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THE STATE BUDGET IS THE LEADING LINK OF THE FINANCIAL SYSTEM OF THE STATE
Olimjonov Asilbek Ulugbek o'g'li, Master degree student Nazarova Rano Rustamovna, Doctor of Economics, Professor
Uzbekistan, Tashkent State University of Economics
ARTICLE INFO
Received 7 February 2017 Accepted 15 February 2017 Published 10 March 2017
KEYWORDS
the state budget,
the budget process,
fiscal policy,
financial system,
taxes,
deficit,
surplus.
ABSTRACT
Leading, decisive role in the formation and development of the economic structure of any modern society plays a government regulation, carried out within the framework of the chosen economic policy authority. One of the most important mechanisms that allow the state to carry out economic and social regulation, is a financial mechanism - the financial system of a society, the main element of which is the state budget. By means of a financial system the state forms centralized and influences forming of the decentralized funds of a money, providing a possibility of accomplishment of the functions assigned to state bodies.
© 2017 The Authors.
In forming and development of economic and social structure of society an important role is played by the state regulation performed within the policy determined at each historical stage of development. One of the tools allowing the state to perform economic and social policy to perform the functions and tasks is the government budget.
Being economical form of existence of real, objective distribution relations, performing a specific social purpose - to meet the needs of society and its state-territorial structure, the budget can be considered as a separate economic category. Among its features are:
- state budget is a special economic form of redistributive relations associated with the isolation of the national income in the hands of the republic and its use to meet the needs of society and some of its state-territorial formations;
- with the help of the budget there is a redistribution of the national income;
- proportions of the budget redistribution of cost are determined by requirements of expanded reproduction in general and the tasks facing society at each historical stage of its development;
- the area of the budget distribution takes the central place as a part of public finances that is caused by a key provision of the budget in comparison with other links.
The essence of the state budget as an economic category is realized through its functions: distribution (through the state budget is redistributed from 20 to 60% of national income); control (cost flows reported on the financial status of the economy and allows its control); and regulatory (changes in revenues and expenditures of the state budget allows you to soften the fall in production, to reduce the unemployment rate, inflation rate, etc., ie, to stabilize the economy).
The state budget is a financial plan for the state for the current year. It estimates of revenues and expenditures of the state, agreed with each other, both in volume and in terms of income and use. State budget belongs to the central place in the public finance system.
The structure of the budgetary system depends on the government. In unitary states budget system includes two links. Government budget and numerous budgets.
Local budgets in unitary states their income and expenses are not included in the state budget.
In federal states the budget system consists of 3 units: 1) the state budget, or the federal budget or the budget of the central government; 2) budgets of members of the federation (states in the USA, provinces in Canada, cantons in Switzerland and others.); 3) local budgets.
The state budget, as well as any balance, assumes the alignment of income and expenses. However, as a rule, when making budget projected income and expenditures do not match. The excess of income over expenditure constitutes a budget surplus (or excess), the excess of expenditure over income - the budget deficit (lack of). Typically, the budget deficit expressed as a percentage of GNP (gross national product).
Budget revenues are the money going in a non-paid and irretrievable order in compliance the legislation into the disposal of public authorities of appropriate level.
Classification of income includes the following groups, which consist of items of income, combining specific types of income sources and methods for their preparation: tax income; non-tax
income; non-paid transfers; income of trust budget funds.
State budget revenues are formed by:
1. taxes, duties, fees and other mandatory payments established by the legislation;
2. revenues from the placement, lending and sales of state of financial and other assets;
3. funds that have fallen to the state by right of inheritance, donation, in accordance with the law;
4. non-paid cash receipts from legal entities and physical persons, and also foreign states;
5. repayments of budgetary loans issued to legal residents litsam- foreign countries;
6. other income not prohibited by legislation.
The state budget expenditures - is the economic relations arising in connection with the distribution of the fund of funds of the state and its use on branch, target and territorial appointment.
State budget expenditures are carried out within the approved budget in the form of:
1. current expenditure of budgetary funds;
2. current budget transfers;
3. capital expenditure on:
- acquisition and reproduction for public use of fixed assets;
- acquisition for public use land and other property abroad;
- acquisition for public use land rights and other intangible assets;
- creation of state reserves;
4. budget transfers to legal entities on capital expenditure;
5. budget advances to legal persons - residents and foreign states;
6. the budgetary subsidies and budget loans state trust funds;
7. payment for paying and servicing the public debt;
8. other expenses that are not prohibited by the legislation.
Fiscal policy of the state as part of the fiscal policy is oriented mainly to achieve a balanced budget, balanced on government revenues and expenditures throughout the budget period.
The strategic objective of the budgetary policy of the state is the desired effect of public finances on the mechanisms of developing a market economy and its infrastructure, ensuring the restructuring, economic independence and, ultimately, improving the population's welfare.
This fiscal policy should provide optimal formation of state revenue and expenditure, rational combination of the interests of the state and local budgets, the role of which is to constantly increase. At the same time, fiscal policy should aim to increase production and increase its efficiency. The improvement of the budgeting techniques the most important priority is to optimize the structure of budget revenues, which in turn is closely linked to the tax policy of the state.
As the state budget is filled with mainly tax revenues, the policy formation of the state income tax is closely intertwined with politics.
The tax policy of the state is not only connected with the provision of income to the budget, but also with the ongoing structural - intensive policies. Adjusting taxes, tax rates, tax incentives, the state is able to stimulate the development of certain types of production, have an impact on consumption patterns, promote investment and economic development.
Formation of an effective tax system, strengthening stimulating role of taxes and, at the same time, the increase in tax revenues due to the possible:
- adjustment of a number of tax rates, in particular, the income tax rate to decrease, since this type of tax is characterized by weak yet stimulating function;
- identifying tax evaders by improving the tax collection mechanism and development tax services infrastructure;
- increasing the excise tax on gasoline and diesel fuel to the relevant international practice;
- wider use of tax on vehicle registration and payment for the use of various resources.
The main objective of fiscal policy in the conditions of deepening market reforms is as follows:
- to hold national economy from output gap;
- to provide financial stabilization;
- to take urgent measures to strengthen the monetary circulation;
- to stimulate investment activity, seek to increase the share of accumulation in the national income;
- to reduce unproductive costs and excessive bureaucracy;
- to develop regulations, which are aimed at efficient and rational use of budgetary funds.
REFERENCES
1. Budget and Fiscal System: Textbook / Ed. MP Afanasyev. - Moscow: Yurayt, 2010. - 776 p.
2. Vasin, Yu F. Fiscal policy: the problem of public debt of western countries and the global financial and debt crisis / YF Vasin // Financial business. - 2012. - № 5. - S. 12-18.
3. Seleznev, AZ Public debt and external assets: the manual / AZ Seleznev. - Moscow: INFRA-M, 2010. - 282 p.
