Budget classification represents a grouping of incomes and expenditures of budgets of all levels, as well as sources of financing their deficits. It provides comparability of indicators of all budgets. With its help, the systematization of information on the formation of budget revenues and the implementation of expenditures is achieved.

The federal law "On the budget classification of the Russian Federation" was adopted by the State Duma of the Russian Federation on June 7, 1996. At present, this law is in force with amendments and additions adopted by federal law No. 115-FZ of August 5, 2000.

The budget classification of the Russian Federation includes:

1. classification of budget revenues;
2. classification of budget expenditures;
3. classification of funding sources;
4. classification of operations of public legal entities (hereinafter referred to as the classification of operations of the public administration sector).

• sources of internal financing of budget deficits;
• sources of external financing of the federal budget deficit;
• types of state internal debts of the Russian Federation, subjects of the Russian Federation, municipalities;
• RF types.

Budget classification of income

The classification of budget revenues is a grouping of budget revenues of all levels of the Russian Federation.

Incomes of budgets of all levels are classified into groups, subgroups, articles and sub-articles.

Such detail allows to take into account receipts to the budgets of all types of income provided for by law. For each of them, an independent code is provided in the budget classification.

Budget classification of expenditures

Cost classification carried out in several ways:

• functional the classification reflects the allocation of budget funds to the implementation of the main functions of the state (management, defense, etc.). (Section → Subsection → Target items → Types of expenses).
• departmental the classification of budget expenditures is directly related to the management structure, it reflects the grouping of legal entities that receive budgetary funds. (The main managers of budget funds).
• Economic the classification shows the division of state expenditures into current and capital, as well as wages, material costs, and the purchase of goods and services. (Expenditure category → Groups → Subject items → Sub-items)

Functional classification of budget expenditures

It is a grouping of expenditures of budgets of all levels of the budget system of the Russian Federation and reflects the expenditure of funds for the implementation of the main ones.

The functional classification of expenses has four levels: sections; subsections; targeted articles; types of expenses.

• 0100 - State administration and local self-government
• 0200 - Judiciary
• 0300 - International activities
• 0400 - National Defense
• 0500 - Law enforcement and state security
• 0600 - Basic research and promotion of scientific and technological progress
• 0700 - Industry, energy and construction
• 0800 - Agriculture and fishing
• 0900 - Protection of the natural environment and natural resources, hydrometeorology, cartography and geodesy
• 1000 - Transport, road facilities, communications and informatics
• 1100 - Development of market infrastructure
• 1200 - Housing and communal services
• 1300 - Prevention and elimination of consequences of emergencies and natural disasters
• 1400 - Education
• 1500 - Culture, art and cinematography
• 1600 - Media
• 1700 - Health and physical education

• 1800 - Social policy
• 1900 - Servicing the public debt
• 2000 - Replenishment of state stocks and reserves
• 2100 - Financial assistance to budgets of other levels
• 2200 - Utilization and elimination of weapons, including the implementation of international treaties
• 2300 - Mobilization preparation of the economy
• 2400 - Exploration and use of outer space
• 3000 - Other expenses
• 3100 -Target budget funds

Based on the above functional classification, budgets of all levels are built. It is clear that this takes into account the specifics of the budget of a particular level. The full functional classification is used for.

Departmental classification of budget expenditures

Departmental classification budgets is a grouping of expenses by recipients of budgetary funds. The list of recipients of funds from the federal budget is approved by law for the next year.

Departmental classifications of the budgets of the subjects of the Federation and local budgets are approved by the authorities of the subjects of the Federation and local governments, respectively.

Economic classification of budget expenditures

Economic classification budget expenditures is a grouping of expenditures of budgets of all levels of the budget system of the Russian Federation according to their economic content. It reflects the types of financial transactions carried out in the performance of state bodies of their tasks. The economic classification includes groups, subgroups, subject items, subitems and cost elements.

The economic classification of expenditures of the budgets of the Russian Federation has been transformed into a classification of public sector operations. It determines the direction of budget revenues and expenditures, depending on the economic content of operations carried out in the public administration sector.

The classification of general government transactions is a grouping of transactions based on their economic content.

Within this classification, operations of the general government sector are divided into current (income and expenses), investment (operations with non-financial assets) and financial (operations with financial assets and liabilities).

