These are the costs incurred by the state in connection with the performance of its economic, social, political and administrative functions.
In Russia, the expenditure side of the state budget is divided into the following groups:
financing of sectors of the economy (industry, Agriculture, construction, etc.);
financing of social and cultural development and science;
national defense spending;
maintenance of law enforcement agencies, authorities and administration;
expenses for foreign economic activity;
creation of reserve funds;
maintenance costs public debt;
other expenses.
The expenditures of the budgets of the subjects of the federation do not repeat the expenditures of the federal budget.
In countries with social market economies, the first place in budget expenditures is occupied by the costs of financing social and cultural development. In the Russian budget, social expenditures account for about 30% of all expenditures.
An important aspect of the use of budget funds is financial control. In Russia, financial control is exercised by the State Duma and the Federation Council. The highest special body for financial control is the Accounts Chamber, which is accountable to the Federal Assembly. The Accounts Chamber examines the budget and controls its implementation. An important role in the financial control system belongs to the Treasury, which is a unified centralized system (Main Directorate and territorial bodies). The Treasury is subordinate to the Ministry of Finance, which organizes and monitors the execution of the budget and extra-budgetary funds at all levels economic system.
The state budget is a plan for the revenues and expenditures of the state. The best option when expenses are equal to income. For many years, the expenditure side of the state budget of Russia exceeded the revenue side. The amount by which budget expenditures exceed its revenues in a given year is called the budget deficit or budget deficit.
Among the reasons for the budget deficit are the following:
decline in production;
mass production of "empty" money;
numerous social programs;
huge turnover of "shadow" capital, etc.
The deficit can be covered in the following ways: sell valuable government papers; borrow from off-budget funds; receive loans from banks; additional emission of money.
Budget regulation is budgetary policy state. Let's note some goals of budgetary policy:
bringing the obligations of the state in line with its resources - unfunded or partially funded obligations will be canceled;
allocate budget resources to address key socio-economic problems;
provision without budget deficit;
clear delineation of expenditure powers between the budgets of all levels with the provision of appropriate financial resources;
ensuring transparency of budgets of all levels and extra-budgetary funds.
State policy in relation to financial system is one of the most important regulators of economic development. Financial policy- measures of the state to mobilize financial resources, their distribution and use on the basis of the country's financial legislation.
Financial policy consists of interrelated directions of the state's activities: in the field of taxation and regulation of the structure of public expenditures in order to influence the economy (fiscal policy) and in the field of budget regulation (budget policy). Let's dwell on fiscal policy.

(Government budget)

The most important parts of the state budget, state RF

State budget expenditures and revenues, budgetary, Russian budget, in the field of public finance management

The state budget is, the definition

The state budget is the most important financial document of the country. It is a set of financial estimates of all departments, government services, government programs, etc. It defines the needs to be met at the expense of the state treasury, as well as indicates the sources and amounts of expected revenues to the state treasury.

State budget- a document describing the income and expenses of a particular state, as a rule, for the year (from January 1 to December 31).

State budget is the balance income and costs state, the main financial plan of the country, which after its adoption the legislature power (parliament, State Duma, congress, etc.) acquires the force of law and is binding.

The state budget (from the English budget - bag, wallet) is an estimate income and costs state for a certain time, compiled with an indication of the sources of government revenues and directions, channels of spending money

The state budget is the monetary relations arising from the state with legal and physical. persons on the redistribution of national income (partly - and national wealth) in connection with the formation and use of the budget fund intended to finance the national economy, socio-cultural events, defense and public administration needs. Thanks to budget the state is able to concentrate financial resources on decisive areas of economic and social development.

The state budget, an annual estimate (list) of the forthcoming revenues and expenditures of the state. The essence of biology in each country is determined by the economic structure of society, the nature and functions of the state.

The state budget is a centralized fund of monetary resources, which the country's government has to finance the state apparatus, the armed forces, and perform the necessary socio-economic functions. The budget is also a powerful lever state regulation economy, impact on the economic environment, implementation of anti-crisis measures.

The state budget is the main plan of income and expenses of the state for the current year, drawn up in the form of a balance sheet and in force the law.

The essence of the state budget

In any country, the state budget is the leading link in the financial system, the unity of the main financial categories: taxes, government spending, government loans - in their action. Nevertheless, being part of finance, the budget can be distinguished into a separate economic category, reflecting the monetary relations of the state with legal and individuals on the redistribution of national income (partly and national wealth) in connection with the formation and use of the budgetary fund intended for financing national economy, socio-cultural events, defense needs and state management.

