Budgetary control is a kind offinancial accounting carried out by the state. This activity is aimed at ensuring the legality, effectiveness, reliability of economic phenomena and processes.
Budgetary control is included in thefinancial and economic control. It is considered as a complex of certain activities that are conducted by state bodies to verify the effectiveness, legality and appropriateness of actions in the formation, use and distribution of state funds in general, as well as of its subjects and territorial bodies. Budgetary control reveals the reserves of increasing revenues to the budget, as well as methods for improving fiscal discipline. All these measures have a legislative basis due to the fact that it is the law that ensures regulation of control relations in the sphere of financial activity.
The concept of "budget control" is not contained incurrent legislation. To determine the essence of this activity, specialists proceed from the fact that it is included in the complex of financial actions of the state, municipal formations. In other words, budgetary control refers to a method that is used to ensure legality in the course of financial activities.
The peculiarity of this method of accounting (unlike customs, currency or tax) is the availability of special content, a specific object, subject, tasks and purposes.
The content of budget control ischecking the implementation of the country's budgets, extra-budgetary funds. The same concept includes the assessment of the organization of monetary circulation, the use of credit resources, the state debt (external and internal), the reserves of the state, the provision of tax and financial benefits and benefits.
The purpose of budgetary control should be consideredensuring the legality of financial performance. In other words, compliance with legislation is analyzed and assessed by all parties involved in financial relations.
This goal can be achieved by accomplishing certain tasks. They include:
- Compliance with legislation.
- Ensuring effective control over the formation of state profits and its rational application.
- Compliance with the financial process.
- Implementation of control over the implementation of the structure of intergovernmental fiscal relations.
- Prevention, suppression of offenses in the sphere of finance.
- Coordination and verification of the activities of control units.
The object of financial verification is money relations, which are formed at all stages of the financial process.
Subjects are the bodies of budget control. These include legislative, executive branches of power, officials of territorial administrations in municipalities. Subjects are divided into supervised and controlling. The first category includes divisions of state power, enterprises, organizations, institutions. In other words, controlled objects include all objects that received, transferred or used budget funds.
Different types of financial checks are based on specific methods and forms of their conduct. To reduce the risk of errors are often applied PMC KIS Budgeting.
The existing legislation is dividedstate financial check for internal and external. Internal control is exercised by the executive. This check, conducted with respect to the activities of the parties to financial relations, is inextricably linked with the tasks that are facing their participants.
External control is carried out by independent bodies. This check is made on the financial performance of the executive.