeded 5% of the volume of own revenues of the consolidated budget of the subject of the Federation, do not have the right to independent cash execution of the budget of the subject of the Federation by the executive authorities subject of the Federation. Subventions are not included in this regime. The fact is that in Art. 215.1 of the Budget Code of the Russian Federation states that, by agreement with the executive body of state power of a subject of the Federation, the powers of the Federal Treasury to provide cash services for the execution of the budget of a subject of the Federation can be transferred to the executive bodies of state power of the subject of the Federation. But this is possible subject to the financial support of these powers from the own budget revenues of the subject of the Federation and the availability of the property necessary for their implementation in the ownership of the subject of the Federation. At the same time, the fact of receiving forms of transfers in the financial assistance regime in large volumes entails a number of restrictions in the exercise of budgetary powers at the level of the constituent entities of the Federation. Thus, the subjects of the Federation, in whose budgets the share of interbudgetary transfers from the federal budget (with the exception of subventions) during two of the last three reporting financial years exceeded 20% of the volume of own revenues of the consolidated budget of the subject of the Federation, do not have the right to: 1) establish and fulfill expenditure obligations , not related to the resolution of issues referred by the Constitution of the Russian Federation 164 and federal laws to the powers of state authorities of the constituent entities of the Federation; 2) exceed the standards established by the Government of the Russian Federation for the formation of expenses for remuneration of state civil servants of a constituent entity of the Federation and (or) maintenance of government bodies of a constituent entity of the Federation. The last restriction deserves special support, since it is directed against the fact that in regions with low budgetary security, officials increased their incomes through transfers from the federal budget. In the event that the volume of transfers from the federal budget to the budgets of the constituent entities of the Federation becomes significant, the Budget Code of the Russian Federation provides for an increase in the role of federal authorities in organizing the execution of the budgets of the corresponding territories. Specifically, if in the constituent entities of the Federation, in whose budgets the share of interbudgetary transfers (except for subventions) from the federal budget during two of the last three reporting financial years exceeded 60% of the volume of own revenues of the consolidated budget of the constituent entity of the Federation, the following additional measures are taken: 1) signing agreements with the Ministry of Finance of the Russian Federation on measures to improve the efficiency of use of budget funds and increase the receipt of tax and non-tax revenues of the budget of a constituent entity of the Federation; 2) organizing the execution of the budget of a constituent entity of the Federation with the opening and maintenance of personal accounts for the main managers, managers, recipients of budget funds of a constituent entity of the Federation and the chief administrators (administrators) of sources of financing the budget deficit of a constituent entity of the Federation in the Federal Treasury; 3) submission by the financial body of the subject of the Federation to the Ministry of Finance of the Russian Federation in the manner established by it of documents and materials necessary for preparing a conclusion on compliance with the requirements of the budget legislation of the Russian Federation submitted to the legislative body of the subject of the Federation of the draft budget of the subject of the Federation for the next financial year and planning period; 4) conducting an annual external audit of the annual report on the execution of the budget of a constituent entity of the Federation by the Accounts Chamber of the Russian Federation or the Federal Service for Financial and Budgetary Supervision. In this situation, it is possible to take other measures established by federal laws. For non-compliance by government bodies of the constituent entities of the Federation with the above conditions for the provision of interbudgetary transfers from the federal budget, as well as in case of violation of the maximum values for the volume of transfers received, the Ministry of Finance of the Russian Federation has the right to decide to suspend or reduce, in accordance with the procedure established by it, the provision of interbudgetary transfers to the relevant budgets of the constituent entities of the Federation until correction situations. This provision does not apply to the procedure for receiving a subvention. It is important that operations with interbudgetary transfers provided from the federal budget in the form of subventions and interbudgetary subsidies to the budgets of the constituent entities of the Federation are carried out in the manner established by the federal law on the federal budget for the next financial year and planning period. Regulatory legal acts of the Government of the Russian Federation can also act as such a document. This means the absence of a long-term mechanism for providing subsidies and subventions. Subjects of the Federation receiving financial assistance have the right to refuse it in whole or in part. In this case, the provided restrictions and other measures are not applied or are applied in proportion to a reduced percentage of waivers. The corresponding decision on the refusal of interbudgetary transfers at the level of the subject of the Federation must be made no later than July 1 of the year after which these measures will be canceled or reduced. Similar conditions for the provision of interbudgetary transfers are established for interbudgetary relations at the level of “subjects of the Federation - municipalities”. Interbudgetary transfers from the budgets of the constituent entities of the Federation to local budgets (with the exception of subventions) are provided subject to compliance by the relevant local government bodies with the budget legislation of the Russian Federation and federal legislation on taxes and fees. In this case, we are not talking about the legislation of the subjects of the Federation themselves (clause 1 of Article 136 of the Budget Code of the Russian Federation). But in contrast to the federal level of interbudgetary relations, at their regional level a different criterion has been established for the prohibition of exceeding the standards established by the authorities of the subject of the Federation for the formation of expenses for remuneration of deputies, elected officials local government, other municipal employees and, in general, the maintenance of local government bodies. The mentioned criterion is not 5%, as for the subjects of the Federation, but 10% of the share of interbudgetary transfers from other budgets of the budget system in local budgets. The quota for the possibility of exceeding the share of interbudgetary transfers (except for subventions) in local budgets’ own revenues compared to the budgets of the Russian Federation has also been increased from 20% to 30% in two of the last three reporting financial years. Exceeding this indicator in the relevant local budget does not provide the right to establish and fulfill expenditure obligations not related to the resolution of issues assigned by federal legislation and the laws of the constituent entities of the Federation to the powers of the relevant local government bodies. Consequently, local governments have the right to assume additional expenditure obligations provided that in the budgets of the relevant municipalities the share of interbudgetary transfers is lower than the total volume of the local budget’s own revenues. According to Art. 47 of the Budget Code of the Russian Federation, the own budget revenues include: tax revenues credited to the budgets in accordance with the budget legislation of the Russian Federation and the legislation on taxes and fees; non-tax revenues credited to budgets in accordance with the legislation of the Russian Federation, the laws of the constituent entities of the Federation and legal acts representative bodies of municipalities; income received by budgets in the form of gratuitous receipts, with the exception of subventions. Due to the above, the above-mentioned share of interbudgetary transfers is simultaneously the share of gratuitous receipts minus subventions in the structure of budgets’ own revenues. Subventions are not included in budgets' own revenues. If in local budgets the share of interbudgetary transfers from the budgets of the constituent entities of the Federation (with the exception of subventions) and (or) tax revenues according to additional standards of deductions during two of the last three reporting financial years will exceed 70% of the volume of own revenues of local budgets, then in relation to the corresponding municipal formations, the Budget Code of the Russian Federation provides for the following additional measures to the above: 1) local government bodies are obliged in this case to sign an agreement with the financial authority of the constituent entity of the Federation on measures to increase the efficiency of using budget funds and increase tax and non-tax revenues of the local budget; 2) local government bodies are obliged to provide the highest executive body of state power of the subject of the Federation with documents and materials necessary for preparing a conclusion on compliance with the requirements of budget legislation of the draft local budget; 3) conducting an external audit of the annual report on the execution of the local budget by the control bodies of the subject of the Federation at least once every two years. In these cases, other measures established by federal laws are possible. Certain sanctions are provided for municipalities in the following cases: if local governments fail to comply with the conditions for the provision of interbudgetary transfers; in case of violation of the limit values of the local budget deficit by more than 10% of the total volume of local budget revenues without taking into account gratuitous revenues or tax deductions replacing them; when the maximum amount of municipal debt is exceeded (Article 107 of the Budget Code of the Russian Federation). In this situation, the financial authorities of the constituent entities of the Federation have the right to decide to suspend (reduce), in accordance with the procedure established by them, the provision of interbudgetary transfers (with the exception of subventions) to the relevant local budgets until such shortcomings are eliminated. Both at the federal level of interbudgetary relations, and at the regional level, a procedure is provided for the complete or partial refusal of local governments until September 1 of the current year from receiving interbudgetary transfers in the next financial year from other budgets of the budget system (with the exception of subventions) or replacement their tax payments. In this case, the above restrictions and sanctions will be applied in the next year in proportion to the reduction in the share of interbudgetary transfers. Subsidies. Among interbudgetary transfers, subsidies play a major role. A special feature of subsidies is that they are provided free of charge and irrevocably without establishing directions and (or) conditions for their use. According to Art. 131 of the Budget Code of the Russian Federation, subsidies to equalize the budgetary provision of the constituent entities of the Federation must be provided for as part of the federal budget and distributed among the constituent entities of the Federation in accordance with a unified methodology approved by the Government of the Russian Federation. As a certain form of cash flow, subsidies to equalize the budgetary security of the constituent entities of the Federation are concentrated in the Federal Fund for Financial Support of the Subjects of the Federation, which does not have a regime trust fund, since it does not have permanently assigned income sources. The named Fund is a way of spending budget funds. The total volume of subsidies to equalize the budgetary provision of the subjects of the Federation is determined based on the need to achieve the minimum level of estimated budgetary provision of the subjects of the Federation, i.e. the volume of subsidies to the constituent entities of the Federation is determined on the basis of identifying their budgetary needs, calculated according to minimum indicators. The corresponding criterion for the allocation of subsidies from the federal budget is called the minimum level of estimated budgetary security, which is the totality of available revenues of regional budgets together with subsidies received from the federal budget and is calculated by the Government of the Russian Federation. At the same time, subsidies