Regional budget - the financial basis of the work of regional authorities
The financial basis of local authoritiesis the regional budget. The property and monetary rights granted to these bodies allow you to draw up, review, approve and, of course, execute your budget.
The regional budget is the main channelbringing to the citizens the final result of production. It is with the help of this source that the social product is redistributed between the layers of the population and the administrative-territorial units. In addition to the above, this type of budget provides financing for such important industries as the food industry, utilities and other budget organizations. This, in a way, is a tool for improving the well-being of citizens.
From the economic point of view, the regional budget should perform such functions:
- to form monetary funds involved in the financial support of the functioning of local authorities;
- distribute these funds among the leading branches of the economy;
- control the financial and economic activities of subordinate organizations, institutions and enterprises.
Formation of the regional budget is carried outrelevant authorities and consists of the implementation of certain stages related to its compilation, approval and execution. The main components of this budget, as well as any other, are the revenue and expenditure parts.
The basis of the revenue part is differentreceipts to the budget. In the tax revenues, the largest share is taken by the land tax. This type of tax is an economic tool in achieving high efficiency of land use. Also, the land tax serves as a source of reimbursement of the expenditure part of the local budget for the development and development of new territories.
The regional budget should be reinforcedfixed sources of income. These sources should contribute to the increase of payments, as the budgetary expenditures are characterized by a tendency to a constant increase. Therefore, in the budget of any region, an important role should be assigned to regulatory sources, which are funds coming from top-level budgets.
The number of regulatory revenues includes:
- percentage deductions from tax revenues of the top-level budgets;
- subsidies and subventions from higher budgets.
The role of regulatory revenues isthe provision of monetary resources of regional authorities, and this source of income serves to increase the interest of local authorities in raising funds to the higher-level budget.
Often, regional budget expenditures exceedincome. In this case, from the deficit, the budget can save only subsidies or subventions from the higher-level budget. However, these sources do not have incentive qualities and favor the development of a sense of dependency among the regions.
The regional budget can not exist withoutits expenditure, the main direction of which is the financing of such socio-cultural institutions as health and public education, as well as other budget organizations. At the same time, the structure of the budgets of different regions differs among themselves. If in the regional, city and regional budgets the expenditures on social and cultural activities make up almost half of all expenditures, then in village, rural and district budgets - up to 86%.
With the growth of large cities and settlementsincreases the cost per inhabitant. And this is one of the important indicators of expenditures of regional budgets. Also, we should not forget about the growing needs of residents of small towns and villages in the municipal sector.