Free technical library

Finance. Lecture notes: briefly, the most important

Directory / Lecture notes, cheat sheets

Comments on the article

Topic 1. INTRODUCTION TO THE THEORY OF FINANCE

1.1. The concept of finance and their functions

The concept of "finance" expresses economic relations associated with the provision of sources of financing for the state, municipal and private sectors of the economy, production, circulation and households. The functioning of finance is aimed at the effective development of a socially oriented economy.

The purpose of public financial management is to implement the provisions of financial policy.

The main methodological principles financial management are:

- dependence on the final goal;

- macroeconomic balance of all sectors of the economy;

- compliance with the interests of all members of society;

- use of economic laws;

- taking into account internal and external economic and political conditions based on real opportunities.

Purpose of financial management - ensuring sustainability and financial independence, manifested in macroeconomic balance, budget surplus, reduction of public debt, the strength of the national currency, and ultimately in the growth of the well-being of the population.

Specific methods and forms of financial management are financial planning, forecasting, programming, regulation, control, adoption of adequate financial legislation, substantiation of a system of progressive methods of mobilization and efficient use of financial resources.

For finance in general, such functions as planning, organizing, stimulating are crucial.

The planning function involves the formulation of goals and the choice of ways to achieve them based on the delimitation of powers and jurisdiction between the Russian Federation, the constituent entities of the Russian Federation and local governments, as well as the development of forecasts and business plans for the development of enterprises and organizations, estimates of household income and expenses. The planning function usually includes the distribution of a limited amount of financial resources over time, taking into account development priorities and goals, the redistribution of finances between the budget, enterprises and households. This function is implemented by drawing up budgets, plans and forecasts for the corresponding financial year and perspective, balances of financial resources, establishing the procedure for taxation, etc.

The function of the organization includes the choice by enterprises of the organizational and legal form, the budget structure, the delimitation of powers of legislative and executive authorities in the budget process, the definition of the rights and obligations of the functional units of financial authorities. This function is associated with the process of organizational construction of the internal system of regulation and control of budgetary flows and financial resources of enterprises and households.

The incentive function involves the choice of optimal means and methods to ensure the implementation of the goals. This function allows you to highlight the factors that stimulate the financial activity of the organization. The decisive role is played by the factors that determine the behavior of people in the process of making decisions on tactical and strategic aspects of finance.

In the course of activities related to the regulation of real money circulation, three main functions of finance are implemented: reproduction, distribution and control.

The reproductive function of finance is to ensure a balance of material, labor and money resources at all stages of the circulation of capital in the process of simple and expanded reproduction. Reproduction is carried out within the framework of independent economic entities endowed with property.

The economic isolation of property, expressed in value form, leads to the need to regulate its circulation within the framework of individual organizations, states, etc.

The continuous circulation of funds is a stage in the circulation of capital. The cash cycle begins with the advance of funds. Advance payment takes place when the funds spent on the purchase of raw materials, materials, goods, payment for works and services are returned to the enterprise during one production cycle in the form of proceeds from the sale of goods produced or purchased, work performed, services rendered.

Investing means the use of funds for capital purposes. Investing differs from advance payment in that funds are out of circulation for a long period, and their return to the enterprise occurs in installments due to regular deductions included in costs.

The reproductive function is characterized by indicators of profitability and liquidity of the company's assets. Profitability means that the company receives revenue from the sale of goods, products, works, services, which exceeds the costs incurred. The liquidity of assets (property) means the ability to easily sell them or turn them into cash. Efficient management of financial resources allows you to increase profitability and secure long-term investments. To maintain high profitability and liquidity, the quality of financial resources management plays a decisive role.

The reproductive function stimulates the accumulation of financial resources. The problem of savings is closely related to the state financial and credit policy, since the state creates conditions for regulating cash flows in the economy through various mechanisms, including taxes and the budget. It is relevant for finance all over the world.

An integral part of the reproductive function of finance is the operational function - the current provision of enterprises, organizations, budgets and extra-budgetary funds with funds for continuous financing, i.e. making payments, settlements and fulfilling monetary obligations. The operational function does not have a significant impact on the long-term financial development strategy. The reproductive function puts capital accumulation in the foreground to solve long-term investment problems.

The distribution function is closely related to the reproductive function, since the proceeds from the sale of goods, products, works and services are subject to distribution and redistribution. The distribution of funds takes place in the process of entrepreneurial activity, when they are sent directly to their intended purpose to cover costs and generate income (losses).

Redistribution of funds this is a secondary distribution through centralized funds (budget, off-budget funds, etc.), which ensures the direction of resources to the non-productive sphere. Redistribution is possible due to the withdrawal of part of the profit created by productive labor.

The distributive function lies in the fact that due to the received proceeds from sales and non-operating income (rental payments, fines received, exchange differences, etc.), the fulfillment of monetary obligations to the budget, banks and counterparties is ensured.

The control function of finance is to control the ruble over real money turnover and the formation of cash funds. It allows, by comparing and analyzing costs and results, to identify both positive and negative aspects of the activities of economic entities and make appropriate decisions on this basis. Ruble control has two forms:

1) control over changes in financial indicators, the status of payments and settlements;

2) control over the implementation of the financing strategy. In the first case, we are talking about a system of sanctions and incentives, i.e., measures of a compulsory or, conversely, stimulating nature; in the second, we are talking about the implementation of long-term financial policy (the basis of which is the forecast of changes in the procedure and conditions of financing and the consequences of such changes) in order to optimal management of the financial system.

The control function of finance has undergone significant changes caused by the transformation of forms of ownership, privatization and commercialization, the use of new organizational and legal forms established by the Civil Code of the Russian Federation, institutional transformations (legislative and regulatory legal acts, forms and methods of state regulation and control), the formation of capital markets, labor, goods and services, price liberalization, foreign economic activity, foreign exchange relations, etc.

The control function of finance always has a specific form of manifestation: it can be focused on the enterprise as a single object of management, on its structural divisions, on the budget of a particular level, on any extra-budgetary fund and on an individual.

The control function of finance is connected with the reproductive and distribution functions. It can play an active role in making this or that decision, or passively reflect the results of the distribution of funds and reproductive processes.

The control function is manifested in the following: the degree of compliance of income received, the structure of cash funds with the planned tasks for expanding production volumes is revealed; the discrepancy between the income and expenses of the enterprise, budget, off-budget fund, household is corrected.

1.2. Financial system

The concept of "financial system" is a development of the more general concept of "finance". Finance expresses economic social relations. However, in each level of finance these relationships manifest themselves differently and have their own specifics. Each link of finance influences the reproduction process in a certain way and has its own functions inherent only to it. Thus, enterprise finance serves material production. With their participation, GDP is created, distributed within enterprises and sectors of the economy. Through the state budget, resources are mobilized into the main centralized fund of the state and funds are redistributed between economic sectors, economic regions, and individual social groups of the population. Off-budget special funds have a strictly designated purpose. Insurance funds are intended to compensate for damage caused by natural disasters to enterprises and the population, and for personal insurance - payments to the insured person or his family in the event of an insured event.

The essence of the financial system is determined by the nature of distribution and redistribution relations regarding the movement of the value of financial resources, on the one hand, and the nature of state power, on the other hand, the maintenance of which requires the mandatory collection of financial resources using tax and non-tax methods of accumulation to finance the costs associated with the fulfillment by the state authorities of obligations to society. The financial system of the state is a reflection of the forms and methods of the specific use of finance in the economy and, according to the model of the economy involved, is largely determined by it.

The financial systems of some states may differ in their structure, but they all have a common feature: various funds of financial resources, which differ in the methods of mobilization and their use, but are closely interconnected and have a direct and reverse effect on the economic and social processes in the state, as well as the formation and use of funds of financial resources in the context of individual parts of the financial system of the state. It can be argued that each link of the financial system is its independent element, but this independence is relative. Financial system - this is a set of various types of funds of financial resources concentrated at the disposal of the state, the non-financial sector of the economy (economic entities), individual financial institutions and the population (households) to perform the functions assigned to them, as well as to meet economic and social needs.

An analysis of the patterns of development of finance in different conditions of social reproduction indicates the presence of common features in their content, which is due to the preservation of objective causes and conditions for the functioning of finance. Among these conditions, as noted above, two are distinguished: the development of commodity-money relations and the existence of the state as the subject of these relations. Unlike such value categories as, for example, money, credit, wage fund, etc., finance is organically linked with the functioning of the state. However, the presence of common features in all financial relations does not exclude certain differences between them.

The formation of a developed system of funds is a property of the modern economy. Funds in the Russian and global economy are a multivariate phenomenon. There are state and non-state funds, budgetary and extra-budgetary, national and international, federal, territorial and local, sectoral, intersectoral and special, charitable, mutual funds, investment funds, etc. A number of funds are part of the federal budget; their sizes, sources of filling and directions of expenditure are approved together with the adoption of the budget itself - these are target budget funds, inter-budgetary regulation funds, etc. Although these funds are part of the budget, their activities are subject to special rules. Along with budgetary funds, numerous extra-budgetary funds exist and are developing quite rapidly - state social insurance, non-state insurance, sectoral, territorial, etc. Despite the diversity of such funds, they have common features as a special form of public sector finance.

The financial system is based on three fundamental elements:

1) functional purpose, manifested in the fact that each link of the system performs its own tasks. For example, the state budget expresses the distribution relations between the state, enterprises, and the population, determined by the formation and use of a national fund of financial resources. Property and personal insurance is one of the methods of insurance protection in the event of insufficient opportunities to create reserve funds for citizens for the purpose of self-insurance against unemployment, old age, and disability. Enterprise finance expresses relations regarding the creation and use of monetary funds intended to meet the diverse needs of the primary links of social production, fulfillment of obligations to the state budget and commercial banks;

2) territoriality, which is manifested in the fact that each region, republic has an appropriate apparatus of financial and insurance bodies;

3) the unity of the financial system, which is predetermined by a single economic and political foundation of the state, which determines a single financial policy pursued by the state through central financial bodies with common goals. Management of all links takes place on the basis of uniform basic legislative and regulatory acts.

Organizational structure of the financial system of the state is a set of financial bodies and institutions that characterizes the financial management system. The general management of financial activities is carried out by state authorities and administrations. The structure of bodies and institutes of a financial system is presented on fig. 1.1.

Finance as an integral economic category with common properties has its own composition, interconnected links and characteristic features. Each link of the financial system in a certain way affects the process of reproduction, its various stages and phases. The finances of the state, which are centralized funds of funds at its disposal (federal budget, regional budgets, budgets of municipalities, stabilization fund) play an important role in the production, technical and social development of the country. The state influences monetary policy, inflation rate, the main proportions of social production, the stage of distribution of financial resources between sectors of the economy, territories, industries, as well as the parameters of economic, investment and social processes in the country. At the same time, social insurance, carried out through extra-budgetary funds, ensures the protection of the personal interests of citizens in the event of disability, old age, and temporary disability. State credit affects the insurance system, since the state can be both a borrower and a creditor of insurance organizations. The state can also act as a guarantor of the financial stability of insurance companies.

The finances of enterprises are directly involved in the process of reproduction through the formation of primary income and savings. The process of expanded reproduction at many enterprises is carried out not only at their own expense, but also through the use of loans from banks, insurance companies and the attraction of funds in the securities market. At the same time, insurance of transport, property, financial and industrial risks of commercial organizations, public organizations and funds ensures the continuity and stability of economic processes, as well as their financial stability.

Topic 2. BUDGET AS THE MAIN LINK OF THE STATE SYSTEM

2.1. Essence of the budget

As an economic category budget represents a set of economic (monetary) relations arising in the process of formation, planned distribution and use of the state centralized fund of funds. Budgetary relations arise between the state and its subjects (legal entities and individuals) in the formation of a centralized fund with the help of taxes, fees, duties, as well as when using a centralized budgetary fund; through economic relations, a significant part of the savings of enterprises, organizations and part of the income of the population is annually mobilized to the state budget. Budget funds are directed to financial support for the tasks and functions of the state, social and cultural events.

The concept of the state budget also has a legal (legislative) aspect. From this point of view, it is considered as the financial plan of the state.

as a legal act state budget the following definition is given: this is the main financial plan for the formation, distribution and use of the centralized monetary fund of the state or administrative-territorial entity, approved by the relevant legislative (representative) body of state power and fixing the legal rights and obligations of participants in budgetary relations.[1]

The core of financial planning is the consolidated financial plan of the state, developed simultaneously with the plan for the social development of the system as its integral part. The financial plan is designed to reflect the consistency of material and monetary proportions of social production. The development of the country's consolidated financial balance gives the state budget a new status - the core balance of the formation and expenditure of the centralized monetary fund of the state in connection with the movement of financial funds and monetary resources.

The state budget is the main financial plan of the country, the central link of the financial system. Its main purpose is, with the help of financial resources, to create conditions for the effective development of the economy, solving national problems, and strengthening defense capabilities.

When it comes to the state budget as a financial plan, they mean the conscious activity of people in developing, approving and executing the budget.

The state budget as an economic category expresses a system of economic relations between the state, on the one hand, and enterprises, organizations and the population, on the other, regarding the distribution and redistribution of the total social product and national income and the formation of a centralized state fund of funds.

The concept of the state budget in its current interpretation not only expresses certain monetary relations, but also has a corresponding material embodiment - the state monetary fund.

The state budget is formed both at the stage of the primary distribution of national income and during its redistribution. In the process of primary distribution of national income, the state receives at its disposal a part of net income in the form of taxes (value added tax, excises, etc.). As a result of the redistribution, a part of the profits of enterprises and economic organizations of various forms of ownership enters the budget.

The essence of the budget, like any other economic category, is manifested in its functions. The state budget, like the entire financial system, has two functions - distribution (redistribution) and control.[2] For example, G. B. Polyak identifies the following functions of the budget:[3]

1) redistribution of national income;

2) state regulation and stimulation of the economy;

3) financial support of the social sphere and implementation of the social policy of the state;

4) control over the formation and use of centralized funds of funds.

2.2. Development of the budget system in the Russian Federation

The reform of municipal finance in Russia, being an integral part of the reform of the Russian economy as a whole, has more than 15 years of history. For municipalities, this reform means colossal changes in the conditions of formation of revenues and expenditures of local budgets, the development of new budget procedures, the formation in municipalities of the ability to "respond to the challenges" of federal and regional policy. After 15 years, a conditional periodization of the reforms can be carried out.[4]

The first stage should be considered the period 1990-1993. - this is the period of formation of the modern Russian state, culminating in the adoption of the Constitution of the Russian Federation. With regard to financial problems in Art. 132 of the Constitution of the Russian Federation says that local governments independently manage municipal property, form, approve and execute the local budget, establish local taxes and fees, etc. The same article states that local governments can be endowed by law with separate state powers with the transfer material and financial resources necessary for their implementation (unfortunately, the further history of municipal finance in Russia is replete with examples when state powers were transferred to the municipal level without the necessary funds).

At this time, the budget structure of Russia combined the features of a unitary and confederal state. On the one hand, the constituent entities of the Russian Federation were almost completely dependent on deductions from federal taxes and financial assistance from the federal budget. Taxes were collected only by the federal department - the State Tax Service of the Russian Federation, and the budgets of regional and local administrations were financed from the federal budget. On the other hand, the constituent entities of the Russian Federation, managing half of the country's consolidated budget, tried to control federal spending on their territory. Therefore, the system of interbudgetary relations emerging under those conditions can be called “fiscal feudalism” rather than “fiscal federalism.”[5]

The adoption of the Constitution of the Russian Federation marked the end of the first stage of radical economic reforms, including the reform of municipal financing. The existence of a local level of self-government, which is not part of the system of state authorities, was enshrined in the highest legislative act of the country.

The principle of independence of local budgets was laid down already in the Law of the Russian Federation of April 15, 1993 No. 4807-1 "On the basics of budgetary rights and rights to form and use extra-budgetary funds of representative and executive bodies of state power of the republics within the Russian Federation, the autonomous region, autonomous districts , territories, regions, cities of Moscow and St. Petersburg, local self-government bodies", which entered into force before the adoption of the Constitution of the Russian Federation.

The delimitation of the levels of the budgetary system in accordance with the principles of a federal structure should be based on the concept of fiscal autonomy of the budgets of different levels. With a high degree of vertical imbalance of these levels, the budget system as a whole becomes unstable and works inefficiently.

The second stage of municipal financing reform can be considered 1993-1994. In 1994, the federal center introduced a unified system for the regions of “splitting” federal taxes to replace the previously existing differentiated rates (Federal Law of December 23, 2003 No. 186-FZ “On the Federal Budget for 2004”). These decisions significantly changed the income generation system of the constituent entities of the Russian Federation and made it more predictable. Accordingly, the system of generating local budget revenues has become more predictable. Tax reforms in Russia and Kazakhstan started simultaneously - in the mid-1990s. Moreover, reforms in these countries were started by one team - a large group of tax specialists from all over the world worked in Almaty at that time, advising the authors of both the Kazakh and Russian Tax Codes. In 1994, Kazakh and Russian groups created model Tax Codes based on Western standards. Both documents represented a sample of tax legislation as seen by the best tax specialists in the world. Despite this, neither one nor the other was discussed in parliaments. In 1995, the parliament of Kazakhstan dissolved itself and, upon leaving, decided to give the president the right to issue decrees that have the force of law. Until a new parliament was elected, 147 basic laws were introduced in Kazakhstan by presidential decrees, including the Civil, Tax and Land Codes.[6] The tax code of Kazakhstan was largely imperfect and provided many individual benefits. As a result, changes were made to the Code every year, and there was no stability in tax legislation in the country. However, then the picture changed dramatically: having accumulated experience, Kazakh tax officials understood what a normal, effective Tax Code that actually works in the conditions of the economy of Kazakhstan should be. And, importantly, we learned to use taxes not only to fill the budget. In 2000, work began in Kazakhstan on a new Tax Code, which, unlike the previous version, not only solved fiscal problems, but also made it possible to widely use the regulatory and incentive functions of taxes.

Part one of the Tax Code of the Russian Federation (TC RF) was adopted in 1998, part two - in 2002; Before the adoption of these documents, the main regulatory act regulating tax relations in the country was the Law of the Russian Federation of December 27, 1991 No. 2118-I “On the fundamentals of the tax system in the Russian Federation.” At this time, agreements were signed with Tatarstan, Bashkorstan, and Yakutia, which legalized the special budget status of these republics, according to which taxes began to be transferred from their territories to the federal budget in a special way.

The third stage of reforms - from 1995 to 1998. During this period, the Law of the Russian Federation of July 6, 1991 No. 1550-I "On Local Self-Government in the Russian Federation" and the Federal Law of September 25, 1997 No. 126-FZ "On financial foundations of local self-government in the Russian Federation". The latter assigned to the local level the share of the collection of the most important federal taxes and thus introduced greater certainty and predictability into the process of formation of municipal revenues. In 1996, more than 53% of all revenues went to the budget of the constituent entities of the Russian Federation (Table 2.1).

The only federal tax, the proceeds of which were strictly assigned to the levels of the budget system, were payments for the use of subsoil and natural resources. The remaining federal taxes were distributed between the federal budget and the budgets of the constituent entities of the Russian Federation by the annual law on the federal budget.

In 1994-1997 subjects of the Russian Federation received 25% VAT, 90-100% personal income tax, 50% excise taxes on alcoholic products, 100% other excise taxes (except for excise taxes on mineral raw materials, gasoline, cars, imported goods). In addition, starting from 1994, the constituent entities of the Russian Federation had the right, in addition to the federal 13% rate, to set their own corporate profit tax rate (most regions introduced a maximum rate of 22%).

At that time, three models of reforming the tax system of the Russian Federation were considered:

1) the "American" approach, when for some taxes each level of government has its own revenue sources and when for indirect taxes different levels of government introduce their own tax rates of the same taxable base;

2) the "German" approach, when all levels of government share the proceeds from the main general revenues;

3) "Canadian" approach, when different levels of government introduce their own tax rates of the same taxable base.

At the same time, the federal center adopted various social laws and transferred the financing of related expenses to municipalities. The most financially difficult for municipalities was the Federal Law of January 12, 1995 No. 5-FZ “On Veterans”. Article 132 of the Constitution of the Russian Federation was applied by the federal center in terms of the rights to vest local governments with state powers, but not in terms of the obligation to transfer to municipalities the necessary financial resources for this. There were not enough funds from local budgets to finance “federal mandates”; they were not implemented in full; a situation of uncertainty, unpredictability, and financial inability on the part of local governments to bear the expenses prescribed by federal laws arose. In 1996, the federal budget financed 100% only defense and international activities, 72,8% - law enforcement activities (Table 2.2).

The fourth stage of reforms - from 1999 to 2002, when the Budget and Tax Codes of the Russian Federation began to operate. These laws were of great importance for reforming budgetary relations and tax policy, for the economy as a whole, but the concept of creating a relatively independent financial system at the local level was not laid down in them. The federal center began to seriously engage in the financial concept for municipalities only in the 2001st century. (The program for the development of budgetary federalism, approved by the Government of the Russian Federation in 21; the work of the Commission under the President of the Russian Federation formed by Decree of the President of the Russian Federation of June 2001, 741 No. Russian Federation and local governments under the leadership of the Deputy Head of the Administration of the President of the Russian Federation D.N. Kozak). This period of municipal finance reform is characterized by a trend towards centralization of tax revenues and expenditure powers at the federal and regional levels. During this period, the municipalities' own revenues decreased, and the dependence of local budgets on regional transfers increased. The federal authorities continued to make decisions that drastically changed the spending obligations of municipalities. An example is the change in wage rates for public sector employees since December 2001. As before, such decisions did not contribute to improving the efficiency of municipal finance management.

Until the early 2000s. The differentiation of responsibilities and possibilities of budgets of different levels in Russia was hampered by a multi-level, complexly subordinate system of organizing local self-government, which differs by region and leads to insoluble problems. So, in various subjects of the Russian Federation, there were from one to three levels of local self-government, or there is no local self-government at all. Sometimes individual municipalities are endowed with state powers and are actually territorial subdivisions of state authorities of the subjects of the Russian Federation, in other regions, on the contrary, a multi-level, complex structure of independent authorities is formed.

As a prerequisite for reforming municipal finances, one can consider the Program for the Development of Budgetary Federalism in the Russian Federation for the Period up to 15 approved by Decree of the Government of the Russian Federation of August 2001, 584 No. 2005.

It defines the principles for dividing spending powers between budgets of different levels and specific directions for changes in the distribution of spending powers for the coming years (see Section 2 of the Program). The principles of delimitation of taxes between the levels of the budgetary system have also been established. Let us specifically note the principle according to which the own revenues of the budgets of each level should become the main resource for the effective implementation of the spending powers assigned to them, including the equalization of the budgetary provision of regions and municipalities. The federal authorities must take into account the provisions of the Program for the Development of Budgetary Federalism when preparing draft federal laws and other regulatory legal acts. To some extent, real reforms of the municipal finance system depend on how and to what extent the provisions of this generally progressive program are taken into account in the preparation of laws.

Fifth stage - from 2003 to the present. In accordance with the Federal Law of October 6, 2003 No. 131-FZ "On the General Principles of Organizing Local Self-Government", local budgets are divided into budgets of two levels:

1) budgets of municipal districts and city districts;

2) budgets of rural and urban settlements.

At the present stage, the state budget system of Russia should be radically restructured and include four levels: federal, regional, the level of municipal districts and urban districts, as well as rural and urban settlements.

All these budgets function autonomously. Revenues and expenditures of local budgets are not included in the budgets of the territories, and the latter are not included in the federal and regional budgets.

If in the unitary states of local budgets revenues and expenses are not included in the state budget and play a very insignificant role, then in federal states they are not included in the budgets of the constituent entities of the Russian Federation and are of great importance for the development of the whole country through the development of local territories and communities.

This structure of the budget system of the Russian Federation is close to the structure of the budget systems of Western countries, in which the share of local budgets as the most important link in all local finances is increasing. Local governments are underfunded as their spending responsibilities have expanded and the challenge is to increase their own revenue base. Currently, the structure of the budget system of the Russian Federation, as well as the proportions of resources distributed between budgets of different levels, are as close as possible to similar indicators of Western federal states. Thus, if back in 1992 70% of all accumulated resources went to the federal budget and only 30% to territorial and local budgets, then already in 1995 this ratio was 49 and 51%, respectively. Since 2001, a reverse process has been observed. Proceeds from the two main income taxes, VAT and some types of excise taxes, were 100% subject to credit to the federal budget. These revenues amounted to about 600 billion rubles, or 53% of all tax revenues to the budget. The return to the policy of maximum centralization of financial resources, while simultaneously maintaining the principle of independence and provision of lower budgets with their own revenue sources, was explained, rather, by the desire of the federal government to streamline and unify the principles of the movement of financial flows in the budget system. The actions of the federal government in this direction were undoubtedly justified from the point of view of short-term tasks to regulate the revenue base of lower budgets. However, in the future, the key to implementing the principle of independence of each budget level should be the maximum delegation of tax powers to lower budgets.

As A. M. Lavrov notes, independent economic agents were created in the economy; just as politicians have their own figures, so independent responsible administrators of budgetary funds should appear in the public sector.[7]

The goal of optimal decentralization in the Russian Federation is the creation of authorized and responsible administrators of budgetary funds, which can be authorities, ministries, institutions.

External conditions affecting decentralization include:

1) subsidiarity - delimitation of powers "from the bottom up";

2) formalization - the replacement of traditions by the implemented rules;

3) hard budget restrictions - "earned" is not withdrawn, "unearned" is not distributed;

4) competitive environment - mobility of resources, suppression of unfair competition;

5) risk management - stabilization funds and insurance. It is necessary to delimit the powers and responsibilities between the federal, regional and local budgets, as well as to divide the management of public finances at three levels:

1) macro level: Russian Federation - subjects of the Russian Federation - municipalities (reform of interbudgetary relations);

2) meso-level: government - financial authorities - ministries (reform of the budget process);

3) micro level: ministries - services - institutions (restructuring of the budgetary network).

The macro level is characterized by vertical demarcation. Without this, no reforms in the public sector would be possible.

After such a division has occurred as part of the reform of inter-budgetary relations, one can move on to the meso-level: the distribution of powers between the government, financial and economic bodies - integral administrators of budgetary funds - and ministries responsible for the provision of specific types of services. Only after this does it become possible to move to the micro level - the most necessary, most important stage of decentralization. The emergence of independent agents for the provision of budget services can be compared in importance with privatization in the economic sphere. Denationalization of the provision of public services must also be done at the micro level. Ministries and other institutions should share resources for which they should be held accountable.

At the same time, it is necessary to create a competitive environment so that the resources of the budget system are relatively easy to move between administrators of budget funds. Part of these resources should depend on the performance of each administrator, who is obliged to fight for these funds. Independent administrators of budgetary funds, operating in a quasi-market environment, will stimulate the entire system to develop in the right direction.

According to the fundamentals of economic science, an effective model of budgetary federalism that ensures sustainable economic growth must meet the following requirements.

1. The federal center must have effective powers to ensure a single legal space.

2. Powers between different levels of government and local governments should be clearly delineated.

3. Regional authorities must have, within their territorial powers, a sufficient degree of autonomy to conduct an independent financial and economic policy.

4. Regional authorities must constantly be in conditions of severe budgetary constraints, i.e., directly dependent not on the higher budget, but on the results of their own financial and economic policy.

5. All named conditions must be stable and non-negotiable.

Research conducted in Russia by the Organization for Economic Cooperation and Development showed that the Russian system does not meet any of these criteria. The result of the generalization of work experience and research in this area was the adoption of the Program for the Development of Budgetary Federalism in the Russian Federation for the period until 2005, which was mentioned above. More than 50% of all taxes in the Russian Federation are collected in only 10 regions with 22% of the country's population; 20% of total tax revenues go to the Moscow budget, 42% of the country’s tax revenues go to the budgets of the “top five” (including Moscow), where only 14% of the country’s population lives, and 56% of all country revenues go to the “top ten” with 27% of the population. . The 50 least affluent regions with 28% of the population account for only 13% of all income.[8]

Specialists of the Center for Fiscal Policy of Russia came to the conclusion that in order to bring budgetary security to the same level for all subjects, at least 85% of all state tax revenues should be concentrated in the federal budget, and only then approximately half of them should be redistributed in the form of financial assistance. With an increase in federal budget revenues from 50 to 60% of the total revenues of the country's consolidated budget and an increase in the volume of assistance to the regions, the ratio of the maximum budgetary provision to the national average level decreases from 4,3 to 3,5 times, the minimum increases from 0,58 to 0,81 .21,7 times, and the variation in budgetary provision decreases from 10,0 to 70 times. A similar increase in centralization to 2,6% changes these indicators to 0,90, 3,8 and 9 times, respectively. Thus, the difficulty of combining the centralization of financial resources with the need to expand the tax powers of the regional level of government and local governments is obvious.[XNUMX]

At the level of the constituent entities of the Russian Federation, there are three regional taxes (on the property of organizations, transport, on the gambling business), in addition, the federal income tax within the rate regulated by the constituent entities of the Russian Federation, equal to 4%, is actually regional.

At the level of settlements, there are also two significant local taxes - land and property of individuals.

The main problems have developed at the level of municipal districts. The proposal of the Government of the Russian Federation to transfer the transport tax to this level was rejected. The Federal Assembly of the Russian Federation at the same time abolished the local tax on advertising and did not introduce a sales tax. As a result, there is formally no local tax at the municipal district level. Some tax autonomy will be provided to this level of government by the authority to regulate a single tax on imputed income, but formally this is still not a local tax, but a special tax regime.

In addition, the tax autonomy of local governments will be partially supported by the self-taxation regime: the introduction of one-time fees from citizens for specific purposes through a referendum. Active use of this new tool is the best way to prove, not in words, but in deeds, that municipalities really need greater tax autonomy and that they can effectively manage it.

The experience of the Stavropol Territory shows that for the successful implementation of the Federal Law "On the General Principles of Organization of Local Self-Government in the Russian Federation" it is necessary to solve some important problems.[10]

For example, local governments and financial authorities have encountered difficulties in exchanging information with the tax service. The Law mentioned above establishes that the tax authorities are obliged to keep records of the accrual and payment of taxes and fees directly for each municipality. Enlargement of tax inspections makes this task practically impossible, and the lack of information on the taxable base by the beginning of the preparation by the municipality of any level of draft budgets for 2008 practically disrupts this process, since it does not make it possible to form their revenue side.

Given the above, and also to improve the quality and reliability of planning the revenue side of regional and local budgets, it is advisable to entrust the Federal Tax Service with the development of tax reporting forms that meet the interests of both the tax service as a whole and regional authorities and local governments.

2.3. Intergovernmental transfers

The need for intergovernmental transfers. Most of the main types of taxes are collected at the federal level, and expenditures on education, social policy, and healthcare are carried out at the regional and local levels, so a vertical imbalance arises (a shortage of resources at the lower levels before the distribution of transfers). Most countries are also characterized by horizontal imbalance (regional asymmetry associated with uneven economic development). In modern Russia, this asymmetry is very pronounced, which leads to large scale redistribution of resources. Thus, the gap between the most affluent and least affluent regions, determined by the indicator of tax revenues of subnational budgets per person, in Russia is 75,6 times, while in Germany - 8,1, USA - 8,5, Canada - 1,6 times. At the same time, the volume of financial assistance from federal budgets to subnationals is: in Russia - 2,5, Germany - 1,3, USA - 2,4, Canada - 3,2%.[11] For example, in 2004, the budgetary provision of the Yamalo-Nenets District exceeded the budgetary provision of the Perm region by almost 10 times, and the Chelyabinsk region by 12 times.

Regional asymmetry is the reason for significant differences in the interests and priorities of individual subjects of interbudgetary relations.

Alignment methods. There are two main methods: horizontal and vertical alignment, depending on whether funds are transferred by territorial entities of the same or different levels. These two basic models are not mutually exclusive and can be used simultaneously.

Horizontal alignment is used in Germany between states and municipalities of the same state, as well as in Denmark and Sweden. This method consists in distributing the surplus resources of the wealthiest territorial entities among the less wealthy, without resorting to the funds of the central government.

From the point of view of the central government, this model has a double advantage: first, it costs him nothing; secondly, it does not allow local authorities to agree among themselves to demand a more complete equalization. However, it also has disadvantages, and before using it, it is necessary to seriously assess the political situation.

This model provokes conflicts between territorial entities, so the richest and most influential local governments object to it. In Germany, the horizontal leveling method was attacked due to the immoderate financial needs of the new East German states, so certain restrictions had to be introduced. In Sweden, in 1995, the Supreme Court declared this model unconstitutional, qualifying it as a tax paid by one local authority to another. In this regard, it was necessary to change the text of the law and make a clarification that all payments go first to the central government, which distributes them.

In this regard, the Swedish Supreme Court clarified. First, central governments want to retain control over local governments, which they exercise through grants. Second, central governments do not risk placing significant tax leverage in the hands of local governments for fear of undesirable tax and spending disruptions that would otherwise impose other constraints on local budgets.

When using this model, gratuitous transfers should be carried out neutrally so as not to provoke distortions in the alignment. It can be a fixed amount per capita (as in Sweden) or a percentage of the tax base (as in Denmark). Both forms of transfers can be organized in such a way as to be neutral and serve only to level the gaps.

Using the vertical leveling method, central governments allocate subsidies to all local governments (or only those most in need) so that their revenues reach a certain level.

It is much easier to reach consensus using this model, which is why most countries use it. However, one has to deal with a kind of "tax illusion", since everyone benefits from this system and no one pays. Such a model is less likely to cause conflicts between regions; it can be said that, when necessary, it contributes to the building of the "nation".

The grant method is based on the resources of the central government and may not extend to the most prosperous municipalities. A recent Swedish government report notes that wealthy municipalities may be able to evade central government control in this way.[12] It is for this reason that the horizontal alignment model is preferred in Sweden.

The method of subsidies is especially expensive for the government if it decides to bring municipalities to the maximum level of tax potential and help all those whose needs exceed the minimum level. For this reason, this method is imperfect, leaving the most financially strong municipalities outside the system.

Mixed leveling systems. The main policy problems raised by the two equalization models are not as different as is sometimes assumed. On the one hand, from the point of view of public finances in general, horizontal alignment turns out to be no less expensive than vertical alignment; on the other hand, vertical alignment can also cause tension, and not only between the central government and local authorities, but also between municipal authorities themselves, since not all of them receive (or cannot receive) equal assistance.

Hesitation in the need to further develop decentralization in many countries is probably also due to political obstacles.[13]

In this context, neither of the methods presented can completely solve the problems that arise, so the possibility of combining them in a system funded partly by local authorities and partly by the state should not be neglected.

Such a system is used in Switzerland, in the canton of Bern. The Financial Equalization Act, which came into force in early 1992 and has been active since 1995, provides for the creation of an Equalization Fund.

Half of the fund's funds are provided by compensation contributions from communes with a tax potential index above 100;[14] the total amount they contribute annually is currently 30 million Swiss francs. The cantonal authorities contribute the same amount of annual contributions to the fund.

Fund resources are used to provide additional assistance to financially weak communes: only those communes with a tax potential index of less than 70 and where the tax burden per capita is above the average level are eligible for additional assistance.

Budgetary transfers are resorted to in different cases:

1) if the budget system is vertically unbalanced, i.e., expenditures are more strongly decentralized than revenues (tax transfers);

2) to balance the possibilities of regions in providing residents with a standard set of budgetary services (equalization transfers);

3) to equalize the provision of residents of different regions with services, to finance federal mandates (targeted, including itemized, transfers, subventions);

4) to create a material interest in the regions (municipalities) in pursuing a policy that meets the national interests ("mirror" transfers);

5) to compensate lower budgets for increased expenses or loss of income in cases where such losses were caused by a decision of a higher authority (compensation), as well as in other cases.

Before considering each of these reasons, it is necessary to clarify the terminology relating to transfers, since the terms used in Russian budget practice differ somewhat from those commonly used in Western practice and literature.

In this regard, the mechanism of interbudgetary transfers plays an important role. T. Ter-Minassian distinguishes two main categories of intergovernmental transfers: the distribution of regulatory taxes and grants.[15]

Regulatory taxes. The distribution of tax revenues can occur on the basis of the distribution of tax rates at each budget level separately (USA) or redistribution from the total amount received at the federal level. However, the basic principles of tax division in the governmental hierarchy do not mean that a tax assigned to one tier cannot be distributed simultaneously to the benefit of some other tier. If we follow this logic, another possibility for intergovernmental taxation arises - the division of taxes between levels of government. Currently, there is an ongoing debate about which principle - prescription or division of taxes - is more consistent with the federal organization of the state.

The system of prescribing taxes means a clear delineation of property rights between levels of government, primarily the rights to legislation, revenue and management. Ensuring maximum independence of levels of government, it consistently implements the federal principle. Clearly assigning tax bases to tiers of government allows voters to know exactly where each tax ruble is being spent and on what. Thus, property taxes collected by local governments allow residents to compare costs (taxes) and benefits (public goods and services). Similarly, regional and central taxes allow residents to assess the cost-benefit ratio at the regional and national levels. To achieve this result, it is necessary to clearly assign taxes to the levels of government, that is, abandon the principle of dividing taxes in favor of the principle of their prescription.

The advantages of this system are also its convenience for the execution of government powers, the ability to flexibly and quickly adjust revenues to emerging regional spending needs, as well as more efficient use of local information.

However, the tax system also has its downsides. Firstly, due to the lack of proper coordination and institutions for reconciling the interests of different levels of the fiscal system, it becomes possible to simultaneously tax the same object (or repeatedly fall into different bases), so that the benefits received by the public sector will be more than offset by losses in efficiency of the private sector of the economy. Ultimately, the principle of optimizing the tax system is violated.

Secondly, the emergence of significant regional differences in the level and objects of taxation can cause unpredictable interregional competition, which, in turn, undermines the revenue base of regional budgets and makes fiscal policy less predictable; the implementation of a unified stabilization policy in the country is becoming more complicated.

The system of tax sharing assumes a partial differentiation of property rights, when the rights to legislative activity and management remain at the disposal of the federal center, and vertically there is only a division of the right to distribute income. This system means the use of the same tax by different levels of government and has its positive aspects: it allows better coordination of the activities of fiscal authorities, makes the tax system universal and increases its transparency for taxpayers, which reduces uncertainty and risk, and therefore has a beneficial effect on the adoption of long-term decisions at the micro level; greatly simplifies the administration of taxation, reduces the costs of the tax system, mainly due to economies of scale achieved both in tax administration and tax collection; makes it possible not to divert the efforts of the central government to collect any specific taxes, transferring this right to the grassroots levels, which also reduces the overall cost of collecting taxes; provides flexibility not of the taxation system itself, as is the case with the tax prescription system, but flexibility in the distribution of resources within the system, which is realized by changing interest rates, relieves the subjects of tax law from the painstaking work of adapting tax legislation; contributes to the weakening of horizontal intergovernmental tax competition, increases the predictability of the level of budgetary security and facilitates the process of optimization.

The particular advantage of this system is that each level of government can expect more stable revenues, regardless of the stage of the business cycle, than if fewer taxes were fully fixed, with different cyclical sensitivities. Here the rule of risk diversification works, which has positively proven itself in other areas of economic science.[16]

The tax sharing system also has disadvantages. It significantly reduces the autonomy of subnational authorities and their interest in developing a regional base. Losing control over the volume of tax collections, the establishment of tax bases and rates, the regional authorities are deprived of effective levers for managing the regional economy. In addition, there is a danger of weakening federal control over the flow of funds to the budgets.

In order to evaluate the previously mentioned principles of taxation, it is necessary to consider the system of shared (divided) taxes. This system in its pure form still exists in many countries, for example in Switzerland. Here the subject of division is direct federal income tax. Among federal countries, Germany practices share taxes to a greater extent. More lenient tax-sharing systems—common tax agreements—are widely used in Canada and to a lesser extent in the United States. Some elements of the shared tax system are applied in the Russian Federation (income tax).

Thus, both systems - prescribed and divided taxes - have both advantages and disadvantages.