should not lead to exceeding the level of estimated budgetary sufficiency that is established as a general criterion for equalizing the estimated budgetary sufficiency for all subjects of the Federation. We are talking about the inadmissibility of creating a higher level of income for an individual subject of the Federation through subsidies, in comparison with other subjects of the Federation. The basis for determining the estimated security is taken from the budget revenue indicators of a certain subject of the Federation for the last financial year. Therefore, if an individual subject of the Federation managed to increase its income level in the reporting year, then the volume of subsidies does not decrease due to this. Likewise, the presence of plans to increase the revenues of a particular regional budget does not affect the level of subsidies. This procedure makes it possible to create an interest in state authorities of the constituent entities of the Federation in increasing their budget revenues. The very criterion of the level of estimated budgetary provision of a subject of the Federation is defined as the ratio between the estimated tax revenues per capita that can be received by the consolidated budget of a subject of the Federation, based on the level of development and structure of the economy and (or) tax base(tax potential), and a similar indicator on average for the consolidated budgets of the constituent entities of the Federation. This takes into account: the structure of the population, socio-economic, geographical, climatic and other objective factors and conditions that influence the cost of providing the same volume of state and municipal services per capita. Of significant importance is the fact that to calculate the volume of subsidies to a separate regional budget, not only the potential tax revenues of the regional budget itself are taken into account, but also the possible revenues of local budgets that are part of the corresponding consolidated budget, which is an indicator of the unity of the budget system, the interconnectedness of all types of public legal entities in the budgetary sphere. It is also important to take into account that non-tax revenues are not taken into account when calculating the allocation of subsidies, which has a positive effect on the factor of stimulating their increase. Although subsidies do not imply the targeted nature of the further use of budget funds, they may include subsidies that reflect individual factors and conditions taken into account when determining the level of estimated budgetary provision of the constituent entities of the Federation. The volume of these subsidies cannot exceed 10% of the total volume of subsidies to equalize the budgetary security of the constituent entities of the Federation. These 170 subsidies, in fact, have the nature of additional monetary assistance to an individual subject of the Federation, if it has special reasons for this. The Federal Law on the Federal Budget for the next financial year and planning period, as well as the regulatory legal acts of the Government of the Russian Federation adopted in accordance with it, may establish the specifics of the transfer and use of these subsidies. We are talking about the procedure for using additional subsidies, but not about their intended purpose. Thus, these additional subsidies are not targeted, but are designed to take into account special conditions individual subjects of the Federation requiring the allocation of additional subsidies. The Ministry of Finance of the Russian Federation is obliged, in advance of July 1 of the current year, to provide the constituent entities of the Federation with initial data for making calculations for the distribution of subsidies to equalize the budgetary provision of the constituent entities of the Federation for the next financial year and planning period, and before July 20 of the current financial year to reconcile the specified initial data with the authorities authorities of the subjects of the Federation. The agreed project for the distribution of subsidies to equalize the budgetary provision of the constituent entities of the Federation is no longer subject to revision, even in the process of adopting the federal budget for the next financial year and planning period, if it does not simultaneously affect the methodology for distributing subsidies. As for the budgets of the constituent entities of the Federation, subsidies are provided for the budgets of municipalities to equalize their budgetary security. Moreover, in accordance with the fact that there are two types of municipalities, subsidies to local budgets, also from the budget of a certain subject of the Federation, are provided separately for municipal districts and settlements. According to Art. 137 of the Budget Code of the Russian Federation, subsidies for equalizing the budgetary provision of settlements are provided for in the budget of the subject of the Federation in order to equalize the financial capabilities of settlements in the exercise of powers by local government bodies to resolve issues of local importance based on the number of residents and (or) budgetary provision. They form a regional fund for financial support of settlements, created in the budget structure of each subject of the Federation, and are approved together with the adoption of the corresponding law of the subject of the Federation on the regional 171 budget. In this case, it is possible to replace the volume of cash transfers in the subsidy regime with the corresponding amount of tax revenues that the local budget can receive from the personal income tax. Replacing subsidies with deductions from certain taxes is possible due to the relationship between the budget and tax systems. In this case, the additional income standard, instead of a subsidy, is calculated as the ratio of the estimated volume of subsidies to equalize the budgetary provision of settlements to the predicted volume. The basis for this is a unified methodology for calculating personal income tax to be credited to the consolidated budget of the subject of the Federation for the territory of the corresponding settlement. As a positive fact, it should be assessed that changes in the specified standards for deductions from personal income tax to the budgets of settlements during the current financial year are not allowed. It is also important that the funds received by the settlement according to the additional standard of deductions from personal income tax in excess of the amount of the calculated subsidy are not subject to withdrawal to the budget of the subject of the Federation and are not taken into account during the subsequent distribution of financial assistance to local budgets. This encourages local governments to look for ways to increase local budget revenues. However, in case of receiving funds according to the additional standard, deductions from personal income tax in an amount below the calculated indicators are not provided for compensation for losses of the budget of the municipal formation from the budget of the subject of the Federation. To ensure the reliability of the receipt of subsidies into the budgets of settlements, it is important that the procedure for distributing subsidies between local budgets and the volume of subsidies is determined in the law on the budget of the subject of the Federation. At the same time, all urban settlements (including urban districts) and rural settlements of a subject of the Federation have the right to receive subsidies to equalize the budgetary provision of settlements. The exception is urban and rural settlements in which in the reporting financial year the estimated tax revenues of local budgets (excluding tax revenues under additional deduction standards) exceeded the level established by the law of the subject of the Federation. The specified level cannot be set below twice the average level per capita for settlements or municipal districts (urban districts) of a given subject of the Federation. However, there may not always be direct connections between a subject of the Russian Federation and settlements as one of the types of municipalities. Specifically, the law of the subject of the Federation allows that local self-government bodies of municipal districts may be vested with the powers of state authorities of the subjects of the Federation to calculate and provide subsidies to the budgets of settlements at the expense of the budgets of the subjects of the Federation. The Budget Code of the Russian Federation provides that the same law should establish a methodology for calculating subventions to the budgets of municipal districts for the exercise of these powers and a methodology for calculating the amount of subsidies to settlements by local governments of municipal districts, including a methodology for calculating and establishing additional standards for deductions from personal income taxes. In this case, subsidies are not directly provided for in the budget of a constituent entity of the Federation to the budgets of settlements. The volume of subsidies received by the district budget from the regional budget and intended for subsequent transfer to the budgets of settlements, in fact for the municipal district, takes the form of subventions. Evaluating this procedure, we can recognize that the fact that the subjects of the Federation are excluded from establishing direct ties in the budgetary sphere with settlements makes the latter to a certain extent dependent on municipal districts. The importance of the role of municipal settlements for the system of interbudgetary relations is evidenced by the fact that the Budget Code of the Russian Federation first defines the subsidy regime for settlements, and then for municipal districts and urban districts (Article 138 of the Budget Code of the Russian Federation). Subsidies for them are provided in the form of regional funds for financial support of municipal districts (city districts), created in the structure of the budgets of the corresponding budgets of the constituent entities of the Federation, the procedure for determining the volume and use of which is subject to approval by the law of the constituent entity of the Federation on the budget for the next financial year and planning period. As with other types of subsidies, a mechanism is possible to replace part of the subsidy with additional standards for deductions from personal income taxes received by local budgets. In this case, subsidies go only to the budgets of those municipal districts and city districts, the level of estimated budgetary provision of which does not exceed the level established as a criterion for equalizing the estimated budgetary provision of all municipal districts (city districts) on the territory of a subject of the Federation. This level is determined by the ratio of tax revenues per capita that can be received by the budget of a municipal district based on the level of development and structure of the economy and tax potential. In addition to the above criteria, the use of other indicators averaged over all municipal districts and urban districts is also indicated. They involve taking into account differences in the structure of the population, socio-economic, climatic, geographical and other objective factors and conditions that affect the cost of providing municipal services per capita. The mechanism for determining the level of estimated budgetary provision of municipal districts (urban districts) is carried out according to a unified methodology that ensures comparability of tax revenues of municipal districts and urban districts, as well as indicators characterizing the factors and conditions affecting the cost of providing municipal services per capita. The actual indicators obtained and the projected revenues of the budgets of municipal districts are taken into account in 2008 at 50% of the total volume of regional funds for financial support of municipal districts and urban districts (Art. 83 of the Federal Law “On general principles organizations of local self-government in the Russian Federation"). However, in general, the established procedure implies that when determining the level of estimated budgetary provision of municipal districts (city districts), it should not be allowed to use indicators of actual income and expenses for the reporting period and (or) indicators of projected income and expenses of the budgets of individual municipal districts (city districts). The meaning of this procedure is to increase incentives for local governments to increase the budgets of their municipalities. As with other types of subsidies, a procedure has been established according to which it is prohibited, through subsidies, to create a situation of better financial security in a separate district or urban district in comparison with the indicator of the estimated budgetary security of other municipal districts and urban districts, which they had before the distribution of subsidies. The positive significance of such a ban is to prevent the promotion of dependency through subsidies. As part of subsidies to the budgets of municipal districts and urban districts, individual species subsidies that are intended to