The state budget

The state budget is an indispensable condition for the work of any state in need of financial resources for the performance of its functions.

For the first time, a single estimate of costs and incomes was attempted in England in the late 17th century.

At the time of its formation, the state budget was expressed in an estimate of the country's possible revenues and expenditures. This definition met the requirements of that time. Its origin was due to the need to create a unified set of disparate settlements related to revenues and expenditures for the most important measures of a nation-wide nature.

In the development of society, the definition used has become obsolete. Thus, the concept of the state budget begins to acquire the character of a major financial plan, while determining the movement of the bulk of the country's financial reserves.

Expansion of state functions contributes to an increase in the number of sources of expenditure, income. The state budget, whose structure is more complicated, is connected with other state plans.

In the Russian Federation, the country's financial plan is drawn up for a year. At the end of this period, the government reports on its implementation.

The state budget is an important link in the process of redistribution of national income, playing a special role in social reproduction. Thus, through the main financial plan, about 50% of the national income is redistributed, which in many countries is about 3/4 of all money. In turn, this gives the state an opportunity not only to satisfy the needs of the state significance, but also to exert an active influence on the whole social life, thus fulfilling the programs for social and economic development in the state.

The provision, which is assigned to the state budget, gives it legal force. Therefore, the main financial plan is approved by the highest legislative bodies (parliaments). Implementation of the plan is mandatory for all participants of the financial process.

The budget of the country is of great economic importance. First of all, it is expressed in the fact that the financial plan through the system of revenues, direction and amount of financial resources has an impact on socio-economic processes. Among them, it should be noted in particular, employment, business activity, consumer products and equipment market and others.

The main components of the main financial plan are the expendable and profitable parts. In the revenue side, the sources of finance are reflected, in the expenditure part, the purposes for which the accumulated funds are directed.

The sources of income include taxes, the issue (additional issue) of credit and paper money, government loans (bills, securities and others), as well as loans provided by international organizations.

In developed countries, the structure of the expenditure side is defined as follows:

- at least 50% of the budget is spent on meeting social needs;

- about 20% is aimed at maintaining the defense capability of the state.

The remaining funds are allocated for the development of infrastructure (communications, roads, landscaping, etc.), servicing of public debts (debt), provision of subsidies to enterprises.

The state budget, whose functions include distribution (redistribution) and control, allows not only to concentrate finances in the hands of the state, but also to check the timeliness and completeness of their revenues to the country. Thus, the main financial plan is a reflection of the processes taking place within the economic structure.