Subventions are financial support for budget expenditures

Subventions are some sums of funds that are allocated from the higher-level budget by a decision of the state authority on a non-repayable and irretrievable basis to a lower-level budget. However, these sums of money must be spent for certain purposes.

Grounds for granting subventions

Subventions are provided in the case of insufficient sources of income, regulated and secured, in order to equalize the minimum level of financial security for municipalities and subjects of the Russian Federation. Granting of subventions is carried out according to the accepted decisions of certain management bodies.

There are cases when grants are submitted to municipal entities or budgets of the constituent entities of the Russian Federation, represented by monetary funds, which were allocated to finance specific types of expenditures from the higher-level budget, provided they participate in them.

Subsidies and subventions are financial resources that are subject to return if they are misused or not used at certain times.

Normative documents for granting subventions

The grounds for granting subventions are:

- the relevant legislation;

- decisions of local self-government bodies ;

- various target programs, including federal level.

Legislative acts provide for the allocation of additional funds if there are unplanned expenses for business entities and lower-level budgets. Also, when such costs arise for business entities, the size of subventions is determined by decisions of local government.

The target program for granting a subvention is a set of scientific, technical, organizational or social activities aimed at achieving a specific goal. Such programs, depending on the types of tasks to be addressed first, can be divided into: foreign economic, scientific and technical, production and technical, socio-economic and environmental. Today budgetary subventions are spent mainly on the implementation of foreign economic and socio-economic programs.

Taking into account the level of implementation of targeted programs, they can

- on federal, which pursue the goals of the federal level, subdivided:

- regional, which are aimed at achieving the goals within specific regions of the Russian Federation.

Subvention recipients are legal entities or subordinate budgets. Similar financing can be allocated to citizens.

Subsidies and subventions: similarity and difference

Between subventions and subsidies there is both similarity and difference. Similarity is associated with the targeted use of allocated funding. At the same time, if subventions or subsidies were used for other purposes, they are subject to mandatory return to the budget from which they were received.

The difference between these two concepts is the shared participation of the budget in granting the subsidy.