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University budget management. Effective management of personal and family budget. Budgeting as a modern management tool

Management - it is a purposeful process of the influence of the subject on the object in order to achieve a certain result.

Management as a whole is a rather complex, multidimensional concept, it can be considered from the point of view of various approaches:

- instrumental approach- as a set of certain tools, methods, methods of influence;

- process approach- as a specific process;

- functional approach– as a set of functions;

- systems approach - as systems.

From a more complete point of view, systemic, approach - budget management - this is a complex process that represents the unity of managed and managing systems, where the set of financial and budgetary institutions (institutions) acts as the managing system (subjects of budget management), and the set of budgetary relations acts as the managed system (objects of budget management).

IN Lately all over the world, including in Russia, in the field of state and municipal administration, management tools that were borrowed from the business sector are increasingly used ( strategic planning, focus on the final result, performance efficiency), in connection with this, a new concept appeared - b budget management

budget management is a process of managing the formation, distribution and use of state (municipal) resources and optimization cash flows in the interests of the socio-economic development of individual territories and the country as a whole, as well as improving the quality of life of the population of these territories.

From the standpoint of a systematic approach, the content of the budget management system can be structured as follows (Figure 4.2.)

I. Subjects of budget management: financial and budgetary institutions (budget management apparatus)

The budget management apparatus consists of a large number of bodies and services that can be classified according to two main features - the degree of specialization in the management of budgetary relations and the level of management.

a) General management of budgets is carried out by:

Federal level(in regions and municipalities, budget management is built by analogy with the federal level)

President of the Russian Federation(he delivers the Budget Message, which reflects the main directions of the budget policy (for example, in 2010, the President delivered the Budget Message on June 29, where he outlined the increase in the efficiency of budget spending as the main priority, and on June 30 the Government approved the Program to improve the efficiency of budget spending), signs federal laws, including “On the federal budget” (has the right of “last” signature), issues decrees and orders on financial matters.

Main Control Directorate of the President of the Russian Federation(under the Administration of the President of the Russian Federation) - endowed with a number of control powers in the public sector, but cannot independently apply sanctions, can only send orders to eliminate financial violations in the public sector.

Federal Assembly of the Russian Federation(considers and approves draft federal laws in the financial and budgetary sphere; the draft federal budget, as well as a report on its implementation).

Government of the Russian Federation(regulates and controls the financial activities of ministries and departments, interbudgetary relations, informs the State Duma on the progress of the implementation of the federal budget, and also provides the Accounts Chamber with the information necessary for the exercise of its control powers).

Thus, the President of the Russian Federation determines the strategy for managing budgetary relations, has the right of final signature on financial laws, and has control powers. Executive authorities organize work on budget management, carry out planning, operational budget management and current control. Bodies of representative power exercise parliamentary oversight when considering and approving budgets and following the results of its execution. Such a division of functions in the sphere of budgetary authority management is projected onto the regional and municipal levels.

b) Specialized bodies for managing budgetary relations

Ministry of Finance of the Russian Federation - federal executive body that ensures the implementation of a unified financial policy in the state, management of the organization of finance in the country.

The main powers of the Ministry of Finance in the public sector(Article 165 of the RF BC) :

Develops the main directions of the budget and tax policy of the Russian Federation;

Develops a forecast of the main parameters of the budget system of the Russian Federation, incl. consolidated budget forecast;

Draws up a draft federal budget and provides methodological guidance in the field of drawing up and executing budgets of the budget system of the Russian Federation;

Responsible for the execution of the federal budget;

Maintains a register of expenditure obligations of the Russian Federation;

Distributes interbudgetary transfers between regions;

Develops budget reporting forms for all budgets, etc.

Federal Treasury - ensures the implementation of the federal budget, cash services for the execution of budgets of the budget system of the Russian Federation, carries out preliminary and current control over the conduct of operations with federal budget funds (Article 166.1. RF BC).

From January 1, 2008 (in connection with the adoption new edition RF BC) Article 215 was excluded from the RF BC, which was called “Treasury Budget Execution” (as an alternative to “bank budget execution” before the adoption of the RF BC in 2000), instead of it a new article appeared - “Fundamentals of Budget Execution”, where for approved by the Federal Treasury "cash service budget execution", i.e. conducting and accounting for operations on cash receipts to the budget and cash payments from the budget (Article 6 of the RF BC), thus execution of budgets now provided executive authorities(Government of the Russian Federation, Administration of the Smolensk region or the city of Smolensk) and organized by the relevant financial authorities(Ministry of Finance of the Russian Federation, Departments of Finance of the Smolensk Region and the city of Smolensk), and the Treasury acts not as a manager, but as a cashier, treasurer (however, the Federal Treasury can also transfer the functions of a cashier to executive authorities, provided that cash execution will be ensured at the expense of the region's own revenues).

federal Service financial and budgetary oversight(since 2005) – performs the functions of control and supervision in the financial and budgetary sphere, as well as the functions of a currency control body (Article 166.2 of the RF BC). Its main specialization in the field of budget control is control over the use of federal budget funds, funds of the VBF, over compliance with the requirements of the budget legislation of the Russian Federation by recipients of financial assistance from the federal budget, guarantees of the Government of the Russian Federation, budget loans.

The Federal Tax Service- a federal executive body that exercises the functions of monitoring the correctness of the calculation, completeness and timeliness of making tax payments to the relevant budget (since it is taxes that play the predominant role in budget revenues, its role is very large).

Federal Customs Service– control over the receipt of customs legislation and the receipt of customs payments to the budget.

Accounts Chamber of the Russian Federation(Article 167.1 of the RF BC) is a permanent independent financial control body reporting to the Federal Assembly of the Russian Federation.

The main specialization in the field of budget control is control over the execution of the federal budget and the use of federal property, as well as financial expertise of draft federal laws that provide for the implementation of budget expenditures or affect the formation and execution of the federal budget and extra-budgetary funds.

II. Budget management object: budget relations.

III. Management levels: federal, regional, municipal, which since January 1, 2006 has been divided into 2 sublevels (in accordance with Federal Law No. 131 of 2003):

- level municipal districts and city districts;

The level of urban and rural settlements.

IV. Functional elements of budget management: budget planning and forecasting, operational budget management, budget control

Function- this is an external reflection of the internal essence of a phenomenon, i.e. it is the work that one category or another performs.

Forecasting in general - this is the intelligence of the future

1. Budget forecasting- a reasonable judgment about the prospects for the possible state of the budget in the future, alternatives for its development and timing of implementation.

The purpose of forecasting is substantiation of the prerequisites for making certain managerial decisions on the formation and execution of the budget in the medium or long term.

Budget forecasting methods:

2 groups of methods

1. Formalized Methods(mathematical)

Modeling;

Correlation-regression analysis.

2. Methods of expert assessments(more subjective, less formalized)

Problems in the field of budget forecasting. The criteria for the quality of forecasts are their accuracy and the presence of a systematic deviation. In foreign practice, 2 types of forecasting are common - conservative and optimistic. With conservative forecasting, revenues are purposefully underestimated, with optimistic forecasting, state taxes are unjustifiably increased. expenses, which leads to the regular excess of the legally established volumes of the budget deficit. Overestimation of expected income is fraught with a budget deficit and an increase in debt, or a reduction in spending. Underestimation of budget revenues (more often observed in our practice at all levels) leads to incomplete use of resources, which reduces the efficiency of spending.

The forecast of budget indicators should be considered in the general context of macroeconomic indicators (GDP, inflation rate, etc.). The link between macroeconomic indicators and the forecast of tax receipts is most obvious. An inflation forecast error distorts the real cost of statutory funding. In our country, this error is observed from year to year - for example, for 2010 inflation was forecasted at 6.5%, but in reality it was 8.8%. Inaccurate exchange rate prediction can change the cost of servicing external debt. However, first of all, competent forecasts of world prices for raw materials are important.