The division of all tax revenues into own, fixed and regulating ones is made on the basis of a clear definition at what level of separation of powers, under the current general principles of taxation, it is possible to influence the total amount of revenues from the collection of a particular tax and how long or short-term the duration of the regulatory legal an act establishing the norms for the distribution of tax revenues.

Own tax revenues are formed in the budget, the level of which in the budget system corresponds to the level of tax in the structure of the tax system. VAT forms its own tax revenues of the federal budget, since the level of this tax corresponds to the level of its recipient budget. At the same time, only the federal level of government is empowered to change the parameters of federal taxes.

Although corporate income tax goes to regional (and before January 1, 2005, to local budgets), the parameters are nevertheless regulated only by the federal legislator, which indicates the federal budget’s own tax revenues and regulatory (and with tax revenues unchanged for a long time) fixed rates) tax revenues of regional and local budgets.

As a result of the distribution on a permanent basis of own tax revenues of one (superior) budget between the budgets of other (lower) levels of the budget system, tax revenues assigned to them are formed in recipient budgets. Tax revenues that are part of the own tax revenues of some budgets and credited on an ongoing basis to the budgets of other levels of the budget system that do not correspond to the level of tax in the structure of the tax system form the classification category of fixed tax revenues.

If tax revenues go to the budget of a different level of the budget system, different from the level of tax generated by them in the tax system, in the proportion established by law for a period of one financial year, the revenues in question form the category of regulatory tax revenues. The law establishing the proportions of the distribution of tax revenues between the budgets of different levels of the budget system during one calendar year is the law on the budget for the next financial year.

At the same time, as regulatory tax revenues, budgets of higher levels of the budget system during the financial year can transfer parts of their own and fixed tax revenues, as well as a part of regulatory tax revenues transferred by the federal budget to the consolidated budget of a constituent entity of the Russian Federation, which are further distributed on the basis of their own decision on the basis of their own decision. subject of the Russian Federation in the appropriate share in favor of the local budgets of the bodies of municipalities located within the boundaries of this subject.

The reason for the emergence of regulatory tax revenues is the need for inter-budgetary distribution of revenues from higher-level budgets in the direction of lower-level budgets during one financial year in order to regulate the volume of financing of functions performed by government bodies, the level of which belongs to the budgets that receive regulatory revenues. A typical representative of regulatory tax revenue is the income generated by the collection of personal income tax, which is part of the federal tax system.

The main parameters of the mechanism for calculating and paying personal income tax are fixed in the Tax Code of the Russian Federation, while the proportions of distribution of income from its collection between the federal budget and the consolidated budgets of the constituent entities of the Russian Federation until January 1, 2005 were annually established by the law on the federal budget for the next financial year . For example, in 2000, 16% of personal income tax revenues were credited directly to the federal budget, and 84% to the consolidated budgets of the constituent entities of the Russian Federation. Since 2001, there has been a tendency towards a significant increase in the regional share. The proportion of distribution of revenues from personal income tax took the following form: 1% - to the federal budget, and 99% - to the consolidated budgets of the constituent entities of the Russian Federation.

In 2002-2004 at the level of federal laws on federal budgets for these years, it was decided to transfer all proceeds from the personal income tax to the consolidated budgets of the constituent entities of the Russian Federation. Since 2005, the standards for interbudgetary distribution of personal income tax have been fixed on a permanent basis in Art. 56, 61, 611 and 612 BC of the Russian Federation (regional budgets - 70%, local budgets - 30%).

An unsuccessful attempt to apply, under the conditions of a fixed tax rate, the method of distributing tax revenues in the form of a minimum tax rate on the gambling business going to the federal budget and an unlimited regional surcharge to it led to the abolition of the mechanism for setting the tax rate and the abolition of the one used in the gambling tax. business method of unlimited distribution of tax revenues to the budgets of constituent entities of the Russian Federation. Thus, the principle of limitation, or a more stringent version of it, was introduced into taxation practice - the principle of strict fixation in the law of the tax rate, based on which tax revenues are allocated to lower budgets.

At the same time, it is important to emphasize that own tax revenues are generated in the budgets of all levels of the budget system, since each budget included in the structure of the budget system has its own system of taxes and fees. Meanwhile, fixed and regulating tax revenues, which are the result of the application of norms fixed on a permanent or temporary basis for deductions from the own tax revenues of higher budgets, are formed only in regional and local budgets. The formation of fixed and regulatory revenues in the federal budget would be contrary to the supremacy of the federal budget in the budget system of Russia and the actual profitability of federal taxes.

From the presented discussions about tax revenues of budgets, it follows that the classification of tax revenues into own, fixed and regulating is due to objective processes of initial differentiation and subsequent distribution on a permanent or temporary basis between the budgets of different levels of the budget system of the Russian Federation of income generated by the same tax, accumulating its own tax revenues in the budget, the level of which in the budget system coincides with the level of this tax in the structure of the tax system, and also forms fixed and regulating tax revenues in the budgets of other levels of the budget system. Based on the systematization of interbudgetary relations that arise on the basis of the completed stage of the initial delimitation of tax revenues, two main methods of distributing own tax revenues of some budgets between the budgets of other levels of the budget system are distinguished.

The first method consists in the centralized distribution of the total amount of tax calculated and paid in full between the budgets of different levels. The tax is calculated and paid by taxpayers in a single amount to the accounts of federal treasury bodies, after which this amount is distributed between the budgets of all levels of the budgetary system and the budgets of state non-budgetary funds in accordance with the standards established by law.

Examples of this method of inter-budgetary distribution of tax revenues in accordance with the budget legislation of the Russian Federation, to which the legal norms of the relevant chapters of the Tax Code of the Russian Federation refer, can be mechanisms for crediting income from personal income taxes to the budgets of different levels of the budget system. In accordance with Federal Law No. 20-FZ of August 2004, 12 “On Amendments to the Budget Code of the Russian Federation regarding the regulation of interbudgetary relations,” 70% of the personal income tax goes to the regional budget, 30% to local budgets, from 10% of them go to the budgets of settlements, 20% to the budgets of municipal districts.

Unlike the first method of interbudgetary distribution of tax revenues, which does not provide for the participation of the taxpayer in the process of tax sharing between the budgets of different levels of the budget system in connection with the payment of tax in a single and inseparable amount to the accounts of the federal treasury with its subsequent centralized distribution between different budgets, the second method, on the contrary, it implies the direct participation of taxpayers in the process of dividing the amount of tax between the budgets of different levels.

At the same time, the features of the second method of interbudgetary distribution of tax revenues are revealed in the form of two ways of independent participation of taxpayers in the process of dividing the amount of tax between the budgets of different levels of the budget system. These two methods are implemented at the tax payment stage, however, one of them involves the taxpayer distributing the tax amount in accordance with the established standards for tax revenue deductions to budgets of different levels, and the other method obliges the taxpayer to distribute the tax amount in accordance with the tax rates assigned to each budget.

When considering the first method of independent participation of taxpayers in interbudgetary relations, it should be noted that in the practice of calculating and levying taxes, situations are not ruled out when a taxpayer may be required by law to pay a tax calculated at a single rate in several different amounts, divided in accordance with the distribution of tax revenues between budgets of different levels of the budget system.

As an example of such a distribution of tax, calculated as a single amount, but divided by the taxpayer into several parts before payment, one can cite VAT, the total amount of which, in accordance with the standards provided for by the law on the federal budget for 2000, was divided by taxpayers into two separate amounts for payment to the federal budget and consolidated budgets of the subjects of the Russian Federation.

The disadvantage of the mechanism for inter-budgetary distribution of the previously existing corporate property tax was that the Law of the Russian Federation of December 13, 1991 No. 2030-I “On the corporate property tax”, establishing specific standards for the distribution of tax revenues between regional and local budgets (50:50) , did not indicate who should make this distribution - the federal treasury, the regional body responsible for the execution of the regional budget, or the taxpayer, independently dividing the calculated amount of tax into two equal parts before paying. Therefore, it was possible to either centrally transfer this tax to regional budgets with the subsequent distribution of the corresponding share of tax revenues to local budgets, or divide the tax amount calculated by taxpayers themselves into two equal parts and pay them to different budgets.

It is important to note that the method of centralized (descending) distribution of tax revenues between the budgets of different levels of the budget system by federal treasury bodies when tax is received into their accounts and the method of ascending distribution of tax revenues between budgets in accordance with the established standards of interbudgetary regulation by taxpayers independently at the stage of paying tax by them are applicable for education in the budgets of both fixed and regulatory tax revenues, since the proportion of interbudgetary distribution of tax revenue under these conditions can be either constant, established by the Tax Code of the Russian Federation or the RF Budget Code, or temporary, limited in duration by the relevant budget law.

The second way of independent participation of taxpayers in the process of interbudgetary distribution of tax revenues is the transfer of tax amounts to the budgets of different levels of the budget system in accordance with the tax rates assigned to each budget. A characteristic feature of this method of distribution, which is characteristic, for example, of modern corporate income tax, is that even when calculating the amount of tax in accordance with established rates, it is divided into separate shares credited to different levels of budgets. When using this method, the taxpayer independently calculates the amount of tax corresponding to individual tax rates, and pays the calculated amounts in separate payments to the budgets of different levels of the budget system.

In the case of the corporate property tax, without losing the economic meaning of its interbudgetary distribution, the method of centralized distribution of tax revenues by the treasury or the method of distributing tax revenues by taxpayers independently according to established standards could be replaced by a second method of independent participation of taxpayers, which consists in the interbudgetary distribution of tax revenues in accordance with the each budget tax rates.

Instead of introducing a rule on the distribution of the tax amount between regional and local budgets in the proportion of 50:50, a single tax rate of 2% could be divided into two tax rates of equal magnitude - 1% and 1%. The amounts of corporate property tax calculated with their help would be independently paid by taxpayers to different budgets. When tax revenues are distributed between regional and local budgets in accordance with divided tax rates, the negative consequences of the centralization process, manifested in the form of a possible delay (and for an indefinite time) in the budgets of the constituent entities of the Russian Federation of the share of tax revenues legally belonging to local budgets, are excluded.

At the same time, this method of independent participation of taxpayers in the interbudgetary distribution of tax revenues is applicable only for the formation of fixed tax revenues, since the division of the single tax rate into separate rates implies a long-term division, and, consequently, the norm for transferring the corresponding revenues to the budgets of different levels of the budget system.

It should be noted that the considered method of interbudgetary distribution of tax revenues, which involves the independent distribution by taxpayers between budgets of different levels of tax revenues according to the tax rates assigned to each budget, is considered by individual researchers among other methods and methods of distribution of tax revenues used in the public sector as the fundamental and most effective option. interbudgetary relations, contributing to the stable flow of the budget process, confident planning of tax revenues and the predictable development of territorial finance. The position of these researchers boils down to the fact that interbudgetary relations must be built on the basis of divided rates between all levels of the country's budget system. The split tax rate will allow local governments to independently approve the budget before the start of the financial year and plan the strategic development budget, as well as stimulate increased tax collection.

When considering the methods of distributing tax revenues between budgets of different levels, it should be noted that in some cases the tax is paid by the taxpayer centrally in a single amount with its subsequent distribution among the budgets of federal treasury bodies, and in other cases the taxpayer can distribute the amount in two ways: either at the stage of calculation for individual tax distributes the amount of tax among different budgets, or, when paying the calculated amount of tax, divides it into parts that correspond to the standards for the distribution of tax revenues between the budgets of different levels of the budget system.

When a tax is centrally transferred in a single amount to the accounts of the federal treasury authorities (this process of distribution of tax income does not interfere with the mechanism for calculating the tax itself), then the standards for the distribution of tax income between budgets of different levels of the budget system that are in effect on an ongoing basis are indicated in the Budget Code of the Russian Federation.

If the responsibility for inter-budgetary distribution of tax revenues is assigned to taxpayers, who will independently have to divide the tax into separate amounts for their transfer to different budgets, then this method of distributing tax revenues directly affects one of the two constructive elements of the tax model - either the tax rate, or the procedure for paying tax. In this case, the standards for tax revenue deductions that are in effect on an ongoing basis should be established in the relevant chapter of the Tax Code of the Russian Federation, which regulates the rules for calculating and paying a specific (distributed) tax.

With regard to regulatory tax revenues, regardless of whether the amount of tax is distributed between the budgets centrally by federal treasury bodies or by taxpayers independently at the stage of calculating or paying tax, the proportions of deductions that are generally valid for one financial year are established in the relevant budget law, which occupies a separate position in the system of normative legal acts and is not included in the structure of either the RF BC or the RF Tax Code.

The functions of each level of the budget must correspond to its revenues, which is one of the fundamental principles of budgetary federalism. Taxes are the main source of revenue for the budgets of all levels of government. Consequently, the relationship between the subjects of intergovernmental relations depends on the methods of distribution of taxes in the state system. The most important criteria in assessing taxation in economic theory are fairness and efficiency. Currently, along with the traditional principles of studying tax policy in an intergovernmental context, new approaches are being used, which is explained by the emergence of new variables that affect the taxation process. Thus, when considering the effectiveness of taxation, emphasis should be placed on the potential "local distortion" created by differentiated approaches to tax policy in various subjects of the Russian Federation. When studying the fairness of taxation, it is necessary to pay attention to the extent to which the distribution of the tax burden between residents of various constituent entities of the Russian Federation is equivalent.

The instruments of budgetary vertical alignment are:

- revision of the existing system of delimitation of powers (mandates);

- adjustment of additional standards for deductions from taxes received by the budget of a constituent entity of the Russian Federation, assigned to municipalities on a long-term basis;

- subsidies from regional funds for financial support of municipalities (general transfer);

- transfer-substituting standards for deductions from income tax (they have some similarities with equity participation in tax revenues based on the use of transfer formulas);

- "negative" transfers from well-to-do municipalities to the appropriate financial support funds.

Budget horizontal equalization tools include:[17]

- subsidies from municipal support funds (general transfer);

- subsidies from social spending co-financing funds (targeted conditional transfers for current expenses);

- subsidies from municipal development funds (targeted conditional transfers on capital expenditures);

- transfer-substituting standards for deductions from income tax (they have some similarities with equity participation in tax revenues based on the use of transfer formulas).

In the intergovernmental context, vertical and horizontal tax agreements and the degree of their influence on the "health" of the intergovernmental system of budgetary relations deserve special attention.

Intergovernmental tax policy can conditionally be divided into vertical and horizontal.

Vertical politics is aimed at establishing effective relationships between federal, regional and local authorities, that is, from top to bottom of the government structure. Horizontal policy is based on the theory of tax choice of regional and local governments.

The personal income tax should be assigned to the central government as it is a highly stable base. Such consolidation ensures the prevention of migration within the state. Since this tax base has a relatively high income elasticity, changes in personal income tax can be used to achieve stabilization goals. Prescribing a progressive personal income tax to the central government ensures efficient redistribution of income, while a non-progressive income tax can also be assigned to subnational governments.

Since income from corporate income tax varies with the stage of the business cycle, it must go to the central government. In Russia, income tax can be considered an analogue of this tax.

Value added tax is an indirect tax based on a resource basis. Its prescription to the central government is explained by the difficulties that independent subnational governments may have in determining the tax base for transnational and interstate corporations.

The central government should address the revenues from those taxes, the bases of which are distributed extremely unevenly among the subjects of the Russian Federation. The tax on natural resources, in particular, should be centralized in order to avoid geographic disparities between regions and to prevent "allocation" distortions that can arise from local taxation of natural resources. In Russia, the fate of such taxes remains the subject of a bitter dispute between some regional authorities and the federal center.

Taxes on non-mobile factors of production, such as real estate, are sources of revenue for local governments. According to the model of the American professor Ch. Tiebout, there is an indirect relationship between local tax rates and local authorities' incomes, because the tax affects the efficiency of decisions made by consumers. If the tax base is mobile, then a higher or lower tax rate encourages residents to leave the region.[18]

In European statistics, the indicator "local taxes" includes revenues generated under the share tax system, which provides local governments with a share of tax revenues collected in their territory, which is not separated from revenues related exclusively to local taxes.

Shared tax revenues reduce vertical disparity and provide some autonomy, but by themselves they cannot guarantee local governments' accountability to the public and prevent them from setting their own level of service delivery through their own level of taxation.

In order to be able to do this, local self-government bodies must first of all have at their disposal exclusively local taxes, the rates of which they have the right to set independently. However, if one goes beyond the Charter of Local Self-Government in force in the EU countries, then a higher degree of local autonomy can be achieved by giving local governments the right to determine their own tax deductions and tax base.

The tax that generates the most significant revenue is the personal income tax. Many countries apply it as an exclusively local or shared tax.

The share of revenues from this tax in the total amount of local tax revenues in the six countries with the greatest tax decentralization is very high: in Sweden - 99,62; Finland - 86,99; Denmark - 92,77; Norway - 81,80; Switzerland - 77,02; Iceland - 73,49%.

In all these countries, this tax is exclusively local, and local authorities in Sweden, Finland, Denmark and Switzerland have the opportunity to set the tax rate at their own discretion.

In other countries, personal income tax also occupies an important place in the local tax system: in Belgium it accounts for 61,54% of local tax revenues, in the Czech Republic - 82,36, Germany - 80,38, Luxembourg - 92,82 %.

Theoretically, it is easy to imagine a system in which the provision of funds to local governments relies only on revenues from exclusively local taxes, replenished, if necessary, by loans repaid also from local tax revenues. In such a situation, local authorities will have the discretion to choose the level of local taxation, based on the need to finance their own expenses.

However, no such system exists in any country. In 1994, there were only two countries where their own tax revenues accounted for more than 50% of the total revenues of municipalities - Denmark (about 51%) and Sweden (about 61%).

It is much preferable to provide funding for some types of local public services through payments for those same services. In 1994, total revenues from local taxes and payments for services provided amounted to about 73% in Denmark, and 69% of total local budget revenues in Sweden. Similar figures were achieved only in Switzerland (about 70% in 1993).

It is believed that the parameters of financing a particular service must comply with the requirements of transparency and distribution of responsibility. Thus, when it comes to services that the state entrusts to local governments acting as intermediaries, it would be logical and preferable to finance the corresponding costs through transfers.

In the same way, if the state believes that a certain local public service should guarantee citizens a minimum level of service at a uniform rate throughout the territory, and local governments must therefore comply with certain standards, funding for such guaranteed services can be at least partially funded. transfer account.

However, all these circumstances can only partly justify the importance of financial transfers. In fact, in most European countries, their own financial resources do not exceed and? revenues of local budgets, which raises a legitimate question about the reasons for such limited tax independence of local authorities. Each country defines issues of empowerment and financial decentralization in its own way. To fulfill the powers, the absolute value of the cost of financial resources in different countries is not the same. It is much higher in developed countries. In some former socialist countries (for example, Bulgaria, the Czech Republic, Poland) it is also relatively large, while in others (for example, Armenia, Georgia, Azerbaijan) it is still small. From the point of view of maintaining proportions and their analysis, relative indicators are important.

In all countries, their own tax revenues of local budgets are not enough to cover the costs. This, of course, is due to the unwillingness of the central government to give full tax independence to local governments for fear that the exit from the control of policies pursued at the local level may be an obstacle or, worse, doom the economic policy pursued at the state level to failure. level. In addition, the central authorities must have at their disposal the necessary funds to finance the numerous public expenditures.

To justify the need to control the tax policy of local authorities, references are often made to a number of macroeconomic factors. In countries where the personal income tax is set by local governments, the marginal rate of this tax is usually not controlled by the government. This applies in particular to the Nordic countries. Discussions often revolve around the consequences of high marginal rates; however, in no Nordic country the personal income tax rate can be considered too high: for example, in Finland the average marginal local tax rate does not exceed 18%, and in other Nordic countries - 30%.[19]

However, problems can also arise due to the fact that central governments also need funds from income tax. And this can be regarded as a certain limitation of the local tax potential. The most common argument against purely local taxes is the risk of a deficit to cover current budget spending, with all the ensuing and well-known dangerous macroeconomic consequences.

Topic 3. BASICS OF THE BUDGET PROCESS

3.1. Factors affecting the budget process

Features of the budget process are determined by the forms of government and state structure of the country. The country's tax system should be coordinated and balanced. The state, in particular, is obliged to ensure that the tax burden is distributed in accordance with the tax potential. The existence of different tax levels makes it difficult to find adequate solutions.

In addition, a complex territorial organization entails additional difficulties in terms of defining the tasks that stand at one level or another. Since the nature and scale of these tasks determine the choice of financial solutions, the difficulties mentioned above inevitably turn into obstacles to tax independence.

Differences existing at each territorial level (demographic, sociological, territorial, etc.) between territorial entities can reduce the effectiveness of decisions depending on each specific case.

Federal states are characterized by the unity of the budget process and at the same time its decentralization. At the same time, unity is determined by the commonality of principles and the constitutional and legislative framework for organizing the budget process.

The stages of the budget process are:

1) drafting budgets;

2) consideration and adoption of the law on the state budget of the country, decisions on local budgets;

3) implementation of the budget, including, if necessary, amendments to the law on the state budget of the country, decisions on local budgets;

4) preparation and consideration of a report on the implementation of the budget and the adoption of a decision on it.

At all stages of the budget process, financial control and audit and evaluation of the effectiveness of the use of budgetary funds are carried out.

The fundamental legal framework of the budget process, as a rule, is enshrined in the constitutions of states, which define the main participants in the budget process (parliament, president, government, ministry of finance) and their main powers. In addition, there are special legislative acts regulating substantive and procedural norms on budgetary issues. The principle of decentralization in a federal state implies the presence in the structure of the regulatory framework of the budgetary process of the legislative block at the level of subjects of the federation.

The organization of the budget process in different countries has both common features and specific features. For example, in states with a continental system of law, the budget, as a rule, is adopted in the form of a single legislative act (France, Germany), while in countries of Anglo-Saxon law, separate legislative acts are developed on the revenue and expenditure parts of the budget (Great Britain, Canada, USA).

The most important principle of the budget process, common to all varieties of its organizational scheme, is the requirement that all state revenues and expenditures be included in the budget and approved by parliament. The legislative norms of many countries specifically emphasize the need to ensure the unity of income and expenditure, that is, the balance of budgets.

The starting point of the budget process is the budget initiative. In accordance with general practice, the right of budget initiative belongs to the highest executive body - the government (Great Britain, Germany, etc.) or the president (USA, France). In no country does parliament have such a right; its functions include amending and approving bills proposed by the government.

The drafting of the budget in all states is also carried out by the executive authorities, which at this stage determine the volume of the budget, the parameters of tax and monetary policy, and the main directions for spending funds. The technology of this work in different countries has much in common, first of all, the commonality lies in the decentralized preparation of the draft budget. It involves all ministries and departments that develop cost estimates. At the same time, all ministries and departments receive from the Ministry of Finance control figures for possible allocations, within each of them various departments are also involved in this activity, the proposals of which are ultimately summarized by the minister or head of the department. In turn, applications from ministries and departments are aggregated by the Ministry of Finance.

The next stage of the budget process is the procedure for its consideration and adoption of the law on the state budget. This stage is carried out by the parliament, whose activities are focused on considering the issues of receipt of funds to the budget and their spending in priority areas. This stage is also characterized by organizational decentralization of the budget process. The draft budget becomes the subject of consideration in many parliamentary commissions and committees. In addition, this work includes the second chamber of parliament, within which many committees and commissions are also involved in the budget process. In case of disagreement between the chambers, the technology of parliamentary passage of the budget provides for the possibility of forming a conciliation commission.

In the procedure for adopting the budget in countries with a presidential form of government, an important role is played by the president, who has the right of suspensive veto, the use of which entails the return of the budget for reconsideration in parliament.

The adopted budget law is subject to promulgation by the head of state. Some countries (for example, Germany) provide for a countersignature procedure that precedes the promulgation of the budget law, after which it is published in the official gazette.

The final stage of the budget process is financial control of budget execution. The principle of decentralization also applies at this stage. Bodies of both the legislative and executive branches of government participate in regulatory activities. These bodies include not only parliament and the government (primarily the Ministry of Finance), but also bodies specially created to carry out only budgetary and financial control - the chambers of accounts. In all federal states, in the budget process, the federal government seeks to limit and bring under its control the subjects of the federation, which are granted significant independence in this matter by the constitution and legislation. In practice, the federation has unconditional priority in budget legislation and exercises actual control over the activities of the constituent entities of the federation in this area. Thus, the distribution of powers of the federation and its subjects in the budget process is regulated exclusively by federal legislation. Moreover, the settlement of the issue of the relationship between the budgetary powers of the federation and its subjects on the basis of agreements on the division of relevant powers is not provided for in any of the federations.

3.2. Budget process: legal and organizational bases and stages

Budget Law of the Russian Federation - this is a set of financial and legal norms that fix the structure of the budget structure and the budget system of Russia, the procedure for the formation of budget revenues and the list of expenses, regulate the budget process, determine the procedure for the formation and use of state budget and extra-budgetary funds in order to financially support the social and economic development of the country and strengthening the defense capability of the state.

The Russian Federation, as well as the subjects of the Russian Federation, have their own areas of competence, or subjects of jurisdiction. If the normative acts adopted by the subjects of the Russian Federation go beyond their competence, they have no legal force.

The main source of financial and budgetary law in Russia is Constitution RF, which includes the main fundamental provisions of the budget. In addition to the Constitution, the sources of budgetary law in Russia are:

- federal laws of the Russian Federation;

- legal acts of representative and executive bodies of state power, local self-government;

- legal acts of governing bodies of special competence (decrees of the President of the Russian Federation), which contain rules of law in addition to and development of the Constitution.

The Constitution of the Russian Federation pays the greatest attention to the budgetary activities of the state, which is explained by the significant role of the budget as the central link in the financial system.

Article 106 of the Constitution prescribes that federal laws adopted by the State Duma on the following issues are subject to mandatory consideration in the Federation Council:

a) the federal budget;

b) federal taxes and fees;

c) financial, currency, credit, customs regulation, money issue;

d) ratification and denunciation of international treaties of the Russian Federation, etc.

According to Art. 71 of the Constitution, the jurisdiction of the Russian Federation is: the federal budget; federal taxes and fees; federal funds for regional development; foreign economic relations of the Russian Federation. Article 132 of the Constitution defines the powers of local self-government bodies that independently manage municipal property, form, approve and execute the local budget, establish local taxes and fees, maintain public order, and also resolve other issues of local importance.

Budget Process - the activities of state authorities, local governments and participants in the budgetary process, regulated by the norms of law, in the preparation and consideration of draft budgets, draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as control over their execution (Article 6 BK RF).

The budget process includes three stages of budget activity:

1) drafting budgets;

2) consideration and approval of budgets;

3) execution of budgets;

An integral part of the budget process is budgetary regulation - the redistribution of financial resources between budgets of different levels.

Prior to the adoption of the RF BC, the main legal act regulating the budget process in Russia was the Law of the RSFSR dated October 10, 1991 No. 1734-I "On the Fundamentals of the Budget Structure and Budget Process of the RSFSR". At present, the norms relating to the implementation of the budget process, in addition to the RF BC, are contained in a number of other laws of the Russian Federation, laws (decisions of representative bodies) of the constituent entities of the Russian Federation, regulatory legal acts issued by executive authorities (for example, in the Rules on the procedure for compiling and executing budgets developed Ministry of Finance of the Russian Federation and similar ministries of subjects of the Russian Federation).

The RF BC contains normative legal acts regulating budgetary legal relations. Thus, the President of the Russian Federation has the right to issue decrees regulating budgetary legal relations, which should not contradict the RF Budget Code and other laws. In the event of a conflict between the RF BC and normative acts signed by the RF President or the RF Government, the RF BC shall apply.

Federal bodies of state power, bodies of state power of the constituent entities of the Russian Federation adopt normative legal acts regulating budgetary legal relations, within the limits of their competence.

If an international treaty of the Russian Federation establishes rules other than those stipulated by the budgetary legislation of the Russian Federation, the rules of the international treaty shall apply. But there is an exception to this rule: international treaties of the Russian Federation apply directly to budgetary legal relations, except for cases when it follows from an international treaty that their application requires the issuance of domestic acts.

Acts of the budget legislation of the Russian Federation do not have retroactive effect and apply to relations arising after their entry into force, unless otherwise provided by the RF Budget Code or federal law.

Thus, the sources of budgetary law include the Constitution of the Russian Federation, the Budget Code of the Russian Federation and other normative legal acts issued by the President of the Russian Federation, executive authorities of the Russian Federation, local self-government, regulating budgetary legal relations within the limits of their competence.

These legal acts are traditionally classified according to their legal properties, highlighting the following:

1) normative acts that establish general rules for participants in financial relations, regulate certain types of financial relations; determine the specific features of the relevant type of financial relations;

2) financial and planning acts, a significant array of which is typical for budgetary law, including the federal budget, state budgets of the republics, financial plans of other financial organizations.

The adoption in 1998 of the Budget Code of the Russian Federation meant a transition to a qualitatively new stage in the regulation of budgetary relations in the Russian Federation. However, not all problems have been solved.

For six years, 24 laws on amendments to the RF BC have been adopted. The changes affected, among other things, such issues as expenditures, debt, the introduction and consideration of the draft budget (2000), "off-budget income" (2002), the Stabilization Fund (2003), interbudgetary relations (2004), lawsuits (2005).[20 ]

In addition, changes were continuously made to the Budget Code of the Russian Federation (on average once a quarter), with amendments fundamental to the budget system being adopted almost every year. On the one hand, this reflected the development of methodology and practice requirements, but on the other hand, it was a consequence of the presence of a large number of unresolved issues, gaps and internal contradictions in the Code. As a result, the Code became increasingly fragmented, and its general instability limited its application.

Under these conditions, the main regulatory burden fell on the federal law on the federal budget, which, on the one hand, was forced to suspend a number of norms of the Code, which, naturally, does not correspond to the basic principles of public finance management. On the other hand, the budget law was forced to contain a large number of legal norms that went beyond the scope of its subject.

The main reason for introducing amendments to the RF BC, which came into force on January 1, 2008, is that the Code reflects the state of understanding of public finance management in the early to mid-90s. It contains absolutely correct principles that most countries of the world follow. Moreover, it contains a number of elements that are only now beginning to be actively used in budget practice, in particular medium-term financial planning and even performance-based budgeting. Another thing is that these norms do not form an integral system, do not stimulate the development of the budget process and require their practical application, and many provisions of the Code impede the development and application of new principles for organizing the budget process. In this regard, since January 1, 2008, about 2/3 of the current norms of the Code have been changed. At the same time, almost half of the articles are set out in a new edition, in addition, the Code is supplemented with new articles. Structurally, these amendments can be combined into six blocks (Table 3.1), two of which, based on conceptual documents approved by the Government of the Russian Federation and reflecting the essence of the ongoing budget reform, are the main ones for us.

The basic principles and concepts of the budget system, the language in which the budget legislation is written, must be universal and not allow any additional interpretation. Any distortion or other interpretation of these concepts will violate the unity of legislation.

Reforms of interbudgetary relations and the budget process affect only authorities of different levels and types, while consumers of budget services interact primarily with budget institutions. Decentralization of public finance management at the macro and meso levels creates the prerequisites and conditions for carrying out the most difficult part of the budget reform - the reorganization of budget institutions, “micro-decentralization” of public finance management, “denationalization” of the production of a significant part of budget services.

The current budgetary and legal status of budgetary institutions does not allow us to count on any effective provision of budgetary services due to the presence of deep internal contradictions between:

- subsidiary responsibility of the state and uncontrollability of "off-budget" obligations of budgetary institutions;

- formally equal legal status and actually different financial and economic status of budgetary institutions;

- moderate underfunding “on average” and unacceptably low budget funding in some cases and the presence of significant extra-budgetary funds in others;

- formal free and generally accessible and real paid and selective provision of budgetary services;

- "hard" estimated financing and "soft" use of off-budget income;

- limited formal powers and unlimited informal possibilities of budgetary institutions.

For some organizations (universities, clinics, individual schools), the current status of budgetary institutions is too rigid, forcing them to operate in an informal mode, for others (law enforcement agencies, military units) it is too "soft", diverting them to activities not related to the main functions.

In accordance with the principles of restructuring the public sector in the Russian Federation approved by the Government of the Russian Federation, it is necessary to clearly separate budgetary institutions and organizations of other organizational and legal forms (autonomous institutions, autonomous non-profit organizations) that provide public services (Table 3.2).

The reform of the budget network provides for two types of measures linked in content and timing.

Firstly, it is proposed to tighten the regime for the use of budgetary funds for budgetary institutions: all extrabudgetary income should be planned as part of the budget and used only through a single estimate, limits on budgetary obligations and a personal account in the treasury.

At the same time, a procedure may be established in which a part of its income from the provision of paid or partially paid services is "automatically" included in the estimate of the institution. We must proceed from the fact that a significantly smaller number of institutions should remain in this status than now. Some of them should be merged, re-profiled or transferred to the jurisdiction of other executive authorities (including other levels).

Secondly, opportunities must be created for the transformation of budgetary institutions into organizations of other organizational and legal forms (autonomous institution, autonomous non-profit organization). Such organizations will not be included in the register of recipients of budgetary funds, they will have their own bank accounts, and the state will not be liable for their obligations. Extra-budgetary funds and their own revenues, in addition to budgetary financing for the actually provided budgetary services, upon their provision, these institutions can keep and dispose of them at their own discretion (subject to the statutory goals). At the same time, they will have the right (and sometimes guarantees) to receive budget financing for the provision of budget services in the form of a state (municipal) assignment, per capita financing, etc.

At each level of decentralization of public financial management, one can find the same elements in relation to which it is necessary to implement measures that are essentially similar. The main ones are a clear and maximally “rigid” consolidation of powers (rights and obligations) and resources, as well as the creation of competitive conditions, supported in the initial period by additional (“direct”) incentives and disincentives. If these reforms are consistently carried out (as was the case until very recently in the field of interbudgetary relations and continues as part of the implementation of the Concept of Reforming the Budgetary Process), then in the near future the foundations of a fundamentally new, much more effective model of public finance management will be created, i.e. the main task of the modern cycle of the transition period will be solved.

The system of bodies with budgetary powers includes financial authorities, monetary authorities (the Central Bank of the Russian Federation (Bank of Russia)), state (municipal) financial control bodies (Accounts Chamber of the Russian Federation, control and financial executive authorities, control bodies of regional and local representative bodies).

The main tasks of the budget process:

- identification of material and financial reserves of the state;

- Calculation of budget revenues as close as possible to reality;

- the most accurate calculation of budget expenditures;

- Ensuring maximum balance of budgets;

- harmonization of budgets with the implemented economic program;

- implementation of budgetary regulation in order to redistribute sources of income between budgets of different levels, sectors of the economy, economic regions, etc.

3.3. Participants of the budget process, their powers

Participants in the budget process with budgetary powers at the federal level are:

- President of the Russian Federation;

- State Duma of the Federal Assembly of the Russian Federation;

- Federation Council of the Federal Assembly of the Russian Federation;

- Government of the Russian Federation;

- Ministry of Finance of the Russian Federation;

- Federal Treasury;

- bodies collecting budget revenues;

- Central Bank of the Russian Federation (Bank of Russia);

- Accounts Chamber of the Russian Federation;

- Federal Service for Financial and Budgetary Supervision;

- state off-budget funds;

- the main managers and managers of budgetary funds;

- other bodies entrusted with budgetary, tax and other powers by the legislation of the Russian Federation.

The general management of the financial system is carried out by the highest authorities and administrations.

I. The President of the Russian Federation (Administration of the President of the Russian Federation) determines the goals of financial policy, signs the budget plan, has the right to "veto" financial legislation adopted by the Federal Assembly of the Russian Federation.

II. The Parliament of the Russian Federation (the Federal Assembly of the Russian Federation, consisting of two chambers: the Federation Council and the State Duma) establishes taxes, fees, non-tax payments, approves the federal budget, adopts financial legislation (the Budget Code of the Russian Federation, the Tax Code of the Russian Federation), etc.

III. The Government of the Russian Federation develops the federal budget and acts as a coordinating center for financial management.

IV The Ministry of Finance of the Russian Federation (Minfin of Russia) is the central body implementing the financial policy. It ensures the unity of financial, monetary and foreign exchange policy in the Russian Federation, coordinates the activities of other federal executive bodies.

The Ministry of Finance of the Russian Federation has the following budgetary powers:

- draws up a draft federal budget and submits it to the Government of the Russian Federation, takes part in the development of draft budgets for state non-budgetary funds;

- represents, on behalf of the Government of the Russian Federation, the state party in agreements on the provision of federal budget funds on a repayable basis and guarantees at the expense of federal budget funds;

- provides methodological guidance in the field of drafting the federal budget and execution of the federal budget;

- establishes the procedure for maintaining a consolidated budget list of the federal budget;

- draws up and maintains a consolidated budget breakdown of the federal budget and submits it to the Federal Treasury;

- submits to the Federal Treasury the limits of budgetary obligations for the main administrators of the federal budget funds;

- develops a forecast of the consolidated budget of the Russian Federation;

- develops, on behalf of the Government of the Russian Federation, a program of state internal borrowings of the Russian Federation;

- carries out, on behalf of the Government of the Russian Federation, cooperation with international financial organizations;

- develops, on behalf of the Government of the Russian Federation, a program of state external borrowings of the Russian Federation;

- provides methodological guidance on accounting and reporting of legal entities, regardless of their organizational and legal forms;

- establishes a unified chart of accounts for budget accounting and a unified methodology for budget accounting;

- ensures the provision of budget loans within the limit of funds approved by the federal law on the federal budget for the next financial year, in the manner established by the Government of the Russian Federation;

- on behalf of the Russian Federation, on behalf of the Government of the Russian Federation, provides state guarantees to constituent entities of the Russian Federation, municipalities and legal entities within the limit of funds approved by the federal law on the federal budget for the next financial year;

- registers issues of loans of subjects of the Russian Federation, municipalities;

- maintains the State Debt Book of the Russian Federation;

- carries out, in accordance with the procedure established by the Government of the Russian Federation, the management of the public debt of the Russian Federation;

- organizes the execution of the federal budget;

- adopts normative acts in the established field of activity, etc.

At the same time, the Minister of Finance of the Russian Federation has the exclusive right to give permission for the following actions: approval of the consolidated budget list of the federal budget; approving the limits of budgetary obligations for the main administrators of federal budget funds; provision of budget loans from the federal budget, etc. The performance of these actions without the permission of the Minister of Finance is a violation of the budget legislation of the Russian Federation. The Minister of Finance has the right to prohibit the chief administrators of budgetary funds from changing the purpose of budgetary funds within the budget if the Minister of Finance has received a submission from the Accounts Chamber of the Russian Federation or the Federal Service for Financial and Budgetary Supervision, indicating a violation of the budgetary legislation of the Russian Federation by the chief administrator of budgetary funds.[21]

The structure of the Central Office of the Ministry of Finance of the Russian Federation includes the following departments and divisions.[22]

1. The Budget Policy Department includes the following departments: budget legislation; budget planning; interstate finance; organizing the execution of the federal budget; Consolidated department of income analysis and forecasting; analysis and forecasting of income from direct taxes and other payments; analysis and forecasting of income from indirect taxes and resource payments; reserve funds; budget policy in the public service; financial support of the judicial system; normative legal support of public service; remuneration of civil servants and analysis of administrative costs; methodology of budget accounting, budget reporting and budget classification; methodology for the formation of expenditure commitments and execution of budgets.

2. The Department of Budget Policy in the Sectors of the Economy includes the following departments: Consolidated department; departments of budgetary policy in the field of transport, road facilities and communications; budget policy in the field of land use, subsoil use and ecology; budgetary policy in the field of civil industry and energy; budgetary policy in the field of agriculture and fisheries; budgetary policy in the field of formation of federal target programs, regional development programs; budgetary policy in the field of housing subsidies and methodology for financing budgetary capital expenditures.

3. The Department of Budget Policy in the branches of the social sphere and science includes departments: Consolidated department; departments of budgetary policy in the field of education; budgetary policy in the field of health care and physical culture; budgetary policy in the field of scientific and scientific-technical activities and civil purposes; budgetary policy in the field of social security and programs of state employment of the population; compulsory social insurance and state off-budget funds; budgetary policy in the sphere of culture and mass media.

