Credit debit is a question thatworries not only individuals and entrepreneurs, but entire countries. It's one thing to make a budget for the year, quite another to do it. The state, of course, may turn to international lending, but this is not always beneficial. In this case, there is a sequestered budget. This procedure is established by law in the United States and some countries, but in most cases this name is tried not to be voiced, presenting cost cutting as a necessary but not mandatory measure.
Budget sequestering: what is it?
US law provides a procedurewhich limits government spending by clearly defined categories. This is budget sequestering. Congress adopts annual allocations. If expenses exceed the established ones, their simultaneous and proportional reduction in all categories occurs. This amount is not transferred to the specified areas, but is left in the Treasury. The term budget sequestration is taken from law. In the legal sciences, it means the transfer of property to bailiffs in order to prevent damage to it before a dispute is considered in court.
Gramma-Rudman-Hollings Act and Modernity
Термин «секвестирование бюджета» был впервые applied in the US law of 1985. He was devoted to the whole part of the deficit reduction act, drafted by Gramme, Rudman and Hollings. But already in 1990, it was decided to abandon the stringent restrictions. The new system lasted 12 years. Then, for a long time, sequestering was the subject of discussion by experts. But in 2011 this procedure became part of the Budget Control Act. With the help of this bill, we managed to solve the problem of exceeding the established limit of debts. A debt reduction committee was created. Sequestering budget expenditures is the last measure that can be applied if Congress fails to pass a law on spending cuts. Many experts talked about budget sequestration in 2013. To the delight of taxpayers, the government managed to avoid this.
The budget process in Russia
Каждый год правительство формирует Федеральный law that shows how the population will live. Then the budget is signed by the President and enters into force. Fiscal year in this case completely coincides with the calendar one. The main components of the budget are revenues, expenses and their difference. In the Russian Federation, there is a shortage, that is, the expenses of the government are not covered by tax and other revenues. If 50 billion is income, and expenses are 150, then it means that the country needs somewhere to find those insufficient 100. Deficit is a balancing item. You can put there any amount you want, but that’s why there’s no extra money in the state. If there are no resources to finance certain projects, then this is simply a deception of the population. Moreover, this state of affairs creates a precedent for uncontrolled disposal of funds: one article can be reduced by 10%, another - by 50, the third - completely removed. Is it possible to say in this case that the budget is executed? Nevertheless, this is often the case in Russia.
Deficit coverage
If there is not enough money, then it is logical to have them somewhere.to occupy. It is clear that later they will have to be given with interest, but here the crisis situation comes to the fore, and not the dreams of good prospects. The sources to cover the deficit include borrowing from individuals and legal entities, as well as international organizations and other countries. The problem with the latter is that their loans are often associated with political influence on the internal situation in the country with a shortage of funds.
Кроме того, государство может выпускать bonds that are purchased by individuals and legal entities. But it is important to understand that all the same, sooner or later, money will have to be given away, therefore budget expenditures should be connected not with populist slogans, but with really promising industries with high returns.
Functional classification
Для того чтобы не приходилось в дальнейшем to sequester the budget, it is important from the outset to correctly establish the costs of certain industries. Functional characteristic shows where money is spent. For example, it can be used to find out how much money was spent on the implementation of management, defense, health care and education. Moreover, this characteristic is the same for all subjects of the Russian Federation. Further, all expenses and revenues are reduced to a consolidated budget. In the most general form, it consists of three parts: the content of ministries and other administrative bodies, interaction with the territories, the implementation of certain development programs. As for transfers, they do not have a target orientation. Total costs per subject of the federation are considered according to the norms. This means that in some regions a multiplying factor may be applied (for example, the North).
Sequestering budget 2014
The consequence of a constant shortage isthe increasing year after year the need to cut spending and find new ways to finance it. At the end of 2013, the Minister of Finance of the Russian Federation announced the need to reduce budget allocations. He stressed that the sequestering of the budget for 2014 is not provided. Anton Siluanov assured that this is not a cut in expenses, but a choice of priorities that meet the requirements of the time. The increase in the deficit of 400 billion rubles makes it impossible to allocate funds for the development of Transbaikalia and the Far East, as well as the development of the infrastructure necessary for the World Cup, which will be held after 4 years in the Russian Federation. Therefore, according to the minister, you need to change priorities and send money to more promising industries. For 2014, revenues are planned at 13.4 trillion.
Тем не менее новый бюджет вызвал очень много critics Most call for redistributing funds sequestrated. Experts believe that a much more correct step is always the expansion of the revenue side, rather than close control over waste.
