1.4. The role of the budget in socio-economic processes, its essence and functions
The emergence of the budget is associated with the emergence and formation of a state that uses it as the main instrument for ensuring both its own activities and the most important element of socio-economic policy.
In Art. 6 of the US Budget Code Budget is defined as a form of formation and spending of funds intended for financial support of tasks and functions of the state and local self-government.
In material and material embodiment - a fund of funds, according to the planning form - a financial document, made up in the form of a balance of income and expenditure.The essence of the budget, like that of any other economic category, is manifested in functions: first-distributive, and second-control.
Due to the first concentration of funds at the disposal of the state and their use to meet national needs. This happens through redistribution of financial resources between different subdivisions of social production (industries, territories, etc.), levels of government, social strata. The boundaries of the distribution function are very wide, since the participants in the reproduction process come into the budget relations almost.
The second function - the control function - allows you to find out how the proportions in the allocation of budget funds actually form, whether they are effectively used. It signals deviations in the movement of budget funds, reflects economic processes occurring in the structural links of the economy, thanks to which it is possible to predict the socio-economic consequences of fiscal policy.
To implement the functions of the budget, the state develops a budget mechanism , which is a combination of forms of budgetary relations organization, methods of mobilizing and using the resources of a national fund.
The budget mechanism includes itself:
o the country's budget system;
o administrative bodies;
o legal grounds in the form of laws and regulations of the country's highest governing bodies;
o a system of documentation and reporting and other requisites necessary for a particular activity for the execution of revenue and expenditure parts of the budget.
Depending on the economic content of different groups of budgetary relations, three 315011a are distinguished in the structure of the budget mechanism:
o mechanism for mobilizing funds in the country's budget system;
o mechanism for spending budget funds;
o mechanism of inter-budgetary distribution and redistribution of financial resources.
Depending on the features of managing budgetary relations, the following blocks are allocated in the budget mechanism:
o budget planning;
o budget forecasting;
o budget control, etc.
Budget planning - a component of financial planning that allows you to determine the amount, sources and target use of budgetary resources at each level of government: federal, regional, municipal.
Budget forecasting - is a reasonable assumption based on real calculations about the directions of budget development, its possible incomes and expenditures, the budget planning base.
Budget control - a component of the state financial control, through which the verification of the formation and use of budgetary funds is provided.
The budgetary mechanism is influenced by the country's budget structure1.
The functioning of the state budget takes place through special economic forms reflecting the individual stages of the redistribution of value, revenues and budget expenditures. These economic categories will be covered in the relevant sections of the book.
The budget plays an important economic, social and political role in the reproduction process, is an instrument for influencing the development of the economy and social sphere, acting as an accelerator (and sometimes a brake) of the socio-economic development of society. It is the main financial plan of the country, approved by the Federal Assembly of the United States as a law. Through it, the means of enterprises of various forms of ownership are mobilized and part of the population's incomes. They are directed to finance the economy, socio-cultural activities, strengthening the country's defense capacity, maintaining state administration, creating state material and financial reserves, financial support for the budgets of the subjects of the federation, repaying and servicing the public debt.
In a market economy, the state budget retains its important role, but at the same time the methods of its influence on social production and the sphere of social relations change. The budget is widely used for interbranch and territorial redistribution of financial resources, taking into account the requirements of the most rational allocation of productive forces, the rise of the economy and culture throughout the United States. Funds of the state budget, first of all, should be directed to finance the structural reorganization of the economy, the implementation of complex targeted programs, the building of scientific and technological potential, social development and social protection of the population.
The state budget influences the size of private savings, the definition of the structure of incomes of enterprises and real incomes of the population.