4. The Department of Budgetary Policy in the field of state military and law enforcement service and the state defense order includes departments: consolidated analysis in the field of national defense, state security and law enforcement; regulatory legal support in the field of state military and law enforcement service; budgetary policy in the field of national defense; budgetary policy in the field of state security and law enforcement; budget policy in the field of justice, prevention and elimination of consequences of emergency situations; budgetary policy in the field of military-technical cooperation; budgetary policy in the sphere of the state defense order, mobilization preparation of the economy and material reserve.

5. Department of interbudgetary relations includes: Consolidated department; departments for organizing the budget process in the subjects of the Russian Federation; monitoring and relations with the budgets of the constituent entities of the Russian Federation; municipalities; reforms of housing and communal services; methodology of interbudgetary relations.

6. Department of international financial relations, public debt and public financial assets includes: departments of international cooperation; relationships with international banks; external debt; external assets; state domestic assets; domestic debt; methodology and regulation of the debt of subjects of the Russian Federation and municipalities; accounting, analysis and reporting; for managing the funds of the Stabilization Fund.

7. The Department of Tax and Customs Tariff Policy includes the departments of: coordination and control of the activities of the Federal Tax Service, analysis and general issues; application of the general rules of legislation on taxes and fees; taxation of profit (income) of organizations; taxation of citizens' incomes and unified social tax; property and other taxes; taxes and revenues from the use of natural resources; indirect taxes; international taxation; customs payments; normative regulation of determining the customs value.

8. Department of regulation of state financial control, auditing, accounting and reporting includes departments: regulation of financial and budgetary supervision and financial monitoring; accounting and reporting methodology; regulatory and legal regulation of auditing activities; regulation of certification, licensing and advanced training of auditors, coordination of control in the field of mandatory audit and the activities of professional audit associations.

9. Department of financial policy includes departments: pension reform; financial markets and property relations; regulation of lottery activities and production of security printing products; regulation of insurance activity; organization of complex payments; banking activities; monetary policy.

10. The Legal Department includes the departments: legal support of the state debt policy, defense complex and law enforcement agencies, financial market and interbudgetary relations; legal support of budget policy, activities of subordinate organizations and systematization of regulations; legal support of tax and customs tariff policy, control and supervision, audit, accounting and reporting; judicial protection.

V. The Federal Treasury has the following budgetary powers:

- distributes income and other receipts between the budgets of the budgetary system of the Russian Federation in accordance with the standards established by the RF BC;

- opens accounts with the Bank of Russia and credit institutions for accounting for federal budget funds and other funds provided for by the legislation of the Russian Federation;

- establishes the procedure for cash services for the execution of budgets of the budget system of the Russian Federation;

- keeps records of operations on the cash execution of the federal budget, draws up and submits to the Ministry of Finance of the Russian Federation reports on the cash execution of the federal budget in accordance with the legislation of the Russian Federation, etc.

The unified account of the Federal Treasury is located in the Bank of Russia and is an account that accumulates funds from the federal budget and reflects the operations of state authorities of the Russian Federation for the execution of the federal budget.

The use of the Single Account is a new information technology for the execution of the federal budget, through which:

- centralization of revenues and funds of the federal budget;

- centralization of operations for accounting of incomes of budgets of different levels on one account;

- daily reflection in the General Ledger of the Federal Treasury of operations on income and expenditure of the federal budget.

VI. The Federal Tax Service and the Federal Customs Service exercise control over the correctness of the calculation, completeness and timeliness of the payment of taxes, customs revenues, fees and other payments to budget funds.

The system of tax authorities is built in accordance with the administrative and national-territorial division adopted in the Russian Federation. The main element in this system is the state tax inspectorates for the relevant territory (republic, territory, region, city, district), which carry out the main burden of direct control over the implementation of tax legislation by all individuals and legal entities in the serviced territory.

Main tasks tax inspectorates are monitoring compliance with tax laws and the correct calculation and timely payment of taxes and other payments to the relevant budget established by law.[23]

Tax inspectorates perform the following functions:

1) keep records of taxpayers in accordance with the established procedure;

2) submit to financial bodies and treasury bodies information on actually received amounts of taxes and payments;

3) carry out the return of excessively collected and paid taxes and other obligatory payments to the budget;

4) analyze reporting, statistical data and the results of on-site inspections, prepare on their basis proposals for the development of instructive guidelines and other documents on the application of legislative acts on taxes and other payments to the budget;

5) carry out at enterprises, in institutions and organizations based on any form of ownership, with citizens of the Russian Federation, foreign citizens and stateless persons checks of monetary documents, accounting registers, reports, plans, estimates, declarations and other documents related to the calculation and payment of taxes and other payments to the budget;

6) keep records and appraisal of confiscated, ownerless property, property transferred by right of inheritance to the state, and treasures;

7) coordinate the implementation of measures with law enforcement and regulatory republican authorities to strengthen control over compliance with legislation on taxes and other payments to the budget;

8) control the timeliness of the submission by payers of accounting reports and balance sheets, tax calculations, reports, declarations and other documents related to the calculation and payment of payments to the budget, and also check the reliability of these documents in terms of the correctness of determining profit, income, other objects of taxation and tax calculation and other payments to the budget;

9) transfer to law enforcement agencies materials on the facts of violations for which criminal liability is provided;

10) bring claims to the court and arbitration court:

a) on the liquidation of an enterprise of any organizational and legal form on the grounds established by the legislation of the Russian Federation, on the recognition of the registration of an enterprise as invalid in cases of violation of the established procedure for creating an enterprise or non-compliance of constituent documents with the requirements of the law and the recovery of income received in these cases;

b) on the recognition of transactions as invalid and the recovery of everything received from such transactions in the state revenue; (c) on the recovery of unjustifiably acquired not under a transaction, but as a result of other illegal actions;

11) ensure the correctness of the application of financial sanctions provided for by the legislation of the Russian Federation and the republics in its composition for violation of obligations to the budget, administrative fines for these violations committed by officials of enterprises, institutions, organizations and citizens, and the timeliness of collecting funds on them;

12) inspect, fix the content and seize documents from enterprises, institutions and organizations that testify to the concealment (understatement) of profit (income) or other objects from taxation.

13) receive documents from enterprises, institutions, organizations, financial authorities and banks, on the basis of which they maintain operational accounting records (for each payer and type of payment) of the amounts of taxes and other payments payable and actually received by the budget, as well as the amounts of financial sanctions and administrative fines;

14) suspend operations of enterprises, institutions, organizations and citizens on settlement and other accounts in banks and other financial and credit institutions in cases of non-submission (or refusal to submit) to state tax inspectorates and their officials accounting reports, balance sheets, calculations, declarations and other documents related to the calculation and payment of taxes and other obligatory payments to the budget.

3.4. Drafting budgets

The first stage of the budget process is the drafting of budgets, which is preceded by the development of forecasts for the socio-economic development of the Russian Federation, constituent entities of the Russian Federation, municipalities and sectors of the economy, as well as the preparation of consolidated financial balances, on the basis of which executive authorities develop draft budgets. Draft budgets are drawn up taking into account the need to achieve minimum state social standards based on the norms of financial costs for the provision of state or municipal services and other established standards.

The President of the Russian Federation, not later than March of the year preceding the next financial year, sends the Federal Assembly of the Russian Federation a Budget Message, in which he determines the budget policy of the next financial year.

Drawing up draft budgets is the exclusive prerogative of the Government of the Russian Federation, the relevant executive authorities of the constituent entities of the Russian Federation and local governments. The direct drafting of budgets is carried out by the Ministry of Finance of the Russian Federation, financial authorities of the constituent entities of the Russian Federation and municipalities.

To draw up draft budgets, information is required in accordance with the current tax legislation; on the expected volumes of financial assistance provided from the budgets of other levels of the budget system of the Russian Federation; on the types and volumes of expenditures transferred from one level of the budget system of the Russian Federation to another; on the standards of financial costs for the provision of state or municipal services.

The budget is based on the Budget Address of the President of the Russian Federation; forecast of socio-economic development of the relevant territory for the next financial year; plan for the development of the state or municipal sector of the economy of the relevant territory for the next financial year.

The long-term financial plan is formed simultaneously with the draft budget for the next financial year on the basis of a medium-term forecast of the socio-economic development of the Russian Federation, a constituent entity of the Russian Federation, a municipality, and contains data on the forecast possibilities of the budget for mobilizing revenues, attracting state or municipal borrowings and financing the main budget expenditures.

The long-term financial plan is developed for three years, of which the first year is the year for which the budget is drawn up; the next two years are the planning period during which the real results of the declared economic policy are monitored.

First of all, it is proposed to sharply strengthen the role and importance of medium-term financial planning. This must be done for several reasons.

First, lengthening the budget planning horizon is important for the purposes of macroeconomic, tax, and monetary policy. It is necessary to see the parameters of income, expenditure, budget deficit, which affect many conditions for the development of the economy.

Secondly, in the field of public finance it is impossible to set goals, objectives, and evaluate performance results if there is no at least a three-year perspective. With an annual planning horizon, any budget administrator thinks about one thing: how to master the allocated allocations and not lose, or even better, increase them next year. Medium-term financial planning is a necessary prerequisite for restructuring the budget sector and introducing results-based budget planning methods.

Third, medium-term financial planning improves the efficiency of spending administration. There is an opportunity to conclude long-term state (municipal) contracts, solve the problem of account balances, which is chronic for Russian budgets, by "exchanging" appropriations provided for different years of a three-year cycle, and increasing the uniformity of spending funds.

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. The balance of financial resources 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 and is the basis for drafting the budget. Previously, the long-term financial plan was of a reference and analytical nature and was not strictly linked to the draft budget. And only since last year, at the federal level, the integration of a long-term financial plan into a regular, regular budget process has begun, when the first year of a long-term financial plan is a draft budget for the next year, and the rest of the projects set predictable parameters of expenses and income for the next two years.

Based on the already existing experience of medium-term planning, at the federal level it is proposed to approve the federal budget for three years. It is in this legally approved format that all the benefits of the medium-term financial plan will be manifested to the maximum extent.

Subjects of the Russian Federation and municipalities are given the right to choose: they can remain in the annual planning, but then it is mandatory to approve a medium-term financial plan for three years, which is subject to much more detailed requirements. Not all subjects of the Russian Federation, let alone municipalities, are ready to switch to a three-year budget. This is a rather complex and responsible procedure, and it would be wrong to force authorities at other levels to implement it before the appropriate conditions are formed.

For the formation and approval of the federal budget for three years, it is proposed to use the "sliding three-year" method, widely known in international practice, in which previously approved projects are annually shifted forward by a year and become the basis of a new draft budget. The "rolling three-year period" ensures, on the one hand, the stability and predictability of budget projections and, on the other hand, the possibility of their response to a changing situation, the restructuring of obligations, and the implementation of new budget policy priorities.

It is proposed to build in this methodology the so-called conditionally approved expenses. This means that not all expenses of the second and third years of the forthcoming period are distributed by articles and main managers. By constantly shifting the planning horizon, moving on to a new three-year period, it is possible to create a reserve for reducing the total amount of expenses in the event of an unfavorable situation without significant damage to the budget and commitments already made.

Thus, the budget of the first year of the three-year budget is approved in the same way as today the budget law for the corresponding financial year is traditionally approved with all text articles. The budgets of the second and third years are approved by a separate annex to the law on the budget for the first year. And there is only one textual link to these applications. When the first year of the "budgetary three-year period" ends, a report is formed on it. Then the first year becomes the second year of the three-year plan and another one is added. This does not mean that nothing can be changed for the main manager in the process of implementing the budget of the first year. The latter has fairly broad powers. In particular, if for one reason or another he is unable to use the appropriations of the first year of the "three-year plan", he has leftovers and he forecasts them in advance. In this case, the main manager within the framework of the three-year budget can "exchange appropriations", i.e., use in the first year part of the appropriations provided for the second and third years, and postpone the use of the corresponding part of the appropriations of the first year to later dates. Obviously, when forming the budget for the next three years, these changes will be taken into account.

What happens to the "conditionally approved" expenditures of the second and third years of the "budget three-year period"? There are two options. The first. If everything is fine with the macroeconomic situation in the country, revenues and the monetary program allow spending these funds, they are directed to the implementation of the developed state policy priorities. Second. If an unfavorable situation occurs, the income turned out to be less than predicted, then these funds go to ensure those obligations that have already been approved for the second and third years.

An important innovation is to plan and execute different types of budget allocations differently.

It is one thing - obligations to the population, established directly by laws, which determine who and to what extent has the right to receive payments, primarily social, from the budget. These are public spending commitments. As part of the annual budget process, it is possible to predict with greater or lesser accuracy the number of recipients and provide for the amount of appropriations to fulfill these obligations, but they cannot be changed without amending the relevant laws. Moreover, if, for example, more unemployed applied for benefits than planned, the budget is in any case obliged to fulfill these obligations, otherwise they will simply flow through the mechanism of lawsuits into other, the same, and in some cases larger obligations. Thus, it is more rational to fulfill these obligations upon the fact of their occurrence or presentation, relying, of course, on an approximate estimate of budget allocations, but not doing this in the regime of limiting maximum volumes.

What happens if there are not enough funds to fulfill a public obligation? Let us recall the practice when the law on the budget suspended the norms that regulated spending obligations or limited their effect. Then came the decision of the Constitutional Court of the Russian Federation that the budget law cannot suspend the norms of other expenditure laws. Therefore, within the framework of the proposed amendments, two approaches to public obligations and obligations of a civil law nature are distinguished.

The budget law may under no circumstances suspend the operation of another law that establishes the public obligations of the state. If the mode of entry into force of such a law changes, then only by another law. If this is not done, it is subject to execution and it is necessary to seek funds for its implementation.

Existing public obligations are fulfilled in all cases, even if during the execution of the budget a situation arises when more allocations are required for its implementation than planned. Until such time as the Parliament passes the law on clarification of the budget, the executive branch is allowed to spend funds for these purposes in excess of the parameters previously established by the law on the budget.

Obligations of a civil law nature are of a completely different nature. If we have defined the powers and functions of a government body, institution, there is an obligation to spend from a legal point of view. But its volume is unknown. What amount of obligations can be accepted in the form of state municipal contracts or labor agreements? Installing it is just a task of the budget. When determining the limits of budgetary obligations, restrictions are introduced for the acceptance and execution of budgetary obligations.

Therefore, the "classic" cycle "list - estimate - limits - acceptance of obligations (conclusion of contracts) - authorization of their payment" is applicable not to all expenditure obligations, but only to obligations of this type. It is they that need to be reflected in the estimates of budgetary institutions, since only the corresponding head is administratively responsible for their implementation.

With regard to other expenditure obligations, the chief administrator does not act as a legal entity, but as a "representative" of the public entity, who is entrusted with the administration of certain obligations. You can not make claims, for example, to the conditional Ministry of Social Development about the fact that he does not have enough money to pay unemployment benefits, since the situation in the economy could change. But at the same time, if more people are hired by the ministry than allowed, contracts are concluded that exceed the limits or for the wrong purposes, then the minister, as the head of a budgetary institution, bears direct responsibility for this. The document that fixes this responsibility is the estimate of the institution.

There are a number of other types of budget commitments or types of budget appropriations. They are intermediate. On the one hand, they require limiting appropriations, on the other hand, for their implementation, as a rule, it is not necessary to adopt any additional documents. At this stage in the development of the budget system, it is proposed to single out only public obligations from the total array of expenditure obligations, while all other obligations are considered together for the time being. But the estimates of a budgetary institution (including a government agency) should include only those obligations that require the conclusion of labor agreements or state (municipal) contracts.

Performance budgeting is a form of performance-based budgeting. Programs, as a rule, are associated with making changes to the existing system, development, restructuring, and reforms. These are measures that, by definition, are temporary. They do not cover the entire sphere of activity of the authorities, most of which are built on a regular, permanent basis. But this does not mean at all that only programs should be described by quantitative results. The amendments propose extending to all appropriations for the provision of public (municipal) services, regardless of whether they are programs or not, results-based budgeting methods.

3.5. Consideration and approval of the federal budget

The draft federal law on the federal budget for the next financial year is submitted to the State Duma of the Russian Federation no later than August 26 of the current year, simultaneously with the preliminary results of the socio-economic development of the Russian Federation for the past period of the current year; forecast of the socio-economic development of the Russian Federation; main directions of budgetary and tax policy; plan for the development of the state and municipal sectors of the economy; forecast of the Consolidated Financial Balance for the territory of the Russian Federation; the forecast of the consolidated budget of the Russian Federation; projects of federal targeted programs and federal programs for the development of regions provided for financing from the federal budget; draft federal targeted investment program; a draft state armaments program; a draft program for the privatization of state and municipal enterprises; international treaties of the Russian Federation that have entered into force for the Russian Federation and contain its financial obligations for the next financial year, including non-ratified international treaties of the Russian Federation on state external borrowings and state loans; draft program of state external borrowings of the Russian Federation; a draft program for the provision by the Russian Federation of state loans to foreign states; draft structure of the state external and internal debt of the Russian Federation; calculations of the projected volume of the Stabilization Fund at the beginning and end of the next financial year, the projected volume of receipts to the Stabilization Fund and (or) the use of the Stabilization Fund in the next financial year.

Simultaneously with the draft federal law on the federal budget for the next financial year, the Government of the Russian Federation submits to the State Duma draft federal laws:

- on introducing amendments and additions to the legislative acts of the Russian Federation on taxes and fees;

- on the budgets of state off-budget funds of the Russian Federation;

- on introducing amendments and additions to the Federal Law "On the Budget Classification of the Russian Federation";

- on the rates of insurance contributions to state off-budget funds for the next financial year.

If the draft federal law on the federal budget for the next financial year and the draft federal law on the budget of the Pension Fund of the Russian Federation for the next financial year provide for indexation of the minimum wage and the minimum amount of state pensions, the Government of the Russian Federation simultaneously submits draft federal laws on raising the minimum pension , on the procedure for indexing and recalculating state pensions, on raising the minimum wage.

The State Duma considers the draft federal law on the federal budget for the next financial year in four readings (since January 1, 2008 - in three readings). At the same time, federal laws on amendments and additions to the legislative acts of the Russian Federation on the rates of insurance contributions to state non-budgetary funds for the next financial year must be adopted by the State Duma before the approval of the main characteristics of the federal budget in the first reading. Federal laws on the budgets of state non-budgetary funds, on the minimum pension, on the size of the tariff rate (salary) of the first category of the Unified tariff scale for remuneration of employees of organizations in the public sector, on the procedure for indexing and recalculating state pensions, on the minimum wage must be adopted by the State Duma before consideration in the second reading of the draft federal law on the federal budget.

In case of rejection (non-acceptance) by the State Duma of federal laws on amendments and additions to the tax legislation of the Russian Federation, as well as to the legislative acts of the Russian Federation on the rates of insurance contributions to state non-budgetary funds, before consideration in the first reading of the draft federal law on the federal budget, calculations for all indicators of the federal budget are carried out on the basis of the legislation of the Russian Federation. The main change in the procedure for considering the federal budget from January 1, 2008 is the unification of the second and third readings of the draft federal law on the budget (Table 3.3).

With the new approach to spending planning, there will no longer be such an explicit link between budget policy priorities and spending classification sections. In the second reading, when discussing how much money to allocate for a particular section, it refers to changes in appropriations for specific targeted items and types of expenditure.[24]

It is proposed to approve budget allocations for public obligations during the consideration of the draft federal budget in the first reading. At this stage of the budget process, their composition and volume have actually already been determined. If it is necessary to change the composition or volume of public obligations, it is necessary to amend the relevant legislative acts even before the start of the budget process. And within the framework of consideration of the draft federal budget, one can only verify the validity of the presented calculations for their execution. Approval of appropriations for public obligations in the first reading of the draft budget will allow for a more careful consideration in the second reading of all other expenditure obligations, which just require political assessments.

3.6. Budget execution in the Russian Federation

The execution of the budget begins after its approval by the legislative (representative) authorities. This stage of the budget process sets the task of fulfilling the revenue and expenditure parts of the budgets of all levels.

In the process of budget execution, executive authorities may make changes within the approved appropriations under the items of the functional classification of expenditures of the budget classification of the Russian Federation for each direction of spending. The most important tasks of budget execution:[25]

- ensuring the full and timely receipt of taxes and other payments, as well as income in general and for each source;

- financing of activities within the limits of the amounts approved under the budget during the financial year for which the budget is approved;

- the correct and economically justified distribution of all types of payments and appropriations of the approved budget, carried out according to the budget list of income and expenses.

budget painting - a document that is compiled by the chief manager of budgetary funds for managers and recipients of budgetary funds on the basis of the approved budget in accordance with the functional and economic classifications of expenditures of budgets of the Russian Federation with a quarterly breakdown and submitted to the executive authority responsible for budgeting, within 10 days from the date of budget approval.

The Budget Code of the Russian Federation defines the principles of budget execution in modern conditions.

1. Financing is carried out from a single account of the budget (all funds of budget recipients (managers of budget allocations directly making payments for goods delivered, work performed, services rendered) are on a single account) - the principle of unity of the cash desk, which involves the merging of settlement accounts of budget recipients into a single budget account from which settlements with suppliers of goods and services are carried out. Thanks to this principle, the following positive changes are achieved:

- there is an opportunity for preliminary and ongoing control over the targeted expenditure of funds. Preliminary control is control over the preparation of estimates of income and expenses of a budgetary institution. Current control of expenses is carried out through the procedure for confirming payment obligations;

- the passage of funds through settlement accounts is minimized due to the absence of operations for the movement of funds between the settlement accounts of budgetary institutions and the treasury body;

- there is a possibility of redistribution of funds. This makes it possible to take into account balances on settlement accounts in planning and current financing, redistribute and use them to finance current expenses.

2. The execution of the budget for expenditures is carried out using personal accounts of budgetary funds opened on a single accounting register of the treasury for each main manager, manager and recipient of budget funds. The personal account reflects the budgetary funds that the owner of the personal account is entitled to dispose of.

3. Planning and execution of the budget are carried out in the context of the detailed budget classification of the Russian Federation - the principle of budget transparency. To establish proper control over budget execution, it is necessary to strictly adhere to the budget classification at the stage of preparation and adoption of financing orders.

4. Acceptance by budgetary institutions of monetary obligations for the implementation of expenses and payments is possible only within the limits of budgetary obligations brought to them. The Budget Code of the Russian Federation introduces the concept of a budget obligation and a limit of budget obligations.

Budget Commitment - recognized by the body executing the budget, the obligation to spend the funds of the relevant budget within a certain period, arising in accordance with the law on the budget and with a consolidated budget breakdown.

Limit of budget commitments - the volume of budgetary obligations, determined and approved for the manager and recipient of budgetary funds by the body executing the budget, for a period not exceeding three months.

Limits on budget commitments tighten control over financing, commensurating it with real budget revenues. There are two options: maintaining monthly limits or maintaining quarterly limits. Monthly limits are compiled on a monthly basis and limit the amount of budgetary funds that must be spent within one month. The volume of quarterly limits of budgetary obligations should not exceed the budget allocations for the corresponding quarter.

5. Registration of contracts, holding tenders for the purpose of purchasing goods, works or services for the needs of budgetary institutions. The treasury execution of the budget allows to significantly improve the quality of expenditure planning due to the balances of funds on the personal accounts of managers and recipients of budget funds in the context of budget classification and by the terms of unused funds in the accounts. By authorizing contracts, the treasury body, together with the financial body, can carry out optimal planning of expenses over time, reduce the amount of financing for those items for which account balances regularly remain.

Participants in the process of budget execution are the main manager, manager, recipient of budgetary funds, budgetary institutions, as well as financial and banking institutions.

Chief manager of budgetary funds of the federal budget body of state power of the Russian Federation, which has the right to distribute federal budget funds among subordinate administrators and recipients of budgetary funds, determined by the departmental classification of federal budget expenditures. He draws up a budget list, distributes the limits of budget obligations to subordinate managers and recipients of budget funds. Ministries are the main administrators of budgetary funds. The chief administrator acts in court on behalf of the treasury of the Russian Federation: on claims for compensation for harm caused by illegal decisions and actions (inaction) of the relevant officials and bodies, by departmental affiliation; on claims of subordinate administrators and recipients of federal budget funds, presented in the form of subsidiary liability. Payment of funds under writ of execution is carried out at the expense of the treasury of the Russian Federation from the federal budget funds allocated by the main manager of funds.

Manager of budgetary funds - body of state power or local self-government, which has the right to distribute budgetary funds to subordinate recipients.

State-financed organization - an organization created by state authorities of the Russian Federation, constituent entities of the Russian Federation or local governments to carry out managerial, socio-cultural, scientific, technical or other functions of a non-commercial nature, the activities of which are financed from the relevant budget on the basis of an estimate of income and expenses.

Recipient of budgetary funds - a budgetary or other institution that has the right to receive budget funds in accordance with the budget schedule for the corresponding year. The recipient of budget funds is the last link in the chain of administrators of budget expenditures; this is the organization that has the right, on behalf of the state or local governments, to accept budget obligations and fulfill them in accordance with the established limits. In fact, these are only state or municipal (budgetary) institutions, including authorities, which, as legal entities, act as budgetary institutions.

Drawing such a boundary opens up opportunities for restructuring the budgetary network. There is no need to expand the list of recipients of budgetary funds, for example, by including organizations of new organizational and legal forms that provide state (municipal) services. Such organizations will receive budgetary funds in the form of subsidies or within the framework of state (municipal) contracts, but this does not mean that they are vested with budgetary powers and, for example, must provide budgetary reporting.

One innovation that has yet to be developed is the introduction of internal financial controls or audits. As the rights and responsibilities of the main managers increase, each main manager or even each large budgetary institution should have a specialized unit reporting directly to the head, which would develop internal standards and procedures for planning, reporting and monitoring the achievement of results and, most importantly, would monitor compliance with these procedures. It should be some kind of "internal" think-tank or advisory center. And external control should be gradually reoriented to checking whether there are such units, how they work, how effective their activities are.

The budget process ends with the preparation and review of performance reports. More precisely, it should come to an end, because at the present time this cycle has been broken at the federal level. Thus, the report on the execution of the federal budget for 2004 was considered by the Duma in March-April 2006, when its relevance was already lost. Meanwhile, budget reporting contains a huge array of extremely valuable information for budget planning. The generation of such information, along with the actual control over the execution of the budget, is the main goal of budget reporting, which is needed primarily for making managerial decisions in the next budget cycle.

The draft law proposes two steps towards strengthening the role of reporting and control bodies.

The first step is for an external audit to be carried out on the main budget managers. For example, in relation to the main managers of the federal budget, it can begin in April, without waiting for the official formation of full reporting. Reports of the main managers, the conclusions on them of the Accounts Chamber of the Russian Federation must exist in the form of independent documents that will be considered by the Government of the Russian Federation, submitted to the State Duma, etc. An external audit of the budget reporting of each main manager is a necessary condition for increasing their responsibility for both financial and and non-financial results of its activities. “Immersion” of such reports into the general report, for which either the Ministry of Finance of the Russian Federation or the government as a whole is in any case responsible, greatly weakens this responsibility.

The second step is to present an external opinion on the budget execution report at the same time as the report to the legislature. This means that this opinion should start to be developed earlier and, accordingly, this report will need to be officially submitted to the Accounts Chamber earlier. The current deadlines, when a report is first submitted in August, and then an external opinion is drawn up on it for four to five months, does not allow "closing" the budget cycle.

3.7. State financial control

State financial control in the Russian Federation is a set of actions and operations to monitor compliance with legislative and regulatory legal acts, norms, standards and rules for the use of public funds. Financial control is cost control, therefore it takes place in all spheres of social reproduction and accompanies the entire process of movement of funds, including the stage of assessing financial results (efficiency). Thus, the object of financial control is monetary relations. Financial control serves as a form of implementation of the control function of management; it is designed to ensure the interests and rights of both the state and all other economic entities.[26]

The financial security of the state should be ensured by a system of state control bodies that have a concept of development and are headed by the supreme body of state control.

The system of state financial control in the Russian Federation is being built in accordance with the requirements of the Lima Declaration of Guiding Principles of Financial Control, adopted by the IX Congress of the International Organization of Supreme Audit Institutions in 1977. Since then, it has undergone only minor changes, the last of which were made in 1998 and 2004 The Declaration does not have the status of "binding" for the members of this organization, however, it is assumed that all of them are guided by its provisions in their work.

The Lima Declaration aims to ensure maximum independence of the control bodies. At the same time, not only recipients of federal budget funds, but also state authorities at all levels, state and municipal extra-budgetary funds and unitary enterprises, as well as enterprises and organizations of all types of ownership that have benefits or receive financial support from budgets or extra-budgetary funds are recognized as objects of control. In France, any authority, any body representing the interests of the state, is subordinate or accountable to a certain minister or prime minister. Unlike the Russian Federation, there are no state committees or federal services here.

The activities of each minister are supervised by a representative of the budget department of the Ministry of Finance, who oversees the implementation of relevant regulations governing the expenditure of public funds.

There are three types of control in France:

- control exercised by ministers within their powers. Such control is carried out by ministerial inspectorates:

- follow-up control carried out by the Accounts Chamber;

- interdepartmental control, carried out by interdepartmental inspections.

State financial control contributes to the implementation of the financial policy of the state, the creation of conditions for the effective use of budgetary funds. First of all, it provides for control over the preparation, consideration, approval and execution of budgets at all levels and extrabudgetary funds, the financial activities of enterprises and institutions, banks and other financial intermediaries, as well as financial corporations.

Today in the Russian Federation there are 66 various kinds of federal control bodies of various departmental subordination, which have their own territorial divisions in the constituent entities of the Russian Federation; in addition, the constituent entities of the Russian Federation create their own regulatory bodies, which work mostly independently, without coordination, without systematic verification of their activities.

In the Russian Federation there is presidential, parliamentary, governmental, prosecutorial and independent (audit) control. The purpose of presidential control is determined by the constitutional status of the President of the Russian Federation. According to Art. 80 of the Constitution of the Russian Federation The President of the Russian Federation is the head of state. The President of the Russian Federation is the guarantor of the Constitution, the rights and freedoms of man and citizen, he determines the main directions of the domestic and foreign policy of the state. Presidential control covers the following objects: federal executive authorities, executive authorities of constituent entities of the Russian Federation, their officials, as well as organizations. The subjects of presidential control are: the implementation of specific decrees, laws, federal programs, the activities of ministries and departments to implement decrees of the President of the Russian Federation, federal programs, state concepts, as well as directive documents of the Government of the Russian Federation.

The first is the highest level of presidential control, which is represented by the Main Control Directorate of the President of the Russian Federation, the State Military Inspectorate of the President of the Russian Federation and the Security Council. The second level is the district level, represented by authorized representatives of the President of the Russian Federation, the third is regional, represented by federal inspectors.

Decree of the President of the Russian Federation of March 16, 1996 No. 383 "On the Main Control Directorate of the President of the Russian Federation" approved the Regulations "On the Main Control Directorate of the President of the Russian Federation". The main functions of the GCU are:

- control and verification of the implementation by federal executive authorities, executive authorities of the constituent entities of the Russian Federation, their officials, as well as organizations of federal laws, decrees and orders of the President of the Russian Federation;

- control and verification of the execution of instructions of the President of the Russian Federation.

The activities of the Accounts Chamber of the Russian Federation are regulated by the Federal Law of May 11, 1995 No. 4-FZ "On the Accounts Chamber of the Russian Federation". The Accounts Chamber of the Russian Federation is a permanent body of independent parliamentary control. The main task of the chamber is to organize and exercise control over the timely execution of income and expenditure items of the federal budget and the budgets of federal extra-budgetary funds.

Auditors of the Accounts Chamber of the Russian Federation supervise certain areas of its activities, covering a group or set of a number of revenue or expenditure items of the federal budget.

The control powers of the Accounts Chamber apply to all state bodies and institutions, as well as to local governments, enterprises, organizations, banks, insurance companies, regardless of types and forms of ownership, if they receive, transfer, use funds from the federal budget or use federal property or manage it.

The Accounts Chamber of the Russian Federation has the right to issue binding instructions to the administrations of the audited entities. In case of repeated failure to comply with the instructions, the chamber, in agreement with the State Duma, may decide to suspend all types of financial, payment and settlement operations on the accounts of violators.

The Prosecutor's Office of the Russian Federation also performs the function of one of the elements of the system of "checks and balances". On behalf of the Russian Federation, the Prosecutor General's Office supervises the implementation of existing laws, establishes and takes actions to eliminate any offenses. The Prosecutor General's Office of the Russian Federation is a single federal centralized system of bodies subordinate to the Prosecutor General of the Russian Federation. If necessary, the prosecutor can use his powers to "control the controllers", he not only has the right to demand that the control bodies conduct inspections, but also, in case of abuse, stop them.

The links between the institutions that mediate these types of control are very weak. This means that there is no system of financial and economic control as such. For example, by the decree of the Central Control Commission and the Council of People's Commissars of the USSR of April 25, 1928 "On Measures to Eliminate Multiplicity, Inconsistency and Parallelism in the Control and Investigation Work of State Bodies," all controlling organizations were charged with the obligation to coordinate inspection plans with the bodies of the Control Commission of the Workers' and Peasants' Inspection who were required to have consolidated annual plans for all inspections and monitor their strict implementation.

The large number of regulatory bodies does not ensure the reduction of offenses, and the bodies themselves have limited ability to influence offenders.

Financial control by the state over the non-state sphere of the economy concerns only the fulfillment of monetary obligations to the state, including the payment of taxes and other obligatory payments, compliance with the law and expediency when spending budget allocations and using loans, compliance with the rules established by the government for organizing cash payments, accounting and reporting .

The direct subject of financial control are all cost indicators. The sphere of financial control includes almost all operations performed with the use of money. Financial control contributes to:[27]

- balance between the need for financial resources and the amount of funds;

- ensuring the timeliness and completeness of the fulfillment of financial obligations to the state budget;

- identification of internal reserves and opportunities for growth of financial resources;

- validity of drawing up and execution of the budget plan (budget control);

- efficient use of labor, material and financial resources of state enterprises and organizations, budgetary institutions;

- maximum mobilization of revenues to the budgets of all levels (tax control).

Topic 4. BUDGET INCOME

4.1. General characteristics of budget revenues

Budget revenues are formed in accordance with the budget and tax legislation of the Russian Federation.

In budget revenues, revenues credited to the budgets of other levels of the budget system of the Russian Federation for targeted financing of centralized activities, as well as gratuitous transfers, can be partially centralized. In the composition of budget revenues, the revenues of target budget funds are taken into account separately.

Tax revenues include federal, regional and local taxes and fees provided for by the tax legislation of the Russian Federation, as well as penalties and fines. The amount of tax credits granted, deferrals and installment plans for the payment of taxes and other obligatory payments to the budget is fully taken into account in the income of the corresponding budget.

Non-tax income includes:

- income from the use of state or municipal property after payment of taxes and fees provided for by the legislation on taxes and fees;

- income from paid services provided by budgetary institutions under the jurisdiction of federal executive authorities, executive authorities of constituent entities of the Russian Federation, local governments, respectively, after payment of taxes and fees provided for by the legislation on taxes and fees;

- funds received as a result of the application of measures of civil, administrative and criminal liability, including fines, confiscations, compensations, as well as funds received in compensation for harm caused to the Russian Federation, constituent entities of the Russian Federation, municipalities, and other amounts of forced withdrawal ;

- other non-tax income.

Non-refundable and non-refundable transfers include transfers in the form of:

- financial assistance from the budgets of other levels in the form of grants and subsidies;

- subventions from the Federal Compensation Fund and (or) from regional compensation funds;

- subventions from local budgets to budgets of other levels;

- other gratuitous and irrevocable transfers between the budgets of the budgetary system of the Russian Federation;

- gratuitous and irrevocable transfers from the budgets of state and (or) territorial state non-budgetary funds;

- gratuitous and irrevocable transfers from individuals and legal entities, international organizations and foreign governments, including voluntary donations.

Budget revenues include:

- funds received in the form of rent or other payment for the temporary possession and use or temporary use of property in state or municipal ownership;

- funds received in the form of interest on balances of budgetary funds in accounts with credit institutions;

- funds received from the transfer of property, which is in state or municipal ownership, on bail, in trust management;

- payment for the use of budgetary funds provided to other budgets, foreign states or legal entities on a returnable and paid basis;

- income in the form of profit attributable to shares in the authorized (share) capital of economic partnerships and companies, or dividends on shares owned by the Russian Federation, constituent entities of the Russian Federation or municipalities;

- part of the profits of state and municipal unitary enterprises remaining after paying taxes and other obligatory payments;

- other incomes provided for by the legislation of the Russian Federation from the use of property that is in state or municipal ownership.

The above revenues from the use of state or municipal property are included in the revenues of the relevant budgets after payment of taxes and fees provided for by the legislation on taxes and fees.

Incomes of a budget institution received from entrepreneurial and other income-generating activities, after payment of taxes and fees provided for by the legislation on taxes and fees, are fully taken into account in the estimate of income and expenses of a budgetary institution and are reflected in the income of the relevant budget as income from the use of property, located in state or municipal ownership, or as income from the provision of paid services.

Funds received from the sale of state and municipal property shall be credited to the relevant budgets in full.

Own budget revenues include:

- tax revenues credited to the budgets in accordance with the budgetary legislation of the Russian Federation and the legislation on taxes and fees;

- non-tax revenues credited to the budgets in accordance with the legislation of the Russian Federation;

- income received by budgets in the form of gratuitous and irrevocable transfers, with the exception of subventions from the Federal Compensation Fund and (or) regional compensation funds.

The revenues of the federal and regional budgets are proportionally dependent on the dynamics of the socio-economic development of Russia as a whole and the regions. An assessment of the socio-economic development of the federal districts in 2005 shows that each of them has disadvantaged regions. The Siberian, Far Eastern and Southern federal districts are in the worst position.

A comprehensive assessment of the dynamics of development of the subjects of the Russian Federation that are part of the Central Federal District allows us to conclude that there is some stabilization of the socio-economic situation in them. At the same time, several regions of this district lag behind in terms of socio-economic development.

According to such indicators as the volume of investments in fixed assets, the volume of the average per capita foreign trade turnover, the average per capita financial security of the region, the share of employment in small enterprises, the ratio of average per capita income to the subsistence level, the share of the population with incomes below the subsistence level and the share of average per capita retail trade, disadvantaged in the Central federal district are Bryansk, Vladimir, Voronezh, Ivanovo, Kursk, Oryol, Smolensk and Tambov regions. In the Ryazan, Tver, Tula and Yaroslavl regions in recent years there has been an improvement in the main socio-economic indicators.

When assessing the socio-economic development of the Northwestern Federal District, one can conclude that the situation has improved. At the same time, indicators of the development of social infrastructure sectors have deteriorated and the volume of investment in fixed capital per capita has decreased.

The Arkhangelsk and Pskov regions are among the unfavorable regions, in which the indicators of registered unemployment and the development of social infrastructure sectors remain practically unchanged, and in terms of the share of the population with incomes below the subsistence level, the level of total retail turnover and paid services per capita, the indicators have improved.

In the Southern Federal District, the disadvantaged group includes the Republic of Adygea, the Republic of Dagestan, the Republic of Ingushetia, the Karachay-Cherkess Republic and the Volgograd Region. Low values ​​of such indicators as the gross regional product per capita, the volume of foreign trade turnover per capita, the level of financial security of the region per capita, the total volume of retail trade and paid services per capita, fixed assets per capita and the development of social infrastructure sectors, form the basis of the backwardness of these subjects of the Russian Federation. In the Volga Federal District, there is a trend towards stabilization of socio-economic development, although almost all indicators of this region are below the average for Russia. The Komi-Permyatsky Autonomous Okrug, Penza, Kirov and Ulyanovsk regions, the Chuvash Republic, the Republic of Mordovia and the Republic of Mari El belong to the disadvantaged ones. The improvement of the socio-economic situation is typical for the Republic of Bashkortostan, the Republic of Tatarstan, Nizhny Novgorod, Samara and Saratov regions.

