State budget represents total of all finance cost sheets of all state departments, governmental programs etc. It determines demands that are realized for expenses of the state treasury as well as indicates the source and amount of expected profit coming to the state treasury.
State activity on considering, forming, approval as well as reporting about budget implementation (relates to all levels of the budget system of the Russian Federation) is known as budgeting.
Budget system of the Russian Federation includes budgets of the following levels:
- Federal budget – major element of the budget system of the Russian Federation;
- Municipal budgets (local budgets);
- Budgets of constituent entities of the Russian Federation (regional budgets);
Federal board of treasury is responsible for cash servicing in the process of budget implementation.
When planned budget income exceeds expenditure, it is known as budget surplus. If planned expenditure of budget overrun its income, that is called budget gap. If in the process of budget implementation budget gap exceeds affirmed value or expected income of budget takes place, state authorities decide about introducing mechanism on cutting expenses, which is provided by the law. Cutting planned budget expenditure is named sequestration.
Income of state budget is the irreclaimable money accrued according to legislation.
- Sources of income generation:
- Taxes collected by state authorities;
- Income generated in the process of foreign trade, income from state property;
- Income of dedicated budget funds;
Expenditure of state budget is the money allocated for provision of finance objectives and implementation of duties by state and local government.
- Maintaining administrative machinery
- Foreign affairs
Corruption is known as ancient and outspread problem in the field of administering state finance. At the stage of budget planning, this issue affects distribution of state investments. Though the most favorable time for corruption is the stage of budget implementation.