The classification of general government transactions consists of the following groups:

• 100 Income;
• 200 Expenses;
• 300 Receipt of non-financial assets;
• 400 Disposal of non-financial assets;
• 500 Receipt of financial assets;
• 600 Disposal of financial assets;
• 700 Increase in liabilities;
• 800 Reducing liabilities.

Groups are detailed by articles and sub-articles. The more detailed analytical codes provided in this document are not general government transaction classification codes, but are intended solely for the purpose of structuring the text of these Guidelines.

The budget of the Russian Federation is a complex set of various items of income and expenditure. Its effective execution involves a competent classification of sources of revenue, as well as areas of costs that are present in the state financial system. The specifics of Russia's political structure presupposes the formation of a stable structured model for attributing state budget revenues and expenditures to certain categories. Do the Russian authorities have such a resource?

General information about budget classification

Certainly yes. Otherwise, the functioning of the national economy would be impossible. The classification of expenditures, incomes and other parameters of the budget occupies an important place in the system of state economic planning. This mechanism involves the accounting, systematization and analysis of information relating to the execution of articles of the state budget. Based on this information, the effectiveness of the state policy in the relevant direction can subsequently be assessed, as well as the identification of possible mechanisms for its optimization.

Federal Standards

The formation of general principles for the classification of budget revenues and expenditures in Russia is built at the federal level through the issuance of relevant regulatory legal acts, and subsequently delegated to the regions and municipalities. The fact that the development of standards and norms, through which the items of revenue and expenses of the state budget are assigned to one category or another, is implemented precisely at the federal level is the most important factor in the stability of the national economy, and in many respects also the political system.

The budget classification of expenses and incomes involves grouping the relevant items according to the degree of similarity of sources of income and channels for investing funds in the treasury and is used both for the purpose of drawing up financial plans and in the process of their implementation. The key task of the state in this case is to ensure the comparability of certain indicators in the budgets of different levels - federal, regional, municipal.

The structure of the budget classification in the Russian Federation

On the basis of what principles is the budgetary classification of expenditures carried out in Russia? First of all, two main mechanisms for its implementation should be singled out.

• First, it is the classification of income. It involves the grouping of budget revenue at all levels in relation to the sources that form it, and in accordance with the provisions of the regulatory legislation. Categories of income are determined by articles that combine certain sources of revenue on a common basis. This may be, for example, customs fees.
• Secondly, budget spending. It is also a grouping of costs allocated to different levels of the public finance system. The classification of expenses reflects the direction of cash flows in specific areas in order to solve the key tasks facing the state - the development of the economy and improving the welfare of citizens.

The budget classification within the framework of the Russian model involves the assignment of revenue and costs to sections, subsections, as well as target articles of the state budget, which reflect the direction of cash flows in the area of ​​solving specific types of tasks facing the state, and involve the implementation of certain economic activities.

Classification of expenditures and revenues of the budget of the Russian Federation can also be carried out on economic grounds. This mechanism involves the grouping of various articles based on their economic content. As a rule, it is supposed to allocate current and capital costs. Also, the economic classification of income and expenses involves the subsequent preparation of estimates for specific

Departmental classification

The most important component of the system of distribution of expenses within the framework of state financing is the activity of departments. What are they? First of all, the authorities themselves can determine certain mechanisms for assigning budget items to specific categories. Thus, departmental classification of expenditures of the state financing system is practiced. It is a grouping of cost items at the level of the budget systems of the subjects of the Russian Federation. The main task of the authorities involved in this area of ​​work is to allocate budgetary resources to managers.

Departmental classification of expenditure items most often acts as a mechanism for the distribution of appropriate appropriations. The criteria here are the same as those noted by us above - the attribution of costs to certain sections, subsections or target articles (which, in turn, can be further classified into sub-articles and other elements of financial support for the activities of authorities and institutions). As for the managers of budgetary funds at the level of regions of the Russian Federation, as well as entities in a similar status, engaged in work at the level of municipalities, their lists are approved by executive authorities or competent local governments.

Significance of classification

The classification of revenues and expenditures of the state budget of the Russian Federation is of great importance. The effectiveness of its implementation directly affects the quality of the functioning of the state financial system of Russia. The specificity of the Russian Federation is largely determined by the peculiarities of the structure of state administration, the characteristics of the national model of the federal structure of our country.