It is with the help of budget the state has the opportunity to concentrate financial resources on decisive areas of social and economic development, with the help of the budget, the national income is redistributed between sectors, territories, spheres of public activity. None of the links in finance implements such a multi-type and multi-level reallocation of funds as the budget. At the same time, reflecting the economic processes taking place in the structural links of the economy, the budget gives a clear picture of how financial resources from various business entities come to the state's disposal, shows whether the size of the centralized resources of the state corresponds to the volume of its needs. It is the budget, showing the size of the financial resources necessary for the state and the actually available reserves, that determines the tax country; it is the budget, fixing specific areas of spending, the percentage of costs by industry and territory is a specific expression economic policy state. The budget acts as a tool for regulating and stimulating the economy, investment activity, increasing production efficiency, it is through the budget that social policy is implemented.

Budgeting, discussion, approval, use of funds, consideration of the results budgetary activities- all this constitutes a single budget. All budget process regulated by law, which provides for the procedure for drawing up, considering, approving and executing the budget. In that process an important place is occupied by budgetary regulation, which means the redistribution of monetary and financial resources between different budgets. In accordance with the law, he must in advance, long before the start of the budget year, decide to start work on the preparation of the draft budget, draw up a budget message to parliament. For this, the socio-economic development of the country is drawn up, a free balance of available financial resources is determined and the main directions of budgetary policy are determined. All this makes it possible to calculate the target figures of the draft budget for the next fiscal year.

The approved budget must indicate the amounts upper limit the volume of budget appropriations for operating expenses and for the development budget. The fact is that if there is budget deficit, then, first of all, current expenses should be provided with appropriate income, and the development budget, which is associated with the allocation of funds to increase production volumes, to expand construction, should be limited to the amounts that were originally approved when considering the budget. The approved budget should also determine the redistribution of the unbalanced part of the budget, the surplus or, and these amounts are determined both in absolute terms and as a percentage of projected revenues.

In extraordinary circumstances, the country may impose an emergency budgetary regime for spending funds. The introduction of emergency measures is envisaged by the adoption of a special law. Thus, with the right approach, the budget can objectively be not just a means of state economic regulation, it can really affect the growth of the economy and the social sphere, the acceleration of the pace of scientific and technological progress, the renewal and improvement of the material and technical base of social production. But here it is important to emphasize that the manifestation of the properties inherent in the budget, its use as an instrument of distribution and control is possible only in the process of human activity, which finds its expression in the budgetary mechanism created by the state, which is a concrete expression of the budgetary politicians reflecting the focus of budgetary relations on solving economic and social problems.

To carry out their functions, public authorities at all levels must have an appropriate financial base. For this purpose, an extensive network of budgets is being created in each country, ensuring the accumulation of regional monetary resources to finance their economy, social sphere, improvement of each administrative-territorial unit, the content of the legislative authorities, apparatus management and others. In the process of the formation of income and costs of certain types of the budget, their balancing, certain financial relationships arise, regulated by law. All these elements - the organization and principles of building the budgetary system, the budgetary process, the relationship between numerous types of budgets, respectively, and the totality of budgetary rights represent a budgetary structure.

In different countries of the world, the budgetary structure differs in features depending on the state structure, territorial-administrative division, the level of economic development and others. specific features specific state. The budgetary system, which is a set of budgets of individual administrative-territorial entities of each state based on economic relations and legal norms, occupies the main place in the budgetary structure. Budget systems of different countries differ in their structure, the number of individual types of budgets, because they largely depend on their state structure and its territorial division.

The central place in the system of public finance is the state budget - the state's legal financial plan for the current budget year... The RF BC defines the budget as “a form of formation and spending of the fund Money, intended for financial support of the tasks and functions of the state and local self-government ”.

Use by federal government bodies other forms of education and spending of funds intended for the fulfillment of expenditure obligations Of Russia, is not allowed, except for the cases established by the Budget Code and other federal laws.

Federal budget and set of budgets of other levels of the budgetary system RF(without accounting interbudgetary transfers between these budgets and with the exception of the budgets of state extra-budgetary funds and territorial state extrabudgetary funds) form the consolidated budget of the Russian Federation.

