Reduction debit to credit - it is a matter of concern not only to individuals and businesses, but also the whole country.It's one thing to make the budget a year, quite another - to execute it.The state, of course, may appeal to the international lending, but it is not always profitable.In this case and there is a sequestration of the budget.The procedure established by law in the United States and some countries, the majority of this title are trying not to sound, presenting spending cuts as a necessary but not a mandatory measure.
budget sequestration: what is it?
US law provides for a procedure, which limits public spending on clearly defined categories.This is the sequestration of the budget.Congress passes the size of the annual appropriations.If the costs exceed the set, then there is a simultaneous and proportional reduction of all categories.This amount will not be transferred to these regions, and left at the Treasury.The term "budget sequestration" is taken from the jurisprudence.In the legal science it means the transfer of property bailiffs in order to avoid inflicting damage to the dispute in court.
Act Gramm-Rudmena-Hollings and modernity
term "budget sequestration" was first used in American law in 1985.He was devoted to the integral part of the Deficit Reduction Act, drawn up by Grammy Rudmenom and Hollings.But in 1990 it was decided to abandon the rigid constraints.The new system has existed for 12 years.Then, for a long time it has been the subject of sequestering experts.But in 2011, this procedure has become an integral part of the Act on the Control of the budget.With this bill failed to resolve the problem of exceeding the debt limit.Committee was established to reduce the debt.Sequestering budget expenditures - is the last measure that can be applied in the event that the Congress will not be able to adopt a law on the reduction of costs.Many experts say sequestering the budget in 2013.To the delight of the taxpayers, the government managed to avoid it.
budget process in the Russian
Each year, the government creates a federal law that shows how to live the country's population.Then the budget is signed by the President and shall come into force.The fiscal year in this case coincides with the calendar.The main components of the budget are revenues, expenses, and the difference between them.In Russia, there is a deficit, that is, the costs are not covered by government tax and other revenues.If 50 billion - is the income and expenses - 150, it means that the country needs to find somewhere they lack 100. deficit - it is a balancing item.You can put there any sort of sum, but that the state does not have additional money.If the financing of specific projects does not have resources, it's just cheating people.Moreover this situation sets a precedent for the uncontrolled disposal of the funds: one article can be reduced by 10%, other - 50, a third - very clean.Is it possible to say in this case that the budget is being implemented?Nevertheless, Russia often exactly what happens.
a deficit
If money is not enough, it is logical to them somewhere to take.It is clear that then they have to pay with interest, but here comes to the fore the current situation of crisis, not the dream of the good prospects.The sources cover the deficit include borrowing from individuals and legal entities, as well as international organizations and other countries.The problem with the latter is that their loans are often associated with political influence on the internal situation in the country with a lack of funds.
In addition, the government may issue bonds, which buy natural and legal persons.But it is important to understand that the money sooner or later have to give, so the budget expenditures should be associated not with populist slogans, and a really promising sectors with high returns.
Functional classification
In order not to have to sequester the budget in the future, it is important from the outset to properly install the costs of certain industries.Functional characterization shows where the money is spent.For example, it is possible to know how much money was spent on the implementation of the control, defense, health and education.Thus, this characteristic is the same for all subjects of the Russian Federation.Further, the costs and revenues of the consolidated budget are reduced.In the most general form, it consists of three parts: the content of the ministries and other administrative bodies, the interaction with the territories, the implementation of certain development programs.With regard to the transfers, they do not have a target orientation.The total cost of a region is considered the norms.This means that some regions may be used increases the cost factor (for example, North).
sequestration budget 2014
consequence of permanent deficit is increasing every year the need to reduce the expenditure side and the search for new ways of financing.At the end of 2013 Finance Minister said the need to reduce the budget appropriations.He stressed that the sequestering of the budget for 2014 is not provided.Anton Siluanov assured that it does not cut costs, and the choice of priorities, the relevant requirements of the time.The increase in the deficit is 400 billion rubles, does not allow to allocate funds for the development of the Trans-Baikal and Far East, as well as development of infrastructure required for the World Cup, which will take place after 4 years in the Russian Federation.Therefore, according to the minister, it is necessary to change priorities and to send money in more promising sectors.2014 revenues are projected at 13.4 trillion.
Nevertheless, the new budget has caused a lot of criticism.Most called reallocation of funds sequestering.Experts believe that much more the right thing is always the expansion of the revenue part and not closely monitored for embezzlement.
