Justification of the draft budget of the municipality. Preparatory work to justify the draft budget Budget planning and its structure

Budgeting and justifying IT costs is a fairly simple procedure that allows company management to see the benefits of investing in technology, and technical specialists to share responsibility for the condition of the IT infrastructure with management.

IT budgeting can be divided into three steps:

First stage: gathering information

To draw up (and justify) an IT budget, you need to know:

1. What the company has already bought in the past and what it continues to pay for in the present, namely:

equipment in use and in reserve,
software licenses,
service contracts,
operator services,
consumables and their costs.

2. What information technologies are used in the company and for what.

A complete list of services (IT services) that a business uses in its work, ranging from the banal “e-mail”, “printing documents”, “telephone communication”, ending with management systems, security and specific business applications.

How will you be able to use this catalog of services (IT services)? Read at the end.

3. What are the goals, plans and objectives of the company for the next financial period, what problems should be solved?

Reorganization of divisions, increase in personnel, emergence of new tasks, changes in requirements for performance, reliability and security of information systems.

At this stage, it is useful to communicate with both the company's management and the heads of structural divisions in order to understand their needs for changing the quality of service, reliability, usability of systems, and also to clarify the list of IT services they use. Additionally, you can conduct a survey of users, collect the requests received recently.

Second stage: analysis

The task of this stage is to find those points that prevent you from achieving your goals at the moment or may interfere in the future. To do this, I recommend analyzing the following indicators:

Performance.

Is the performance of the systems currently sufficient for all users? Does the current level of system performance meet business expectations? What is the weak link now? Will there be enough productivity if the load grows in accordance with development plans?

Reliability.

Are sufficient measures taken to ensure data integrity? Is it acceptable to change equipment as it fails, or should it be upgraded in advance? Will you be able to restore functionality in the required time frame in the event of a failure, or do you need to purchase additional hardware or software in advance for this? Are there any known issues that affect the uptime of IT systems?

Functionality.

Do existing applications solve user and business problems? Do they solve them effectively? What is the company missing now? What needs to be changed to meet future requirements? Are existing business applications relevant at all?

Safety.

Is company data protected from external threats? And from the inside? Does the protection system correspond to the level of threats? How will information security requirements change in the foreseeable future?

Convenience.

Does anything create discomfort in the work of users with computer equipment? Are printers conveniently located in the office, are computers very noisy, are all interfaces and systems clear to users, do they complain about something else? Can it be improved?

Operating expenses.

Are current operating costs optimal? Do they match the market value? How much does this or that service cost the company every month? What are these costs? Can they be reduced without harming the company?

Stocks

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Are there necessary consumables? How much additional equipment and licenses will be needed in case of expansion? Will additional one-time or permanent services be needed in case of planned business development?

Third stage: budgeting and justification

Actually, all the main work was done at the previous stages. The last task is to present the findings to management in a form that is understandable and convenient for decision-making. I usually divide all expenses into the following categories:

Operating expenses for maintaining activities: consumables, service contracts, services, remuneration of specialists.
Necessary capital investments, in the absence of which serious losses for the business are possible. This includes expenses that the company cannot avoid and the only question is whether it will invest money in it in advance, or when it will already suffer the indicated losses.
Recommended investments - combined with necessary investments, can significantly improve performance, as well as eliminate risks that can have a negative impact on the business.
Development costs are the amount of investment required to keep systems running and maintain quality if business growth plans are implemented.
Potential investments to improve functionality and/or employee experience with IT systems. This item is a red flag for financiers, allowing them, when agreeing on the budget, to refuse you this part and thereby honorably fulfill their duty without fear of consequences.

And the last but most important detail is the rationale for each of the budget items. Business, unfortunately, does not operate with the concepts of a “six-year-old server” and does not understand anything in technology - it operates only with categories of needs for IT services, opportunities, risks and their cost for business. The catalog of services (IT services), which you did at the very beginning, you need in order to communicate with the company's management in the same language - this is your point of understanding. Having identified the need for equipment, software, personnel, etc., justify the need for them with specific performance indicators of the end IT services (risks, quality, response speed, etc.) that the business receives or will receive.

Good luck!

