Banking. State budget: concept, functions and role in the country’s economy (the most important)

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Banking. State budget: concept, functions and role in the country’s economy (the most important)

Lecture notes, cheat sheets

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Topic 71. State budget: concept, functions and role in the country's economy

Financial relations that develop between the state and enterprises, organizations, institutions and the population are called budgetary. The state budget - these are monetary relations arising from the state with y.l. and f.l. regarding the redistribution of national income in connection with the formation and use of the budgetary fund intended for financing the national economy, social and cultural events, the needs of defense and public administration.

The essence of the state budget as an economic category is realized through the distribution and control functions. By using distributive function the budget is the concentration of funds in the hands of the state and their use to meet national needs.

Control function allows you to find out how timely and fully financial resources are at the disposal of the state and whether they are used effectively. The budget is used as an instrument of state regulation of the economy, stimulation of productive and social processes. In the new economic conditions, it is necessary to change the direction of investment of budgetary funds. Are of great importance public investment in progressive sectors of the economy, in providing strategic directions for its development. Through taxes, tax incentives, the volume and direction of budget financing, it is possible to influence various aspects of management, accelerate the renewal of production assets, the fastest introduction of scientific and technological achievements into production, and increase profitability. In the future, the role of the state budget in social processes will increase. This is due to the fact that it is budget funds in conjunction with extra-budgetary funds that are the financial basis for the implementation of social transformations.

State budget expenses. Expenditures of the federal budget of the Russian Federation are classified:

1) by their role in the process of reproduction:

▪ costs associated with financing material production

▪ costs of maintaining the non-production sector;

2) by functional purpose: - the cost of financing the national economy; - for social and cultural events; - defense of the country; - maintenance of the management apparatus; - law enforcement and security; - fundamental research and scientific and technical (NT); - the cost of servicing the public debt. There are expenses current (salary, purchase of goods and services, payments on public debt) and capital (investments in construction, repair, etc.).

Authors: Shevchuk D.A., Shevchuk V.A.

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