1. SOCIAL AND ECONOMIC ESSENCE OF THE STATE BUDGET: WORLD(GLOBAL) PRACTICE
1.1. Concept and essence of the state budget
The state budget — a conducting(leading) part of a financial system and the basic financial category. The budget unites the basic financial categories (taxes, the state credit, the State expenditure) in their action: through the budget constant mobilization of resources and their expenditure [16, c. 112] are carried out.
The budget is the important part of a financial system of the country. Reflecting the maintenance(contents) of processes of manufacture and distribution of a public product and the national income, the budget represents the economic form of formation(education) and use of the basic centralized fund of money resources of the state.
The state budget represents the basic financial plan of the state for the current year valid for the law. Affirms a legislature of authority — parliaments.
Under the material maintenance(contents) the state budget — represents the form of formation(education) and use of the centralized fund of money resources of the state, and on social and economic essence — the basic instrument of redistribution of the national income [15, c. 78].
In the budget the part of monetary profitable enterprises and the population is annually centralized. The accumulated means are distributed(allocated) and used on financing of expenses on realization of functions of the state. Due to budgetary funds nation-wide needs(requirements) are satisfied, separate fields of activity – defense, management, protection of a social order and safety of the state, fundamental sciences are financed, etc. Except for that due to the budget collective needs(requirements) are satisfied also by financing expenses for formation(education), public health services culture and art.
The budget – a complex(difficult) economic category. As the economic category, the state budget represents system of the economic attitudes(relations) developing in a society during formation, distribution and use of the centralized monetary fund of the country intended for satisfaction of public needs(requirements). Differently ¾ the state budget ¾ these are the monetary attitudes(relations) arising at the state with physical and legal persons in connection with creation of the centralized finance, and also with distribution and redistribution of the national income intended for financing of a national economy, welfare actions and establishments, governments, strengthenings of defensibility of the country, etc. [15, c. 80].
The financial attitudes(relations) developing at the state with the enterprises, the organizations, establishments and the population refer to budgetary. Specificity of these attitudes(relations) as a component of financial attitudes(relations), it is expressed that they, first, arise in a phase of distribution of a social production, and, in the second, are directed on formation, distribution and use of the centralized financial resources.
Objective character is inherent in budgetary attitudes(relations). It is caused by that in hands of the state the part of the national income necessary for maintenance of expanded reproduction in scales of a society constantly should concentrate, satisfactions of economic and welfare needs(requirements) of citizens, coverings of public costs of management, increase of defensibility of the country. Budgetary attitudes(relations) are integrally connected to functioning the state, but at the same time these attitudes(relations) are an element of basis, instead of a superstructure. Budgetary attitudes(relations) ¾ it is a part of economic structure of a society; their functioning is predetermined by that the material — financial base is objectively necessary for realization by the state of his(its) functions. During reproduction budgetary attitudes(relations) receive the material — material form corresponding to them: they are substantiated in the budgetary fund of the country including the state budget and local budgets.
Acting as the central part in the general(common) system of state regulation of economy, the budget as the category reflects interests of concrete classes and layers of the population as on it(him) the seal social and economic policy lays. In this sense budgetary attitudes(relations) represent the certain philosophy and ideology of social development.
Being a part of financial attitudes(relations), the state budget as the category is characterized by the same features which are inherent in the finance as a whole, but during too time has the features distinguishing it(him) from other spheres and parts of financial attitudes(relations).
Thus, as the special part of cost distribution the state budget carries out specific public purpose(assignment) – serves satisfaction of nation-wide needs(requirements). Being the economic form of existence of objective distributive attitudes(relations), carrying out specific public purpose(assignment), the state budget represents itself as an economic category.
As to the certain set of financial attitudes(relations) the same features which distinguish a category of the finance as a whole are inherent in the state budget, first of all: budgetary attitudes(relations) have distributive character, are carried out always in the monetary form, accompanied by formation and use of target monetary funds. At the same time the certain specificity which, however, is not beyond the general(common) with the finance of features [15, c. 81] is inherent in budgetary attitudes(relations).
The state budget, as well as any other economic category, expresses relations of production and has a material — material embodiment corresponding to them: budgetary attitudes(relations) are materialized (substantiated) in the centralized fund of money resources of the state – in budgetary fund. As a result of it the real economic (distributive) processes occuring in a society, receive the expression in streams мобилизуемых and money resources used by the state. The budgetary fund is objectively caused economic form of movement of that part of a public product and the national income which has passed known stages of cost distribution and has acted(arrived) to the state for satisfaction of needs(requirements) on the expanded reproduction, welfare service of the population, defense and management. Formation and use of budgetary fund express process of movement of cost in connection with its(her) distribution and redistribution.
The state budget of modern foreign countries carries out the following basic functions: redistribution of the national income; state regulation and stimulation of economy; financial maintenance of social policy; the control over formation(education) and use of the centralized fund of money resources.
Now in conducting(leading) foreign countries there was a nationalization of a large share of the national income. Through all parts of a financial system it is nowadays redistributed up to 50 – 60 % of national income which has sharply increased on absolute size, and through the state budget – up to 40 %. Such redistribution is carried out for the benefit of monopolies and in interests of wide layers of the population.
Using the budget, the state brings radical changes in the proportions developing at stages of manufacture and an initial distribution of the national income.
The great value belongs also to social function of the budget. The state budget became a large source of means for reproduction of a labour. In process of scientific and technical progress reproduction of a labour all in the greater degree depends on charges on formation(education), public health services, social insurance and maintenance.
In all foreign countries significant growth of social expenses and increase of their share in GNP and the national income are observed. So, densities of social charges in budgets of the West-European countries has increased on the average from 18 % in the middle of 50th years up to 20 % in the middle of 60th and 30-35 % in 80 — 90th years. In modern conditions the increasing value is given to the human factor as to the basic driving force of development of a social production, as causes growth of social expenses [4, c. 145].
Charges of the state budget of the countries with the advanced market economy are subdivided into the following five groups: militarians; intervention in economy; the social purposes; the maintenance(contents) of machinery of state of management; granting of grants and credits to less developed countries.
