Budget Expenditure
Budget expenditures are those allocated from the budgetcash. The only exception to this is that they are a source of financing budget deficits. Such costs are the basis of a complex system of relationships that cover not only state authorities, but also members of civil society. The distribution of state budget funds for individual items of expenditure is fixed in special laws. Planning of the budget, its discussion, as well as the process of execution and control of expenditures are elements of the overall budget process.
The quantification of costs isindicators of their growth rate, their total volume, dynamic growth in relation to the gross domestic product, the structure of these expenditures, as well as the size of the state's revenues, which in turn depends on the level of taxation, non-tax budget revenues, tax collection and a number of other factors. To study the structure of such spending, the classification of budget expenditures is used.
Various countries periodically receive programsreduction of different types of spending to save budget funds and increase the effectiveness of their use. But in general, the state budget expenditures tend to outstrip the gross domestic product. Factors affecting the dynamics of spending are:
- economic development of the country;
- human development (demographic and social indicators);
- NTP;
- political and institutional factors;
- external circumstances (various emergencies like wars or natural disasters).
Budget expenditures are classified according to certain characteristics.
On participation in public productionstate spending is divided into two parts: the first is directed to the development of the level of material production and the improvement of its sectoral structure, the other part is used to maintain and further develop the non-productive sphere. The development budget is created to support state support for investors investing in the development of highly efficient investment projects, either directly allocating them on terms of urgency, pay and repayment, or by providing them with state guarantees.
For public purposes, budget expendituresare divided into the following main expenditure groups: defense financing; industrial production; science; activities of the social and cultural sphere; formation of reserve funds; the content of law enforcement agencies and state authorities and management; expenses for servicing the public debt; foreign economic expenses; other payments and expenses. Additional costs are allocated for financing priority national programs.
All of the above budget expenditure groupsare divided in turn by departmental and target characteristics. According to the first classification, each expenditure group is allocated the corresponding: either the ministry or other public institution, or the legal entity receiving the budget appropriations. This classification sign reflects the most mobile changes in the expenditure structure. On the basis of the target, expenditure is allocated to specific costs. Classification of expenditures for special purposes creates prerequisites for the rational use of budgetary funds, and is the basis for effective control over the expenditure of budgetary funds.
On a territorial basis, budget expenditures are divided according to the levels of state administration.