Therefore, it is extremely important from the point of view of maintaining the integrity and stability of the political system to have a structured model for the classification and distribution of revenue and budget costs. The principles of its construction should be understandable and open both for federal structures that make key decisions in the field of financial management, and for regional and municipal authorities.

The classification we have considered, according to experts, as a whole, is built quite logically. The items of income and expenditure provided for by the Russian budget system, which is very important, are the same for all levels of public financial management. This aspect makes sense to consider in more detail.

Unity of the budget system

So, the most important feature that characterizes the classification of budget revenues and expenditures in the Russian model is the unity of approaches and criteria for classifying them in one category or another at the federal, regional and local levels. Therefore, the key norms governing this mechanism are approved at the level of the highest authorities. As a rule, the relevant sources of law take on the character of a federal law. In turn, at the level of subjects of the Russian Federation or municipalities, the necessary detailing of regulatory norms can be carried out through the issuance of regional or local laws. The main thing at the same time is not to violate the general principles of budget classification, enshrined at the federal level.

We have studied the key theoretical principles by which the authorities in the Russian Federation carry out the assignment of items of expenditure and income of the state financial system to one category or another. We saw that there are a number of basic approaches to building such a scheme, which are based on economic criteria, or, for example, methods used in specific departments. Let us now consider a number of practical points that reflect how the classification of government expenditures and revenues is carried out. Let us study the very categories into which the revenues and costs of the state financial system are distributed in the Russian Federation. Let's start with income.

Income classification

The classification of budget revenue is expressed in the assignment of its sources to groups, subgroups and specific items.

Regarding groups, tax revenues can be distinguished. Key subgroups include:

1. Taxes on goods, services, license and other fees. These include:

Excises on products or raw materials that are produced in Russia or imported from abroad;

Federal, regional, as well as local fees related to the license category;

Tax on the acquisition of foreign currency, as well as payment documents, which are expressed through foreign banknotes;

2. Property fees. These include taxes:

On the property of enterprises;

On the property of individuals;

For real estate;

For inheritance or donation.

3. Charges for the use of natural resources located in the state. Among these:

Payments for subsoil use;

Fee for the reproduction of the mineral resource base;

Tax on additional revenue from hydrocarbon production;

Tax on the right to use water resources, wildlife objects;

Forest, water, environmental, land taxes.

4. Fees related to trade between the Russian Federation and other countries, with foreign economic transactions. Among these:

Customs, state fees and duties;

Contributions to various funds owned by the state;

Road and transport taxes.

The other largest group of budget revenue sources is non-tax revenues. Their structure includes the following main subgroups:

1. Property income from assets owned by the state, municipalities, or arising from certain commercial activities. These include:

Income from the use of assets owned by the state or municipalities;

Dividends on securities of state origin;

Proceeds from leasing state property;

Interest received as a result of the formation of bank deposits at the expense of free budgetary funds, as well as those that arose as a result of the provision of loans within the country;

Incomes that appeared as a result of the provision of services or compensation of state costs;

Profit of the Central Bank of the Russian Federation;

Payments from state or municipal institutions;

Fee for fishing quotas for and foreign organizations;

Other income from assets owned by the state or municipality.

2. Income from the sale of assets owned by the state or local government. These may be:

Proceeds from the privatization of enterprises that were state-owned;

Income arising from the sale of shares by public authorities;

Revenue generated as a result of transactions with residential real estate;

Income from the sale of production or non-production resources, transport, certain types of equipment;

Proceeds from the sale of confiscated or ownerless property, treasures and other assets that have become the property of the state or municipality.

Proceeds from the sale of government stocks;

Proceeds from the sale of land resources, as well as intangible assets;

Receipts from non-state structures in the form of capital transfers;

Payments and fees related to the category of administrative;

Fines, payment of damages;

Revenue arising from foreign economic activities;

Other income classified as non-tax.

3. Gratuitous receipts. Their sources may be:

Budgets of various levels;

State funds, organizations;

supranational structures.

The classification may include funds that are transferred to trust funds. Actually, this type of institution can also have income.

4. Earnings of trust funds. Among these:

Road, environmental funds;

Structures related to the activities of the customs system of Russia;

Crime Fight Fund;

Structures under the jurisdiction of the Federal Border Service, the Ministry of Atomic Energy;

Fund for the reproduction of mineral and raw material base.