The largest deviation from the average level in Russia is observed in relation to the gross regional product per capita, the financial security of the region per capita, the share of the population with incomes below the subsistence level, the total retail turnover of paid services per capita, the availability of fixed assets per capita and the coefficient road density.

In the Siberian Federal District, disadvantaged regions include the Republic of Altai, the Republic of Buryatia, the Republic of Tyva, the Chita Region, the Aginsky Buryat Autonomous District, the Taimyr (Dolgano-Nenetsky) Autonomous District, the Ust-Ordynsky Buryat Autonomous District, and the Evenk Autonomous District.

In each federal district there are regions belonging to the lagging group. Together, they make up almost half of all subjects of the Russian Federation. The vast majority of these regions are border regions. This situation was the result of uneven adaptation of the regions to new market conditions and a significant reduction in the volume of state support. The remaining disproportion in the socio-economic development of the regions is a significant factor in the weakening of the system of federal relations in the Russian Federation, its socio-economic development and the reduction of opportunities to overcome the internal crisis.

In 2001, the Federal Target Program "Reducing the differences in the socio-economic development of the regions of the Russian Federation (2002-2010 and up to 2015)" was adopted, approved by Decree of the Government of the Russian Federation of October 11, 2001 No. 717. The main objectives of the Program are to reduce differences in the level of socio-economic development of the regions of the Russian Federation, reducing the gap in the main indicators of socio-economic development between the most developed and lagging regions by 2010 by one and a half times, and by 2015 - by two times. Financing of measures aimed at solving these problems is supposed to be carried out at the expense of the Regional Development Fund, the budgets of the constituent entities of the Russian Federation, credit resources, and foreign investments.

4.2. Federal budget revenues

The federal budget receives tax revenues from the following federal taxes and fees, taxes provided for by special tax regimes:

- tax on profit of organizations at the rate established for crediting the said tax to the federal budget;

- corporate income tax (in terms of income of foreign organizations not related to activities in the Russian Federation through a permanent establishment, as well as in terms of income received in the form of dividends and interest on state and municipal securities) - according to the standard of 100%;

- tax on profits of organizations in the performance of production sharing agreements concluded before the entry into force of the Federal Law of December 30, 1995 No. 225-FZ "On Production Sharing Agreements" and which do not provide for special tax rates for crediting the specified tax to the federal budget and budgets of subjects of the Russian Federation;

- value added tax;

- excises on ethyl alcohol from food raw materials;

- excises on ethyl alcohol from all types of raw materials, with the exception of food;

- excises on alcohol-containing products;

- excises on tobacco products;

- excise taxes on motor gasoline, straight-run gasoline, diesel fuel, motor oils for diesel and carburetor (injection) engines - according to the standard of 40%;

- excises on cars and motorcycles;

- excises on excisable goods and products imported into the territory of the Russian Federation;

- tax on the extraction of minerals in the form of hydrocarbon raw materials (combustible natural gas);

- tax on the extraction of minerals in the form of hydrocarbon raw materials (with the exception of combustible natural gas);

- tax on the extraction of minerals (with the exception of minerals in the form of hydrocarbon raw materials and common minerals);

- tax on the extraction of minerals on the continental shelf of the Russian Federation, in the exclusive economic zone of the Russian Federation, outside the territory of the Russian Federation;

- regular payments for the extraction of minerals (royalties) when fulfilling production sharing agreements in the form of hydrocarbon raw materials (combustible natural gas);

- regular payments for the extraction of minerals (royalties) when fulfilling production sharing agreements in the form of hydrocarbon raw materials (with the exception of combustible natural gas);

- regular payments for the extraction of minerals (royalties) on the continental shelf, in the exclusive economic zone of the Russian Federation, outside the territory of the Russian Federation when performing production sharing agreements;

- fee for the use of objects of aquatic biological resources (excluding inland water bodies);

- fee for the use of objects of aquatic biological resources (for inland water bodies);

- water tax;

- unified social tax at the rate established by the Tax Code of the Russian Federation in the part credited to the federal budget;

- state duty (with the exception of the state duty payable to the budgets of the constituent entities of the Russian Federation and local budgets).

Non-tax revenues of the federal budget are formed from:

- income from the use of state-owned property, income from paid services provided by budgetary institutions under the jurisdiction of state authorities of the Russian Federation - after paying taxes and fees provided for by tax legislation, in full;

- part of the profit of unitary enterprises established by the Russian Federation, remaining after the payment of taxes and other obligatory payments;

- other license fees;

- customs duties and customs fees;

- payments for the use of the forest fund in terms of the minimum rates of payment for standing timber;

- payments for the transfer of forest lands to non-forest lands and the transfer of forest fund lands to lands of other categories;

- fees for the use of water bodies;

- fees for the use of aquatic biological resources under intergovernmental agreements;

- payments for negative impact on the environment;

- consular fees;

- patent fees;

- payments for providing information on registered rights to real estate and transactions with it.

The federal budget also includes:

- profit of the Bank of Russia remaining after paying taxes and other obligatory payments - according to the standards established by federal laws;

- income from foreign economic activity.

Incomes of federal target budget funds are taken into account separately in federal budget revenues at the rates established by the tax legislation of the Russian Federation, and are distributed between federal target budget funds and territorial target budget funds according to the standards determined by the federal law on the federal budget for the next financial year.

4.3. Revenues of the budgets of the constituent entities of the Russian Federation

Tax revenues from the following regional taxes are subject to transfer to the budgets of the constituent entities of the Russian Federation:

- corporate property tax;

- gambling business tax;

- transport tax.

The budgets of the constituent entities of the Russian Federation are subject to tax revenues from the following federal taxes and fees, including taxes provided for by special tax regimes:

- corporate income tax at the rate established for crediting the specified tax to the budgets of the constituent entities of the Russian Federation - according to the standard of 100%;

- tax on profits of organizations in the performance of production sharing agreements concluded before the entry into force of the Federal Law "On Production Sharing Agreements" and which do not provide for special tax rates for crediting the specified tax to the federal budget and the budgets of the constituent entities of the Russian Federation - according to the standard of 80%;

- personal income tax - according to the standard of 70%;

- excises on ethyl alcohol from food raw materials - according to the standard of 50%;

- excise taxes on alcohol-containing products - according to the standard of 50%;

- excise taxes on motor gasoline, straight-run gasoline, diesel fuel, motor oils for diesel and carburetor (injection) engines - according to the standard of 60%;

- excise taxes on alcoholic products - according to the standard of 100%;

- excises on beer - according to the standard 100%;

- tax on the extraction of minerals in the form of hydrocarbon raw materials (with the exception of combustible natural gas) - according to the standard of 5%;

- tax on the extraction of common minerals - according to the standard of 100%;

- tax on the extraction of minerals (with the exception of minerals in the form of hydrocarbon raw materials, natural diamonds and common minerals) - at a rate of 60%;

- tax on the extraction of minerals in the form of natural diamonds - according to the standard of 100%;

- regular payments for the extraction of minerals (royalties) when fulfilling production sharing agreements in the form of hydrocarbon raw materials (with the exception of combustible natural gas) - at a rate of 5%;

- fee for the use of objects of aquatic biological resources (excluding inland water bodies) - according to the standard of 30%;

- fee for the use of objects of the animal world - according to the standard of 100%;

- tax levied in connection with the application of the simplified taxation system - according to the standard of 90%;

- tax levied in the form of the cost of a patent in connection with the use of a simplified taxation system - according to the standard of 90%;

- unified agricultural tax - according to the standard of 30%;

- state duty (to be credited at the place of state registration, legally significant actions or issuance of documents) - according to the standard of 100%:

- in cases considered by the constitutional (charter) courts of the relevant subjects of the Russian Federation;

- for the performance of notarial acts by notaries of state notary offices and (or) officials of executive authorities authorized in accordance with the legislative acts of the Russian Federation and (or) legislative acts of the constituent entities of the Russian Federation to perform notarial acts;

- for the state registration of interregional, regional and local public associations, branches of public associations, as well as for the state registration of changes in their constituent documents;

- for state registration of regional branches of political parties;

- for the registration of mass media, the products of which are intended for distribution mainly on the territory of a constituent entity of the Russian Federation, as well as for the issuance of a duplicate certificate of such registration;

- for the actions of the authorized bodies related to the licensing of the procurement, processing and sale of non-ferrous scrap, with the licensing of the procurement, processing and sale of ferrous scrap.

Crediting to the budgets of the constituent entities of the Russian Federation of tax revenues from excises on alcoholic products with an ethyl alcohol volume fraction of more than 9 to 25% inclusive (excluding wines) and alcoholic products with an ethyl alcohol volume fraction of more than 25% (excluding wines) produced in the territory of the Russian Federation , is carried out according to the following standards:

- 20% of the said income is credited to the budget of the constituent entity of the Russian Federation at the place of production of alcoholic beverages;

- 80% of these revenues are distributed among the budgets of the subjects of the Russian Federation in accordance with the standards approved by the federal law on the federal budget.

Transfer to the budgets of the constituent entities of the Russian Federation of tax revenues from the payment of excises on automobile and straight-run gasoline, diesel fuel, motor oils for diesel and (or) carburetor (injector) engines in accordance with the standard specified above, is carried out in the manner established by the federal law on the federal budget for the next financial year and planning period.

The budgets of the constituent entities of the Russian Federation - the cities of federal significance of Moscow and St. Petersburg shall be credited with tax revenues from federal taxes and fees, taxes provided for by special tax regimes, subject, in accordance with the RF BC, to be credited to the local budgets and budgets of the constituent entities of the Russian Federation. Tax revenues from regional taxes established by the state authorities of the krai (oblast), which includes the autonomous okrug, are subject to transfer to the budget of the krai (oblast). Tax revenues from regional taxes established by the state authorities of the Autonomous Okrug shall be credited to the budget of the Autonomous Okrug.

Non-tax revenues of the budgets of the constituent entities of the Russian Federation are formed, among other things, at the expense of:

- part of the profit of unitary enterprises established by the constituent entities of the Russian Federation, remaining after paying taxes and other obligatory payments to the budget, - in the amounts established by the laws of the constituent entities of the Russian Federation;

- payments for negative impact on the environment;

- payments for the use of the forest fund in the part exceeding the minimum rates of payment for standing timber;

- fees for the issuance of licenses for the implementation of activities related to the production and circulation of ethyl alcohol, alcoholic and alcohol-containing products, issued by the executive authorities of the constituent entities of the Russian Federation.

The budgets of the constituent entities of the Russian Federation - the federal cities of Moscow and St. Petersburg are subject to transfer of 80% of the payment for the negative impact on the environment.

The law of a constituent entity of the Russian Federation (with the exception of the law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation for the next financial year or another law of a constituent entity of the Russian Federation for a limited period of validity) may establish:

- uniform for all settlements of a constituent entity of the Russian Federation, standards for deductions to the budgets of settlements from certain federal and (or) regional taxes and fees, taxes provided for by special tax regimes, subject to crediting in accordance with the RF Budget Code and legislation on taxes and fees to the budget of a constituent entity of the Russian Federation;

- standards for deductions to the budgets of municipal districts from individual federal and (or) regional taxes and fees, taxes provided for by special tax regimes, which are to be credited in accordance with the legislation of the Russian Federation, uniform for all municipal districts of a constituent entity of the Russian Federation.

The standards for deductions to the budgets of urban districts from certain federal and (or) regional taxes and fees, taxes provided for by special tax regimes, subject to crediting in accordance with the legislation of the Russian Federation, are established as the sum of the standards established for settlements and municipal districts of the corresponding subject of the Russian Federation.

The law of a constituent entity of the Russian Federation (with the exception of the law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation or another law of a constituent entity of the Russian Federation for a limited period of validity) may establish:[28]

- uniform for all settlements of a constituent entity of the Russian Federation, standards for deductions to the budgets of settlements from certain federal and (or) regional taxes and fees, taxes provided for by special tax regimes, subject to crediting in accordance with the RF Budget Code and legislation on taxes and fees to the budget of a constituent entity of the Russian Federation;

- uniform for all municipal districts of a constituent entity of the Russian Federation, standards for deductions to the budgets of municipal districts from certain federal and (or) regional taxes and fees, taxes provided for by special tax regimes to be credited in accordance with the RF BC and legislation on taxes and fees to the budget of a constituent entity of the Russian Federation .

The rates for deductions to the budgets of urban districts from certain federal and (or) regional taxes and fees, taxes provided for by special tax regimes, subject to transfer in accordance with the RF BC and legislation on taxes and fees to the budget of a constituent entity of the Russian Federation, are established as the sum of the standards established for settlements and municipal districts of the corresponding subject of the Russian Federation.

The law of a constituent entity of the Russian Federation on the budget of a constituent entity of the Russian Federation may establish additional standards for deductions to local budgets from personal income tax, subject to crediting in accordance with the Budget Code of the Russian Federation to the budget of a constituent entity of the Russian Federation.

By the law of a subject of the Russian Federation, representative bodies of municipal districts may be vested with the powers of state authorities of subjects of the Russian Federation to establish additional standards for deductions from personal income tax to be credited to the budget of a subject of the Russian Federation, to the budgets of settlements that are part of the corresponding municipal districts.

State authorities of a constituent entity of the Russian Federation are obliged to establish, in the manner prescribed by the RF BC, uniform and (or) additional standards for deductions to local budgets from personal income tax, based on the transfer to local budgets of at least 10% of tax revenues of the consolidated budget of a constituent entity of the Russian Federation from the specified tax.

In the subjects of the Russian Federation - the cities of federal significance Moscow and St. Petersburg, the procedure for establishing and the value of the norms for deductions from federal and regional taxes and fees, taxes provided for by special tax regimes, to the budgets of intra-city municipalities are determined by the laws of these subjects of the Russian Federation.

The legislation of the constituent entity of the Russian Federation on taxes and fees introduces regional taxes, establishes tax rates and provides tax incentives for regional taxes in accordance with the legislation of the Russian Federation on taxes and fees.

Laws of a constituent entity of the Russian Federation on amendments to the legislation of a constituent entity of the Russian Federation on taxes and fees, laws of a constituent entity of the Russian Federation regulating budgetary legal relations, leading to a change in the revenues of the budgets of the budgetary system of the Russian Federation, which come into force in the next financial year (next financial year and planning period), must be adopted before the submission of the draft law of the constituent entity of the Russian Federation on the budget for the next financial year (next financial year and planning period) to the legislative (representative) body of state power of the constituent entity of the Russian Federation within the time limits established by the law of the constituent entity of the Russian Federation.

Amendments to the legislation of constituent entities of the Russian Federation on taxes and fees, which imply their entry into force during the current financial year, are allowed only if appropriate amendments are made to the laws of constituent entities of the Russian Federation on the budget for the current financial year (current financial year and planning period).

4.4. Local budget revenues

The budgets of settlements include:

1) tax revenues from the following local taxes established by the representative bodies of settlements in accordance with the legislation of the Russian Federation on taxes and fees:

- land tax;

- personal property tax;

2) tax revenues from the following federal taxes and fees, taxes provided for by special tax regimes:

- personal income tax;

- unified agricultural tax.

3) tax revenues from federal, regional and (or) local taxes and fees, taxes provided for by special tax regimes, according to the rates of deductions established by the representative bodies of municipal districts in accordance with Art. 63 BC RF.

The following shall be credited to the budgets of municipal districts:

1) tax revenues from the following local taxes established by the representative bodies of municipal districts in accordance with the legislation of the Russian Federation on taxes and fees:

- land tax levied in inter-settlement territories;

- tax on the property of individuals, levied in inter-settlement territories.

2) tax revenues from the following federal taxes and fees, including taxes provided for by special tax regimes:

- personal income tax - according to the standard of 20%;

- personal income tax levied in inter-settlement territories - according to the standard of 30%;

- a single tax on imputed income for certain types of activities - according to the standard of 90%;

- unified agricultural tax - according to the standard of 30%;

- unified agricultural tax levied in inter-settlement territories - according to the standard of 60%;

- state duty (to be credited at the place of state registration, legally significant actions or issuance of documents) - according to the standard of 100%:

- in cases considered by courts of general jurisdiction, justices of the peace (with the exception of the Supreme Court of the Russian Federation);

- for state registration of vehicles, for making changes to a previously issued vehicle passport, for issuing or extending the validity of a vehicle technical inspection certificate, for issuing state registration plates of vehicles "Transit", a certificate for a released number unit, a distinctive sign of an international participant road traffic, a coupon for passing the state technical inspection of a vehicle, a driver's license, a temporary permit for the right to drive vehicles, certificates confirming the receipt of a driver's license or a temporary permit for the right to drive vehicles, a certificate of conformity of the vehicle design with traffic safety requirements, for taking qualification exams for obtaining the right to drive vehicles;

- for issuing a permit for the installation of an advertising structure.

Tax revenues are credited to the budgets of city districts:

1) from the following local taxes established by the representative bodies of urban districts in accordance with the legislation of the Russian Federation on taxes and fees:

- land tax - according to the standard of 100%;

- tax on property of individuals - according to the standard of 100%.

2) tax revenues from the following federal taxes and fees, including taxes provided for by special tax regimes:

- personal income tax - according to the standard of 30%;

- a single tax on imputed income for certain types of activities - according to the standard of 90%;

- unified agricultural tax - according to the standard of 60%;

- state duty - in accordance with paragraph 2 of Art. 611BK RF.

3) tax revenues from federal taxes and fees, including taxes provided for by special tax regimes, and (or) regional taxes according to uniform deduction standards established by the laws of the constituent entities of the Russian Federation for crediting the relevant tax revenues to the budgets of urban districts.

Non-tax revenues of local budgets are accounted for and formed at the expense of the part of profits of municipal unitary enterprises remaining after the payment of taxes and other obligatory payments, in the amounts established by legal acts of local governments.

The budgets of municipal districts and the budgets of urban districts are subject to payment for the negative impact on the environment.

Fees for the issuance of licenses for the retail sale of alcoholic beverages issued by local authorities are subject to transfer to the budgets of urban districts and municipal districts, federal cities of Moscow and St. Petersburg.

The budgets of settlements, urban districts, before the delimitation of state ownership of land, receive income from the sale and lease of state-owned land plots located within the boundaries of settlements, urban districts and intended for housing construction.

Prior to the delimitation of state ownership of land, the budgets of municipal districts receive income from the sale and lease of state-owned land plots located in inter-settlement territories and intended for housing construction.

Topic 5. BUDGET EXPENDITURES

5.1. General provisions on budget expenditures

The formation of expenditures of budgets of all levels of the budget system of the Russian Federation is carried out in accordance with the expenditure obligations stipulated by the legislation of the Russian Federation by the delineation of powers of federal state authorities, state authorities of the constituent entities of the Russian Federation and local governments, the execution of which, according to the legislation of the Russian Federation, international and other treaties and agreements, must take place in the next financial year at the expense of the relevant budgets.

Budget expenditures, depending on their economic content, are divided into current expenditures and capital expenditures.

Capital expenditures of budgets - a part of budget expenditures that ensures innovation and investment activities, including items of expenditure intended for investment in existing or newly created legal entities in accordance with the approved investment program, funds provided as budget loans for investment purposes to legal entities, expenses for capital (restoration) repairs and other expenses associated with expanded reproduction, expenses that create or increase property owned by the Russian Federation, constituent entities of the Russian Federation, municipalities, respectively, other budget expenses included in capital budget expenses in accordance with economic classification of RF budget expenditures. A development budget can be formed as part of the capital expenditures of budgets.

Current budget expenditures - part of budget expenditures that ensures the current functioning of public authorities, local governments, budgetary institutions, the provision of state support to other budgets and individual sectors of the economy in the form of grants, subsidies and subventions for current functioning, as well as other budget expenditures not included in capital expenditures in accordance with the budget classification of the Russian Federation.

Provision of budgetary funds is carried out in the following forms:

- appropriations for the maintenance of budgetary institutions;

- funds to pay for goods, works and services performed by individuals and legal entities under state or municipal contracts;

- transfers to the population;

- appropriations for the implementation by local governments of mandatory payments to the population established by the legislation of the Russian Federation, the legislation of the constituent entities of the Russian Federation, legal acts of representative bodies of local government;

- appropriations for the implementation of certain state powers transferred to other levels of government;

- appropriations for compensation of additional expenses incurred as a result of decisions taken by public authorities, leading to an increase in budget expenditures or a decrease in budget revenues;

- budget credits to legal entities (including tax credits, deferrals and installment plans for the payment of taxes and payments and other obligations);

- subventions and subsidies to individuals and legal entities;

- investments in the authorized capital of existing or newly created legal entities;

- interbudgetary transfers;

- credits and loans within the country at the expense of state external borrowings;

- loans to foreign countries;

- Funds for servicing debt obligations, including state or municipal guarantees.

Budgetary institutions spend budgetary funds exclusively:

- for remuneration in accordance with the concluded employment contracts and legal acts regulating the wages of the relevant categories of employees;

- transfer of insurance premiums to state off-budget funds;

- transfers to the population, paid in accordance with federal laws, laws of subjects of the Russian Federation and legal acts of local governments;

- business trips and other compensation payments to employees in accordance with the legislation of the Russian Federation;

- payment for goods, works and services under concluded state or municipal contracts.

All purchases of goods, works and services in excess of 2000 minimum wages are carried out exclusively on the basis of state or municipal contracts. Financing for ensuring the placement of an order for the supply of goods, performance of work, provision of services for state or municipal needs may be carried out at the expense of funds provided for by the expenditures of the relevant budget or the relevant budgets of state extra-budgetary funds for ensuring state needs, or at the expense of funds provided for by the local budget for providing municipal needs.

Expenses for financing budget investments are provided for by the relevant budget, provided that they are included in the federal target program, the regional target program, or in accordance with the decision of the federal executive authority, the executive authority of the subject of the Russian Federation or the local government.

Federal investment objects that provide for expenses in the amount of more than 200 minimum wages are subject to consideration and approval in the manner determined for the financing of federal target programs.

The expenditure part of the budgets of all levels of the budgetary system of the Russian Federation provides for the creation of reserve funds of executive authorities and reserve funds of local governments. In the expenditure part of the budgets of all levels of the budgetary system of the Russian Federation, the creation of reserve funds of legislative (representative) bodies and deputies of legislative (representative) bodies is prohibited. The amount of reserve funds in the federal budget cannot exceed 3% of approved federal budget expenditures.

The federal budget for the next financial year provides for the creation of a reserve fund of the President of the Russian Federation in the amount of not more than 1% of the approved federal budget expenditures. The funds of the reserve fund of the President of the Russian Federation are spent on financing unforeseen expenses, as well as additional expenses provided for by decrees of the President of the Russian Federation. The expenditure of the reserve fund of the President of the Russian Federation is carried out on the basis of a written order of the President of the Russian Federation.

At the same time, spending the resources of the reserve fund of the President of the Russian Federation for holding elections, referendums, and covering the activities of the President of the Russian Federation is not allowed.

5.2. Expenditure obligations of the Russian Federation

The federal budget for 2006 provided for expenses in the amount of 4 thousand rubles. and income in the amount of 270 thousand rubles. based on the projected volume of gross domestic product in the amount of 114 billion rubles. and the level of inflation (growth in consumer prices) of 718,3-5% (December 046 relative to December 137).[500,0] For 24, the federal budget planned expenditures in the amount of 380 thousand rubles. and income in the amount of 7,0 thousand rubles. based on the projected volume of gross domestic product in the amount of 8,5 billion rubles. and an inflation rate of 2006-2005% (December 29 relative to December 2007) [5] The expenditure obligations of the Russian Federation arise as a result of:

- adoption of federal laws and (or) regulatory legal acts of the President of the Russian Federation and the Government of the Russian Federation in the exercise by federal state authorities of powers on subjects of jurisdiction of the Russian Federation and (or) joint jurisdiction, not classified by Federal Law of October 6, 1999 No. 184-FZ " On the General Principles of Organization of Legislative (Representative) and Executive Bodies of State Power of the Subjects of the Russian Federation" to the powers of state authorities of the subjects of the Russian Federation;

- the conclusion by the Russian Federation or on behalf of the Russian Federation of treaties (agreements) in the exercise by federal state authorities of powers on subjects of jurisdiction of the Russian Federation and (or) powers on subjects of joint jurisdiction that are not attributed by this Federal Law to the powers of state authorities of subjects of the Russian Federation;

- adoption of federal laws and (or) regulatory legal acts of the President of the Russian Federation and the Government of the Russian Federation, providing for the provision of interbudgetary transfers from the federal budget in the forms and procedure provided for by the RF BC, including:

a) subventions to the budgets of constituent entities of the Russian Federation for the fulfillment of expenditure obligations of constituent entities of the Russian Federation in connection with the exercise by state authorities of constituent entities of the Russian Federation of powers subject, in accordance with the above-mentioned Law, to financial support from subventions from the federal budget;

b) subventions to local budgets for the fulfillment of spending obligations of municipalities in connection with the vesting of local governments with certain state powers of the Russian Federation.

The spending obligations of the Russian Federation are fulfilled at the expense of their own revenues and sources of covering the federal budget deficit.

In the cases established by federal laws, the expenditure obligations of the Russian Federation are fulfilled at the expense of state non-budgetary funds.

In 2007, it is planned to accelerate the recovery of export VAT and thus significantly reduce the barrier associated with recovery, with a permitting procedure for recovery, which discourages export operations.

Undoubtedly, the increase in the investment component in federal target programs and the adoption of a number of new federal target programs are among the factors of economic development activation.

One of the areas of investment is investment in human capital in the areas of education and healthcare. Without highly qualified personnel with education, at the level of modern requirements, capable of working in conditions of high technologies, innovations in various fields and sectors of the national economy, it is impossible to create and increase GDP at a high rate. All this creates a new quality of the budget, expands its possibilities as a development budget.

Economic development is also facilitated by additional measures that have begun to be implemented in the social sphere and agriculture. These are four priority national projects: "Affordable and comfortable housing", "Health", "Education" and "Development of the agro-industrial complex". National projects are also investments in the economy and people.

5.3. Expenditure obligations of the subject of the Russian Federation

The expenditure obligations of a constituent entity of the Russian Federation arise as a result of the adoption of:

- laws and other normative legal acts of a constituent entity of the Russian Federation, as well as the conclusion by a constituent entity of the Russian Federation or on behalf of a constituent entity of the Russian Federation of contracts (agreements) in the exercise by state authorities of the constituent entities of the Russian Federation of powers in matters of jurisdiction of the constituent entities of the Russian Federation;

- laws and other normative legal acts of a constituent entity of the Russian Federation, as well as the conclusion by a constituent entity of the Russian Federation or on behalf of a constituent entity of the Russian Federation of contracts (agreements) in the exercise by public authorities of the constituent entities of the Russian Federation of powers on subjects of joint jurisdiction;

- laws and other regulatory legal acts of a constituent entity of the Russian Federation that provide for the provision of interbudgetary transfers from the budget of a constituent entity of the Russian Federation in the forms and procedure provided for by the RF BC, including subventions to local budgets for the fulfillment of spending obligations of municipalities in connection with the vesting of local governments with certain state powers of the constituent entities RF;

- normative legal acts of a constituent entity of the Russian Federation in the exercise by state authorities of a constituent entity of the Russian Federation of powers that, in accordance with the Federal Law "On the General Principles of Organization of Legislative (Representative) and Executive Bodies of Government of the Subjects of the Russian Federation" are subject to financial support from subventions from the federal budget.

The expenditure obligations of a constituent entity of the Russian Federation to provide subventions to local budgets for the fulfillment of expenditure obligations of municipalities in connection with the empowerment of local governments with certain state powers of the constituent entities of the Russian Federation are fulfilled by providing subventions to local budgets from the regional compensation fund.

The laws of the constituent entities of the Russian Federation providing for the provision of subventions to local budgets from the regional compensation fund should contain the procedure for calculating the standards for determining the total amount of subventions for the fulfillment of the corresponding spending obligations of municipalities and annually be put into effect 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, subject to approval given the law of relevant subventions to local budgets.

The state authorities of a constituent entity of the Russian Federation independently determine the amount and terms of remuneration for the work of state civil servants of a constituent entity of the Russian Federation and employees of state institutions of a constituent entity of the Russian Federation.

State authorities of a constituent entity of the Russian Federation are not entitled to establish and fulfill spending obligations related to the resolution of issues referred to the competence of federal state authorities, except in cases established by federal laws.

State authorities of a constituent entity of the Russian Federation shall have the right to establish and fulfill spending obligations related to the resolution of issues that are not within the competence of federal state authorities, local self-government bodies and are not excluded from the competence of state authorities of a constituent entity of the Russian Federation by federal laws, laws of a constituent entity of the Russian Federation, only if there are appropriate funds of the budget of the constituent entity of the Russian Federation (with the exception of grants, subsidies and subventions from the federal budget).

5.4. Expenditure obligations of the municipality

Expenditure obligations of the municipality arise as a result of the adoption of regulatory legal acts of local governments:

a) on issues of local importance, as well as the conclusion by the municipality or on behalf of the municipality of contracts (agreements) on these issues;

b) when local self-government bodies exercise certain state powers.

Expenditure obligations of a municipal formation arising as a result of the adoption of regulatory legal acts of local self-government bodies in the exercise by these bodies of certain state powers in accordance with federal laws (laws of a constituent entity of the Russian Federation) are executed at the expense of subventions from the regional compensation fund.

Local self-government bodies independently determine the amount and terms of remuneration for deputies, elected officials of local self-government exercising their powers on a permanent basis, municipal employees, employees of municipal unitary enterprises and institutions.

In a municipality that receives subsidies from the budget of a constituent entity of the Russian Federation in accordance with paragraph 3 of Art. 138 or subsidies from the budget of the municipal district in accordance with paragraph 4 of Art. 142 of the RF BC, the amount of remuneration of deputies, elected officials of local self-government exercising their powers on a permanent basis, municipal employees, employees of municipal unitary enterprises and institutions is set no higher than the limit values ​​established by the law of the constituent entity of the Russian Federation.

Local self-government bodies are not entitled to establish and fulfill spending obligations related to the resolution of issues within the competence of federal state authorities, state authorities of the constituent entities of the Russian Federation, except in cases established by federal laws, laws of the constituent entities of the Russian Federation, respectively.

Local self-government bodies have the right to establish and fulfill expenditure obligations related to resolving issues that are not within the competence of local self-government bodies of other municipalities, state authorities, and not excluded from their competence by federal laws and laws of the constituent entities of the Russian Federation, only if they have their own financial resources ( with the exception of subsidies, subventions and subsidies provided from the federal budget and the budget of the subject of the Russian Federation).

5.5. Spending obligation registers

State authorities and local governments are required to maintain registers of expenditure commitments. The register of expenditure obligations is understood as a set (list) of regulatory legal acts and contracts and agreements concluded by public authorities (local governments) (individual articles, clauses, subparagraphs, paragraphs of regulatory legal acts, contracts and agreements), providing for the emergence of expenditure obligations subject to execution from the respective budgets.

The register of expenditure obligations of the Russian Federation is maintained in accordance with the procedure established by the Government of the Russian Federation. The register of expenditure obligations of a constituent entity of the Russian Federation is maintained in accordance with the procedure established by the executive body of state power of a constituent entity of the Russian Federation.

The register of expenditure obligations of a constituent entity of the Russian Federation, as well as a set of registers of expenditure obligations of municipalities that are part of a constituent entity of the Russian Federation, are submitted to the Ministry of Finance of the Russian Federation in the manner established by this Ministry.

The register of expenditure obligations of the municipality is maintained in the manner prescribed by the local administration. It is submitted by the local self-government body to the executive body of state power of the constituent entity of the Russian Federation in the manner established by this executive body.

Topic 6. STATE CREDIT

6.1. Public debt in the Russian Federation

Public debt (public credit) as an economic category is a system of monetary relations arising in connection with the state's involvement on a voluntary basis for the use of temporarily free funds of citizens and business entities. State credit as a legal category is an independent institution of financial law, which is a set of financial and legal norms that regulate social relations that develop in the process of the state attracting temporarily free funds of legal entities and individuals on the terms of voluntariness, repayment, urgency and compensation in order to cover budget deficit and regulation of monetary circulation.

The USSR's debt to the Paris Club of creditors at the end of 1991 amounted to $37,6 billion (the Paris Club is a non-institutionalized association of creditor countries (Australia, Austria, Belgium, Great Britain, Germany, Denmark, Ireland, Spain, Italy, Canada, the Netherlands, Norway , Russia, USA, Finland, France, Switzerland, Sweden, Japan), created in 1956 to discuss and resolve the problems of debt of developing countries on state or state-guaranteed loans. Russia has been a member of the Paris Club since 1997). In January 1992, the Russian Government entered into a framework agreement to revise the calendar plan for servicing and repaying this debt. Then in 1993-1995. three revisions followed (multilateral memorandums of 02.04.1993/04.06.1994/03.06.1995, 1991/1995/1992, 57/1993/96,6) related to debt servicing in the period from December XNUMX to the end of XNUMX. Russia’s external debt, which amounted to $XNUMX billion at the beginning of XNUMX, reached $XNUMX billion at the beginning of XNUMX and equaled the country’s annual GNP.

Having completed negotiations with the Paris Club in 1994, Russia assumed the USSR's debt to all countries in full in exchange for foreign assets.

At the same time, Russia has actually lost the opportunity to return a significant part of the debts from most countries. Under previous agreements, the greatest burden of repaying Soviet debts fell on the period after 2002, and then this apparently seemed a distant prospect. Following these agreements. The Government of the Russian Federation signed a multilateral memorandum on April 29, 1996 on the terms of a comprehensive restructuring of the external debt of the USSR with the member countries of the Paris Club of creditors, as a result of which Russia’s debt to the Club amounted to $38 billion.

By the end of 1993, Russia's total external debt had increased by $110 billion, an increase of $15 billion over the previous year (primarily due to borrowing from international financial organizations). The reasons for the rapid growth of debt were the deficit of the state budget and a noticeable deterioration in the price conditions of foreign trade, combined with a reduction in exports. Despite this, in 1993 the ratio of external debt to GNP fell to 65%.

During the years of reforms, due to the reduction of the taxable base due to the decline in production, low domestic demand, the withdrawal of business into the shadow economy, and massive tax evasion, the tax revenues of the state have sharply decreased. For most of the 1990s, budget revenues fell, and government spending did not cut enough to establish budgetary equilibrium.

According to official data, at the beginning of 1994, the total external debt of the country amounted to $112,8 billion. The debt of the former USSR grew to $104 billion (92,2% of the total external debt) due to the capitalization of unpaid interest, and the newly formed Russian debt amounted to 8,8 .1994 billion dollars. Then, in 1997-1996, the debt grew at a slower pace (by 121 it reached 55 billion dollars), while the ratio of debt to GNP and exports gradually decreased (from 1994% in 30 to 1996% GNP in 260, from 1994% of the country's exports in 190 to 1996% in XNUMX).

According to official data from the Ministry of Finance of the Russian Federation, as of December 31, 1997, Russia's external debt amounted to $123,5 billion, of which $91,4 billion were debts inherited from the Soviet Union. However, in 1998, large-scale borrowing was again made. By July 1, 1998, external debt had grown to $129 billion (the increase in debt was primarily due to attempts to prevent default associated with domestic debt). In the second half of 1998, part of the internal debt was converted into external debt - the volume of debt at the end of 1998 was already $143,9 billion, and in 1999 it reached its historical peak - $167 billion (more than 101% of GDP in in ruble terms).[31]

The source of repayment of government loans and the payment of interest on them are budget funds, where these expenses are allocated annually in a separate line. However, in the context of a growing budget deficit, the state may resort to refinancing the public debt, that is, repaying the old public debt by issuing new loans.

In Russia, the size of the federal budget deficit, approved by the law on the federal budget, cannot exceed the total volume of budget investments and expenses for servicing public debt in the corresponding financial year, and the size of the budget deficit of a constituent entity of the Russian Federation is 15% of the volume of its budget revenues, excluding financial assistance from the federal budget.

Since 2000, thanks to the policy of servicing external obligations without making new borrowings, there has been a gradual (up to $10 billion a year) reduction in Russia's external debt. In recent years, there has also been a tendency to reduce the total debt in relation to the country's GDP in 2000 - 62%, 2001 - 49%).

At the end of 2002, the total public debt in relation to GDP was 36,1%, and in relation to exports - 142%, which indicates its manageability. A risk factor includes the fact that more than 80% of the debt is denominated in foreign currency, which means it is exposed to the risk of changes in the exchange rate, but at present the situation is stable: the ruble is strengthening, there is a large influx of foreign currency into the country.

According to the Bank of Russia, as of January 1, 2003, the amount of external debt of the Russian Federation reached $152,1 billion.[32] More than 36% of this amount is debt from the former USSR. In addition, an amount of about $8 billion is unsettled debt of the former USSR.

An analysis of the execution of the federal budget in the Russian Federation for August 2006 shows that the surplus amounted to 1489,4 billion rubles. Part of this amount goes to pay off the public debt. Execution of the federal budget of the Russian Federation in 2006 is shown in Table. 6.1.

Exactly eight years after the 1998 financial crisis, between August 15 and August 21, 2006, the Russian Federation made payments to repay the balance of the 1996 and 1999 restructuring. within the framework of the Paris Club of Debt Creditors. As a result, Russian obligations to all 17 member states of the Club in the amount of $21,6 billion have been repaid in full and Russia is no longer a debtor country of the Club.[33] The intergovernmental agreements that formalized the said debt have become invalid. This means that Russia has achieved the goal set by the Government of the Russian Federation and first formulated in the “Debt Strategy of the Russian Federation for 2003-2005.”

As part of this strategy, the Russian Federation first, in January 2005, repaid the balance of its obligations to the International Monetary Fund ahead of schedule in full, and then began negotiations on the early payment of the largest, politically significant and difficult to manage category of public external debt - debt to the Paris Club of creditors.

The redemption of debt obligations restructured within the framework of the Paris Club took place in two stages. In accordance with the Multilateral Agreement dated May 13, 2005, in July-August 2005, the debt for a total amount equivalent to US$15 billion was repaid ahead of schedule. Exactly one year later, on the basis of the agreements formalized in the Multilateral Protocol of June 16, 2006, the balance of this category of debt was repaid. The total savings from the federal budget on interest payments for the period up to 2020 will exceed $12 billion.

In 2007-2009 a positive balance of borrowings in the domestic market is planned, which does not lead to an increase in interest rates. As a result, by the end of 2007, the volume of domestic debt exceeded the amount of external liabilities, and the total volume of public debt decreased from 9% of GDP at the end of 2006 to 8,3% of GDP at the end of 2007 and should amount to 7,5% at the end of 2009 while already in 2008 the volume of domestic debt will exceed the amount of external liabilities.

If the state debt at the federal level is monitored very seriously at the present stage, then there are many questions about debts at the sub-federal level. A. D. Andryakov believes that the basis of economic security is such a state of debt management and such a volume of debt that it is possible to fulfill both debt obligations and all other budget obligations assumed, virtually regardless of external circumstances. One of the approaches to the implementation of this principle is based on the fact that the planning of newly attracted obligations, as well as the planning, servicing and repayment of existing obligations, is carried out exclusively at the expense of budget revenues without the need to attract financial resources from the borrowing markets. The technical implementation of this principle is the introduction of the concept of debt capacity of the planning and decision-making procedures, as well as the inclusion of obligations on overdue accounts payable in decision-making.[34]

According to 2002 data, the volume of overdue accounts payable for municipal entities was significant and exceeded the debt capacity. On the whole, there are 24 constituent entities in the Russian Federation, the municipalities of which mainly have a deficit in the current expenditure budget. If we consider the debt capacity reduced by overdue accounts payable, i.e., the ability to borrow, then almost 2/3 of the regions have municipalities on their territory, which, generally speaking, cannot borrow, since there is nothing to meet their obligations.

In fact, debt capacity is the excess of budget revenues over current expenditures. What remains after the fulfillment of obligations for current expenditures is the debt capacity of the budget, which is used for liability both for obligations already accepted and for those planned to be accepted. The last part of the obligations that a constituent entity of the Russian Federation or a municipality assumes is the expected liability for contingent liabilities. In this case, we are talking about guarantees. A guarantee is essentially a conditional obligation, since the guarantor's liability for this obligation arises only under certain conditions (if the guarantor fails to fulfill his obligations).

