Income and expenses state budget very diverse in sources, target direction and other characteristics. To ensure correct planning and accounting of budget revenues and expenditures throughout the republic, they must be classified. The most important condition ensuring unity budgetary system is its organization in the context of articles budget classification.
The budget classification is understood as a scientifically grounded economic grouping of budget revenues and expenditures according to homogeneous characteristics, as well as sources of coverage budget deficit and public debt, brought into a specific system and coded in the correct order. The nature of the grouping is determined by the socio-economic content of budget revenues and expenditures, the structure of the economy and the management system. A prerequisite for the functioning and efficiency of the entire budgetary process is the regulation of sources of income and the definition of goals for budget expenditures.
The budget classification is based on the grouping of budget indicators, which gives an idea of the socio-economic, departmental and territorial aspect of the formation of income and the direction of funds, their composition and structure. At the same time, an important requirement for budget classification is the clarity and clarity of the grouping.
The significance of the budget classification lies in the fact that the competent use of the grouped data of the budget classification allows one to see the real picture of the movement of budget flows and actively influence the ongoing economic and social processes. At the same time, the grouping of income and expenses will facilitate the verification of the data included in the budget, the comparison of estimates of homogeneous departments, institutions of the budgets of territorial entities for several years, the determination of the dynamics of receipts and the share of various incomes and expenses or the degree of satisfaction of specific needs.
The role of budget classification in the budgetary system of the state lies in the fact that with its help it becomes possible to control the movement of budgetary resources. The budget classification is one of the tools that ensure the implementation of the principle of unity of the budget system.
The main principles of building a budget classification are:
1) the principle of unity, i.e. budget classification serves as the basis for a unified methodological approach to the preparation and execution of all types of budgets;
2) the principle of clarity means the reliability and reliability of the indicators of the forecast of social economic development relevant territories and the feasibility of calculating the income and expenditure of budgets of all types
3) the principle of detailing income and expenses means that income is classified by source of occurrence, and costs are classified by target expense items.
Budgetary classification creates the conditions for combining estimates and budgets into general sets, facilitates their consideration and economic analysis, simplifies the control over the execution of the budget, over the completeness and timeliness of receipts of funds and the use of budget funds for their intended purpose. Budget classification makes it possible to compare income and expenses according to reports on budget execution, which contributes to the observance of financial discipline, economical spending budget funds.
A large role belongs to the budget classification and in the process of budget execution. She is necessary condition ensuring targeted financing of activities provided for in the approved budget and cost estimates of budgetary institutions. Budgetary classification underlies the unity of synthetic and analytical accounting budget revenues and expenditures in financial authorities, budgetary institutions, institutions National Bank Republic of Kazakhstan. It is necessary for drawing up reports on the execution of the state budget. In the context of the independence of the links of the budgetary system, the budgetary classification creates the basis for a unified methodological approach to the preparation and execution of all types of budgets, for the comparability of budgetary indicators.
The need for budget classification is due to the creation of uniform conditions and principles for government and administrative bodies for budget planning, budget process management, budget accounting, budget reporting, budget control, analysis of the preparation and execution of budgets.
The budget classification is focused on solving such problems as:
control over the composition and structure of revenues and expenditures of the budgetary system;
obtaining consolidated budget information comparable across all levels of the budget system;
formation of instruments for legislative control of the budgetary process;
ensuring the implementation of the principle of unity of the budgetary system.
The Unified Budget Classification in force in the Republic of Kazakhstan was developed according to the methodology of the International Monetary Fund on the basis of the requirements international standards... The unified budget classification of the Republic of Kazakhstan is a grouping of revenues and
budget expenditures for functional, departmental and economic characteristics with the assignment of grouping codes to the objects of classification. The unified budget classification is unified and mandatory for the consolidated budget and one of the tools for harmonizing the system of indicators of strategic, medium-term programs and development plans of the republic, republican and local budgets in order to achieve their balance. Relevant normatively substantiated proposals of government bodies on amendments, additions to the Budget Classification are submitted to the Ministry of Economic Development and Trade in the process of budget planning, as well as in the course of budget execution in the event that a regulatory legal act is adopted that presupposes the introduction of amendments and additions to the Budget Classification. Proposals for making changes, additions to the draft Budget Classification, necessary for planning the draft budget for the coming financial year, shall be made before April 15 of the current year.