These are the key categories within which Russian budget revenues are classified. As we have defined above, their essence is aimed at maintaining the unity of the budget system of the Russian Federation, adapted to the specifics of the political structure of the country. But no less important for us will be the study of the principles by which state authorities also classify state budget expenditures.

So, we have considered the criteria for attributing income to certain categories, adopted in the Russian Federation. Let us now study what the functional classification of Russian budget expenditures is. Its main category is the section. There are many specific varieties. So, the modern budget in the Russian Federation involves the allocation of the following list of sections:

State and municipal administration;

Judicial branch;

Activities in the international arena;

Law enforcement structures;

Industry, energy and construction industries;

Activities in the field of agriculture, fishing;

Environmental protection;

transport sector;

Communication, information technologies;

Market infrastructure;

Prevention and liquidation of the consequences of emergencies;

Education;

Culture and art;

Health care, physical education;

Socially oriented policy directions;

Payments on external state loans;

Formation of state reserves;

Budget subsidies and other support measures;

Optimization of the composition of weapons, including within the framework of international agreements;

Training of the armed forces in terms of mobilization;

Financing the activities of trust funds;

Other types of expenses.

Let us now study what the economic classification of budget expenditures is. It assumes the assignment of costs to the following main categories:

1. Current expenses. These include:

Payment of interest on loans;

Subsidies, transfers;

Expenses associated with the procedures for recognizing the rights to own assets abroad.

2. Capital expenditures. Among these:

Investments in fixed assets;

Formation of the state reserve;

Purchase of land, as well as intangible assets;

Transfers classified as capital.

3. Provision of budgetary loans. Among the activities of the corresponding type:

Providing loans within the framework of;

Providing loans to foreign countries;

Return of loans.

It is possible to identify additional criteria for detailing costs. The economic classification of budget expenditures may involve the definition of the widest range of items where public finances can be directed.

Additional criteria for classifying income and expenses

For example, transfers to citizens are sometimes singled out as a separate category. They represent budget funds that are used to finance pensions, benefits, compensations, social payments, as well as scholarships - all those financial support measures that are provided for by federal, regional or municipal legislation.

The budget classification of budget expenditures may involve the allocation of additional subject articles based on current categories and sections. For example, if we are talking about subsidies - funds that are provided by the state in the required volumes to the regional or municipal budget, organization or citizen on the basis of shared financial security, then they can well be classified into various sub-items.

State standards in business

It is noteworthy that the functional classification of expenses, as well as various methods of classifying budget revenues into one category or another, which are used by state authorities, can be used in business in the form of fairly similar concepts. How is this possible?

The fact is that the classification of income and expenses of an organization may also imply their assignment to sections, subsections, subject articles and additional categories. The methodology used by the authorities and business can be very similar in this sense.

For example, the classification of an organization's income and expenses may involve assigning them, if we talk about the former, to a specific area of ​​​​origin, and if we talk about the latter, to a specific area of ​​investment activities (for example, improving the production base, improving infrastructure, attracting new personnel, building new objects, etc.). In turn, within the framework of each of the noted areas of the enterprise's activities, the costs will be specified.

The similarity of the principles by which the structuring of the state financial plan and the classification of the organization's expenses, as well as income, can be expressed not only in the attribution of the company's revenue and costs to certain items (as well as in the case of the state budget), but also in building the principles of corporate relationships between organizations, which, for example, are united in a holding. How can this be expressed?

The holding in this case can act as a kind of analogue of the federal budget. Enterprises that are part of its structure - "regional" financial systems. Subdivisions and branches - "municipal" budgets. Thus, the classification of an organization's expenses may involve, for example, the inclusion in their structure of transactions similar to subsidies and transfers, that is, aimed at providing financial support to those holding structures that need it at a particular point in time.

Commercial activities can sometimes be very similar to those or other activities of public authorities. So, for example, with regard to loans and credits, the classification of enterprise expenses may also imply their inclusion in a separate category, just as the authorities do this when forming a budget.

Thus, the financial policy of government and business may have noticeable signs of similarity. The classification of enterprise expenses, incomes, as well as the structuring of revenues and state budget costs within certain categories, in some cases will be carried out according to uniform principles.

