Budgetary policy of the state

Budgetary policy is part of the financial policy pursued by the state. It determines the principles of organization of relations in the field of finance in the formation of budget revenues, the implementation of their expenditures, and the conduct of intergovernmental fiscal relations. This policy affects the proportions and amounts of financial resources that are centralized by the state, determines the structure of expenditures and the prospects for using budgetary funds for the development of the country's economy.

The budgetary policy of the state regulates all relations in the field of finance that occur between enterprises and the state through the implementation of tax charges, investment policy, planning of budget expenditures in respect of priority sectors of activity.

The state has a purposeful impact on the economy, changing the scope and structure of government spending, taxation and state property, which are the tools by which budget policy is implemented. Its main parameters are reflected in the budget and act as a tool for managing state finances.

The objectives of fiscal policy for the fiscal year are spelled out in the Budget Message of the President to the Federal Assembly.

Budgetary policy is a strategic direction that determines the prospects for the formation and subsequent use of finance in order to solve the main problems of the economy. Therefore, three main directions of this policy are singled out:

1. The allocative component. It means the need to adjust the market mechanism for regulating financial resources in the economy in order to increase market efficiency. For example, when collecting taxes, the state can limit the production of goods unclaimed on the foreign market and promote the production of such goods that have great merits.
2. Distribution component. It consists in changing the results of income distribution. Example: a budget policy to collect taxes from the working population helps to pay benefits and pensions disabled.
3. Stabilizing component. Determines the impact on the macroeconomic balance, determined by the size of taxes, budget expenditures, the amount of public debt and the overall state of the credit system.

It should be noted that the accounting policy of the budgetary organization plays a special role in the organization of budgetary accounting. At the enterprise, it is determined through the chart of accounts and the existing requirements for the organization of budgetary accounting in this area.

Budget accounting (as opposed to a commercial organization) is much more complicated. At the same time, the level of control over the use of budget funds is much higher. What will the accounting policy give in this case? Allows you to consolidate existing methods of accounting, which apply from year to year.

The structure of the accounting policy includes organizational, methodological sections and applications with a working chart of accounts, a schedule of workflow and a list of un-unified forms created by the organization independently.