The draft Budget Classification for the coming financial year until May 15 of this year is sent by the Ministry of Economic Development and Trade to central and local executive bodies for the formation of republican and local budgets. When compiling the Budget Classification, in cases of exclusion of existing classification codes from the corresponding budget levels, the date of their expiration is indicated. The budget classification is approved after the adoption of the Law of the Republic of Kazakhstan on the republican budget for the upcoming planning period until December 10 of the year preceding the planned one.
Each type of budget revenues and expenditures is assigned a classification code, which is a digital code (grouping code), fixed individually for each type of income, each type of budget expenditure and administrators of budget programs, according to their specific characteristics, according to the levels of classifications of receipts, functional and economic classification of expenses.?
The introduction of new types of receipts, the cancellation or change of the existing ones in the Budget Classification is carried out by the Ministry of Economic Development and Trade by the relevant regulatory legal acts. At the same time, the Ministry of Finance of the Republic of Kazakhstan submits to the Ministry of Economic Development and Trade a proposal to introduce new types of budget revenues, to cancel or change existing ones. Relevant proposals from government bodies
on the introduction of new types of budget revenues, on the cancellation or amendment of the existing ones are considered by the Ministry of Economic Development and Trade for compliance with the norms of the current regulatory legal acts. The Ministry of Economic Development and Trade reasonably rejects these proposals, or develops, in accordance with the established procedure, a draft order on amendments and (or) additions to the Budget Classification. Costs government agencies carrying out intelligence and counterintelligence activities, and their institutions, as well as directly ensuring the security of the President of the Republic of Kazakhstan, are classified according to one functional group, one current budget program and one budget development program, reflecting one specificity of the economic classification of expenses.
The current unified budget classification is characterized by the transparency of the movement of financial flows, which allows for strict financial control over the processes of generating income and spending budget funds.
Budget classification Russian Federation is a grouping of revenues, expenditures and sources of financing the budget deficits of the budgetary system of the Russian Federation, used for the preparation and execution of budgets, the preparation of budgetary reporting, ensuring the comparability of indicators of the budgets of the budgetary system of the Russian Federation.
The budget classification is uniform and is used in the preparation, approval and execution of budgets of all levels and the preparation of consolidated budgets of all levels.
The significance of the budget classification in the budgetary system of the state lies in the fact that with its help it becomes possible to observe the movement of budgetary resources. Based on the factor analysis of budget items, an analysis of the corresponding indicators is carried out, which makes it possible to formulate conclusions and proposals on the formation and use of budget funds. In addition, it greatly simplifies the consolidation of estimates and budgets into general summary documents. The existence of a budget classification implies the assignment of a certain code to each institution and organization.
The determination of the principles of appointment, the structure of the codes of the budgetary classification of the Russian Federation, as well as the assignment of codes to the constituent parts of the budgetary classification of the Russian Federation, which, in accordance with this Code, are uniform for the budgets of the budgetary system of the Russian Federation, shall be carried out by the Ministry of Finance of the Russian Federation.
The budgetary classification of the Russian Federation includes:
classification of budget revenues;
classification of budget expenditures;
classification of sources of financing of budget deficits;
classification of operations of public entities (classification of operations of the general government sector).
The classification of budget revenues of the Russian Federation is a grouping of budget revenues of all levels and is based on legislative acts of the Russian Federation that determine the sources of formation of budget revenues at all levels. Income groups are made up of income items that group specific types of income by sources and methods of obtaining them.
The functional classification of expenditures of the budgets of the Russian Federation is a grouping of expenditures of budgets of all levels, reflecting the direction of finance to perform the main functions of the state. The first level of this classification are sections, consisting of subsections that specify the direction of finance for the implementation of state activities in a particular area and form its second level.