Ivan Kormachev
IT department company

The budget process is carried out independently by local governments. The general legal framework for this process is established by the Budget Code of the Russian Federation; the specification of the provisions of federal legislation at the level of municipalities should be carried out by municipal legal acts. In accordance with Art. 44 of Law No. 131-FZ, the procedure for the formation, approval and execution of the local budget, as well as the procedure for monitoring its implementation, should be determined by the Charter of the municipality. A more detailed regulation of the budget process should be carried out by the Regulations on the budget process. The regulation on the budget process should determine the procedure and terms for each stage of the budget process, the budgetary powers of all participants in the budget process, the principles for the formation and spending of budget funds.

The organization of the budget process largely depends on which bodies perform the functions of the main administrators and administrators of budgetary funds, namely:

determine tasks for the provision of municipal services for subordinate recipients of budgetary funds, taking into account the standards of financial costs,

approve estimates of expenses and incomes of recipients of budgetary funds,

draw up a budget list, distribute the limits of budget obligations among budget recipients and execute the corresponding part of the budget,

control the targeted use of budgetary funds by subordinate recipients of budgetary funds,

prepare and submit to the body responsible for monitoring the execution of the budget, a summary report on the execution of the budget for the allocated funds, a summary estimate of income and expenses, as well as a report on the implementation of the assignment for the provision of municipal services.

There are two main options. In the first option, all sectoral departments of the local administration are local administration bodies, each of them is endowed with budgetary powers of the main managers or managers of budgetary funds. Such a system of chief administrators of budgetary funds can be created in large municipalities in which the number of subordinate institutions is significant (municipal districts, urban districts, individual urban settlements).

The main stages of the budget process in the municipality

In total, there are four stages in the budgeting process:

drafting a budget,

consideration and approval of the budget,

budget execution,

budget execution control.

The algorithm of the budget process is shown in Figure 9.

Figure 9 - Algorithm of the budget process in the municipality 1

First stage. Drafting a budget

The financial policy of the municipality should be based on the Territory Development Concept - a document that defines the goals and objectives of the municipality's policy on the economic and social development of the territory in the long term. In the process of budget planning for the next financial year, the goals and objectives of the policy of the municipality are concretized, and the financial possibilities for their implementation are determined.

When drafting a budget, it is quite difficult to specify long-term goals and objectives for one financial year. In addition, with such an organization of budget planning, there is a high probability that the annually adjusted system of goals and objectives of municipal policy will not allow achieving the goals of the strategic development of the municipality. As a link between annual and long-term planning, the Budget Code of the Russian Federation introduced into the budget process the preparation of a long-term financial plan - a medium-term document that includes the planned amount of income, expenses and municipal debt for three financial years. Like the budget for the next year, this document is based on the Concept for the development of the municipality, it takes into account not only the long-term goals of the development of the municipality, but also guidelines for the medium term.

The process of drafting the budget for the next financial year can be conditionally divided into in three stages.

The first stage includes the development of documents that make it possible to make a preliminary assessment of the income and expenses of the municipality in the next financial year. At the second stage, the budget of the current expenditure commitments is planned. At the third stage, the budget of accepted expenditure commitments is formed.

The first stage of budget planning includes the development of four main documents:

forecast of socio-economic development of the territory,

development plan for the municipal sector of the economy,

main directions of budgetary, tax and debt policy,

Forecast of socio-economic development - a document containing a forecast of the values of indicators characterizing trends in the economy and social sphere of the municipality. This document gives an idea of the conditions under which the local administration will pursue municipal policy in the near future. It should be noted that the Budget Code of the Russian Federation currently establishes the obligatory forecast only for the year for which the draft budget is being developed (Article 173 of the BC). Nevertheless, forecasts should be developed in the municipality both for the next financial year and for the medium term. The need for medium-term forecasting comes from the fact that the forecast is the basis not only for the draft budget, but also for the long-term financial plan (Article 174 of the BC). Currently, amendments to the Budget Code of the Russian Federation are being prepared, which will make the forecasting of the socio-economic development of the territory in the medium term an obligatory element of the budget process.

The forecast of the socio-economic development of municipalities is an integral part of the forecast for the region as a whole, therefore, in many subjects of the Russian Federation, unified lists of predicted indicators have been developed, which are sent to the territories at the very beginning of the budget process, along with the values of the indices for making the forecast (industrial production index, agricultural index). production, deflator indices, etc.). However, these lists often contain an excessive amount of information, which makes them difficult to understand and use in making specific decisions at the level of municipalities. To use the results of the forecast in the development of the policy of the municipality, it is necessary to adapt the list of predicted indicators to the needs of a particular territory.

