The local budget deficit is financed through. Sources of financing the local budget deficit. Conditions for municipal service

In the law (decision) on the budget for the next fiscal year by main types of funds raised. Federal budget and state budgets off-budget funds are developed and approved in the form federal laws, the budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds are developed and approved in the form of laws of the constituent entities Russian Federation.

In cases where the regulation of certain relations is provided for by the law on the budget, for local self-government bodies these relations must be regulated by the relevant regulatory legal acts of representative bodies of local government on the budget or acts on the budget adopted in the manner established by the charters of municipalities.

The annual budget is prepared for one financial year, which corresponds to calendar year and lasts from January 1 to December 31.

Sources of deficit financing federal budget are: 1)

In the law (decision) on the budget for the next financial year on the main types of funds raised. The federal budget and the budgets of state extra-budgetary funds are developed and approved in the form of federal laws, the budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds are developed and approved in the form of laws of the constituent entities of the Russian Federation.

The annual budget is prepared for one financial year, which corresponds to the calendar year and lasts from January 1 to December 31.

The sources of financing the federal budget deficit are: 1)

Sources of financing the budget deficit are approved by the legislative (representative) authorities in the law (decision) on the budget for the next financial year for the main types of funds raised. Loans from the Bank of Russia, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, and municipalities during their initial placement cannot be sources of financing the budget deficit.

Sources of financing the federal budget deficit are:

1) internal sources in the following forms:

· loans received by the Russian Federation from credit institutions in the currency of the Russian Federation;

· government loans carried out by issuing valuable papers on behalf of the Russian Federation;

· proceeds from the sale of state-owned property;

· the amount of excess of income over expenses on state reserves and reserves;

· changes in the balances of funds in accounts for the accounting of federal budget funds;

2) external sources in the following forms:

government loans made in foreign currency by issuing securities on behalf of the Russian Federation;

· loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency, attracted by the Russian Federation.

Sources of financing the budget deficit of a constituent entity of the Russian Federation may be internal sources in the following forms:

· government loans carried out by issuing securities on behalf of a constituent entity of the Russian Federation;

· budget loans and budget credits received from budgets of other levels of the budget system of the Russian Federation;

· proceeds from the sale of property owned by the state of a constituent entity of the Russian Federation;

· change in balances of funds in accounts for accounting for budget funds of a constituent entity of the Russian Federation.

Sources of financing the local budget deficit can be internal sources in the following forms:

· municipal loans carried out by issuing municipal securities on behalf of the municipality;

· loans received from credit institutions;

· budget loans and budget credits received from budgets of other levels of the budget system of the Russian Federation;

· proceeds from the sale of municipally owned property;

· change in balances in local budget funds accounts.

The most important condition for financing (covering) budget deficits was government credit. Under government loan refers to the entire set of financial and economic relations in which the state acts as a borrower.

To cover the deficit state budget profits are sent Central Bank Russian Federation and loans from the Central Bank of the Russian Federation.

An external ineffective source of financing the budget deficit were loans from international financial organizations, mainly the International Monetary Fund (IMF).

In order to balance budgets, representative authorities may establish maximum dimensions budget deficit. If the maximum deficit level is exceeded, a spending sequestration mechanism is introduced,

Sequestration consists of a proportional reduction in government spending, for example, by 5, 10, 15%. monthly for all budget items for the remaining financial year.

Governments cover most of the deficit money issue both internal and external borrowing. However, the issue of money leads to inflation, rising prices for goods and services, which leads to a decrease in the living standards of the population.

The source of financing the deficit are loans from the Central Bank of Russia. This is the cheapest source of financing, since business non-market relations are formed between the Central Bank of Russia and the Government of the Russian Federation and interest rates for such loans are usually symbolic in nature.

A further strategy in the field of deficit and surplus management necessitates the development of a new concept based on reducing the involvement of borrowed money, reducing debt obligations, using, first of all, internal reserves for income growth based on the development of industrial and agricultural production

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Sources of funding priority projects municipal formation with a local budget deficit

Financing sources of municipal unit priority projects in the conditions of local government budget deficit

K. N. Patraev

Head of Administration of the Municipal Formation "Vyborg District" Leningrad region 188800, Vyborg, st. Sovetskaya, 12

188800, Vyborg, ul. Sovetskaya, 12

The work provides a brief analysis of the sources of municipal borrowing to cover local budget deficits, and examines recent history and the problems of municipal borrowing in Russia, an attempt is made to determine measures to regulate interbudgetary relations as a guarantee of the sustainability of municipal loans - sources of financing for priority municipal projects.

The article presents a brief analysis of municipal borrowings sources for local budget deficit cover, reviews contemporary history and problems of municipal borrowings in Russia as well as makes an attempt to identify measures for inter-budgetary relationship regulation as municipal borrowings stability guarantee, which are the source for priority municipal projects financing.

Keywords: municipality, municipal economy, municipal budget, municipal bonds, interbudgetary relations

Keywords: municipal unit, municipal economy, municipal budget, municipal bonds, inter-budgetary relationship

Budget revenues of a significant part of the regions, cities and municipalities of the Russian Federation do not provide the required volume financial resources to solve all development problems. This is especially evident in conditions when almost all investment costs are transferred to local budgets while simultaneously reducing the funds remaining at their disposal. The source of development for many municipalities are only transfers, grants, subsidies, subventions, etc. However, the funds received in this way are, as a rule, spent on solving acute problems social problems, and there are no resources for investment. In conditions of centralization of tax and other revenues, a region’s refusal to borrow is tantamount to a refusal of the idea of accelerating economic and social progress. And since the necessary conditions for increasing investment attractiveness region and the prerequisites for the arrival of private capital there are developed infrastructure and high level life of the population, there is an urgent need for cities and municipalities in the influx

borrowed capital, with which you can achieve the required results.