The classification of sources of financing the budget deficits of the Russian Federation is a grouping of borrowed funds attracted by the Government of the Russian Federation, executive authorities of the constituent entities of the Russian Federation and local governments to finance the deficits of the respective budgets.
For a certain period of time, which are documented, economically justified, and those that completely transfer the cost to the sale of products during this period.
Main classification
There are such types of expenses:
- costs of raw materials and supplies;
- for the labor of workers;
- capital expenditures (depreciation, rent);
- funds spent on production services (insurance, mail, transport);
- special costs (deductions and taxes).
V modern economy there are several classifications of expenses.
By type are found the following types costs:
- Single element. This includes the cost of raw materials, resources and labor costs.
- Overhead or indirect. These include taxes, depreciation, various deductions, and administrative costs. This view is applied separately to each product in order to calculate the size, which is the cost.
- Special costs. These are the costs of making models, transport and postage costs, as well as bonuses or commissions to employees.
Expenditure
Separate items that characterize some types of costs, and are expense items.
Based on the places of origin, there is such a classification of types of expenses:
- costs of raw materials, materials, staff and premises;
- production costs, separate amounts for wages;
- administrative costs that arise in the management apparatus;
- distribution costs.
Types of expenses based on attitudes towards employment:
- variable costs depending on the volume of production;
- fixed or fixed costs that do not depend on the production rate ( rent, taxes, depreciation).
All types of expenses are necessarily recorded at enterprises and organizations.
Cost items in accordance with production volumes are divided into:
- Proportional costs. They correspond to production volumes. For example, such as funds for the purchase of basic and auxiliary materials.
- Over-proportioned costs arise when workers are overtime or machines are overloaded. In this case, the costs exceed the production volume.
- Sub-proportional costs arise when it comes to bulk purchases or other mass production activities.
Budget expenditures
Budget expenditures are part of the funds that are used to finance the functions, as well as some of the tasks that the state or local governments face. 
Accounting for budget expenditures at all levels is based on a unified methodological basis, standards for budgetary provision, as well as on monetary costs for the provision of public services, which are established exclusively by the government of the Russian Federation.
Classification
Based on the economic content, the types of budget expenditures are capital and current.
Capital expenditures serve to drive innovation and investment. They include:
- costs of investments that are made in existing structures or newly created ones;
- cash, which are provided as a budget loan to legal entities;
- repair costs or costs associated with upgrading or upgrading equipment;
- expenses due to which the property ownership of the Russian Federation or its municipal institutions, as well as other subjects, is expanding;
- other costs that are included in the capital expenditures of Russia in accordance with the official economic classification and current legislation.
The development budget is formed as part of capital expenditures. 
Current budget expenditures are necessary in order to ensure the current functioning of local self-government bodies, state authorities, and any budgetary organizations. They are also intended for state support of entire sectors of the economy. For this, subsidies, subsidies, subventions and so on are created. This category also includes some budget expenditures that are not included in the category of capital.
Reserve fund
The expenditure side of budgets at all levels of the budgetary system of the Russian Federation provides for reserve funds. The size of this fund does not exceed 3% of the approved federal budget expenditures.
Cash from reserve fund spent in unforeseen emergencies. These include: emergency recovery work after natural Disasters, State of emergency at enterprises that entail dire consequences. The procedure for spending this fund is regulated by the regulatory legal acts of the Government of Russia. 
When new types of expenses appear, they are financed at the beginning of the next financial year and only if they are included in the budget. When identifying funding sources, the option of increasing the budget deficit is excluded.
Forms of budget expenditures
The provision of budget funds takes the following forms:
- appropriations for the maintenance of municipal organizations and budgetary institutions;
- funds to pay for services and works that are performed by individuals and legal entities within the framework of municipal contracts;
- transfers for the population, social payments to citizens;
- appropriations for some government powers that are transferred to subsequent levels of government;
- appropriations to compensate for unplanned costs that arise as a result of government decisions;
- loans to foreign countries;
- funds to pay off state or other municipal debts;
- budget loans for legal entities including tax credits, installment payments or other obligations;
- subventions, subsidies for legal entities and individuals;
- budget loans, grants, subventions, subsidies for budgets of other levels or state extrabudgetary funds Russian Federation.