The minimum set of indicators required for forecasting is the following:

Indicators characterizing the tax base. Budget code for budgets municipalities are fixed on a permanent basis several income sources (income tax, land tax, personal property tax, agricultural tax). The forecast of income from these taxes should be based on an assessment of the size of the tax base, and accordingly, the forecast of socio-economic development should include indicators characterizing the tax base for these taxes. These include, in particular, the wage fund, the difference between the income and expenses of agricultural enterprises that have switched to paying a single agricultural tax, etc. If other sources of income are assigned to local budgets, the list of indicators in this section of the forecast should be expanded.

Demographic indicators (population size, population growth, number of preschool children, working-age population, etc.), the forecast of which makes it possible to estimate the change in the number of consumers of public services.

Indicators characterizing the development of the economic base (number of enterprises by industry, number of employees, profitability / unprofitability of enterprises, etc.).

Indicators characterizing the standard of living of the population and the labor market (average wages, unemployment rate, etc.).

This list does not include indicators of the development of the municipal sector of the economy, which are not so much a characteristic of the external environment in relation to local authorities, but the results of their policies. In practice, indicators characterizing the development of the municipal sector are often included in the forecast.

In pre-existing municipalities, statistics for making a forecast of the socio-economic development of the territory most likely already exist. Local administrations of newly formed municipalities may face quite serious problems in finding the necessary information. There are several possible ways to solve this problem. The first involves obtaining information from business entities and the public. The second is the organization of interaction with state authorities and local self-government bodies that have the necessary information, in particular with the tax inspectorate and state statistics bodies.

Plan for the development of the municipal sector of the economy for the next financial year includes:

list and summary plan of financial and economic activities of unitary enterprises of the municipality,

data on the activities of budgetary institutions, incl. data on the number of employees in budgetary institutions, on the volume of municipal services provided, etc.

In the process of developing a development plan for the municipal sector, it is necessary to:

analyze the feasibility of maintaining / creating municipal unitary enterprises,

estimate budget revenues from the use of municipal property,

estimate budget revenues from the privatization (sale) of municipal property,

assess the financial and economic feasibility of acquiring new property in municipal ownership (if such options are considered),

analyze the possibilities of restructuring the network of budgetary institutions, their economic and financial consequences.

In accordance with the policy directions in this area, a Program for the Privatization (Sale) of Municipal Property and the Acquisition of Property into Municipal Property is being developed.

The main directions of tax, budget and debt policy- a document that until now has not been practically developed in municipalities, but which becomes an integral part of the budget process when municipalities pursue an independent financial policy.

The main directions of the budget policy contain a brief analysis of the structure of expenditures of the budget of the municipality in the current and completed financial years. This document provides a rationale for proposals on priority areas for spending the commitment budget in the coming financial year and for the medium term. The basis for the development of this document is the concept of the development of the municipality (the program of socio-economic development of the municipality), as well as forecasts of the socio-economic development of the territory.

The tax policy involves the establishment of local tax rates (tax on property of individuals and land tax), tax incentives, rent for land and property of the municipality. The basis for making these decisions should be the calculations made by the administration about how much revenue will be received by the budget at a particular tax rate (rent) and how much these revenues will decrease with the introduction of additional (except for federal) benefits. Based on the results of the analysis, the administration prepares draft regulations on setting tax rates and categories of beneficiaries: "Decision on the establishment of land tax", "Decision on the establishment of rental rates for land", "Decision on the establishment of rental rates for municipal property" and "Decision on the establishment of a tax on the property of individuals." These projects, together with their economic justification, are submitted to a meeting of the representative body of the municipality.

When developing directions of tax policy, the question of the expediency of self-taxation of citizens is also considered. At this stage, issues of local importance are identified, for the solution of which self-taxation can be introduced, the potential income from self-taxation and the costs of its administration are assessed. When determining the costs of administration, it must be taken into account that, in accordance with Art. 56 131-FZ, in most of the municipality, only the entire population of the municipality in local referendums can make decisions on the introduction of self-taxation and the directions for spending the collected funds. For example, only in settlements with a population of no more than 100 people can these issues be resolved at citizens' gatherings. Holding a referendum will significantly increase the cost of administering this fee. If a decision is made to introduce self-taxation in the municipality, the “Procedure for Self-Taxation of Citizens” is adopted.

Before starting work on the draft budget, the authorities of the municipality also decide whether to borrow next year or not. Proposals on this issue form the basis of the section “Main Directions of the Debt Policy”. If a decision is made to borrow, the municipality develops a “Procedure for managing municipal debt”. In addition, as an annex to the draft decision on the budget, a program of borrowing is proposed for consideration by the representative body, indicating the volume of borrowing for the planned year, the total volume of borrowing, taking into account previous years, and the cost of repaying debt obligations.

