LECTURE No. 5. The budget of the municipal level

The procedure for drafting the budget and its execution is similar to the same procedures for the federal budget. However, there are also significant differences.

The formation of the local budget consists of a list of the expenditure part of the budget, as well as a list of receipts. In case of a deficit, the sources of its coverage are indicated.

In accordance with the legislation on the organization of local self-government in Russia, three levels of municipalities were distinguished:

1) settlements,

2) municipal districts,

3) urban districts.

Each municipality has its own budget. So, municipal districts, when considering the budget, request an estimate of the costs of each settlement.

The budget of the municipal formation (district) and the set of budgets of settlements form the consolidated budget of the municipal district.

The revenue part of the budget consists of revenues from local, federal, regional taxes and fees, gratuitous transfers from the budgets of other levels, receipts from municipal property, part of the profits from municipal enterprises, fines and donations.

Revenues of local budgets are divided into tax and non-tax. Each municipality is permanently assigned its own taxes and fees, other local revenues.

Representative bodies of local self-government have the authority to introduce local taxes and fees and establish rates and benefits for them.

All legal acts related to changes in tax legislation and reflected accordingly in the preparation of the budget must be edited before the budget approval procedure.

The competence of local authorities is the possibility of granting deferrals and installments for the payment of taxes received by local budgets. The main conditions for this are the absence of debt on budgetary loans of the local budget to the budgets of other levels and compliance with the maximum size of the local budget deficit.

Tax revenues for budgets are:

1) for the budgets of settlements:

a) local taxes:

▪ land tax - 100%;

▪ personal property tax - 100%;

b) federal taxes:

▪ personal income tax - 10%;

▪ single agricultural tax - 30%;

2) for the budgets of municipal districts:

a) local taxes:

▪ land tax levied in inter-settlement areas - 100%;

▪ personal property tax levied in inter-settlement areas - 100%;

b) federal taxes and fees:

▪ personal income tax - 20%;

▪ single tax on imputed income for certain types of activities - 90%;

▪ single agricultural tax - 30%;

▪ state duty - 100%;

3) for the budgets of city districts:

a) local taxes:

▪ land tax - 100%;

▪ personal property tax - 100%;

b) federal taxes and fees:

▪ personal income tax - 30%;

▪ single tax on imputed income for certain types of activities - 90%;

▪ single agricultural tax - 60%;

▪ state duty -100%;

4) other own revenues of local budgets include:

a) income from privatization and sale of municipal property;

b) at least 10% of income from the privatization of state property located on the territory of the municipality and carried out in accordance with the state privatization program;

c) income from the lease of municipal property, including the lease of non-residential premises, and municipal land;

d) payments for the use of subsoil and natural resources, established in accordance with the legislation of the Russian Federation;

e) income from holding municipal money and clothing lotteries;

f) fines to be transferred to local budgets;

g) state duty;

i) at least 50% of the corporate property tax;

j) income tax on individuals engaged in entrepreneurial activities without forming a legal entity. The calculation of federal tax shares for a municipality is based on the total amount of funds transferred to the entity. Using a certain formula, the federal tax share for each municipality is calculated.

The budgets of municipal districts and the budgets of urban districts are subject to payment for the negative impact on the environment according to the standard of 40%.

The budgets of urban districts and municipal districts, federal cities of Moscow and St. Petersburg are subject to transfer fees for the issuance of licenses for the retail sale of alcoholic beverages by local governments (100%).

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 (100%).

Other revenues include self-taxation of the population of the municipality. These are one-time voluntary collections of funds from citizens, used exclusively for their intended purpose. Local self-government bodies inform the population of the municipality about the use of self-taxation funds.

When forming the revenue part of the budget of the municipality, the classification of income and expenses recommended by the Government of the Russian Federation is applied.

The expenses of the municipality are related to its expenditure obligations, which include:

1) adoption of regulatory legal acts of local governments on issues of local importance, established by local governments independently and executed at the expense of their own income and sources of deficit coverage.