The basic in the state budget charges on militarism, intervention in economy and on the social purposes [4, c. 147].
1. On military charges in conducting(leading) foreign countries it is necessary from 20 up to 35 % of a total sum of charges of the state budget. They are subdivided into direct and indirect military charges.
Direct military charges are reflected in military budgets — отграниченной parts of the state budget. They include expenses for manufacture of the newest offensive strategic armaments, the maintenance(contents) and training of staff of armed forces, scientific researches of military character, the maintenance(contents) of militaristic blocks (NATO). Direct military charges sharply grow during wars and in conditions of militarization of economy.
The part of the percent(interests) paid on a public debt, the contribution and reparation, pension concern to indirect military charges and grants(manuals) to invalids of war and families of victims, and also military charges which pass under clauses(articles) of civil departments. Charges on a public debt have reached(achieved) in industrially advanced western countries of large sizes.
2. Quickly growing group of the State expenditure are expenses on intervention in economy. In modern conditions purposeful influence of the state budget on process of reproduction, development of productive forces has amplified. The State expenditure render huge stimulating influence on development of a national economy. After the Second world war «economic miracle» in the Western Germany, Japan, and later in South Korea, on Taiwan and in other countries has taken place at the big financial support of the states.
Expenses for research and developmental development (research and development), for an economic and social infrastructure, support of an agriculture, the state branches of economy concern to charges on intervention in economy, maintenance of employment in separate branches of a facilities(an economy) and regions of the country, on stimulation of export.
The special place in these charges is borrowed(occupied) with expenses for research and development. These charges provide from 50 up to 70 % of all expenses for scientific researches whereas the share of the public funds directed on research and development before the Second world war, did not exceed 10-15 %.
The state capital investments have considerably increased. Grants to private concerns have raised(increased), is especial in so-called areas of development to which areas with a high rate of unemployment and the slowed down economic growth (for example, Scotland and Northern Ireland in the Great Britain, Sicily in Italy) concern. In some countries grants for employment are given out to businessmen on again accepted workers. With a view of structural reorganization of economy to separate industries there is a selective help as the state grants or preferential bank credits with the governmental guarantee.
Significant resources from the state budget are given an agriculture. It is one of the most sponsored and priority branches in foreign countries. Grants are given out to an agriculture of two kinds: on maintenance of support prices of agricultural production and on the industrial purposes — purchase of agricultural machines, mineral fertilizers, construction of warehouse. Grants for maintenance of support prices have major importance. It is important to note, that in the countries of the European Union (EU) support of an agriculture is carried out not only on national, but also at an interstate level.
The active help appears also to export firms, that considerably facilitates their position in conditions of sharp competitive struggle in the world markets.
The state intervention in economy not only stimulates rather high rates of economic growth, but also softens its(her) cyclic fluctuations. Application of wide system of regulating measures including with the help of public finances, has allowed to prevent the deep economic crisises similar to crisis 1929 – 1933.
Densities of charges of the state budgets on intervention in economy has increased from 15-17 % in the middle 50 up to 20 % in the middle of 60 and 22-25 % in 80-90-Õ years [4, c. 149].
3. Expenses for the social purposes include charges on formation(education), public health services, social insurance and social security. They pass under numerous social programs. In the USA it is totaled about such 100 programs, in the Great Britain — some tens. Among social charges the greatest means go on social insurance, social security, formation(education). It is necessary to mean, that expenses for social insurance are appreciably financed due to workers.
In foreign countries on full state financing there are only elementary schools, other kinds of formation(education) have the mixed sources of financing. Insufficient means are allocated for public health services. In the USA the overwhelming part of the population receives medical aid by medical insurance by payment of insurance payments. The state help to needy citizens in this country is carried out(spent) under program «Медикейр» financed from the federal budget, and under program «Медикэйд» financed by the federal government and staffs(states). In the Great Britain, France, Germany exists public service of public health services, i.e. all kinds of medical aid appear free-of-charge.
4. Charges on the maintenance(contents) of machinery of state of management include charges of bodies of legislative and executive authority, court, Office of Public Prosecutor, police, the various ministries and departments. In the separate countries — the Great Britain, Belgium, Japan — from the state budget means for the maintenance(contents) of royal family, in Japan — families of emperor are allocated. As a whole charges on machinery of state borrow(occupy) 4-5 % of a total sum of charges of the budget.
5. The greatest grants and credits to less developed countries from the state budget are allocated with the USA. Besides economic forces this help is defined(determined) by political grounds. She(it) includes as crediting on favourable terms sales to the foreign states of the weapon, and the gratuitous military help in the form of grants to less developed countries. The military help the USA to less developed countries exceeds assignments for the economic and social purposes.
1.2. The budgetary device and budgetary system foreign unitary and federative states
The budgetary device represents organizational principles of construction of budgetary system, its(her) structure, interrelation of budgets united in it(her). The budgetary system is a set of all budgets working in territory of the country [16, c. 115].
The budgetary device is defined(determined) by a state system. In the unitary (uniform) states the budgetary system includes two links: the state budget and numerous local budgets. In federative states the budgetary system will consist of three parts: the state budget (the federal budget or the budget of the central government), budgets of members of federation (staffs(states) — in the USA, the grounds (ландов) — in Germany, provinces — in Canada) and local budgets.
It is necessary to note, that in the unitary states local budgets the incomes and charges are not included into the state budget, in federative states — are not included in budgets of members of federation, incomes and which charges are not included into the federal budget [10, c. 97].
At the first stages of development of the bourgeois state the budgetary system of some the countries was characterized by dependence of the state budget on the local finance. With amplification(strengthening) of the central authority value of the state budget began to grow. After the Second world war process of centralization of budgetary system both in federal, and in the unitary states has sharply amplified, that has caused substantial growth of volume of the state budget and change of a parity(ratio) between separate parts of budgetary system.