Investment projects of municipalities are divided into two types:

1) not commercial projects, the implementation of which does not involve the receipt of additional income and allows saving budget expenses;

2) commercial projects, as a result of which it is planned to receive additional income, and these incomes can cover part or all of the costs invested in the project.

In this situation, three sources of financing the investment needs of the municipality can be identified:

Funds from the municipal budget (including borrowed funds) and/or higher budgets;

Direct investments and various forms of public-private (municipal) cooperation;

Organizational funds various forms property, if the project can generate income (such as projects in the field of housing and communal services).

On the one hand, the municipality is interested in reducing budget expenditures, shifting, if possible, the burden of infrastructure development to private investors. On the other hand, given that revenues from most infrastructure projects are generated through tariffs, including payments from the population, it is necessary to take into account the social consequences of their increase (as a result of introducing an investment component into them).

It should be noted that the task of choosing a source of financing for the project should not be considered by the municipality as independent, since it is part of common task- preparing a business plan for the project, developing it financial model and financing schemes.

The selection of municipal projects is carried out according to a number of criteria for assessing their effectiveness, primarily based on the results of implementation:

Economic results (for example, investment volume, net present value (NPV), internal rate of return (IRR), profitability (ROI), total profit, average annual profit, profitability);

Impact on the local budget (replenishment of income and reduction of expenses);

Social aspects (jobs, production of socially significant goods or services, housing construction, consequences in the field of ecology, education, culture, impact on the standard of living of the population, etc.);

ECONOMICS AND MANAGEMENT. N 8 (46) 2009

Additional factors (export potential, additional workload of related enterprises, revival of pre-existing industries, development of our own manufacturing industry, deep processing of resources, etc.). When assessing the project implementation process, the following are taken into account:

Time criteria (duration, payback, life cycle project);

Uncertainty and riskiness (level of risk and protection strategy, technical feasibility);

Legal aspects (patent clearance, compliance with environmental and safety standards). When assessing the starting point of the project, pay attention to:

Team of participants (willingness to implement the project, the ability, if necessary, to replenish the team or replace individual members);

Marketing (market capacity, demand trends, price levels, level of competition, competitive advantages).

These criteria are not always used in in full, especially when it comes to social projects. In each specific case, their set is determined by local governments, taking into account goals, objectives, situation and other internal and external factors.

There are different points of view on the positive and negative aspects of municipal borrowing. Thus, H. Zimmerman notes that borrowing “is associated with the “credit illusion” of voters and the desire of politicians at various levels to carry out the desired expenses today, and present the bill for their payment to citizens only tomorrow, possibly after the elections.” Thus, attracting borrowings is considered unfair towards future generations.

Other researchers adhere to the principle “whoever uses it pays,” that is, those generations who use it should pay.

In our opinion, the use of borrowing is justified if the funds raised are used to implement infrastructure projects that cannot be implemented by private businesses. If there are not enough funds for current expenses, it is necessary to reduce their volume, because it is unacceptable to shift the burden of providing for immediate needs onto future generations.

In accordance with the legislation of the Russian Federation, the local budget deficit should not exceed 10% of the approved total annual volume of local budget revenues, excluding the approved volume of gratuitous receipts and (or) revenues tax revenue according to additional deduction standards.

The law identifies possible sources of replenishing the local budget deficit:

The difference between the funds received from the placement of municipal securities and the funds allocated for their repayment;

The difference between loans received and repaid by a municipality from credit institutions;

The difference between budget loans received and repaid by a municipality and provided to the local budget by other budgets budget system Russian Federation;

Changes in account balances for local budget funds during the corresponding financial year;

Proceeds from the sale of shares and other forms of participation in capital owned by the municipality;

Exchange rate difference for local budget funds;

The difference between the funds received from the return of funds provided from the local budget legal entities budget loans, and the amount of budget loans provided from the local budget to legal entities;

The difference between the funds received from the return of budget loans provided from the local budget to other budgets of the budget system of the Russian Federation, and the amount of budget loans provided from the local budget to other budgets of the budget system of the Russian Federation;

Other sources internal financing local budget deficit.

But the municipality’s accounts often do not have a reserve comparable to the amount of financing of the investment project or investment program(address program capital investments) as a collection investment projects. True, proceeds from the sale of property are a one-time source of financing, which cannot be recommended for systematic (annual) covering the deficit, since it is associated with a decrease in the assets of the municipality.

Loans from other levels of the budget system are provided, as a rule, to cover cash gaps for a period of no more than one year and are not used as a source of financing the investment program. In addition, from the point of view of the Ministry of Finance of the Russian Federation, the volume of budget loans provided will gradually decrease, since the market will take over the function of lending to regions and municipalities.

Thus, a municipality that has decided to implement a project and does not count on the region’s help is faced with a choice: to accumulate the required amount of funds or to borrow.

Since the construction of the facility takes time, and the need for it is acute, the municipality decides to borrow the missing funds. Bond loans and loans from credit institutions should be considered as the main source of financing the budget deficit.

SAVTSOVA A.V. - 2009