To assess the accuracy and quality of budget forecasting in the Russian Federation, the following figures can be given - in the conditions of the crisis of 2008-2009. on GDP growth, the Ministry of Economic Development made a mistake in estimates by 14.6%, although a deviation of 0.5% is considered acceptable, and on investments - by 30.8% at a rate of 1.5%. In 2009, against the backdrop of unbridled growth in oil prices, plans for income and expenses were raised. At first, the cost of a barrel was set at $52, and revenues at 7.4 trillion rubles. But oil prices jumped to $129 per barrel, the Ministry of Finance was "persuaded" to include in the budget the cost of a barrel above $90. Incomes were raised to 10.9 trillion rubles and increased liabilities were taken against them, including pension and social ones. Then both oil and revenues fell, but it was impossible to get out of the circle of obligations taken, saved by the Reserve Fund. Thus, due to Low quality forecasts raise serious risks for fiscal policy and, ultimately, for overall macroeconomic stability.

2. Budget planning - activities for the development and drafting of the budget, which ensures the balance and proportionality of budget revenues and expenditures, coordination and coordination of the activities of the participants in the budget process in the course of budget execution.

Budget planning is one of the stages of the budget process.

The preparation of draft budgets is preceded by:

1. development of forecasts for the socio-economic development of the Russian Federation, subjects of the Russian Federation, municipalities and sectors of the economy;

2. preparation of consolidated financial balances.

Budget planning methods:

Economic analysis;

Extrapolations;

Normative;

Balance;

index;

Program target

Problems in the field of budget planning . Currently, in Russia, the drafting of budgets is based on the “from what has been achieved” method, when the budget items of the upcoming financial year are determined by indexing the budget indicators of the previous financial year. One of the indices is the CPI, which determines the rate of inflation. The situation in the field of budget planning should be changed by a programmatic approach to budgeting, based not on indexing the expenses of the previous period, but on achieving specific goals and objectives, for which a certain amount of funding is planned, laid down in the form of a program with a specific indication of activities, deadlines, performers.

3. Operational financial management in the public sector - a set of measures developed on the basis of an operational analysis of the current financial situation, pursuing the goal of obtaining the maximum effect at the minimum cost.

Operational management of budgets is carried out by executive authorities at all levels - the Ministry of Finance of the Russian Federation, the Department of Finance of the Smolensk Region, the financial department of the Administration of Smolensk and other bodies and services that manage budgetary relations on a daily basis.

4. Budget control- allows you to compare the actual results of the use of budgetary resources with planned indicators, identify reserves for their growth, outline ways to improve them effective use.

Classification of financial control on various grounds, the main of which include:

1.Types of control- administrative, parliamentary, departmental, on-farm, independent, public, etc.

2.Forms of control- revision, verification, supervision, etc.

3. By time- preliminary, current, subsequent

4. organs, exercising control, incl. and in the public sector

As part of the budget process, many of its participants are endowed with control functions. Thus, certain control powers are exercised by the President of the Russian Federation, executive and legislative authorities, specialized control bodies (Federal Treasury, Accounts Chamber of the Russian Federation, FSFBN, etc.), as well as managers of budgetary funds (ministries, departments).

It is important to take into account that there are close links between all the functional elements of the budget management system, including feedback. In this case, a special role belongs to control, which should be carried out at all stages of budget management.

V. Methods of influence: taxation, budget financing, budget lending, etc.

VI. Influence tools: fines and penalties for violations of budget and tax legislation, tax incentives, subsidies, subventions, subsidies, budget loans, etc.

VII. Legal support: The Constitution of the Russian Federation, the Budget and Tax Codes, laws regulating budgetary legal relations.

VIII. Regulatory support: instructions, norms, norms, tariffs.

IX. Information Support: budget and financial reporting, statistical data, Internet resources, etc.

X. Purpose and result of the impact: improving the quality of life of the population.

Budget management.

Control- it is a set of techniques and methods of purposeful influence on an object in order to achieve a certain result.

This type of financial management, such as budget management, has a specific object and subjects of management. The object of management is the relationship for the formation and spending of the fund Money necessary to ensure the tasks and functions of the state and local government.

Authorized bodies of state power and local self-government, primarily financial bodies, act as subjects of management.

The bodies that carry out economic regulation and the development of macroeconomic policy are instructed to prepare forecasts of socio-economic development, the data of which should form the basis of the indicators of draft budgets. In addition, when drafting budgets, it is advisable to have forecast information on promising areas of tax policy, priorities for spending budget funds, and a plan for the development of the public sector of the economy. All this information should be used by the authorized government body in the preparation of the budget. Planned volumes of collection of income in the form of taxes and fees, other non-tax income, directions of spending funds are subject to approval. The more detailed the plan is, the more clearly and formally you can organize its implementation, the easier it will be to control.

Operational budget management consists in organizing the process of accumulating monetary resources and distributing them in accordance with previously outlined directions. Of great importance is the speed of two processes: the passage of funds and the processing of information about these funds for making operational management decisions.

These processes are not carried out simultaneously, but sequentially. Schematically, their change can be represented as follows: first, funds from economic entities are credited to the budget accounts (for example, in payment of taxes), and then information about them is collected, analyzed, directions for their transfer are promptly determined, then the funds are transferred, after which information about this transfer and bringing the funds to the relevant business entities and citizens.

The process of operational budget management in terms of revenue accumulation cannot be limited only to recording information about their receipt, excluding the issue of collecting budget revenues. As part of the budget revenues can be divided into two groups: tax and non-tax revenues. The former, which often make up the largest share in the total amount of budget revenues, are associated with the implementation of the functions of the state as a public entity, introducing obligatory payments in certain cases and amounts necessary to financially support the performance of its functions. The latter are largely related to the implementation of economic activities by the state or its institutions: property management (including its privatization and leasing), the implementation of entrepreneurial activities by budgetary institutions, the receipt of dividends, interest, etc. When organizing operational management, it should be remembered that the methods of generating income for each of the two considered groups, including methods of influencing non-payers, differ, their implementation is carried out by different authorities.

The actual implementation of budget expenditures must fully comply with the planned volumes and directions. This is one of the guarantees
regulating state influence on the economy, carried out through the redistribution of the gross product and national income strictly in the prescribed volumes and directions, achieving the goals of socio-economic development of a particular territory, relative transparency and predictability of the result.

The tasks of the authorities include such an organization of spending budgetary funds that would exclude their misuse by budget recipients. Prevention of misuse can be achieved by limiting the powers of budget recipients in managing budget funds. The introduction of restrictions on the disposal of funds in bank accounts often conflicts with the provisions of civil law. At the same time, the desired effect can be achieved when organizing the treasury execution of the budget through such measures as preventing the placement of budget funds on the accounts of budget recipients in commercial banks; opening and maintaining accounts of budget makers in the treasury bodies; transfer of funds from such accounts only if the budget recipient fulfills predetermined conditions (for example, conclusion of contracts, acceptance of work performed, etc.).

Verification of the fulfillment by the budget recipient of these conditions is a separate form of implementation of the third stage of budget management, namely, preliminary and current control over the expenditure of budget funds. This control is largely aimed at preventing the misuse of funds and thus preventing violations in the public sector. In the follow-up control carried out after the actual spending of budget funds, considerable attention is paid to both their misuse and verification of the effectiveness of spending funds. The results of the control measures taken, related to the detection of committed budget violations, are the basis for the application of liability measures -
recovery of the amount of misuse, penalties, fines, etc. Often, the functions of carrying out various types of control are divided between different public authorities.

Recently, the term budget management (or budgeting) of an enterprise has become popular in management and accounting literature, which is positioned as a modern tool for managing the financial activities of companies, works only at the most advanced enterprises and provides them with market leadership. What does budget management mean, what elements does the budgeting system include, and why does an enterprise need this? More on that later in the article...

Budgeting as a modern management tool

From the course of economic theory, it is well known that any resources, including financial ones, are limited. Therefore, the enterprise must manage these limited resources most effectively in order to preserve and increase these resources. For these purposes, the enterprise must have a plan (or budget). But the plan itself does not provide an effective allocation of resources, therefore, along with the planning system, a system of accounting, control, analysis of planned and actual data should be established in order to track deviations from the plan in a timely manner and take corrective actions.