Concentration in the state budget of large money resources — a necessary condition of realization of an effective financial policy(politics) of the state. It allows the government to make huge charges on militarization, the maintenance(contents) of machinery of state of management, to pay percent(interests) under the state loans and to repay a public debt, and also to carry out the increased social charges. Centralization of resources enables to carry out maneuvering by means, to direct them on the priority purposes, on financing of priority directions of an economic and social infrastructure and stimulates economic growth.
As a result of outstripping rates of growth of incomes of the federal budget the USA, the state budget of the Great Britain and other advanced countries in comparison with rates of growth of incomes of local budgets densities of the state budget in total amount of resources of budgetary system has essentially increased. The largest incomes go to the state budget: surtax from the population, the profit tax of corporations, excises, the value-added tax (in the USA the value-added tax is not applied), the customs, and also incomes of the state loans which are let out(are released) by the central government. Under charges other tendency – increase in densities in a total sum of charges of budgetary system of local budgets on which the government shifts a significant part of expenses for development of an economic and social infrastructure, and also a part of charges on reproduction of the qualified labour, on the contrary, is observed.
Local budgets, as well as the budget of the central government, are used for intervention in process of reproduction. Local self-management carry out those functions of the state which are more expedient for carrying out on places, instead of from the center.
The system of local budgets also is defined(determined) by a state system (the federal or unitary state) and corresponding administrative division. In 1960-1970 in all western countries, there was a process of integration of local administrative units and, hence, amplifications(strengthenings) of centralization of the local finance.
Incomes of local budgets are formed, as a rule, from minor, basically of property taxes. In these budgets separate excises and gathering act also. Besides taxes local authorities receive incomes of the municipal property as the rent from houses, incomes of water supply, other municipal services, and also various administrative gathering and local tax licenses.
Incomes of budgets of members of federation also are formed basically due to taxes. In the USA in budgets of staffs(states) prevail indirect taxes, most important of which — the tax to sales and total proceeds. In budgets of the grounds Germany the main place belongs to direct taxes. Among them, the surtax, the profit tax of corporations are allocated for property, the tax from the inheritance. Members of federation resort also to release of loans that entails increase in their debts.
Mutual relations of separate parts of budgetary system in the various countries have the features. For example, in the Great Britain local authorities receive on financing of the operational expenditure significant means from the Consolidated fund in the form of grants and target grants and from National fund of loans — credits for financing of capital expenses. Credits have long-term character and are given from market percent(interest) and in strictly limited sizes. In Japan communication(connection) of the state budget with local is carried out only by delivery of grants. Besides the state entrusts to local authorities a part of charges of strictly special-purpose designation (for example, construction of ports, liquidation of consequences of acts of nature, construction of hydroelectric power stations, etc.) . In France local authorities receive from the state budget of means as grants and grants. In the USA basically the one-way traffic of means from a higher budgetary link in subordinate takes place. From the federal budget of means act in budgets of staffs(states) and local budgets mainly as grants and target субвенций.
One of forms of financial communications(connections) between the central government and local authorities in the USA — blocks and programs of division of the incomes, received development in first half 70th. Blocks are the federal grants given to staffs(states) and local authorities with the broad audience of functions for use in area determined by the law (public health services, maintenance of employment, housing construction, etc.). As against субвенций within the limits of one of the specified spheres addressees of blocks have the right to spend them independently.
The program of division of incomes has defined(determined) a principle of division of powers between the central government and authorities of staffs(states) in sphere of the finance, based on domination of federation. Financial rights of federation were усилены. In Germany the federal budget is directly connected to budgets of the grounds to which means are listed(transferred) in the form of grants and субвенций. The last transfer the corresponding sums to communities. Feature of formation of resources of budgetary system of Germany will be, that receipts from surtax share between the federal budget, budgets of the grounds and communities, and from taxes to corporations — between the federal budget and budgets of the grounds at a rate of 50 % to each budget.
1.3. Features of budgetary process in the advanced foreign countries
The major component of financial planning — the budgetary planning subordinated to requirements of a financial policy(politics) of the state. His(its) economic essence will consist in the centralized distribution and redistribution of a total internal product (gross national product) and the national income between parts of a financial system on the basis of national social and economic development of the country during drawing up and execution(performance) of budgets of a different level.
Budgetary planning includes budgetary process as the order of drawing up and execution(performance) of the budget, his(its) нормативно-legal and organizational basis, and also questions of the theory and methodology of drawing up of the budget of the country. Bases of budgetary planning are defined(determined) by the constitution and laws of the country.
Thus, budgetary process — activity of authorities regulated by the legislation on drawing up, consideration, the statement and execution(performance) central and local budgets (in federative states also budgets of members of federation). His(its) maintenance(contents) is defined(determined) by the state and budgetary device of the country, the budgetary rights of corresponding bodies and legal persons.
Budgetary process includes four stages of budgetary activity: 1) drawing up of the project of the budget; 2) consideration and the statement of the budget; 3) execution(performance) of the budget; 4) drawing up of the report on execution(performance) of the budget and his(its) statement [16, c. 118].
It is necessary to notice also, that though in the various countries duration of stages is various, but for the majority of them all process lasts more than three years.
Drawing up of the project of the budget — one of the important stages of budgetary process: here solve such questions, as volume of the budget, tax and a monetary and credit policy for forthcoming year, the basic directions of use of means and methods of a covering of budgetary deficiency, and also distribution of incomes between parts of budgetary system.
Work on drawing up of the project of the state budget begins long before the beginning of new fiscal year: in Germany — for six months, in Japan — for seven, in France — for 14, in the USA — for 18 months [7, c. 201]. The project of the budget is developed by enforcement authorities, as a rule, the Ministry of Finance (exchequer), and in the USA — special body — Service of management and the budget at the president.
In a number of the countries drawing up of the budget begins with performances(statements) of the chief executive on problems of the general(common) directions of a social and economic policy(politics) for forthcoming year. For example, in the USA the president addresses to American people with the Budgetary message in which the primary goals of a financial — monetary policy(politics) are formed, the governmental estimation of incomes and charges of the federal budget in forthcoming budgetary year and the next four years.