Material costs
Material costs for the purpose of calculating income taxes are divided into:
- those that go to the purchase of raw materials, materials that are used in the manufacture of products or the provision of services;
- those that go to the purchase of materials for packaging goods, pre-sale preparation, as well as testing or quality control;
- those that provide tools, inventory, gadgets, overalls and other means for individual and collective protection, which are provided for by law;
- providing components, as well as products that are being assembled, or semi-finished products that undergo additional processing by the taxpayer;
- those that allow you to purchase fuel, water and energy of all types, which is spent on heating premises, increasing production capacity;
- those that allow you to use outside services: transport, freight, postage, product quality control, etc.;
- related to the preservation of the environment: destruction of hazardous waste, wastewater treatment, payment for permissible emissions.
Material costs are cash that covers production costs.
Direct costs
Costs that are associated with the production of certain goods and are related to their cost are called direct costs. For industrial organizations- these are wages for workers, basic materials, resources, raw materials, semi-finished products, fuel energy, etc.
For Agriculture- these are funds for wages, social insurance, planting material (seedlings, seeds), feed, fertilizer, transport costs. 
V capital construction direct costs include salaries for workers, spending on materials and raw materials, the purchase of parts and building structures. This includes the cost of operating construction machines and other mechanisms.
Scientific organizations have their own direct costs. These include: the purchase of special equipment for scientific and experimental work, salaries, the cost of work that is performed by outside organizations or enterprises.
Organization expenses
Decrease economic benefits in connection with the disposal of assets (in the form of money or other valuable property), as well as the emergence of liabilities that lead to a decrease in capital, are called the expenses of the organization. 
The types of expenses of the enterprise are divided into assets and liabilities. Assets are capable of making a profit in the future, liabilities are not.
The expenses of the organization are not:
- non-current and intangible assets;
- purchase of securities;
- financial investment in other organizations;
- repayment of loans;
- advance payment, a deposit for work or services.
In the theory of domestic accounting and analysis, a classification of costs on various grounds has been developed.
table 2
Cost classification
|
Division of costs |
|
|
By elements |
material costs; labor costs; deductions for social needs; depreciation; other expenses |
|
By Articles |
Estimated cost items vary by industry |
|
By method of attribution to cost price |
|
|
In relation to the level of business activity |
variables; permanent |
|
Under the method of recognition as an expense |
product costs; costs for the period |
|
Towards technological process |
basic; waybills |
|
By composition |
single element; complex |
|
According to the expediency of spending |
productive; unproductive |
|
Plan coverage where possible |
planned; not planned |
|
By the frequency of occurrence |
|
|
In relation to finished products |
work in progress costs; costs for finished products |
|
Where possible regulation |
adjustable; unregulated |
Element classification .
Under economic cost element it is customary to understand the economically homogeneous type of resources used for the production and sale of products (works, services). For example, the element "labor costs" reflects the use of labor resources regardless of what functions (production, organization, service or management) employees perform.
The grouping of costs by economic elements allows you to define and analyze the cost structure of an organization. To carry out this kind of analysis, it is necessary to calculate the proportion of this or that element in the total cost. Depending on this ratio, the sectors of the economy can be divided into material-intensive, labor-intensive, capital-intensive.
The classification of costs by economic elements is defined by the normative. It is given in clause 8 of PBU 10/99 "Organization's expenses".
Currently, organizations do not keep records of costs by economic elements, but reporting forms for them are drawn up. In form No. 5 "Appendix to balance sheet"There is a table" Costs made by the organization. " Chart of accounts accounting and Instructions for its use suggest the possibility of maintaining a systematic accounting of costs by economic elements using accounts 30-39 of the Chart of Accounts. The selected cost accounting option should be fixed in the accounting policy of the organization.
Classification by article .
Cost item - a set of costs, reflecting their uniform target use. The set of cost items used is usually called the nomenclature of cost items. According to PBU 10/99 "Organization expenses" for management purposes, the accounting of expenses is organized by cost item. The list of cost items is established by the organization independently.