Under budget management (budgeting) understood modern technology financial planning, which allows planning, control and analysis of the enterprise's activities through the system of approved budgets.

The main tool here is the budget. Under budget is understood as a financial plan in which all indicators refer either to the revenue or to the expenditure part. All financial activities of the enterprise are reflected in the budget.
Budgets vary by planning period. Distinguish:

short-term (planning period up to a year);
medium-term (term - from one to three years);
long-term budgets (drawn up for a period of three to five years).

In the West, budgeting technology has long ceased to be considered trendy, moving into the category of regular management tools. At the moment, in Russia, almost no successful enterprise operates without a budget in one form or another. For many foreign companies, the presence of a financial budget at the enterprise as an integral part of the business plan is a mandatory criterion for investing in development this enterprise. The budgeting process itself is seen as helping to reduce the uncertainty and risk inherent in the market.

The budget determines the main strategic directions of activity for the enterprise; development scenarios are modeled in it. It is common practice for enterprises to develop several development scenarios (the standard is to use at least 3: optimistic, pessimistic and most realistic), allowing management to be ready to make flexible decisions depending on the scenario.

The developed budgets should be coordinated with each other, if the budget is planned to make a profit, then methods of disposing of the profits are planned, if losses are planned, it is necessary to ensure the replenishment of working capital to cover current costs, at the expense of borrowed money such as getting a loan from a bank.

Budgeting for small, medium and large enterprises

It may seem that budgeting is necessary only for large and medium-sized enterprises. Indeed, why would a small business need a budget?

The fact is that the problems of small enterprises are mainly associated with a lack of resources, the margin of financial strength of such enterprises is very small, therefore, without proper control over the cost of products, the availability of funds (by controlling accounts receivable and payable), these enterprises can easily be unprofitable, and lead to the bankruptcy of their owners. Initially, these issues are decided by the head of the enterprise, but human capabilities are limited, so the head is not able to calculate dozens of scenarios for the development of events, keep records and analyze the deviations received, he simply does not have enough time for this. But you still need to organize the actual production process ...

This leads enterprises to the need to use tools for management control and analysis of financial activities, one of which is the establishment of a management accounting and budgeting system at the enterprise.

Large enterprises undoubtedly have more resources for budget management, both human and financial, but they also have a lot of problems: the presence of heterogeneous businesses, a large range of products, an extensive cost structure, a complex organizational structure. The management faces various management issues, the solution of which determines whether the enterprise will ultimately receive a profit or not, for example, what is more profitable - to produce it ourselves, or to use the services of third-party manufacturers, what types of products are more profitable to produce, etc.

All these problems lead to the fact that without effective management, resources will be spent irrationally, without proper information, optimal management decisions will not be made.

As practice shows, a budgeting system is necessary for any enterprise, regardless of their scale (both for large and medium-sized, and for small enterprises). The main difference lies in the form and composition of budgets (the number of necessary budgets for small enterprises is usually small, which cannot be said about large ones), as well as the complexity of filling and coordinating them.

The main elements of the budget management system

Many methods have been developed for setting up budget management in an enterprise. At the same time, each technique contains some basic elements on which the structure of the system is based. The main elements of the budget management system are:

Financial structure;
budget structure;
Budget management regulations.

Under financial structure refers to the organization of financial responsibility centers, which determines their hierarchy and is intended to manage the value of the enterprise's activities. Wherein, Financial Responsibility Center (CFD) are structural divisions of the enterprise, distinguished not by their functional features, but by the ability to generate income for the enterprise or accumulate costs and be able to be responsible for the amount of costs incurred or income acquired. So, for example, in each commercial organization divisions responsible for the amount of costs incurred (usually production divisions), called cost centers, as well as divisions responsible for generating income, or CFD income centers (for example, the sales department) can be allocated.

Under budget structure is understood as a set of budgets, according to which the planning and accounting of the enterprise's activities takes place.

The budget structure usually includes three main budgets:

Income and Expenditure Budget (BDR)- provides management of profitability / profitability of the enterprise;
Cash flow budget (CDBS)- contributes to the management of the company's liquidity;
Balance sheet budget (BBL)- designed to manage the assets of the enterprise,

as well as various operating budgets (sales budget, direct costs budget, overhead budget, etc.), which are the basis for the formation of basic budgets.

Regulations or provisions on budgetary management in the enterprise designed to organize budgetary activities. They contain the basic principles of budgetary management in the enterprise. The following rules are commonly used:

Regulations on the financial structure- determines the financial structure of the enterprise;
Regulations on the budget structure- determines the budget structure of the enterprise;
Regulations on planning and financial and economic analysis- regulates the sequence of planning, the procedure and methods for evaluating the results achieved.

Thus, the totality of the above basic elements determines the methodology for setting up a budget management system at an enterprise.

Setting up a budget management system at the enterprise

Due to the fact that the establishment of budgetary management in an enterprise is not an easy task, which requires a lot of time and money, it is generally accepted practice to involve third-party consultants to jointly develop a budgeting implementation project. At the same time, time optimization is achieved, because third-party consultants, firstly, are experts in the subject area and usually have a clear implementation sequence ready; secondly, consultants are focused on the project, they are not distracted by other duties (like employees of an enterprise that implements a planning system on its own); thirdly, from the side it is often better to see the weak points of the organization of the enterprise and it is easier to overcome the organizational barriers that have existed at the enterprise for years.

IN general view, setting up a budget management system at an enterprise can be represented as a sequence of the following steps:

Analysis of the existing financial planning model of the Enterprise
Formation of the financial structure of the Enterprise
Formation of the budget structure of the Enterprise
Formation of the management accounting policy of the Enterprise
Statement of accounting and management accounting
Determination of planning methodology and financial and economic analysis
Choosing a budgeting automation program
Setting up an automated budgeting program
Development of provisions for budgeting at the enterprise, user training

It occupies a special place in the budgeting system with the establishment of accounting and management accounting at the enterprise. Moreover, if accounting is required by the requirements of the legislation, then the need for management accounting is associated with modern market realities. This leads some enterprises to organize a separate division dealing with management accounting. However, given that management and accounting have many common points of contact (at least primary accounting documents), it is not advisable to keep 2 services dealing with different types of accounting. Therefore, it is worth optimizing the procedures for compiling analytical features and combining the interests of the two accounts.

Be that as it may, the need for management accounting leads to the fact that the burden on the accounting department increases, the requirements for the accountant increase: the time for reporting is reduced, the detail and volume of data increases. But this contributes to an increase in the status of an accountant - from a simple accountant, he turns into an analyst, providing the manager with the necessary information to make adequate management decisions.

Summing up, I would like to note that this article provides only the most general principles for setting up a budgeting system in an enterprise. Practice shows that the introduction of budget management in an enterprise helps to improve financial discipline, improve the economic feasibility of decisions, improve the system of operational cost management, improve the professional skills of staff in the field of financial management.

Budget - a quantitative expression of the plan, a means of monitoring its implementation and a method of regulation. The main budget of the enterprise covers production, sales, distribution and financing.

Budgeting as a management method for its cycle performs several important functions:

1. planning the activities of the enterprise as a whole and for its divisions;
2. summarizing and analyzing all collective proposals;
3. development of draft budgets;
4. calculation of plan options;
5. making adjustments;
6. final approval of plans, designing communication feedbacks taking into account changing conditions.

Complete budget systems include project and reporting data. Data is used in planning, control, evaluation of performance and improvement of the production process, costing and valuation of reserves. Budgeting, like cost classification, meets various management objectives.

The advantages of budgeting are manifested in the mandatory short-term and long-term planning of enterprise resources, the behavior of competitors in the market, and especially the current and programmable market demand for products. According to these strategic aspects, plans are developed and budgets are formed at all levels and at different intervals.

Budget data are more reliable for comparison in evaluating performance than historical data. There are shortcomings, negative deviations and other similar negative factors in the results of the past period. During the period under comparison, there could be changes in technology, the composition of the workforce, as well as a change in products and the general economic situation.

Managers and administration, when business conditions change, provide for the use of flexible budgets.