At drawing up of the project of the budget the following purposes are put: active his(its) influence on increase of efficiency of economy; maintenance of a coordination of financial and other resources with economic and social programs — forecasts of the government; an establishment of necessary proportions and priorities in an expenditure of means; research of sources for a covering of deficiency of the budget.
In some advanced countries (USA) the budgetary calendar — the plan of distribution on time of movement of budgetary process operates. Though in practice this calendar is poorly executed.
Prior to the beginning of drawing up of the project of the budget (or the special body in the USA) directs the Ministry of Finance directions for heads of the ministries and the state departments with the offer to present calculations of estimates of charges and possible(probable) incomes to the certain term. In one countries he(it) informs the general(common) estimated figures (or recommendations) possible(probable) assignments (France) which form a basis of budgetary Applications (inquiries) and estimates as a whole, in others — the state departments send budgetary applications independently.
During drawing up of the budget there is a long exchange of data, offers, estimations between the head of the state, the Ministry of Finance (or special body), ministers and other chapters(heads) of the state departments. The decision of questions at issue sometimes demands intervention of the head of the state. At decision-making on the budget prospects of economic development, a degree of inflation, an occupation level, number using are taken into account by social support. The coordinated budgetary decisions are accepted in view of the data executed before the voted budget, including the budget of the current year. Then the Ministry of Finance (special body) starts to develop budgetary parameters and other budgetary documents.
By development of the project of the budget for forthcoming year, and in many advanced countries on long prospect (four — five years) use various methods of calculation of incomes and charges which have undergone significant changes in the historical plan. With expansion of scales of mobilization of resources and necessity of their most effective use began to apply all over again in the USA (since 1960th years), and then and in other countries a программно-target method, including the system analysis, economic models, электронно-computer facilities.
After approval by the maximum(supreme) agency (the cabinet, the chancellor in Germany, the president in the USA), the project of the budget acts in a legislature — parliament for consideration and statements of it(him). As a rule, the project of the budget is discussed by each chamber separately (all over again in bottom, and then in top — in France, or simultaneously in both chambers — in the USA, Germany). In each chamber of parliament special committees and the commissions which prosecuted concrete budgetary subjects, frequently under programs function. They in details analyze corresponding clauses(articles) of the project of the budget, bring corrective amendments and draw the conclusion with an explanatory note.
After acceptance of the budget by each chamber at absence of disagreements between them the common decision of parliament about the budget is born(taken out). If disagreements have arisen, the conciliatory commission consisting of representatives of two chambers should remove(take off) them.
By consideration of the project of the budget in parliament great value the budgetary initiative has, i.e. the right of members of parliament to make changes in the project of the budget submitted by the government. In some countries (France, the Great Britain, etc.) the members of parliament which are not being members of the government, have no rights to make offers on increase in the stipulated charges or an establishment of new taxes. Such rule expands opportunities of the government to influence quickly varying economic situation in the country. In the USA budgetary rights of the Congress are much wider. Restrictions of the budgetary rights of parliament are shown and that the legislature accepts not the budget as the uniform document as a whole (USA), and annual decisions about budgetary purposes(assignments), giving powers to the president to spend means for definite purposes, but establishing the top ceiling. Some clauses(articles) of the budget are not considered(examined) at all, and affirm automatically.
The second stage of budgetary process comes to an end acceptance of the law on the budget as a whole or the statement of separate budgetary purposes(assignments) under clauses(articles) (programs) — the president in the USA, queen — in the Great Britain.
Execution(Performance) of the budget means reception of the authorized incomes, basically of taxes, and realization of the stipulated budgetary charges according to the allocated assignments. This stage proceeds within one year which refers to financial, or fiscal year. His(its) time borders in the different countries are various.
The important element of this stage of budgetary process — cash execution(performance) of the budget, i.e. the organization of gathering of budgetary funds in territory of the country, their storage and delivery, and also conducting the account and the reporting. In the majority of the countries there is a bank system of cash execution(performance) of the budget at which banks, basically the central bank, are the main cashier of the state. In a basis of cash execution(performance) of the budget — a principle of unity of cash department: all budgetary funds act on the uniform account of the Ministry of Finance (exchequer) in the central bank from which all charges of the state are carried out.
In a number of the advanced countries the rule of the sequestration which assumes the right of the government to reduce proportionally clauses(articles) of the charge of the accepted budget during time which has stayed up to the end of the current year operates. So, in the USA the sequestration is applied to the certain programs and entered at possible(probable) excess of the established limit of charges. Acceptance of the law by the congress about the sequestration is stipulated by the certain conditions.
Drawing up of the report on execution(performance) of the budget by the Ministry of Finance and the statement his(its) parliament — last stage of budgetary process beginning after the termination(ending) of fiscal year.
2. FEATURES OF THE STATE BUDGETS OF FOREIGN COUNTRIES ON THE EXAMPLE THE USA
2.1. A general characteristic of the state budget the USA
According to a state system the USA the budget shares on three levels: federal, staffs(states) and local authorities. Each of budgetary levels is provided with own sources of receipts, however in a different degree. If the federal budget is entirely provided with federal taxes and other receipts (including the state loans) budgets of lower levels receive the significant sums of the help from budgets of higher levels [17, c. 180].
The approximate parity(ratio) of charges of the federal budget and cumulative charges of all staffs(states) and the local authorities of the country taken together, made to the beginning of XXI century of 60-63 % against 37 – 40 %. Each of levels of authority collects own taxes. Some from them meet (under the name) on two or even at all three levels, however thus the order of their gathering and the rate ordinarily strongly differ for each of levels. At each level there is a basic source of receipts — the «basic» tax which gives the greatest income to the corresponding budget.
The state budget has appeared from the moment of formation(education) the USA, however his(its) device for the period of existence of the country repeatedly and considerably varied. In the beginning the sizes of the budget were, to today’s measures, are extremely insignificant and did not fall outside the limits several percent(interests) of a total product. The collecting of taxes was especially low in the first years of existence the USA. The sizes of the State expenditure sharply increased during scale military actions or in connection with other force majeure with which termination(discontinuance) charges, as a rule, again decreased up to usual norm of those times [14, c. 241].