As an example, we can give a typical nomenclature of costs:
Raw materials and supplies;
Returnable waste (deducted);
Purchased products, semi-finished products and services of a production nature of third-party organizations;
Fuel and energy for technological purposes;
Wages of production workers;
Social security and security contributions;
Expenses for preparation and development of production;
Equipment maintenance and operating costs;
General production costs;
Loss from marriage;
Other production costs;
General running costs;
Selling expenses.
Classification by method of attribution to cost.
Direct - costs that, at the time of their occurrence, can be directly attributed to the cost object (costing object) on the basis of primary documents. These are the costs of materials, wages of the main production workers, etc.
Indirect - costs that cannot be attributed at the time of incurred directly to the cost object. To classify them, an additional calculation is required for the distribution in proportion to one or another selected base. These include general production (general shop) costs - the cost of organizing, maintaining and managing production (shop); general business - for the management of the organization.
Classification in relation to the level of business activity .
In the west, there is a well-developed classification of costs into variables and fixed. It has found wide practical application in the organization of management accounting at an enterprise operating in a market environment. This classification serves as an information base for analysis when justifying a variety of management decisions.
Variable costs are not uniform. Depending on the ratio of changes in costs and volume of production, they can be divided into:
proportional;
progressive;
degressive;
regressive.
Proportional are the costs, the relative change of which is equal to the relative change in the volume of output or the load of production facilities. An example is wage production workers with a direct piece-rate system of remuneration.
Progressive - costs that rise faster than production increases. An example is the remuneration of production workers under a progressive piece-rate system.
Degressive – costs that grow more slowly than the volume of production. For example, costs for process energy and fuel, lubricants and cleaning materials.
Regressive - costs that are declining in absolute terms despite an increase in production. An example is depreciation.
The dynamics of the considered types of costs can be depicted on the graph.
progressive
proportional
degressive
regressive
ExpensesVolume of production
Rice. 1. Types of variable costs
To describe the behavior of costs, you can use the so-called cost responsiveness (To r.z.), introduced by the German scientist K. Mellerovich.
The proportional cost response factor is 1.
The progressive cost response rate is greater than 1.
The response coefficient of degressive costs is equal to a value from 0 to 1.
The regressive cost response factor is a value between 1 and 0.
The fixed cost response rate is 0.
Permanent are the costs, the value of which does not change relatively with the change in the volume of production. For example, the costs of protecting the organization, remuneration of management personnel, etc.
Fixed costs are usually divided into useful and useless (idle).
Waste costs arise if the production factor is not fully utilized. The occurrence of such costs can be associated with the indivisibility of the production factor, for example, means of labor or labor.
This classification is especially relevant when analyzing the use of expensive equipment, since if it is not fully used, depreciation is still charged and interest is paid on the invested capital, which in this case is only partially useful.
If we designate the optimal use of equipment power (i.e., production output in natural units) as M opt. , and the planned level of equipment utilization as M plan. , then the useful and useless costs can be calculated as follows:
B 
Waste costs are direct losses to the organization.
This classification is of particular practical importance in cases where a certain divisibility of the factors that determine the constancy of costs is given. For example, if the equipment consists of four identical units, then with a decrease in production by more than 25%, one of the units can be sold or leased, which will get rid of useless costs.
The value of most fixed costs is not absolutely fixed, that is, we are dealing with semi-permanent costs that are constant for a specific volume of production, but at some critical moment increase by a certain amount. Such costs are classified as fixed or variable, depending on the frequency of the step increments and the magnitude of the increments at each point.
In practice, the pure classification of costs for fixed and variable costs considered by us is distorted due to the effect on their size of a set of factors, and not just the volume of production. Therefore, one of the widespread tolerances in cost classification is linearity.
The linear approximation method allows you to turn costs with non-linear dependencies into costs with linear dependencies. This method uses the concept of relevant levels.
Relevant level - the level of expected business activity, within which many non-linear costs can be estimated as linear. The relevant cost level is shown in the graph.
