Extrabudgetary funds: the need and feasibility

Extrabudgetary funds are one of the ways of using state-wide capital investments and solve the economic tasks of raising and developing production, overcoming crisis situations, instability and temporary stagnation. They play an important role in the country's economy along with the existing social and pension funds, RF health funds and others.

The national economy is one of the main types of production. Its basic industries in the current market economy require modernization and expansion of basic production assets, replacement of worn out and obsolete machinery. Light industry needs a revival, agriculture - in development and further support. And these are not all the tasks facing the economy of the state. Because of the financial crisis, the inflation rate, the budget deficit, and the country's external and internal debt are growing. For these reasons, the people, and especially the unprotected strata of the population, are at risk of a decline in the standard of living. All this creates the need for a large amount of financing and concentration of funds at the state level.

Extrabudgetary funds are an effective solution for a number of factors in the parallel distribution of finance, in addition to state and local territorial budgets. The use of such funds is expressed in the need to redistribute financial resources in the context of their limitations and the financial crisis of the country's economy. To do this, it is important to conduct a detailed analysis to identify the most problematic areas of development and redistribute the targeted use of financial resources.

The dynamics of economic change requires professionalism in management and prompt decision-making regarding the redistribution of finance. Unlike budgetary funds, the use of which is controlled by legislative bodies (parliament), the spending of extra-budgetary funds is controlled by central, republican or local governments, which allows for a more rapid and efficient redistribution of funds and helps to speed up the response to the economic situation in the country, especially In part of the deficit of the state budget.

Extrabudgetary funds are not only designed to regroup the financial resources coming from enterprises and institutions. Also, these organizations can find additional sources of cash in such a way as to cover the excess of the expenditure side over the revenue side. Sources of financing of off-budget funds can be both permanent and temporary, be distinct in some administrative-territorial units from others and be determined by the scale and nature of the implementation of tasks during the crisis.

Classification of extrabudgetary funds. Today, you can find many options for dividing these organizations, depending on the parameters considered. So, for their purpose, funds are divided into economic and social extra-budgetary funds. On the level of management - on state and regional funds.

Using the help of these funds, you can:

1) to influence the production process by financing, lending and subsidizing enterprises;

2) contribute to the improvement of environmental protection measures at the expense of special sources and fines from pollution of the environment;

3) maintain the standard of living of the population through the payment of pensions, subsidies, allowances and so on;

4) provide both domestic and foreign loans to foreign countries.

Within the framework of the law, off-budget funds are exempted from state and customs duties, as well as from taxes. Part of the funds from them can be directed to the founding activity, and some - to invest in securities.

According to the world statistics, the number of such funds in Western countries ranges from 30 to 80.