Particular attention in the development of budgets (plans and estimates) is given to forecasting sales proceeds and profits. The forecast is realized in the plan after the analysis of a number of factors such as the volume of sales of the previous period; economic and production conditions; the dependence of sales on the gross national product, the level of income of the population, employment, prices; profitability of products, the level of its profitability; market research; price policy; marketing research; product quality; competition; production capacity; trends in the sale of competitive products. From the sales program, they move on to the production program and the calculation of the standard equation for stocks of finished products.

The next stage of budgeting is to develop estimates.

The generalized estimate characterizes the planned profitability of production for a certain period. The accountant submits a generalized estimate, balance sheet and consolidated cash estimates for consideration by the planning and financial commission. Along with these fundamental documents, calculations of the payback ratios for capital investments, liquidity, and coefficients characterizing the use of funds are attached. If the commission considers all calculations reasonable and correct, the main budget of the enterprise will be adopted and will serve as the main and criterion for evaluating the activities of managers structural divisions. The budgeting process does not end there, as it is an ongoing process and is implemented through flexible budgeting.

An integral part of management accounting is budgeting and analysis of flexible budgets in order to generate relevant information for enterprise management and, on this basis, increase profits with the financial stability of the organization. In recent years, business consulting has used the term "budget management" to expand the concept of "budgeting", so the book will consider two approaches to budgeting in the management system.

Budgeting is part of one of the main functions of management-planning, therefore it is present in any effective management system and serves to specify the goals of planning the organization's activities. Certain budgeting tasks include information support for production and sales with the necessary components, preventing the movement of assets and liabilities outside the planned goals and objectives, in particular, excessive diversion of funds from circulation, avoiding unnecessary costs, motivating staff, monitoring and coordinating work on the implementation of plans, etc. The set of available budgets allows the administration to see a complete picture of the future activities of the enterprise: material flows, cost structure, financial flows, in particular tax payments, investments, etc. The approved budget formalizes the activities of departments, organizes their work in accordance with the overall goals of the enterprise, increases the rhythm of business processes occurring at the enterprise.

The structure of any budget is a multi-stage model of articles and planned indicators (a set of target figures) for a certain period of time. The budget is a financial document of the established format. Budgets can take the form of accounting reports, since the budget is a statement of the future.

The quality of budgeting is determined by the structure of budgets, the composition of budget items, the consistency of budgets among themselves, the existence of regulations that determine the functions of budgets, and managers involved in the budgeting system. Of course, budgeting is effective with a closed management cycle that includes the entire set of functions, including control functions.

The reason that reduces the quality of budgeting is the lack of:

well-defined strategy;

a clear link between strategy and current plans;

individual responsibility for the results obtained;

clear criteria for the quality of work.

Budgets should be as transparent, accessible and detailed as possible; budget indicators should be realistic, since their overestimation and impossibility of implementation, on the one hand, and unjustified underestimation, on the other, are the result of shortcomings on the part of responsible persons.

With regard to an individual enterprise, the term "budget" (from the French bougett - "leather bag") is considered as an accounting method that allows you to compare actual results with planned (ie, forecast or standard indicators).

Budgeting (in a narrow interpretation) is a short-term method of projecting the future values of financial statements, based on the fact that each of their articles provides for a person responsible for its execution. Intraorganizational financial planning involves the use of budgets. Budgeting, or budgeting, is an integral part of financial management and managerial accounting. The terms "budget" and "plan" are not identical, although the basis of the enterprise plan is always the consolidated budget. The budget is a quantitative expression of centrally established indicators of the enterprise plan for a certain period of time according to:

the use of capital, inventory, financial resources;

attracting sources of financing for current and investment activities;

income and expenses;

cash flow;

investments (capital and financial investments).

Budgets are developed to coordinate the use of firm resources, improve intercompany communication, identify organizational weaknesses, and assign job responsibilities.

The systemic nature of budgeting means that in the budget process, the totality of the budgets of individual responsibility centers necessarily forms the consolidated budget of the organization as a whole. In other words, in the end, the object of budgeting is the company's business as a whole, and budget indicators for individual units and for individual areas of economic activity are set based on the criterion of maximum efficiency of the final financial results of the enterprise as a whole, and not this individual unit.

The budget is the "tip of the iceberg" called the "plan of the enterprise", a formalized expression of costs and the expected effect on the totality of approved planning (management) decisions for the company as a whole and in the context of individual divisions. The budget cannot exist outside the plan, just as the form cannot exist outside the content.

On the other hand, planning at an enterprise can be carried out without compiling a consolidated budget, as the development of target indicators for individual departments and for individual segments of the production and financial cycle - without "end-to-end" coverage of the business. Budgeting is the process of drawing up and implementing this document in the practical activities of the company.

Both strategic and operational planning helps to control the activities of the enterprise at a certain point in time. Without a plan, the manager only reacts to a certain situation, but does not control it.

The consolidated budget allows you to improve and increase the efficiency of distribution and use of enterprise resources. Being an integral part of management control, the budget creates an objective basis for assessing the performance of the enterprise as a whole and its individual divisions. Without a budget, when comparing the indicators of the current period with the previous ones, one can come to erroneous conclusions.

The budget is also the basis and criterion for evaluating the implementation of the plan by responsibility centers and their leaders: the activities of managers are evaluated according to reports on the implementation of the budget, which increases the objectivity of the motivational function within the framework of enterprise management. Comparison of actual results against budget data indicates areas worth focusing and action.

A detailed budget and operational control of its implementation allow making reasonable and functionally feasible decisions regarding pricing, analysis of production break-even, planning the quantity and range of products, determining the structure of products taking into account the limiting factor, business restructuring, and capital investments.

Budget management is an operational system for managing an organization by financial responsibility centers with the help of budgets that allow you to achieve your goals through the most efficient use of production resources. Budget management is considered more broadly than the concept of "budgeting". In contrast, budget management involves the construction of the financial structure of the enterprise.

The following financial responsibility centers can be distinguished in an organization: investment centers, profit centers, marginal income centers, revenue / income centers, cost centers.

The financial responsibility center is largely identical to the concept of the responsibility center. Responsibility centers can be formed, for example, not only for planning, but also for coordinating the activities of production units.

The center of financial responsibility is introduced as a special term for budget management. Budget management differs from budgeting not only by a specially formed organizational structure, but also by monitoring. If budgeting is theoretically possible without feedback, albeit inefficient, budget management necessarily implies its existence.

As with budgeting, budget management is central to the budget. With the help of a system of interconnected budgets, planning, accounting and analysis of costs and / or income, the results of the economic activity of the enterprise and individual centers of financial responsibility are carried out.

An important aspect of budget management is motivation, which uses the mechanism of taking into account deviations from the planned indicators of costs and results and the delimitation of responsibility centers for such deviations. The budget contributes to the fact that employees are aware of themselves as part of the process of its implementation, then the general rule applies: if you participate yourself, you will wish the success of the organization. The budget contributes to increasing the efficiency of production through the group effect, its presence helps employees feel like a team.

It is possible to use an extended interpretation of budget management: it is considered as management by deviations (budgeting; determination of actual indicators; determination of deviations, analysis of their causes and decision-making based on the results of the analysis); the interpretation of budgetary management is expanded to the concept of management in the system of intra-organizational commercial activities with the participation of transfer prices and an arbitration commission. In practice, there is a substitution of the concepts of control systems, hyperbolization of one of the control functions - planning. Budgeting as an element of the planning function should be present in any deviation management system, in the management system by responsibility centers, and in the control system, in the internal cost accounting system, etc. In the future, for simplicity of presentation, the concepts of "budgeting" and "budget management" will be understood as synonyms.

Budget management of an enterprise is one of the elements of financial management. Budgetary management refers to the technology of accounting planning and control over the enterprise's cash and its financial results.