For the debt management system, debt capacity is some kind of initial information coming from the budget planning system. At the same time, it is important to note that the duration of the budget forecast should include the repayment of the longest-term obligation taken or planned to be taken. Based on the debt capacity, it is necessary to repay the already accumulated debt obligations according to a certain repayment schedule. It should also provide for the possibility of repayment of overdue accounts payable. When drawing up a repayment schedule for overdue accounts payable, it is assumed that part of this debt has already been restructured. The unrestructured part is to be repaid in the next financial year.

The financial authority that sets priorities in investment policy must build a long-term investment program, which actually represents the needs for investment financing over the long term, and the debt management system only attracts resources in an optimal way to finance this program and ensures that these resources are attracted in volumes that can be painlessly repaid in the future.

The most complex and complete planning process takes place when determining the required amount of investment borrowing.

When distributing the debt capacity planned for several years, taking into account the fulfillment of obligations already assumed, a "safety cushion" should also be included in the expected liability for guarantees.

The ratio between the volume of debt capacity allocated for guarantees and new obligations is determined by the priorities of the debt and economic policy. They should be set by the relevant body that makes the policy. Of course, they are included in the debt management system not in the form of numbers, but in the form of shares.

State Debt Policy of the Russian Federation for 2007-2009. provides for a reduction in the volume of public external debt and its gradual replacement with domestic borrowings.

The principles of the state debt policy of the Russian Federation are:

- replacement of the state external debt with internal borrowings;

- development of the government securities market;

- use of state guarantees to accelerate economic growth;

- application of instruments of debt policy in order to carry out additional sterilization of excess money supply and combat inflation.

6.2. Types of government loans

In general, government loans of the Russian Federation can be classified according to the following criteria:

1) by maturity, debt obligations can be short-term (up to one year), medium-term (from one year to five years) and long-term (from 5 to 30 years). All debt obligations of the Russian Federation are repaid within the terms determined by the specific terms of the loan, but cannot exceed 30 years (Law of the Russian Federation of November 13, 1992 No. 3877-1 "On the state internal debt of the Russian Federation");

2) according to the right of issue, they are divided:

a) issued by the central government;

b) issued by the governments of national-state and administrative-territorial formations and local governments, if this is provided for by law;

3) on the basis of subjects of holders of securities, loans can be divided into realizable:

a) only among the population;

b) only among legal entities;

c) both among legal entities and among the population;

4) according to the form of payment, income, loans can be divided:

a) for interest-bearing, when the owners of debt obligations of an interest-bearing loan receive a fixed income annually by paying coupons or once when repaying a loan by adding interest to the accrued face value of securities without annual payments;

b) winning, when the recipient receives income in the form of winnings at the time of redemption of the bonds, and the income is paid only on those bonds that are included in the circulation of winnings. In addition, there are win-win loans, but they are not currently issued in the Russian Federation;

c) interest-free (targeted) loans, which provide for the payment of income to bondholders or guarantee the receipt of the corresponding product, the demand for which is not satisfied at the time of the loan issuance;

5) according to the methods of placement, loans are divided:

a) voluntary;

6) placed by subscription;

c) compulsory.

Currently, only voluntary loans are used. Forced loans are used only in totalitarian states. Subscription loans are by their nature close to forced loans, therefore they are also not used;

6) in form, loans can be bonded and non-bonded. Bonded loans involve the issue of securities. Non-bond loans are formalized by signing agreements, contracts, as well as by making entries in debt books and issuing special obligations.

In accordance with the principles of debt policy in 2005 and 2006. The Russian Federation carried out early repayment of state external debt obligations.

In January 2005, the balance of debt obligations to the International Monetary Fund was repaid ahead of schedule in full. In June 2006, the Russian Federation fully repaid the debt of the former USSR to the official creditors of the Paris Club of Creditors.

Early repayment of external debt will also contribute to strengthening the international prestige of Russia as a state with a significant margin of financial and debt stability, having a reputation as a conscientious borrower and striving to improve the investment climate in the country through concrete political measures.

In the field of domestic borrowing, the implementation of the debt policy in 2007-2009. will proceed from the goals of developing the government securities market. The key tasks will be to increase the liquidity of the market part of the state domestic debt and maintain optimal duration and profitability in the government securities market.

The main methods of public debt management include:

1) refinancing - repayment of old state debt by issuing new loans;

2) conversion - a change in the size of the profitability of a loan, for example, a decrease or increase in the interest rate of income paid by the state to its creditors;

3) consolidation - an increase in the validity of already issued loans;

4) unification - combining several loans into one;

5) deferral of loan repayment - carried out in conditions when further active development of operations for the issuance of new loans is inefficient for the state;

6) cancellation of debt - refusal of the state from debt obligations;

7) debt restructuring - repayment of debt obligations with simultaneous borrowing (assuming other debt obligations) in the amount of debt obligations to be redeemed with the establishment of other conditions for servicing debt obligations and their maturity dates.

Topic 7. INSURANCE

7.1. The concept and functions of insurance

Essence and economic nature of insurance. Insurance this is a special type of economic activity associated with the redistribution of the risk of damage to property interests among participants in insurance (insured) and carried out by specialized organizations (insurers) that ensure the accumulation of insurance premiums, the formation of insurance reserves and the implementation of insurance payments in case of damage to insured property interests. At the same time, the redistribution of risks among policyholders should be understood as a special process in which the potential risk of damage to the property interests of each policyholder is distributed to all and, as a result, each policyholder becomes a participant in compensation for the actual damage caused. The key point in such relations is the payment of the insurance premium (insurance premium) to the insurer, which ensures the organization of the redistribution process. However, this does not mean that with a lack of collected insurance premiums, the insurer is free from compensation for damage caused to the economic entity. The peculiarity of insurance activity as a type of business lies precisely in the fact that it has a certain entrepreneurial risk, due to the obligation of the insurer to compensate for the damage agreed in advance for the reasons for the occurrence and amount, including from its own sources.

Insurance is carried out in cases where the probability of occurrence of risks can be assessed and there are certain financial guarantees from the insurers to compensate for the damage.

Insurance activity is associated with providing insurance protection to carriers of property interests - policyholders - by redistributing insurance risks associated with their activities. Such redistribution is possible only in relation to risks - random events, the occurrence of which entails harm to the life and health of citizens or damage to property, property interests of citizens and legal entities and is characterized by both randomness and the likelihood of their occurrence. It is precisely because of the randomness of the occurrence of an insured event that reliable events are excluded from the number of risks that can be accepted for insurance. For example, it is difficult to imagine the possibility of insurance in case of January 1st or astronomical sunrise. At the same time, a potential risk must be characterized by a certain probability of its occurrence, based on actual data from previous experience. The absence of such data may make it difficult or impossible to assess the likelihood of such an event occurring in the future and its possible financial consequences (damage), which, in turn, will not allow the damage to be distributed among all policyholders, i.e., to determine the share of each of them in the formation of the total insurance fund created to compensate for damage.

Insurance is associated with compensation for damage (harm) caused to the property interests of the insured in cash. The practice of carrying out insurance has developed an optimal form of such relations with the participation of specialized organizations (insurance organizations) that form insurance funds from the contributions of policyholders and ensure insurance payments.

Despite the random, probabilistic (whether it will happen or not) nature of the onset of natural disasters, accidents, property thefts, and domestic emergencies, it has long been noted that the number of victims of them is always less than the number of those fearing the onset of negative events. Therefore, even in ancient times, interested parties had the idea of ​​uniting property owners with the aim of jointly compensating for material damage to the injured party by jointly apportioning the damage between the members of the association. And the more such participants, the smaller the share of funds that each of them must allocate to compensate for the actual losses caused to the injured party. It is clear that if every owner of property - merchant, merchant, artisan - relied only on himself, he would be forced to keep in a reserve of material assets to compensate for possible damage exactly as much as he had in circulation. This is where the idea of ​​uniting interested parties arises to jointly deal with the damage. This is how insurance arose: the original, primary meaning of insurance lies in the closed, solidary participation of interested parties in compensation for property damage suffered by the injured member of the association as a result of emergency events. The indicated signs, in particular property damage, joint distribution of damage, compensation for damage, characterizing the primary idea of ​​​​the essence of insurance, indicate its economic nature.

Insurance is a relationship to protect the property interests of business entities and citizens in the event of certain events (insured events) at the expense of funds formed from the insurance premiums they pay (in the practice of Ingosstrakh and foreign insurance companies, the term "insurance premium" is used). Insurance does not create new value, it only deals with the distribution of the loss (damage) of one policyholder among all policyholders. The above scheme shows that each policyholder pays an insurance premium to the insurer, from which the insurance fund is formed. In the event of an insured event for any insured, his loss is covered from the insurance fund created by all insurers.

The accident, which is meant by insurance, should not be absolute, that is, completely unaccounted for. Insurance deals with events whose probability of occurrence can be determined (through, for example, statistical observations). In other words, we are talking about random events that take place not as a general phenomenon, but as an isolated case, the probability of which can be foreseen, measured and taken into account. At the same time, if possible, the arbitrary occurrence of the event in question should be excluded: therefore, insurance deals either with events that, in principle, do not depend on the will of a person (storm, flood, etc.), or with events in respect of which there were Every effort has been made to prevent their occurrence. For example, fire insurance is possible only if fire safety rules are fully observed, and also if arson as an attempt to "assist" the occurrence of a harmful event is punishable in accordance with the norms of criminal law. Attempts to prevent the onset of adverse events are explained by the disinterest of a certain person in their occurrence, the desire to avoid them. The lack of such interest turns insurance into a kind of fraud (for example, deliberate sinking of a ship in order to obtain insurance, suicide or murder to obtain insurance for relatives, etc.).

The danger and certain probability of the occurrence of events that may have adverse material and other consequences should be recognized not by one person, but by many people: such an event can threaten everyone, but in fact it will not happen for everyone. Persons interested in its prevention or reduction of adverse consequences are ready to contribute certain amounts of money to the general cash desk in order to ensure compensation for losses in the event of such events.

In the economic aspect, insurance is a system of economic relations regarding the formation of centralized and decentralized reserves of cash and material resources necessary to cover the unforeseen needs of society and its members. From a material point of view, during insurance, monetary (material) funds of specialized institutions - insurers are created, used to compensate for damage caused by natural disasters, accidents, as well as in connection with the occurrence of certain events. The economic category of insurance is an integral part of the category of finance. However, if finance as a whole is associated with the distribution and redistribution of income and savings, then insurance covers only the sphere of redistribution relations. In this regard, we can highlight the following essential features that characterize the specificity of this economic category of insurance.

1. When insuring, monetary redistribution relations arise due to the presence of the probability of the onset of sudden, unforeseen and insurmountable events, i.e., insured events that entail the possibility of causing material or other damage to the national economy and population.

2. When insuring, the damage caused is distributed among the insurance participants - the policyholders, which is always closed in nature. The emergence of such redistribution (allocation) relations is due to the fact that the random nature of damage entails material or other losses, which, as a rule, do not cover all farms, not the entire territory of a given country or region, but only part of them. This creates the conditions for compensation for damage through the joint distribution of losses of some farms among all insured farms. Moreover, the wider the circle of insurance participants, the smaller the share in the breakdown of damage falls on each policyholder. Insurance becomes the most effective method of compensation for damage when millions of policyholders participate in it and hundreds of millions of objects are insured. This ensures a sufficient concentration of funds in a single fund, called an insurance fund, and then it becomes possible to compensate for maximum damage at minimal costs for each policyholder.

Insurance has always been associated with financial redistributive relations, although there was insurance in commodity form. It was based on the spread of damage to homogeneous, easily divisible material values, such as grain and other crops, but these were monetary goods. With the development of monetary relations, commodity insurance naturally gave way to insurance in cash.

3. Insurance provides for the redistribution of damage both between territorial units and in time. At the same time, for the effective territorial redistribution of the insurance fund within one year, a sufficiently large territory and a significant number of objects to be insured are required. The distribution of damage over time is associated with the random nature of the occurrence of emergency events: for several years in a row there may not be any emergency events, and the exact time of their occurrence is unknown. This circumstance gives rise to the need to reserve in favorable years part of the insurance payments received to create a reserve fund so that it serves as a source of compensation for emergency damage in an unfavorable year.

4. A closed distribution of damages determines the return of funds mobilized to the insurance fund. The insurance payments of each insured, made to the insurance fund, have only one purpose: compensation for the probable amount of damage on a certain territorial scale and within a certain period. Therefore, the entire amount of insurance payments (excluding the overhead costs of the organization that provides insurance) is returned in the form of compensation for damage during the time period taken into account on the same territorial scale.

Insurance payments are determined on the basis of insurance tariffs, consisting of two parts: a) net payments intended to compensate for probable damage; b) overhead costs for the maintenance of an insurance company that conducts insurance. The amount of net payments is set on the basis of the probable damage for the settlement period (usually five or ten years) on the scale of a certain territory (regions, territories, republics). Therefore, the entire amount of net payments is returned in the form of compensation for damage within the time period taken into account in the same territorial scale. The sign of repayment of funds brings the economic category of insurance closer to the category of credit: it is credit relations that ensure the repayment of received cash loans. Noting such repayment as a characteristic feature of insurance, it should be borne in mind that it applies primarily to life insurance.

The listed features of redistributive relations that arise in insurance allow us to give it the following definition: insurance - this is a set of special closed redistributive relations between its participants regarding the formation of a target insurance fund at the expense of monetary contributions, intended to compensate for possible damage caused to business entities, or to equalize losses in family income due to the consequences of insured events.

7.2. Insurance functions

The content of insurance as an economic category and its functions are organically linked. As functions of the economic category of insurance, the following can be distinguished: 1) the formation of a specialized insurance fund of funds; 2) compensation for damage and personal material support of citizens; 3) prevention of an insured event and minimization of damage.

The first function formation of a specialized insurance fund of funds as payment for the risks that insurance companies take on their responsibility. This fund can be formed both on a mandatory and voluntary basis. The state, based on the economic and social situation, regulates the development of the insurance business in the country. The function of forming a specialized insurance fund is implemented in the system of reserve and reserve funds that ensure the stability of insurance, the guarantee of payments and compensation. If in commercial banks the accumulation of public funds for the purpose, for example, of savings, has only a savings meaning, then insurance through the function of forming a specialized insurance fund has a savings-risk beginning. In moral terms, each participant in the insurance process, in particular in life insurance, is confident in receiving material security in the event of an accident and at the end of the contract. In case of property insurance, through the function of forming a specialized insurance fund, not only the problem of compensation for the cost of damaged property is solved within the limits of insurance amounts and conditions stipulated by the insurance contract, but also conditions are created for material compensation of part or full value of the damaged property.

Through the function of forming a specialized insurance fund, the problem of investing temporarily free funds in banking and other commercial structures, investing money in real estate, purchasing securities, etc. is solved. With the development of the market in insurance, the mechanism for using temporarily free funds will invariably be improved and expanded. The significance of the insurance function as the formation of special insurance funds will increase.

The second function of insurance is compensation for damage and personal material support of citizens. Only individuals and legal entities that are participants in the formation of the insurance fund have the right to compensation for property damage. Compensation for damage through this function is carried out by an individual or legal entity within the framework of existing property insurance contracts. The procedure for compensation for damage is determined by insurance companies based on the terms of insurance contracts and is regulated by the state (licensing of insurance activities). Through this function, the completeness of insurance coverage is realized.

Finally, the third function of insurance is prevention of an insured event and minimization of damage - involves a wide range of measures, including financing of measures to prevent or reduce the negative consequences of accidents and natural disasters. This also includes the legal impact on the insured, enshrined in the terms of the concluded insurance contract and focused on his careful attitude to the insured property. The insurer's measures to prevent an insured event and minimize damage are called prevention. In order to implement this function, the insurer forms a special monetary fund for preventive measures. It is in the interests of the insurer to spend some money on damage prevention (for example, financing fire prevention measures: the purchase of fire extinguishers, the placement of special thermal radiation monitoring sensors, etc.), which will help keep the insured property in its original condition. The insurer's expenses for preventive measures are expedient, as they allow to achieve significant savings in funds for the payment of insurance compensation, preventing a fire or any other insured event. The source of formation of the preventive measures fund is deductions from insurance payments.

7.3. Principles of insurance

Among the fundamental principles of insurance, one should distinguish between the economic principles of the functioning of the insurance system and the principles of the implementation of insurance legal relations.[35]

The fundamental economic principles of insurance include: 1) the principle of insurable interest; 2) the principle of risk insurability; 3) the principle of equivalence.

The principle of having a property interest. In insurance, there is a fundamental principle: "without interest, there is no insurance." In other words, when it comes to, for example, property insurance, it means protection, insurance of interest associated with the safety of this property. To determine whether there is an insurable interest in each specific case of applying for insurance protection, it is necessary to answer the question: are there any circumstances related to the nature of the interest that could cause harm (damage) to the person concerned? If the answer to the question is positive, which means that there is a real possibility of causing harm (damage), then there is an insurable interest and insurance protection in relation to such an interest can be provided. In paragraph 2 of Art. 930 of the Civil Code of the Russian Federation, the legislator indicates that the policyholder (beneficiary) must have an interest in preserving property. This norm plays an important role in building appropriate insurance relations. In addition, it follows from this article that when insuring property, it is not allowed to appoint a person who has no interest in preserving the insured property as a beneficiary under an insurance contract.

According to the general rule, the insurable interest must be present at the time of the conclusion of the insurance contract (in all types of insurance, except for cargo insurance), or the person concerned must have an insurable interest at the time of the insured event (in cargo transport insurance). During the validity period of the insurance contract, the insurable interest may be lost, for example, due to the loss of property for reasons other than the onset of the insured events (clause 1, article 958 of the Civil Code of the Russian Federation). In this case, according to paragraph 3 of Art. 958 of the Civil Code of the Russian Federation, the insurance contract is terminated, but the insurance premium paid by the insured is not returned, since every day during the validity period of the insurance contract, during which the insurance interest existed and was protected by insurance protection, the insurer was liable in full, and in any moment, the risk that the insurer bore could be realized, both in a certain part and in the amount of 100% liability under the insurance contract.

Article 928 of the Civil Code of the Russian Federation contains a list of interests in respect of which insurance is not allowed. In particular, these interests include:

1) illegal interests. When interpreting a property interest as contrary to the law, one should also rely on the provisions of Art. 10 of the Civil Code of the Russian Federation, according to which actions of individuals and legal entities are not allowed if they are carried out solely with the intention of causing damage (harm) to another person, as well as if there are intentions to abuse the right in other forms;

2) losses from participation in games, lotteries and betting. This prohibition stems from Art. 1062 of the Civil Code of the Russian Federation, according to which the claims of citizens and legal entities related to the organization of games and bets or participation in them, as a rule, are not subject to judicial protection;

3) expenses to which a person may be forced in order to release the hostages.

In addition, the object of insurance cannot be the risk of liability for breach of contract, if it is not the risk of the insured himself (clause 2, article 932 of the Civil Code of the Russian Federation), the entrepreneurial risk of a person who is not the insured (article 933 of the Civil Code of the Russian Federation), as well as the risk loss (damage, destruction, disappearance) of property if the insured has no interest in preserving this property (this provision follows from the norm of clause 2 of article 930 of the Civil Code of the Russian Federation).

With regard to life insurance contracts, the principle of having a property interest was legally introduced in England in the second half of the XNUMXth century. That time was characterized by the emergence of the foundations of life insurance, and in England insurance bets were widely spread about certain events: illness, death of famous people, elections to Parliament, etc. In order to stop such speculation on insurance, the English Parliament adopted an act that banned life insurance of a person or some event in which the insured had no interest (Gambling Act).

The principle of risk insurance. Risk underlies insurance and in its most general form is defined as the probability of distribution of the result of economic activity and the life of the subject in the areas of favorable and unfavorable deviations. The ambiguity and variety of these results stem from the uncertainty of environmental factors, information deficiencies inherent in the decision-making process, the internal characteristics of the subject, etc. Thus, the uncertainty of environmental factors is manifested in the actions do not coincide with those actually manifested (turn out to be unattainable or fundamentally different), and the randomness of the manifestation of these factors lies in the fact that they all manifest themselves independently of the will of the subject himself. In particular, these random and uncertain environmental factors can be detected as a result of the following manifestations:

- in the natural environment - in the form of floods, earthquakes, mudflows, volcanic eruption, tsunamis, storms and other natural hazards and disasters;

- in the technological and (or) technogenic environment - in the form of accidents in the life support systems of the enterprise (for example, in power supply systems); accidents in safety systems of various industries and, as a result, emissions of pollutants and their components; other accidents of technological and technogenic character;

- in the public (social) environment - as actions of the authorities, changes in legislation, dissatisfaction of the population with social and economic conditions of life, which can manifest itself locally or everywhere in the form of strikes, lockouts, civil unrest, etc.;

- in the market environment - as the formation of a negative image of the enterprise, the manifestation of the principles of competition, the recall of products from the market due to certain random reasons for their unsuitability for use by consumers, etc.

Randomness and uncertainty of impact factors of deficiencies (incompleteness, unreliability, ambiguity) of information or factors related to the internal characteristics of the subject can manifest itself in the probabilistic distribution of possible decision-making results that deviate from the expected, predicted result.

Risk as the probability of deviation of the actual result of the decision from the expected, and in its negative manifestation, and accordingly as the distribution of the probabilities of adverse outcomes can be evaluated economically, and therefore is most often used in insurance. For example, a deviation of the actual result from the expected one may manifest itself in the loss of property, in the loss of income of the enterprise as a result of the interruption of the production process, in the incurring of unforeseen expenses in connection with the obligation of the entrepreneur to compensate for the damage caused to third parties as a result of business decisions, etc. In other words, for the entrepreneur, all these manifestations are nothing but damage that can be assessed economically.

The principle of equivalence. This principle states: according to the results of certain periods of time or allocated tariff periods / periods of insurance (ideally, they must be correlated with the frequency of occurrence of small, medium, large damages), the principle of economic equality should be achieved between the total amount of the net insurance premium paid by a specific insured for a tariff period, and the total amount of compensation paid by the insurer in connection with the occurrence of insured events for the specified period.

7.4. Terms reflecting insured damage

insured damage, i.e., the material damage caused to the insured as a result of an insured event includes two types of losses: direct and indirect.

Direct loss means a quantitative decrease in the insured property (loss, damage, theft) or a decrease in its value (impairment) while maintaining its material form, which occurred as a result of an insured event. The amount of direct loss also includes costs incurred by the insured to reduce damage, save property and put it in proper order after a natural disaster or other insured event. Direct loss acts as primary, i.e., as actually observable damage - in this way it differs from indirect loss, which is a derivative, often hidden loss. Direct loss is the main factor determining insurance compensation.

Indirect loss means damage resulting from the loss (damage) of property or the inability to use it after an insured event. Being a derivative of direct loss, indirect loss acts as lost income due to interruptions in the production and commercial process due to the destruction of the building, equipment, destruction of labor objects, as well as in the form of additional costs necessary to establish the production and commercial process. Indirect loss is also possible for individuals, for example, the loss of lost investment income from individual investments or losses due to insufficient performance of a mutual investment fund in relation to a share of an individual. In order to reduce the indirect losses of individuals abroad, liability insurance for investment brokers is applied.

Although the indirect loss is of an indirect nature, its size often exceeds the damage from direct material destruction.

Indirect loss may be the subject of special types of insurance or included in property insurance liability. The terms of the insurance contract may provide for the replacement of the insurance payment with compensation for damage in kind within the amount of the insurance indemnity.

7.5. Property, events in life and liability as objects of insurance protection

Insured event in personal and property insurance. The insurance protection of property, life and liability realizes itself through insured events specified in the insurance contract. An insured event is an event that has occurred, upon the occurrence of which the insurer is obliged to make an insurance payment (insurance indemnity) to the insured, the insured person, the beneficiary or another third party.

For most types of property insurance, an insured event is any damage, depreciation or loss of material assets due to circumstances stipulated by the insurance conditions (natural disaster, fire, accident, theft, etc.). Sometimes such damage (depreciation) of property is considered an insured event, in which the damage exceeded a certain level. For example, when insuring agricultural crops, an insured event is a decrease in the actual crop in the current year (from a natural disaster) compared to the average crop per 1 hectare for the previous five years. Simultaneous loss or damage to the insured property in the territory covered by one natural disaster is considered as one insured event.

In personal insurance, an insured event is considered to be surviving to the term stipulated by the contract, death or an accident that entailed a permanent loss of the insured person's ability to work, loss of health.

Objects of insurance protection in property insurance. The object of insurance relations in property insurance is property in its various types and property interests. The meaning of property insurance protection is to compensate for damage resulting from an insured event. The insured may be either the policyholder's own property or those in his possession, use and disposal. In general, the property of legal entities and individuals as an object of insurance forms the volume of insurance liability for insurers - from fires, natural disasters, accidents and other cases. Under a separate agreement, the scope of insurance liability can include cases of theft, robbery, and theft of vehicles.

As the special objects of insurance protection allocate various types of transport, cargo, movable and immovable property of legal entities and individuals, and even some financial risks included in the scope of the insurance liability of the insurer. Thus, the objects of property insurance of agricultural enterprises are crops, perennial fruit, forest and other plantations, livestock of farm animals, buildings, structures, equipment, vehicles, raw materials, materials, products, fuel, etc.

Harvest as an object of insurance can imply a wide scope of insurance liability: from drought, lack of heat, freezing, storms, attacks of pests and other diseases. At the same time, the main product of culture is the direct object of insurance.

Agricultural animals as objects of insurance form their own scope of insurance liability: in case of death, death or forced slaughter due to natural disasters, fires and infectious diseases. Particularly valuable breeding animals-producers are insured under extended insurance liability.

Buildings, other fixed and circulating funds as objects of insurance are based on their scope of insurance liability: from fires, explosions, accidents and natural disasters.

In the households of citizens, the objects of insurance include their houses, garden houses, garages and outbuildings, etc., and the scope of insurance liability for these objects includes fires, natural disasters, accidents in the heating and plumbing systems and other insured events.

Cattle and horses in the household of citizens are included in the objects of insurance on the same terms as insurance of their farms, and the scope of insurance liability includes cases of death, death and forced slaughter due to diseases, natural disasters, accidents and fires . At the same time, small farm animals (sheep, goats, pigs, families of bees) become insurance objects together with household property and buildings under separately conducted property insurance in the backyard.

Household property as an object of insurance may include furniture, clothes, dishes, kitchen utensils, books, paintings, musical instruments, television, radio, electrical equipment and other items of personal consumption and amenities available in the family, and personal vehicles may imply insurance liability in the event of a natural disaster, accident or theft.

The property of entrepreneurs as an object of insurance may include appropriate equipment, tools, finished products and other material assets that form the scope of insurance liability in case of fire, natural disasters, accidents, theft, robbery and other cases (including damage).

Entrepreneurial risks as an object of property insurance. In a market economy, inside the property, as an object of insurance, entrepreneurial risks are distinguished, which include lost profits or income (lost profits), non-payments on the accounts of the seller of products, a decrease in a predetermined level of profitability, equipment downtime, interruptions in trade, etc.

Life as an object of insurance implies insurance protection of personal, family incomes of citizens or strengthening of their well-being. At the same time, not only life itself, but also the health and working capacity of a person act as objects of insurance.

The scope of insurance liability includes more specific events: survival until the end of the insurance period, due to age or event, the death of the insured or the insured, or loss of health by them during the period of insurance against specified events, usually from accidents. Then, in addition to life itself, they single out as separate objects associated with it - working capacity and health, and in the amount of insurance liability, various accidents and illnesses, as well as treatment costs. The main purpose of insurance protection in this case is to prevent a critical deterioration in the standard of living of people.

Life as an object of insurance can be associated with a different amount of insurance liability of the insurer. For example, in mixed insurance, it covers survival until the end of the insurance period, death of the insured and accidents. When insuring for marriage, two events are included in the scope of insurance liability: the entry of a specific person into a legal marriage in the period from the date of expiration of the insurance period or upon reaching 21 years without marriage.

Liability as an object of insurance protection. A very peculiar object of insurance is liability to third individuals or legal entities (ie, citizens and business entities) due to any action or inaction of the insured. Unlike property as an object of insurance, in which the property of legal entities and individuals is subject to insurance, and unlike life as an object of insurance, which is carried out in the event of the occurrence of certain events related to the health and working capacity of the insured, the purpose of liability insurance protection as an object of insurance is protection of the interests of potential harm-doers.

Liability as an object of insurance protection provides for the possibility, in the event of damage to both health and property of third parties, by virtue of law or by a court decision, to make appropriate payments to compensate for the damage caused. Liability as an object of insurance includes loans, professional and civil liability, especially the liability of motor vehicle owners. At present, new types of professional liability as an object of insurance have appeared, for example, the liability of a notary, a lawyer, a doctor, an auditor, a customs broker (intermediary), an entrepreneur, etc.

The liability of an entrepreneur as an object of insurance includes a wide range of risks - from his liability to his employees (bankruptcy) to the risk associated with environmental pollution, causing damage to nature and residents of a certain area due to violation of operating technology.

The borrower's liability includes the risks of non-repayment of loans.

7.6. Elements of an object insurance system

Object insurance system is a set of objects in the process of formation and use of the insurance fund. It includes the following elements: 1) risky circumstances; 2) risk situation; 3) the cost (valuation) of the object of insurance; 4) insurance event; 5) the sum insured; 6) insurance premium; 7) insured event; 8) damage (loss) of the insured; 9) insurance payment.

risky circumstances. Before concluding a contract, the insurer examines the object of insurance, determines its condition and the environment in which it is located. The condition of the insurance object depends on a number of factors, of which the insurer takes into account and analyzes only the essential ones. The process of monitoring and taking into account factors essential for insurance is called risk registration. The factors that determine risk registration for a given risk population are called risk circumstances; they are inherent in the given object of insurance and are considered as signs of risk. Risk circumstances are the conditions for the realization of the risk.

Any risk can be represented as a set of risk circumstances. In this regard, objective and subjective risk circumstances are distinguished. Objective risk circumstances reflect an objective approach to reality and do not depend on the will and consciousness of people (a manifestation of the elemental forces of nature). Subjective risk circumstances reflect the approach to the knowledge of reality associated with the will and consciousness of people (heavy traffic, violation of safety regulations, etc.). When concluding an insurance contract, the insurer takes into account both objective and subjective risk circumstances.

Assessment of the cost of risk. Determining the probability of the occurrence of an event for which insurance is made, and its consequences, expressed in monetary terms, is called the assessment of the cost of risk.

The size of the risk value assessment varies under the influence of objective and subjective factors. Such factors include the probability of occurrence and the nature of the impact of natural forces, the state of fire safety, labor protection, etc. The study of risk as the probability of an insured event allows you to create a financial basis for insurance operations, expressed in the scientifically based establishment of insurance rates (i.e. insurance fees).

The assessment of the cost of risk is determined on the basis of a study of statistical data characterizing the frequency of occurrence of hazards (fires, accidents, etc.), the strength of their action and the amount of damage caused by them.

risk situation. When concluding an insurance contract, the insurer selects risk circumstances. All risk circumstances, taken in their unity and interaction, determine the state, which is called the risk situation. This situation characterizes the natural state of the insurance object and the environment in which this object is located.

insurance event. Risk circumstances allow assessing the probability of an insured event, which is understood as the probability of causing damage to the insurance object. The anticipated event for which insurance is provided is an insurance risk.

Insured value of the object of insurance. In the process of drawing up an insurance contract, the actual value of the insurance object, i.e. its insurance value, is estimated. Determining the insurance value of property is an insurance assessment. The value of property accepted for insurance purposes is also called insurance valuation. When calculating the size of the insurance assessment, the category of the insured, the type of insured property, and the insurance conditions established by law or rules play a significant role.

The insurance assessment in property insurance serves as the starting point for all subsequent calculations: determining the sum insured, insurance premium, insurance compensation. The sum insured may be set in the amount of the insurance estimate or part thereof.

As a basis for determining the insurance assessment, the book value of the property is often taken, taking into account depreciation (depreciation). Therefore, in the event of the complete loss of this property, the amount of the insurance assessment coincides with the amount of damage and insurance compensation, since this property is insured under the terms of insurance at the full book value, and the compensation is equal to the damage caused.

When insuring animals, their book value is also used to determine the insurance assessment, but the insurance indemnity is paid in the amount of 70% of the damage.

The insurance valuation of the fixed assets of public organizations is determined on the basis of the original (replacement) cost, i.e. without depreciation.

Insurance amount. The insured value of the object is the basis for calculating the sum insured, which is a sum of money determined by the insurance contract or established by law, on the basis of which the amounts of the insurance premium and insurance payment are determined.

When insuring property, the sum insured cannot exceed its actual value at the time of conclusion of the contract (insurance value). The parties may not dispute the insured value of the property specified in the insurance contract, unless the insurer proves that he was deliberately misled by the insured.

If the sum insured determined by the insurance contract exceeds the insured value of the property, then the contract is invalid by virtue of law in that part of the sum insured that exceeds the actual value of the property at the time of conclusion of the contract.

Insurance fee. The policyholder pays the insurer a certain insurance premium from the insured amount. In practice, the concept of insurance payment is often used instead of the term “insurance premium”, and abroad and in the activities of the insurance company “Ingosstrakh” - insurance premium. The insurance premium is the payment for insurance that the policyholder is obliged to pay to the insurer in accordance with the insurance contract or law.

The insurance premium is calculated on the basis of risk circumstances. When determining the insurance premium, the insurer takes into account the results of the analysis of a specific risk situation through a system of discounts and surcharges (surcharges) to the calculated insurance premium for the basic set of risk circumstances. Discounts and surcharges can be set as a percentage or a fixed amount of the insurance premium.

Insurance rate. The rate of insurance premium per unit of the sum insured or the object of insurance as a whole is called the insurance rate. This rate is determined by actuarial calculations. Insurance tariffs for compulsory insurance are established by law.

7.7. Main participants of insurance

Subjects of insurance. There are two main entities involved in the insurance process: the policyholder and the insurer. Their rights and obligations in compulsory insurance are regulated by current legislation, in voluntary insurance - by an agreement concluded on the basis of current rules. Other parties also take part in personal insurance: the insured, as well as the person in whose favor the insurance contract is concluded. Since in most cases a personal insurance contract is concluded in the event of events occurring in the life of the policyholder himself, the concepts of the insured and the policyholder, as a rule, coincide. In certain types of personal insurance, different persons act as the insured and the policyholder. Thus, in accident insurance at the expense of enterprises and organizations, the insured is the corresponding enterprise or organization, and the insured are its employees. In children's insurance and marriage insurance, the insured are children, the policyholders are parents and other relatives who have entered into an agreement in favor of the child. In property insurance, the insured is, as a rule, the owner of the property (organizations, citizens), as well as the tenant, the organization that accepted the property for storage, etc. The insurer can be an insurance organization registered in the prescribed manner and received a license to conduct the relevant types of insurance. Several insurers can participate in one insurance: when large risks are simultaneously accepted by a number of companies (in a certain share). In cases where contracts concluded by the insurer are reinsured, the reinsurer is also a party to the insurance relationship.

In addition to the above-mentioned legal entities and individuals directly related to each other by the terms of insurance, intermediaries - brokers and brokers - are involved in concluding contracts, which is typical for insurance provided by foreign companies.

The insured (in the practice of international insurance - the policy holder) is an economic entity or a citizen who pays insurance premiums and enters into specific insurance relations with the insurer. The policyholder is a person who has concluded insurance contracts with the insurer or who is the policyholder by virtue of law. The insured pays insurance premiums and has the right under the law (compulsory insurance) or under the contract (voluntary insurance) to receive compensation (sum insured) upon the occurrence of an insured event, as well as to ensure that it is received by another person (in liability insurance and personal insurance). In property insurance, the insured may be the owner of the property; a person who has received property for rent or use; an organization that accepts material assets for storage, as a pledge (pawnshop), etc. In personal insurance, insurers are citizens who have insured themselves, other persons (for example, children), as well as organizations that conclude insurance contracts for their employees. In liability insurance, the policyholder is any individual or legal entity that transfers to the insurer, on the basis of law or contract, its obligations to compensate for damage (harm) to third parties that may arise as a result of any activity of the policyholder (or his inactivity).

Thus, the insured (Insured, Assured) is a party to an insurance contract that insures its property interest or the interest of a third party. Under the insurance contract, the insured is obliged to pay the insurance premium to the insurer for assuming responsibility to compensate the insured for the loss in the event of an insured event. The policyholder may conclude an insurance contract both in his own favor and in favor of another person.

Replacement of the insured under the insurance contract. In the case of children's insurance, the policyholder (one of the parents or other relative of the insured child) who has concluded the contract may transfer the obligation to pay monthly premiums to another policyholder. To do this, a joint application of the first and second insurers is submitted to the insurance body. Under the terms of the contract, the second insured receives all rights under the contract, with the exception of the right to the redemption amount for those contributions paid by the first insured. Most (90%) of these contributions can be received by the insured child. Replacement is also possible in the event of the death of the insured. Then another relative of the child has the right to take over the duties of the second insured under the current contract. He will be able to receive the redemption amount only for those contributions that he paid himself.

Under property insurance contracts, a replacement is provided if the death of the insured has occurred. The agreement remains in force. The other owner of the insured property acts as the second insured.

Insurer - This is an economic entity created to carry out insurance activities, conducting insurance and in charge of the creation and expenditure of the insurance fund. An insurer is an economic entity of any organizational and legal form established to carry out insurance activities (insurance organizations and mutual insurance companies) that has received a license to carry out insurance activities. The subject of direct activity of the insurer cannot be production, trade-intermediary and banking activities. Thus, the insurer (Insurer, Underwriter) is an individual or legal entity that assumes under an insurance contract for a certain remuneration (insurance premium) the obligation to compensate the insured or other person in whose favor the insurance is concluded, the losses resulting from the occurrence of insured events stipulated in the contract.

Insurance relations and insurance interests. Insurance relations arise between the insured and the insurer, which include two groups of relations: the payment of contributions to the insurance fund and the payment of insurance compensation (sum insured). Both insurance operations express the economic relations between all participants in the insurance fund, and not just the relationship between the insured and the insurer. Insurance relations and insurance operations are based on the insurance interests (i.e., the measure of material interest in insurance) of the insured and the insurer.

To the interests of the insured include the interest of the owner of the property and the implied interest. The interest of the owner of the property may lie not only in the property itself, but also in liability for losses that may arise in connection with the possession of the property (loss of profit). The standard terms of an insurance contract usually provide for insurance coverage of only the property itself, but insurance of other interests related to property may also be included in the scope of insurance liability. In any case, the interest of the policyholder must not exceed the sum insured under the contract, and this does not give the right to double insurance. The implied interest is an insurance condition according to which the policyholder does not have to have an insurable interest in the insured property, but, in order to make a claim under the contract, he must have an interest in the insured property at the time of the insured event. The policyholder must also prove that at the time of property insurance he had such an interest or had in mind the occurrence of interest. The insured interest arises for the insured from the moment he is placed in such a position that he may suffer damage as a result of an accident on property at risk.

In addition to the policyholders themselves and insurers, additional insurance participants on the part of policyholders and insurance intermediaries, additional insurance participants on the part of insurers appear in insurance relations - co-insureds, co-insurers, reinsurers and reinsurers, retrocedents and retrocessions.

A co-insured is an insurer who, in co-insurance, retains a certain share of the risk on his liability, transfers the remaining share of the risk to another insurer (co-insurer). Under certain conditions, the insured may become a co-insured at the same time. If the policyholder has not insured the property in full, then he is considered as one of the insurers and is liable for the uninsured share. Sometimes insurers participating in co-insurance require the insured to be a co-insurer, that is, to bear a certain share of the risk on his responsibility.

A co-insurer is an insurer who, in co-insurance, accepts the uninsured share of the risk on his liability from the co-insured.

The reinsured (Reinsured), or assignor, is an insurer who has accepted risk for insurance and transferred it partially to reinsurance of another insurance (reinsurance) company. Thus, this insurer carries out a secondary placement of risk, i.e. transfers the risk to reinsurance. A secondary cedant (Retrocedant) is a retrocedant (or retrocedant), i.e. an insurer or reinsurer that transfers risks taken into reinsurance into retrocession (secondary reinsurance).