The amounts and conditions 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 are determined independently;

2) adoption of normative legal acts of local self-government bodies in the exercise by local self-government bodies of certain state powers. The execution of certain state powers is carried out at the expense of subventions.

When compiling the expenditure part of the budget, local authorities are required to maintain registers of expenditure commitments. This is a set of normative legal acts and agreements providing for the emergence of expenditure obligations to be fulfilled at the expense of the relevant budgets.

The register of expenditure obligations of the municipality is submitted by the local self-government body to the executive body of state power of the subject.

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

Capital expenditures of budgets - part of the expenditures of budgets, providing innovation and investment activities, including items of expenditure intended for investment in existing or newly created legal entities.

Current expenditures of budgets - part of the expenditures of budgets, which ensures the current functioning of local governments in the form of subsidies, grants and subventions.

The expenditure part of local budgets includes:

1) expenses associated with the solution of issues of local importance;

2) expenses related to the implementation of certain state powers;

3) expenses associated with servicing and repayment of debt on municipal loans;

4) expenses associated with servicing and repayment of municipal debt on loans;

5) appropriations for insurance of municipal employees, objects of municipal property, as well as civil liability and entrepreneurial risk;

6) other expenses.

The classification of expenditures of the municipality is equated to the compilation of the classification according to the federal budget.

The provision of budgetary funds is carried out in the form of appropriations for the maintenance of budgetary institutions; funds to pay for goods, works and services; transfers to the population; appropriations for the implementation by local governments of mandatory payments to the population; budget loans to legal entities (including tax credits, deferrals and installments for the payment of taxes and payments and other obligations); subventions and subsidies to individuals and legal entities; interbudgetary transfers, etc.

In the event of a budget deficit, internal sources of financing are used: loans (issue of securities), credits, sale of property, changes in balances in accounts for recording local budget funds. The size of the local budget deficit cannot exceed 10% of the local budget revenues, excluding financial assistance from the federal budget and the budget of a constituent entity of the Russian Federation.

A municipal loan agreement is concluded by acquiring municipal bonds issued by a local self-government body by a citizen or legal entity. Municipal bonds are issued solely for the purpose of implementing programs and projects for the development of the municipality, and the issue is secured by municipal property and funds from local budgets. Credits of the Bank of Russia and its acquisition of debt obligations of municipalities during their initial placement cannot be sources of financing the budget deficit.

As already noted, when drawing up the budget of a municipal district, estimates of income (expenditure) for each settlement should be presented. All expenses are broken down by item.

The executive authorities of the municipality have the right to draw up and independently implement the budget. In accordance with the Federal Law of September 25.09.1997, 126 No. XNUMX-FZ "On the financial foundations of local self-government in the Russian Federation", public authorities guarantee:

1) the right of representative bodies of local self-government to independently determine the directions for the use of local budget funds;

2) the right of representative bodies of local self-government to independently dispose of the free balances of local budget funds formed at the end of the financial year as a result of an increase in revenues or a decrease in expenditures;

3) compensation for an increase in expenditures or a decrease in revenues of local budgets that have arisen as a result of the adoption of federal laws and laws of the subjects of the Russian Federation, as well as other decisions of state authorities.

Budgeting should be based on the application of state minimum social standards, social norms established by public authorities.

In their charters, city districts fix provisions on the budget process. Work with the local budget goes through several stages: drafting, reviewing and approving the budget, execution, reporting on the execution of the city budget.

The city administration draws up a project based on the annual resolution of the head of the city administration on the development of a draft city budget and a long-term financial plan. The drafting of the city budget begins six months before the start of the next fiscal year.

The interdepartmental commission is directly involved in the consideration of the budget. The Commission in its activities is guided by the current legislation of the Russian Federation, the legislation of the subject, the Charter of the municipal district and other regulatory legal acts.

