State and municipal finances. Interbudgetary transfers (the most important)

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State and municipal finances. Interbudgetary transfers (the most important)

Lecture notes, cheat sheets

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25. Intergovernmental transfers

To improve the effectiveness of solving the current problems of territorial budgets, interbudgetary transfers play an important role in terms of funds provided to the budgets of the constituent entities of the Russian Federation and local budgets.

Their intended purpose and composition are formed on the basis of federal budget expenditures, taking into account changes in budget and tax legislation. Transfers are made through the Federal Fund for Financial Support of the Subjects of the Russian Federation, the Regional Development Fund, the Regional and Municipal Finance Reform Fund and the Compensation Fund.

Forms of interbudgetary transfers provided from the federal budget are determined by the Budget Code of the Russian Federation.

These include:

1) budget credit- this is a form of financing budget expenditures, which provides for the provision of funds to legal entities or other budgets on a returnable and reimbursable basis;

2) subsidies- these are budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous and irrevocable basis. Subsidies are made from the Federal Fund for Financial Support of the Subjects of the Russian Federation. They are provided subject to compliance by state authorities of the constituent entities of the Russian Federation and local governments with the budgetary legislation of the Russian Federation and the legislation of the Russian Federation on taxes and fees;

3) subvention- these are budget funds provided to the budget of another level of the budget system of the Russian Federation or to a legal entity on a gratuitous and irrevocable basis for the implementation of certain targeted expenditures. Subventions are deducted from the Federal Compensation Fund;

4) subsidy- these are budget funds provided to the budget of another level of the budget system of the Russian Federation, to an individual or legal entity on the terms of shared financing of targeted expenses. They are provided subject to compliance by state authorities of the constituent entities of the Russian Federation and local governments with the budgetary legislation of the Russian Federation and the legislation of the Russian Federation on taxes and fees.

Budget loans from the federal budget are provided for no more than a year. This distinguishes the budget loan from other types of transfers, as it operates on the principles of repayment.

The amount of credit is determined when drafting the federal budget. Each entity has the right to acquire this kind of financial income.

Author: Novikova M.V.

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