provide financial support for certain conditions that must be taken into account when determining the level of estimated budgetary provision of municipal districts (urban districts). The specifics of calculating these subsidies are determined by the methodology for distributing subsidies to equalize the budgetary provision of municipal districts (urban districts). As a criterion for the distribution of certain types of subsidies between municipal districts and urban districts, the indicator of the number of residents of the named municipalities is used. As with the distribution of other types of subsidies, in this case a unified methodology for calculating the volume of subsidies provided to each individual municipal district or urban district is also used. However, the subsidy is not provided to those municipalities that in the reporting financial year had estimated tax revenues of local budgets in volume higher than two times the average level for all municipal districts (urban districts) of a given subject of the Federation per capita. Thus, those municipalities that have tax revenues that are twice the average corresponding figure for the subject of the Federation are not provided with certain types of subsidies to equalize budgetary security. In this case, the law of the subject of the Federation may provide for a different procedure for calculating these subsidies for the budgets of municipal districts and the budgets of urban districts. As in other cases with the provision of subsidies, the Budget Code of the Russian Federation provides for the possibility of replacing them in full or in part with the standards for deductions to the budgets of municipal districts (city districts) from personal income tax. The named standards in this case should be additional to the standards provided for in Art. 61.1 BC RF. The general procedure for replacing subsidies as a form of transfers for tax revenues that have not yet been received cannot be recognized as equivalent to that part of the revenues to local budgets that should come from the regional budget, because tax revenues are not guaranteed. Moreover, losses of the budget of a municipal district (urban district) in connection with the receipt of funds according to the additional standard of deductions from personal income tax in an amount below the calculated subsidy (part of the calculated subsidy) are not subject to compensation from the budget of the subject of the Federation and (or) accounting for subsequent distribution of interbudgetary transfers to local budgets. However, the rule that prohibits withdrawals to the regional budget and accounting for the distribution of future interbudgetary transfers in the event that a municipal entity receives tax revenues received in excess of the estimated standards deserves a positive assessment. Despite the possibility of providing subsidies to the budgets of settlements directly from regional budgets, the Budget Code of the Russian Federation (Article 142.1) also establishes the procedure for providing subsidies to equalize the budgetary provision of settlements from the budget of the municipal district. In this case, the same district fund for financial support of settlements is formed in the budget of the municipal district as in the listed cases and the same mechanism for its expenditure is applied. Subsidies. As for subsidies as a type of financial assistance, they have a different regime. According to Art. 132 of the Budget Code of the Russian Federation, subsidies to the budgets of the constituent entities of the Federation from the federal budget are understood as inter-budgetary transfers provided to the budgets of the constituent entities of the Federation for the purpose of co-financing expenditure obligations arising in the exercise of the powers of public authorities of the constituent entities of the Federation on subjects of jurisdiction of the constituent entities of the Federation and 176 subjects of joint jurisdiction of the Federation and the constituent entities of the Federation . In addition, subsidies are intended to finance expenditure obligations to fulfill the powers of local governments on issues of local importance. Based on the above, subsidies are targeted in nature, since they are intended to ensure the implementation of three types of powers: the powers of government bodies of the constituent entities of the Federation in the areas of jurisdiction of the constituent entities of the Federation; powers on subjects of joint jurisdiction of the Federation and the subjects of the Federation, the list of which is defined in Art. 72 of the Constitution of the Russian Federation; powers of local governments on issues of local importance. The subsidies received by the subjects of the Federation to finance the powers of local self-government bodies at the level of the budget of the subject of the Federation, in fact, have an intermediate stage of movement from the federal budget to local budgets. The second feature of subsidies is the established co-financing regime, which means the obligation of a public legal entity receiving such a subsidy to allocate part of the funds from its budget for the same purpose for which a specific subsidy is allocated. The above means the impossibility of using the funds received in the subsidy mode for other purposes, the control of the procedure for using the subsidy by the authorized authorities of the public legal entity from whose budget such subsidies are allocated, as well as the availability of certain funds from the recipient of the subsidy as a condition for receiving it in order to implement co-financing. Like subsidies, the totality of funds accumulated in the form of subsidies for the budgets of the constituent entities of the Federation forms the Federal Fund for Co-financing Expenses. The legislation provides for a fairly large list of subsidies for transfer from higher budgets to lower budgets. In particular, the federal budget may provide for subsidies to the budgets of the constituent entities of the Federation to equalize the provision of the constituent entities of the Federation in order to fulfill their individual expenditure obligations. Since there are many such obligations arising for various reasons, there are also many types of subsidies. The disadvantage of the current legislation is the lack of a clear content of the co-financing mechanism, or rather, an indication of the shares of different budgets participating in the joint financing of these goals. In fact, the issue is resolved mainly by the authorities of a higher public legal entity, from whose budget subsidies are allocated. It is important that the goals and conditions for providing and spending subsidies to the budgets of the constituent entities of the Federation from the federal budget, as well as the criteria for selecting the constituent entities of the Federation themselves for the provision of these inter-budgetary subsidies, their distribution between the constituent entities of the Federation are determined by federal laws and regulatory legal acts of the Government of the Russian Federation adopted in accordance with them . There is a multi-year regime for providing subsidies, in particular for a period of at least three years. The participation of the subjects of the Federation themselves in determining the volume of allocated subsidies is rather passive, since they raise questions about the allocation of subsidies to them and provide relevant data for calculating the volume of subsidies. In addition to subsidies to the budgets of the constituent entities of the Federation from the federal budget, in accordance with federal laws and regulatory legal acts of the Government of the Russian Federation, subsidies from the federal budget are possible from the reserve funds of the President of the Russian Federation and the Government of the Russian Federation. Other types of subsidies are not allowed. As for subsidies to local budgets from the budgets of the constituent entities of the Federation, the procedure for their allocation generally coincides with subsidies from the federal budget and is defined in Art. 139 BC RF. They are accumulated in the regional fund for co-financing expenses, created in the structure of the regional budget, and are intended to co-finance expenditure obligations arising in the exercise of powers of local governments on issues of local importance. The budget of a constituent entity of the Federation may provide for subsidies to local budgets to equalize the provision of municipalities for the implementation of their individual expenditure obligations. 178 At the level of the subjects of the Federation, the goals and conditions for the provision of subsidies are determined, as well as the procedure for their distribution between the budgets of municipalities and subsequent expenditure by local governments, which is specifically established by the laws of the subjects of the Federation or regulatory legal acts of the highest executive bodies of state power of the subject of the Federation. A procedure has been established that does not allow the allocation of subsidies that are not provided for by the laws of the constituent entities of the Federation and (or) regulatory legal acts of the highest executive bodies of state power of the constituent entity of the Federation. Otherwise, the mechanism for providing subsidies from the budgets of the constituent entities of the Federation is determined by the constituent entities of the Federation themselves. In Art. 142.2 of the Budget Code of the Russian Federation provides for a mechanism for providing subsidies to the budget of a constituent entity of the Federation from local budgets. In this case, it is not the higher budget that provides assistance to the lower budget, but, on the contrary, the money goes to the higher budget. Such a mechanism is subject to establishment by the law of the subject of the Federation, according to which money must be transferred from the budgets of settlements and (or) municipal districts (city districts) to the budget of the subject of the Federation. The basis for such a mechanism is the situation when, in the reporting financial year, the estimated tax revenues of local budgets (excluding tax revenues under additional deduction standards) exceeded the level established by the law of the subject of the Federation. Such a subsidy is not related to the reason for providing financial assistance, but rather is a kind of penalty for the fact that the income of a particular budget exceeds twice the regional average. Moreover, the excess indicator is calculated separately for municipal districts (urban districts) per capita and separately for settlements. If subsidies came from the budgets of settlements, then they are subject to accounting in the budget revenues of the constituent entity of the Federation and in the budgetary allocations of the regional fund. Such a fund could be a regional compensation fund for distribution between the budgets of municipal districts in the event that the representative bodies of municipal districts are vested with the powers of state authorities of the constituent entities of the Federation to calculate and provide subsidies to equalize the budgetary provision of settlements. If subsidies came from the budgets of municipal districts and city districts, then they are subject to transfer to the budget of the subject of the Federation and are taken into account in the budget revenues of the subject of the Federation and in the budget allocations of the regional fund for financial support of municipal districts (city districts). Based on the above, it follows that subsidies from local budgets to the regional budget are ultimately subject to redistribution between the budgets of the district or settlement levels. In this case, the volume of subsidies to be transferred from local budgets to the budget of the subject of the Federation is calculated in proportion to the excess of estimated tax revenues over the level established by the law of the subject of the Federation. A mechanism is also provided according to which a ban is established to prevent a decrease in the volume of revenues of the relevant local budget, if it becomes a source of subsidies, to a certain level. In particular, the volume of the specified subsidy for a separate municipal entity per capita cannot exceed 50% of the difference between the estimated tax revenues of the local budget per capita and two times the average level of estimated tax revenues per capita in the reporting financial year. Consequently, the estimated tax revenues of a municipal entity per capita after excluding the interbudgetary subsidy to be transferred to the budget of a constituent entity of the Federation cannot be lower than the estimated tax revenues per capita of another municipal entity, which before the exclusion of the said interbudgetary subsidy had a lower level estimated tax revenues per capita. If the representative body of a municipal formation fails to comply with the above requirements, the amount of interbudgetary subsidies is recovered from deductions from federal and regional taxes and fees, taxes provided for by special tax regimes, subject to credit to the budget of the municipal