Revenues and expenditures of the state budget are very diverse in terms of sources, purpose and other features. To ensure proper planning and accounting of budget revenues and expenditures throughout the country, they must be classified. The most important condition for ensuring the unity of the budget system is its organization in the context of budget classification items.
The budget classification is understood as a scientifically based economic grouping of budget revenues and expenditures on homogeneous grounds, as well as sources of covering the budget deficit and public debt, brought into a certain system and coded in the proper order. The nature of the grouping is determined by the socio-economic content of budget revenues and expenditures, the structure of the economy and the management system. A prerequisite for the functioning and efficiency of the entire budget process is the regulation of sources of income and the determination of the goals of budget expenditures.
The budget classification is based on a grouping of budget indicators, which gives an idea of ​​the socio-economic, departmental and territorial section of the formation of revenues and the direction of funds, their composition and structure. At the same time, an important requirement for the budget classification is clarity and clarity of grouping.
The significance of the budget classification lies in the fact that the competent use of grouped budget classification data allows you to see the real picture of the movement of budget flows and actively influence the ongoing economic and social processes. At the same time, the grouping of revenues and expenditures will facilitate the verification of data included in the budget, comparison of estimates of similar departments, budget institutions of territorial entities for several years, determination of the dynamics of revenues and the share of various revenues and expenditures or the degree to which specific needs are met.
The role of the budget classification in the budgetary system of the state is that with its help it becomes possible to control the movement of budgetary resources. The budget classification is one of the tools that ensure the implementation of the principle of the unity of the budget system.
The main principles for constructing a budget classification are:
1) the principle of unity, i.e. budget classification serves as the basis for a unified methodological approach to the preparation and execution of all types of budgets;
2) the principle of clarity means the reliability and reliability of the forecast indicators for the socio-economic development of the respective territories and the realistic calculation of income and expenditures of budgets of all types
3) the principle of detailing income and expenses means that incomes are classified according to sources of occurrence, and expenses according to target items of expenses.
The budget classification creates the conditions for combining estimates and budgets into general codes, facilitates their consideration and economic analysis, simplifies control over budget execution, over the completeness and timeliness of receipts of funds and the use of budget funds for their intended purpose. The budget classification makes it possible to compare revenues and expenditures according to budget execution reports, which contributes to the observance of financial discipline and the economical use of budget funds.
A large role belongs to the budget classification and in the process of budget execution. It is a necessary condition for ensuring targeted financing of activities provided for in the approved budget and cost estimates of budgetary institutions. The budget classification underlies the unity of synthetic and analytical accounting of budget revenues and expenditures in financial bodies, budgetary institutions, institutions of the National Bank of the Republic of Kazakhstan. It is necessary for the preparation of reports on the execution of the state budget. Given the independence of the budget system links, the budget classification creates the basis for a unified methodological approach to the preparation and execution of all types of budgets, for comparability of budget indicators.
The need for a budget classification is due to the creation of uniform conditions and principles for public authorities and administration to carry out budget planning, manage the budget process, maintain budget accounting, prepare budget reports, conduct budget control, analyze the preparation and execution of budgets.
The budget classification is focused on solving such problems as:
control over the composition and structure of revenues and expenditures of the budget system;
obtaining consolidated budget information comparable across all levels of the budget system;
formation of tools for legislative control of the budget process;
ensuring the implementation of the principle of unity of the budget system.
The Unified Budget Classification in force in the Republic of Kazakhstan was developed according to the methodology of the International Monetary Fund based on the requirements of international standards. The unified budget classification of the Republic of Kazakhstan is a grouping of revenues and
budget expenditures according to functional, departmental and economic characteristics with the assignment of grouping codes to objects of classification. The unified budget classification is a single and mandatory for the consolidated budget and one of the tools for harmonizing the system of indicators of strategic, medium-term programs and development plans of the republic, republican and local budgets in order to achieve their balance. Relevant normatively justified proposals of state administration bodies on introducing changes, additions to the Budget Classification are submitted to the Ministry of Economic Development and Trade in the process of budget planning, as well as in the course of budget execution in the event that a regulatory legal act is adopted that involves amendments, additions to the Budget Classification. Proposals for amendments and additions to the draft Budget Classification necessary for planning the draft budget for the coming financial year are submitted before April 15 of the current year.
The draft Budget Classification for the coming financial year is sent by the Ministry of Economic Development and Trade to central and local executive bodies by May 15 of the current year for the formation of the republican and local budgets. When compiling the Budget classification, in cases of exclusion of existing classification codes from the corresponding levels of the budget, the expiration date of their validity is indicated. The budget classification is approved after the adoption of the Law of the Republic of Kazakhstan on the republican budget for the upcoming planning period until December 10 of the year preceding the planned one.
Each type of budget receipts and expenditures is assigned a classification code, which is a digital code (grouping code) assigned individually for each type of receipts, each type of budget expenditures and administrators of budget programs, according to their specific characteristics, according to the levels of income classifications, functional and economic classification of expenses.?
The introduction of new types of revenues, the abolition or change of the existing ones in the Budget classification is carried out by the Ministry of Economic Development and Trade in accordance with the relevant regulatory legal acts. At the same time, the Ministry of Finance of the Republic of Kazakhstan submits to the Ministry of Economic Development and Trade a proposal to introduce new types of budget revenues, to cancel or change existing ones. Relevant government proposals
on the introduction of new types of budget revenues, on the abolition or change of existing ones are considered by the Ministry of Economic Development and Trade for compliance with the norms of the current regulatory legal acts. The Ministry of Economic Development and Trade justifiably rejects these proposals, or develops, in accordance with the established procedure, a draft order on introducing amendments and (or) additions to the Budget Classification. Expenses of state bodies engaged in intelligence and counterintelligence activities, and their institutions, as well as directly ensuring the security of the President of the Republic of Kazakhstan, are classified according to one functional group, one current budget program and one budget development program, reflecting one specific economic classification of expenses.
The current unified budget classification is characterized by the transparency of the movement of financial flows, which allows for strict financial control over the processes of generating revenues and spending budget funds.