The state budget consists of 2 complementary interrelated parts: revenue and expenditure. The income part shows where the funds come from financing activities of the state, which strata of society deduct more from their income. The structure of income is unstable and depends on the specific economic conditions of the country's development, market conjuncture and carried out economic policy... Any change in the structure of budget revenues reflects changes in economic processes... The expenditure part shows for what purposes the funds accumulated by the state are directed.

It should be noted that the budget, as a fund of funds, never exists in its entirety, since as income is received, they turn to cover costs. It is only a plan for the formation and use of a national fund of funds, that is, a list of state revenues and expenditures, agreed with each other, both in volume and in terms of timing receipt and use.

As a rule, the prevailing forms of government and relationships between members of society determine the characteristics of the financial system. V countries with a socialist economy due to monopoly state ownership of the means of production and the presence of a powerful state apparatus, its main task was to serve the needs of the state authorities... State finances subordinated to themselves both the funds of enterprises and organizations, and even the savings of the population.

Changes in the economy Russian Federation and its political system, which took place in the early 90s, caused major changes in its financial mechanism. The emergence of new forms of ownership, new business entities led to changes in the system cash income and costs; cash flows it became possible to regulate mainly by indirect methods. One of the most important directions of reforming public finances was the division of the unified state budget into three independent parts: the federal budget, the budgets of the subjects of the Federation and local budgets... This was an important step towards the democratization of financial relations. The transition to taxes, as the main way to ensure budget revenues, the abolition of the monopolist on foreign trade and currency relations, state property, etc. All this led to fundamental changes in the budgetary system of Russia and its budgetary structure.

The RF BC gives the following definition: “the budgetary system is based on economic relations and the state structure of Russia, regulated by the norms of law, the totality of the federal budget, budgets of the constituent entities federations, local budgets and state budgets extrabudgetary funds". A budget device is usually understood as organization the budgetary system and the principles of its construction.

The organizational structure of the budgetary system depends entirely on the form of government. The budgetary system of unitary states includes two levels: the state budget and local budgets. States with federated structure along with the federal and local budgets, the budgets of the subjects of the federation are allocated (states in the USA, Brazil, India; lands in the Republic of Germany; republics, territories, regions and autonomous regions In Russian federation). However, in both unitary and federal states, the budgets of lower levels are not included in the budgets of higher levels.

Thus, the budgetary system of the Russian Federation as a federal state consists of three levels:

The first level is the federal budget of the Russian Federation and the budgets of state extra-budgetary funds;

The second level is the budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds;

The third level is local budgets (about 29 thousand city, district, settlement and rural budgets).

The totality of budgets of all levels forms a consolidated budget. The Consolidated Budget is determined by the Budget the code as a set of budgets of all levels in the respective territory.

The consolidated budget of a constituent entity of the Russian Federation consists of the budget of the constituent entity itself and a set of budgets of municipalities located on its territory.

The consolidated budget of the Russian Federation is the federal budget and the consolidated budgets of all subjects of the federation. Consolidated budgets allow you to get a complete picture of all the revenues and costs of the region or the country as a whole, they are not approved and serve for analytical and statistical purposes.

State budget revenues

Budget revenues are funds received free of charge and irrevocably in accordance with the legislation of the Russian Federation at the disposal of the state authorities of the Russian Federation.

As a basis for the systematization of financial transactions, which provides a conceptual basis for solving the widest range of problems when considering public finance, the nature of cash flows entering and leaving government bodies can be used. The main criteria for combining financial operations in homogeneous groups, are the following: receipts or payments; returnable or irrevocable; compensated or gratuitous; current or capital; financial assets or liabilities and their division into acquired for the purpose of conducting state politicians or for liquidity management.

State budget revenues as economic category express economic relations arising in the process of forming the main national fund of funds. The form of manifestation of these relations is different kinds payments organizations and the population to the budget. In terms of its material and material embodiment, budget revenues represent monetary funds that are received free of charge and irrevocably, in accordance with the budget and tax legislation in force in the country, at the disposal of public authorities.

According to the recommendation, funds are credited to income budget at the time of their actual receipt (on a cash basis). In the Russian Federation, the enrollment procedure is determined by Art. 40 Budget code RF, according to which “funds are considered to be credited to income the corresponding budget, the budget of the state extra-budgetary fund from the moment the Russian Central Bank or the credit organization operations on crediting (accounting) funds to the account of the body executing the budget, the budget of the state budget fund ”.

