Depending on their economic. Depending on the level of economic development. Among the capital expenditures of budgets are

Budget expenditures, depending on their economic content, are divided into current expenditures and capital expenditures, according to the economic classification of budget expenditures of the Russian Federation.

Capital (investment) budget expenditures represent the part of budget expenditures that ensures innovation and investment activities, including investments 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 repairs and other expenses associated with expanded reproduction, expenses during the implementation of which property owned by municipalities is created or increased, other budget expenses included in capital budget expenses in accordance with the economic classification of budget expenses. A development budget can be formed as part of capital expenditures of budgets.

Current budget expenditures include expenses ensuring the current functioning of local governments, budgetary institutions, providing 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 expenses not included in capital expenditures in accordance with budget classification of the Russian Federation.

Other classifications of budget expenditures are also used. Of greatest interest is the classification of expenses depending on the priority of certain local expenses. In accordance with this approach, expenses are ranked into several groups, the sequence of which reflects the degree of priority of expenses. This allows local budget revenues to be distributed accordingly. The most important expenses, the mandatory ones of which are established by law, are assigned the most reliable sources of income. Voluntary, optional expenses may be assigned to the least stable sources of income. The use of such a methodology makes it possible to create a fairly complete picture of the basic needs of a municipality and to use a different mode of financing and control over execution for different areas of spending funds.

In general, the expenditure part of local budgets includes:

Costs associated with resolving issues of local importance established by the legislation of the Russian Federation and the legislation of the constituent entity of the Russian Federation;

Expenses associated with the implementation of certain state powers transferred to local governments;

Costs associated with servicing and repaying debt on municipal loans and advances;

The procedure for executing the expenditure portion of the local budget is established by the charter of the municipality or other legal act of the local government body.

In accordance with Russian legislation, only those expenses that are determined by law (but not by-laws) are mandatory for municipalities, as well as expenses necessary to pay and service debts and arrears arising from contractual obligations and court decisions. The varied expenditures of local budgets reflect the division of competence between territorial levels of government.

The following functional types of expenses are financed exclusively from local budgets:

Formation of municipal property and its management;

Organization, maintenance and development of educational, healthcare, cultural, physical culture and sports institutions, mass media, and other institutions that are municipally owned or administered by local governments;

Organization, maintenance and development of municipal housing and communal services;

Municipal road construction and maintenance of local roads;

Improvement and landscaping of municipal territories;

Organization of disposal and processing of household waste;

Organization of transport services for the population and institutions that are municipally owned or administered by local governments;

Ensuring fire safety;

Protection of the natural environment in the territories of municipalities;

Material current costs;

Deductions and subsidies;

Expenses for paying interest on loans received;

Other expenses.

Current budget:

Taxes and fees;

Rent;

Rent;

Interest on loans issued;

Income from participation in the capital of enterprises;

General deductions (subsidies) of the subject of the Federation;

Other supply.

Investment budget:

The excess of current income over current expenses, as well as investment income, is used for investment expenses, including:

Repayment of loans and interest on them;

Capital expenditures and investments;

Replenishment of reserve funds.

Investment budget:

Separate tax revenues;

Municipal loans;

Subventions of a constituent entity of the Federation for capital investments.

It is necessary to strive to ensure that the volume of revenues in the current operations budget exceeds expenses. The resulting difference is involved in the formation of the investment budget. The indicator of how much the municipality will be able to achieve this by skillfully managing the current operations budget for deductions to the investment budget is an important characteristic of the financial capabilities of the municipality and indicates long-term solvency when attracting loans and credits.

The development budget (investment budget) includes income and expenses allocated for improving the municipal economy (expenses for construction work and the acquisition of tangible property) and investment contributions to third parties, as well as contributions from the federation and constituent entities of the federation, income from the sale of property, contributions, and also special financing operations, for example, obtaining and repaying loans, contributions to reserve funds and withdrawals from these funds.

Such a structure, despite a certain degree of convention, makes it possible to clearly define and adjust activities in the main areas of development of the municipal economy. It also seems advisable to use a grouping of budget items for funds allocated for the implementation of the own powers of local governments and for funds allocated for the execution of state powers that were delegated by higher authorities. Although such groupings cannot always be used in their pure form, their use contributes to a more competent organization of financial planning and budgeting process.

The budget should be drawn up on the basis of a forecast of the socio-economic development of the municipality. According to current legislation, a forecast of long-term socio-economic development of the territory is developed on the basis of data on the socio-economic development of the territory for the last reporting period, on the basis of the current forecast of socio-economic development of the territory until the end of the base year and on the basis of trends in the development of the economy and social sphere for the planned financial year and precedes the preparation of draft budgets. A change in the forecast for the socio-economic development of the territory during the preparation and consideration of the draft budget should cause a corresponding change in the main characteristics of the draft budget.

Simultaneously with the draft budget for the next financial year, a long-term financial plan is being formed. The plan is developed on the basis of a medium-term forecast of the socio-economic development of the municipality and contains data on the forecast capabilities of the budget for mobilizing revenues, attracting state or municipal borrowings and financing basic budget expenses.