Creating a budgeting management system at an enterprise involves the following actions:

1. appointment of a budget director who is responsible for the preparatory process, standardization of project forms, collection and comparison of data, verification of information and reporting;
2. attraction of external consultants for examination, diagnostics and development of the budget management system;
3. choice of software product to support the budgeting process;
4. development of a budget guide - in the form of a set of instructions that reflect the policy, organizational structure of the enterprise, the division of rights, duties and responsibilities of performers. The developed instructions serve as a set of rules and recommendations;
5. allocation of responsibility centers and the appointment of managers who are personally responsible for each center;
6. organizing training for managers related to the budgeting process;
7. development of a system of operational accounting and reporting forms;
8. formation of workflow schedules for budgeting;
9. creation of a budget committee (budget committee) - an advisory group of top managers and external consultants. The tasks of this committee include, as a permanent body, to carefully review strategic and financial plans, develop recommendations and resolve conflict situations, and promptly adjust financial plans.

The development of the budget is carried out by a group, which should include an accountant, financial manager, sales and purchasing managers. The data received by the group from various departments of the enterprise is verified and corrected.

After the preparation and approval of the budget, copies of it are distributed to all responsible employees of the enterprise. Periodic reports on budget execution, in turn, should also be distributed to employees for review.

Budget management, in addition to organizing work on budgeting, also involves organizing a system for collecting and accumulating information and its subsequent processing and analysis.

The budget cycle is understood as a cyclically repeating chain of actions aimed at budget preparation, control and necessary adjustments in the course of execution.

The budget process is not limited to the stage of drawing up a consolidated budget. Time budgeting technology is a continuous three-stage cycle, where planning for the next period is based on a plan-fact analysis of the budget execution of the reporting period.

Stages of the budget process:

Plan-fact analysis of the last year's budget execution - preparation of the consolidated budget of the reporting period - control (monitoring) of the budget execution of the reporting period - plan-fact analysis of the budget execution of the reporting period.

Thus, the budget cycle is represented as a period of time from the beginning of the first stage of the budget process, i.e. preparation of the consolidated budget, until the completion of the third stage - plan-fact analysis of the implementation of the consolidated budget. Ideally, in an organization, the budget process should be continuous, i.e. completion of the analysis of the budget execution of the reporting period should coincide in time with the development of the budget for the next period.

The most important condition for ensuring the continuity of the budget process is the correct methodology for conducting a "through" plan-fact analysis of budget execution, on the basis of which the numbers of budget indicators for the next period are formed, i.e. plan-fact-analysis is both the starting and the final stages of the budget cycle.

When comparing actual and planned indicators, it is possible to identify sources of inefficiency, oblige specific employees to eliminate the identified shortcomings and control the process of correcting them.

The basis of budgeting is a strategic plan for the development of the enterprise, which is drawn up using methods strategic analysis and planning and determines the main goals and priority areas for development. Based on the main indicators of this plan, a consolidated budget of the enterprise for the planned period is developed.

At medium and large enterprises, the process of developing control and analysis of budget execution involves the processing of a large amount of information, which is difficult to do in the absence of technical support.

In the budget process, the level of efficiency and quality of accounting and analytical work is significantly increased, and the number of errors is reduced when using software and hardware. The software and hardware tools used by the enterprise structures involved in the budget process constitute the software and hardware block (component) of the budgeting system.

The consolidated budget of the enterprise should consist of revenue and expenditure parts. The optimal budget is a budget in which the revenue side is equal to the expenditure side.

Depending on the goals and objectives of management, strategic and current plans are drawn up. Current plans, quantified, represent current budgets. Current budgets are divided into tactical and operational.

Often in the system of current budgets, the so-called general budget is distinguished, which includes an interconnected system of operating financial budgets and an investment budget. The main financial budgets of the organization are:

income and expenditure budget (BDR.);

cash flow budget (BDDS);

balance sheet budget (balance sheet budget) (BBL).

Operating budgets support financial budgets and include, depending on the industry, a different composition of blocks. The information of operating budgets is used both for the operational management of the activities of sales, logistics, production, supply units, and for the preparation of financial budgets.

From the point of view of the possibilities for analyzing the implementation of budgets, rigid (static) and flexible budgets are distinguished. Fixed budgets are calculated on a fixed date. Flexible - are recalculated on the achieved actual indicators.

When budgeting, a time period is allocated, or, in other words, a budgeting horizon. The period (horizon) of budgeting is the time interval for which the budget is drawn up: year, quarter, month, etc. The budgeting period depends on management tasks.

Allocate methods for calculating budget indicators "from zero" and "from what has been achieved." In the "from zero point" option, the budget for each period is drawn up, as it were, for a newly starting enterprise. With the "from what has been achieved" method, the extrapolation method is used. In theory and practice, budgeting approaches are distinguished: "top down" or "bottom up"; combined.

In a top-down approach, the budget is prepared by one of the structural units of the organization, most often the planning department. Further, the budget is brought to the departments of the enterprise and accepted for execution. In bottom-up budgeting, budgeting is carried out by departmental managers in accordance with the goals of the organization. Further, the individual budgets of the departments are "stitched" into the overall budget of the organization. The budgets of departments are analyzed, adjusted and approved at all levels of management. As a result, the agreed and approved budget is brought to the lower level employees, where it performs the function of a guiding document.

Promising approaches to budgeting are operational budgeting, performance budgeting, and kaizen budgeting.

With operational budgeting, the objects of planning are operations and work. When setting up operational budgeting, the forms and budget items are projected not on the organizational structure of the enterprise management, but on the business process.

Kaizen budgeting is a Japanese term for a budgeting approach that involves continuous improvement over the budgeting period.

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INTRODUCTION

One of the decisive factors determining the political future of any country, its economic power, the viability and self-awareness of the nation, is the system of state administration and the degree of real participation of the population in governance.

In Kyrgyzstan, along with state governing bodies, there are local self-government bodies. State power in the Kyrgyz Republic is based on the principle of separating the functions of state power and local self-government1. The development of local self-government in the country has been carried out since 1995, when the capital city of Bishkek was transferred to the principles of local self-government. In 1996, in all rural settlements, executive and administrative bodies were formed under local keneshes - aiyl okmotu (village councils). In 1998-2000 12 cities of district significance were transferred to the principles of local self-government - Kant, Kara-Balta, Kara-Suu, Naryn, Uzgen, Cholpon-Ata, Shopokov, Kara-Kol, Kok-Zhangak, Tokmok, Batken, Isfana. In May 2001, cities regional significance- Osh, Jalal-Abad, Talas, Balykchy, Sulukta, Kara-Kul, Kyzyl-Kiya, Mailuu-Suu, Tash-Kumyr, where city halls were formed. Thus, at present, the principles of local self-government are in force in all settlements of the republic. In most cities, towns and villages, the population received the right to independently elect heads of local self-government by direct voting, and in nine cities of regional significance and the city of Bishkek, mayors are elected by deputies of city keneshes. Efficient and close to citizens management presupposes, first of all, that democratically created self-government bodies, while independently exercising their powers, determining the procedure for their implementation and choosing the means necessary to perform the relevant functions, have a real financial base.

Concept of budget

This section incorporates, in part, revised material from the Citizens' Budget Guide. Tyulundieva N., Konokbaev S., Musaev B. - UNDP Program on Political and Administrative Management at the Central Level, Soros Foundation-Kyrgyzstan, Urban Institute Bishkek. - B., 2002.

Budget management is part of the public administration system and affects the interests of every citizen. It determines, directly or indirectly, how education and health services will be provided, what salaries will be received by civil servants, what kind of assistance and who will receive from it, etc.

The budget provides financial resources for the implementation of state policy and the provision of utilities society. The condition of roads, street lighting and even the safety of each of us depends on its value. Often in the press, speeches of deputies, members of the government, there are phrases “there is no money in the state budget to increase the wages of employees”, “surcharges for teachers are not paid due to lack of money in the budget”. Successful activity of governing bodies and budget resources are interconnected things. So what is a budget?

The word "budget" in translation from English means "leather bag". In the English Parliament, this is the name of the bag in which the Chancellor of the Exchequer brings to Parliament a draft of the state's revenues and expenditures for the coming year. This term also means a plan of income and expenses for a certain period of time.

The budget of the governing bodies is a plan of the expenses necessary for society and the expected sources of income to finance them.