The budget classification of the Russian Federation is a grouping of income, expenses and sources of financing deficits in the budgets of the budget system of the Russian Federation, used for the preparation and execution of budgets, preparation of budget reporting, ensuring comparability of budget indicators of the budget system of the Russian Federation.

The budget classification is unified and is used in the preparation, approval and execution of budgets of all levels and in the preparation of consolidated budgets of all levels.

The value of the budget classification in the budgetary system of the state lies in the fact that with its help it becomes possible to monitor the movement of budgetary resources. Based on the factor analysis of budget items, an analysis of the relevant indicators is carried out, which makes it possible to formulate conclusions and proposals on the formation and use of budget funds. In addition, it greatly simplifies the consolidation of estimates and budgets into common consolidated documents. The existence of a budget classification implies the assignment of a specific code to each institution and organization.

The determination of the principles of appointment, the structure of the codes of the budget classification of the Russian Federation, as well as the assignment of codes to the constituent parts of the budget classification of the Russian Federation, which, in accordance with this Code, are uniform for the budgets of the budgetary system of the Russian Federation, are carried out by the Ministry of Finance of the Russian Federation.

The budget classification of the Russian Federation includes:

classification of budget revenues;

classification of budget expenditures;

classification of sources of financing budget deficits;

classification of operations of public legal entities (classification of operations of the public administration sector).

The classification of budget revenues of the Russian Federation is a grouping of budget revenues of all levels and is based on the legislative acts of the Russian Federation that determine the sources of formation of budget revenues of all levels. Income groups consist of income items that combine specific types of income according to sources and methods of their receipt.

The functional classification of expenditures of the budgets of the Russian Federation is a grouping of expenditures of budgets of all levels, reflecting the direction of finances for the implementation of the main functions of the state. The first level of this classification are sections consisting of subsections specifying the direction of finance for the implementation of state activities in a certain area and forming its second level.

The classification of sources of financing the budget deficits of the Russian Federation is a grouping of borrowed funds attracted by the Government of the Russian Federation, executive authorities of the constituent entities of the Russian Federation and local governments to finance the deficits of the corresponding budgets.

Budget classification of the Russian Federation

By its very nature, a classification of general government transactions is a grouping of transactions in the general government sector based on their economic content.