The long-term financial plan is not approved by law and is drawn up for the purposes of:

Informing representative authorities about the expected medium-term trends in the development of the economy and social sphere;

Comprehensive forecasting of the financial consequences of the implementation of draft programs and laws;

Identifying the need and possibility of implementing financial policy measures in the future;

Monitor long-term negative trends and take appropriate measures in a timely manner.

A long-term financial plan is developed for three years, of which the first year is the year for which the budget is drawn up, and the next two years are the planning period during which the actual results of the stated economic policy are monitored.

The initial basis for the formation of a long-term financial plan is the budget for the current year. The long-term financial plan is adjusted annually taking into account the indicators of the updated medium-term forecast of the socio-economic development of the municipality, while the planning period is shifted forward by one year. The long-term financial plan is compiled according to aggregated indicators of the budget classification.

There are three main types of budgets.

Line-object (line-item) budget

The earliest approach to budgeting, the line-object or line-item budget, remains the most popular among all government bodies due to the accuracy of reporting and ease of control.

In a line-item budget, funds are distributed among specific items or expenditure items. Expenses for wages, equipment, office supplies, etc. are calculated for the next year in such a way that the relevant service has only a limited opportunity, if justified, to increase by a certain amount the amount of expenses provided for under this item in the previous financial year. The main advantage of the existing linear-object budget system is strict control over the activities of funding agencies.

Many researchers note significant disadvantages of the linear-object system, since this type of budget has very limited applicability as a management tool, and therefore is usually used only in conjunction with a financial plan.

In particular, most experts note that such a budget is difficult to correlate with goals. This approach does not provide for a comparison of costs and results, ignores possible policy alternatives, and does not ensure the integration of planning, budget development and control functions. The linear-object budget is inertial; any changes are possible only in the form of small increments of the corresponding indicators of the previous year.

Since the only source of information about the future budget for local authorities is usually the previous year's budget, and each department sought to increase the expenditure side of the budget, budget hearings became the basis for determining which expenditure items should be cut and which should be left at the same level.

An increase in budget items is not justified by the fact that a particular department will improve the quality of its work due to additional budget injections or worsen it due to budget cuts. In fact, any department can always make a compelling case for its demands for increased budgets in the interests of improved performance. However, different departments have different influences. The decisive criteria for increasing articles are the authority and influence of the head of the relevant municipal service, the ability to organize support for his demands, or the fact that representative bodies of local government can win the sympathy or antipathy of voters by satisfying or rejecting a certain demand.

Executive budget

Due to the limitations of the linear-object approach, which leads to an increase in the expenditure side of the budget, in the 30s of this century a new management approach to budgeting was developed.

In accordance with this approach, costs are distributed by type of activity, and not by expense item. Based on the new concept, operational analysis began to be used - a method that allows one to compare elements of the chain “costs - service delivery processes - results” with the subsequent assessment of the result, which is assessed in the corresponding units of measurement of activity. Such a budget requires more information about what work processes are used, what quality of service can be provided and at what cost.

This approach has received significant advantages over the concept of a linear-object budget. Focusing on specific management objectives, the executive budget helps authorities in assessing the performance of organizations by translating budget categories into functional terms and terms of increasing the efficiency of execution of prescribed activities. Based on the measurement of working time costs, financial resources and the ratio of the number of employees to the volume of activity, appropriate standards are established.

Table. Example of an executive budget

Types of jobs	Expenses labor for unit work	Price human- hours, rub.	Specific costs per unit of work,
			Salary	Materials	Equipment	Total
Washing lamps
Replacing lamps
Column painting
Electrical wiring repair

Optimal level of service:

Cleaning traffic lights - twice a year

Replacing lamps - once a year

Painting of pillars - once every two years

Electrical wiring repair - once every two years

Number of serviced traffic lights: 2000 pcs.

Washing traffic lights 2000 x 2 x 5 = rub.

Replacement of lamps 2000 x 1 x 20 = rub.

Painting of pillars 2000 x 0.5 x 23 = rub.

Repair of electrical wiring 2000 x 0.3 x 38 = rub.

Total budget expenses: rub.

However, the experience of using executive budgets has shown a number of shortcomings in their application. Many budget estimates have proven to be less accurate than those associated with line-object budgets. The reasons for preferring any one type of expense over another are unclear to management. No alternatives are provided on the basis of which a better choice could be made. Another challenge for financial services workers is assessing the quality of work. Accurate performance measurement is hampered by the inherent difficulties of the executive budget. It is quite easy to calculate the volume of government procurement and the costs of maintaining the government apparatus. However, it is very difficult to objectively and accurately measure the performance of public services. Detailing and categorizing work in order to identify their units of measurement is often difficult. The collection of relevant data is usually done sloppily, resulting in unreliable data. In addition, the executive budget system is not focused on solving long-term problems.