The main tasks of the commission are:

1) coordination and regulation of the activities of structures and economic entities involved in the execution of the budget, in order to ensure the timely and complete formation of the revenue side of the budget and extra-budgetary funds;

2) definition of forms and methods of execution;

3) mobilization of all available resources of enterprises and organizations to pay off existing debts;

4) search and mobilization of new sources;

5) constant informing the head of administration about the state of affairs with the execution of the budget, the position of the Pension Fund, debtor enterprises, and measures taken to pay off debts.

Taking into account the decisions of the interdepartmental commission of the city administration on the preparation of the draft budget of the city, the finance committee of the city administration is finalizing the draft budget by October 1 of this year.

Based on the results of consideration, the head of the city administration either approves the city's draft budget, or rejects it and sends it for revision.

After passing the procedure of public hearings, the draft decision on the city budget is submitted by the head of the city administration for approval to the city duma, along with the necessary documents and materials.

List of documents and materials for hearing the draft budget:

1) forecast of socio-economic development of the city territory for the next financial year;

2) the main directions of the budgetary and tax policy of the city for the next financial year;

3) forecast of the consolidated financial balance of the city for the next financial year;

4) draft targeted investment program for the next financial year;

5) development plan for the municipal sector of the economy;

6) the draft structure of the municipal internal debt of the city and the program of municipal internal borrowings of the city, provided for the next financial year;

7) assessment of budget losses from the provided tax benefits and preferential use of municipal property;

8) assessment of the expected execution of the budget for the current financial year;

9) a list of municipal programs, the execution and financing of which are expected in the planned year;

10) a list of legislative acts (parts thereof) that cannot be executed due to the lack of funds from the regional and federal budgets transferred in the manner prescribed by law;

11) a list of decisions of the city duma (their parts), the effect of which is canceled or suspended for the next financial year, due to the fact that the city budget does not provide funds for their implementation;

12) program of privatization of municipal property;

13) decisions determining the amount of income from the use of municipal property and land before the delimitation of property rights;

14) perspective financial plan;

15) analysis of the implementation of municipal target programs for the past financial year, as well as a forecast for the current financial year.

Further, the draft decision on the city budget is submitted to the city duma. Simultaneously with the draft budget, the following shall be submitted to the City Duma:

1) a program of municipal internal borrowings provided for the next financial year to cover the budget deficit;

2) assessment of budget losses from the provided tax benefits and preferential use of municipal property;

3) assessment of the expected execution of the budget for the current financial year;

4) a draft forecast plan for the privatization of municipal property;

5) calculation according to the main income classification items;

6) the final document of public hearings on the city's draft budget.

The draft decision on the budget of the city within one working day after being submitted to the city duma is sent to the standing committee responsible for considering the budget. The decision on the compliance of the submitted materials with the legislation is announced to the head of the city within three days. If the accompanying documents do not meet the requirements, the project is returned to the developer.

Subject to the compliance of the project, the head of the city sends this project to the standing committees for consideration and submission of proposals and amendments, as well as to the Chamber of Control and Accounts for the preparation of an opinion.

Proposals and amendments from the standing committees and the opinion of the Chamber of Control and Accounts on the city's draft budget are sent to the standing committee responsible for considering the city's budget.

The draft decision on the city budget with proposals and amendments is considered at a meeting of the standing committee, finalized and submitted for consideration at a meeting of the city duma.

The deadline for making a decision on the city budget at a meeting of the City Council cannot be later than December 20.

The next stage of the budget process is budget execution. The city administration ensures the execution of the city budget. The city establishes the treasury execution of the budget. The organization of the execution and execution of the budget, the management of the unified account of the city budget and budgetary funds are entrusted to the finance committee of the city administration. The city budget is executed on the basis of the principle of unity of the cash desk and subordination of expenses.

Between the city administration and the Department of the Federal Treasury, annually before the approval of the city budget for the next financial year, an agreement is concluded on the implementation of the budget.