formation. In Art. 142.3. The Budget Code of the Russian Federation has established another mechanism for providing subsidies from the budgets of settlements to the budgets of municipal districts to resolve issues of local importance of an intermunicipal nature. In this case, the settlements that are part of the municipal district are required to transfer interbudgetary subsidies to the budget of the municipal district to resolve issues of local importance of an intermunicipal nature, defined by the Federal Law “On the General Principles of the Organization of Local Self-Government in the Russian Federation.” We are talking about financing objects of inter-settlement significance. The amount of these interbudgetary subsidies is approved by the decision of the representative body of the municipal district and the decisions of the representative bodies of settlements on local budgets according to a single standard for all relevant settlements of a given municipal district per resident or consumer of municipal services. If the local government body of the settlement fails to comply with the decision to transfer the subsidy, its amount is recovered from other interbudgetary transfers or deductions from federal taxes. Subventions. Subventions to the budgets of the constituent entities of the Federation, in contrast to grants and subsidies, are intended to financially support the expenditure obligations of the constituent entities of the Federation and (or) municipalities arising in the exercise of the powers of the Russian Federation, transferred for implementation to the state authorities of the constituent entities of the Federation and (or) local governments (Art. 133 BC RF). According to their purpose, they serve as a form of payment for the activities of regional or local authorities in the execution of the delegated powers of the corresponding higher public legal entity. At the same time, the Russian Federation vests its powers directly with local self-government bodies, and finances these powers through the budgets of the constituent entities of the Federation. Subventions, being monetary funds, are accumulated in the Federal Compensation Fund, created within the structure of the federal budget. The methods for distributing funds between the budgets of the constituent entities of the Federation from the said Fund are approved by the Government of the Russian Federation. The corresponding project for the distribution of subventions between the constituent entities of the Federation is approved along with the draft federal budget for the next year. The Budget Code of the Russian Federation provides for the procedure for transferring subventions from the federal budget to the structure of the corresponding budgets of the constituent entities of the Federation. Their further use is carried out in accordance with the procedure approved by federal laws and regulatory legal acts of the Government of the Russian Federation. The procedure for spending subventions transferred through the budgets of the constituent entities of the Federation to the budgets of municipalities is determined in a similar way. But in the latter case, the subjects of the Federation have the right, in accordance with federal legislation, to introduce clarifications into the procedure for spending subventions transferred from the federal budget to municipal budgets. In turn, the subjects of the Federation have the right to instruct local government bodies of municipal districts to provide part of the subventions for the budgets of settlements. The fact that subventions are distributed among all subjects of the Federation according to the same methods for each type of subvention indicates the implementation of the principle of equality of subjects of the Federation in relations with the Russian Federation. These methods are calculated based on the population size, consumers of the relevant state (municipal) services, and other indicators, taking into account the standards for the formation of budgetary allocations for the fulfillment of relevant obligations and objective conditions affecting the cost of state (municipal) services. Indicators of own incomes of budgets receiving subventions do not affect the volume of subventions received. Methods for distributing subventions to the budgets of the constituent entities of the Federation from the federal budget are presented by the Government of the Russian Federation as part of documents and materials included in State Duma simultaneously with the draft federal law on the federal budget for the next financial year and planning period. Like other forms of interbudgetary transfers, subventions to local budgets from the budgets of the constituent entities of the Federation are allocated in accordance with regional budget legislation, but the basic legal support for the mechanism for allocating subventions is determined by the Budget Code of the Russian Federation. According to Art. 140 of the Budget Code of the Russian Federation, subventions to local budgets are allocated from the budget of the constituent entities of the Federation in order to financially support the expenditure obligations of municipalities arising in the implementation of state powers at the federal and regional levels, transferred to local governments for their implementation. They are accumulated in the regional compensation fund and are formed from the following sources: subventions to the budgets of the constituent entities of the Federation from the federal budget for the exercise by local governments of certain powers of federal government bodies; own income and sources of financing the budget deficit of a constituent entity of the Federation in the amount necessary for local government bodies to exercise certain powers of state authorities of a constituent entity of the Federation. Subventions to local budgets from the budget of the constituent entity of the Federation are distributed in accordance with uniform methods for each type. At the same time cash in the subvention regime, they go only to those municipalities whose local government bodies exercise certain state powers delegated to them. The volume of allocated subventions must proportionally correspond to the population size, consumers of relevant state and municipal services, other indicators, and also take into account the standards for the formation of budgetary allocations for the fulfillment of relevant obligations and objective conditions affecting the cost of state and municipal services in municipalities. If subventions in the structure of the regional budget are formed from funds from the federal budget and are intended to provide local governments with the powers of federal authorities, then the named methods for distributing subventions between municipalities must comply with the requirements of federal legislation. There is a ban on the use of indicators characterizing the own revenues of local budgets when distributing subventions to local budgets from the budget of a constituent entity of the Federation. The Budget Code of the Russian Federation also allows the use of budgets of municipal districts and urban districts for the distribution of subventions between the budgets of settlements, indicating at the regional level the appropriate methods for their calculation and the procedure for distribution. Approval of the specific volume of subventions for each settlement budget is carried out by the corresponding decision of the representative body of the municipal 183 district on the budget of the municipal district. The Budget Code of the Russian Federation allows for the approval of subventions to local budgets from the budget of a constituent entity of the Federation not distributed among municipalities in an amount not exceeding 5% of the total volume of the corresponding subvention. In this case, the subvention can be distributed among local budgets in the manner established by the highest executive body of state power of the subject of the Federation, for the same purposes in the process of executing the budget of the subject of the Federation without amending the law of the subject of the Federation on the budget of the subject of the Federation.
- 1. In order to co-finance expenditure obligations arising in the exercise of powers of local self-government bodies on issues of local importance, subsidies are provided from the budget of a constituent entity of the Russian Federation to local budgets in accordance with the Budget Code of the Russian Federation and the laws of the constituent entity of the Russian Federation adopted in accordance with it.
- 2. In cases and in the manner established by the laws of a constituent entity of the Russian Federation in accordance with the Budget Code of the Russian Federation and other regulatory legal acts of state authorities of a constituent entity of the Russian Federation adopted in accordance with them, local budgets may be provided with other interbudgetary transfers from the budget of a constituent entity of the Russian Federation.
between municipalities is also established by the laws of the constituent entities of the Russian Federation and (or) regulatory legal acts of the highest executive body of state power of the constituent entity of the Russian Federation.
The highest executive body of state power of a constituent entity of the Russian Federation approves for a period of at least three years a list of expenditure obligations of municipalities arising in the exercise of powers of local governments on issues of local importance, for the purpose of co-financing which subsidies are provided from the budget of the constituent entity of the Russian Federation, target performance indicators for the provision of subsidies and their meanings. Allocation of these subsidies from the budget of a constituent entity of the Russian Federation to local budgets (with the exception of subsidies from the reserve fund of the highest executive body of state power of a constituent entity of the Russian Federation) for purposes and (or) in accordance with conditions not provided for by the laws of the constituent entity of the Russian Federation and (or) regulatory legal acts of the highest executive body of state power of a constituent entity of the Russian Federation is not allowed.
2. In addition to subsidies to equalize the budgetary provision of settlements (intra-city districts) and subsidies to equalize the budgetary provision of municipal districts (city districts, city districts with intracity division), interbudgetary subsidies and subventions to local budgets, other budgets may be provided to the budgets of municipalities from the budgets of constituent entities of the Russian Federation interbudgetary transfers. The concept of “other interbudgetary transfers from the budgets of constituent entities of the Russian Federation to local budgets” and their list are not defined in the legislation of the Russian Federation. According to Art. 139 of the Budget Code of the Russian Federation, other interbudgetary transfers may be provided to local budgets from the budgets of the constituent entities of the Russian Federation in cases and in the manner provided for by the laws of the constituent entities of the Russian Federation and other regulatory legal acts of state authorities of the constituent entities of the Russian Federation adopted in accordance with them. For example, such interbudgetary transfers may include subsidies from the budgets of constituent entities of the Russian Federation to ensure the balance of local budgets provided to municipalities in a number of constituent entities of the Russian Federation.
It should be noted that municipalities that have a high level of budgetary security and are subject to the “negative transfer” regime, in contrast to subsidies for equalizing budgetary security, may be recipients of other interbudgetary transfers from the budgets of constituent entities of the Russian Federation. At the same time, in Art. 139" of the Budget Code of the Russian Federation establishes the requirement that all other interbudgetary transfers can be provided to local budgets, including in the form of subsidies, within 10% of the total volume of interbudgetary transfers to local budgets from the budget of a constituent entity of the Russian Federation
(except for subventions) and (or) the estimated volume of subsidies to equalize budgetary security (part of the estimated volume of subsidies), replaced by additional deduction standards.
This restriction is aimed at ensuring that the bulk of interbudgetary transfers from the budget of a constituent entity of the Russian Federation to local budgets is distributed in the form of subsidies to equalize the budgetary provision of municipalities, the distribution of which uses objective and unified methods based on assessing the level of budgetary provision of municipalities and equalizing this level. At the same time, specified in Art. 139 1 of the Budget Code of the Russian Federation, the limitation may be exceeded if other interbudgetary transfers are provided from the federal budget to the budget of a constituent entity of the Russian Federation for provision to the budgets of municipalities in the amount of these other interbudgetary transfers.