To better understand the concept of the budget of governments, let's compare it with the budget of an individual family. The budget of any family consists of 2 parts - income and expenses. Family income usually has certain sources and is therefore easily predictable. The amount of expenses, as a rule, is determined by the level of income.

Expenses are related to meeting the needs and desires of family members. Incomes, unlike needs, are in most cases limited. Based on this, in budget management it is important to ensure that, on the one hand, the needs and requirements of the family are met, and on the other, they correspond to income.

However, it is not uncommon for a family to plan expenses that exceed income. In such a situation, it becomes necessary to borrow money and reduce other expenses.

In some families, income may be greater than expenses. Then the surplus can be used for savings, purchasing securities, other investments, paying off debts, etc. Therefore, when planning income and expenses, the family must, firstly, carefully weigh the need for obtaining loans and the possibility of repaying them, and, secondly, take into account existing debts.

Governing bodies, like any individual family, plan to meet the needs of society and solve the problems they face:

Expenditure, i.e. what needs of society they intend to satisfy, how much it will cost and, accordingly, what public policy goals will be financed;

Income, i.e. how much resources the governing bodies will have at their disposal, and from what sources they will receive them.

After that, expenses are compared with income and their balance is summed up. In the event of a shortage of resources to cover needs, sources of borrowing are planned or expenses are reduced, and if income exceeds expenses, areas for investing surplus resources are planned.

The society should take an active part in planning the expenditures and revenues of the governing bodies, in the implementation of the adopted budget. After all, the governing bodies manage not their own funds, but public ones. Society pays them to meet their needs for public services. The requirement for public decision-making on the budget and accountability of governments to society arises on the basis that they dispose of public finances.

Why and how do governments use the budget?

In public administration, the budget performs three main functions:

1. shows what goals and objectives the governing bodies set for the coming period, and plan expenses to achieve them;

2. serves as a binding law, the basis of the system of control over the collection and expenditure of budgetary resources;

3. is a tool for regulating the economy, contributing to the socio-economic development of the country or a separate local community.

The goals and objectives of public policy are reflected both in the revenue and expenditure parts of the budget. The requirement for budget transparency, put forward in all countries, implies the provision of full information on the budget to the public. This means, first of all, that the society receives comprehensive information about the past, current and future activities of the governing bodies. Comparing, for example, the last year's budget with the current one, any citizen can say whether government spending on education has increased or decreased, whether they are more interested in stimulating economic activity or replenishing the state treasury, etc.

The purpose of the budget is not only to designate, but also to finance the policy outlined by the governing bodies. But under any conditions, only those goals and tasks that are supported by resources will be solved.

Program budget planning helps to link public socio-economic policy and budget expenditures.

The budgetary organizations that prepare cost estimates in the format of the program budget, first of all, determine the specific goals, objectives and programs of their work for the forthcoming period. Only after that, the costs of the planned programs are calculated. In the planned year, only priority areas of activity under programs approved by deputies receive funding and, accordingly, implementation. In Kyrgyzstan, all organizations financed from the republican budget have switched to planning cost estimates on a program basis. Local self-government bodies, in accordance with the new Law “On the financial and economic foundations of local self-government” (2003), should also switch to the preparation of program budgets.

What policy will be implemented through the budget is determined as a result of public decisions by Parliament. Deputies discuss it, approve expenditures and revenues, after which the budget becomes a law binding on execution. As a result, the society receives the grounds for monitoring the implementation of the decisions made on the budget and policy. A simple estimate of expenditures and revenues has no budgetary value unless accompanied by a binding obligation.

In public administration, the budget acts not only as a means of control over public finances, but is also used as an instrument of influence on the economy and society. The budget allows the state to regulate the conditions for the development of the economy (distribution of income, consumption, savings, etc.) and to influence socio-economic processes in society. There are three main economic policy goals that are achieved through the budget:

Provision of certain goods and services to society

Redistribution of income in society

Economic regulation

The private sector cannot provide a number of necessary services to society (for example, ensuring the defense of the country). Other services, due to their high price (education, healthcare), may be available to a limited circle of citizens. However, the society is interested that these benefits and services are provided to everyone. Guarantees for ensuring the production of certain goods and services are taken over by the governing bodies directly engaged in production, or by supporting it through the budget.

IN market conditions income in society is distributed unevenly. In order to create a favorable social climate and prevent possible hotbeds of tension, the governing bodies regulate income and social protection population. The redistribution of income between the social strata of the population and territories is carried out primarily through tax policy. For example, governments may determine that those who earn more pay higher taxes, while at the same time introducing incentives for less well-off payers. Another way to redistribute income is social assistance to those in need, provided from the budget.

The third goal of economic policy is the use of the budget as an instrument for regulating economic growth and developing entrepreneurship. Governments can contribute to the development of the economy by financing infrastructure, roads, etc. from the budget to improve the conditions for the work of entrepreneurs.

How many budgets are there in Kyrgyzstan and what do they serve?

The budget is the main accumulator, where all state revenues flow, and the main manager, from where the bulk of the resources received flows out in the form of expenses. Does this mean that all the money of the state at one time and in one place is divided among all recipients? Of course no. After all, from Bishkek it is not clear that in any other city the pavement is full of potholes and potholes, and in a rural school the roof needs to be repaired, and so on. To conduct an independent policy, the governing bodies in Kyrgyzstan have their own budgets.

The country has republican and local budgets. A separate budget is planned for state investment expenditures, or the development budget. And then there is the Social Fund.

The republican budget finances the maintenance and activities of central authorities and regional and district state administrations. Cities, settlements and rural governments have independent local budgets with certain incomes and corresponding expenses.

law Kyrgyz Republic“On the financial and economic foundations of local self-government” dated September 25, 2003, a new definition of the local budget was established.

The local budget is understood as the budget of the local community of an ail, township and city, the formation, approval and execution of which is carried out by local governments.

These are government funds. They are managed in accordance with established procedures. The budget process includes development, review, approval, execution and control. This is very important, as the society gets the opportunity to participate in deciding how much revenue will be collected and how it will be spent, as well as in controlling their spending.

However, not all state funds must necessarily pass through the established procedure for their use. Along with budgetary funds, governments in most countries have extrabudgetary funds. Decisions on their use are taken by the governing bodies independently, but within the framework established by law. The Social Fund is one of them.

It is an independent fund, separate from the budget. He has his own income insurance premiums), although it receives additional funds from the budget and carries out expenses specified by law. The Social Fund has its own current account and is an independent legal entity.

The budget of the Social Fund is approved by the Jogorku Kenesh. Every year, a law is adopted on the rates of insurance premiums for the state social insurance. However, decisions on what to spend money on are not made every year. The size of pensions and benefits, the contingent of recipients are determined by law and are known in advance.

The Social Fund collects, accumulates insurance premiums and redistributes them among such funds as Pension, Social Insurance, Employment Assistance and Compulsory Health Insurance. Of these funds are used to finance pensions, social security benefits, unemployment and health insurance.

In addition to the Social Fund, the governing bodies in Kyrgyzstan are allowed to create off-budget funds through charitable contributions, voluntary donations, etc. Many people remember, for example, charity marathons dedicated to the 1000th anniversary of the Manas epic, the 3000th anniversary of Osh, the Year of Mountains, etc.

A consolidated budget is prepared to analyze state revenues and expenditures. In Kyrgyzstan, it is called the consolidated (state) budget. It combines the revenues and expenditures of the republican and local budgets. The development budget is included in the consolidated budget only in the part of internal financing of state investment projects (that which is financed at the expense of expenditures from the republican budget). Expenses from external government loans are not taken into account when calculating the consolidated budget.

Thus, the state collects money and spends through the system of budgets and extra-budgetary funds. The legal basis for the financial base of LSG in Kyrgyzstan The local budget is one of constituent parts budget system of Kyrgyzstan. It is the financial basis for the activities of local governments. In accordance with the Law of the Kyrgyz Republic “On Local Self-Government and Local State Administration” dated January 12, 2002, local self-government in Kyrgyzstan is carried out by local communities, i.e. population living in cities, towns and villages.