The bank through which cash execution of the budget will be carried out is selected on a competitive basis. The legislative body of local self-government has the right to create a municipal tax service at the expense of the local budget to collect local taxes.

The municipal tax service unites and coordinates with the tax authorities efforts to control compliance with the tax legislation of the Russian Federation. The municipal tax service is obliged to provide the Federal Tax Service with all the necessary information (Federal Law No. 126). "On the financial foundations of local self-government in the Russian Federation".

In addition, local self-government authorities have the right to create a municipal treasury at the expense of the local budget for the purpose of qualitative budget execution. Local self-government bodies, through the territorial bodies of the Federal Treasury and in accordance with the concluded agreement, have the right to assign the following functions to the authorized bank:

1) cash execution of the local budget;

2) cash services for local governments;

3) placement of free balances of local budget funds through the purchase of state and municipal bonds with the obligatory transfer of income on them to the local budget;

4) placement of municipal bonds and tickets of municipal money and clothing lotteries.

The Finance Committee of the city administration keeps records of revenues and prepares reports on the revenues of the city budget, reconciles revenues.

The execution of the city budget by income occurs as follows:

1) transfer and crediting of income to a single account of the budget;

2) return of excessively paid amounts of income to the budget;

3) accounting for budget revenues and reporting on budget revenues.

The execution of the city's budget for expenses occurs within the limits of the actual availability of funds in the account. In this case, two procedures are observed: authorization and financing.

The authorization procedure is broken down into:

1) drawing up and approval of the budget schedule;

2) approval and communication of notifications of budgetary appropriations to the main administrators, administrators and recipients of budgetary funds, as well as approval of estimates of income and expenses to administrators of budgetary funds and budgetary institutions;

3) approval and communication of notifications on the limits of budgetary obligations to the main administrators, administrators and recipients of budgetary funds;

4) acceptance of monetary obligations by recipients of budgetary funds;

5) confirmation and reconciliation of the fulfillment of monetary obligations.

The financing procedure consists in spending budgetary funds.

If the decision on the budget has not entered into force since the beginning of the financial year, the provisional management of the budget is carried out in accordance with the Budget Code of the Russian Federation.

If in the process of budget execution there is a decrease in the volume of revenues, the head of the city administration has the right to decide on the introduction of a regime for reducing budget expenditures and introduce this regime.

Incomes actually received during the execution of the city budget in excess of those approved by the decision on the city budget are directed by the finance committee of the city administration to reduce the size of the budget deficit and payments that reduce debt obligations of the budget, without making changes and additions to the decision on the city budget. At the same time, the finance committee of the city administration draws up and approves an additional consolidated budget list.

Income actually received from income-generating activities in the execution of the city budget in excess of those approved by the decision on the budget and in excess of the estimated income and expenses are directed to finance the expenses of these budgetary institutions.

The financial year ends on December 31st.

Accounts used for the execution of the city budget of the year being completed are subject to closure.

After the end of operations on the accepted monetary obligations of the completed year, the balance of funds on the unified account of the city budget is subject to accounting as the balance of funds at the beginning of the next financial year.

Reporting on the execution of the city budget

The Finance Committee of the city administration draws up and submits quarterly, semi-annual and annual reports on the execution of the city budget to the city duma, the Ministry of Finance of the constituent entity of the Russian Federation. The head of the city administration submits the following reports:

1) report on the implementation of the targeted investment program;

2) report on the implementation of municipal target programs;

3) a report on the implementation of the budget of the municipality in the amount corresponding to the quarterly (monthly) reporting established by the Ministry of Finance of the Russian Federation;

4) an updated budget breakdown of income, expenses and sources of internal financing of the city budget deficit as of the reporting date;

5) an updated list of the departmental structure of budget expenditures as of the reporting date;

6) analysis of the execution of the city budget in terms of income (taking into account the receipts of gratuitous transfers from the regional budget to the city budget), expenses, sources of internal financing;