Since 30th of XX century the state budget the USA turns to one of the main tools of state regulation of economy. The budget carries out this role through account and profitable parts. Regulation of economy appears not less important, than an initial problem(task) — the maintenance(contents) and service of machinery of state. Besides function of redistribution of incomes — social and territorial has appeared.
Leaging role in the budgetary mechanism the USA the Budgetary bureau (since 1970 – plays since 1921 Administrative — budgetary management) which has been created according to the Law accepted in the same year on the budget and the reporting. Into functions of the given bureau enter function – through designing of the budget to supervise a level of the state administration managerial control in federal authorities, including search of ways and ways of perfection of system. By development of budgetary project АБУ basically develops ideas of a budgetary — tax policy which to it(him) are represented by the president the USA. Management accepts direct participation and in development of these ideas, the Main lines of the future budgetary policy(politics) the president plans with the conducting(leading) advisers on economic problems. To number of them concern minister financial chairman of Economic advice(council) at the president. The precise mechanism of acceptance of economic decisions top-level helps to create the proved economic strategy which budgetary component is developed АБУ. And though the success of functioning of this mechanism in much depends on the person of the president who is taking place at authority at present legislative bases of this mechanism force the head of the state to consider reasons АБУ always. It creates a guarantee for administration from fulfilment of large mistakes in a budgetary policy(politics) and helps to overcome arising difficulties.
The Ministry of Finance the USA, besides participation in development of a budgetary and financial policy(politics), is engaged in execution(performance) of the federal budget. It is the main task of his(its) operative activity. Largest of divisions of the Ministry of Finance — the Service of internal incomes numbering 70-80 thousand of employees (more than half of officials of the ministry), conducts gathering federal taxes. The ministry executes also an account part of the budget: provides financing federal charges on positions and in the sizes authorized by the Congress after entering into the project submitted by the president of the budget of amendments and additions. Money to the departments responsible for an expenditure of means under corresponding clauses(articles) of the budget, can be given out by checks or cash. Besides the Ministry of Finance (—exchequer) makes his(its) other name service of a public debt the USA, releases a part of a monetary cash (fine paper denominations and coins) and carries out some other operations, вмененные to it(him) the constitution and the law.
The statement of the federal budget in the Congress begins with work above the project of the document in committees and subcommittees in the beginning of February of each year and comes to the end by September (fiscal year begins on October, 1). Above the project of the budget working hours of the Congress is devoted to work up to Уд all. Discussion is conducted in both chambers. Discussion and the statement of tax bills passes on special to procedure. The control over execution(performance) of the budget carries out the Main контрольно-finance administration (ГКФУ) formally belonging to квазинезависимым to departments, however considered as » a supervising hand of the Congress ».
The operating procedure above budgets of staffs(states) is not unified, as well as the date started of financial (budgetary) year in each staff(state), but in many respects this order reminds federal procedure. Even easier the operating procedure with budgets in local authorities, however and there obligatory observance of the procedures determined by the law is necessary.
To the primary factors which have influenced character, structure of the American budgetary system, its(her) qualitative features, concern constitutional build the USA and ideas which have underlain the federal constitution, amendments to it(her) and its(her) subsequent interpretation. In interpretation of the constitution judicial authorities the USA actually are engaged, passing of this or that decision on on a regular basis arising actions of proceeding in connection with budgetary questions (it is especial frequently they concern problems of taxes and about their payment) [16, c. 185].
In the text of the Constitution the USA specifically budgetary (as well as many only economic) categories practically are absent. There the general laws of the Congress connected to the federal taxation and loans, regulation of trade with other states and between staffs(states) (section 8 of clause(article) 1) are mentioned only. Besides section 9 of clause(article) 1 contains an interdiction on introduction подушных and other direct taxes, This condition has formed partly funny (because of unusual interpretation of direct taxes), however very important distinctive feature of the American tax system and has played a huge role in its(her) development, is especial prior to the beginning of XX century.
Same clause(article) of the constitution contains one of basic conditions of legal character, определявших a budgetary policy(politics) the USA at all times: federal means can be spent only on the basis of the powers authorized by the law for an expenditure of means. In other words, without the permission of the American Congress any official or department have no right to spend cent from the federal budget. The no-purpose expenditure of means is punished quickly and rigidly: it is enough to tell, that to one of the real reasons of preparation of impeachment for president R.Nixon began his(its) aspiration excessively to interpret broadly the right of the president to dispose already released(already let off) (and authorized by the Congress) means of the federal budget. In the same section of the constitution compulsion is fixed to publish all data on public revenues and charges of a federal level.
At the same time, despite of scarcity of the positions directly regulating actually budgetary policy(politics) of the American federation, the constitution contains many conditions, outlining frameworks of economic behaviour of the state. They share on two categories:
the positions limiting economic and budgetary rights of subjects of federation: staffs(states) cannot conclude the international contracts or enter the unions, mint a coin and let out(release) paper money, enter the customs;
transfer of the rights of the federal congress: the right to establish and raise taxes and other gathering with the purpose « to pay debts, to provide joint defense and general prosperity of the United States », to take money on credit, etc. [16, c. 188].
Besides the listed «economic» positions the federal constitution establishes some powers of the Congress the USA which actually outline the majority of the basic spheres of the federal budgetary interests working till now. The same powers define(determine) the basic directions of modern budgetary regulation in the American economy. Creation of post services and post ways concern to them, assistance to development of a science and useful crafts, establishment of courts is lower than a level of the Supreme court, declaration of war, formation of armed forces and internal militia. Thus, the constitution outlines a circle of the rights of the federal authorities and establishes the list of interdictions on actions of staffs(states). However powers of federation are delegated to it(her) by staffs(states) which nominally remain primary cells of the American statehood: a part of powers staffs(states) delegated «upwards» — federations, other part — «downwards», to local self-managements.