Register of expenditure commitments. The assessment of local budget expenditures for the next financial year is carried out using the data of the register of expenditure obligations, the obligatory maintenance of which is established by Art. 87 of the Budget Code.

During the initial compilation of the register of expenditure obligations, an inventory of the current regulatory legal acts, contracts and agreements providing for the expenditure obligations of the budget in the area of competence of each main manager of budgetary funds is carried out. Thereafter, the register is updated annually. It includes accepted expenditure commitments, excludes those terminated in the current financial year, and adjusts the financial estimates of expenditure commitments, the volume of which has changed.

All of the above documents are developed by subdivisions of the local administration, with the main burden falling on the financial department. A rather difficult question is who should approve all the documents prepared at the preliminary stage of work on the draft budget. According to budget legislation, this refers to the powers of the head of the local administration. However, we must not forget that the decisions made at this stage determine the main directions of the financial and budgetary policy of the municipality for the next financial year and the medium term. Therefore, it is most appropriate to discuss them with a wider range of stakeholders. In particular, the discussion and approval of municipal policy priorities can be carried out by a representative body.

In addition, a Commission for the preparation of a draft budget (hereinafter referred to as the Commission) under the chairmanship of the Head of the municipality may be created in the municipality. The Commission consists of deputies of the representative body, the head of the financial department (or financial official), the head of the local administration (if he is not the head of the municipality), the head of the economic policy department, representatives of the public and heads of enterprises located in the territory. Recipients of budgetary funds participate in the meetings of the Commission without the right to vote.

It is necessary to pay attention to the fact that the creation of the Commission as a participant in the budget process was not envisaged either by the budgetary legislation or the legislation on local self-government. However, her involvement in the budget drafting process has several advantages. Firstly, it allows to involve all interested parties in the budget process, and thereby increase the efficiency of budget planning. Secondly, participation in the work on the formation of the draft budget of deputies significantly reduces and simplifies the procedure for its consideration by a representative body, since most of the disagreements can be removed even at the stage of its development. Thirdly, the involvement of all stakeholders, incl. recipients of budgetary funds, in the process of budgeting, will improve the efficiency of their activities at the stage of budget execution, this will be facilitated by a thorough analysis of the work plans of budgetary institutions and the amount of funding for the implementation of these plans at the stage of preparing budget applications.

Based on the documents described above, the financial department makes a preliminary assessment of revenues, budget expenditures and the amount of municipal debt for the next financial year. In medium-term planning, at this stage, a long-term financial plan is developed. If there is a long-term financial plan approved in the previous year, its parameters are adjusted for two years covered by the previously approved plan, and the main parameters are developed for the third year of the planning period.

Planning also takes into account:

current legislature;

municipal legal acts;

standards for deductions from federal and regional taxes and fees;

expected amounts of financial assistance;

types and amounts of expenses transferred from other levels of the budget system of the Russian Federation;

standards of financial costs for the provision of municipal services.

The estimation of the budget of the municipality at this stage provides only preliminary data on its volume, but they serve as a starting point for the further process of budget planning.

At the second stage of budget planning the budget of operating obligations is formed i.e. expenditure obligations performed in the current year, which are subject to execution in the planning period in the amount determined in accordance with the municipal legal acts, contracts and agreements adopted at the time the draft decision on the budget was submitted to the representative body of power.

At this stage, the recipients of budgetary funds, which are mostly budgetary institutions, prepare budget requests to finance their activities in the next financial year. Budget applications are submitted for consideration to local administration units, which give an expert opinion on them. After that, the applications are submitted to the Commission for the preparation of the draft budget.

Together with budget applications, the Commission considers the work plans of public sector organizations, reports on the implementation of existing targeted programs and proposals to stop or reduce their funding. Based on the results of consideration by the Commission, budget applications are finalized and submitted to the financial department of the municipality. Based on the received budget requests, the finance department forms the budget of the current obligations.

It should be noted that the formation of the budget for existing obligations is possible before the adoption of the law on the regional budget in the first reading, and, accordingly, before the expected amount of financial assistance is brought. Continuation of work on the draft budget in subsidized municipalities seems appropriate only after receiving budget projections for subsidies from the budgets of higher levels of the budget system of the Russian Federation.