7) analysis of the execution of expenses carried out at the expense of subventions and subsidies of the regional budget;

8) an analytical note to the analysis of the updated budgetary assignments of the city budget with annexes;

9) a register of orders for the redistribution of the city budget funds allocated to the main manager of the city budget funds;

10) a report on the use of the city administration's reserve fund;

11) information on financing under the section "Housing and communal services";

12) analysis of financing of energy resources from the city budget;

13) reports on the provision and repayment of budget loans and budget credits;

14) an extract from the municipal debt book;

15) information on income received from entrepreneurial and other income-generating activities;

16) information on expenses incurred at the expense of funds received from entrepreneurial and other income-generating activities;

17) forecast of the execution of the city budget in terms of income and expenses;

18) a report on income received from the use of municipal property of the city;

19) analysis of income received from the use of municipal property of the city;

20) quarterly information about the municipal property of the city in figures and facts;

21) information on accounts payable by individual codes of economic classification;

22) other documents.

Consideration and approval of the annual report on the execution of the city budget are carried out by the City Council. It is submitted to it no later than May 1.

Based on the results of consideration of the annual report on the execution of the city budget, the City Council takes one of two decisions: either approve the annual report on the execution of the city budget, or not.

The expenditure part of the city budget provides for the creation of a reserve fund. The share in the total amount of expenses should not exceed 3% of the approved expenses of the city budget.

The purpose of the creation of the fund is to finance unforeseen urgent expenses for emergency recovery work, elimination of the consequences of natural disasters and other emergencies that take place in the current financial year, and local events not provided for in the city budget.

Directions for spending the funds of the fund:

1) financing of unforeseen economic expenses (for holding anniversary events of national and local significance; holding meetings, exhibitions and seminars of regional and local significance; ensuring the reception of official delegations; publishing collections of normative acts of local governments; carrying out repair and restoration work at the request of local governments and their structural subdivisions) and the provision of material assistance to employees of local governments;

2) financing of expenses for urgent targeted social support (support for non-profit organizations, public organizations and associations; payment of one-time bonuses and provision of one-time financial assistance to citizens for special merits; social support for low-income and low-income groups of the population; additional financing of costs for the provision of medical and pharmaceutical care to patients with severe chronic diseases (oncology, diabetes, blood diseases, active form of tuberculosis, etc.); assistance in holding competitions, support for amateur children's creativity; material support for especially gifted youth, university and technical school students; material support for creative workers; provision of various types of assistance to educational and medical institutions, children's and social institutions, cultural institutions; provision of one-time material support to organizations and institutions financed from budgets of other levels);

3) financing of emergency recovery work to eliminate the consequences of natural disasters and other emergencies (funds for carrying out emergency recovery work to eliminate the consequences of natural disasters and other emergency situations; provision of one-time financial assistance to citizens affected by accidents, catastrophes and natural disasters; carrying out emergency flood control measures; preparing and deploying temporary accommodation centers for the population in case of emergencies resulting from an accident, hazardous natural phenomenon, catastrophe, natural or other disaster that may result in human casualties, damage to human health, significant material losses and disruption living conditions of people).

The Reserve Fund's expenses duplicate those of the Federal Reserve Fund. The exception is the cost of material support for officials. There is no such article at the federal level.

Control over the spending of the Fund's resources is carried out in accordance with the current legislation of the Russian Federation and is entrusted to the committee on budgetary and financial, investment policy, taxes, economic development of the municipal district and the Chamber of Control and Accounts.

Author: Novikova M.V.