2.2. Features of interbudgetary attitudes(relations)
The Constitution the USA does not mention the budgetary rights and the device of budgets of local authorities, and it became logical display of a principle of an accessory(a belonging) of a legal fundamental principle (including on budgetary problems) to jurisdiction of staffs(states). For the same reason there are no acts of federation by the rights and duties of local self-managements: staffs(states) of such assignment(order) to the federal authorities never allowed, and other way to receive these rights for the center does not exist. Powers, including budgetary, receive local authorities from staffs(states) in which constitutions, much more detailed in comparison with federal, are detailed both the budgetary device, and budgetary attitudes(relations) of staffs(states) with local self-managements, and rights of the last.
The structure of budgets of each of levels of authority and the order of their interaction which refers to as » interbudgetary attitudes(relations) » is connected to these features, or, in literal value of the official American term, by » intergovernmental attitudes(relations) ». For imperous — and, hence, budgetary — rights in the USA there is a continuous struggle between the center, aspiring to expand the powers, and staffs(states) which try to keep the positions and interfere with expansion of the rights of the center. Struggle goes with variable success, but in the whole a bowl of weights is slowly declined nevertheless for the benefit of federation. Besides it is not always favourable to staffs(states) to expand the budgetary rights due to reduction of the rights of the center — even because together with the rights to them passes also the responsibility for using them.
All modern system of state regulation of economy in the USA arose in conflicts around of the budgetary — tax rights of various levels of authority. At origin and primary formation of principles of economic regulation special activity was shown by judicial authority. Today the centre of gravity has moved to a plane «congress — government». To understand essence of struggle, we will address to some positions of the budgetary — tax theory and to their evolution during a history of the American state.
Theoretical positions of the budget as two-uniform (incomes — charges) or, for federative states, triune (including interbudgetary attitudes(relations)) forms of the major direction of the state activity are rather weak. The tax theory though also her(it) it is impossible to count completed is most developed. The roll aside taxes speaks that chronologically the first has arisen the tax theory which in the beginning considered(examined) also questions of charges. Besides creation of account plans always was psychologically less difficult, than a substantiation and gathering of necessary tax revenues.
For last 200 years taxes have been less subject to changes, than an account part of the budget and the more so appeared only rather recently budgetary (i.e. доходно-account) the federalism based on interbudgetary attitudes(relations). Significant difficulties create also extensiveness and complexity of each of components. They prevent successful synthesis of theories of each unit in the uniform budgetary theory as also budgetary federalism it is accepted to divide, in turn, on «account» and «profitable» — or as speak, «budgetary» and «tax» though the analysis of these parts separately does not transfer essence of federalism is more often, and use of a word «budgetary» as a synonym of a word «account» is at least inexact [12, c. 5].
If to address not to a technical designation of the budget as estimates of incomes and charges, and to socially significant definition in the Anglo-American literature more often it is reduced to that is the form or a way of formation(education) and an expenditure of money resources for service of the state needs. Lack of such definition consists in his(its) limitation the organizational — accounting party(side) of an affair and isolation from the economic — legal and social parties(sides) of budgetary activity of the state. However it is necessary to take into account, that the mention of all aspects of the budget would complicate his(its) formulation. Besides substantially this lack is filled with more exact (but also various) the definitions concerning to taxes, a tax policy, etc.
During the last 15 – 20 years wide circulation in the economic literature have received «liberal» (or «неолиберальные») concepts of economic development according to which efficiency of the State expenditure and their influence on a facilities(an economy) of the country are inversely proportional to a share of gross national product, перераспределяемой through the state budget. It is supposed, that the the most part of economy is given to the order to » market forces of self-regulation », the results of managing are more successful.
Requirements of all-round minimization of an economic role of the state do not contain in one of works of economists — классиков. Thus it is important, that necessity of the State expenditure — so, and taxation for their financing — in classical works to doubt is not exposed, though undesirability of excessive state requisitions for subjects of market system is frequently emphasized. As a whole the approach классиков to this problem differs strongly pronounced pragmatical character.
In the modern American economic literature taxes are defined(determined) as « the main tool social and economic policy » [18, c. 214]. As taxes only give means for the subsequent State expenditure, this formula is distributed, naturally, and on the budget. In the American practice the accent(stress) is done(made) for an active role of the tax (hence, and on перераспределительную function of the budget) which admits as the lever of influence on a policy(politics) and economy the country.
The various countries, depending on the maintenance(contents) of a budgetary policy(politics) and from a share of their budget in gross national product, it is accepted to carry either to «liberal», or to «socially focused». To the first model rank, for example, France and the USA, as the second — Austria, Germany, Sweden, etc. The Modern Russian budget developing while in a «liberal» direction, puts much narrower problems(tasks), than the budget the USA, social and stimulating which components are very high, though the share of the Russian budget in gross national product exceeds American more likely.
Special research of comparative efficiency of functioning of economy in the countries with use of the various budgetary models, lead(carried out) Брукингским institute in the USA, has shown absence of direct and distinct(clear) communication(connection) between rates of economic growth and a share of gross national product, перераспределяемой through budgetary channels. On the contrary, significant dependence of rates of economic development on quality of an expenditure of budgetary funds and on skill to carry out the put tax problems(tasks) has been established.
2.3. Structure of the federal budget the USA
2.3.1. Charges of the budget
Before to consider structure of charges, we shall note two important features of formation of an account part of the budget the USA. One consists that official budgetary documents are made in three cuts(sections): departmental (charges by each of budgetary establishments), functional (charges on maintenance of each of budgetary functions of the state) and program (charges under programs for maintenance of performance of the basic budgetary problems(tasks)). The second feature of budgetary — account procedure in the USA — the statement of charges the congress on each of clauses(articles) in three stages. In the beginning the Congress should approve the program on which financing means are requested, and this approval (statement) automatically becomes the sanction to financing, or « powers on an expenditure of means », according to the constitutional position. It also becomes the main document of the congress on the basis of which it is possible to allocate and spend money for specific goals [16, c. 187]. In the document — sanction legislators allocate «assignments» — as a rule, all estimated cost of the program irrespective of duration of its(her) realization is defined(determined). And only on the basis of the authorized assignments every year the Congress defines(determines) and asserts(approves) the sums of » charges of the budget » on each of programs is and there is «alive» money which the Ministry of Finance has the right to give out in the designated terms to corresponding department or other addressee. The small part of annual charges affirms the congress under a little bit other circuit. As a whole трехэтапное the statement of the spent sums helps to supervise use of budgetary funds much more effectively.