At the same time, it should be taken into account that a significant reduction in the volume of financial assistance compared to the current year may cause a revision of the entire draft budget, incl. existing obligations of the municipality.

At the third stage of budget planning a draft budget of assumed obligations is formed, i.е. obligations, the inclusion of which in the long-term financial plan and the draft budget depends on the decisions made in the course of budget planning for the next financial year. The commitments made include an increase in funding for any types of previously implemented expenditures (current, capital), as well as the adoption of new types of expenditures and/or targeted programs.

After receiving information on the amount of financial assistance allocated to the budget of the municipality, the financial department specifies the volume of budget revenues for the next financial year and the characteristics of the long-term financial plan for income. After that, the total budget volume of assumed obligations is estimated as the difference between the projected budget revenues and the planned budget volume of current obligations.

Formation of the budget of assumed obligations is, perhaps, the most difficult stage of work on the draft budget. First, at this stage, decisions are made on current non-programme expenditures, which affect not only the size of the budget of commitments made, but also make it necessary to review the budget of existing commitments and projects of developed targeted programs and applications for capital expenditures. Such decisions include, in particular, decisions to increase the wages of employees in the public sector and to increase tariffs for housing and communal services. Secondly, at this stage, the selection of competing projects of target programs and applications for capital expenditures is carried out.

If there are directions of the budget policy of the municipality approved by the Commission for the next financial year, in which the increase in the above current non-program expenses is recognized as a priority, it is best to make a decision on these expenses at the beginning of work on the budget of assumed obligations. The expediency of this procedure is explained by the fact that the decision to change the tariffs for housing and communal services or the salaries of public sector employees affect both the current budget expenditures and the expenditures provided for under targeted programs and applications for capital expenditures. Accordingly, before being submitted to the Commission, the need for financial resources for their implementation should be clarified taking into account the decisions taken. In addition, decision-making on these types of expenditures leads to the need to clarify previously agreed amounts of funding by industry and budget requests of budgetary institutions.

In some municipalities, it is possible to form a budget for assumed obligations for current non-program expenses simultaneously with the formation of a budget for existing obligations. This allows recipients of budgetary funds to initially formulate their budget requests, taking into account the increase in the cost of wages and utilities. Such an organization of the budget process is possible, first of all, in donor municipalities, whose incomes do not depend on the amount of financial assistance. In addition, a prerequisite for changing the procedure for working on a draft budget is a well-functioning budget forecasting system that allows you to estimate income and expenses with a high degree of accuracy.

Target programs are being developed in priority sectors for the territory. The list of priority sectors should be determined at the stage of developing the main directions of the budget policy. The development of target programs can be carried out by the local administration, public organizations, groups of citizens, etc. If a decision is made to include the costs of the target program in the budget, the sectoral division of the administration or the recipient of budgetary funds is appointed responsible for the implementation of the program.

At the stage of forming the budget of assumed obligations, the issue of creating a reserve fund of the local administration and target budget funds is also decided.

The purpose of the reserve fund of the local administration is to finance unforeseen expenses during the financial year (carrying out emergency and recovery work to eliminate the consequences of natural disasters and other emergencies). If a decision is made in the municipality to create these funds, the representative authority must approve the “Procedure for spending the reserve fund” before the start of the budget execution stage.

Target budget funds are created to finance individual goals and objectives of local self-government. Funds are formed as part of the budget of the municipality, incl. and through self-taxation. The procedure for their formation and spending is established by the "Regulations on the target budget fund", approved by the representative body.

After the Commission determines the list of target programs and investment projects to be financed in the next financial year, the main managers (recipients) of budgetary funds clarify the draft target programs and investment applications, taking into account the Commission's comments and revised budget restrictions. At the same time, they distribute the volume of expenditures for the industry under their jurisdiction according to the articles and sub-articles of the budget classification of the Russian Federation. All prepared documents are submitted to the financial department. Approved applications for capital construction constitute a draft targeted investment program, which is prepared by the local administration.

Based on the agreed budgets of current and assumed obligations, the financial department prepares a draft budget in the context of the articles of the budget classification of the Russian Federation, develops a draft “Decisions on the budget for the next financial year”. Simultaneously with the draft budget, a long-term financial plan is specified, a consolidated financial balance is formed, which includes a forecast of budget revenues and expenditures, enterprises located on the territory of the municipality and local residents. Other documents are also developed and / or specified, which must be submitted for consideration by the representative body simultaneously with the draft decision on the budget.