Z
Relevant level Linear approximation Valid cost behavior
Volume of production
Rice. 2. Linear approximation and relevant level
Costs of the same kind can behave differently. There are costs that are variable in some situations and constant in others. The classification of costs into variables and fixed costs cannot be determined once and for all, even for a specific organization. It should be revised (updated) taking into account the changing conditions of activity. Strict, legislatively enshrined classification in in this case not possible.
You can solve the problem of cost classification by switching to using the classification of costs per product and by period. In this case, the main feature of the classification of costs into fixed and variable costs is only partially present, and some mixing of features taking place here is justified by the convenience of practical application.
When analyzing mixed costs, it is necessary to apply methods that make it possible to isolate fixed and variable parts from them. The simplest are:
method of analyzing accounts;
graphic method;
the method of "high and low points".
For a more thorough study of the behavior of costs, statistical and economic-mathematical methods are used (the method of least squares, the method of correlation, etc.). Consequently, the problem of dividing the costs into constant and variable is amenable to solution, and modern computer technology and software products are able to provide not only an operative and labor-intensive solution, but also a good quality of information for making management decisions.
Classification using the method of recognition as an expense .
Depending on the method of recognizing costs in the income statement, they can be divided into two types:
product costs;
costs for the period.
Product costs directly related to the implementation of the organization's production activities, they are due to the production technology and the process of selling products.
Costs for the period associated with the length of the reporting period, and not with the release and sale of products. For example, the costs associated with running an enterprise.
Classification of costs in relation to the technological process or by economic role in the production process .
The main - costs that are directly related to the production process of products.
Overhead - costs of management and maintenance of the production process (general production and general business costs).
This classification is important in accounting for costs in the production of products for individual projects, in the implementation of which a large number of different types of costs are attributed to overhead costs. In order to use them effectively in calculating the cost, it is necessary to apply the norms of overhead costs.
Classification according to the expediency of spending.
Productive expenses - the costs, as a result of which the income is received, relate directly to the production of products of the established quality in the presence of rational technology and organization of production.
Overhead costs - costs resulting in no income. Such costs are not planned, they are caused by shortcomings in the technology and organization of production, the system of preservation of property and organization of production; external circumstances.
Classification by frequency of occurrence .
Running costs carried out daily or with a certain frequency, at least once a month.
One-off - expenses that are incurred less frequently than once a month. These are the costs of preparing and mastering the release of new products; costs associated with the launch of new production facilities; renovation work etc.
Classification according to the possibility of regulation .
Adjustable - costs registered by the centers of responsibility, the value of which depends on the degree of their regulation by the leadership of the centers of responsibility. In general, in the organization, all costs are regulated, but not all costs can be regulated at the lower levels of management. For example, a lower-level manager cannot regulate the purchase of inventories, or hire people. This is the responsibility of the administration of the organization.
Unregulated are costs that are not affected by the manager of a given responsibility center.
The division of costs into regulated and non-regulated is provided for in plans (budgets, estimates) and in reports on the implementation of plans by responsibility centers. This classification allows you to determine the area of responsibility of each manager and evaluate his work in terms of controlling the costs of the department.
Classification as far as possible coverage of the plan.
Planned - calculated for a certain volume of production in accordance with standards, limits and estimates, included in the planned cost of production.
Not planned - are not included in the plan, are reflected only in the actual cost of production.
LECTURE 3. RESPONSIBILITY CENTERS AND THEIR TYPES
Responsibility centers concept.
Characteristics of cost centers.
Characteristics of income centers.
Profit centers characteristics.
Characteristics of investment centers.
RF budget classification
By its nature, the classification of general government transactions is a grouping of transactions carried out in the general government based on their economic content.
CLASSIFICATION OF BUDGET INCOME
The structure of the 20-digit code for the classification of budget revenues is presented in the form of four component parts:
1) the chief administrator of budget revenues (categories 1–3);
2) type of income (group, subgroup, item, sub-item, element) (categories 4–13);
3) a subspecies of income (categories 14-17);
4) classification of operations of the general government sector related to budget revenues (categories 18–20).