Program budget

Budgets created for specific programs and projects are called program budgets. Since a program may span multiple executive organizational levels, the program budget must be broader and more integrated than the executive budget. Program costs are generalized total costs that are obtained by aggregating the costs of various departments of the organization. A detailed breakdown of the expenses of the organization's divisions is not necessary for the program budget, since it is not always based on the activities of only these divisions, and also because the organization can be simultaneously engaged in several programs, within which specific divisions are responsible for the activities. Therefore, the program budget is better suited to the organizational needs of higher levels of government, while the executive budget is better suited to the needs of lower levels of government.

The program budget is usually focused on the long term and is long-term. While the executive budget is based on past performance, the program budget is based on an assessment of what performance can be expected in the future. From this point of view, the program budget is better suited for the formation of long-term state socio-economic policy.

The program budget is more suitable for the purposes of comprehensive budget planning, including providing information to the central budget authority, the chief executive, and the legislature. The executive budget must also contain the information needed for analysis, but must also be detailed enough to meet the needs of lower levels of government.

The program budget organizes budgetary expenditures by program or functional area to ensure that stated goals are achieved. The key elements of this process are long-term planning, goal setting, program development, and performance analysis. However, it should be borne in mind that mistakes made in setting goals and developing programs can have a painful impact on the effectiveness of the activities of municipal authorities as a whole.

The development of a program budget consists of four critical steps:

1. Setting goals, choosing methods, sequence of steps and time to achieve goals.

2. Calculation of costs for the implementation of each necessary step.

3. Development of a complete program of work necessary to achieve the goals.

4. Determination of criteria for assessing how successfully the goals have been achieved.

The program budget allows you to increase the degree of rationality of decisions made. The approach requires consideration of the consequences of implementing programs and the results of actions taken. In addition, the role of planning in budgetary decision-making is emphasized. However, setting goals turns out to be difficult due to the complexity of the problems and their different visions by different participants in the goal-setting process. The development and use of the program budget may require significant changes that could have an impact on many other areas closely related to the budget.

In practice, real events in the economic, social and political spheres often differ significantly from those assumed, which undermines the reliability of the planned calculations carried out when drawing up the long-term budget. Planned calculations often turn out to be overestimated and unrealistic for execution. Cost-benefit analysis does not always take into account the indirect consequences or side effects of actions taken or proposed. An objective analysis of the results may not be possible.

The nature of the program budget development procedures tends to centralize the decision-making process. Responsibility for decisions made and policies chosen falls on central authorities, which leads to improved coordination of activities, but at the expense of loss of initiative at lower levels of decision-making. Such a budget requires constant centralized coordination and clear interaction between performers. Experts note that this approach destroys existing communication channels between administrative units. Since the patterns of organizational connections necessary for the implementation of each subprogram will be different for each specific case, not a single stable communication channel is created to replace the existing ones. Focus on the analysis of alternatives leads to a state of constant uncertainty for all interested parties instead of the stability of previous budget systems.

In general, program budgets have a limited scope and cannot replace the existing system of linear-object budgets. The use of a program budget can be useful for the centralized implementation of a certain system of measures that cannot be effectively and efficiently implemented by the relevant services within the framework of ongoing planning and budgeting.

Example program budget

Budget for the road traffic accident prevention program.

Program goals:

Improving road infrastructure.

Strengthening control over traffic violators.

Subroutine	Executor	Period of execution	Contractor expenses	Contractor costs
Reconstruction of street lighting
Installation of traffic lights	Road Management Department
Improving the accident notification system	Control
Street cleaning	Road Management Department
Training the population on traffic rules	Public Relations Department
		Total:

Off-budget funds

Not all necessary expenses can be carried out within the budget and budgetary procedures. In addition, there are certain irregular or targeted sources of income that are not included in the budget.

For the optimal use of such funds, representative bodies of local self-government have the right to create targeted extra-budgetary funds that have independent sources of financing and are used in accordance with their intended purpose. Extra-budgetary funds are created in the manner and under the conditions established by the legislation of the Russian Federation. Taxes, fees and other payments intended to be credited to the municipal budget are not subject to transfer to extra-budgetary funds.

Among the most frequently used sources of extra-budgetary funds of municipalities are:

Mandatory payments of fines and penalties from individuals and legal entities that are not subject to credit to the local budget (fines and other payments collected for damage caused to the municipality, local objects of historical and cultural heritage; for violation of state price discipline; for violation of territory maintenance rules; for illegal installation of kiosks and trade pavilions);

Voluntary contributions from legal entities and individuals for certain purposes;

Income from the temporary placement of the fund's funds in credit institutions, from transactions with securities, from the return of credit resources issued to organizations at the expense of the fund's funds;

Income received for maintaining vehicles in special guarded parking lots; income from the activities of retail space;

One-time fees for the provision of additional services to the population;

Other income, in accordance with current legislation, as well as regulatory legal acts of city government bodies.

Funds from municipal extra-budgetary funds are usually used:

To finance targeted programs and activities to solve socio-economic and other socially significant problems not provided for in the budget;

developing or Third World countries(sometimes they are called agricultural, the basis of the economy is agriculture, the sale of minerals, that is, the raw materials industry is developed, etc.);

industrial (the basis of the economy of these states is industry);

post-industrial (these are modern developed states in which a scientific and technological revolution has occurred; the main wealth of these states is created in the service sector, in the industrial sector).