The package of documents prepared by the financial department is submitted to the local administration for consideration. Based on the results of the consideration, the head of administration either sends the draft budget for revision, or submits a draft decision on the budget, along with all necessary documents and materials, for consideration and approval by the representative body of local self-government.

Second phase. Review and approval of the budget

The main goal of this stage is to agree on the budget with all stakeholders. Despite the fact that the budget is approved by the representative body of the municipality, the entire population of the municipality participates in the budget review process. The requirement to submit the draft budget for public consideration is contained in Art. 28 of Law 131-FZ, according to which the draft decision on the budget must be submitted to a public hearing.

Federal legislation does not define either the number of readings held on the draft budget of the municipality, or the procedure for submitting the draft budget for public hearings.

At the federal and regional levels, each reading on the budget has a specific goal:

At the first reading, the forecast of socio-economic development, the main directions of tax, budget and debt policy and other materials included in the package of documents on the budget are considered. At this reading, the main characteristics of the budget are adopted (the amount of income by groups, subgroups and articles of the classification of budget revenues, the total amount of budget expenditures and municipal debt).

The subject of the second reading is the distribution of budget expenditures by sections of the functional classification of expenditures of the budgets of the Russian Federation within the total volume of budget expenditures approved in the first reading.

At the third reading, the distribution of budget expenditures by subsections of the functional classification of expenditures of the budgets of the Russian Federation and by the main administrators of budget funds (departmental classification of budget expenditures) is approved.

At the fourth reading on the federal budget, the budget as a whole is voted on. At the regional level, they are usually limited to two or three readings.

Discussion of the draft budget with the public at public hearings is possible both before its consideration by the representative body and after the first reading (if the budget is adopted in two readings). At the same time, it is necessary to understand that public hearings on the draft budget held in November-December, when the budget has already been fully formed and the amount of expenditure has been agreed with the main administrators and administrators of budget funds, are more informative in nature and cannot be considered as a real way for the population to participate in the budget process. This is due to the fact that it is quite difficult to make any significant changes to the budget in accordance with the recommendations of public hearings at this stage of the budget process.

The budget process at the stage of consideration and approval of the budget includes the following procedures.

Federal legislation and the Charter of the municipality establish certain requirements for the draft decision on the budget, in particular, the list of budget characteristics that must be contained in the draft decision, and the list of mandatory annexes are legislatively established. When submitting a package of documents on the budget to the representative body, first of all, its compliance with the formal requirements of the current legal acts is established. Based on the results of consideration, the draft decision on the budget of the municipality and the documents attached to it are either sent for revision or submitted by the chairman of the representative body for consideration by the committees and commissions of the representative body.

The draft budget is published in the media and submitted to public hearings. The recommendations of the public hearings are not binding, but should be taken into account when finalizing the budget.

Committees and commissions consider the draft decision on the budget, prepare conclusions on the submitted draft decision, proposals for its adoption or rejection. Recommendations are also being prepared on making changes and additions to the draft budget and the materials and documents submitted with it. All conclusions of committees and commissions on the draft budget are submitted to the relevant commission of the representative body on the budget. This commission summarizes all the opinions received on the draft budget and presents them at a meeting of the representative body. The representative body decides either on the adoption of the draft decision on the budget or on the rejection and sends it for revision.

Throughout the entire stage of consideration and approval of the budget, a conciliation commission operates, the task of which is to resolve disagreements on the budget.

The decision on the budget must come into force before the start of the next financial year. Otherwise, interim budgeting is introduced. In accordance with Art. 190 of the Budget Code, with interim budget management, financing of expenses is carried out monthly in the amount of 1/12 of the actual expenses of the previous year. In this case, only current obligations can be financed; commitments made under the draft budget decision are not eligible for funding. Tariffs, rates, as well as deductions to the budgets of other levels of the public sector for financing delegated powers are established in accordance with the decision on the budget for the previous financial year. Within two weeks after the end of the period of interim administration, the local administration must prepare and submit to the representative body a draft decision on amendments and additions to the budget decision, specifying budget indicators, taking into account the results of budget execution for the period of interim administration.

Such a financing procedure significantly complicates the work of local governments, therefore, both the executive and representative bodies of the municipality strive to reach agreements on the budget before the start of the next financial year.

Third stage. Budget execution

Treasury budget execution. The Russian Federation introduced treasury budget execution (Article 215 BC), the main goals of which were "strengthening financial discipline, pursuing a unified budget policy, strengthening control over the timely receipt, targeted and effective use of budget funds."