Local communities have the right to independently decide matters of local importance. Representative and executive bodies of power are formed to manage them. Citizens are also involved in governance. In addition to matters of local importance, the state has transferred responsibility for providing a number of state functions to individual local governments.3 Local governments have certain financial resources to resolve local issues and exercise delegated state powers.

Self-execution of powers, first of all, implies that local self-government bodies (LSG), having the necessary financial resources, rely on an appropriate legal framework. Legislative base The financial foundations of local self-government4 are a number of provisions of the Constitution of the Kyrgyz Republic, the Law “On Local Self-Government and Local State Administration” dated January 12, 2002, No. 5, and other legislative and regulatory acts, including:

Land Code;

Tax code;

Law of the Kyrgyz Republic “On the Basic Principles of Budgetary Law in the Kyrgyz Republic” dated June 11, 1998, No. 78;

Law of the Kyrgyz Republic "On the financial and economic foundations of local self-government" dated September 25, 2003, No. 215;

Law of the Kyrgyz Republic "On the management of agricultural land" dated January 11, 2001, No. 4;

Law of the Kyrgyz Republic "On the basic rates of land tax for the use of agricultural land, household plots and summer cottages, lands settlements and non-agricultural purposes for 2003”, No. 87;

Local self-government bodies are endowed with certain incomes and carry out their own expenses. Most of their financial resources go to the local budget. The system of local budgets includes only the budgets of local governments. At the central level, the budgets of local governments are included in the consolidated local budget and managed as a single local budget. The system of local budgets in Kyrgyzstan, regulated as a single local budget, consists of:

Budgets of Bishkek and Osh

Budgets of cities of regional significance

Budgets of cities of district significance, settlements, rural administrations - aiyl okmotu, etc.

The government regulates the local budget through the regional subdivisions of the Ministry of Finance.

In accordance with the Law “On Local Self-Government and Local State Administration” (Article 55), the financial resources of LSG bodies are formed from: local budget funds;

off-budget funds;

credit resources, transfers and grants;

voluntary contributions and donations;

income from municipal securities and local loans;

deductions from national taxes and other incomes;

the full amount of the amounts received as a result of the payment of administrative fines;

other additional income from events organized by local governments, as well as from the activities of enterprises and organizations created for the needs of local communities.

The fundamental issue in establishing the legal basis for the financial base of LSG in Kyrgyzstan is the question of the eligibility of creating off-budget funds of LSG bodies. Article 55 of the Law “On Local Self-Government and Local State Administration” (2002), establishing the financial resources of LSG bodies, includes off-budget funds. Whereas the Law “On the Basic Principles of Budgetary Law in the Kyrgyz Republic” (1998) prohibits the creation of off-budget funds by both state structures and LSG bodies, with the exception of the Social Fund and funds created from funds raised on a voluntary basis. Those. off-budget funds of LSG bodies as their potential source of income can be created only at the expense of such funds as voluntary donations and contributions.

New law"On the financial and economic foundations of local self-government" (Article 12) establishes that local self-government bodies can create extra-budgetary funds at the expense of voluntary contributions for the implementation of socio-economic programs and projects not provided for by local budgets. Taxes and other payments subject to crediting to the budget in accordance with the legislation of the Kyrgyz Republic cannot be directed to off-budget funds of local self-government bodies.

The regulation on extra-budgetary funds of a local self-government body, which determines the procedure for their formation, use and control, is approved by the local kenesh. In addition, the local kenesh must exercise control over the correct use of extra-budgetary funds of local self-government bodies.

LSG borrowing is regulated by the Laws “On the Basic Principles of Budgetary Law in the Kyrgyz Republic” (Articles 53-57) and “On the Financial and Economic Foundations of Local Self-Government” (Articles 8-11).

Loans are made by the executive and administrative bodies of local self-government (aiyl okmotu) with the consent of the aiyl kenesh and the Ministry of Finance of the Kyrgyz Republic. They can be short-term (up to one year); medium-term (from 1 to 5 years) and long-term (over 5 years).

LSG bodies can borrow the necessary funds from creditors or make loans by issuing municipal securities.

Loans of local governments are urgent contractual obligations assumed by local governments by concluding a loan agreement and / or issuing municipal securities, through which local governments receive funds with the obligation to repay the loan amount and pay interest for use (Law "On financial and economic foundations of local self-government”, article 1).

Local self-government bodies are prohibited from making loans if the obligations to service the total debt, including previous and future debt obligations, exceed 20% of the annual income of LSG bodies.

Aiyl okmotu has the right to make a short-term loan in case of a temporary shortage of funds. The total debt on short-term loans must be repaid within the year in which the loan was made. Repayment of the loan must be secured by income that the local government will receive during the remainder of the budget year, subject to the existing income collateral for repayment of the loan. Funds received from the placement of a short-term loan cannot be invested in other securities.

Medium-term and long-term loans local governments have the right to carry out to finance capital investments and refinance existing debt on medium-term and long-term loans.

LSG loans are carried out by issuing municipal securities solely for the purpose of implementing programs and projects for the development of the territory.

The Law “On Local Self-Government and Local State Administration” enshrines the right of local self-government bodies to create associations, associations and unions of local communities (Article 11). Local self-government bodies can pool their resources and form territorial and inter-territorial, sectoral and inter-sectoral bodies of local economy management, which in the future can serve as a basis for strengthening the capacity of local self-government bodies in Kyrgyzstan, as well as their joint provision of certain types of services and / or implementation of investment projects.

The procedure for the distribution of proceeds from national taxes and incomes is determined by Article 6 of the Law "On the financial and economic foundations of local self-government". National taxes and revenues distributed at the republican level include:

1) excise tax on domestic (local) products;

2) personal income tax;

3) income tax from legal entities, regardless of the form of ownership;

4) a single tax for small businesses;

5) income from compulsory patenting.

The norms for deductions to local self-government bodies are established by the Ministry of Finance. They are not subject to change within three years.

By law, the rate of deductions for regulated taxes must not change for at least 3 years. In practice, the standards were stable only in relation to the republican and regional budgets. Whereas the standards for deductions from national taxes for villages and towns were reviewed annually. The main reason is the lack of funds in local budgets. In order to help some local communities, it is necessary to take surplus resources from others.

The new Law "On the financial and economic foundations of local self-government" creates new conditions for establishing standards for deductions from national taxes - they will be established for the aiyl budgets by district financial departments.

The stability of the standards is also established by other laws of the Kyrgyz Republic. The Law "On Local Self-Government and Local State Administration" states that the standards for deductions from national taxes should be established once every 3 years (Article 55). Article 34 of the Law “On the Basic Principles of Budgetary Law in the Kyrgyz Republic” also establishes that the norms for deductions from national taxes are not subject to change for three years.

The legislative basis for the introduction and use of the grant system in the Kyrgyz Republic is Section III “Grant System in the Kyrgyz Republic” of the Law “On Basic Principles of Budgetary Law in the Kyrgyz Republic”. Article 35 of this law determines that categorical, equalizing and stimulating grants can be used in the budget system of Kyrgyzstan.

Article 7 of the Law “On the financial and economic foundations of local self-government” specifies the purpose and mechanism for distributing grants in the budgetary system of the Kyrgyz Republic and, in addition, determines the procedure for mutual settlements within it.

The tax code defines the legislative basis for tax collection in the Kyrgyz Republic. In addition, in accordance with article 8 of the Tax Code, the Ministry of Finance develops instructions for the implementation of its provisions, which come into force after approval by the government.

Some taxes in Kyrgyzstan are regulated by separate legislative acts. For example, customs tariffs - by the Law on Customs Tariff.

Tax for the use of roads of national, republican and local significance on the territory of the Kyrgyz Republic - by the Law "On taxes from enterprises, associations and organizations" dated December 17, 1991, No. 660-XII.

Allocation of funds for the prevention and elimination of emergency situations - by the Law "On the allocation of funds for the prevention and elimination of emergency situations in the Republic of Kyrgyzstan" dated February 27, 1992, No. 760-XII.