Depending on the form of government of the state

Monarchy, that is, the power of one person;

Republic:

• Oligarchy, that is, the power of a few;

  Polyarchy, that is, the rule of the majority; another name is liberal democracy.

Jamahiriya.

Depending on the dominant ideology of the state

ideologized;

de-ideologized.

De-ideologized (secular) states- There is no official ideology here. In ideologized states, the entire functioning of the state is determined by the dominant ideology. In particular, a person’s ability to participate in state activities, etc., depends on his views on state ideology. In deideologized states, ideological pluralism is proclaimed, that is, the opportunity to preach and develop any ideology. The state can prohibit extreme forms of ideology, such as racist ones.

Part two

Types of law

Type of law is a set of the most important features of law generated by a certain era. As in the theory of state, in the theory of law there are two approaches to typology: formational And civilizational.

With the formational approach, the most important factor determining the type of law is its class essence, that is, the interests of which class it serves. According to the Marxist theory of social development, each of the class socio-economic formations - slave, feudal, capitalist and socialist - corresponds to a certain historical type of law.

Historical type of law - this is a set of the most essential features characteristic of the legal system of a certain socio-economic formation. There are four historical types of law: slave, feudal, bourgeois, socialist.

Slave law

Slave law - it is the will of the slave-owning class elevated to law. The main objectives of slave law were: securing the private ownership of slave owners in the means of production and slaves, as well as protecting the foundations of the slave state system.

The legal history of the ancient world knows two main slaveholding state legal models: ancient Eastern and ancient. The first model was widespread in the territories of states that existed in the 4th millennium BC. - 1st floor 1st millennium AD on the Asian and African continents (Egypt, Babylonia, India, China, etc.), the second - in Ancient Greece and Ancient Rome. The main difference between these models was that the ancient Eastern legal system was built on the predominance of the state over the individual, and the ancient one, on the contrary, on the freedom of the individual and its autonomy from the state. Such freedom was possible due to the widespread prevalence of private property in ancient states. It was private property that provided citizens with a certain independence from the state, while in the countries of the Ancient East property belonged to the state and was associated with position: in order to become an owner, it was necessary to occupy a certain place in the state hierarchy.

The difference between the two legal systems of slave law was not absolute, but relative. The ancient Eastern and ancient legal systems had more similarities than differences:

1) both systems legally established class-class inequality, that is, inequality not only between free and slaves, but also inequality between separate groups of free people;

2) both systems were closely related to religion. The concepts of sinful and criminal largely coincided, religious norms served as a source of legal norms, and clergy were often at the origins of justice;

3) the legal norms enshrined in most legislative monuments of both systems were records of specific cases from judicial practice - incidents, or instructions for judges, did not contain general rules of conduct and were of a casuistic nature. Crucial importance for legal actions was compliance with a certain form of their implementation;

4) both systems did not know the division of law into branches;

5) with the exception of Roman private law, all ancient law was characterized by a low level of legal technology: strict legal terminology was not developed, legislators used everyday language.

The pinnacle of slaveholding law was Roman law. It was divided into private and public. The classic distinction between public and private law was given by the Roman jurist Ulpian, who wrote: “Public law is that which relates to the position of the Roman state; private - which refers to the benefit of individuals.” Roman law was distinguished by the highest level of legal technology, precision of formulation, validity of decisions, specificity, practicality, and vitality. It reached its highest level of development in the regulation of property relations, primarily property relations. Even after the fall of the Roman Empire, Roman private law continued to exist, exerting a huge influence on the legislation of European countries (in particular, during the formation and development of bourgeois states), on legal thought and the legal history of mankind.

Feudal law

Feudal law represented the will of the dominant feudal class in the Middle Ages, elevated to law. Its main task was to legally formalize and regulate the property rights of feudal lords to land and other means of production, ensuring their political and economic dominance in medieval society. Feudal law was characterized by the following features:

1) the main place in feudal law was occupied by the norms regulating land relations, since it was land that represented the main wealth in the Middle Ages;

2) feudal law was a privileged right that consolidated the inequality of the various classes of medieval society. A person's social status was determined in accordance with the place he occupied in the feudal hierarchy. Each class had its own court; only the peasants were subject to the court of the master, since they were outside the feudal hierarchy. The investigative (inquisitorial) process dominated, built on a system of formal evidence, of which the confession of the accused himself was considered the most perfect evidence. Witness testimony was taken into account taking into account the social status of the witness;

3) feudal law is the right of the strong. It openly recognized violence as a source of law (primarily on the part of the feudal lord in relation to the peasant);

4) feudal law was inherent particularism, i.e., the absence of a unified system of law throughout the country. The law was fragmented; acts of individual feudal lords and local customs prevailed locally;

5) like the law of the ancient world, feudal law retained a close connection with religion;

6) feudal law did not know the division into branches of law. Its components were manorial law, city law, commercial law, canon law and royal law.