The organization of the treasury execution of the budget is based on the principle of unity of the cash desk, which provides for the transfer of all incoming budget revenues, the attraction and repayment of sources of financing the budget deficit and the implementation of all expenses from a single budget account. (Art. 216 BK). The cashiers of all managers and recipients of budgetary funds are the treasury bodies that make cash payments at the expense of budgetary funds on behalf of and on behalf of budgetary institutions.

Budget execution: participants and milestones. The first step after the approval of the decision on the budget for the next financial year is the preparation of a consolidated budget schedule. In accordance with the Budget Code, work on this document should be carried out "from the bottom up" - from the main managers of budgetary funds to the financial authority. In practice, the budget breakdown in municipalities is drawn up directly by the financial department (in the case of a small number of budgetary institutions). The budget list is approved by the head of the administration of the municipality.

After the list is approved, the financial department informs all managers and recipients of budgetary funds about the volume of budgetary funds provided for by the list to finance their expenses, or, in other words, brings notifications of budget allocations. These notices are for informational purposes only and do not entitle you to incur any spending obligations.

After receiving notifications of budget appropriations, budgetary institutions draw up their estimates of income and expenses and submit them for approval to the local administration.

Financing of expenditure obligations of budgetary institutions is carried out within the limits of obligations, i.e. within the limits of the amount of budgetary funds approved by the local administration for spending by this budgetary institution during a certain period. According to the Budget Code, this period cannot exceed three months. Recipients may assume obligations to make expenditures within the approved limits and approved estimates of income and expenses.

Changing budget parameters during execution. In the process of budget execution, it may be necessary to change the parameters of the budget, for example, cutting costs (sequestration) as a result of a decrease in the expected volume of budget revenues. If the reduction does not exceed 10% of expenses, the local administration has the right to make the appropriate decision independently. If the reduction is more than 10% of the costs, the administration submits proposals for amendments and changes to the budget decision for consideration and approval by the representative body.

A similar procedure is established when the actual income received exceeds the expected income and, if necessary, the transfer of funds between budget classification items. When. if the changes are not significant, the decision is made by the local administration. With a significant change in the parameters of the budget, changes and additions are made to the decision on the budget.

The Budget Code establishes a restriction on the change in budget allocations for the main spending units of budgetary funds, according to which this change should not exceed 10% of the approved allocations. For recipients of budgetary funds, the limit is set at 15%.

Fourth stage. Budget execution control

Financial control is carried out throughout the budget process. Preliminary control involves an examination of the draft budget, current control is carried out at the stage of budget execution, subsequent control includes an analysis of the budget execution report. In accordance with the Budget Code, financial control is carried out by both executive and representative bodies of local self-government. The Budget Code also provides for the control of the body executing the budget, GRBS and RBS.

With the method of organizing the budget process described above, the local administration is both the body executing the budget and the GRBS. In this case, its powers include control over the use of budget funds by recipients of these funds, as well as control over compliance with the terms of contracts by recipients of budget loans, budget investments and municipal guarantees.

The representative body reviews interim (operational, monthly, quarterly, semi-annual) and annual reports on budget execution prepared by the financial body. The frequency of submission of reports on budget execution is established by the Regulations on the budget process, but cannot be less than once a quarter. Such a requirement is contained in Art. 241 of the Budget Code. Quarterly and semi-annual reports on budget execution are submitted not only to the representative body, but also to the Federal Treasury and the State Statistics Committee.

Control over the execution of the budget, carried out by a representative body, can be organized in one of the following ways:

creation of a permanent parliamentary committee or commission,

examination of reports and preparation of conclusions by the office of the representative body;

conclusion of contracts with external auditors (specialized audit firms).

In all these cases, the results of the control obtained by the named structures are presented to the representative body at the session. The decision on the results of the audit is taken by the representative body.

Law No. 131-FZ also provides for the creation of a control body of the municipality (Chamber of Control and Accounts, Audit Commission, etc.), which may be entrusted with individual control functions on issues specified by the charter of the municipality. In doing so, the supervisory authority shall:

control over compliance with the established procedure for the preparation and consideration of the draft local budget, a report on its implementation;

control over the execution of the local budget;

control over compliance with the established procedure for managing and disposing of property owned by the municipality.

The control body may make independent decisions on the results of control if these results do not affect issues referred by law to the exclusive competence of the representative body. The decision on the results of control in the latter case is taken by the representative body at the session. According to Law No. 131-FZ, the results of inspections carried out by the control body are subject to publication (promulgation).