CLASSIFICATION OF BUDGET INCOME

The structure of the 20-digit budget revenue classification code is presented in the form of four components:

1) chief administrator of budget revenues (categories 1–3);

2) type of income (group, subgroup, item, subitem, element) (categories 4–13);

3) subtype of income (categories 14–17);

4) classification of operations of the general government sector related to budget revenues (categories 18–20).

The structure of the budget revenue classification code

The code of the chief administrator of budget revenues consists of three digits. It is established by the law (decision) on the budget. Assignment to the chief administrators of budget revenues of codes of classification of budget revenues is carried out on the basis of the powers they exercise to present claims for the transfer of property, including funds, to a public law entity.

The income type code (bits 4–13 of the budget income classification code) consists of 10 characters and includes:

group (category 4);

subgroup (categories 5, 6);

article (categories 7, 8);

Sub-article (bits 9-11);

element (digits 12, 13).

The income group has the following meanings:

· 100 - tax and non-tax revenues;

· 200 - gratuitous receipts.

Further detailing of the code for the type of budget revenues is carried out in the context of the relevant articles and sub-items in accordance with the Instructions on the procedure for applying the budget classification of the Russian Federation, approved by order of the Ministry of Finance of Russia dated July 01, 2013 No. 65n.

In digits 18–20 of the code for classifying budget revenues, KOSGU is used (Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation). This grouping reflects the economic content of operations carried out in the public administration sector.

CLASSIFICATION OF BUDGET EXPENDITURES

The grouping of expenditures of budgets of all levels is a classification of budget expenditures.

Chief stewards (ranks 1–3). The list is given in Appendix 9 to Order No. 65n and is established by the law (decision) on the relevant budget as part of the departmental spending structure.

Sections, subsections (bits 4–7). There are 14 sections in the classification of budget expenditures.

They reflect the direction of financial resources for the implementation of the main functions of the state. The sections are detailed by subsections specifying the direction of budgetary funds for the performance of state functions within the sections.

An example of the classification of budget expenditures

Section 0700 "Education" consists of nine subsections. It accumulates the costs of a purposeful process of education and training in the interests of a person, society, and the state. Thus, subsection 0702 “General education” reflects expenses for primary general, basic general, secondary (complete) general education. It also indicates the costs of maintaining and providing the educational process of general educational institutions, institutions for extracurricular work with children, special (correctional) institutions.

Target articles. The target item code consists of seven characters - bits 8–14 of the 20-digit budget expenditure classification code. At the same time, digits 11 and 12 are intended for coding the program of the corresponding target item, and digits 13 and 14 are for coding a subprogram specifying (if necessary) the direction of spending funds within the program.

Types of expenses (categories 15–17) detail the directions of financing budget expenditures both by target items and by target programs of budget expenditures.

The lists of types of expenses used in the budgets of the constituent entities of the Russian Federation and local budgets are formed by the relevant financial authority based on expenditure obligations to be fulfilled at the expense of the relevant budgets.

In digits 18–20 of the budget expenditure classification code articles and sub-articles of KOSGU are given (contained in Appendix 4 to the Instructions on the procedure for applying the budget classification of the Russian Federation).

CLASSIFICATION OF SOURCES OF FINANCING OF BUDGET DEFICIENCY

The classification code for sources of financing budget deficits consists of 20 categories and includes:

· code of the chief administrator of budget deficit financing sources (categories 1–3);

· codes of the group, subgroup, article and type of source of financing of budget deficits (bits 4–17);

· classification code for operations of the general government sector related to sources of financing budget deficits (digits 18–20).

The list of chief administrators of sources of financing budget deficits is approved by the law (decision) on the relevant budget.

Groups and subgroups (categories 4–7) are established by the budget legislation of the Russian Federation and are the same for the budgets of the budget system of the Russian Federation, for example 4600 - “Other loans (budget loans)”.

Further detailing of subgroups of the code of sources of financing of budget deficits is carried out by means of articles and types of sources of financing of budget deficits.

At the same time, the six-digit code of the article of sources of financing budget deficits is detailed by a sub-article and an element - respectively, categories 3, 4 and 5, 6 of its six-digit code.

The element of sources of financing of budget deficits reflects the belonging of the source of financing of the budget deficit to the corresponding budget of the budget system, for example, the code of the element of sources of financing of budget deficits:

01 - federal budget;

· 10 - the budget of the settlement.