As commodity-money relations developed in feudal society, feudal law borrowed a number of institutions and norms of Roman law. This process was called the reception of Roman law. Beginning in the Middle Ages, it continued in modern times - the era of the formation of bourgeois relations.

Bourgeois law

Bourgeois law formed during the period of the XVII-XIX centuries. and represented the will of the bourgeois class elevated to law. In legal science today, this law is also called modern law, since in its main features it is still in effect to this day. Bourgeois law is characterized by:

1) secularism is a right that is not related to religion;

2) high legal technology and the creation of an extensive branch system of law;

3) division of law into private and public;

4) recognition of the law as the main source of law. The main tasks of bourgeois law are the protection of capitalist ownership of land and the preservation of the main means of production in the hands of the bourgeoisie.

Socialist law

According to Marxist theory socialist law represents at the first stage - the stage of formation and development of the socialist state - the will of the proletariat, peasants and working intelligentsia raised into law, and at the second stage - the stage of developed socialism - the will of the entire people raised into law. It is not eternal: having arisen together with the state as a class institution, socialist law will die out along with it. In reality, socialist law was of a declarative nature and was subordinated to the state.

Currently, the formational approach to the typology of law is subject to serious criticism. The understanding of law solely as the will of a single, dominant class elevated to law is outdated. Modern legal science sees in law the state-established ideas of society about what is lawful and unlawful, permitted and prohibited. Law is not a tool of class domination, but a means of achieving social compromise. At the same time, the civilizational approach to the typology of law directs researchers to study the specifics of the law of each civilization. However, such a methodology does not allow us to identify common features and patterns of development of the legal development of mankind and model a unified classification. Therefore, modern legal science, studying the history of law, prefers such scientific categories as the legal system and the legal family to the concept of “type of law”.

Vocabulary lesson

Canon law - right of the Christian church. Manorial law - a set of legal norms that regulated relations in the feudal estate between peasants and feudal lords.

Formal proof system - a procedure in which the value of each piece of evidence is determined by law and depends on the social status and religion of the witness.

Question number 2 part two

Expenditures of the state budget of the Russian Federation.

State budget expenditures- these are funds aimed at financially supporting the tasks and functions of state and local government.

All expenses can be divided into the following groups:

§ military;

§ economic;

§ for social needs;

§ for foreign policy activities;

Thus, the costs go to:

governmental support individual industries;

financing:

Social and cultural events,

Country defense,

Law enforcement activities,

International cooperation,

Repayment and servicing of public debt;

Industry

Social politics

Agriculture

Public Administration

International activity

Defense

Law enforcement

Healthcare

Financial support for regions.

This division of budget expenditures, characterizing the sectoral proportions of the distribution of budget funds, allows for the redistribution of state resources for the purpose of structural transformation of social production.

The main source of cash receipts to the budget is: national income, national wealth, internal and external loans.

Expenditures of the federal budget of the Russian Federation are classified:

1) by its role in the process of reproduction - for costs associated with financing material production and maintaining the non-production sphere. This distinction allows us to analyze in more detail the role of the state and the importance of the budget in regulating the economic and social development of society.

2) according to functional purpose - for expenses on financing the national economy, socio-cultural events, national defense, maintenance of the administrative apparatus, on law enforcement and security, on fundamental research and promotion of scientific and technological progress, on expenses for servicing the public debt.

Each type of expense has qualitative and quantitative characteristics. High quality reflects the economic nature of the phenomenon and establishes the purpose of budget expenditures, and quantitative - their value.

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

The bulk of the funds comes from current expenses. These expenses ensure the current functioning of state authorities of local self-government, budgetary institutions, the provision of state support to other budgetary and individual sectors of the economy in the form of grants, subsidies and subventions, as well as other budget expenses not included in capital expenditures in accordance with the budget classification. They include expenses for the purchase of goods and services, labor of civil servants, wages, payments on internal loans and public external debt, etc.

Capital Expenditures– these are expenses that ensure innovation and investment activities in accordance with the approved investment program. These include

(Let's explain some expenses)

1. Expenditures on public administration and local self-government include the costs of maintaining the relevant bodies of state power and local self-government - representative (legislative) and executive. These expenses, being the material and financial basis for the activities of government bodies, allow them to manage the economy.

2. Expenditures on the judiciary, law enforcement activities and ensuring state security cover the funds necessary to maintain the prosecutor's office, internal affairs and internal troops, the criminal procedural system, customs authorities, tax police, border service and state security.

3. In expenditures on the national economy The main place is occupied by deductions in the sectors of agriculture, housing and communal services, consumer services and some other sectors.

4. Significant budget funds are annually allocated to financing of social and cultural events. These are costs for education, health care and physical education, social security, social assistance, culture and art, and the media. They allow the state to develop a system of public education, finance culture, satisfy the minimum needs of the population for medical care, provide social protection for citizens, and increase the level of their social security. The largest amounts are allocated to finance education. The priority remains free education and healthcare. Free general and competitive vocational education is guaranteed.