Government funds generated from revenue-generating transactions consist of total revenue and official transfers received. The aggregated scheme of income and official transfers received can be presented as follows.

The sources of the state (central) budget are:

- direct and indirect taxes... In the state revenues, they make up from 80 to 90%. The largest of them are

Deficiency of the budget does not mean yet the "health" of the economy. It is always necessary to pay attention to which one (state, regional, municipal, consolidated) budget is executed with a surplus. Thus, in recent years, the state budget of the Russian Federation has been executed with a surplus, but the consolidated budget of the Russian Federation is deficient due to the negative balance of the overwhelming number of regional and almost all local budgets.

In economic theory, there are several approaches to the problem of the budget deficit.

First concept: the budget should be balanced annually. In general, the desire to fight the budget deficit by all means and not to make government borrowings can lead to negative consequences for the economy of any country. Let's say there is a rise in unemployment. Population income are falling, tax revenues are falling. The government, seeking a deficit-free budget, must either increase the number and increase tax rates, or cut government spending, or use a combination of these measures. The consequence of these measures will be an even greater reduction in aggregate demand and a further decline in the economy. This fiscal policy is focused only on addressing current economic problems, but is not able to solve promising problems. The government of E. Gaidar pursued in 1992 a budgetary and financial policy based on the concept of a sharp reduction in government spending on social policy, thus trying to reduce the budget deficit. However, he was unable to either eliminate the budget deficit, or stop the decline in production.

Second concept: the budget must be balanced throughout economic cycle rather than annually. This means that the government is counter-cyclical while striving to balance the budget. During a recession, the state implements a stimulating fiscal policy: it cuts taxes and increases government spending, i.e. deliberately increases, thereby stimulating the growth of aggregate demand and economic recovery. During the period of recovery, the state pursues a restrictive fiscal policy: it raises taxes and cuts government spending. There is a surplus budget, which is used to cover the budget deficit during the recession. This concept has, however, a significant drawback: it does not take into account the fact that ups and downs can be unequal in depth and duration, and it is extremely difficult to predict them. For example, a long and deep recession can be replaced by a short and insignificant rally. In this case, the budget deficit cannot be eliminated; it will take on a cyclical form.

Concept Three: Balancing the budget is a minor issue. The primary economic task of the state, from the point of view of the supporters of this approach, is to stimulate economic growth... The fulfillment of this task can be accompanied by both a stable positive budget balance and a stable budget deficit (this is the picture that is typical, for example, for the state budget of the United States and a number of European countries).

From foreign practice, the budget in Romania during the Ceausescu era is indicative. This communist leader was very afraid of both the budget deficit and the enslavement of the country through the growth of external debt. This policy has had a depressing effect on economy of the state, constrained the growth of investment, which was one of the reasons for the fall of the Ceausescu regime. In general, creating a surplus of the state's consolidated budget is akin to keeping money in a stocking - the funds will simply be depreciated.

Many economists regard a small budget deficit for the economy as a medicine that stimulates economic development. Its role is akin to that of a consumer loan: you receive benefits now, but you have to work hard to work it off, instead of receiving these benefits in the future for less. In addition, the government, unlike households, can consistently spend more than it earns.

However, overdosing on any medication can be dangerous. The growth of the budget deficit gives rise to inflation, economic instability, growth of external and internal borrowing, which in turn lead to default.

Primary attention should be paid to what purposes the budget deficit is spent on. One can hardly blame the government when it spends money on investments in knowledge-intensive and highly profitable industries, on preparing for hostilities in the event of a military threat. However, all too often state budget funds are spent on solving immediate problems, plundered, and the deficit itself arises due to the inability of the country's leadership to curb the financial claims of ministries, departments and various lobbying groups.

The federal budget surplus created in the early 2000s in the Russian Federation with the country's consolidated budget deficit causes conflicting assessments among economists. Some consider the surplus not to be the merit of the Government, but its mistake: artificial "pumping" of funds into the federal budget by withdrawing them from regional and local budgets practically nullifies the possibility of effective functioning of regional and local authorities. Advocates of the government's position believe that the central government has already learned to draw up a balanced budget, thereby preventing inflation, while local budget deficits are associated with the poor quality of the budget process in the regions.