Deductions for the development and reproduction of the mineral resource base - by the Decree of the Government of the Kyrgyz Republic "On deductions for the development and reproduction of the mineral resource base, financing of geological exploration and the geological industry of the republic" dated May 11, 1993, No. 198, etc. All these taxes are revenues of the republican budget and are fully transferred to it. Each taxpayer pays several types of taxes to the budget, depending on the type of activity and the amount of income. To facilitate the procedure for paying taxes in Kyrgyzstan, there are two simplified forms of taxation. These are mandatory patenting and a voluntary single tax for small businesses.

Patenting is mandatory for entrepreneurs engaged in certain types activities. They must pay taxes to the budget in the form of a fixed fee - a fee for a patent. This exempts them from paying all other taxes. The types of activities required for patenting and the procedure for determining the cost of a patent are determined by the Jogorku Kenesh.6 Entrepreneurs can choose a single tax as a form of simplified taxation voluntarily. In accordance with the Law of the Kyrgyz Republic dated December 7, 2001, No. 102, “On the Simplified System of Taxation of Small Business Entities”, they pay one tax (single tax) instead of a number of taxes that are mandatory for them by law. The voluntary right to pay a single tax can be used by both legal and individuals, provided that their annual gross revenue does not exceed 3 million soms during the year.

What is the difference between extra-budgetary funds and estimates of income and expenses for special funds? The cost estimate for special funds is taken into account and financed as part of the local budget. The special account of LSG bodies is opened as a sub-account of the current account of the treasury. An off-budget fund may be placed on an account opened in any commercial bank. Regulations on extra-budgetary funds of local self-government bodies, including the procedure for the formation, use and control over the use of funds, are approved by the relevant local kenesh. Control over the correctness of their use is also carried out by the local kenesh. Taxes and other payments subject to crediting to the budget in accordance with the legislation of the Kyrgyz Republic cannot be directed to off-budget funds of local self-government bodies. Funds of extra-budgetary funds of local self-government bodies can be formed only at the expense of voluntary donations and contributions. They are spent in accordance with targeted socio-economic programs and projects and are not subject to withdrawal by other authorities. Is there a legal basis for the use in inter-budgetary relations of such an item of expenditure of the local budget as “funds transferred”? The adopted new Law “On the financial and economic foundations of local self-government” determines that when drafting a local budget, local self-government bodies will be promptly provided with the information necessary for this, incl. types and amounts of expenditures transferred from one budget to another (Article 13 paragraph 2). 2. LOCAL BUDGET INCOME 2.1. Sources of income of the local budget To finance their activities, LSG bodies must have necessary resources. Local budget revenues are money received by local self-government bodies from various sources to carry out the expenses necessary for the community.

The total revenues received by the local budget can be divided into7:

current;

Capital (in Kyrgyzstan they are called income from capital transactions);

Official transfers received.

Most of the income that LSG bodies receive from society, as well as earn on their own, is current.

Current revenues are provided by tax and non-tax revenues, which are collected and transferred to the budget at different intervals in strict accordance with the law. They can come monthly or once a year, etc., depending on the type of income.

Taxes are collected in accordance with the established deadlines for their payment. LSG bodies receive income from economic and other activities as they provide goods or services to consumers.

Current revenues are receipts that regularly replenish the budget, while capital revenues are of a one-time nature and enter the budget irregularly.

LSG bodies can receive capital income from the sale of their property or other types of property. They have the right to sell their land, buildings, structures, equipment, sell stocks of goods, shares, etc. But such income cannot be regular, so LSG bodies cannot constantly rely on them (although sometimes they are very significant).

Funds from privatization act as a one-time source of revenues to the budget. The receipt of funds from the privatization of municipal property should be credited to the local budget. In practice, proceeds from the privatization of municipal property are often withdrawn to the republican budget.

Transfers are resources received free of charge and irrevocably. The receipt of transfers to local budgets is provided mainly by the transfer of resources from the republican budget.

Transfers from international organizations or other entities can be credited both to the local budget and to off-budget funds of the LSG body.

Credit resources, i.e. funds that must be returned are taken into account separately - after summing up the balance of income and expenses when planning sources to cover the budget deficit.

What are the sources of current local budget revenues? The new Law "On the financial and economic foundations of local self-government" (Article 3) established that local budget revenues consist of local taxes and fees, non-tax revenues; taxes and revenues distributed at the republican level; transfers, grants, voluntary contributions. Loans are not included in local budget revenues.

At the same time, local taxes and fees and non-tax revenues are attributed to the own revenues of the local budget, i.e. they must remain fully (100%) at the disposal of LSG bodies. Such budget revenues are the basis for planning its revenue side in all countries. Changes in the volumes of revenues regularly received by the budget can only be associated, firstly, with changes in laws and, secondly, with the instability of the economy.

Local budget revenues received from local taxes and fees and non-tax revenues are not subject to withdrawal to the budget of another level (Law "On the financial and economic foundations of local self-government", Article 3).

tax budget planning

The main purpose of taxes is to provide revenue authorities. Since in countries where the private sector predominates, the state does not have many sources of income of its own (from entrepreneurship, or from property), the private sector (individual citizens, entrepreneurs and enterprises) makes mandatory payments and transfers money to the state budget to finance public spending.

Taxation is the mandatory payment by the private sector to government agencies. The obligation to pay taxes is achieved by the fact that they are established by laws. The mandatory requirement makes it possible to provide control bodies with real resources.

Among the tax revenues of local authorities in most countries of the world, the leading place in importance belongs to local taxes. The question arises, what are these taxes? And why do they play so important role? In accordance with the Tax Code, the following taxes are in force in the republic:

1) nationwide, for which rates, objects of taxation, payers and methods of collection are the same for the whole country;

2) local, independently introduced and regulated by local keneshes in the respective territories within the limits of legislative restrictions.

National taxes, unlike local taxes, are levied throughout the country (all regions). They are introduced by the decision of the Jogorku Kenesh, which establishes tax rates, objects of taxation and benefits for them.

Local taxes are taxes owned by local authorities. Self-government bodies regulate them within the framework of legally established restrictions for financing their expenses.

In Kyrgyzstan, local taxes are introduced on a certain territory by the decision of the relevant local governments. Local keneshes have the right to decide for themselves which taxes to introduce (from the list defined in the Tax Code). Taxation rates and tax reliefs are regulated within the limits determined by law. The collection of local taxes and fees is also delegated to local authorities.

Therefore, local taxes in some regions may not be charged. In other regions, rates and benefits for local taxes may not coincide, since the policies pursued by local keneshes may differ. If the local community agrees to pay higher taxes, then governments will provide more services to the population.

Revenues from local taxes are fully transferred to the local budget and used by local governments. They cannot be divided different levels local government, as it was before, when, for example, the tax for the provision of paid services to the population and retail sales was taken into the district budget. Oblasts, districts are not entitled to receive a certain share of income from local taxes with the adoption of the new Law “On the financial and economic foundations of local self-government”.

The list of local taxes includes 16 types. The most important of them are the tax on the provision of paid services to the population and on retail sales and the tax on vehicle owners. Other local taxes do not bring tangible revenues to local budgets (for details, see section 2.2. "Local taxes").

At present, the government is carrying out some work on the preparation of regulations for the collection of tax on real estate. This tax will be collected in the cities and fully go to their budgets.

In addition, a new real estate tax will be introduced for suburban and resort areas of the country. Those aiyl okmotus and settlement councils that are classified as such will receive it in their budgets.

Local taxes in Kyrgyzstan account for less than 9% of all local budget revenues. A much larger share of revenue comes from deductions of a certain part of taxes distributed at the republican level to local budgets.

These are taxes, the proceeds of which are divided between central and local governments. A number of nationwide taxes in Kyrgyzstan are divided between levels of government. Part of the income goes to the republican, the other - to local budgets

National taxes include: income tax, corporate income tax, value added tax (VAT), excise tax, land tax, etc. (see Appendix 2 for types of taxes and their rates).

65% 35% Republican budget Local budget Land tax VAT Excises, income tax, income tax NATIONAL STATE TAXES

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Budget management.

Budgeting as a modern management tool

Budgeting for small, medium and large enterprises

The main elements of the budget management system

Setting up a budget management system at the enterprise

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