Considerable attention is paid to the social protection of the least affluent segments of the population. Measures are being envisaged to increase the minimum wage, increase unemployment benefits, compensation for meals for preschool children, schoolchildren, and students, and to streamline the wages of employees of budgetary institutions.

It should be borne in mind that a large part of social expenditures goes through off-budget social funds (payment of pensions).

Budget expenditures on social and cultural events have not only social, but also economic significance. Being the financial basis for the implementation of social rights - to education, medical care, social protection, etc., these expenses simultaneously influence social production, helping to improve the qualitative composition of labor resources, create conditions for increasing labor productivity based on the use of scientific achievements, and accelerating scientific research. -technical progress.

5. Part of the budget funds is allocated on defense. Defense expenditures are caused by the need to preserve and develop the defense industry complex, maintain the combat readiness of the army, continue the development of the latest weapons, as well as strengthening the social protection of military personnel and members of their families, increasing salaries for officers, rising prices for military products and a number of other reasons.

6. Expenditures on basic research and promotion of scientific and technological progress constitute only a small percentage of the total amount of federal budget expenditures

7. Expenses for international activities include costs for non-trade operations (maintenance of Russian institutions and representative offices abroad, payment of membership fees to international organizations, etc.). Financing costs in the field of international activities covers international cooperation, implementation of international treaties, cultural, scientific and information relations.

IMPORTANT!

http://info.minfin.ru/fbrash.php

It takes a long time to copy all the diagrams, but if you look at the approximate percentage and numbers, he’ll definitely ask. 2011 especially. Look at what the most is spent on (there, 3 indicators are always in the lead)

http://info.minfin.ru/fbdohod.php

look at the income too!

Based on the analysis of economic practices, economic science identifies several types of economic cycles. Austrian economistSchumpeterproposed a classification of economic cycles depending on their duration. Economic cycles are named after scientists who devoted special research to this problem.

So, economic cycles are usually classified according to their duration. Based on this criterion distinguish short-term, medium-term and long-term cycles.

TO short-term (small) cycles include cyclical phenomena lasting 3-3.5 years. These cycles are called Kitchin cycles . Small cycles arise due to the formation of an imbalance between supply and demand for market consumer goods. The elimination of such imbalances requires about 3 years, thereby determining the duration of this economic cycle.

TO medium term cycles include the so-called industrial(or classical) cycles ( Juglar cycles ) And construction cycles ( Kuznets cycles ).

Duration medium-term industrial cycles is 8-12 years. The industrial cycle is associated with the renewal of fixed capital and, accordingly, with investments. Renewal of fixed capital and investment give impetus to the development of this cycle. It is believed that the industrial cycle is associated with an imbalance of supply and demand, but not in the market for consumer goods, but in the market for means of production. Eliminating this imbalance requires the creation and implementation of new technology, which usually occurs at intervals of 8-12 years.

Medium-term construction cycles have nThe duration is 15-20 years, during which residential buildings and industrial structures are renewed. Theyare associated with housing construction and the situation on the market for certain types of buildings, in particular with fluctuations in supply and demand in the housing market and in the market for buildings. The pessimistic and optimistic moods of people are of no small importance here.

TO long-term cycles include Kondratiev cycles , we are talking about the so-called Kondratieff long waves(45-50 years old). It is believed that approximately once every 45-50 years, all the cycles discussed above coincide in their crisis phase, overlapping each other. Economists associate the existence of long waves with many factors - with major scientific and technological discoveries, demographic processes and processes in agricultural production, with the accumulation of capital to create new infrastructure in the economy.

In addition to the duration criterion, there are many principles that allow classifying economic cycles: by scope (industrial and agricultural); according to the specifics of manifestation (oil, food, energy, raw materials, environmental, currency, etc.); by deployment form (structural, sectoral); on a spatial basis (national, international).

If the normal course of the process of social reproduction is interrupted by a crisis, this means a difficult transitional state of the economic system, marking the beginning of the next business cycle. A similar pattern is characteristic of the development of a market economy. It should be remembered that any crisis causes an imbalance in economic systems.

Economic crises in this regard can be classified based onscale of imbalance, according to the regularity of imbalance And by the nature of the violation of the proportions of reproduction.

According to the scale of imbalance crises are identified in the economy are common covering the entire national economy, and partial arising in any particular sphere or branch of the national economy.

According to the regularity of imbalance crises happen periodic, i.e. repeated regularly after a certain period of time, intermediate(these crises usually do not become the beginning of the next economic cycle and are interrupted at some stage of their development) and irregular arising due to specific reasons.

By the nature of the violation of the proportions of the structure of social reproduction allocate overproduction crises(imbalance between supply and demand in the market, when the supply exceeds the demand) and the crisis of underproduction(this is also an imbalance of supply and demand, but of the opposite nature - here the amount of demand will exceed the volume of supply).

In reality, the economy does not develop along a straight line (trend), which characterizes economic growth, but through constant deviations from the trend, through recessions and ascents. The economy develops cyclically (Fig. 1). The economic (or business) cycle is a periodic ups and downs in the economy, fluctuations in business activity. These fluctuations are irregular and unpredictable, so the term “cycle” is rather arbitrary. There are two extreme points of the cycle: 1) the peak point, corresponding to the maximum of business activity; 2) the bottom point (trough), which corresponds to the minimum of business activity (maximum decline).

