Budgeting is not directly based on ... The main phases of budgeting

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Any economic entity works on the principle of budgeting, that is, the formation of a financial "wallet" for a certain period. Working with him is an important part of the economic strategy, since exactly what is defined in it will influence the further possibilities of fulfilling the goals set.

The concept of the budget and its functions

To understand what constitutes such an economic phenomenon as a “budget”, one should define it. It should be noted that it can be characterized in different formulations, but the following meaning will always be present - this is a fixed plan of income and expenses, drawn up for a future period with a final date of implementation. That is, it is a financial document containing essential information about financial resources that should be available to the subject and which should be sent to the list of expenses. But budgeting is not directly based on purely quantitative accounting, but includes more capacious actions on the qualitative analysis and definition of items of both income and expenditure.

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The period of its planning and implementation, each business entity chooses itself, except in cases where the period is clearly defined in the legislation. In this case the budget of the state and local levels is supposed

Economically independent economic entities can set the period of its implementation at their discretion, based on the characteristics of the type of activity, but most often take a period of one standard calendar year. At the same time, budgeting is not directly based on exclusively current indicators, but takes into account development forecasts and possible new directions of spending.

Compilation levels

For commercial companies that do not have a hierarchy, the draft budget is prepared at the level of top management with the participation of specialized departments, such as: economic planning, accounting, production, etc. But there is a condition. If the company is small, then the drafting of the budget is made by managers.

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Companies with an extensive branch structure or holding companies also carry out budget planning at the highest level, taking into account the planned budgets of the company and firms.

Considering the budget system of Russia, it is necessary to allocate levels:

  1. The federal budget, which is aimed at solving the most fundamental tasks of the state and the population.
  2. The budget of the subjects of the Russian Federation associated with the processes at the regional level.
  3. Local level - budgets of urban districts, municipal districts, etc.

Stage of the draft budget

The process of budgeting is very capacious and complex. It requires a competent and rational approach to take into account all the necessary aspects of budgeting.

It should highlight the main phases of its preparation for a commercial company:

  1. Determination of the period for which the budget is drafted, the distribution of points of control over the implementation of the budget based on a temporary or project factor.
  2. Determination of sales potential in the planned period, taking into account all the main factors: fluctuations in demand, price dynamics and changes in consumer welfare, the possibility of changing the level of supply of goods and services, the actions of competitors in the market.
  3. Expenditure planning, taking into account changes in the company's production policy, marketing strategies, availability of resources for carrying out activities, etc. Management expenses are determined.
  4. Comparison of two items - revenue and expenditure parts for their ratio.
  5. Determining the risks of changing the balance in the budget.
  6. Direct preparation of the draft budget, its approval.
  7. Monitoring the implementation of the budget at each control point.

If you want to answer the question “name the main phases of the country's budget”, then in this case the process is more complex and multidimensional. The period of preparation begins long before the time when it will be approved. Preparatory work will include the development of economic development plans, forecasts for financial, economic and social processes, be based on tax authorities, and also include the main benchmarks of the country's development, indicated in the message of the first person of the state.

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In the future, for the adoption of the federal budget will require that this document has been approved by the State Duma, which in several readings produces the discussion and approval.

Budget structure

Budgeting is not directly based on income and expense items, but takes into account a large number of additional factors and risks.

If the budget structure of a commercial company has already been described in the stages of budget formation, the composition of the state budget should be considered separately.

The state budget also has items of income and expenses. The first are divided into tax and non-tax.

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All taxes related to the federal level, as well as duties, including customs, belong to the tax items of income. The second group of income refers to the receipt of income from sales of state property, profits of state-owned enterprises, foreign economic activity, the implementation of state reserves and reserves.

The composition of federal spending is very diverse. Here, first of all, there are directions for providing social support to the population, which includes various types, the content of national defense, the judicial system, law enforcement systems, and state bodies. Federal investment programs, public debt service, and assistance to local budgets also constitute cost items.

Imbalance of the state budget

Despite the fact that the state budget is drawn up on the basis of the balance of expenditures and incomes, in the course of its implementation there is a divergence of proportions and a situation of imbalance occurs. In the case when expenditure items begin to exceed the revenue side, a budget deficit occurs, the reverse situation is characterized as a budget surplus. The emergence of a budget deficit is more frequent. In the event of such a situation, it will be necessary to seek sources for its repayment. Most often, at the state level, gold and foreign exchange reserves are used for this.

At first glance, a situation where there is a surplus is more successful, but on the other hand, this means that some areas were incorrectly calculated, as a result of which the current time may receive less funding.

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The question of the actual discrepancy between the items of income and expenses is also characteristic of commercial enterprises. In such cases, most often, top management makes prompt adjustments to these articles, identifies areas in which it is permissible to reduce funding in the event of a budget deficit, and if there is a surplus, which activities can be financed additionally.

Legal budget issues

The state budget is regulated by the Budget Code of the Russian Federation. Budgeting is not directly based on the Constitution of the Russian Federation, but the country's most important document determines the procedure for reviewing and approving the budget. Also, the Constitution of the Russian Federation establishes the budget system of the state, therefore, the relationship of the whole procedure of working with the state budget and the Constitution of the Russian Federation is obvious.

It should be noted that the Budget Code of the Russian Federation, based on the principles of federalism and autonomy of local self-government, constitutionally approved in general provisions, contains information on the terms for which budgets of different levels are approved. At the same time, despite the fact that a period of three years is registered, a financial budget of Russia for the year is created in each three-year cycle. This allows you to look more closely at the upcoming periods and strategically manage the revenue and expenditure parts.

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Evaluation of the effectiveness of the budget strategy

As it was revealed, budgeting is not directly based on the balance of financial resources, but includes a complex outside of financial factors. The main task of budgeting, in addition to the quantitative balance of expenditures and revenues, is the achievement of the goals set for each financially secured area. Therefore, it is often enough to control the execution of the budget and the targeted use of funds, since when allocating funds to third-party processes, the initial goals will not only not be achieved, but there will be a fan decrease in efficiency in a number of related areas.

Conclusion

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An economic category such as a budget is a complex and multidimensional financial group consisting of a set of actions, processes, and articles. Budgeting is not directly based on a single document or analysis of a single phenomenon. For the formation of an economically weighted budget for both the company and the state level budget, analytics and monitoring of a large amount of data, indicators, assessment of risks and opportunities in the future are required. Therefore, answering the question “name the main phases of budgeting”, you should not talk about two or three steps, but more than five stages, since each of them will be responsible for drawing up an effective balance, and not the overall ratio of budget revenues and expenditures.

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