In drafting the budget, both state and local, with a view to an equal distribution of funds among the federal entities, as well as between the different branches of production and the national economy subject to regulation.Its essence lies in the alignment systems to ensure regional or sectoral structures through the use of such forms as grants, subsidies, subventions and others.At the same time the government or local authorities must meet minimum state standards.
widely used in the world practice the distribution of funds between budget funds of different levels or sectors.In the Russian Federation, more than 70% of financial regulation is made up of the regulatory revenue.What is a subsidy and what role she plays in domestic economic policy of Russia, fully explained the Budget Code of the Russian Federation.
forms of regulation
among the budgets of different levels are redistributed by means of repayable financial support in the form of the following main forms of regulation:
- subsidies;
- statutory grants (transfers);
- subventions;
- subsidies;
- compensation.
concept grants
What is a subsidy?This is money that identifies the state or local budget to support loss-making organizations, enterprises.Those who have sales of less than the cost of production and sales of their products.And also to lower budgets to cover the gap between their expenses and income.Thus offset the costs cover losses.Providing subsidies to prevent bankruptcy and do not exceed the prices of certain consumer goods and services.Part of the value of the goods is paid from the budget.This is due to subsidies.Such a tool for financial policy is widely used in countries where widespread administrative regulation of the economy.
What equalization grants
equalization grants is an intergovernmental transfers.It is aimed at smoothing the ability of profitable facility.Subsidies aimed at balancing the viability of the RF subjects included into the general state budget.They are evenly distributed and differentiated according to the method of government.Budget allocations for federal subsidies to make up Support Fund of the RF subjects.The largest number of finance from the Fund, the following federal entities (regions):
- Arkhangelsk.
- Altai region.
- Amur.
- Astrakhan.
- Bryansk.
- Vladimir.
- Volgograd.
subsidies for citizens
What is a subsidy to the public, will help to understand a simple example.It is known that some of the citizens on the value of their income is below the accepted social standards.In order to maintain the financial security of this population the state can use the grant schemes designed to partially cover the payment of utility bills, the cost of acquisition of social goods and medicines, as well as benefits.Disbursements to citizens give the state the opportunity to spend less money than the subsidized production and services.
basic directions of use of subsidies for the population
most common types of subsidies for the population of the Russian Federation are:
- regulation of tariffs for public utilities;
- compensation fare for certain categories of citizens;
- funding for veterans' organizations and various associations of people with disabilities;
- housing subsidies.