The state budget - this is the main financial plan of the state for the current year, which is a list of its income and expenses and has the force of law; and it is also all the funds available to the state.

The budget is developed by the Government of the Russian Federation and approved by the Federal Assembly of the Russian Federation.

The budget consists of two parts - revenue and expenditure .

Revenue part of the budget formed by taxes, loans, income from state property and the issue of money.

Expenditure part of the budget - the costs incurred by the state to perform its economic, social and political-administrative functions.

The ratio of revenue and expenditure is the balance of the state budget.

Budget surplus - positive balance. The budget deficit is a negative balance. Balanced budget - the revenue side of the budget is equal to the expenditure side. Deficits lead to public debt. Public debt is divided into internal (debt of the state to citizens, enterprises and organizations of its country) and external (debt to citizens, organizations and governments of other countries).

Domestic debt is divided into market (interest on government bonds) and non-market (debt to budgetary organizations). By maturity, debt is divided into short-term (up to 1 year), medium-term (from 1 to 5 years) and long-term (over 5 years).

Public debt restructuring - change in the timing, amount and interest of debt repayment.

In addition to the budget, the state forms extrabudgetary funds :

Pension Fund,

health insurance fund,

unemployment insurance fund.

These funds are formed from insurance premiums deducted by enterprises.

Budgetary policy - development of a strategy for managing revenue and expenditure items of the state budget.

2.15. World economy

a set of national economies linked by international economic relations.

The structure of the world economy is made up of developed countries ("first echelon"), developing countries ("second echelon", including the Russian Federation), countries with economies in transition ("third echelon"). The first countries account for 14% of the states, the second - 71%, the third - 15%.

International economic relations include:

international division of labor;

international movement of goods and services;

international movement of labor and capital.

International division of labor - specialization of countries in the production of a certain type of goods. It is determined by: natural conditions, the degree of scientific and technological progress, traditions and culture of production.

International trade is determined by exports (export of goods and services), imports (import of goods and services), trade balance (the difference between imports and exports).

States seek to regulate international trade through the implementation of measures:

1) protectionism (protection of domestic producers):

tariff methods - import and export tariffs, customs unions;

non-tariff methods - the establishment of quotas (the rate of sale of any product), the establishment of specific standards, an embargo (a complete ban on trade with a certain country);

2) free trade (from the English free trade - free trade) - the absence of any restrictions in foreign trade;

3) a moderate trade policy - a combination of protectionism and free trade.

The centerpiece of the entire financial system is state budget... With its help, the state carries out the distribution and redistribution of GNP between territories, sectors and spheres of the national economy. On the one hand, the budget is a set of financial resources at the disposal of the economy. subject (state, territory, enterprise, family); on the other hand, the budget is the ratio between income and expenses of the economy. subject for a certain time, usually a year.

State budget- This is a centralized fund of funds, which the government has, which uses it to finance the national economy, the maintenance of the administrative apparatus, the provision of defense, the implementation of social services. politics, development of science, culture, education. The state budget acts as a material means of implementing the functions of the state. In the process of using centralized funds, add up budgetary relations... They represent financial relations that arise between the state, on the one hand, and enterprises, organizations and the population, on the other.

The redistribution of GNP with the help of the budget is carried out by special economies. forms in the form of income and expenses. Budget revenues formed from sources, which are divided into internal and external. TO internal include incomes that are associated with domestic (nat.) goods and services. Income includes components such as:

Taxes (mandatory payments levied to the state or local budget from individuals and legal entities);

Fees (payments for trade rights, parking fees, resort fees, excise taxes, customs duties, etc.).

External sources - This is income in the form of borrowed funds provided by other government or local organizations.

Budget spending carried out by the distribution and use of budgetary funds for the needs of households and for the performance of the functions of the state. Taking into account public needs budget resources can be allocated: for the needs of the national economy; for social and cultural events; for defense; for management.

Expenditures are subdivided into expenditures included in the operating budget and the development budget. V recurrent budget includes expenses for current needs. V development budget includes funds intended for investments related to social and economic. development of territories, with innovative activities, with the implementation of large economies. programs.

Budget system- This is a set of budgets used in the country, based on certain principles and legal norms, taking into account the state. devices.

Consolidated budget- this is a set of budgets of lower territorial levels and the budget of the corresponding national state. or administrative-territorial unit used for comparable calculations and analysis.