The cycle is usually divided into two phases (Fig. 1.(a)): 1) a recession phase, which lasts from peak to bottom. A particularly long and deep decline is called depression. It is no coincidence that the crisis of 1929-1933 was called the Great Depression; 2) the rise phase or recovery, which continues from the bottom to the peak.

There is another approach in which four phases are distinguished in the economic cycle (Fig. 1.(b)), but extreme points are not identified, since it is assumed that when the economy reaches a maximum or minimum of business activity, then a certain period of time (sometimes quite long) it is in this state: 1) Phase I – boom, in which the economy reaches maximum activity. This is a period of overemployment (the economy is above potential output, above trend) and inflation. (Remember that when actual GDP in an economy is higher than potential GDP, this corresponds to an inflation gap). An economy in this state is called an “overheated economy”; 2) P phase – recession (recession or slump). The economy gradually returns to the trend level (potential GDP), the level of business activity declines, actual GDP reaches its potential level, and then begins to fall below the trend, which leads the economy to the next phase - crisis; 3) Phase III – crisis or stagnation. The economy is in a recession gap because actual GDP is less than potential. This is a period of underutilization of economic resources, i.e. high unemployment; 4) IV phase – revival or recovery. The economy gradually begins to emerge from the crisis, with actual GDP approaching its potential level and then exceeding it until it reaches its maximum, which again leads to a boom phase.

Causes of the business cycle

In economic theory, a variety of phenomena were declared to be the causes of economic cycles: sunspots and the level of solar activity; wars, revolutions and military coups; presidential elections; insufficient level of consumption; high population growth rates; investor optimism and pessimism; change in money supply; technical and technological innovations; price shocks and others. In reality, all these reasons can be reduced to one. The main cause of economic cycles is the discrepancy between aggregate demand and aggregate supply, between aggregate expenditures and aggregate production volume. Therefore, the cyclical nature of economic development can be explained: either by a change in aggregate demand with a constant value of aggregate supply (an increase in aggregate expenditures leads to an increase, a reduction in them causes a recession); or a change in aggregate supply with a constant value of aggregate demand (a reduction in aggregate supply means a recession in the economy, its growth means a rise).

Let's consider how indicators behave at different phases of the cycle, provided that the cause of the cycle is a change in aggregate demand (aggregate expenses) (Fig. 2.(a)).

In the boom phase, there comes a moment when the entire production volume cannot be sold, i.e. total expenditure is less than output. Overstocking occurs, and initially firms are forced to increase inventories. An increase in inventories leads to a curtailment of production. A reduction in production leads to firms laying off workers, i.e. the unemployment rate is rising. As a result, total incomes fall (consumer income - due to unemployment, investment income - due to the pointlessness of expanding production in the face of falling aggregate demand), and, consequently, total expenses. Households, first of all, reduce demand for durable goods. Due to the fall in firms' demand for investment and household demand for durable goods, the short-term interest rate (the price of investment and consumer credit) decreases.

The long-term interest rate tends to rise (when incomes are low and cash is tight, people start selling bonds, the supply of bonds increases, their price falls, and the lower the price of the bond, the higher the interest rate). Due to a decrease in total income (tax base), tax revenues to the state budget decrease. The amount of government transfer payments increases (unemployment benefits, poverty benefits). The state budget deficit is growing. Trying to sell their products, firms can reduce their prices, which can lead to a decrease in the general price level, i.e. to deflation (in Fig. 2.(a) output is reduced to Y1, and the price level falls from P0 to P1).

Faced with the impossibility of selling their products even at lower prices, firms (as rational economic agents) can either buy more productive equipment and continue producing the same type of goods, but at lower costs, which will reduce product prices without reducing profits (this is advisable to do if the demand for goods produced by the company is not saturated, and a reduction in prices in conditions of low income will provide the opportunity to increase sales); or (if the demand for goods produced by the company is completely saturated and even a reduction in prices will not lead to an increase in sales) switch to the production of a new type of goods, which will require technical re-equipment, i.e. replacing old equipment with fundamentally different new equipment. In both cases, the demand for investment goods increases, which serves as an incentive to expand production in industries producing investment goods. A revival begins there, employment increases, firm profits grow, and total income increases. Rising incomes lead to increased demand in consumer goods industries and increased production there. The recovery, employment growth (declining unemployment) and income growth are spreading throughout the economy. The economy is starting to pick up. An increase in demand for investment and durable goods leads to an increase in the cost of credit, i.e. an increase in short-term interest rates. The long-term interest rate decreases as the demand for bonds increases and, as a result, the prices (market rates) of securities increase. The price level is rising. Tax revenues are increasing. Transfer payments are being cut. The state budget deficit decreases and a surplus may appear. A rise in the economy and growth in business activity turn into a boom, into an “overheating” of the economy (Y2 in Fig. 2.(a)), after which another recession begins. So, the basis of the economic cycle is the change in investment spending. Investment is the most volatile part of aggregate demand (aggregate spending).

