Subventions are financial support for budget expenditures

Subventions are certain amounts of funds thatallocated from the budget of the highest level by the decision of the state authority on a free and non-refundable basis to the budget of the lower level. However, these moneys must be spent for certain purposes.

Grounds for subventions

Subventions are granted in case of insufficiencysources of income, regulated and fixed, in order to equalize the minimum level of financial support for municipalities and subjects of the Russian Federation.

Subventions are granted in accordance with the decisions taken by certain governing bodies.

There are cases when in municipalitiesor the budgets of the constituent entities of the Russian Federation are sent grants represented by monetary funds that have been allocated to finance specific types of expenditures from the highest level budget, subject to the participation in them.

Subsidies and subventions are financial resources that are subject to refund if they are not used for purpose or are not used within a certain time frame.

Regulatory documents for subventions

The grounds for subventions are:

- relevant legislation;

- decisions of local governments;

- various target programs, including the federal level.

Legislative acts providethe allocation of additional funds in case of occurrence of business entities and lower budgets of unplanned expenses. Also, if such expenses arise for business entities, the size of subventions is established by decisions of local governments.

Target program for the subvention -it is a complex of scientific, technical, organizational or social measures aimed at achieving a specific goal. Such programs, depending on the types of tasks to be addressed, can be divided into: foreign economic, scientific and technical, production and technical, socio-economic and environmental. Today, budget subventions are spent mainly on the implementation of foreign economic and socio-economic programs.

Given the level of implementation of targeted programs, they can

- On federal, which pursue the objectives of the federal level;

- regional, which are aimed at achieving goals within the specific subjects of the Russian Federation.

Subvention recipients are legal entities or subordinate budgets. Similar funding may be allocated to citizens.

Subsidies and Subventions: Similarities and Differences

There are similarities between subventions and subsidies,and the difference. The similarity is associated with the targeted use of allocated funding. Moreover, if subventions or subsidies were used for other purposes, then they are subject to mandatory return to the budget from which they were received.

The difference between these two concepts lies in the share of the budget in the provision of subsidies.