Sequencing a budget is a cost reduction

снижение затрат. Sequestration is, in a nutshell, a cost reduction. It is conditioned by objective circumstances. As a rule, this concept is used in the financial sphere. In certain situations, a "cutback" of the expenditure part of the state's money supply is required. When there are prerequisites for a significant deficit in all directions, cost reductions are made.

Sequencing the budget - what is it?

The current economic situation in Russia (and indeed in the whole world) can not be called stable. Any state may have unforeseen financial problems, for the solution of which it will be necessary to deviate from the planned state policy. In such situations, an involuntary measure is used - sequestration of the budget. позволяет искусственно устранить дефицит средств в стране. This makes it possible to artificially eliminate the shortage of funds in the country. Reducing the cost is a specific amount. The cut is proportionate in all respects. It is worth mentioning that one of the reasons for the deficit is the excess of the expenditure part over the income one. Meanwhile, in practice, various circumstances may arise that necessitate the sequestration of the budget. , в частности, ошибки при расчете и формировании бюджета, непредвиденные факторы (форс-мажор). This , in particular, errors in the calculation and formation of the budget, unforeseen factors (force majeure). In addition, the need to cut costs can be caused by political conflicts, wars, increased corruption in the state apparatus, large-scale disasters, and so on.

Features of cost reduction

As was said above, sequestering the budget is a proportional reduction of the expenditure items. It should be noted that this measure does not apply to the so-called "protected" areas of financing. They include, in particular, the sphere of health care, social protection, etc. These articles can not be reviewed and reduced.

Responsible actors

Statutory acts specify the structures authorized to sequester the budget. : These are :

1. The Ministry of Finance.
2. Head of the MO financial structure.
3. Government.
4. Executive institutions of regional power.
5. Local government.

For each of these subjects, the conditions under which they can sequester the budget are established. : These are :

1. For the Ministry of Finance and the head of the municipal financial body - a decrease in the volume of incoming revenues when the plan is implemented, which leads to incomplete financing of the treasury (up to 5%). These structures independently introduce a special regime.
2. For territorial, regional bodies, as well as the Government - the reduction of income by 5-10%. They also have the right to independently carry out sequestration of the budget. сокращение осуществляется по всем объектам, которые входят в адресную инвестиционную программу. This reduction is carried out for all objects that are part of the targeted investment program.
3. For executive structures - increase of expenses up to 10%. The specified subjects send variants of the decision of a question to the Government and additional explanations to the law "About the budget". The State Duma should convene an extraordinary meeting and within 25 days, adopt a resolution on the financial plan in three readings.

The normative act adopted by the deputies is sent to the Federation Council. The decision is considered within 2 weeks. If the act is rejected, the financial plan is coordinated with the BC.

Example

In 2014, the Novosibirsk region budget was sequestered. The adjustment of the plan was approved on April 29. During the discussions, the Legislative Assembly decided to stop financing PLP (industrial and logistics park) for 400 million rubles. At the same time, the deputies proposed numerous amendments, the implementation of which required about 4 billion rubles. As a result of the discussions, amendments were made to the regional law on the budget for 2014, as well as planned 2015-2016. The adjustment included three key tasks. The first was to reflect the target resources in the budget indicators, the second concerned additional costs, the third - the settlement of the current creditor debt from 2013. Its amount was more than 7 billion rubles. This debt was formed due to the non-performance of income articles on income tax and excise on alcohol-containing goods.

Other meanings of the term

The word "sequestrum" is used in various fields of activity. For example, in jurisprudence, this term refers to the compulsory or voluntary transfer of material values to the trustee. The latter, in turn, is required to keep the property until the resolution of the dispute about its owner. The sequestration may be judicial or contractual. In the latter case, the parties draw up an agreement in which they designate the conditions for the transfer of the thing to a third party. The contract imposes certain obligations on the intermediary. In particular, he must keep the thing properly and return it after making a decision on the property right dispute. The return is made to the subject for whom it will be installed. The relations of participants in such disputes are regulated by Article 926 of the Civil Code, and also by the Federal Law No. 229.