Cash execution of the budget

Main article: Budget of Russia

The peculiarity of the treasury system is that under it the budget is executed not by the Central Bank, but by the executive authorities. With the transition to this system, the functions of the bank are limited, but it retains a number of important powers, including cash execution of the budget.

Cash execution of the state budget means a set of operations related to receiving funds to the budget and their issuance, as well as taking into account the availability of funds that are made during the execution of the budget. All related payments and settlements are made by the Central Bank, its institutions and authorized credit institutions.

The functions of the Central Bank institutions include:

• acceptance and crediting of funds that go into budget revenues;
• distribution of income between federal and regional budgets, deductions from income to local budgets;
• as well as the issuance of budget funds within the amounts available in the relevant accounts.

Banking institutions keep records of budget revenues and expenditures. On this basis, they compile reports on cash execution of the budget, which are sent to a higher organization and state financial authorities. The institutions of the Central Bank carry out settlement and cash services of budgetary organizations, they exercise control when issuing budget and extrabudgetary funds.

To take into account the income received by the state budget, as well as distributed between budgets of different levels, personal accounts are opened in the institutions of the Central Bank. Such accounts are created separately for each payment type for each financial authority and each institution that administers the revenue type.

Payments to the budget are credited as follows. If this or that type of income is fully received by the federal budget or the budget of that subject of the federation, was collected on the territory, then it is credited by the institutions of the Central Bank to the corresponding budget at the place of receipt. If the income is to be credited to the budget of another region or provides for contributions to local budgets, then it is transferred to other institutions of the Central Bank. To distribute the income received between the budgets of different levels, the Central Bank institutions draw up a statement of the distribution of income. Such statements shall be prepared for each financial authority based on the data of the respective personal accounts.

Funds are issued to budgetary organizations in accordance with the classification of expenses, as well as the scheme of the monthly report of the Central Bank on cash execution of the budget and registration of authority to dispose of budget accounts. The transfer of funds from one budget account of the organization to another cannot be made, except for some specially specified cases (for example, due to incorrect expenses).

Managers of budget funds open separate accounts in the institutions of the Central Bank: for the expenses of the institution itself and for the transfer of funds to subordinate organizations, as well as for centralized measures carried out by the manager for these organizations. Funds are transferred to the current accounts of subordinate organizations on the instructions of the managers.

2021: Budget execution in Russia turned out to be the best in 5 years - Accounts Chamber

The execution of the budget in Russia at the end of 2021 turned out to be the best in 5 years. This was announced in mid-June 2022 by the head. Accounts Chamber of the Russian Federation Alexey Kudrin According to him, the unfulfilled balance of funds amounted to 645 billion rubles against 1 trillion rubles in 2020.

I want to remind you that last year it was a trillion. 645 billion is the remaining resources, as a rule, these are already contracted things that are moving to the next year. There is somewhere that did not even have time to contract. Nevertheless, there is a positive trend in reducing such unused balances, "Kudrin said at a meeting with Russian President Vladimir Putin (quoted by TASS).

Budget execution in Russia turned out to be the best in 5 years - Accounts Chamber

During the report, he also said that "the government for the first time in five years fulfilled the budget by 97.5% (the highest percentage of expenditure execution)." However, in the execution of the budget, violations of 676 billion rubles were found, most of which were corrected during the audit, Kudrin said. According to him, the main shortcomings are the registration of property, built buildings.

It drags on, it happens, for months and even years, and we celebrate these things. The operation of buildings that have not yet been registered begins - this is a very frequent remark, - said Kudrin.

According to him, in 2021, the Accounts Chamber revealed violations worth 1.5 trillion rubles. As Kudrin notes, these are mainly violations related to accounting, misuse, violation of procurement procedures.

On June 7, 2022, Vladimir Putin announced the start of work on the federal budget for the next three years. The head of state called the construction of budgetary rules in this direction a fundamental issue, which should "not only ensure the stability of public finances, but also contribute to an increase in the growth rate of the Russian economy."^[1]

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