government of any state often uses a tool such as intergovernmental transfers.They represent the amounts of money that are transferred from one budget to another and, as a rule, intended to implement a particular purpose.
are the following forms of intergovernmental transfers:
- subsidies;
- subventions;
- subsidies.
Under the subsidies meant a share in the financial security of a specific project.Their amount and direction of spending estimates are strictly defined, may be granted not only to budgets of other levels, but also businesses and even individuals.
subventions - is intergovernmental transfers, which move from one budget to the other or to the needs of the legal entity.A characteristic feature of this form is in permanent and free of charge, as well as the carefully targeted use of funds.
grants are funds that are available in the budgets of other levels free of charge, does not require a return to the future, in addition, there is no need for the intended use.
main difference between subventions and subsidies considered the fact that in the former case, funds from the budget systems are designed for specific purposes.Failure to comply with a particular focus payee is obliged to return them to the state budget in its entirety.And subsidies and subventions different scale of investment, because the first concept assumes a share rather than full funding.It combines all of the above forms of the fact that all the intergovernmental transfers are listed at no charge.
If we talk about the law, we can distinguish the main trend, which reveals the direction of budget financing.For example, the federal budget the amount deducted to the state to maintain the stability of individual subjects of budgeting system in the form of grants, as well as the funds are transferred to the budgets of other levels and extra-budgetary funds in the form of subventions and subsidies.
government often creates the Federal Fund, which provides co-financing the costs of the local administration in the form of subsidies when other budgets can not cope on their own.A set of federal budget subsidies refers to the Federal Compensation Fund.
Each subject of the Russian Federation will organize their own fund, which may also provide intergovernmental transfers.As a rule, they are intended to finance the stable operation of the municipal units in the form of grants and subventions and subsidies to local budgets and autonomous regions, based on specific contracts and agreements with higher budgets.The amount of funds in the form of grants calculated on the basis of indicators of the population of a particular subject.For which they are established a special fund to finance settlements or municipal districts at the regional level.
Local budgets are also involved in providing intergovernmental transfers in the form of subsidies to ensure the financial stability of the communities in need, subsidies for the purpose of solving important municipal tasks.In addition, contributions are made to the budgets of individual subjects of the Russian Federation for the organization of a regional fund.To provide grants for local established funds to support specific areas of settlements.And funds from local budgets to the higher authorities (regional budgets) are listed only if the income part of the tax revenues exceeded the planned target.
Thus, one could argue that intergovernmental transfers - is an effective tool in the hands of government agencies, which helps regulate the financial position of the individual subjects of the Russian Federation.