Extrabudgetary funds- This is a special form of using funds raised in addition to the budget to finance various tasks solved by the state. By intended purpose extrabudgetary funds divided into economy. and social; by the level of government - into federal, regional and local. State Fund social insurance involves the creation of monetary resources for the payment of benefits for temporary disability, pregnancy and childbirth, for burial, for financing sanatorium services. Pension Fund is an organizational and financial structure that serves retirees. State employment fund it is necessary for material support of persons who have lost their jobs, as well as for their training in other specialties.

The basis of the financial system of the state, its leading link is the state budget (the budget in translation from English means "a bag of money").

The state budget - This is a centralized fund of monetary resources, which the government of the country has at its disposal to finance the state apparatus, the armed forces, the non-production sphere, and governing the country.

In other words, the state budget - This is the financial plan of the state, which is a balance of income and expenditure of the state and consists of two interrelated parts: profitable, containing a list of receipts and consumable, uniting all types of government spending.

Budget revenues are formed from the following sources:

1. Tax revenues, which make up about 85% of the budget revenues, and other payments to the budget from economic agents;

2. Release of state valuable papers in the form of bonded loans, treasury bills, GKO (state short-term obligations) and other interest-bearing securities, i.e. receipts of funds to the budget.

3. Monetary issue (monetization), i.e. release of new paper money... At the same time, excessive emission can trigger inflation, so it must be approached with economic caution;

4. Other income, for example, from the privatization of property objects, from foreign economic activity, favorable conditions on the market for factors of production, loans from banks, funds (IMF), etc.

Budget expenditures are carried out in the following areas:

1. Financing of the public sector (education, healthcare, culture, art, sports, etc.);

2. Financing of sectors of the national economy (industry, agriculture, energy, transport, communications, construction and other sectors);

3. Expenditure on national defense;

4. Law enforcement agencies and state security;

5. Judiciary;

6. Public administration, local self-government;

7. Social policy of the state in the indexation of monetary income, ie. increase in wages, benefits (large families, disabled people, etc.);

8. Servicing public debt, both external and internal;

9. Protection of the natural environment and natural resources;

10. Expenses for foreign economic activity;

11. Other expenses, including the elimination of emergency, unforeseen circumstances (terrorist attacks, hurricanes, floods, earthquakes, etc.).

Thus, the budget is intended to provide financial support for the tasks and functions of the state and local government. Budget organization includes a budget system and a budget process (budgeting). The budgetary system and budgeting form one of the most important elements of the state's economic system.

Budget system Is a set of budgets of all levels and state extra-budgetary funds.

The construction of the budgetary system corresponds to the state structure and the constitution of a given country. In countries with a unitary structure, the budgetary system has two-level structure: state and local budgets. In countries with a federal structure, the budget system has three-level structure , i.e. there is an intermediate link: in the USA - the budgets, states, in Germany - the budgets of the lands, in Russia - the budgets of the subjects of the federation (i.e., the territories, regions, republics that are part of the Russian Federation). Off-budget funds that are not included in the state budget are closely adjacent to the budget.

The set of budgets of all levels of the budgetary system forms consolidated budget of the country .

The budgetary system fulfills following functions :

1. The function of economic regulation, which consists in the use by the state of the budget for the implementation of its economic function;

2. Fiscal (tax), meaning that the formation of the revenue side of the budget is implemented mainly at the expense of tax revenues of economic agents;

3. Distribution function, involves the use of the state budget for the redistribution of funds. This is when funds are withdrawn from some legal and individuals in the form of taxes and sent to others;

4. Social function, provides for the use by the state of budgetary funds for the implementation of national, social programs(projects).

Budgeting process or budgeting - this is the activity of the authorities in the preparation, consideration, approval and execution of budgets of all levels. In most countries of the world, including the Russian Federation, the budgetary process covers the following main stages:

1. Drawing up a draft budget;

2. Consideration and approval of the budget (State Duma, President of the Russian Federation);

3. Execution of the budget;

4. Drawing up a report on the execution of the budget.

Budgeting should be based on adherence following principles:

1. The principle of unity, which means that the state should operate a single budget system at all levels of government and the classification of financial documentation for its preparation;

2. Reality, presupposes a truthful, accurate reflection of government revenues and expenditures;

3. Glasnost, meaning mandatory informing of the population, economic agents about the main sources of income and the direction of spending the budget.