The reinsurer (Reinsurer), or the cessionary, the cessionary, represents the insurance or reinsurance company accepting risks in reinsurance. This is an individual or legal entity that accepts insurance risk for reinsurance, as a rule, through the mediation of an insurance (reinsurance) broker. With the help of the reinsurer, a secondary distribution of risk is achieved. An insurer may act as a reinsurer.

A retrocessionaire is a reinsurer who accepts risk from a retrocessionaire.

A reinsurance broker is a professional intermediary between two insurers, one of which wishes to transfer and the other to accept the risk for reinsurance.

A special group of business entities in the insurance market are professional reinsurers who specialize exclusively in reinsurance operations.

7.8. Insurance intermediaries

Concept of insurance intermediaries. Insurance agents and insurance brokers who promote insurance services as a product from the insurer to the policyholder can act as a link between the policyholder and the insurer in the insurance market. Organizationally, insurance intermediaries can function as partnerships or sole proprietors. Sometimes agents act as employees of insurance companies or their agents under a surety agreement. Insurance intermediaries are persons who are closer to policyholders and respond more quickly to changes in the market conditions for insurance services. The activities of insurance brokers and agents are usually regulated by national legislation.

Russian civil legislation contains definitions of the concepts of intermediaries in the insurance market. So, according to paragraph 1 of Art. 8 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation,” insurance agents are individuals or Russian legal entities (commercial organizations) that represent the insurer in relations with the policyholder and act on behalf of the insurer and on his behalf in accordance with the powers granted. According to the norm of paragraph 2 of the same article, insurance brokers are individuals or Russian legal entities (commercial organizations) permanently residing on the territory of the Russian Federation and registered in the manner established by the legislation of the Russian Federation as individual entrepreneurs, who act in the interests of the policyholder (reinsurer) or insurer (reinsurer) and carry out activities to provide services related to the conclusion of insurance (reinsurance) agreements between the insurer (reinsurer) and the policyholder (reinsurer), as well as with the execution of these agreements. When providing services related to the conclusion of these contracts, the insurance broker does not have the right to simultaneously act in the interests of the policyholder and the insurer. Insurance brokers have the right to carry out other activities related to insurance not prohibited by law, with the exception of activities as an insurance agent, insurer, or reinsurer. They also do not have the right to carry out activities not related to insurance (Clause 2 of Article 8 of the Insurance Law). The activities of insurance agents and insurance brokers to provide services related to the conclusion and execution of insurance contracts (except for reinsurance contracts) with foreign insurance organizations or foreign insurance brokers are not allowed on the territory of the Russian Federation (Clause 3 of Article 8 of the Insurance Law).

Thus, the organizational difference between insurance agents and insurance brokers is as follows. Insurance agents are representatives of insurance companies and act on the basis of their authority. In international practice, both individual legal entities or individuals and persons in the service of an insurance company (working under an employment contract) act as insurance agents. An insurance agent can represent one or more insurance companies and, under the terms of an agreement with them, acts only on behalf of these companies. An insurance broker is an independent individual or legal entity acting on the instructions of the policyholder (in direct insurance) or the insurer (in reinsurance). Often brokers are independent firms with their own capital and branches. They have complete freedom of action in relation to insurance companies. Their main task is to assist policyholders, insurers and reinsurers in concluding contracts. Brokers prepare the conditions for concluding such contracts and assist in their conclusion, and also take part in procedures for eliminating losses. On behalf of insurance companies, brokers can enter into insurance contracts on their behalf, which are then subject to replacement with insurance policies. In a number of countries, both brokers and agents require a special license to certify their professional training to conduct insurance operations.

Brokers as subjects of the insurance services market. The main function of a broker is to serve and protect the interests of its clients - the policyholder or insurer. The broker finds clients of his choice, but having found them, he acts on behalf of the client according to his instructions, since he is primarily responsible to his client. In particular, the broker informs the insurer about the interests of his client-insured and, if necessary, explains them, which is reflected in the insured's application for insurance, which is submitted to the insurer. The broker then obtains the insurance premium rates that are most acceptable to the client from the market and negotiates the insurance terms. Upon completion of the placement of the risk, the broker informs his client about this and presents a cover note - a special document confirming the placement of the risk, indicating premium rates, insurance conditions and a list of insurers who have signed up to insure this risk. After this, the broker provides services to his client in paying the insurance premium and receiving insurance compensation.

The broker's relationship with the insurer must be based on the principle of "due diligence", i.e. his actions must be honest and he must not hide anything from the insurer. The broker is obliged to provide the insurer with all available information allowing the latter to properly assess the degree of risk. After concluding an insurance contract, the broker continues to be responsible to the insurer for cash flow. Having received the premium from the client, the broker must, within a reasonable time and within the premium payment period specified in the slip - a special document reflecting mutual obligations under the insurance contract - transfer it to the insurer.

The task of the broker is to facilitate the proper fulfillment of the terms of the contract by the parties. As an independent person, the broker is not a party to the contract and, according to the common civil law on intermediaries, he is liable only for gross negligence and fraud.

The main functions of insurance agents are preparatory work and the conclusion of insurance contracts on behalf of the insurer, and the agent acts strictly within the authority granted to him by the insurance company. However, the functions of the agent, of course, are not limited to signing the contract on behalf of the insurer. The range of services they provide is much wider:

1) provision of information about the insurance company to policyholders;

2) advising policyholders on issues of insurance carried out by an insurance company; explanation to policyholders of the possibilities of concluding an insurance contract with various conditions and assistance in choosing the optimal version of the contract in order to maximize coverage of the insured risk and minimize the costs of policyholders to recover losses;

3) sale of insurance services to the insured - signing the insurance contract on behalf of the insurance company;

4) providing the insurer with accurate information about the risks accepted from the insured in order to regulate tariffs;

5) servicing the insured under an insurance contract after its conclusion.

The insurance agent acts as an attorney of the insurance company and performs the actions entrusted to him on behalf and at the expense of the insurer. The rights and obligations arising from the actions performed by the insurance agent, in accordance with the contract concluded by him with the insurance company, are acquired by the insurance company (principal). Since the insurance agent acts at the expense and in the interests of the insurance company, he is obliged to execute instructions strictly in accordance with its instructions.

An insurance agent can be an individual or legal entity that, on behalf of and on behalf of an insurance organization, is engaged in the conclusion of insurance contracts (sales of policies), draws up insurance documentation, and in some cases pays insurance compensation (within the established limits), collects an insurance premium. Relations between insurance agents, policyholders and insurance companies are built on a contractual basis, where the rights and obligations of the parties are stipulated.

7.9. Other organizers of the insurance procedure

In addition to the previously discussed participants in insurance relations, insurance includes its direct organizers: acquirers, collectors, average adjusters (adjusters), actuaries, emergency commissioners, surveyors, underwriters, insurance auditors and inspectors.

Acquirers and collectors of insurance premiums. The work of attracting new insurance contracts is called acquisition (from the Latin acquico - I acquire, I achieve). Accordingly, an acquirer is an insurance agent or other insurance worker involved in concluding new or renewing previously existing insurance contracts. In the Russian insurance system, acquisitions are carried out primarily by insurance agents.

Acquisition should be organized in such a way that the number of newly concluded and renewed contracts constantly exceeds the number of terminated and ending contracts. This is achieved with the help of appropriate financial incentives for the acquisitive activities of insurance agents.

Collection of insurance premiums is the acceptance of cash contributions (payments) for certain types of insurance and their delivery to credit institutions. This procedure is carried out by the insurance collector, who is the organizer of the insurance procedure.

For all types of voluntary property insurance and accident insurance, contributions are accepted upon registration of the contract and, as a rule, for the entire insurance period. For long-term types of life insurance, premiums are most often collected monthly during the period for which the insurance contract was concluded. Collection of payments for compulsory property insurance of citizens is carried out in accordance with established payment deadlines. The amounts of insurance payments collected by insurance agents are submitted to bank institutions: in rural areas - at least once a week, in urban areas - at least once every three days. Policyholders can pay regular premiums for certain types of insurance through communication agencies and credit institutions in cash (for example, according to payment books under long-term life insurance contracts). In modern conditions, non-cash payment of insurance payments has become most widespread.

In Russian insurance, insurance agents combine the duties of an acquirer and a collector, consisting in carrying out the necessary propaganda work among the population to involve citizens in insurance, drawing up concluded and renewed contracts, and ensuring regular payment of insurance premiums.

emergency commissioners. An authorized individual or legal entity of the insurer who is involved in establishing the causes, nature and amount of loss in the event of an insured event with insured property is called an emergency commissioner. The insurer appoints an emergency commissioner both within the country and abroad. The name, postal and telegraph address of the emergency commissioner are indicated by the insurer in the insurance certificate or policy when issuing it to the insured. The latter is obliged, upon the occurrence of an insured event, to immediately contact the emergency commissioner for help and assistance.

The accident commissioner acts in strict accordance with the instructions that the insurer sends him: inspects damaged property; establishes the nature, causes and amount of the loss incurred; at the direction of the insurer, it sells damaged property, searches for missing property, and collects information about the local insurance market. On behalf of the insurer, the emergency commissioner can pay losses at the expense of the insurer up to a certain amount, control loading and unloading operations and carry out the account of the cargo. Based on the results of the work carried out, the emergency commissioner draws up an emergency certificate or report.

Adjusters. In marine insurance, the calculation of general average losses and their distribution between the ship, freight and cargo in proportion to their value is called an average. In many countries, the functions of average adjusters involved in preparing average calculations are usually performed by specialized firms. In Russia, this function is carried out by the Association of Dispatchers at the Chamber of Commerce and Industry of the Russian Federation (RF CCI). When performing their functions, domestic adjusters are guided by the KTM, as well as the Regulations on the Bureau of Adjusters at the USSR Chamber of Commerce and Industry (1971). Abroad, the average adjuster, as a rule, is appointed by the shipowner, in the Russian Federation - by the Presidium of the Chamber of Commerce and Industry.

The dispatcher begins emergency proceedings only if there is an application from the interested party (shipowners, cargo owners, insurers) with the attachment of all documents relating to the accident and confirming the amount of losses and expenses. Based on the submitted documents (extracts from the ship's log, copies of the sea protest, emergency signature, invoices for the work performed, copies of inspection reports of the vessel and cargo, copies of bills of lading, etc.), the average adjuster makes a reasoned decision - to admit or not to admit the existence of general average. In this case, the adjuster acts according to a certain scheme: first he explains why he recognizes this or that case as a general accident, then he provides a calculation of the general and private accident; in the section on indemnity capital the total value of the property involved in covering general average is shown and the indemnity dividend is calculated; The calculation ends with an average balance sheet.

Adjuster (adjuster) is a specialist in the field of drawing up average calculations (on the distribution of losses between the ship, cargo and freight in connection with general average). In a broader sense, an adjuster is an individual or legal entity representing the interests of the insurance company in resolving issues related to the settlement of the stated claims of the insured in connection with the insured event. He carries out a risk assessment after the insured event (risk realization) and seeks to reach an agreement with the insured on the amount of insurance compensation payable, based on the obligations of the insurer taken under the insurance contract concluded by him. The adjuster analyzes the facts and risk circumstances of the insured event, draws up an expert opinion for the insurer based on the materials of this analysis, carries out work in the field of risk management, and performs the functions of an emergency commissioner. The activity of an adjuster can be carried out within the framework of a structural subdivision of an insurance company or a specialized organization (agent) of an insurer operating on the basis of an appropriate agreement for the examination and liquidation of losses.

Actuaries. An insurance mathematician who owns the theory of actuarial calculations and is engaged in developing methodology and calculating insurance rates, calculations related to the formation of a reserve of insurance premiums for long-term types of insurance, determining the amount of redemption and reduced insurance amounts, as well as loans under life insurance and pension contracts, is called actuary. The specialty of an actuary arose in the XNUMXth century. in connection with the development of the insurance business in European countries. The activity of the actuary had a certain influence on the formation of demographic statistics, especially on the measurement of mortality and the development of mortality tables. Actuaries are united in the relevant international association. The Institute of Actuaries, which has international recognition, operates in London.

The insurance legislation of a number of countries requires an actuary certificate, which certifies the level of professional knowledge of a specialist in this field and allows professional consulting and cooperation with insurance companies. An actuary certificate is issued after a candidate has successfully passed a qualifying examination at the National Association of Actuaries and/or at the London Institute of Actuaries (convertible diploma).

Sometimes actuaries are called underwriters (from the English underwriter - subscriber) - these are persons authorized by insurance (reinsurance) companies to take on insurance (in reinsurance) risks. Underwriters must have the appropriate knowledge and practice to determine the degree of insurance risk, insurance premiums and insurance conditions. The underwriter is responsible for the formation of the insurance (reinsurance) portfolio of the insurer.

Surveyors. In marine insurance, a surveyor is an expert who inspects ships and cargoes and gives an opinion on their condition, the amount of damage in case of accidents, the seaworthiness of the ship, etc. The surveyor can be invited by the shipowner, charterer, cargo owner, insurance and classification society . The surveyor inspecting the insured objects must have the necessary knowledge and experience and competently draw up an inspection report of the corresponding object or draw up an accident certificate, bearing in mind that these documents form the basis for resolving possible litigation or related to the payment of losses. The surveyor gives an opinion on the condition of the property being inspected, determines the nature and extent of its damage, etc. In the Russian Federation, the functions of the surveyor are carried out by emergency commissioners.

In a broader sense, a surveyor is an inspector or agent of an insurer who inspects property accepted for insurance. The surveyor performs the functions of risk management. Based on the conclusion of the surveyor, the insurer makes a decision on property insurance by drawing up an appropriate contract. Based on the information received from the surveyor, the insurer determines the tariff rate. In foreign practice, specialized firms in fire safety, labor protection, etc. act as a surveyor, interacting with the insurer on a contractual basis.

Topic 8. SECURITIES MARKET

8.1. Financial market and its segments

Consideration of the fundamentals of the theory of the securities market will begin with the definition of the place and functions of the securities market, as well as the definition of the concept of the financial market as more general than the concept of the stock market or the securities market. The financial market has historically been divided into the credit market, or loan capital market, and the securities market, or, as some authors have called it, the fictitious capital market.

The main function of the securities market as part of the economic system is to ensure the flow (movement) of monetary resources from one economic entity to another, from one sector of the economy to another. Such a movement of monetary resources can be associated both with the ongoing processes of distribution and with the processes of production (and, possibly, exchange). In any case, the operation of the mechanism of this market is ensured by the presence of a special form of existence of monetary resources - securities and the activities of special (formed as part of this system) economic entities. The main active target function of the financial market (which determines its content) is the fast and cheapest possible supply of economic entities with the monetary resources they need. In other words, we state the participation of the financial market (including the securities market) in performing the function of “financing the economy.” Financial market - the sphere of distribution (placement) of monetary resources, which occurs under the influence of supply and demand for monetary resources and other factors, the sphere in which relative prices for monetary resources of various qualities (currency, maturity, additional requirements for the borrower) are formed.

Securities market - a part of the financial market and the financial sector, which, along with its other segments, organizes the transfer of monetary resources between agents that demand and supply them, and participates in the formation of relative prices for these resources. Moreover, the method of moving money resources within the securities market is associated with the transformation of money resources into the form of securities with signs of public reliability and negotiability, so that the movement of money resources within this market is converted into cyclical forms with a continuous process of pricing in relation to securities. The functions of the securities market as part of the economic system include:

- allocation function - the function of efficient allocation of resources in the economy through participation in intersectoral, intersectoral and intercompany overflow of capital;

- function of distribution (redistribution) of income in the economy;

- the function of accumulation and mobilization of free funds and savings of the private sector of the economy in the interests of macroeconomic accumulation, ensuring the transformation of savings into investments;

- function of concentration and centralization of capital, consolidation of business;

- the function of determining the degree of effectiveness of the direction and use of funds;

- information function;

- the function of the redistribution of property rights and the division of spheres of influence between the owners of monetary capital;

- the function of export-import of capital.

8.2. Classification of types of securities

The classification of securities helps to reveal mutual connections in concepts, types of securities and the rules for their circulation on the basis of certain principles and express these connections in the form of a logically constructed system. The classification of securities serves to determine the common and distinctive features of various types of securities, a better understanding of the essence of the formation and organization of the securities market, the essence of financial and economic processes that underlie its functioning.

Various securities can be classified according to a number of criteria:

1) types (economic entity) (government bonds, bonds, bills, checks, deposit and savings certificates, bank savings books to bearer, single and double warehouse certificates (and their parts), bills of lading, shares, privatization securities, options);

2) the form of the issue and the method of registration of the issue (classes that include emissive and non-emission securities);

3) a sign of the issuer's organizational and legal affiliation (groups consisting of government and corporate securities);

4) the functional purpose of securities (categories, including debt, equity, payment and commodity securities);

5) the form of existence and the form of fixing the rights of the owner (categories such as documentary and non-documentary securities);

6) the method and procedure for the transfer of ownership (types in which the security is presented as registered, order or bearer);

7) terms of circulation (short-, medium- and long-term; unlimited);

8) type of income (profitable, non-profitable, interest, dividend);

9) the nature of circulation of securities (stock and commercial);

10) stages of securing the rights of the owner (primary and derivative);

11) type of use by issuers and holders (investment, or capital and commercial).

Classification by types (economic essence) of securities. A share is an issuance security that secures the rights of its owner-shareholder to:

- participation in the management of a joint-stock company (JSC);

- receipt of a part of the JSC's profit in the form of dividends;

- receiving a part of the property of the joint-stock company remaining after its liquidation.

A bond is an issue-grade security that certifies the owner’s right to receive from the issuer of the bond within the period specified in it the nominal value - the amount of the principal debt paid upon its repayment in cash or other property equivalent. A bond may also provide for the right of its owner to receive income in the form of interest accrued to the face value of the bond, or other property rights (see Article 2 of the Federal Law “On the Securities Market” and Article 816 of the Civil Code of the Russian Federation.)

Government bond (Article 817 of the Civil Code of the Russian Federation). - the legal form of the certificate of the state loan agreement; it certifies the right of the lender (i.e., the owner of the bond) to receive from the borrower (i.e., the state) funds lent to him or, depending on the terms of the loan, other property), established interest, or other property rights within the terms stipulated by the terms of the issue loan in circulation.

A bill of exchange is an unconditional written promissory note drawn up in accordance with the form established by law, issued by one party (the drawer) to the other party (the holder of the bill) and paid for by stamp duty. Let's clarify the definition of a bill.

A bill of exchange is a document, the contents of which are precisely established by law, certifying the unconditional abstract monetary obligation of one agent and the rights of another agent arising from it and having two varieties provided for by law - a promissory note and a bill of exchange.

A promissory note (solo bill) is a written document containing a simple and unconditional obligation of the drawer to pay a certain amount of money to the holder or to his order at a certain time and in a certain place.

A bill of exchange (draft) is a written order of the drawer (drawer) addressed to the payer (drawee) on the payment of the amount of money indicated in the bill to the holder of the bill (payer).

A bill of exchange is an unconditional obligation of another payer (and not the drawer) specified in the bill to pay the amount of money received on loan upon the expiration of the period stipulated by the bill (Article 815 of the Civil Code of the Russian Federation).

A commercial bill is a document through which a commercial loan is issued in the form of a deferred payment for goods sold. The scope of its circulation is limited, since it serves only the process of moving goods to the market and conditions the credit obligations issued to complete this process by replacing the additional capital required at the time of circulation.

A financial bill is a variety, a surrogate for a promissory note, issued by a credit institution (drawer) and transferred to the person who made the full payment (bill holder), corresponding to the amount of the bill. This security can be considered as an instrument resulting from the execution of loan transactions in cash and serving as a means of payment in settlements, where it acts exclusively as a "foreign" bill.

Savings (deposit) certificate - a written certificate of a credit institution on a deposit (deposit) of funds, certifying the right of the depositor (certificate holder) to receive the amount of the deposit (deposit) and interest on it after the expiration of the established period.

A bearer savings book (Article 843 of the Civil Code of the Russian Federation) is a legal form of certifying a bank deposit agreement (deposit) with a citizen and depositing funds into his account, according to which the bank that accepted the amount of money received from the depositor or received for him (deposit ), undertakes to return the amount of the deposit and pay interest on it to the person who presented the savings book.

Savings (deposit) certificate (Article 844 of the Civil Code of the Russian Federation) - a security certifying the amount of a deposit made to the bank and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in the certificate from the bank that issued the certificate, or in any branch of this bank (in practice, savings certificates are distributed among citizens, and deposit certificates - among legal entities).

Housing certificates - securities denominated in units of the total area of ​​housing and having an indexed nominal value in monetary terms, giving the right to their owners to demand from the issuer their redemption by providing ownership of residential premises, the construction (reconstruction) of which was financed from the funds received from the placement specified securities, or by paying the indexed cash value of the certificates.

Check (Article 877 of the Civil Code of the Russian Federation) - a security containing an unconditional order of the drawer of the check to the bank to pay the amount indicated in it to the holder of the check.

A simple warehouse certificate is a security to bearer, drawn up in the form of a written document established by law and confirming the presence of goods in a warehouse.

Double warehouse certificate - a security consisting of two parts: a warehouse certificate and a pledge certificate (warrant), which can be separated from one another and become independent securities as a result.

A double warehouse certificate consists of two parts - a warehouse certificate and a pledge certificate (warrant), which can be separated from each other, and each separately is a registered security.

Warehouse certificate - a non-issued security issued by a warehouse in paper form and confirming the fact that the goods are in the warehouse.

Warehouse certificate (Article 912-917 of the Civil Code of the Russian Federation) - a security document confirming the acceptance of goods for storage.

A bill of lading is a security that is a type of document of title that gives its holder the right to dispose of the cargo and contains the terms of the contract for the carriage of cargo by sea.

A mortgage is a registered security certifying the following rights of its owner:

- the right to receive performance under a monetary obligation secured by a mortgage, without presenting other evidence of the existence of this obligation;

- the right of pledge on property burdened with a mortgage.

Mortgage is an economic institution that regulates relations arising from one of the types of property pledge, which serves as security for the fulfillment of the main monetary obligation by the debtor - the mortgagor to the creditor - the pledgee, who acquires the right in the event of failure by the debtor to fulfill the obligation secured by the pledge to receive satisfaction at the expense of the pledged real estate.

In the process of developing the institution of mortgages in Russia, a slightly different, but also multi-level model was developed, in which mortgage-backed bonds act as a similar type of securities (see Article 2 and Chapter 2 of the Federal Law of November 11, 2003 No. 152-FZ "On mortgage-backed securities"). This Law also introduced the concept of a “mortgage participation certificate” - as a registered security certifying its owner’s share in the right of common ownership of the mortgage coverage, the right to demand from the person who issued it proper trust management of the mortgage coverage, the right to receive funds received in execution obligations, the requirements for which constitute mortgage coverage, as well as other rights provided for by the Law “On Mortgage-Based Securities”.

Issuer's option - an issuance security that secures the right of its owner to purchase a certain number of shares of the issuer of such an option at the price specified in the issuer's option within the period specified in it and (or) upon the occurrence of the circumstances specified in it.

The options themselves (and not the issuer's options) are currently regulated in Russia (before the law "On Derivative Securities" was issued). Regulations on the activity of organizing trading in the securities market, approved by order of the Federal Service for Financial Markets of December 15, 2004 No. 04-1245/pz-n. However, from the definitions contained in this Regulation (see clause 6.1) it follows that these objects of law are not securities, but are types of futures transactions. At the same time, the call option (deliverable option agreement (contract) for purchase) is defined as follows: an agreement a contract that provides for the obligation of one of the parties (a person obligated under the option agreement to the contract) to pay cash depending on changes in prices for securities, providing for also the obligation of this party to sell to the other party (the person entitled under the option contract) the relevant securities at its request, which may be declared in a certain period or on a certain date in the future at a price determined at the conclusion of the option contract.

A put option (deliverable option agreement (contract) for sale) is defined in a similar way: an agreement is a contract that provides for the obligation of one of the parties (the person obligated under the option agreement to the contract) to buy from the other party (the person entitled under the option agreement to the contract) the relevant securities securities at its request, which can be declared in a certain period or on a certain date in the future at a price determined at the conclusion of the option agreement of the contract.

The same paragraph of the document under consideration contains a third definition. A settlement option agreement (contract) is proposed to be considered an agreement that provides exclusively for the obligation of one of the parties (the person obliged under the option agreement to the contract) to pay money depending on changes in prices for securities or on changes in the values ​​of stock indices.

Classification based on the organizational and legal affiliation of the issuer. The right to issue securities is legally assigned both to the state (represented by the Ministry of Finance of the Russian Federation, the Bank of Russia and other entities) and to legal entities registered in the territory of the Russian Federation. On this basis, securities can be divided into groups, which are represented by government and corporate securities.

In turn, the group of government securities is formed by three subgroups - federal (issued by state authorities of the federal level), subfederal (issued by the subjects of the Federation) and municipal (issued by local governments) securities.

In relation to the Russian market, government securities include GKOs (government short-term bonds), OFZs (federal loan bonds), government savings bonds, bonds of an internal government foreign currency loan, and bonds of constituent entities of the Russian Federation. As part of the consideration of government securities, they also study securities issued by local governments (municipal securities).

Classification according to the method and order of transfer of ownership. According to civil law, there is a certain procedure for fixing and transferring ownership of securities. The subjects of the rights certified by a security (see Article 145 of the Civil Code of the Russian Federation) may be the person named in it, its bearer, as well as the named person who himself can exercise these rights or appoint another person by order. On this basis, registered securities, bearer securities and order securities are in circulation on the securities market.

Due to the fact that the classification according to the subjects indicated in Art. 145 of the Civil Code of the Russian Federation, does not define an essential sign of separation between the designated securities, we will consider the method of transfer of ownership of securities as the basis for the corresponding classification. On this basis and in accordance with Art. 145 and 146 of the Civil Code of the Russian Federation, securities are divided into the following types:

1) registered securities - securities, the rights of holders of which are confirmed by the name (name) of the owner entered in the text of the security and (or) an entry in the registration book (register) of securities, and are transferred in the manner established for the assignment of claims (cession); registered securities include debt and equity securities (except for a bearer bank book), payment and title documents, options, mortgages, such as registered shares and bonds, deposit and savings certificates, mortgages, warehouse certificates;

2) bearer securities - securities, for the exercise and confirmation of the rights of the owner of which it is sufficient to simply present them, and for the transfer to another person of the rights certified by such securities, it is sufficient to hand over the security to such a person; bearer securities include all securities admitted to circulation on the territory of the Russian Federation, except for options and mortgages. Examples: bearer shares and bonds, bearer checks, simple warehouse receipts (warrants), bearer bills of lading;

3) order securities - securities, the rights of the holders of which are confirmed both by the presentation of these securities and by the presence of orders and endorsements in them, while the rights under the order security are transferred by making an endorsement on this paper - endorsement; Order securities include payment and title securities, such as a bill of exchange, a bill of lading, a double warehouse receipt and its parts.

It is necessary to pay attention to the fact that some types of securities can be issued both in registered and in bearer form. These include, for example, corporate bonds (see clause 3, article 33 of the Federal Law "On Joint Stock Companies").

The circulation of securities is a procedure for concluding civil law transactions that entail the transfer of ownership rights to them.

Registered, order and bearer securities differ from each other in the order in which the rights certified by the security are transferred. The most simply transferred rights are certified by a security to a bearer. To do this, simply hand over the security to the new owner.

The rights certified by a registered security shall be transferred in accordance with the procedure established for the assignment of the right of claim (cession). The person transferring the right under a security shall be liable for the invalidity of the relevant requirement, but not for its non-performance.

Thus, the person who sold the registered security is liable only if this security turned out to be counterfeit. Realization of the rights certified by a registered security is carried out by presenting claims against the person who issued the registered security.

The exercise and transfer of rights, certified by registered securities, occurs by fixing the rights in a special register. In this case, the fixation of rights can be carried out using paper and/or electronic media. Hence, the form of issue of securities can be documentary and non-documentary. There are two ways of transferring and fixing the rights to a registered documentary and non-documentary security to the acquirer.

The right to a registered documentary security passes to the acquirer:

- if the registration of rights to securities is carried out with a person carrying out depositary activities, with the deposit of a security certificate with the depositary - with the help and from the moment of making a credit entry in the acquirer's securities account;

- if accounting of the acquirer’s rights to securities is maintained in the register maintenance system - with the help and from the moment of transfer of the securities certificate to the acquirer and with the help and from the moment of making a credit entry on the personal account of the acquirer.

The right to a registered paperless security passes to the acquirer:

- in case of registration of the acquirer's rights to securities in the depository - with the help of and from the moment of making a credit entry on the acquirer's depo account;

- in the case of recording the acquirer’s rights to securities in the register maintenance system - with the help of and from the moment of making a credit entry to the acquirer’s personal account.

In a different way, the transfer of rights on an order security is carried out. The rights to these securities are transferred by making an endorsement on them, called an endorsement. The endorser (the seller of the order security) is responsible not only for the existence of the right, but also for its implementation. When making an endorsement, only the signature of the endorser is sufficient.

Thus, the owner of an orderable security may demand the exercise of his rights under this security, both from the person who issued it, and from any person in the chain of endorsements.

Classification by terms of circulation. Circulation of securities may be clearly limited in time or not be limited due to the specific nature of the relationship between the person who issued the security and its holder (investor). Debt securities based on loan relationships are, with very few exceptions, term securities. Such securities can be issued with a maturity of up to one year, and then it is customary to classify them as short-term securities. Securities with a maturity of one to five years are called medium-term, and securities that have a maturity of more than five years are called long-term. Perpetual debt securities (bonds) are called perpetuities.

The circulation period of equity securities is usually limited by the life of the issuing company. It is advisable to define such securities as perpetual. These types of instruments include shares of joint stock companies (with the exception of convertible preferred shares, the circulation period of which is limited by the conversion period).

8.3. Regulation of the securities market

The federal executive body exercising control and supervision functions in financial markets is the Federal Service for Financial Markets (FSFM). This service represents a very special element in the system of public authorities. This feature is due to the fact that, unlike other federal services that are subordinate to ministries, the FFMS is directly subordinate to the Chairman of the Government of the Russian Federation. Some areas of activity of other liquidated government structures were transferred to the new regulator. Thus, the functions of control and supervision over the formation and investment of pension savings were transferred from the Ministry of Finance of the Russian Federation to the Federal Financial Markets Service, from the liquidated Ministry of Antimonopoly Policy of the Russian Federation - control over commodity exchanges and the derivatives market, from the Ministry of Labor and Social Development of the Russian Federation - supervision over non-state pension funds .

The FFMS carries out its activities directly and through territorial bodies. For this purpose, the territorial bodies of the abolished FCSM were transferred to the service.

Decrees of the Government of the Russian Federation of April 9, 2004 No. 206 "Issues of the Federal Financial Markets Service", of June 30, 2004 No. 317 "On Approval of the Regulations on the Federal Financial Markets Service" and the version of the Federal Law of June 29, 2004 " On the Securities Market" contains a short list of functions of the financial market regulator, which include the following:

1) implementation of state registration of issues of securities and reports on the results of the issue of securities, as well as registration of prospectuses of securities;

2) ensuring the disclosure of information on the securities market in accordance with the legislation of the Russian Federation;

3) exercise of control and supervision functions in relation to issuers, professional participants in the securities market and their self-regulatory organizations, joint-stock investment funds, management companies of joint-stock investment funds, mutual investment funds and non-state pension funds and their self-regulatory organizations, specialized depositories of joint-stock investment funds, mutual investment funds and non-state pension funds, mortgage agents, managers of mortgage coverage, specialized depositories of mortgage coverage, non-state pension funds, the Pension Fund of the Russian Federation, the state management company, as well as in relation to commodity exchanges, credit history bureaus and housing savings cooperatives.

Pending the proposed amendments to the current legislation, the Federal Service for Financial Markets is also entrusted with the functions of managing and ensuring the work of the Commission on Commodity Exchanges.

Additionally, the FFMS provides:

- summarizing the practice of applying the legislation of the Russian Federation in the area of ​​its competence and submitting proposals to the Government of the Russian Federation for its improvement;

- development in accordance with the established procedure of draft legislative and other regulatory legal acts;

- organizing research on the development of financial markets. The creation in Russia of a market regulation system based on the idea of ​​mega-regulation is a natural result of the formation of a financial market with a high degree of centralization. In this case, the introduction of a single regulatory body is seen by experts as a justified step. If we talk about global experience, we will not find a unified approach to building a financial market regulation system. For example, in six EU countries (France, Spain, Portugal, Italy, Greece and the Netherlands), regulation is carried out by an independent body engaged exclusively in the supervision of exchanges and operating on the model of the American Securities and Exchange Commission (SEC - Securities and Exchange Commission). . In eight countries (Great Britain, Belgium, Luxembourg, Germany, Austria, Denmark, Sweden and Finland) this function is performed by a mega-regulator.[36]

In the United States, in addition to the Securities and Exchange Commission, the following have regulatory powers in the financial market: the Commodity Futures Trading Commission (CFTC); Bureau of the Comptroller of the Currency (regulated by commercial banks chartered by the federal government); State Banking and Insurance Commissions (regulated by depository institutions registered by state governments); National Credit Union Administration (NCUA); Federal Deposit Insurance Corporation (FDIC) (regulated by commercial banks, mutual savings banks, savings and loan associations); Federal Reserve System (FRS; FRS; Fed) (object of regulation - all depository institutions); Bureau of Supervision of Savings Institutions (regulated by savings and loan associations).

Topic 9. CREDIT AND BANKS

9.1. History of the development of the banking system in Russia

The progressive reforms of Peter I, aimed at fundamental changes in all areas, including trade and finance, led to the need to form a credit system. Production begins to come to the fore, absorbing merchant capital. Fertile ground is being created for the development of certain types of industry. At that time, the very word "credit" (from the German "credit") with the meaning "authority" came into the Russian language. A credit (loan) system emerged, headed by a loan bank. And from 1729, after the death of Peter I, a system of private credit developed, which gave merchants the right to exchange bills. However, the death of the emperor played a disastrous role, slowing down the development of credit institutions for several decades.

It was only in 1731 that a “project on a state-owned bank” was prepared, submitted to the Commission on Commerce, in which it was planned to provide loans to banks, merchants and landowners at 6% per annum for a period of one year, provided for the right to rewrite the loan for the next year. By the decree of Elizaveta Petrovna dated May 13, 1754, from which the history of banking in Russia begins, the State Noble Loan Bank was created with the aim of "reducing interest-bearing money throughout the state." It consisted of virtually independent estate banks: the Noble Loan Bank with offices in St. Petersburg and Moscow and the Merchants' Bank in St. Petersburg (Bank for the Board in the St. Petersburg Port of Commerce).

The Noble Loan Bank was founded on the initiative of P. Shuvalov, and initially only Great Russian nobles could use its services. The Noble Bank issued loans in the amount of no more than 1000 rubles. one borrower for a period of one year secured by gold, silver, precious stones, villages and villages together with the peasants. Nobles and landlords basically took out a loan to pay off their debts, not thinking about its return, trying only to get an installment plan for debts. They considered loans as another way to cheat and profit, did not return the money, deceiving the banks.

This situation had a direct impact on the activities of the bank, which was forced after a while to stop issuing loans and constantly delay the return of loans already issued.

The merchant bank also had a sad experience due to the insufficient culture of the population. The reason for this was the mentality of the merchants and industrialists of that time, who conducted foreign trade under the motto “if you don’t cheat, you don’t sell.” However, the activities of the Merchant Bank were more successful than the Noble Bank, since its borrowers invested the money they received in trade, sometimes risky, put it into circulation, receiving significant profits and at least sometimes repaying the loans. Already in 1786, the Noble Loan Bank in St. Petersburg was renamed the State Loan Bank, which began to issue loans to the nobility for 20 years and to cities for 22 years.

In case of failure to pay on time, the mortgaged estate was placed in trust until the loan expired or until the entire debt was repaid.[37] Demand for loans from the new loan bank exceeded supply. Loans were distributed left and right, which led to the fact that most of them were never repaid.

Banks, based on their nature, since their inception have been focused on working with clients, bringing them and themselves income, which could only be obtained through trade or production. But in XNUMXth century Russia this essential condition was grossly violated by political decisions that focused primarily on lending to nobles and landowners, and then to merchants and other merchants. In combination with the above, this resulted in an unsuccessful start to the spread of credit institutions in Russia. The commercial and industrial class mastered innovations with difficulty, turning to credit with great reluctance. It should be specially noted that this was typical not only for Russia, but also for Western Europe, where until the last quarter of the XNUMXth century. even in such large economic centers as London and Hamburg, it was believed that business should be conducted on their own capital. This is now a loan is not considered an indicator of the insolvency of the borrower, and even, on the contrary, has become a way to increase the reputation, of course, only in the case of its timely and full return.

Thus, the banking system of Russia in the XNUMXth century, or, more precisely, the credit system, developed at a low pace, gaining credit and money turnover.

At the beginning of the 38th century. on the initiative and with the full assistance and support of the state, the first class-type credit institutions began to emerge: reserve money funds, secular borrowed capital, communal cash offices, specific banks, savings banks for state peasants, rural and volost banks, as well as savings and loan banks.[ XNUMX] The latter were created in order to provide individuals participating in them with the opportunity to make savings, use loans, and, in the most extreme cases, benefits. The casses were engaged in issuing loans to non-members, under the guarantee of one or two members of the cassette, depending on the size of the loan. The remaining funds were usually issued to members of the cash desk against the security of securities and were spent on the purchase of securities of public or private companies.

The emergence of all of the above credit institutions is associated with the large-scale development of the lands of Novorossiya. In this regard, it is worth mentioning the establishment in 1814 on the island of Ezel in Novorossiya of the first peasant bank, which was primarily engaged in issuing targeted loans for specific, mainly agricultural, purposes. In the 20s of the XIX century. The first banking houses in Russia began to appear, for example, Juncker and Co., founded in 1818 in Moscow. In the 30-40s, the first merchant banks appeared. Their number constantly increased and by 1857 reached 150.[39] In the pre-reform era, the progressive development of the banking sector of the country's economy forced the government to actively intervene in the life of the financial and credit system, limiting and strictly regulating the work of its institutions. Moreover, until the beginning of the 90s of the XIX century. There was no special banking legislation in Russia. The restrictions were random; their purpose was to somehow streamline new trends.

At the end of the 30s of the XIX century. The government took the initiative to widely introduce small credit institutions like banks into the peasantry. Thus, in 1837, communal cash funds were created on the state estates of the former Belotok region, the capital of which was intended for interest-free lending to peasants for a period of up to three years for the purchase of food and seeds.[40] In the same year, banks for appanage peasants were also opened. In general, the creation of class-type credit institutions marked the beginning of the massive development of banking among the peasantry, giving peasants the right to use credit and receive loans, which in itself indicated the expansion of civil and economic freedoms of the dependent part of the country's population.

In connection with the preparation and implementation of the reform of 1861 in Russia, the term "credit", which is used not only in the economic sphere, but also in criminal law, is fixed on a par with the already current terms "loan" and "loan". After the abolition of serfdom by the Manifesto of February 19, 1861, and with the beginning of the reform of the banking system of Russia, credit institutions of the estate type continued to develop in the form of rural and volost banks.

A truly real banking system in Russia began to take shape in the second half of the 70th century. (from the 50s), when capitalist relations were established in the country. In the late 60s and early 1862s, the old banking firms of Stieglitz, Jacobi, and Zhadimirsky ceased to exist. They were replaced by new ones - Meyer, Gunzburg, Kaiger, etc. During 1863-41. the number of city banks tripled, and the amount of their capital almost quadrupled.[1864] In 42, with the active support of the Minister of Finance M. X. Reitern, the first commercial bank was created in Russia. The largest researcher of the history of joint-stock commercial banks in Russia, I. I. Levin, wrote: “For joint-stock commercial banks, M. X. Reitern did more than any other of his successors.”[1868] Since XNUMX, joint-stock commercial banks began to be established everywhere.

