Budget system and its principles

The budget system of the country implies a set of measures for the accumulation, distribution and use of funds aimed at the implementation of critical social programs, the provision of management machinery, as well as improving the welfare of citizens.

The main financial document of the country is the state budget, which is approved by the government for the current year. If we consider the Russian Federation, then the budget system includes three main components:

1. Federal (republican) budget.
2. The budget of the subjects of the federation.
3. Local.

The republican budget concentrates all funds coming from different sources and goes to support the most important spheres of management, meet social needs, maintain the country's military capacities, and maintain the state administrative apparatus. In addition, part of the funds are allocated to lower-level budgets as needed.

According to the structural criterion, two main parts are distinguished: income and expenditure. The first is formed by the receipt of mandatory payments and includes various sources. The expenditure part reflects the mechanism for allocating the accumulated funds according to the pre-approved plan. When forecasting the budget for the forthcoming period, it is necessary to adhere to a stable balance of opposing articles. In practice, it is extremely difficult and often impossible to reach an equilibrium position.

In connection with the current state of the economy, the budget is in short supply, that is, the inflow of funds is much less than its outflow. The government sets a limit on the amount of the deficit, the excess of which can lead to negative consequences. Then a measure of impact is applied, such as sequestration. It involves reducing government spending in all areas of its activities. Only certain articles protected by the current legislation are subject to exclusion.

It is worth noting such principles of the budgetary system:

• The principle of unity implies the existence of one legal base for all subjects of the economy, which presupposes a certain procedure for spending funds, unified principles for financing various branches of management, unified forms of settlements not only with counterparties, but also with state bodies.
• The country's budget system should be structured in such a way that each authorized body clearly knows its rights and responsibilities. Especially it concerns the formation and distribution of budgets of all levels. That is, the lower levels also have the right to manage the expenditure part at their own discretion, if the decision taken does not contradict the norms of the law.
• The principle of independence means that all budgets have the right to form their own sources of income, determine the needs and amounts of payments necessary for the implementation of critical social programs.
• The principle of completeness of the reflection of the movement of financial resources implies the careful maintenance of documentation with the introduction of the required details, which makes it possible to fully assess the scale of the receipt of funds from each available source and the scope of their expenditure. Thus, the supervisory authorities have the opportunity to monitor the appropriateness and honesty of the allocation of financial resources at each level.

In addition, the budget system must comply with the principles of transparency, reliability, efficiency and balance. Thus, decisions taken at any level should be open to anyone who wants to know, and for this, financial plans for the next reporting period are regularly printed and published in specialized publications.

In conclusion, it can be said that the budgetary system is a rather complex set of various organizations whose goal is to improve the well-being of citizens and the country's reputation in the international arena.