<< Back: The federal budget of the Russian Federation is the main financial plan of the country

>> Forward: Interbudgetary relations

We recommend interesting articles Section Lecture notes, cheat sheets:

▪ Logistics. Crib

▪ Forensic medicine and psychiatry. Crib

▪ History of medicine. Crib

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:

The existence of an entropy rule for quantum entanglement has been proven 09.05.2024

Quantum mechanics continues to amaze us with its mysterious phenomena and unexpected discoveries. Recently, Bartosz Regula from the RIKEN Center for Quantum Computing and Ludovico Lamy from the University of Amsterdam presented a new discovery that concerns quantum entanglement and its relation to entropy. Quantum entanglement plays an important role in modern quantum information science and technology. However, the complexity of its structure makes understanding and managing it challenging. Regulus and Lamy's discovery shows that quantum entanglement follows an entropy rule similar to that for classical systems. This discovery opens new perspectives in the field of quantum information science and technology, deepening our understanding of quantum entanglement and its connection to thermodynamics. The results of the study indicate the possibility of reversibility of entanglement transformations, which could greatly simplify their use in various quantum technologies. Opening a new rule ... >>

Mini air conditioner Sony Reon Pocket 5 09.05.2024

Summer is a time for relaxation and travel, but often the heat can turn this time into an unbearable torment. Meet a new product from Sony - the Reon Pocket 5 mini-air conditioner, which promises to make summer more comfortable for its users. Sony has introduced a unique device - the Reon Pocket 5 mini-conditioner, which provides body cooling on hot days. With it, users can enjoy coolness anytime, anywhere by simply wearing it around their neck. This mini air conditioner is equipped with automatic adjustment of operating modes, as well as temperature and humidity sensors. Thanks to innovative technologies, Reon Pocket 5 adjusts its operation depending on the user's activity and environmental conditions. Users can easily adjust the temperature using a dedicated mobile app connected via Bluetooth. Additionally, specially designed T-shirts and shorts are available for convenience, to which a mini air conditioner can be attached. The device can oh ... >>

Energy from space for Starship 08.05.2024

Producing solar energy in space is becoming more feasible with the advent of new technologies and the development of space programs. The head of the startup Virtus Solis shared his vision of using SpaceX's Starship to create orbital power plants capable of powering the Earth. Startup Virtus Solis has unveiled an ambitious project to create orbital power plants using SpaceX's Starship. This idea could significantly change the field of solar energy production, making it more accessible and cheaper. The core of the startup's plan is to reduce the cost of launching satellites into space using Starship. This technological breakthrough is expected to make solar energy production in space more competitive with traditional energy sources. Virtual Solis plans to build large photovoltaic panels in orbit, using Starship to deliver the necessary equipment. However, one of the key challenges ... >>

Random news from the Archive TPS62510 - 1,5A Buck Converter for Portable Devices 29.07.2006 Texas Instruments has unveiled a new 1,5A DC/DC buck converter that can significantly extend the runtime of alkaline or nickel metal hydride (NiMH) batteries (up to 2 cells per battery) used in a variety of portable electronics. The TPS62510 is 97% efficient and operates with input voltages ranging from 1,8V to 3,8V. The device can operate with 3,3V, 2,5V, or 1,8V point-of-load power supplies The TPS62150 operates at a fixed frequency of 1 MHz in PWM mode and provides high efficiency at rated load currents. At low load currents, the device can automatically switch to reduced power consumption mode. The TPS62510 improves overall system reliability. This is made possible by constantly monitoring the power supply voltage as well as the converter output voltage, eliminating the possibility of undesirable voltage fluctuations.

Other interesting news:

▪ Lego - the perfect heat insulator

▪ Aliens better hurry

▪ Trap of eternal desires

▪ Apple phones will be able to fall like cats

▪ Extraction of useful resources on the moon

News feed of science and technology, new electronics

Interesting materials of the Free Technical Library:

▪ section of the site Encyclopedia of radio electronics and electrical engineering. Article selection

▪ article Drawing an object on a map. Basics of safe life

▪ article How is wax obtained? Detailed answer

▪ article Asphodil. Legends, cultivation, methods of application

▪ article Smooth turning on the kinescope filament. Encyclopedia of radio electronics and electrical engineering

▪ article Integrated switches: parameters, application. 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