In a matter of years, the Russian banking system has come out of a state of hibernation for centuries, has taken a giant step forward. As a result of the banking reform, an extensive credit system was created, banks of a new type were organized, qualitatively different banking operations appeared and began to develop rapidly. The banking system included: the State Bank, commercial joint-stock banks, mortgage banks, mutual credit societies, city banks, credit cooperation, pawnshops, including in the form of joint-stock companies.

In conditions of crisis and impoverishment of the countryside, another element of the banking system appears - credit cooperatives, which arose in Russia almost simultaneously with their formation in Germany in the 50s of the 60th century. The first such institutions in Russia were created back in the 43s of the XNUMXth century, mainly in the form of savings and loan partnerships similar to the credit institutions of the same name that operated in Germany (Schulze-Delitzsch partnerships). Formally, anyone living in the area where it operated could join the partnership. The capital consisted of shares, and loans were issued on personal trust and secured for a period of up to nine months with a three-month deferment. Net profit was distributed among members according to the size of the share.[XNUMX]

In the 90s of the nineteenth century. the participation of the banking system in the economic life of the country became more active, which was accompanied by economic recovery and rapid industrial growth. The main activity of banks was lending to commodity turnover. Banks embarked on the path of financing industry, which marked the beginning of the merging of banking and industrial capital. These initiatives were so successful that by the end of the 90s, banks began to unite into banking groups in order to jointly finance the industry. However, the economic crisis of 1899-1903. dealt a sensitive blow precisely to those industries with which banks were most closely associated. Nevertheless, banks continued to finance patronized enterprises even at a loss. The main direction of the development of banking operations of that time was the lending of trade turnover, which led to the expansion of other forms of lending. Banks began to widely carry out commodity-commission transactions and trade at their own expense.

Having overcome the economic crisis, the Russian banking system developed, reformed, and was replenished with new financial institutions. In this regard, in 1911, the Moscow People's Bank was created, designed to strengthen the ties of small-scale credit cooperatives with the open market. The bank's shareholders were small credit institutions and individuals involved in order to strengthen the financial basis of the bank's activities, which included both short-term purely banking (accounting for bills, issuing loans, making payments and settlements) and intermediary operations with a variety of goods. The Bank also had the right to issue term bonds in its own name and to issue them instead of money for discounting bills secured by pledges and for secured loans.[44]

In the 1917th century Russia entered with a relatively developed credit system, in which the leading role belonged to the State Bank and joint-stock banks. But already in 45, during the process of nationalization, the share capitals of private banks were confiscated and became state property, which, in turn, led to the formation of a state monopoly on banking. Subsequently, the former private banks and the State Bank of Russia merged into a single State Bank of the RSFSR, mortgage banks and credit institutions serving the middle and petty urban bourgeoisie were liquidated, and transactions with securities were eventually banned. The banking system was organically integrated into the command-administrative management model and was administratively subordinate to the government and, above all, to the Ministry of Finance.[1987] This is how a banking system developed in the USSR, based on the following principles: state monopoly on banking; the merger of all credit institutions into a single national bank, concentrating in it the entire monetary turnover of the country. Listing the negative aspects of this banking system, which existed until XNUMX, the main ones should be noted: loss of banking specialization, monopoly and uncontrolled emission of credit and bank money.

On December 2, 1990, the Laws "On the State Bank of the USSR" and "On Banks and Banking Activities in the RSFSR" were adopted. Thus, for the first time in many years, the activities of banks received a legislative basis. Banks were declared independent legal entities, economically independent institutions, not liable for the obligations of the state (just as the state is not liable for the obligations of banks). The institutional foundations of the new banking system began to be laid.[46]

At the top level of the system is the Bank of Russia, at the second - a wide network of commercial banks. The Bank of Russia must decide on the implementation of state policy in the field of money circulation and credit, in connection with which it is exempt from operations with other clientele, except for commercial banks. It is also a single body coordinating the activities of credit institutions: it performs many functions of managing the processes of organizing credit and settlement financial services for the state. However, the Bank of Russia performs control and supervisory functions only in relation to banking institutions and institutions that specialize in purely banking operations and have its license.

During the reform years of the 90s of the XX century. more than 2500 independent banks have emerged in Russia, and there are many credit institutions that carry out individual banking functions. For comparison: it took about 1000 years (from 80 to 1781) to create 1860 banks in the USA, there are still much fewer banks in other countries.[47]

9.2. Loan Forms

The structure of the loan includes the lender, the borrower and the value lent, so the forms of credit can be considered depending on the nature:

- loaned value;

- lender and borrower;

- target needs of the borrower. Depending on the loaned value, it is advisable to distinguish between commodity, monetary and mixed (commodity-monetary) forms of credit.

The commodity form of credit historically precedes its monetary form. In modern practice, the commodity form of credit is not fundamental. The predominant form is the monetary form of credit, however, the commodity form is also used. The latter is used both when selling goods by installments, and when renting property (including leasing equipment), renting things. Practice shows that the creditor, who provided the goods in installments, is in need of a loan, and mainly in cash. It can be noted that where the commodity form of credit functions, its movement is often accompanied by a monetary form. It can be assumed that credit existed before the monetary form of value, when individual goods (furs, cattle, etc.) were used in equivalent exchange. The first creditors were entities with surpluses of commodities. In later history, there are known cases of lending by landowners to peasants in the form of grain and other agricultural products before the harvest of a new crop.

Monetary form of credit - the most typical, prevailing in the modern economy. If the loan was granted in cash and its repayment was also made in cash, then this transaction is a monetary form of the loan.

If the loan was granted in the form of a commodity and returned in money or vice versa (provided in money and returned in the form of a commodity), then it is more correct to assume that there is a mixed form of credit.

A mixed (commodity-money) form of credit is often used in the economies of developing countries that pay for cash loans with periodic deliveries of their goods (mainly in the form of raw materials and agricultural products). In the domestic economy, the sale of goods in installments is accompanied by a gradual return of credit in cash.

Depending on who is the creditor in a credit transaction, the following forms of credit are distinguished: banking, economic (commercial), state, international, civil (private, personal). At the same time, not only the lender, but also the borrower participates in a credit transaction; in a credit transaction they are equal subjects. The supply of loans comes from the lender, the demand from the borrower.

If a bank, for example, provides a loan to the population, and an individual puts his savings on a deposit with the bank, then in these cases there is the same composition of participants (bank and population). At the same time, each party occupies a different position here: in the first case, the bank serves as a creditor; in the second - by the borrower; in turn, in the first case, the individual acts as a borrower, in the second - as a lender, therefore, the lender and the borrower change places, which also changes the form of the loan.

Loan forms are also divided depending on the target needs of the borrower. On this basis, we can distinguish productive and consumer forms of credit.

Other forms of credit are also used: direct and indirect; explicit and hidden; old and new; main (primary) and additional; developed and undeveloped, etc.

The direct form of credit reflects the direct issuance of a loan to its user, without mediated links. An indirect form occurs when a loan is taken to lend to other entities, for example, if a trade organization receives a loan from a bank not only for the purchase and sale of goods, but also for lending to citizens for goods with installment payment.

An explicit form of credit is understood as a loan for predetermined purposes. A hidden form of credit arises if the loan is used for purposes not provided for by the mutual obligations of the parties.

The old form of credit is a form that appeared at the beginning of the development of credit relations. For example, the commodity loan against the mortgage of property was the oldest form used in the early stages of social development. The old form can be modernized, acquire modern features.

Leasing loans can be attributed to new forms of credit. The object of security is not only traditional real estate, but also modern types of equipment, new goods that are a sign of modern life (cars, yachts, expensive video equipment, computers). Modern credit serves as a new form of credit compared to its usurious form.

The main form of modern credit is cash credit, while commodity credit acts as an additional form, which, however, is not secondary, second-rate. Each of the forms, taking into account the various criteria for their classification, complements each other, forming a certain system that is adequate to the corresponding level of commodity-money relations.

Developed and undeveloped forms of credit characterize the degree of its development. In this sense, a pawnshop loan is called an undeveloped loan that does not correspond to the current level of relations.

Borrower is a party to a credit relationship who receives a loan and is obligated to repay the loan received. Debtor and borrower are close, but not identical concepts. Enterprises and individual citizens may, for example, delay payment of utilities, taxes, and insurance payments. In these cases, the creditor does not transfer anything; the same entity remains the owner. Debt is not just an economic condition; but also purely human relations; This is a broader concept that characterizes obligation in general. In relation to a credit transaction, we should not be talking about the debtor, but about the borrower.

Historically, borrowers have been individuals in need of additional resources. With the formation of banks, there is not only a concentration of creditors, but also a significant expansion of the composition of borrowers. In modern conditions, in addition to banks, borrowers are enterprises, the population and the state. Traditionally, banks become collective borrowers, since they borrow not for themselves, but for others.

The special place of the borrower in a credit transaction distinguishes him from the lender.

Firstly, the borrower is not the owner of the loaned funds, he acts only as their temporary owner; the borrower uses other people's resources that do not belong to him.

Secondly, the borrower uses the loaned funds both in the sphere of circulation and in the sphere of production (for the purchase of materials and the expansion and modernization of production). The lender, on the other hand, provides a loan in the exchange phase, without entering directly into production.

Thirdly, the borrower returns the loaned resources that have completed the cycle in his economy. To ensure such a return, the borrower must organize its activities in such a way as to ensure the release of funds sufficient for settlements with the creditor.

Fourthly, the borrower not only returns the value received for temporary use, but also pays more than he receives from the lender, is the payer of loan interest.

Fifth, the borrower depends on the lender, the lender dictates his will. Economic dependence on the lender forces the borrower to rationally use the loaned funds.

In the world banking practice there is no single classification of bank loans. This is due to differences in the level of development of banking systems in different countries, the methods used in them to provide loans. However, most often in the economic literature there is a classification of loans according to the following criteria:

- purpose (purpose of the loan);

- scope of use;

- terms of use;

- provision;

- method of issuance and repayment;

- types of interest rates.

According to the purpose, bank loans can be divided into the following groups: industrial, agricultural, investment, consumer, mortgage.

Industrial loans are provided to enterprises and organizations for the development of production, covering the costs of purchasing materials, etc.

Agricultural loans are provided to farms and peasant households in order to facilitate their activities in cultivating the land, harvesting, etc.

Consumer loans are provided to individuals to cover urgent needs, repair and purchase of apartments and houses.

Mortgage loans are issued secured by real estate for the purpose of building, acquiring or renovating housing.

Depending on the scope of use, bank loans can be of two types: loans to finance fixed or working capital. In turn, loans to working capital are divided into loans to the sphere of production and to the sphere of circulation.

At the present stage of development of the Russian economy, the most attractive and, as a result, the most common are loans directed to the sphere of circulation.

According to the terms of use, bank loans are on-call (on demand) and urgent.

On-call loans are repayable within a fixed period after formal notice from the lender. Currently, such loans are practically not used in Russia, as they require stable conditions in the loan capital market.

Term loans are usually divided into short-term, medium-term and long-term. In modern banking, short-term loans are predominantly used.

By security, loans are divided into unsecured (blank) and secured. Blank loans are issued to first-class borrowers without the use of any form of loan security.

Secured loans are the main type of modern bank credit. Depending on the type of security, they are usually divided into collateral, guaranteed and insured.

This classification of bank loans is used more in banking theory than in practice. In the practice of Russian banks, it is customary to divide bank loans depending not on the type, but on the quality of the collateral. In this regard, it is customary to allocate secured, insufficiently secured and unsecured loans.

A secured loan is a loan secured by collateral in cases where the collateral simultaneously meets the following requirements:

- its real (market) value is sufficient to compensate the bank for the principal amount of the loan, all interest in accordance with the agreement, as well as possible costs associated with the implementation of security rights;

- all legal documentation in relation to the bank's security rights is drawn up in such a way that the time required for the implementation of the pledge does not exceed 150 days from the day when the implementation of the security rights becomes necessary for the bank.

The category of secured loans includes loans issued under the guarantee of the Government of the Russian Federation, subjects of the Russian Federation, the guarantee of the Bank of Russia.

Undersecured loan - a loan secured by collateral that does not meet at least one of the requirements for collateral for a secured loan.

An unsecured loan is a loan that is unsecured or secured by collateral that does not meet the requirements for collateral for secured loans.

According to the method of issue, bank loans can be divided into loans that are compensatory and payment in nature. Compensatory loan involves the direction of loan funds to the current account of the borrower in order to reimburse expenses incurred from it. The essence of a payment loan is that the borrower, as necessary, provides the bank with the settlement and payment documents received by him and the loan funds are transferred directly to pay for these documents.

According to the methods of repayment, bank loans are divided into repaid at a time and repaid in installments. Repaid in a lump sum, they are a traditional form of repayment of a short-term loan, since they are convenient from the standpoint of legal registration. Installment loans involve repaying the loan in two or more installments over the life of the loan. Specific conditions for repayment are determined in the loan agreement and depend on the object of the loan, inflationary processes and a number of other factors.

According to the types of interest rates, bank loans can be divided into loans with a fixed or floating interest rate. Loans with a fixed interest rate imply the establishment of an interest rate specified in the agreement for the entire period of lending without the right to revise it. In this case, the borrower assumes the obligation to pay interest at the agreed rate, regardless of changes in the capital market. In the Russian practice of bank lending, fixed interest rates are used in property. Variable rate lending involves the use of an interest rate, the size of which is periodically reviewed. In this case, the interest rate consists of two components: the main rate, which varies depending on market conditions, and the premium, which is a fixed amount and is determined by agreement on rates.

According to the size accepted division of bank loans into small, medium and large. In banking practice, there is no single approach to the classification of loans on this basis. In Russia, a loan to one borrower is considered large if it exceeds 5% of the bank's capital.

9.3. Business lending process

When organizing credit operations, the efforts of commercial banks are aimed at avoiding or at least minimizing possible losses from non-fulfillment by customers of their obligations under a loan agreement. The actions of bank employees at all stages of the credit process are subordinated to this goal.

Credit process - this is the process of organizing the bank's lending activities, consisting of a set of successive stages: from consideration of a loan application to repayment of loan debt by the borrower.

The following stages (stages) of the credit process are usually distinguished:

1) consideration of an application for a loan and an interview with a potential borrower;

2) assessment of the applicant's creditworthiness;

3) study of the sufficiency, acceptability and liquidity of tangible and intangible assets as collateral for a loan;

4) structuring the loan and concluding a loan agreement;

5) granting a loan;

6) loan service;

7) loan repayment.

Stage 1. Consideration of an application for a loan and an interview with a potential borrower. The so-called preliminary information about a potential borrower, which is partially reflected in the loan application, but is mainly supplemented and argued by the client during the interview (interview), is designed to find out the primary data about the client and his motives for applying to the bank for credit support. The interview method evaluates the reasons that prompted the client to apply, the purpose of lending, the planned sources of loan repayment, the scope of activity and other questions that allow forming a preliminary opinion about the applicant. Only at a personal meeting with the client, an employee of the credit department can acquaint him with the procedure for granting loans in this bank and with the list of documents necessary to continue the credit process. The client's application is registered in the credit department of the bank. The head of the credit department receives the application and signs the registration book, after which the manager responsible for servicing the client is determined.

When processing an application for a loan, the loan manager determines its compliance or non-compliance with the primary criteria, i.e. general lending rules and the bank's internal regulations on credit policy. In case of non-compliance of the loan application with the primary criteria of the bank, the loan manager prepares a conclusion that it is impossible to provide a loan, coordinates it with the head of the loan unit and sends the applicant a written notice of refusal of the loan. If the provision of a loan is deemed appropriate for the bank, proceed to the second stage of the loan process.

Stage 2. Assessment of the creditworthiness of the applicant. This stage begins with the study of the constituent documents of a potential borrower. Its legal status is determined, business reputation and credit history are evaluated together with the security service. Such actions are especially important if the client is new to the bank or is served by another bank. In the case of lending to a client with a long history of his relationship with the bank, when additional information about the borrower's reputation is not required, the credit manager proceeds to financial analysis. The source of information for financial analysis is the financial statements of the borrower. Based on the recommendations of the central bank on the issues of assessing the creditworthiness of the borrower and the methodology used in the bank for calculating financial indicators, the financial condition and prospects for its change for the period of lending are assessed. Often in banking practice, when assessing creditworthiness in general and financial condition in particular, rating methods are used, the main purpose of which is to unify the analysis procedure and create an information base for comparing various categories of borrowers. In addition to the quantitative analysis of financial ratios, a qualitative analysis of the level of management at the borrowing enterprise, as well as external market factors, is becoming more widespread in banking lending practice. Undoubtedly, these two main lines of analysis should not be opposed. They are designed to organically complement each other and strengthen the validity of decision-making on a loan.

If the results of the assessment of the borrower's creditworthiness are found to be satisfactory, the credit manager proceeds to consider the use of certain forms of fulfillment of obligations under the loan.

Stage 3. Study of loan collateral. The main forms of fulfillment of obligations under loans are: pledge of tangible and intangible assets, financial guarantees of the government, enterprises and organizations, guarantees of individuals.

The types of collateral accepted by the credit division include: pledge of goods, non-current assets, real estate, securities, foreign exchange earnings, deposits, property rights.

Governments can act as a guarantor in a loan transaction when it comes to lending to a project of national importance, enterprises and organizations (for example, insurance companies, banking institutions, etc.). The loan manager checks for the presence of the guarantor in the list of guarantor organizations approved by the credit committee. In the absence of a guarantor in the list, the credit manager prepares an opinion on the credit rating of the guarantor organization and applies to the credit committee with a question about the acceptability of such a guarantee. With a positive decision of the credit committee, the guarantee is registered with the bank. If the amount of the guarantee is insufficient or generally unacceptable, the loan officer informs the potential borrower about this and requires additional collateral.

The guarantee of individuals as a form of fulfillment of loan obligations is most often used in lending to the population. In the practice of lending, various forms of fulfillment of loan obligations can be used simultaneously (for example, a pledge of property can be strengthened by guarantees from private individuals or a guarantee can be accompanied by the provision of collateral). The collateral is assessed by an expert of the relevant credit department of the bank, most often by the collateral assessment service. After the expert's opinion on the acceptability of collateral or other forms of fulfillment of obligations under the loan, the loan manager proceeds to the stage of structuring the loan and preparing the loan agreement.

Stage 4. Loan structuring and conclusion of a loan agreement. A loan agreement can be concluded in the form of a credit line agreement, when the borrower is credited for a sufficiently long period in separate tranches within the established limit and a standard loan agreement that is not related to other obligations. The process of preparing a loan agreement involves reaching agreement between the subjects of a loan transaction (the lender and the borrower) on the following fundamental issues: the object of lending, the purpose of lending, the amount of the loan, the terms of lending and repayment of the loan, the interest rate for using the loan, securing the loan, the responsibility of the parties for non-fulfillment of contractual obligations to economic sanctions from the bank for misuse of the loan.

Draft loan agreement, pledge agreement and other accompanying documents are submitted for approval to the legal service to the lawyer of the credit unit. The work of a lawyer is carried out in order to clarify and confirm the compliance of the form and content of the submitted documents with the current legislation, the legal capacity of the borrower, the legal capacity of employees of credit departments who signed the documents on the loan transaction. A legal service specialist approves the documents or returns them for revision to the loan manager. Then, depending on the level of delegation of authority, the loan manager either independently decides on the eligibility of the loan and signs the loan agreement with the head of the loan department, or submits the prepared documents for consideration by the credit committee. The latter makes the final decision, authorizing the issuance of a loan, sending documents for revision or refusing to grant a loan. If a positive decision is made, the loan manager proceeds to the next stage of the loan process.

Stage 5. Providing a loan. The provision of a loan is accompanied by the opening of a loan account, the correct establishment of the type of which largely determines the success of a credit transaction. In this case, the following types of loan accounts are usually used: separate (simple), special, current account.

When providing loans to current (current) assets, as a rule, separate loan accounts are used. In the bank at the place of obtaining the loan, the borrower opens one or more loan accounts, depending on the number of lending objects. In this case, the borrower can be served in one bank, and receive a loan in another. At the same time, the bank that gives the loan notifies the bank where the current account of the borrower is opened, of the amount and terms of repayment of the loan.

It is also possible to open a special loan account, which does not give the borrower the opportunity to be served in different banks. A special loan account can only be opened with a bank at the location of the current account of the borrower. Lending under a special loan account is usually allowed for enterprises engaged in retail and wholesale trade in consumer goods and industrial and technical products.

A loan on a current account is provided to service current production activities, make all types of commodity and non-commodity payments using various forms of payment. A current account is a single active-passive account that reflects all cash flows: receipts and payments. It is open to clients who have been served by the bank for a long time and are distinguished by high creditworthiness and importance for this institution. The debit balance on a current account characterizes the debt to the bank or loan debt, and the credit balance characterizes the receipt of funds, resources or the bank's debt to the client.

After determining the type of loan account, the loan manager prepares and sends to the operational department an order for opening a loan account and issuing a loan. The credit process moves to a new stage of servicing an already granted loan.

Stage 6. Loan service. Often the financial capacity of the borrower and the level of risk of a credit transaction change over the period from granting a loan to its final repayment. Therefore, the procedure for servicing the loan is aimed primarily at the implementation of control functions by the loan manager. There are the following areas of control:

- for the intended use of the loan;

- sufficiency of credit security;

- timely repayment of principal and interest;

- payment documents of the borrower.

The loan manager also monitors the financial condition of the borrower and trends in its changes, periodically analyzes the creditworthiness of the client, together with the borrower discusses, if necessary, issues of amendments and additions to the loan agreement regarding changes in interest rates, loan prolongation, etc., leads credit file of the borrower, replenishes it with new documentation, ensures the reliability of storage and commercial secrets. All these measures are aimed at the successful completion of the loan repayment transaction.

Stage 7. Loan repayment. The transition to the last stage and the successful completion of the credit process is possible only with the correct organization of all previous stages. Most loans are repaid on time and in full in accordance with the terms of the loan agreement. At the same time, on average, about 15% of bank loans become problematic in terms of the possibility of their return. Therefore, if the borrower violates the loan repayment terms, the loan manager proceeds with the procedure for claiming outstanding interest and principal. Accounts for overdue loans are opened, collection orders are issued, measures to influence the borrower are discussed together with the legal service and the security service. The ultimate goal of the bank's credit divisions is to ensure the return of loaned funds and the planned return on investment.

The organization of work on long-term lending of investment projects takes place within the framework of the described lending process and cannot fundamentally differ from short-term lending. At the same time, there are certain specific features, mainly caused by a higher level of lending risk and the need to divert bank resources for a long time. At the same time, it is rather difficult to meet two investment projects similar to each other. Each of them requires an individual approach, taking into account the peculiarities of business planning, state regulation of investment activities, etc.

Thus, traditionally, the lending department (sector) in a commercial bank:

- takes part in the formation of a reserve for possible losses on loans that are within the competence of the department; carries out the classification of loan debt, which is under the jurisdiction of the department; controls the completeness and correctness of the creation of a reserve for possible losses on loans in the branches of the region;

- carries out methodological and informational support of lending departments of the region (methodological, regulatory, instructive and analytical materials) in all main areas of the department's activities;

- supervises the work of regional branches on lending to legal entities and individuals and project financing, including by conducting targeted inspections on the ground, as well as attesting employees of credit services of regional branches;

- takes part in the organization of events to improve the skills of employees of the regional departments;

- generates statistical and other established reporting on issues within the competence of the department.

In the field of lending operations:

- within the established limits, provides the following types of lending: for replenishment of own working capital and financing of expenses for the main production activity; commercial operations of branch clients; commercial programs and contracts of branch clients, sub-federal and municipal programs; foreign trade operations, including the use of a letter of credit form of payment, as well as promissory notes, overdraft, interbank lending secured, lending to individuals;

- conducts an expert assessment of the feasibility of granting loans, issuing bank guarantees and in other cases requiring approval of the proposals of the regional branches by the relevant collegiate body of the territorial bank.

In the field of investment lending and project financing:

- studies regional markets and forms industry and regional priorities for investment lending and project financing, improves project selection criteria;

- conducts a search, examination and selection of investment projects that most fully meet the criteria and priorities of the investment policy of the bank, prepares conclusions for the relevant collegiate body of the territorial bank;

- by decision of the Credit and Investment Committee, provides medium- and long-term lending in rubles and foreign currency to investment projects of corporate clients of a bank branch, while ensuring an acceptable level of credit risks for a territorial bank;

- ensures the implementation of leasing transactions;

- carries out support of investment projects during the entire period of validity of loan agreements.

The traditional scheme for organizing the work of banks in servicing customers - potential borrowers was built for a long time as a "multi-contact" model of cooperation between a client and various credit departments in a bank.

In this model, the procedures for accepting a loan application, analyzing creditworthiness, preparing a loan agreement, monitoring payments and repayment of the loan, as well as other functions are performed by different bank specialists. As a result, on the one hand, the principle of functional specialization of credit departments is affirmed, and on the other, the number of approvals increases, operating costs increase, and the efficiency of decision-making on various lending issues is lost. From the point of view of convenience for the client, such a scheme is not always preferable for use, especially in large banks with significant financial capabilities and a diverse clientele. The bank client, especially the corporate borrower, suffers in this case from the need to contact many bank employees at different levels of management: from the bank employee accepting the loan application to senior managers.

Alternatively, an "authorized loan manager" mechanism, or, in other words, a bank's one-touch customer service scheme, may be used.

Such a mechanism is usually used if the stages of the business process are complex and cannot be combined by a small team within one functional unit of the bank. An authorized loan manager provides a single "point of contact" between the client-borrower and the bank and is the central link in the chain of units responsible for its service. To fulfill this role at a high professional level, the loan manager must be able to answer almost any client's questions without recourse to other bank officials. In essence, the manager treats the client as if he were responsible for all of that client's service.

9.4. International credit: essence, functions, main forms

International credit - this is the movement of loan capital in the sphere of international economic relations, associated with the provision of foreign exchange and commodity resources on the terms of repayment, urgency, security and payment of interest. Performing interrelated functions, international credit plays a dual role in the development of production: positive and negative. On the one hand, credit ensures the continuity of reproduction and its expansion. It contributes to the internationalization of production and exchange, deepening the international division of labor. On the other hand, international credit enhances the disproportions of social reproduction, stimulating the spasmodic expansion of profitable industries, and hinders the development of industries that do not attract foreign borrowed funds. International credit is used to strengthen the position of foreign creditors in the competition.

Functions of an international loan:

1) redistribution of loan capital between countries to meet the needs of expanded reproduction. Thus, the loan contributes to the gradual convergence of interest rates in Russia and in the developed countries of the West;

2) saving distribution costs in the field of international settlements through the use of credit funds (drafts, bills, checks, transfers, etc.), development and acceleration of non-cash payments;

3) acceleration of the concentration and centralization of capital through the use of foreign loans;

4) regulation of the economy.

The boundaries of an international loan depend on the sources and needs of countries for foreign borrowed funds, the repayment of the loan on time. Violation of this objective boundary gives rise to the problem of settling the external debt of borrowing countries, including developing countries, Russia, other CIS countries, countries of Eastern Europe, etc.

The dual role of international credit in a market economy is manifested in its use as a means of mutually beneficial cooperation between countries, on the one hand, and competition, on the other.

Classification of forms of credit is carried out:

by appointment:

- commercial loans servicing international trade in goods and services;

- financial loans used for investment objects, purchase of securities, repayment of external debt, foreign exchange intervention by the central bank;

- intermediate loans for servicing mixed forms of export of capital, goods, services (for example, engineering);

types:

- commodity (when exporting goods with deferred payment);

- currency (in monetary form);

delivery technique:

- cash loans credited to the borrower's account;

- acceptance in the form of acceptance (consent to pay) drafts by the importer or bank;

- certificates of deposit;

- bonded loans, consortium loans, etc.;

loan currency:

- international credits in the currency of either the debtor country, or the creditor country, or a third country, or in international currency units;

terms:

- short-term loans (from one day to one year, sometimes up to eighteen months);

- medium-term (from one year to five years);

- long-term (over five years);

ensuring:

- secured;

- blank.

Goods, commercial and financial documents, securities, real estate, other valuables, sometimes gold are used as collateral. A blank loan is issued against an obligation (bill) of the debtor to repay it on time;

lender categories:

- branded (private);

- banking;

- brokerage;

- government;

- mixed, with the participation of private enterprises (including banks) and the state;

- interstate loans of international financial institutions.

Topic 10. FINANCE OF BUSINESS SUBJECTS

10.1. Purpose, objectives and structure of financial management

Financial management is the management of the financial and economic activities of the company based on the use of modern methods. His role in the activities of the organization is multifaceted and very important at the present stage.

The main tasks of financial management are:

1) financial and business planning;

2) investment planning;

3) analysis of the effectiveness of mergers and acquisitions;

4) development of accounting policies for accounting, tax and management accounting;

5) coordination of budget planning and control;

6) cash and working capital management;

7) financial risk management;

8) asset management - formation, control and analysis of compliance with the standards for the turnover of current (accounts receivable, stocks, payables) and long-term (fixed assets, intangible assets, long-term financial investments) assets;

9) cost and profit management:

- coordination of the processes of development, approval and adjustment of standards for cost items;

- cost accounting and costing;

- preparation of segment reporting;

- development of measures to optimize the use of resources;

- analysis of pricing and assortment portfolio management;

10) provision of financial resources:

- relationship management with potential sources of financing, with external investors;

- determination of financing needs;

- conducting transactions to attract financial resources;

11) financial forecasting;

12) internal audit;

13) tax planning and accounting;

14) controlling;

15) promotion of economic way of thinking:

- development of training programs for company employees in the process of making effective management decisions;

- creation of models and standards for decision-making.

The solution of these problems is assigned to various specialists, depending on the organizational structure, the size of the organization, and the tasks facing it. The functions of a financial manager can be performed by the financial directorate, accounting, financial director, commercial director, general director, specialists attracted from outside. In order for the structure of the financial and economic service to be optimal, it is recommended to discuss with the management of the company the tasks of the financial service arising from strategic goals, the possibility of delegating the powers necessary to implement these tasks, the terms of reference of employees, as well as the system for evaluating the activities of the financial unit and its head.[48 ]

In many ways, the role of the CFO in the company is predetermined by the type and structure of the business, as well as the stage of development of the company. There are three most common models of activity of financial directors at present:

1) the general director independently makes all decisions; The financial director performs the tasks of the chief accountant, accountant - small business;

2) the financial director is one of the key figures. The value and position of a company in the market no longer depend only on effective sales and production, but also on financial management - medium business;

3) the company is headed by a general director, who is responsible for the enterprise strategy, sales, and marketing. However, not a single dollar can be spent without the consent of the CFO - big business.[49]

When creating a financial unit in an organization, it is necessary to take into account the specifics of the business, the traditions that have developed in the company, for example, the performance of related functions by employees, and the features of the organizational structure. Of course, this somewhat complicates the process of adaptation of a novice financial director, but, for example, without knowing the specifics of the company's business, he will not be able to effectively cope even with the simple tasks facing the financial and economic service.[50]

The main task of the financial director is to organize the work of the departments he leads in five main areas: controlling, financial planning, accounting and tax accounting, cash flow management (treasury function), management accounting, financial risk management.

Controlling can be characterized as a system for setting goals, forecasting and planning, establishing mechanisms and tools for achieving the set goals, as well as checking how successfully they were completed. This work, as a rule, is performed by the financial controlling department, or the planning and economic department. When determining the functions of the employees of this unit, it should be remembered that the controlling system rests on four pillars: accounting, analysis, planning and organization of business processes that fall within the competence of the financial director.

The functions of the company's treasury usually include the current management of cash flows, determining the priority of payments, the procedure for mutual settlements, currency exchange operations, as well as monitoring payments and account balances of companies within the perimeter of the group, if we are talking about a holding company. Most often, the treasury is allocated as a separate unit in large and medium-sized companies; in small firms, the corresponding functions are performed by one or more employees (for example, a bank manager).

In order to attract financing and choose the most profitable way of placing temporarily free funds within the framework of the financial and economic service, a financing department (credit department) can be created. However, in many companies, the function of raising and allocating funds is often also the responsibility of the treasury. At the same time, the activities of these divisions are not limited to choosing a reliable bank and obtaining loans on terms acceptable to the company. The tasks of the financial director also include the organization of interaction in these areas of other departments of the enterprise. It is possible to achieve effective interaction if the procedure for such interaction in terms of collecting and providing the necessary information is regulated.

The main tasks facing a financial manager are determined under the influence of a number of factors: the competitive environment, the need for constant technological improvement, the need for capital investment, changing tax legislation, global conditions, political instability, information trends, changes in interest rates and the situation on the stock market. When forming an appropriate financial policy, a financial manager must develop an algorithm for achieving financial success. Maximizing the enterprise's funds through the correct choice of financing methods, implementing an appropriate dividend policy and minimizing risks when obtaining net profit is the task of current and future activities in the field of financial management.

Financial management is the process of developing and implementing management decisions in order to influence finance, money circulation, and financial relations. Managing impact on finances is necessary to achieve financial stability, strategic and tactical goals of the enterprise.

Thus, achieving and maintaining financial stability is the main task of financial management. Its solution assumes that the financial position of the enterprise is characterized by:

- high solvency;

- balance sheet liquidity;

- liquidity of assets;

- creditworthiness;

- profitability.

It is possible to achieve a combination of these characteristics if a number of important balance proportions are observed:

1) the most liquid assets should cover the most urgent liabilities (accounts payable) or exceed them;

2) marketable assets (accounts receivable, funds on deposits) must cover short-term liabilities (short-term loans) or exceed them;

3) slow-moving assets (stocks of finished products, raw materials or materials) must cover long-term liabilities or exceed them;

4) hard-to-sell assets (buildings, land) must be covered by permanent liabilities (own funds) and not exceed them.

Financial management should provide for the possibility of purposeful improvement of individual functional blocks, elements of the system and any combination of them.

10.2. Composition and structure of working capital

Working capital is one of the components of the enterprise's property. Their condition and efficiency of use are one of the main conditions for the successful operation of an enterprise. The development of market relations determines new conditions for their organization. High inflation, non-payments and other crisis phenomena force enterprises to change their policy in relation to working capital, look for new sources of replenishment, and study the problem of the efficiency of their use. The structure of a company's current assets depends on the scope of its activities. For example, if a company manages real estate and receives income from renting it out, then the volume of current assets in relation to the company’s balance sheet currency will be minimal. Obviously, for such an enterprise the task of efficient use of current assets is not so important and, most likely, it will not have a developed system for managing them. At the same time, the financial and economic condition of manufacturing and trading enterprises largely depends on the effective management of the volume of inventories and the size of receivables. There are trading companies on the Russian market that position themselves as “stores that have everything.” They have permanent stocks of more than 30 thousand product names. Of course, this affects the state of current assets.[51] A significant part of manufacturing companies work to order and do not store large stocks of finished products. The influence of industry affiliation on the structure of a company's current assets can be judged by turnover indicators, which characterize the ratio of the value of the corresponding asset to average daily revenue.

One of the conditions for the continuity of production is the constant renewal of its material basis - the means of production. In turn, this predetermines the continuity of movement of the means of production themselves, which occurs in the form of their circulation.

In their turnover, working capital consistently takes on monetary, productive and commodity forms, which corresponds to their division into production assets and circulation funds. The material carrier of production assets are the means of production, which are divided into objects of labor and tools of labor. Finished products, together with cash and funds in settlements, form circulation funds.

The circulation of enterprise funds begins with the advance of value in cash for the purchase of raw materials, materials, fuel and other means of production - the first stage of the circuit. As a result, money takes the form of inventories, expressing the transition from the sphere of circulation to the sphere of production. The cost is not spent, but is advanced, since after the completion of the circuit it is returned. The completion of the first stage interrupts the circulation of goods, but not the circulation.

The second stage occurs in the production process, where labor carries out productive consumption of the means of production, creating a new product that carries the transferred and newly created value. The advanced value again changes its form - from productive value to commodity value.

The third stage is the sale of finished products (works, services) and the receipt of funds. At this stage, working capital again moves from the sphere of production to the sphere of circulation. The interrupted circulation of commodities is resumed, and value passes from the commodity form into the monetary form. The difference between the amount of money spent on the manufacture and sale of products and received from the sale of manufactured products is the cash savings of the enterprise.

Having completed one circuit, working capital enters a new one, thereby carrying out their continuous coil. It is the constant movement of working capital that is the basis for an uninterrupted process of production and circulation.

An analysis of the circulation of funds of enterprises shows that the value advanced not only successively assumes various forms, but also constantly remains in these forms in certain sizes. In other words, the value advanced at each given moment of the circuit is in various parts at the same time in the form of money, production, and commodities.

The circulation of the funds of enterprises can only take place if there is a definite value to be advanced in the form of money. Entering the circuit, it no longer leaves it, consistently changing its functional forms. The specified value in monetary form represents the current assets of the enterprise.

Working capital is primarily a value category. In the literal sense, they are not material values, since they cannot be used to produce finished products. Acting as value in monetary form, working capital already in the process of circulation takes the form of inventories, work in progress, finished products. Unlike inventory items, working capital is not spent, not expended, not consumed, but advanced, returning after the end of one circuit and entering the next.

The moment of advance is one of the essential and distinctive features of working capital, as it plays an important role in establishing their economic boundaries. The time criterion for advancing working capital should not be the quarterly or annual volume of funds, but one cycle, after which they are reimbursed and enter the next.

The study of the essence of working capital involves the consideration of working capital and circulation funds. Working capital, working capital and circulation funds exist in unity and in interconnection, but there are significant differences between them.

Working capital is constantly in all stages of the enterprise, while working capital goes through the production process, being replaced by new batches of raw materials, fuel, basic and auxiliary materials. Inventories, being part of working capital, go into the production process, turn into finished products and leave the enterprise. Working capital is completely consumed in the production process, transferring its value to the finished product. Their sum per year can be dozens of times greater than the amount of working capital, which, during each circuit, ensures the processing or consumption of a new batch of objects of labor and remaining in the economy, making a closed circuit.

Working capital directly participates in the creation of new value, and working capital - indirectly, through working capital.

In the process of circulation, working capital embodies its value in working capital and therefore, through the latter, they function in the production process and participate in the formation of production costs.

If working capital directly and directly participated in the creation of a new product, then they would gradually decrease and by the time the cycle ends, they would have to disappear.

Working capital, representing use value, appears in a single form - productive. Working capital not only consistently takes on various forms, but also constantly, in certain parts, remains in these forms.

These circumstances create an objective need to distinguish between the turnover of working capital and working capital.

Comparison of working capital with circulation funds, which are a functional form of working capital at the stage of circulation, leads to the following results. The circulation of funds of enterprises ends with the process of selling products (works, services). For the normal implementation of this process, they, along with fixed and circulating funds, must also have circulation funds.

The turnover of circulating assets is inextricably linked with the turnover of circulating production assets and is its continuation and completion. Making a circuit, these funds are intertwined, forming a general turnover, during which the value of circulating funds, transferred to the product of labor, passes from the sphere of production to the sphere of circulation, and the value of circulating funds in the amount of the advanced value - from the sphere of circulation to the sphere of production. This is how a single circulation of advanced funds is carried out, passing through different functional forms and returning to the original monetary form. Working capital, making a circuit, from the sphere of production, where they function as circulating funds, moves into the sphere of circulation, where they work as circulation funds.

The definition of working capital as advanced funds in the created stocks of circulating production assets and circulation funds does not reveal the full economic content of this category. It does not take into account that, along with the advance of a certain amount of money resources, the process of advancing into these stocks of the value of the surplus product created in the production process takes place. In this regard, for profitable enterprises, after the completion of the circulation of funds, the amount of advanced working capital increases by a certain amount of profit received. For unprofitable enterprises, the amount of advanced working capital at the end of the circulation of funds decreases due to the losses incurred.

Working capital is often equated with cash. Meanwhile, it is impossible in the literal sense to call them money. The total value is advanced in the form of money, and, having gone through the process of production and circulation, it assumes that form again. Cash is an intermediary in the movement of funds. The total value, expressed in money, turns into real money only at times and in parts.