According to Part 1 of Art. 8 of the Federal Law of April 7, 1999 No. 70-FZ “On the status of a science city of the Russian Federation”, assigning the status of a science city to a municipal formation is the basis for the provision of interbudgetary transfers from the federal budget to the budgets of constituent entities of the Russian Federation for the provision of interbudgetary transfers to the budgets of science cities in the manner determined by the Government of the Russian Federation. The rules for the provision of interbudgetary transfers from the federal budget for the implementation of measures to develop and support the social, engineering and innovation infrastructure of science cities of the Russian Federation were approved by Decree of the Government of the Russian Federation of December 22, 2007 No. 917.
According to the Decree of the Government of the Russian Federation dated April 18, 2005 No. 232 “On approval of the Rules for compensation of additional expenses and (or) losses of budgets of closed administrative-territorial entities associated with special treatment safe functioning" interbudgetary transfers to the budgets of CATUs are provided:
- - for additional expenses of the CATU budgets associated with the regime of safe operation of the CATU and loss of income due to the restriction of the right to conduct economic and entrepreneurial activity, possession, use and disposal of natural resources, real estate, as well as with the development and support of social and engineering infrastructure, in the form of subsidies;
- - resettlement of citizens who have lost production and official connections with organizations (facilities) located on the territory of the closed administrative unit, including payment of the cost of travel to a new place of residence - 502
taxes, transportation of household goods and payment of a one-time cash benefit, the amount of which is determined in accordance with the methodology;
Support for measures to ensure the balance of CATU budgets in the form of subsidies, the distribution of which is approved by the Government of the Russian Federation.
The specified interbudgetary transfers are provided from the federal budget by transferring them to the budgets of the constituent entities of the Russian Federation for the subsequent provision of these interbudgetary transfers to the budgets of science cities and ZATOs. Therefore, they can also be classified as other interbudgetary transfers provided from the budgets of the constituent entities of the Russian Federation to the budgets of science cities and closed administrative towns.
- The concept of “subsidies to local budgets” and the procedure for their provision are defined in Art. 139 BC RF. This article of the Budget Code of the Russian Federation actually provides for two forms of providing subsidies to local budgets from the budgets of constituent entities of the Russian Federation: 1) subsidies provided to the budgets of municipalities in order to co-finance expenditure obligations arising in the exercise of powers of local governments on issues of local importance; 2) subsidies to local budgets to equalize the provision of municipalities for the implementation of their individual expenditure obligations. The goals and conditions for the provision and expenditure of subsidies to local budgets from the budget of a constituent entity of the Russian Federation, the criteria for selecting municipalities for the provision of these subsidies and their distribution between municipalities are established by the laws of the constituent entity of the Russian Federation and (or) regulatory legal acts of the highest executive body of state power of the constituent entity of the Russian Federation in accordance with the requirements of the Budget Code of the Russian Federation. Distribution of these subsidies500
1. Types of interbudgetary transfers to municipalities
in accordance with the Budget Code, which introduced an expanded understanding of interbudgetary relations as the relationship between federal and regional government bodies, local governments on issues of regulation of budget legal relations, organization and implementation of the budget process, interbudgetary transfers are understood as funds from one budget of the budgetary systems of the Russian Federation transferred to another budget.
In accordance with the Budget Code, municipalities can receive the following types of interbudgetary transfers:
1) from the budgets of the constituent entities of the Russian Federation:
Subsidies for equalizing budgetary security from regional financial support funds;
Subventions from regional compensation funds; - subsidies from the regional municipal development fund;
Subsidies from the regional fund for co-financing social expenses
Other grants and subsidies from the regional budget within 10% of the total volume of financial assistance to local budgets from the regional budget;
Budget loans; 2) from local budgets:
Subsidies from district funds for financial support of settlements; - subventions from the budgets of settlements to the budgets of municipal districts
to perform intermunicipal functions; - subventions from the budgets of settlements to the budgets of municipal districts in
within the framework of the transfer of powers from the level of settlements to the level of the municipal district;
Funds for repayment and (or) servicing of municipal debt; - budget loans.
The introduction of a new edition of the Budget Code of the Russian Federation expanded the scope of interbudgetary regulation between the budgets of municipal districts and the budgets of settlements. Thus, municipal districts have the right to provide village budgets with
lazy budget loans for up to one year. The establishment of this right, along with the provision of budget loans to settlements from the budget of a constituent entity of the Russian Federation, was caused by the need to quickly resolve issues of providing additional financial assistance to settlements during the year, which is very difficult given the presence of a large number of them in the regions.
The grounds, conditions for the provision, use and repayment of budget loans are established by municipal legal acts of the representative body of the municipal district and municipal legal acts of the local administration of the municipal district adopted in accordance with them.
If budget loans provided to the budgets of settlements from the budgets of municipal districts are not repaid on time, the balance of the outstanding loan, including interest, fines and penalties, is recovered through subsidies to the budgets of settlements from the budget of the municipal district (in the event of transfer of powers to the municipal district subject of the Russian Federation to equalize the budgetary provision of settlements), as well as from income from federal taxes and fees, taxes provided for by special tax regimes, regional taxes subject to credit to the budgets of settlements.
In addition, so-called “negative transfers” - subventions that go respectively to regional funds for financial support of settlements and municipal districts (urban districts) can be withdrawn from the budgets of high-income municipalities.
The forms, procedure and conditions for providing interbudgetary transfers to budgets within city municipalities from the budgets of federal cities of Moscow and St. Petersburg are established by the laws of Moscow and St. Petersburg.
The number of special instruments of interbudgetary regulation can also include transfers allocated on the basis of the program-target method. For example, subsidies to stimulate measures to improve the quality of municipal finance management, similar to federal transfers for reforming regional and municipal finances, the main goal of which is to stimulate the effective management of municipal finances in the areas established by the region.
The most relevant areas at present are:
improving the budget and budget process by increasing the validity and accuracy of budget planning, moving to medium-term planning and budgetary budgeting, ensuring transparency of the budget process;
development and implementation of measures to reduce tax arrears, including through bankruptcy of budget debtors;
increasing income from the use of municipally owned property;
accounting of income (profit) of municipal unitary enterprises;
support for small business development;
formalization and competitiveness of procedures for the distribution of budget funds (subsidies, subventions, loans, guarantees, tax benefits etc.) enterprises;
improving municipal debt management: organizing accounting for total municipal debt, observing the parameters of the budget deficit, debt burden, and the maximum amount of expenses for servicing municipal debt established by federal legislation;
improving the quality of budget expenditure management through the formation and application of social and financial norms and standards, carrying out certification of municipal services, taking into account the price-quality ratio of budget services;
restructuring the budget network, developing a system of municipal orders and procurement on a competitive basis;
increasing the efficiency of transformations in the housing and communal services sector by observing regional standards for the cost of housing and communal services and their payment by the population, improving the work of housing organizations, using economically sound standards that take into account costs and profitability, increasing the efficiency of the tariff policy carried out in the municipality , and the activities of its resource-supplying enterprises from the point of view of maintaining the municipal housing stock and municipal engineering infrastructure in proper technical condition and their further development;
improving the quality of municipal property management through the development and implementation of a medium-term strategy for municipal property management, the development and application of criteria for assessing the effectiveness of management and use of municipal property, inventory and record keeping (cadasters) land plots, real estate objects municipally owned, introducing a system for assessing the property of individuals on a market basis;
transparency, formalization and predictability of decisions made, including a clear distribution of rights and responsibilities for the implementation of reforms not only between levels of public authority, but even between specific ministries, departments, and executors.
Considering that the tasks set can be solved over a long period of time and require a set of measures for their implementation, it is advisable to formulate municipal reform programs, as is practiced in most regions.
2. Subsidies to equalize the budgetary provision of municipal
formations
Subsidies are allocated with the aim of equalizing the budgetary provision of municipalities, i.e. increasing the income of municipalities with the least developed tax base.
In accordance with the Budget Code of the Russian Federation, in order to equalize the financial capabilities of settlements, criteria can be established based on the number of residents and (or) budgetary security.
Subsidies for the equalization of municipal districts and urban districts are allocated from regional financial support funds based on the criterion of equalizing budgetary security.
Part of the subsidies may be provided to municipal districts (city districts), with the exception of those transferring a negative transfer to the regional budget based on the number of residents of the municipal district (city district) per resident.
This norm is of particular importance, since only in this case the specified part of the subsidies can be fully or partially replaced by additional (differentiated) standards for deductions from the income tax of individuals.
This equally applies to the possibility of replacing subsidies from regional funds for financial support of settlements - only in terms of replacing the per capita transfer.
According to the Book Code of the Russian Federation, changes in differentiated deduction standards
budgets of settlements and budgets of municipal districts (city districts) are not allowed only for one financial year. Since the goal of replacing subsidies to equalize budgetary security with additional standards for deductions from taxes and fees is to create interest among local authorities in taking measures aimed at increasing the tax base, fixing them for one year will not be enough to achieve this goal .
In this regard, proposals to establish additional (differentiated) deduction standards should be considered for a period of at least three years, which is of particular relevance within the framework of medium-term budget planning.
It should be noted that differentiated contribution standards in international practice are considered as a tool that does not comply with the principles of best practice and theoretical approaches to building an effective system of interbudgetary transfers.
3. Subsidies to local budgets from the budget of a constituent entity of the Russian Federation -
derations
Taking into account the clarification of the definition of forms of interbudgetary transfers, subsidies to local budgets are understood as interbudgetary transfers provided to the budgets of municipalities for the purpose of co-financing expenditure obligations arising in the exercise of the powers of local governments to resolve issues of local importance (Article 139 of the Budget Code of the Russian Federation) . In addition, subsidies may be provided from the federal budget to the budgets of the constituent entities of the Russian Federation in order to co-finance not only the expenditure obligations of government bodies of the constituent entities of the Russian Federation, but also the expenditure obligations of
authorities of local governments to resolve issues of local importance (Article 132 of the Budget Code of the Russian Federation).