The structure of the code for the classification of budget revenues
The code of the main administrator of budget revenues consists of three digits. It is established by the law (decision) on the budget. Assigning to the chief administrators of budget revenues codes for the classification of budget revenues is carried out on the basis of their powers to submit requirements for the transfer of property to a public legal entity, including monetary funds.
The code of the type of income (categories 4-13 of the budget income classification code) consists of 10 characters and includes:
Group (rank 4);
Subgroup (categories 5, 6);
· Article (categories 7, 8);
· Subentry (categories 9–11);
· Element (categories 12, 13).
The income group has the following meanings:
100 - tax and non-tax revenues;
· 200 - gratuitous receipts.
Further detailing of the code for the type of budget revenues is carried out in the context of the relevant items and sub-items in accordance with the Instructions on the procedure for applying the budget classification of the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 01, 2013 No. 65n.
In categories 18–20 of the code for the classification of budget revenues, KOSGU is used (Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation). This grouping reflects the economic content of operations carried out in the general government sector.
CLASSIFICATION OF BUDGET EXPENDITURES
The grouping of budget expenditures of all levels is a classification of budget expenditures.
| Chief Administrator of Budgetary Funds | Chapter | Subsection | Target article | Type of expenses | Article (sub-article) of the classification of operations of the general government sector related to budget expenditures | ||||||||||||||
| program | subroutine | ||||||||||||||||||
Chief stewards (grades 1-3). The list is given in Appendix 9 to Order No. 65n and is established by law (decision) on the corresponding budget as part of the departmental structure of expenditures.
Sections, subsections (categories 4–7). There are 14 sections in the classification of budget expenditures.
They reflect the direction of financial resources to perform the basic functions of the state. The sections are detailed by subsections that specify the direction of budgetary funds for the performance of state functions within the sections.
An example of the classification of budget expenditures
Section 0700 Education has nine subsections. It accumulates expenditures on a purposeful process of education and training in the interests of a person, society, and the state. So, subsection 0702 "General education" reflects the cost of primary general, basic general, secondary (complete) general education. It also shows the costs of maintaining and supporting the educational process of general education institutions, institutions for out-of-school work with children, special (correctional) institutions.
Targeted articles. The target item code consists of seven characters - digits 8-14 of the 20-character code for classifying budget expenditures. In this case, digits 11 and 12 are intended for coding the program of the corresponding target article, and digits 13 and 14 - for coding a subroutine that specifies (if necessary) the direction of spending funds within the program.
Types of expenses (categories 15-17) detail the directions of financing budget expenditures both by target items and by target programs of budget expenditures.
Lists of types of expenses used in the budgets of the constituent entities of the Russian Federation and local budgets, forms the corresponding financial authority based on expenditure obligations to be fulfilled at the expense of the corresponding budgets.
In digits 18-20 of the budget expenditure classification code articles and sub-articles of KOSGU are given (contained in Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation).
CLASSIFICATION OF FINANCING SOURCES OF BUDGET DEFICITS
The code for the classification of sources of financing budget deficits consists of 20 digits and includes:
· Code of the chief administrator of sources of financing budget deficits (categories 1–3);
· Codes of a group, subgroup, article and type of source of financing of budget deficits (categories 4–17);
· A code for the classification of general government operations related to sources of financing budget deficits (categories 18–20).
The list of chief administrators of sources of financing budget deficits is approved by the law (decision) on the corresponding budget.
Groups and subgroups (grades 4-7) are established by the budgetary legislation of the Russian Federation and are uniform for the budgets of the budgetary system of the Russian Federation, for example 4600 - “Other loans (budget loans)”.
Further detailing of the subgroups of the code of sources of financing budget deficits is carried out by means of articles and types of sources of financing budget deficits.
At the same time, the six-digit code of the article of sources of financing budget deficits is detailed by a sub-article and an element - respectively, categories 3, 4 and 5, 6 of its six-digit code.
The element of sources of financing budget deficits reflects the belonging of the source of financing the budget deficit to the corresponding budget of the budget system, for example, the code of the element of sources of financing budget deficits:
01 - federal budget;
· 10 - the budget of the settlement.