By the example of charges of the federal budget the USA it is easily possible to track distinctions in understanding of «necessary» functions of the budget. If to take for a basis the data on one of recently executed federal budgets the USA and to outline the list of charges «strictly necessary» for the state (including charges of federal legislative and judicial bodies, the presidential device, the Ministries of Defence, internal affairs, justices, the finance, a department of state and still several establishments), appears, that, for example, in 1995 фин. They have made 48 % of all actually spent means of the federal budget.
But if from this list to clean(remove) charges on service of a public debt (not the most necessary as loans could be avoided), the excessive sums of charges on the military purposes (as actually on defense the USA it is required means much less actually ассигнуемых) and some other fine clauses(articles), appears, that the federal budget would be equal approximately 20 % of his(its) actual size this year, or 4 % of gross national product (instead of usual 19 – 21 %).
However all similar calculations — only hypothetical, and any most «liberal» government not begins to adhere in a reality of principles of financing of the activity so self-destructive for him(it): outside «absolutely necessary» remain charges on development of an agriculture, on stimulation of economy, on a science, formation(education), public health services, regulation of labour attitudes(relations), ecology and on all social payments. These charges of the second group have no direct attitude(relation) to the maintenance(contents) of state machinery. However they have been, first, directly stipulated, as shown above, the text of the American constitution; second, the budget is not only the market tool, but also has huge public value, and from this point of view all listed clauses(articles) also are necessary and justified (Appendix A).
2.3.2. Incomes of the budget
Source of the basic incomes for budgets of all levels are tax revenues. Kinds of raised taxes, their rates, total sums of tax gathering are distributed(allocated) between three levels so that optimum to provide needs(requirements) of the country and economy, and also citizens without excessive tax burden for physical persons and subjects of managing. One kinds of taxes are raised in the USA at all three levels, others — at one or two levels of authority. On each of levels individual surtaxes, taxes are raised from profits of corporations, taxes and payments in funds of social insurance, taxes to the inheritance and donation, excises, for example. The assessed sum, size of tax rates, the order of collection are defined(determined) at each level. Not all from the listed taxes are established in each staff(state) and self-management.
On each of levels the structure of incomes possesses essential distinctions. In 80 – 90th of XX century the basic part of receipts in the federal budget allowed surtaxes — individual (44 – 47 % of the general(common) receipts) and from corporations (9-12 %), and also taxes and payments in funds of social insurance (35 – 37 %). About 9 % the custom charges acting only in federal treasury, and some other taxes allowed. In the beginning of the current decade the structure of taxes has changed (Appendix В) a little.
Only in staffs(states) and local authorities taxes are raised from retail, the tax to the movable and immovable property. Budgets of staffs(states) as a whole on the country are formed first of all due to taxes to sales – at the end of XX century they made 29 % of receipts of this level, individual surtaxes – 17 %, taxes from corporations – 5 %, other receipts – 16 %; from property taxes to staffs(states) acts only about 1 % of the general(common) taxes. At the same time more than 20 % of cumulative receipts in budgets of staffs(states) allowed the sums of financial support from the federal budget, and about 1,5 % – from budgets of local authorities [14, c. 198].
In structure of cumulative receipts in local budgets on the average on the country up to 29 % incomes of taxes to the property, 6 % – taxes to sale, and only 2,3 % — surtaxes from physical persons and corporations allowed. Up to third of general(common) receipts local budgets receive from the governments of staffs(states) and about 6 % – from the federal government (in comparison with 1970 – 1980 the share of last source is appreciablly reduced) [19, c. 342].
Sharply differs from a federal level as well structure of charges in regional and local budgets. The basic charges in staffs(states) and local self-managements in aggregate go on formation(education) (up to 35 % of the general(common) charges), on various grants(manuals) (13 %, basically through budgets of staffs(states)), on public health services and transport (approximately on 9 %), system of public safety (8 %). Besides budgets of these levels finance public sanitary, preservation of the environment, housing construction and a municipal services (the last basically through local budgets).
The federal help goes first of all on financing of charges on formation(education), public health services and the social help, and she(it) goes first of all, as a rule, to the most backward and requiring areas. Grants and grants are distributed(allocated) non-uniformly and carry a программно-special-purpose character. The federal help to authorities of staffs(states) passes on 13 of 19 basic items of expenditure (categories).
The three-level budgetary system formed in the USA represents the complex(difficult) mechanism, sharp changes in which can break the established balance of incomes and charges and threaten with occurrence of economic and social problems of a different degree of depth and an acuteness(a witticism). At the same time each of levels of developed system of budgetary federalism which can be considered well working, continues to develop and demands the further perfection.
The USA concern to lacks of budgetary system its(her) excessive complicatedness, non-uniformity of distribution of incomes and the help to rich and poor territories.
2.3.3. Budgetary deficiency and a public debt
Within almost 30 years since 1969 of one of the most significant problems of national economy in the USA chronic deficiency (negative balance) the federal budget, resulting(bringing) to escalating a public debt which by the end of XX century has reached(achieved) 5,6 трлн dollar was considered, that for that moment has made more than 60 % of gross national product of the country. Though such volume of the debt, in opinion of the majority of economists, did not bear(carry) direct danger to the American economy, it(he) held down economic development, for example, reducing opportunities of use by private(individual) businessmen of a home market of capitals. Annual payments of percent(interests) on a public debt have exceeded 15 % of an account part of the budget, and it in addition burdened the state financial system.