The totality of subsidies to local budgets from the budget of a constituent entity of the Russian Federation forms a regional fund for co-financing expenses. At the same time, the Budget Code of the Russian Federation provides for the possibility of providing subsidies not only based on the co-financing criterion, but also to equalize the provision of municipalities for the implementation of their individual expenditure obligations.
The goals, conditions for the provision and expenditure of subsidies to local budgets and their distribution between municipalities are established by the law of the constituent entity of the Russian Federation and (or) regulations of the highest executive bodies of state power of the Russian Federation.
It is important to note that, unlike regional funds for financial support of municipalities, the formation of a regional fund for co-financing expenses is not the responsibility of a constituent entity of the Russian Federation, since in accordance with budget legislation it has the right to provide financial assistance to municipalities in order to financially support their powers to resolve certain issues of local importance. The decision to create this fund and its volume should be made taking into account the objective need to support certain areas of the budget policy of municipalities.
Of course, targeted financial assistance, in contrast to fixing taxes and providing subsidies to equalize budgetary security, is an effective tool for influencing the budget policy of municipalities. The purpose of the subsidies is to stimulate the effective implementation by local governments of certain of their own powers that are priorities for the socio-economic development of the region.
Targeted subsidies are designed to solve both problems of an investment nature (providing the population with infrastructure for the provision of municipal budget services) and tasks of carrying out current expenses related directly to the provision of budget services.
The level of co-financing of a specific authority should be determined taking into account the interest of local governments in complying with the conditions for the provision of subsidies and should not lead to significant gaps in the budgetary provision of municipalities. Taking into account this position, it is an extremely important condition for the effective use of subsidies to determine the optimal ratio of the volumes of regional funds for financial support of municipalities and the regional compensation fund.
4. Subsidies to the budget of a constituent entity of the Russian Federation from local budgets
This form of interbudgetary transfers, the so-called “negative transfers,” is a mechanism of interbudgetary regulation designed to more effectively equalize the budgetary provision of municipalities by centralizing part of the funds from the budgets of the most secure ones.
baked municipalities into the budgets of the constituent entities of the Russian Federation for their subsequent redistribution between less well-off subsidized municipalities. The establishment of standards for tax deductions to local budgets, leading to a significant increase in budgetary security in individual municipalities, can be compensated by the redistribution of “surplus funds” from them to less secure local budgets, which allows reducing the gap in budgetary security between municipalities.
The “negative transfer” mechanism is applied if the tax revenue of a municipal entity exceeds 1.3 times the average value for a constituent entity of the Russian Federation.
Making a decision to introduce a mechanism of “negative transfers” falls within the competence of the constituent entities of the Russian Federation. This means consolidating the practice of “negative transfers” and giving regional authorities the right to unilaterally make decisions on the recovery of part of their own income from individual municipalities. However, in highly subsidized regions, even if there are significant gaps in the budgetary provision of municipalities, it is noted that it is impossible for individual municipalities to provide financial resources for expenditure obligations only from tax revenues. In this regard, despite the fact that the municipalities with the highest incomes in terms of tax revenues are financially supported to a greater extent by tax revenues, their volume is insufficient to fulfill their own powers, which are not taken into account when calculating “negative transfers”. Thus, it seems inappropriate to introduce a “negative transfer” mechanism in cases where such municipalities, when equalizing budgetary security, will need to provide for the allocation of interbudgetary transfers.
The procedure for calculating and transferring interbudgetary subsidies is established by the subject of the Russian Federation subject to the following requirements established by the Budget Code of the Russian Federation:
subsidies are transferred to those municipalities in which, in the reporting financial year, estimated tax revenues (excluding tax revenues for additional deduction standards) exceeded the level established by the law of the constituent entity of the Russian Federation, which cannot be lower than twice the average for settlements and municipalities, respectively districts (urban districts) per capita;
the volume of subsidies is calculated in proportion to the excess of estimated tax revenues of the level established by the law of the constituent entity of the Russian Federation, and for a separate municipal entity this volume cannot be more than 50% of the difference in exceeding two times the average level of estimated tax revenues;
subsidies are transferred to the budget of a constituent entity of the Russian Federation and are taken into account in its budget revenues and budgetary allocations of the regional fund for financial support of settlements, and those provided from the budgets of municipal districts
districts (city districts) - respectively, in the budget allocations of the regional fund for financial support of municipal districts (city districts), i.e. are a source of formation of regional funds for financial support of municipalities;
Compliance with the rule for ranking municipalities, in accordance with which the estimated tax revenues of a municipality per capita after excluding interbudgetary subsidies cannot be lower than the estimated tax revenues per capita of another municipality, which before the exclusion had a lower level of estimated tax revenues per capita.
The volume of interbudgetary subsidies is approved by the law of the constituent entity of the Russian Federation on the budget of the constituent entity of the Russian Federation separately for each municipal entity, which in turn also provides for the transfer of corresponding budget funds to the regional budget in the local budget.
If the representative body of a municipal entity fails to comply with the requirements for the transfer of interbudgetary subsidies (“negative transfers”) to
regional budget, their collection is carried out through deductions from federal and regional taxes subject to transfer to local budgets, in the manner established by the financial authority of the constituent entity of the Russian Federation.
5. Subventions to local budgets from the budgets of constituent entities of the Russian Federation
Subventions to local budgets are understood as interbudgetary transfers provided to local budgets in order to financially support the expenditure obligations of municipalities in connection with their exercise of powers of the Russian Federation and constituent entities of the Russian Federation. That is, subventions are provided only in the case of delegation of state powers to the municipal level.
parts of the transfer of powers of the Russian Federation should be taken into account that those transferred for implementation to public authorities of the constituent entities of the Russian Federation can be transferred by the laws of the constituent entities of the Russian Federation to local government bodies only if such a right is granted to them by federal laws providing for the transfer of the corresponding powers of the Russian Federation to public authorities of the constituent entities of the Russian Federation (for example, powers regarding the registration of acts civil status, military commissariats, jurors).
Part of the transfer of regional powers to the municipal level should take into account the provisions of the Federal Law of 06.10.99 No. 184-FZ “On the general principles of the organization of legislative (representative) and executive bodies of state power of the constituent entities of the Russian Federation,” establishing a closed list of state powers of the constituent entity of the Russian Federation, which by law of the subject can be transferred for implementation by local government bodies. So, for example, the formation of administrative commissions for the purpose of bringing to administrative responsibility is the power of public authorities to enforce
norms and rules established by the state, which cannot be implemented by local government bodies that are not part of the system of government bodies.
The totality of subventions to local budgets forms a regional compensation fund, the distribution of which is approved by the law on the budget of a constituent entity of the Russian Federation for each municipality and type of subvention. At the same time, the Budget Code of the Russian Federation provides for the approval of a subvention undistributed between municipalities in the amount of no more than 5% of the total volume of the corresponding subvention. The specified reserve can be distributed in the process of executing the regional budget for the same purposes without amending the law on the budget of a constituent entity of the Russian Federation.
6. Other interbudgetary transfers and budget loans , predos -
transferred from the budgets of the constituent entities of the Russian Federation to local budgets
The Budget Code of the Russian Federation provides for the possibility of allocating other interbudgetary transfers to the budgets of municipalities from regional budgets. At the same time, a strict limitation has been established on the volume of these transfers - no more than 10% of the total volume of interbudgetary transfers to local budgets (with the exception of subventions) in cases and in the manner established by the law of the subject of the Russian Federation. As a rule, other interbudgetary transfers are sent by constituent entities of the Russian Federation to municipalities to balance their budgets.
The Budget Code of the Russian Federation provides for the provision of budget loans to local budgets from the budgets of the constituent entities of the Russian Federation. The Budget Code of the Russian Federation contains general norms regulating the procedure for providing budget loans from the budgets of the budget system of the Russian Federation to all categories of borrowers (public entities or legal entities) and ensuring their repayment. In particular, it has been established that local budgets from the budget of a constituent entity of the Russian Federation can be provided with budget loans for a period of up to one year. The grounds, conditions for the provision, use and repayment of these loans are established by the laws of the constituent entities of the Russian Federation on the budgets of the constituent entities of the Russian Federation and legal acts of the highest executive bodies of state power of the constituent entities of the Russian Federation adopted in accordance with them.
7. Interbudgetary regulation at the municipal level
As part of the reform of federal relations and local self-government, spending powers are delimited between types of municipalities and revenue sources are assigned to the corresponding local budgets.
The powers of local self-government bodies of settlements, urban districts and municipal districts to resolve issues of local importance are exercised by them independently. At the same time, Federal Law No. 131-FZ refers to issues of local importance of the municipal district, equalizing the budgetary provision of settlements. In this regard, there are
relationships between districts and settlements on issues of regulation of budget legal relations, organization and implementation of the budget process.
To implement this power, the Budget Code of the Russian Federation provides for the following budgetary powers of the municipal district:
determining the procedure for providing interbudgetary transfers from the budgets of municipal districts to the budgets of settlements and providing interbudgetary transfers;
establishing, in accordance with federal laws and laws of the constituent entities of the Russian Federation, standards for deductions to the budgets of settlements from federal taxes and fees, including taxes provided for by special tax regimes, regional and local taxes subject to credit in accordance with the Budget Code of the Russian Federation and (or) laws of the constituent entities of the Russian Federation to the budgets of municipal districts.