In Fig. 2. The cycle is represented graphically using the AD-AS model. In Fig. 2.(a) shows the economic cycle caused by changes in aggregate demand (aggregate expenditures), and in Fig. 2.(b) – changes in aggregate supply (aggregate output).

In conditions when a recession in the economy is caused not by a reduction in aggregate demand (aggregate expenditures), but by a decrease in aggregate supply, most indicators behave the same as in the first case (real GDP, unemployment rate, total income, firm inventories, sales volume , corporate profits, tax revenues, the volume of transfer payments, etc.) The exception is the indicator of the general price level, which increases as the recession deepens (Fig. 2.(b)). This is a situation of “stagflation” - a simultaneous decline in production (from Y* to Y1) and an increase in the price level (from P0 to P1). Investments also form the basis for exiting such a recession, since they increase the stock of capital in the economy and create conditions for the growth of aggregate supply (shift of the SRAS1 curve to the right to SRAS0).

Business cycle indicators

The main indicator of the cycle phases is the rate of growth (g), which is expressed as a percentage and calculated by the formula: g = [(Yt – Yt – 1) / Yt – 1 ] x 100%, where Yt is real GDP of the current year, and Yt – 1 is the real GDP of the previous year. Thus, this indicator characterizes the percentage change in real GDP (total output) in each subsequent year compared to the previous one, i.e. in fact, not the growth rate, but the GDP growth rate. If this value is positive, then this means that the economy is in a boom phase, and if it is negative, then it is in a recession phase. This indicator is calculated for one year and characterizes the rate of economic development, i.e. short-term (annual) fluctuations in actual GDP, as opposed to the average annual growth rate used in calculating the rate of economic growth, i.e. long-term trend of increasing potential GDP.

Depending on the behavior of economic quantities at different phases of the cycle, the following indicators are distinguished:

• pro-cyclical, which increase in the recovery phase and decrease in the recession phase (real GDP, total income, sales volume, corporate profits, tax revenues, transfer payments, import volume);
• countercyclical, which increase in the recession phase and decrease in the recovery phase (unemployment level, the value of firms' inventories);
• acyclic, which are not cyclical in nature and the value of which is not related to the phases of the cycle (export volume, tax rate, depreciation rate).

Types of cycles

There are different types of cycles based on duration:

• centennial cycles lasting a hundred or more years;
• “Kondratiev cycles,” which last 50-70 years and are named after the outstanding Russian economist N.D. Kondratiev, who developed the theory of “long waves of economic conditions” (Kondratiev suggested that the most destructive crises occur when the points of maximum decline coincide business activity of the “long-wave cycle” and the classical one; examples are the crisis of 1873, the Great Depression of 1929-1933, stagflation of 1974-1975);
• classical cycles (the first “classical” crisis (crisis of overproduction) occurred in England in 1825, and since 1856 such crises have become worldwide), which last 10-12 years and are associated with a massive renewal of fixed capital, i.e. equipment (due to the increasing importance of obsolescence of fixed capital, the duration of such cycles in modern conditions has decreased);
• Kitchin cycles lasting 2-3 years.

The identification of different types of economic cycles is based on the duration of operation of various types of physical capital in the economy. Thus, centennial cycles are associated with the emergence of scientific discoveries and inventions that produce a real revolution in production technology (remember, the “age of steam” was replaced by the “age of electricity” and then the “age of electronics and automation”). Long-wave Kondratiev cycles are based on the service life of industrial and non-industrial buildings and structures (the passive part of physical capital). After about 10-12 years, physical wear and tear of equipment (the active part of physical capital) occurs, which explains the duration of “classical” cycles. In modern conditions, the paramount importance for replacing equipment is not physical, but its obsolescence, which occurs in connection with the advent of more productive, more advanced equipment, and since fundamentally new technical and technological solutions appear every 4-6 years, the duration of cycles becomes shorter . In addition, many economists associate the duration of cycles with the massive renewal of durable goods by consumers (some economists even propose classifying them as investment goods purchased by households), which occurs at intervals of 2-3 years.

In a modern economy, the duration of cycle phases and the amplitude of fluctuations can be very different. This depends, first of all, on the cause of the crisis, as well as on the characteristics of the economy in different countries: the degree of government intervention, the nature of economic regulation, the share and level of development of the service sector (non-manufacturing sector), the conditions for the development and use of the scientific and technological revolution.

It is important to distinguish cyclical fluctuations from non-cyclical fluctuations. The economic cycle is characterized by the fact that all indicators change and that the cycle covers all industries (or sectors). Non-cyclical fluctuations are reflected:

• changes in business activity only in some industries that have a seasonal nature (an increase in business activity, for example, in agriculture in the fall during the harvest period and in construction in the spring and summer and a decline in business activity in these industries in the winter);
• in changes in only some economic indicators (for example, a sharp increase in retail sales before the holidays and an increase in business activity in relevant industries).