The problem(task) to liquidate deficiency and to reduce the sizes of a public debt was put consistently by many administrations, but only at president U.Clinton she(it) has been solved also the federal budget began профицитным — due to harmonious and skilful actions of budgetary and economic «command(team)», and also as a result of long and stable economic growth. However owing to the begun recession, because of increase in military charges at administration Dzh. The Буша-junior the federal budget again became scarce. In 2001 фин. The negative balance of the federal budget has made more than 126 billion dollars. Returning to positive balance of the budget depends on the general(common) condition of economy and economic policy the USA the nearest years. The public debt, as against the federal debt, includes also cumulative deficiency of budgets of staffs(states). However within last decades these budgets as a whole were reduced, as a rule, with small proficiency and consequently the USA rendered almost imperceptible influence on a condition of a public debt.
2.3.4. System of tax privileges and преференций
Very big role in budgetary — tax practice the USA play the tax privileges given by the federal government. Last years their cumulative size resulted in potential cost of charges, which would be required for achievement of the same effect (or the half-received incomes), made 12 – 14 % of gross national product. It – one of the major and flexible tools of tax regulation.
Tax privileges and advantages mean partial either full tax exemption or performance of requirements of the tax laws on the facilitated conditions for the certain categories of physical or legal persons. Privileges can be established by kinds of activity, on branches and kinds of manufacture, by trades, on the sizes of incomes, on terms, etc. They are given by the law of the same level by what the basic tax is established. The purposes of granting of tax privileges and преференций are diverse: Redistribution or alignment of incomes (for example, clearing of a part of taxes of the poorest layers of the population), stimulation of manufacture of the certain goods or carrying out of scientific researches, stimulation of export or import of the certain goods, encouragement of the certain activity (for example, charities), encouragement of processes socially useful and necessary for the state (for example, discounts and deductions from the taxable sum of those means which the tax bearer spends on formation(education)), etc.
In some cases tax privileges can replace direct budgetary charges on the same purposes. They can carry the «dot» address, but – selective character. Therefore under condition of the control over them privileges can possess the greater economic efficiency in comparison with charges of the equal sums on the same purposes.
In budgetary practice the USA and some other countries tax privileges refer to as » tax charges », i.e. costs which it is conscious and under the law the tax system bears(carries), receiving less than the certain receipts in the name of achievement of economic state economic or social purposes. The sizes and structure of privileges periodically vary. Sometimes tax privileges are considered(examined) as more effective measure, than direct costs from the taxes collected to the full. In particular, for this reason in the USA during all 29 years at the end of XX century when the federal budget was reduced with the big deficiency, the total sum of the given tax privileges of a federal level annually exceeded the sizes of budgetary deficiencies in 2 and more times [17, c. 191].
The mechanism of action of privileges is combined, their advantages can be unequal from the point of view of final effect. At absence of the due control the system of privileges can turn to system of enrichment of separate branches, corporations or physical persons.
In conclusion of work it is possible to draw the following conclusions. During research the object in view of work is achieved – the analysis of the state budget and the budgetary device is lead(carried out) by the example of foreign countries, the formulated problems(tasks) of course work are solved: it is investigated social and economic essence of the state budget in view of world(global) experience; features of the state budgets of foreign countries are revealed by the example of one of economically advanced countries.
The state budget, being the basic financial plan of the state, the main means of accumulation of financial assets, gives political authority a real opportunity of realization of imperous powers, gives the state real economic and political authority. On the one hand, the budget, being only a complex of the documents developed by one branch of authority and confirmed another, carries out rather utilitarian function – fixes the style of realization of management elected by the state the country. The budget in relation to economic policy carried out by authority is a derivative product, it(he) completely depends on the elected variant of development of a society and an independent role does not play.
However the budget, showing the sizes of financial resources necessary for the state and really available reserves, defines(determines) a tax climate of the country, the budget, fixing concrete directions of an expenditure of means, a percentage parity(ratio) of charges on branches and territories, is concrete expression of economic policy of the state. Through the budget there is a redistribution of the national income and an internal total product. The budget acts as the tool of regulation and stimulation of economy, investment activity, increase of a production efficiency, through the budget social policy is carried out.
Thus, the budget, uniting in itself the basic financial categories (taxes, the state credit, the State expenditure), is a conducting(leading) part of a financial system of any state and plays both important economic, and a political role in any modern society.
The state budget the USA represents historically developed steady mechanism of formation(education) and an expenditure of budgetary funds for service of the state needs. His(its) division into three levels – federal, staffs(states) and local authorities – corresponds(meets) to the device of the government and allows to satisfy more effectively the state and public needs(requirements) for financing, and also to influence economic processes in the country. Effective budgetary process is helped by well developed constitutional and legislative basis of the budgetary device.
2. Successful realization of budgetary procedure is promoted to a great extent by its(her) general stability based on precise and detailed division of the rights and duties of the maximum(supreme) officials and the state bodies, participating in budgetary regulation.
3. The existing structure of incomes, charges and tax privileges of the federal budget, the order of the statement of items in the budget allow to characterize the federal budget as the budgetary system based on the pragmatic approach to revealing of the basic state needs and to their financing.
4. The condition of the federal budget in separate years and the historical periods is appreciably defined(determined) economic, internal and foreign policy of administration.
5. The USA can be considered as common faults of budgetary system some complicatedness of its(her) structure, non-uniformity of distribution of budgetary incomes and the help from budgets of highest levels as the lowest. Often censures are caused with excessive complexity of procedure of gathering of tax revenues.
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Charges of the federal budget the USA on the basic functions of the governmental activity in 2001 фин. (billion dollars)1
Kind of activity
to a result
National defense, all
The international problems
The general(common) problems of a science, space and technics(technical equipment)
Natural resources and environment
Local and regional development
Formation(Education) and vocational training
Public health services
The program of health services «Медикейр»
Maintenance of incomes of the population
Payments and services to veterans
Departure of justice
The general(common) charges on the governmental management
Payment of percent(interests) on a public debt
Everything, including not mentioned positions
Incomes of the federal budget the USA on the basic sources in 2001 financial year1
Source of the income
Actual receipts (billion dollars)
to a result
Taxes to incomes of corporations
Taxes and payments for the purposes of social insurance
Taxes to the inheritance and donation