Thus, the choice of the balance of priorities between stimulating local authorities of settlements to develop the tax base and the uniform distribution of financial assistance between the settlements of the corresponding region faces not only the constituent entities of the Russian Federation, but also the local governments of municipal districts in relation to those located on their territory settlements.
When determining the choice of inter-budgetary regulation mechanisms, it is taken into account that settlements receive financial assistance from regional funds for financial support of settlements, and its volume is determined by the law of the subject of the Russian Federation on the budget of the subject of the Russian Federation. At the same time, in accordance with the requirements of the Budget Code of the Russian Federation, uniform standards for contributions to the budgets of settlements are established by a decision of the representative body of the municipal district, which must have an unlimited validity period. In this regard, districts may have objective grounds for revising the standards for contributions to settlement budgets.
Financial assistance from the budget of the municipal district to the budgets of settlements can be provided in the following forms of interbudgetary transfers:
subsidies from the budgets of municipal districts to equalize the budgetary provision of settlements;
subsidies transferred from the budgets of settlements to the budgets of municipal districts to resolve issues of local importance of an intermunicipal nature;
other interbudgetary transfers.
In order to equalize the budgetary provision of settlements, as part of the expenditures of local budgets of municipal districts, subsidies are provided for equalizing the budgetary provision of settlements, which form the district fund for financial support of settlements (RFSF). Distribution of RFPPP based on an assessment of the level of budgetary provision in
settlements are carried out with the aim of increasing it in the least affluent municipalities due to different socio-economic development.
When determining the level of estimated budgetary provision of settlements, the use of indicators of actual income and expenses for the reporting period and (or) indicators of projected income and expenses of individual settlements since 2009 is not allowed.
The volume of the RFPPP (with the exception of subsidies provided through subventions from the regional compensation fund) is determined independently by local governments of municipal districts.
The laws of a constituent entity of the Russian Federation may establish the following approaches to determining the volume of these funds:
as a percentage of the municipal district’s own budget revenues;
as a percentage of the volume of expenditure powers of settlements;
based on the need to ensure a given level of budgetary provision for settlements, established by the municipal district when equalizing the budgetary provision of settlements;
indexation of the volume of RFPPP established in the current financial year to the inflation level.
Federal Law No. 131-FZ granted the right to local self-government bodies of individual settlements that are part of a municipal district to conclude agreements with local government bodies of the municipal district on transferring to them part of their powers at the expense of subventions provided from the budgets of these settlements to the municipal budget district. Accordingly, local government bodies of a municipal district have the right to enter into similar agreements with local government bodies of individual settlements.
However, the Budget Code of the Russian Federation does not provide for the allocation of subsidies and subventions from the budget of the municipal district to the budgets of settlements to finance delegated powers or co-financing of individual issues of local importance and the creation, accordingly, of district compensation funds and funds for co-financing expenses.
Consequently, this mechanism of interbudgetary regulation can only be implemented in the form of other interbudgetary transfers.
Despite the widespread practice of concluding intermunicipal agreements on the transfer of powers between municipal districts and settlements, the Budget Code of the Russian Federation does not contain provisions regarding the ability of local self-government bodies of municipal districts and settlements to transfer interbudgetary transfers in accordance with concluded agreements.
Currently, work is underway to introduce an addition to the Budget Code of the Russian Federation regarding the possibility of providing other interbudgetary transfers to the budgets of settlements from the budgets of municipal districts and providing other interbudgetary transfers from the budgets of settlements to the budgets of municipal districts for the exercise of powers to resolve issues of local importance in accordance with the concluded agreements in cases and manner,
provided for by municipal legal acts of the representative body of the municipal district (settlement).
Resolving this issue is urgently necessary, since certain issues of local importance in some cases can be more effectively resolved at the district level, since residents of nearby settlements can use the corresponding services on the territory of the settlement. Examples include:
organization of library services;
creating conditions for organizing leisure time and providing residents of the settlement with the services of cultural organizations;
protection and preservation of cultural heritage sites located on the territory of the settlement;
providing conditions for the development of mass physical culture and sports on the territory of the settlement;
organization and implementation of activities for mobilization training
Today, the Budget Code of the Russian Federation provides only a special form of interbudgetary transfers - interbudgetary subsidies transferred from the budgets of settlements to the budgets of municipal districts, the representative body of which is formed from among representatives of the settlements and its competence includes resolving issues of local importance of an intermunicipal nature.
The size of these interbudgetary subsidies is approved by the decision of the representative body of the municipal district and the decisions of the representative bodies of settlements on local budgets. In this case, the size of the subsidy should be established based on a standard standard per resident or consumer of municipal services that is uniform for all relevant settlements of a given municipal district.
THE ROLE OF INTERBUDGETARY SUBSIDIES IN THE DEVELOPMENT OF SUBJECTS OF THE RUSSIAN FEDERATION
Fedintseva Elena Olegovna
5th year student, Department of State and Municipal Finance, Financial University under the Government of the Russian Federation, Moscow
Terekhova Tatyana Borisovna
scientific supervisor, senior teacher,Financial University under the Government of the Russian Federation, Moscow
In the modern world, many states are faced with the problem associated with the need to provide financial assistance to the subnational level of the budget system. Such assistance can be implemented through various forms of interbudgetary transfers. Thus, in the Russian Federation, the redistribution of funds between budgets of the budget system can be carried out in the form of grants, subsidies, subventions, or in the form of other interbudgetary transfers.
Interbudgetary transfers vary in terms of purpose and terms of provision. Subsidies are aimed at equalizing budgetary security, subsidies - at shared financing of targeted expenses, and subventions - at financing delegated powers.
The targeted nature of subsidies implies the allocation of funds at the disposal of specific recipients, indicating the purposes for their use, and equity financing is aimed at motivating the recipient of funds to accept and fulfill properly co-financed expenditure obligations. It should be noted that the goals of providing subsidies are determined on the basis of the principles of achievability, finality, as well as stimulation of transformations in a certain area, in accordance with the conditions for expanding the independence and responsibility of the country's regions for the effectiveness of the use of subsidies.
The provision of financial assistance is predetermined by the need to smooth out the imbalance between the amount of income and expenses in the constituent entities of the country. It should be noted that intermediate level budgetary provision in Russia is 1,000, the value of the indicator ranges in 2014 from 0.570 in the Chukotka Autonomous Okrug to 2,585 in Moscow (Table 1), most regions are subsidized, since the amount of expenses prevails over the volume of their own income.
Table 1.
Minimum and maximum value of the level of estimated budgetary provision in 2014
The primary task of providing interbudgetary transfers is to equalize the budgetary security of the regions and stabilize the imbalance in the levels of their socio-economic development. In this regard, it is necessary to determine which types of interbudgetary transfers should dominate. There are many approaches to solving this problem.
Currently, there is a reduction in inter-budgetary subsidies (Table 2) in favor of grants and subventions, however, they remain a tool through which national priorities are promoted at the regional and local levels. The most significant role seems to be the role of subsidies within the framework of the implementation of various government programs, in particular, in regional development programs.
Table 2.
Structure of interbudgetary transfers from the federal budget to the budgets of constituent entities of the Russian Federation in 2015-2017, billion rubles.
|
No. |
Indicator |
2015 |
2016 |
2017 |
||
|
% to previous year |
% to previous year |
|||||
|
including |
||||||
|
Subsidies |
||||||
|
Subventions |
||||||
|
Other intergovernmental transfers |
||||||
In the context of program-target budgeting, issues of assessing the efficiency and effectiveness of the distribution and use of budget funds become particularly relevant. Therefore, analysis of the effectiveness and use of subsidies becomes important. At the moment, issues of the provision and use of interbudgetary subsidies are considered regardless of the goals of regional development policy. Only an integrated approach to resolving issues of assessing the provision and use of interbudgetary subsidies can ensure the implementation of the basic principles of the budget system of the Russian Federation, such as the efficiency of use of budget funds, transparency, reliability of the budget, targeting and targeted nature of budget funds.
In addition, there is no unified methodological approach to assessing the effectiveness and efficiency of subsidies. In our opinion, the mechanism for providing subsidies should be analyzed by considering government programs that are financed, including through subsidies. It is worth noting that the use of interbudgetary subsidies is successful and effective under the conditions of a well-thought-out direction for the use of funds, control and monitoring of the areas of use of attracted resources and a properly developed system for assessing the effectiveness of the results obtained.
In the budgetary sphere, a number of unresolved problems remain, such as the lack of an objective unified methodology for assessing the results of government programs, the use of poor-quality formulations, and the inconsistency of target indicators with the goals and objectives of the programs, which negatively affects the effectiveness of the provision of subsidies and other interbudgetary transfers. The inconsistency of target indicators with the goals and objectives of the program and the need for their optimization and improvement are clearly demonstrated using the example of the Federal Targeted Development Program of the Republic of Ingushetia in Table 3.
Table 3.
