State non-budgetary funds are an important component of the formation of public finances, which can be used for social and economic needs.
Formation of income and expenditure of these funds occurs in accordance with the Budget Code and other legislative acts in the form of annual budget laws.
So, state off-budget fundsare represented by cash resources intended for the financing of pension and social security, insurance, medical care and health protection. In a word, we are talking about all the rights enshrined in the Constitution of the Russian Federation.
Execution of the budget of any such fund in the form ofof the corresponding report is prepared by its management body and is provided for consideration and approval by the highest authorities. Control over this process is the bodies responsible for implementing budgets of a similar level in the Russian Federation.
State non-budgetary funds of the Russian Federation are formedwith the help of mandatory target payments, calculated in certain percentages to the wage fund, and can be included in the cost of production.
Today there are more than 30 such funds, inwhich are concentrated more than 60 percent of state revenues. These organizations are subdivided into social and economic institutions, which differ in the sources of their formation and in the scale of their destination and use.
State social extra-budgetary funds are represented in the form of a system of bodies such as the Pension Fund, social funds, as well as compulsory medical insurance.
Extrabudgetary funds of economic orientationconsist of a fund for technological development and R & D, financial support of industries and investment. Their main purpose is in the source of accumulation and spending of funds for the needs of the country.
The history of these funds is severalmore ancient than state budgets. At first they had the form of special accounts. However, in the development of the state, there was a need to constantly attract more funds. It was then that modern state non-budgetary funds were formed. It was with the help of these organizations that it became possible to accumulate more money, subsequently channeling them to specific goals related to health, pension payments and insurance.
В самом начале своего становления фонды functioned on an interim basis, which provided for the cessation of their activities after the achievement of a specific goal of the state. With the advent of new tasks, new organizations were created that were able to eliminate such a major shortcoming of the formerly functioning system, such as the lack of finance in some funds and their surplus in others.
In the transition to a market economy, the appearance of these funds in Russia is due to a number of reasons:
- the need for social protection of citizens during economic instability and unemployment;
- use of funds for the intended purpose;
- the need for a sufficient amount of finance to deal with social issues;
- with the use of a credit mechanism, it becomes possible to cover the budget deficit.
State off-budget funds also have certain peculiarities:
- strict planning by the state authorities of their size;
- the use of financial resources of these funds for the needs of the state, not included in the core budget;
- contributions are tax payments that are established by the state and must be mandatory.