The completion of the budget process is the adoption by the representative body of the decision "On approval of the report on the execution of the budget of the municipality." According to the Budget Code, the decision on the annual report on budget execution should be based on the results of an external review by a representative body. If a discrepancy between the budget execution and the approved parameters is revealed, the representative body has the right not to approve the budget execution report and apply to the prosecutor's office to check the circumstances of the discrepancy between the budget execution and the decision on the budget.

Law No. 131-FZ also introduces public control over the execution of the budget. As well as the draft decision on the budget, the report on the implementation of the budget of the municipality is submitted to public hearings (Article 28 of Law 131-FZ). The report on budget execution is submitted for public hearings after the external review of the report and before the approval of the report on budget execution at a meeting of the representative body. At the same time, at public hearings, not only the report on budget execution should be discussed, but also the report of the local administration on the work done and the socially significant results of the financial policy of the municipality in the past financial year, which are primarily evaluated by residents of the municipality.

Review questions:

List the regulations that make up the legal basis for regulating the budgetary process of the municipality.

Determine the international legal and constitutional foundations of the budgetary process of the municipality, based on international acts, the Constitution of the Russian Federation and acts of the Constitutional Court of the Russian Federation.

Determine the composition of tax and non-tax revenues of the municipality.

Constitution of the Russian Federation: adopted by popular vote on December 12, 1993 (as amended on December 30, 2008). Access from the legal reference system "Consultant".

Budget Code of the Russian Federation: adopted by the State Duma on July 17, 1998, as amended on July 31, 1998 No. 145-FZ (as amended on July 18, 2010). Access from the legal reference system "Consultant".

The budget process, carried out at all levels of the budget system, includes the stages of drawing up a draft budget, reviewing and approving it by a legislative (representative) authority, and budget execution.

The draft budget is based on an economic justification and forecast of the processes that will take place in the country (on the territory of a subject or municipality) during the year.

The preparation of a draft budget is preceded by an analysis of the results of economic development over the past year, a forecast of the main socio-economic parameters, and planning of institutional changes in the next budget year. The main parameters of the socio-economic development forecast are: inflation, GDP, investments, exports, imports, household incomes, expenditures and budget revenues.

In the Russian Federation, the Ministry of Economic Development and Trade plays the main role in preparing the socio-economic development forecast (at the federal level). With the participation of other executive authorities, the Ministry of Economic Development develops a multivariate forecast, which is subsequently discussed in the Government of the Russian Federation.

Along with the Ministry of Economic Development and the Ministry of Finance, the Central Bank, as well as independent analytical centers and institutions, make their forecasts.

The forecast of socio-economic development is the basis on which the macroeconomic (in particular, budgetary) policy is built, both in the long term and in the medium and short term.

The state budget is an important tool and financial basis for conducting macroeconomic policy, therefore, the budget should reflect the main directions and goals of short-term macroeconomic policy, which are oriented by public authorities. In turn, the goals and directions of the short-term policy should be a continuation of the medium-term program of socio-economic development and the long-term development strategy. The message of the President of the Russian Federation to the Federal Assembly is devoted (at the federal level) to the short-term goals of macroeconomic policy and the socio-economic forecast. The objectives of the budget policy are specified in the budget message of the President to the Federal Assembly. At the level of subjects of the Russian Federation, the head of the executive branch of the corresponding administrative-territorial unit delivers the budget message.

In accordance with the Budget Code, the budget message of the President must be sent to the Federal Assembly no later than March of the previous budget year, but in practice the budget message is sent to the Federal Assembly in April-June.

In accordance with the budget message, the main directions of the budget and tax policy for the next financial year are being developed.

In addition to the documents listed above, the budget projection is based on the forecast of the consolidated financial balance and a long-term plan for the development of the state or municipal sector for the corresponding year.

The balance of financial resources is a balance of all incomes and expenses of the Russian Federation, subjects of the Russian Federation, municipalities and economic entities in a certain territory. It is compiled on the basis of the reporting balance of financial resources for the previous year in accordance with the forecast of the socio-economic development of the relevant territory.

In addition, at the stage of budget projections, a long-term financial plan is developed, which is not approved by law and has mainly an informative function, i.e. its purpose is to inform legislators who will approve the budget about medium-term trends in economic and social development, the financial implications of laws, programs and reforms being developed.

Justification of the draft budget of the municipality. Preparatory work to justify the draft budget Budget planning and its structure

First stage: gathering information

Second stage: analysis

Third stage: budgeting and justification

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