Target indicators and indicators of implementation of the Federal Target Program “Socio-economic development of the Republic of Ingushetia for 2010-2016”
|
Indicator name |
2014 |
2015 |
2016 |
|
1. Share of forced migrants provided with housing in the total number of forced migrants (percentage) |
|||
|
2. Number of registered unemployed (thousand people) |
|||
|
3. Total area of residential premises per inhabitant on average (at the end of the year) (sq. meters) |
|||
|
4.Provision of hospital beds per 10 thousand people (beds) |
|||
|
5. Share of students studying in one shift in the total number of students (percentage) |
|||
|
6. Physical wear and tear of public infrastructure networks |
|||
|
7.Grain collection (thousand tons) |
|||
|
8. Gross harvest of vegetables (thousand tons) |
|||
|
9. Production of livestock and poultry in slaughter weight (thousand tons) |
For example, assessing the impact of a program on the development of education based solely on the share of students studying in one shift in the total number of students seems extremely biased. At the same time, despite the fact that the development of the healthcare system and provision of social protection, highlighted as one of the main objectives of the socio-economic development program of the Republic of Ingushetia, there are no indicators by which it would be possible to characterize the changes occurring in the healthcare system due to the implementation of the program. In our opinion, for the successful implementation of the program’s goals, the following changes should be made to the target indicators of the program’s implementation (Table 4), the indicators should be divided into areas, and their further improvement should be carried out.
Table 4.
Additional indicators of the Federal Target Program for the development of the Republic of Ingushetia
|
Indicator name |
||
|
Development of the education system |
||
|
The share of schoolchildren studying under federal government educational standards second generation, in the total number of schoolchildren, % |
||
|
Share of schoolchildren who are given the opportunity to study in accordance with basic modern requirements, in the total number of schoolchildren, % |
||
|
Healthcare development |
||
|
Satisfaction of the population with medical care, including urban and rural populations (% of respondents) |
||
|
Mortality rate of the population, including urban and rural populations (number of deaths per 1000 population) |
||
*The table is compiled based on data from the Government of the Republic of Ingushetia dated January 22, 2015 No. 7, which does not contain data for 2016
In order to eliminate contradictions between programs at different levels, the proposed indicators were selected in accordance with regional programs for the development of education and health care. Unification of indicators in combination with an integrated approach will allow you to achieve the highest results from the implementation of the program.
The issue of monitoring the results of the implementation of government programs remains open: there are a significant number of methods for assessing results, but in the absence of a unified approach, without a doubt, their use does not seem effective and efficient.
Despite the strategic importance of this problem, to this day, neither in Russian nor in foreign practice has a unified methodology been created that would allow constructing a system for assessing the effectiveness of implemented budget programs at different levels. An analysis of the results of the implementation of a number of programs in the Russian Federation indicates that what is common to most of them is the failure to meet target indicators and, as a consequence, the failure to achieve planned results.
The effectiveness of the implementation of government programs is influenced by a number of factors. First of all, it should be noted that the complex nature of government programs predetermines the need for a structured approach to their development, since regardless of whether funds are spent in a targeted or non-targeted direction, the result from their provision will be quite low if a clear statement of the goal is not initially formulated ( or goals) of the program and it lacks a logical structure. In addition, elements of an effective system of government programs include the creation of an incentive system for achieving planned indicators and, which seems to be one of the most important aspects, the presence of an effective performance evaluation system.
In Russia, a situation has arisen where there is parallel huge amount systems for assessing the effectiveness and efficiency of the activities of executive authorities. At the same time, there are indicators for assessing the effectiveness of government programs (subprograms and federal target programs), investment climate, road maps, etc.
Different approaches and methods may differ in formulas, ranges of values or wording, but the essence remains the same: according to certain rules, the program gains a certain number of points and, depending on the range of the accumulated amount, a conclusion is drawn about the ineffectiveness or efficiency of the program. In most cases, the implementation of the program is considered through the following methods: the degree of achievement of the result (achievement of target indicators); complete use of budget allocations; implementation of planned activities.
In addition to the above methods, it is necessary to take into account how economical, effective and productive the budget expenditures were. When developing methods for assessing the effectiveness of programs, these criteria should be given priority, since they most fully reflect the very essence of effectiveness assessment. Accordingly, efficiency implies finding economic solutions with the lowest possible costs, effectiveness - compliance of the results obtained with the set goals and volumes of expenses, and productivity - the ratio of the number of services (works) to the amount of costs.
The current situation requires improvement, development and implementation of unified approaches aimed at increasing the efficiency of government program management.
In addition to ways to solve the problem of assessing the effectiveness of government programs, one of the most pressing areas for reforming the budget system seems to be the process of consolidating subsidies. The budget messages of the President of the Russian Federation and in studies devoted to the study of the issue of increasing the efficiency and transparency of interbudgetary relations in Russia indicate the need to replace a significant part of the subsidies provided from the federal budget to the budgets of constituent entities with so-called block transfers. The need to reduce (consolidate) subsidies is primarily due to the fact that subsidies as interbudgetary transfers are targeted in nature, while individual subsidies are provided in small volumes, and the total number of subsidies in 2015 is about 100 pieces, which, in turn, due to the targeted the direction of the transfer has a negative impact on the financial independence of the regions.
It seems logical, in our opinion, to assume that the costs of administering this type of transfer may be comparable or greater than the benefits received. Accordingly, with a decrease in the number of subsidies, there will be a reduction in management costs, which will have a beneficial effect on the results of the transfer.
Since 2013, work has been carried out to consolidate subsidies to the budgets of the constituent entities of the Russian Federation within the framework of state programs. It is expected that consolidation in the medium term will be carried out according to the principle of “one government program – one subsidy”. At the same time, attention is focused on the fact that at the federal level it would be advisable to set specific goals for recipients of subsidies and monitor the results of this work, and the choice of ways to achieve the goals and objectives will be given to recipients of subsidies.
It is worth noting the advantages of block transfers over classic subsidies: increased intersectoral flexibility, focus on regional priorities and the ability to find ways to optimize costs. In addition, consolidation of subsidies will reduce the number of administrative procedures that accompany the provision of subsidies and optimize costs. As a result of such a budgetary maneuver, the degree of freedom will expand, the efficiency of these subsidies will increase, and the responsibility for exercising the powers of state authorities of the constituent entities of the Russian Federation will increase, since they will determine the proportions and volumes of spending the block subsidy in each specific area independently. The ability to use funds taking into account the specific challenges and problems facing a particular region will significantly improve the socio-economic situation and ensure significant economic growth, since at the federal level it is often more difficult to take into account regional specifics than at the subnational level.
It would be wrong to say that the successful implementation of government programs depends solely on resolving the issue of increasing subsidies. The results of the implementation of government programs depend on a complex of factors: economic, social, administrative, cultural-historical, territorial, etc. However, the consolidation of subsidies is one of the important steps towards the continuous process of reforming interbudgetary relations and interbudgetary transfers.
Thus, the process of reforming interbudgetary subsidies is currently underway, the successful implementation of which will improve the effectiveness of government programs within which subsidies are provided. The successful implementation of regional development programs and their evaluation, in turn, will contribute to the socio-economic development of regions, industrial growth, infrastructure renewal, creation of favorable conditions for the implementation of socio-economic policies and increased efficiency of spending budget funds.
References:
- Afanasyev M.P., Shash N.N. Tools for assessing the effectiveness of budget programs // Issues of state and municipal management. - 2013. - No. 3. - P. 48-69.
- Budget Code of the Russian Federation dated July 31, 1998 No. 145-FZ (as amended on December 26, 2014).
- Klimanov V.V., Mikhailova A.A. Methods for assessing the effectiveness of state programs in the regions // Budget. - 2014. - No. 5. - P. 69-71.
- Decree of the Government of the Republic of Ingushetia dated September 2, 2014 No. 168 “On approval of the state program of the Republic of Ingushetia “Development of Education.”
- Decree of the Government of the Republic of Ingushetia dated January 22, 2015 No. 7 “On the Program of State Guarantees for the provision of medical care to citizens in the Republic of Ingushetia for 2015 and for the planning period of 2016 and 2017.”
- Decree of the Government of the Russian Federation dated April 15, 2014 No. 310 “On approval of the state program of the Russian Federation “Creating conditions for effective and responsible management of regional and municipal finances, increasing the sustainability of budgets of the constituent entities of the Russian Federation.”
- Decree of the Government of the Russian Federation dated December 24, 2009 No. 1087 (as amended on November 27, 2014) “On approval of the federal target program “Socio-economic development of the Republic of Ingushetia for 2010 - 2016.”
- Order of the Government of the Russian Federation dated November 17, 2008 No. 1662-r (as amended on August 8, 2009) “On the Concept of long-term socio-economic development of the Russian Federation for the period until 2020”;
- The level of estimated budgetary sufficiency of a constituent entity of the Russian Federation for the next financial year, calculated in accordance with the methodology for the distribution of subsidies to equalize the budgetary sufficiency of the constituent entities of the Russian Federation, approved by Decree of the Government of the Russian Federation of November 22, 2004 No. 670 “On the distribution of subsidies to equalize the budgetary sufficiency of constituent entities of the Russian Federation” Federation". Access from official website of the Ministry of Finance of the Russian Federation, free [Electronic resource] - Access mode. - URL: http://www.minfin.ru/common/upload/library/2014/04/main/RBO_2014-2016.pdf (accessed 04/30/2015).
- Federal Law of December 1, 2014 No. 384-FZ “On the federal budget for 2015 and for the planning period of 2016 and 2017.”
- Shash N.N. Managing the effectiveness of government programs: methodological foundations for developing a program budget // Manager. - 2015. - No. 1 (53). - P. 4-15.