So, working capital is a value advanced in cash for the systematic formation and use of working capital and circulation funds in the minimum required amount to ensure the implementation of the production program by the enterprise and the timeliness of settlements.[52]

Current assets of the enterprise have two functions: production and settlement. When performing a production function, working capital, being advanced to working capital, maintains the continuity of the production process and transfers its value to the product produced. Upon completion of production, circulating assets pass into the sphere of circulation in the form of circulation funds, where they perform a settlement function, consisting in the completion of the circulation and the transformation of circulating assets from a commodity form into a monetary one.

Rhythm, coherence and high performance of the enterprise largely depend on its availability of working capital. The lack of funds advanced for the purchase of inventories can lead to a reduction in production, non-fulfillment of the production program. Excessive diversion of funds into reserves that exceed the actual need leads to the deadening of resources, their inefficient use.

Since working capital includes both material and monetary resources, not only the process of material production, but also the financial stability of the enterprise depends on their organization and efficiency of use.

The structure of working capital is the ratio of individual elements of working capital assets and circulation funds, that is, it shows the share of each element in the total amount of working capital (Fig. 10.1).

The composition of working capital is understood as a set of elements that form circulating production assets and circulation funds, i.e., their placement into individual elements. The predominant part of working production assets consists of objects of labor - raw materials, basic and auxiliary materials, purchased semi-finished products, fuel and fuel, containers and packaging materials.

In addition, working production assets also include some tools - tools, equipment, spare parts for routine repairs, special clothing and shoes. These tools last less than a year or have cost restrictions.

The financial cycle characterizes the time interval between the moment of receipt of funds from buyers for sold products and the moment of payment to suppliers for raw materials for the production of these products. The shortening of the operating and financial cycles in dynamics is seen as a positive trend. If the reduction in the operating cycle can be done by accelerating the production process (extensity and intensity of labor) and the turnover of receivables, then the financial cycle can be reduced both due to these factors and due to some non-critical slowdown in the turnover of accounts payable.

Thus, the duration of the financial cycle in days of turnover can be calculated using the formula

where POC is the duration of the operating cycle (consists of accounts receivable turnover in days and inventory turnover in days); BOK - time of circulation of accounts payable; WHO - time of circulation of inventories; VOD - time of circulation of receivables.

In turn, the time of circulation of stocks, receivables and payables, respectively, can be calculated using the following formulas:

where Zav.pr - average production inventories; Sp.p - cost of products sold; Ssr.d, Ssr.k - average receivables and payables, respectively; Вр - sales revenue; T is the length of the period for which the average indicators are calculated (365 days).

The debt in the calculation can be used both general and directly related to the main activity of the enterprise.

The question of the amount of receivables is, in fact, the question of the duration of both the operating and financial cycles. Growth in accounts receivable, driven by longer trade credit periods, looser credit standards, less stringent collection of arrears, trade discounts, generally stimulates sales. Larger sales volumes may require larger inventories and a build-up of fixed assets. Such an increase in assets, as a rule, requires large expenditures for their financing through, possibly, borrowed funds and (or) the issue of securities. In this case, the costs required to produce an additional batch of goods also increase. An increase in sales on credit leads to an increase in revenue and profit only in the accounting registers and reporting of the enterprise, and even then, subject to the adoption of the company's accounting policy "on shipment" and not "on payment." In fact, these revenues and profits are visible only on paper and do not give real cash flow. In addition, the volume of receivables will increase, and hence the operating costs associated with them, as well as the number of bad debts and the costs associated with the provision of trade discounts. Thus, the main question to be solved in the process of choosing the optimal level of receivables by the enterprise is formulated as follows: will the income from sales increase to a greater extent than the costs, including the costs associated with lending to customers, i.e. is it effective for the enterprise to accept such costs ? The answer to this is that the optimal level of receivables will be such a level at which the marginal costs of changing credit policy will be equal to the marginal benefits of changing credit policy.

10.3. Working capital analysis

Analysis of working capital allows you to:

- evaluate the efficiency of resource use in the operational activities of the enterprise;

- determine the liquidity of the company's balance sheet, i.e. the ability to repay short-term obligations in a timely manner;

- find out what the company's own working capital is invested in during the financial cycle.

The size and structure of current assets must meet the needs of the enterprise, which are reflected in the budget. Current assets should be minimal, but sufficient for the successful and smooth operation of the enterprise.

The structure of working capital is the proportion of distribution of resources between individual elements of current assets. It reflects, in particular, the specifics of the operating cycle, as well as what part of current assets is financed from own funds and long-term loans, and what part is financed from borrowed funds, including short-term bank loans.

The size and structure of own working capital may reflect the duration and characteristics of the financial cycle.

The value of own working capital shows not only how much current assets exceed current liabilities, but also how non-current assets are financed from the company's own funds and long-term loans.

The composition and structure of working capital are not the same in various sectors and sub-sectors of the economy. They are determined by many factors of industrial, economic and organizational order. So, in mechanical engineering, where the production cycle is long, the proportion of work in progress is high. At the enterprises of the light and food industries, the main place is occupied by raw materials and materials (for example, in the textile industry). At the same time, the food industry has relatively high stocks of auxiliary materials, containers, and finished products.

At enterprises where a large number of tools, fixtures, and devices are used, the proportion of low-value and wearing items is high (in mechanical engineering and metalworking).

In the extractive industries, there are practically no stocks of raw materials and basic materials, but the proportion of deferred expenses is large. In addition, for example, in the oil industry, an increased share is made up of auxiliary materials, spare parts for the repair of fixed assets.

The value of finished products, goods shipped, receivables is influenced by such factors as the conditions for the sale of products, the form and state of settlements.

The effectiveness and economic feasibility of the functioning of the enterprise is evaluated not only by absolute, but also by relative indicators. The main relative indicators is the system of profitability indicators.

In the broad sense of the word, the concept of profitability means profitability, profitability. An enterprise is considered profitable if its results from the sale of products (works, services) cover the costs of production (circulation) and, in addition, form an amount of profit sufficient for the normal functioning of the enterprise.

The economic essence of profitability can be disclosed only through the characteristics of the system of indicators. Their general meaning is to determine the amount of profit from 1 rub. invested capital, and since these are relative indicators, they are practically not affected by inflation.

Consider the main indicators of profitability.

Return on assets (property) P shows how much profit the company receives from each ruble invested in assets:

where Pч - profit remaining at the disposal of the enterprise (net profit); A is the average value of assets (balance sheet currency).

Return on current assets Rt.a shows how much profit the company receives from 1 ruble invested in current assets:

where At.a - the average value of current assets.

This indicator allows us to give a comprehensive assessment of the efficiency of using working capital and can be presented as the product of two other indicators - return on sales R and return on assets R:

The optimal level of working capital will maximize profits with an acceptable level of liquidity and commercial risk.

Return on investment Ri reflects the effectiveness of the use of funds invested in the enterprise. In countries with developed market economies, this indicator expresses an assessment of the "mastery" of investment management:

where P is the total amount of profit for the period; SK - average equity capital; DO - the average value of long-term liabilities.

Return on equity Rsk, reflects the share of profit in equity:

The profitability of the main activity Rd shows what is the share of profit from the sale of products (works, services) of the main activity in the amount of production costs:

where Pr - profit from sales; 3 - production costs.

The profitability of sold products Rp shows the amount of profit per 1 rub. products sold:

where Вр - proceeds from the sale of products (works, services).

This indicator indicates the effectiveness of not only the economic activity of the enterprise, but also the pricing processes.

A modified indicator of product profitability is the profitability of sales volume

where Pr - profit from the sale of products: Vpr - sales volume.

To assess the turnover of receivables, use the indicators below.

Accounts receivable turnover ratio

where Vr is the volume of sales; Zav.d - the average value of accounts receivable.

This ratio shows the expansion or decline of commercial credit provided by the enterprise. If, when calculating the coefficient, the proceeds from the sale are considered at the transfer of the right to cost, then an increase in the coefficient means a decrease in sales on credit, and its decrease indicates an increase in the amount of credit provided.

Period of repayment of accounts receivable

The longer the repayment period, the higher the risk of default. This indicator should be considered by legal entities and individuals, types of products, settlement conditions, i.e., the conditions for concluding transactions.

Inventory turnover ratio

where D is the cost; ZsrMPZ - average value of MPZ.

Inventory turnover period

This indicator indicates the rational, efficient or, conversely, inefficient use of working capital, based on the dynamics of the coefficient over a number of years.[53]

10.4. Financial economic service in the organization

The Financial Economic Service (FES) occupies a special place in the organizational structure of the company and plays a special role in its management system. It is, on the one hand, the executor of one of the main business processes - the process of making settlements with counterparties, and on the other hand, it is the operator of two most important management subsystems at the same time: the financial and economic activity planning subsystem and the management and accounting subsystem. As such, FES is a unique element of the organizational structure. The dual nature of the tasks solved by FES requires the correct distribution of works of different nature within the framework of FES and creates certain requirements for its organizational structure (Fig. 10.2).

An important task of the financial service of the enterprise is the correct organization of payments for finished products and constant monitoring of the implementation of the plan for the sale of products and profits. Of great importance in the organization of financial work at the enterprise is the timeliness of settlements with the budget, the organization of relationships with banks, the correctness of settlements with workers and employees, control over compliance with the standard of working capital.[54]

The main ways to strengthen the finances of enterprises are related to the optimization of the funds used by them and the elimination of their deficit.

The most important areas for improving financial work at enterprises include:

- systematic and constant financial analysis of their activities;

- organization of working capital in accordance with existing requirements in order to optimize the financial condition;

- introduction of management accounting and, on this basis, optimization of enterprise costs based on dividing them into variables and constants and analysis of the interaction and relationship “costs - revenue - profit”;

- optimization of profit distribution and selection of the most effective dividend policy;

- wider introduction of commercial credit and bill circulation in order to optimize sources of funds and impact on the banking system;

- use of leasing relations for the development of production;

- optimization of the property structure and sources of its formation in order to prevent an unsatisfactory balance sheet structure;

- introduction of a modern cash flow management system;

- development and implementation of the strategic financial policy of the enterprise.

As part of the FES organizationally, there are three structural units:

1) the executor of the "Settlements" process;

2) operator of the subsystem for planning financial and economic activities;

3) chief accountant.

In terms of the implementation of the business process "Settlements", FES should be guided by the relevant regulations. Like the regulations of any business process, the regulations of the "Settlements" process contain a list of work performed, for each of which at least the following set of characteristics is indicated:

- periodicity and (or) conditions of execution;

- performer;

- input documents and their senders;

- output documents and their addressees;

- regulatory and methodological documents that guide the performer in the course of his work.

The process regulations provide for the execution at a certain frequency (daily, once a month or as needed) of the following groups of work.

In order to manage the "Settlements" process, a payment calendar is developed with a planning horizon of up to one month, and a register of payments is compiled daily based on applications received from departments for payment of invoices of counterparties and other obligations.

To ensure the receipt of funds, work is carried out with debtors, including making decisions on filing claims and writing off bad debts.

In order to eliminate the temporary shortage of funds, work is underway to attract sources of short-term financing, including maintaining contractual relations with relevant counterparties.

For the actual settlements, the company's accounts, including loan accounts, and cash at the company's cash desk are managed by issuing various payment documents within the approved payment register.

The financial and economic activity planning system is necessary to determine the most effective business option for the short term (year, quarter, month) and to coordinate the actions of all company divisions in the chosen direction. The systems of planning financial and economic activities, depending on the chosen policy of managing departments, are quite diverse both in terms of the composition of the forms of plans, estimates and budgets, and in the rules for their development and approval, and in analytical areas of planning. A full-scale system for planning financial and economic activities provides for the constant solution of two interrelated tasks:

1) technical and economic planning, i.e., profit planning for the planned period according to the system of "write-offs and shipments";

2) financial planning, i.e., planning the balance of funds at the end of the planning period for real receipts and payments.

Accounting is an accounting system that complies with all regulatory requirements of current legislation and as a result of which reporting is generated, also required by this legislation. Management accounting is a system of both accounting and management accounting itself, which is customized to the requirements of the management system of a particular company and, as a result, internal management reporting is generated. Maintaining such records and generating both external accounting and internal management and accounting reporting is the task of the chief accountant.

There are two main options for organizing management accounting. For their implementation, it is necessary to have a group of qualified accountants at the enterprise who understand both management and accounting. The difference between the options is only in what place these employees occupy in the technological chain of documents.

The first option provides that all accounting documents go to the accountant conducting management accounting (or a group of accountants). This accountant must determine how business transactions recorded in primary documents should be reflected in management accounting. For each of the primary accounting documents, he forms both managerial and accounting entries. If at the enterprise, in addition to the accountants conducting management accounting, there is financial accounting, then after the formation of management entries, the primary documents are transferred to the accountants who maintain accounting and tax accounting, who, on the basis of these documents, draw up official accounting entries.

The advantage of this option is that it most closely matches the basic principles of accounting and allows you to more fully reflect the activities of the organization. The disadvantage is that additional resources will be required to create an integrated accounting system that combines both standard accounting and management configurations.

The second option for organizing management accounting implies that information is entered into the management database after it has been reflected in the accounting database. In other words, two parallel databases are maintained. At the same time, financial accounting works in the usual mode, providing its base to the accountant in charge of management accounting for its subsequent transformation. In practice, such a transformation is carried out, as a rule, on the basis of consolidated data.

The transfer of consolidated information from the accounting database to the management database is possible only for transactions whose legal content corresponds to their real economic essence. If there is no such correspondence, then each posting transferred to management registers must be considered separately. In addition, if management accounting reflects consolidated data, then full-fledged management reports will need to be obtained using both management and accounting databases (for example, an analytical report on a specific supplier can be generated exclusively from accounting data).

Despite the noted disadvantages, the second option for management accounting is attractive due to its low resource intensity. It can be implemented in the shortest possible time and at minimal cost - it is enough to organize additional jobs for accountants conducting management accounting. In addition, the more significant the differences between accounting and management accounting, the higher the effectiveness of this option. The main condition for its effective application is a detailed methodology for transferring operations from the accounting database to the management one. It is necessary to purchase powerful financial systems, usually Western-made, for management accounting. Such programs make it possible to conduct a “multidimensional” analysis of all types of activities of the enterprise and receive any reports, which allows you to timely monitor the slightest changes that may affect the financial condition of the company.

To establish management accounting, it is necessary to develop regulatory documents that will determine the basic accounting rules. It makes sense to normalize only those accounting procedures that do not comply with the accounting standards in force at the enterprise.

The main regulatory documents are:

- corporate management accounting standards;

- chart of accounts of management accounting;

- a system of codes used to code budget items, cost items, responsibility centers, lines of business, etc.;

- the order of document flow in management accounting.

The management accounting standards provide the basic principles for recording business transactions in an organization. When developing accounting standards, one should proceed from existing regulatory documents and adjust them in accordance with the specific conditions of the enterprise.

When developing a management chart of accounts, the working accounting chart of accounts is taken as a basis. The procedure for reflecting information on business transactions does not change: in management accounting, as in accounting, expenses for paying for bank services will be accounted for on account 91, and fixed assets - on account 01. However, the management chart of accounts will also include accounts not included in the accounting plan . In particular, it makes sense to introduce additional (managerial) cash accounts, based on the fact that information on accounting accounts is available to external users, and on management accounts - only to managers and owners of the company.

When developing a chart of accounts, it must be remembered that management accounting requires a large amount of data detail, therefore, it should be possible to reflect information separately for each responsibility center, line of business of the enterprise or product produced by the enterprise. In addition, the management chart of accounts should allow easy sampling of data by a certain attribute, for example, by responsibility centers, types of products, employees, time periods, etc. To do this, it is necessary to assign each item of income and expenses, each responsibility center and each type of activity corresponding codes.

The system of codes should be built in such a way as to ensure the relationship between management accounting and budgeting. To do this, both processes are developed on the basis of the same organizational and functional model of the company. The model of the company should reflect the financial structure, describe the order of movement of material, cash and documentary flows, identify centers of concentration of financial resources. For management accounting and budgeting systems, the same nomenclature of cost and income items is being developed, while each of the items is assigned a specific code that makes it easy to find and group data.

When developing a workflow, the main attention should be paid to primary documents intended for internal use. An example of such documents can be applications for non-cash payments or the issuance of money from the management cash desk. In the form of primary accounting documents, it is advisable to enter such mandatory fields as "Line of business", "Cost code", "Responsibility center", which will immediately allow you to determine whether business operations belong to a particular responsibility center, business process, time period.

The document flow regulations should determine not only the procedure for reflecting economic activities in management accounting, but also the composition of management reporting. Each of the reports should be given a brief description, it is also necessary to determine the frequency of generating reports and submitting them to management.

Before the introduction of a management accounting system, it is advisable to carry out explanatory and consulting work with the personnel, and then draw up an order for the enterprise, signed by the head, which will oblige the employees and heads of all departments to carry out the activities necessary both for setting up accounting and for its further functioning. All this will make it possible to most effectively organize the establishment of management accounting at the enterprise, thanks to which the management will be able to better monitor the state of their business and make more informed management decisions.

10.5. financial planning

The concept of “planning the activities of a company” has two meanings. The first is general economic, from the point of view of the general theory of the company and its nature. In this case, planning is a mechanism that replaces prices and the market; the firm, as a subject of the market system, is subject to the price mechanism, the law of supply and demand. Within this system, the main coordinator of the actions of its participants are prices, and they determine the volumes and methods of production and consumption of goods and services that are profitable for sellers and buyers. However, in the internal environment of each economic unit, the price mechanism is supplanted by the conscious and authoritative actions of managers who determine the main directions of intra-company activities. The internal nature of the enterprise is based on a system of planned decisions.

The second meaning is specific managerial. This is the process of preparing a management decision, based on the processing of initial information and including the selection and scientific preparation of goals, the determination of means and ways to achieve them through a comparative assessment of alternative options and the adoption of the most acceptable of them.[55] Planning is the longest and therefore the most complex form of strategic management. It requires serious effort to obtain a result that many times covers the costs incurred for its implementation. Conversely, in the absence of planning, erroneous management decisions are possible.

Depending on the information used about the past, present or desired financial condition of the company in the future, there are reactive, inactive, preactive, interactive planning directions.[56]

Representatives of each of these directions of planning are very vividly characterized by R. Ackoff: "Inactivists strive to stay in a turbulent stream; reactivists try to swim against it; preactivists try to ride its first wave; interactiveists intend to change the course of the river."[57]

Reactive planning is aimed at the past, and only at the past. No wonder this direction is also called "return to the past." The main method of reactive planning is to study all problems in terms of their occurrence and development in the past. The finances of the organization are perceived by supporters of reactive planning as a stable, stable, well-established mechanism. Everything that happens in the organization is known in advance. It is controlled from top to bottom with the help of the personal authority of the top leader and his "paternal" (paternalistic) attitude towards subordinates. Planning is carried out from the bottom up and relies only on previous experience without taking into account the objective circumstances of today and possible future changes. Initially, the needs and wishes of the departments of the enterprise are clarified and drawn up in plans. The collected materials are transferred to the management of the next level, which corrects, edits them and transfers them to the next level, and so on to the top level of management, where a consolidated draft plan is developed. Grassroots subdivisions do not correct the draft plan.

Inactive planning aims to adapt to the present, and only to the present. It means inertia (doing something out of habit, without conscious effort). In the case of such planning, it is not considered necessary to return to the past or strive to move forward.

In active planning, existing conditions are perceived as good enough. Satisfaction with the present is the hallmark of enactivism. It is also characterized by the idea that balance in the position of the organization is achieved naturally. Consequently, the main principle of planning should be the rule: “Plan the minimum necessary so as not to change the natural course of things.” Inactivist leaders do not strive for any major changes in the activities of their organization. They are not interested in the background of the problem. In inactive planning, most of the time is spent collecting and primary processing of facts about the fulfillment or non-fulfillment of plans. Such planning is possible only in stable, favorable working conditions.

Preactive planning involves assessing future events. With this method, economic and mathematical methods of forecasting are of great importance.

Interactive planning (the prefix “inter” means “between”, “between”) is based on the principle of participation and maximum mobilization of the creative abilities of the organization’s employees. It implies that the future is subject to control and is largely the product of the creative actions of the organization's employees who have knowledge of the past, the present financial condition of the enterprise and the external environment. The goal of interactive planning is to design the future. It is assumed that when using interactive planning, the future is planned with one hundred percent probability, which in real life is unattainable and makes it more ideal theoretical than practical.

Since most business leaders in real life are practical people and adhere to a philosophy of satisfaction, giving preference to formulating a not too exaggerated goal, allocating resources and exercising control in the most appropriate ways in today's conditions, the most common direction of planning at present remains inactivism, which in the current conditions is not wants to give way to interactive planning.

To bring the theory of interactive planning closer to practical application, it is necessary to modernize it - replacing the single-variant projection of the future financial state of the organization with multivariate forecasting, considering various scenarios of the behavior of the external environment through the development of the financial strategy of the enterprise. Modernized interactive planning will provide for the possibility of flexible choice in specific conditions of one of the predicted options.

Considering the multifactorial nature and labor-intensive nature of the enterprise financial planning process, it is advisable to use electronic computer technology for its implementation. High quality planning while significantly reducing development time can be achieved by using a specialized package of application programs with a problem-oriented product. This package is designed to automate planning procedures for various resources (time, money, materials, labor costs) both for an individual and for the entire organization or its structural divisions. A variety of packages of this class "Project Management" (Time Line, MS Project, SuperProject - CA), quite simple and easy to use, allows you to quickly and efficiently carry out planning.

In modern economic literature, three models of financial planning are considered (Table 10.1):

1) development of the financial section of the business plan;

2) budgeting;

3) preparation of forecast financial documents.

Note. The "+" sign indicates that the method is being used; "-" sign - the method is not used.

Planning is also divided into three types: strategic - 2-5 years; current - for a period of one year; operational - for a period of less than one year.

Management as a process begins with strategic planning, as it provides the basis for all subsequent management decisions.

Theoretical and methodological aspects of strategic planning have been the subject of many special studies and monographs abroad over the past 40 years. A huge contribution to the formation and development of this branch of management science was made by F. Abrams, I. Ansoff, J. Quinn, G. Mintzberg, M. Porter, K. Praalad, A. Strickland, A. Thompson, G. Hamel, K. Hofer , E. Chandler, G. Steiner, K. Andrews. Today we can safely say that it was with their work that the classical theory of strategic planning and management began. It is these works that help to identify and formulate the fundamental difference between strategic business planning. Significant in the field of strategic planning methodology were at one time the applied developments of leading consulting firms, such as the Boston Consulting Group. It was they who contributed to the fact that the practical benefits and the need for strategic planning were recognized by the business community quite quickly.

The restructuring of the system of economic relations in our country naturally aroused interest in the strategic issues of business planning and management organization. Unfortunately, the response to this interest so far is mainly the translation of foreign literature on this subject and its compilation in various forms. At the same time, the theory and methodology of strategic planning are not only far from completing their formation, but in a number of cases require a critical analysis of their classical concepts.

There are many interpretations of the category "strategic planning" in the specialized literature. Attention is drawn to the following abilities:

1) determines the main directions of development of the enterprise;

2) focuses on the long term;

3) provides the potential for future successful operation of the enterprise.[59]

Strategic planning is a set of actions and decisions taken by management that lead to the development of specific strategies, i.e., detailed, comprehensive, integrated plans designed to achieve the mission of the organization and achieve its long-term goals.

In today's rapidly changing environment, an enterprise must constantly collect and analyze a huge amount of information about the industry, market, competition and other factors, so strategic planning is the only way to predict future problems and opportunities. It provides top management with the means to create a long-term plan, a basis for decision making, and formally contributes to the reduction of risk in making those decisions.

The potential benefits of developing a strategic plan include:

- improving the quality of organizational work;

- having a clear idea of ​​the direction of movement towards the future;

- possibility of timely solution of the main organizational problems;

- achievement of a higher economic indicator "costs - efficiency";

- creation of a working team and accumulation of expert knowledge;

- fulfillment of the requirements of financing organizations;

- the adoption of an active, rather than a waiting position in relation to the problems facing the organization.

Strategic planning becomes meaningful when it is implemented. Sound goals are an essential component of effective planning, but they do not provide fully adequate guidance for decision making and behavior. This approach allows for enormous leeway in which the people responsible for achieving the goals can easily choose a course of action that will not actually achieve the goals. To avoid such confusion and misinterpretation, management must use special tools to implement the chosen strategy.

These tools include tactics, management policies, rules, procedures, employee incentives, management by objectives, and budgets.[60]

Operational planning is primarily planning to achieve goals. It is based on general target and strategic planning and depends on the product concept, capacity structure and management system adopted as a result of strategic planning. In this regard, operational planning should be, if possible, a synchronous planning of programs and activities. As part of operational planning, in terms of range and volume, programs of products and services are planned that the organization must produce in the short and medium term based on a given potential, or capacity, and the activities (operations) necessary for this in certain functional areas of activity. Operational planning of the product program is carried out at the level of the organization as a whole; along with this, programs and activities are planned for individual organizational units and subsystems of the organization.

Operational planning in a broad sense is also called current or regular. Decisions made in operational planning are situational (current) and are characterized by the following features: they affect the value of assets and success indicators of the organization; require when taking on special responsibility from divisions or departments of the organization; can be taken at the highest, middle and lower levels of management; act in the short term and are taken relatively often; should be taken taking into account the value system of top management, the philosophy and culture of the organization as a whole, as well as possible subcultures of individual subsystems of the organization.

The complexity of planning lies in the fact that we are not talking about successive steps, but about processes occurring simultaneously. The problem is that when developing any part of the operational plan, there must be constant coordination, since the implementation of each part of the plan is possible only if the parts associated with it are approved.

The formation of individual sections of the general plan or private plans should follow from the goals of the top level of the organization (material, cost and social) and, conversely, after checking the possibilities of achieving these goals, be reduced to them. Plans serve as a tool for visually presenting target indicators and the possibilities for achieving them, and reports serve as a tool for visually representing the actual level of achievement of goals.

Integrity and completeness should be ensured by a set of intersecting plans, as they give a systematic view of events and processes. Since the processes of developing the various sections of the plan are interdependent, the system of plans will only allow meaningful conclusions to be drawn when it is complete. Planning and control calculations should ensure effective planning and control of the financial result and its components, taking into account intersecting goals, potentials and activities in all subsystems and in the organization as a whole. Planning processes and individual plans are characterized by content, volume and time parameters. In this case, one should start with the desired output, i.e. with the specified plans, since the processes themselves are largely determined in this way.

In terms of content, plans should be problem-oriented.

From the point of view of the scale of presentation and the degree of detail of the information provided, depending on the purpose of the plans and the needs of managers, there are enlarged (rough) and detailed (refined) plans.

From the point of view of time parameters (urgency), there are short-term (one year or less), medium-term (3-5 years) and long-term (5-10 years or more) plans with corresponding planning periods. When planning special objects (projects), the preparatory period and the effective period (implementation period) are sometimes distinguished as planning periods.

Literature

1. Barylenko, V. I. Analysis of financial statements / V. I. Barylenko {et al.} / ed. V. I. Barylenko. - Saratov: Publishing House of the Saratov State Socio-Economic University, 2002.

2. Berens, V. Guidelines for evaluating the effectiveness of investments / V. Berens, P. M. Havranek. - M.: Infra-M, 1999.

3. Bocharov VV Financial analysis / VV Bocharov. - St. Petersburg: Peter, 2001.

4. Vakulenko, T. G. Analysis of accounting (financial) statements for making managerial decisions / T. G. Vakulenko, L. F. Fomina. - M.; St. Petersburg: Gerda, 2001.

5. Grachev, A. V. Analysis and management of the financial stability of the enterprise: educational and practical. allowance / A. V. Grachev. - M.: Fin-press, 2002.

6. Ermasova, N. B. Financial management / N. B. Ermasova. - M.: Higher education, 2008.

7. Sheremet, A. D. Methods of financial analysis /A. D. Sheremet, E. V. Negashev. - M.: Infra-M, 1999.

8. Sheremet, A. D. Methods of financial analysis / A. D. Sheremet, R. S. Saifulin, E. V. Negashev. - 3rd ed., revised. and additional - M.: INFRA-M, 2002.

9. Sheremet, A. D. Methods of financial analysis of the activities of commercial organizations / A. D. Sheremet, E. V. Negashev. - M.: INFRA-M, 2003.

10. Shulyak, P. N. Finance of enterprises / P. N. Shulyak. - M., 2002.

Notes

1. Vakhrin, P. I. Budget system of the Russian Federation / P. I. Vakhrin. - M.: Dashkov and K. - 2002. - S. 17.
2. Vakhrin, P. I. Decree. op. - S. 20.
3. Finance / ed. G. B. Poliak. 3rd ed. - M.: UNITI-DANA, 2007. - S. 55.
4. See: Chernyavsky, A.V. Analysis of the development of municipal finance in Russia in 1992-2002. /A. V. Chernyavsky /http://www.urbaneconomics.ru/texts.php?folder_id=80&mat_id=97.
5. See: Lavrov, A. M. Interbudgetary relations in Russia / A. M. Lavrov // Report at a seminar in Knoxville, Tennessee, USA, November 17-21. 1997
6. Eurasian budget space / ed. A. M. Lavrova. - M.: URRS, 2004. - S. 94.
7. Lavrov, A. M. Budget reform in 2001-2007: from cost management to performance management / A. M. Lavrov. - M.: IROF, 2006. - S. 14-16.
8. See: Belyakov, I.V. Studies of local self-government in Russia. Foundation "Institute of Urban Economics" / I. V. Belyakov, S. M. Nikiforov, V. E. Grigorov / http://www.urbaneconomics.ru.
9. Khristenko, V. B. Development of budgetary federalism in Russia: from the division of money to the division of powers / V. B. Khristenko // Rossiyskaya Gazeta. Feb 2001, 17 - S. 5.
10. Khramova, T. V. Priorities for reforms in the regions / T. V. Khramova // Finance. 2005. - No. 12. - S. 17-23.
11. Efimova, L. A. Theoretical, methodological and practical aspects of budgetary federalism / L. A. Efimova, S. D. Makarova, M. Yu. Malkina. - Nizhny Novgorod: Publishing House of the Nizhny Novgorod State University, 2004.
12. This conclusion should not be generalized, as it is based on the specific situation of municipalities in Sweden, which have a high degree of tax decentralization.
13. It is the political, not the economic, nature of these obstacles that should be emphasized.
14. The tax potential index is the average amount of tax revenues per capita in the country.
15. Ter-Minassian, T. Fiscal Federalism in Theory and Practice / T. Ter-Minassian.: Washington. International Monetary Fund, 1997. - P. 11.
16. Efimova, L. A. Decree. op. - S. 49-51.
17. Bogacheva, O. V. Theoretical and practical aspects of budget equalization at the subfederal level / O. V. Bogacheva // Software solution to the problem of the budgetary sphere in the Volga Federal District. Ser. 5 "Public finance". - M.: IROF, 2006. - S. 86-88.
18. Efimova L. A., Makarova S. D., Malkina M. Yu. Decree. op. - S. 61.
19. Bolshakov, A. G. Local finance in European countries / A. G. Bolshakov, I. A. Butenko, N. M. Velikaya. - M.: Moscow Public Scientific Fund, 2000. - S. 22-23.
20. Report of the Ministry of Finance of the Russian Federation on the draft federal law "On Amendments to the Budget Code of the Russian Federation in Regulating the Budget Process and Recognizing Certain Legislative Acts of the Russian Federation as Invalid"// www.minfin.ru.
21. Official website of the Ministry of Finance of the Russian Federation: www.minfin.ru.
22. Finance / ed. G. B. Poliak. - M.: UNITI, 2007. - S. 547-548.
23. Finance / ed. G. B. Poliak. - S. 554-555.
24. Report of the Ministry of Finance of the Russian Federation on the draft federal law "On Amendments to the Budget Code of the Russian Federation in Regulating the Budget Process and Recognizing Certain Legislative Acts of the Russian Federation as Invalid"// www.minfin.ru.
25. Akperov, I. G. Treasury budget execution system in the Russian Federation / I. G. Akperov, I. A. Konopleva, S. P. Golovach. - M.: Finance and statistics, 2002. - S. 30-31.
26. Finance: textbook / ed. M. V. Romanovsky, O. V. Vrublevskaya, B. M. Sabanti. 2nd ed. - M.: Yurayt-Izdat, 2007. - S. 94-95.
27. Finance: textbook / ed. M. V. Romanovsky, O. V. Vrublevskaya, B. M. Sabanti. - S. 96.
28. Federal Law No. 26-FZ of April 2007, 63 introduced a new version of Art. 58-59 of the RF BC, which entered into force on January 1, 2008.
29. Federal Law No. 26-FZ of December 2005, 189 "On the Federal Budget for 2006".
30. Federal Law No. 19-FZ of December 2005, 238 "On the Federal Budget for 2007".
31. Given according to the site http://www.debt.ru.
32. See: Economic Expert Group/ http://www.eeg.ru/pages/22.
33. See: http://wwwl.minfm.ru/orr_inf/1890.litm.
34. Andryakov, A.D. Debt management reform at the subfederal level: main directions and prospects for implementation / A.D. Andryakov. - M.: URSS, 2005. - S. 153-154.
35. For more details, see: Theory and practice of insurance: textbook. allowance / under total. ed. K. E. Turdina. - M.: Ankil, 2003. - S. 63.
36. What awaits the market with a mega-regulator? // Stocks and bods market. 2004. No. 7. P. 41.
37. Ishchenko, E. V. Formation and development of the banking system and the evolution of criminal attacks on loans before 1917 in Russia / E. V. Ishchenko // Finance and credit. 2003. - No. 16. - S. 50-51.
38. There. - S. 52.
39. Kuzmichev, A.D. Domestic entrepreneurship: essays on history / A.D. Kuzmichev, I.N. Shapkin. - M., 1995. - S. 89.
40. Novikov, A. N. Small credit in Russia / A. N. Novikov // Questions of Economics. 1994. - No. 4. - S. 75.
41. Bovykin, V. I. Russia on the eve of great achievements / V. I. Bovykin. - M., 1998. - S. 80.
42. Tarankov, V. I. Securities of the Russian State / V. I. Tarankov. - M., Tolyatti, 1992. - S. 312.
43. Ishchenko, E. V. Decree. op. - S. 55.
44. There. - S. 59.
45. Klyuchnikov, M. V. Four stages of development of the banking system of the Russian Federation / M. V. Klyuchnikov // Finance and credit. 2004. - No. 7. - S. 33.
46. Sviridov, O. Yu. Money. Credit. Banks / O. Yu. Sviridov. - M.; Rostov-on-Don, 2004. - S. 96-97.
47. Klyuchnikov, M.V. Decree. op. - S. 33.
48. The first steps of a financial director in a new company // Financial director. - 2006. - No. 1. - S. 70.
49. Financial director - universal top manager // Financial director. - 2005. - No. 10. - P. 6.
50. Korneeva, E. Creating a financial service / E. Korneeva // Financial director. - 2007. - No. 2. - S. 68.
51. Bakhrushina, N. How to manage current assets / N. Bakhrushina // Financial Director. - 2005. - No. 1. - S. 34.
52. Kovaleva, A. M. Finance and credit / A. M. Kovaleva. - M.: Finance and statistics, 2002. - S. 206.
53. Polovinkin, S. A. Management of enterprise finances / S. A. Polovinkin. - M.: Finance, 2001.
54. Kuteleev, P. V. Technology of business reengineering / P. V. Kuteleev, I. V. Mishurova. - M.: March, 2003. - S. 94.
55. See: Chernysh, E. A. Forecasting and planning: textbook. allowance / E. A. Chernysh {etc.}. - M.: PRIOR, 1999.
56. Alekseeva, M. M. Planning of the company's activities / M. M. Alekseeva. - M.: Finance and statistics, 1999. - S. 47-48.
57. Financial management / ed. A. M. Kovaleva. - M.: Infra-M, 2002. - S. 231-232.
58. Financial management / ed. A. M. Kovaleva. - S. 226-239.
59. Gryuning, R. Methods and means of strategic planning in the firm / R. Gryuning // Problems of theory and practice of management. - 1993. - No. 3. - S. 23-24.
60. Meskon, M. Fundamentals of management: per. from English. / M. Meskon, M. Albert, F. Hedouri. - M.: Delo, 1992. - S. 288-296.

Author: Ermasova N.B.

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ General theory of statistics. Lecture summary

▪ Roman law. Lecture notes

▪ Advocacy and notaries. Lecture notes

See other articles Section Lecture notes, cheat sheets.

Read and write useful comments on this article.

<< Back

Latest news of science and technology, new electronics:

Artificial leather for touch emulation 15.04.2024

In a modern technology world where distance is becoming increasingly commonplace, maintaining connection and a sense of closeness is important. Recent developments in artificial skin by German scientists from Saarland University represent a new era in virtual interactions. German researchers from Saarland University have developed ultra-thin films that can transmit the sensation of touch over a distance. This cutting-edge technology provides new opportunities for virtual communication, especially for those who find themselves far from their loved ones. The ultra-thin films developed by the researchers, just 50 micrometers thick, can be integrated into textiles and worn like a second skin. These films act as sensors that recognize tactile signals from mom or dad, and as actuators that transmit these movements to the baby. Parents' touch to the fabric activates sensors that react to pressure and deform the ultra-thin film. This ... >>

Petgugu Global cat litter 15.04.2024

Taking care of pets can often be a challenge, especially when it comes to keeping your home clean. A new interesting solution from the Petgugu Global startup has been presented, which will make life easier for cat owners and help them keep their home perfectly clean and tidy. Startup Petgugu Global has unveiled a unique cat toilet that can automatically flush feces, keeping your home clean and fresh. This innovative device is equipped with various smart sensors that monitor your pet's toilet activity and activate to automatically clean after use. The device connects to the sewer system and ensures efficient waste removal without the need for intervention from the owner. Additionally, the toilet has a large flushable storage capacity, making it ideal for multi-cat households. The Petgugu cat litter bowl is designed for use with water-soluble litters and offers a range of additional ... >>

The attractiveness of caring men 14.04.2024

The stereotype that women prefer "bad boys" has long been widespread. However, recent research conducted by British scientists from Monash University offers a new perspective on this issue. They looked at how women responded to men's emotional responsibility and willingness to help others. The study's findings could change our understanding of what makes men attractive to women. A study conducted by scientists from Monash University leads to new findings about men's attractiveness to women. In the experiment, women were shown photographs of men with brief stories about their behavior in various situations, including their reaction to an encounter with a homeless person. Some of the men ignored the homeless man, while others helped him, such as buying him food. A study found that men who showed empathy and kindness were more attractive to women compared to men who showed empathy and kindness. ... >>

Random news from the Archive Only half of US residents use landlines 05.01.2013 Gadget aficionados won't be surprised by the results of a new study showing that about half of US residents have given up landline use. For many Americans, the home phone is reported to have become a pointless device, as all calls tend to be made using a mobile phone. As part of the Centers for Disease Control (CDC) "National Human Health Study," experts spent a year asking about the health of American homeowners, their insurance, and, in particular, whether they have a home phone. It is worth noting that US residents who for some reason cannot afford a stationary device have the opportunity to apply to the Universal Service Fund to receive it for free. The researchers surveyed about 20 households and found that more than half (51,8%) of Americans use mobile phones or smartphones for almost all calls. At the same time, 35,9% use only mobile communications at home, and 15,9% have a stationary device, but rarely use it. Older Americans are more conservative and prefer to talk on their home phone, while younger people prefer mobile devices.

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the site Cultivated and wild plants. Article selection

▪ article The Soviets have their own pride. Popular expression

▪ article Where and when was money backed by opium issued? Detailed answer

▪ article Accountant for accounting of fixed assets. Job description

▪ article Superregenerator with a switched LC circuit. Encyclopedia of radio electronics and electrical engineering

▪ article Pulse charger for NiCd batteries. Encyclopedia of radio electronics and electrical engineering

Leave your comment on this article:

All languages ​​of this page

Arabic	Hebrew	Polish
Bengali	Hindi	Portuguese
Chinese	Italian	Spanish
English	Japanese	Turkish
French	Korean	Ukrainian
German	Malay	Vietnamese

Home page | Library | Articles | Website map | Site Reviews

www.diagram.com.ua
2000-2024