Working budgeting system: implementation technique. Budgeting concept

Management – This is a purposeful process of influence of a subject on an object to achieve a certain result.

Management in general is a rather complex, multidimensional concept; it can be viewed from the point of view different approaches:

- instrumental approach– as a set of certain tools, methods, techniques of influence;

- process approach– as a specific process;

- functional approach– as a set of functions;

- systematic approach – as systems.

From a more complete point of view, systemic, approach – budget management - This difficult process, representing the unity of the managed and control systems, where the set of financial and budgetary institutions (institutions) acts as the control system (budget management subjects), and the set of budgetary relations acts as the managed system (budget management objects).

IN Lately all over the world, including in Russia, in the sphere of government and municipal government are increasingly using management tools that were borrowed from business (strategic planning, focus on the final result, performance efficiency), in connection with this a new concept has emerged - b budget management

Budget management is a process of managing the formation, distribution and use of state (municipal) resources and optimization of cash flows in the interests of the socio-economic development of individual territories and the country as a whole, as well as improving the quality of life of the population of these territories.

From the perspective of a systematic approach, the content of the budget management system can be presented in a structured manner in the following form(Fig. 4.2.)

I. Subjects of budget management: financial and budgetary institutions (budget management apparatus)

The budget management apparatus consists of large quantity bodies and services, which can be classified according to two main characteristics - by the degree of specialization in managing budgetary relations and by the level of management.

A) General management budgets are carried out:

Federal level(in regions and municipalities, budget management is structured similarly to the federal level)

President of the Russian Federation(speaks with a Budget Message, which reflects the main directions of budget policy (for example, in 2010, the President delivered a Budget Message on June 29, where he outlined increasing the efficiency of budget expenditures as the main priority, and on June 30, the Government approved a Program to improve the efficiency of budget expenditures), signs federal laws, including “On the Federal Budget” (has the right of the “last” signature), issues decrees and orders on financial matters.

Main Control management President of the Russian Federation(under the Administration of the President of the Russian Federation) - is vested with a number of control powers in the budgetary sphere, but cannot independently apply sanctions; it can only issue orders to eliminate financial violations in the budgetary sphere.

Federal Assembly of the Russian Federation(considers and approves draft federal laws in the financial and budgetary sphere; the draft federal budget, as well as a report on its implementation).

Government of the Russian Federation(regulates and controls financial activities ministries and departments, inter-budgetary relations, informs the State Duma on the progress of execution of the federal budget, and also provides the Accounts Chamber with the information necessary for the exercise of its control powers).

Thus, the President of the Russian Federation determines the strategy for managing budgetary relations, has the right of final signature on financial laws, and has control powers. Executive authorities organize work on managing budgets, carry out planning, operational management of budgets and current control. Bodies of representative power exercise parliamentary control when considering and approving budgets and based on the results of its execution. This division of functions in the sphere of managing budgetary powers is projected at the regional and municipal levels.

b) Specialized bodies for managing budgetary relations

Ministry of Finance of the Russian Federation –federal body executive power, ensuring the implementation of a unified financial policy in the state, management of the organization of finances in the country.

The main powers of the Ministry of Finance in the budgetary sphere(Article 165 of the Budget Code of the Russian Federation) :

Develops the main directions of the budget and tax policy of the Russian Federation;

Develops a forecast of key parameters budget system Russian Federation, incl. consolidated budget forecast;

Draws up a draft federal budget and provides methodological guidance in the field of drawing up and executing budgets of the budget system of the Russian Federation;

Responsible for the execution of the federal budget;

Maintains a register of expenditure obligations of the Russian Federation;

Distributes interbudgetary transfers between regions;

Develops budget reporting forms for all budgets, etc.

Federal Treasury - ensures the execution of the federal budget, cash services for the execution of budgets of the budget system of the Russian Federation, carries out preliminary and current control over the conduct of transactions with federal budget funds (Article 166.1 of the Budget Code of the Russian Federation).

From January 1, 2008 (due to the adoption new edition Budget Code of the Russian Federation) Article 215 was excluded from the Budget Code of the Russian Federation, which was called “Treasury Execution of Budgets” (as an alternative to “bank execution of budgets” before the adoption of the Budget Code of the Russian Federation in 2000); instead, a new article appeared - “Fundamentals of Budget Execution”, where The Federal Treasury has secured "cash services for budget execution", i.e. conducting and accounting for operations on cash receipts to the budget and cash payments from the budget (Article 6 of the Budget Code of the Russian Federation), thus, execution of budgets is now provided executive authorities(Government of the Russian Federation, Administration of the Smolensk region or the city of Smolensk) and organized by the relevant financial authorities(Ministry of Finance of the Russian Federation, Departments of Finance of the Smolensk Region and the City of Smolensk), and the Treasury acts not as a manager, but as a cashier, treasurer (however, the Federal Treasury can transfer the functions of a cashier to executive authorities, provided that cash execution is ensured at the expense of the region’s own income).

Federal Service for Financial and Budgetary Supervision(since 2005) – carries out functions of control and supervision in the financial and budgetary sphere, as well as the functions of a currency control authority (Article 166.2 of the Budget Code of the Russian Federation). Her main specialization in the field of budget control is control over the use of federal budget funds, WBF funds, and compliance with the requirements of the budget legislation of the Russian Federation by recipients financial assistance from the federal budget, guarantees of the Government of the Russian Federation, budget loans.

Federal tax service – a federal executive body that exercises control over the correctness of calculation, completeness and timeliness of tax payments to the relevant budget (since taxes play a predominant role in budget revenues, its role is very large).

Federal Customs Service– control over the receipt of customs legislation and the receipt of customs payments to the budget.

Accounts Chamber of the Russian Federation(Article 167.1 of the Budget Code of the Russian Federation) - a permanent independent body financial control, accountable Federal Assembly RF.

The main specialization in the field of budget control is control over the execution of the federal budget and the use of federal property, as well as financial examination of draft federal laws that provide for budget expenditures or affect the formation and execution of the federal budget and extra-budgetary funds.

II. Budget management object: budgetary relations.

III. Control levels: federal, regional, municipal, which from January 1, 2006 was divided into 2 sublevels (in accordance with Federal Law No. 131 of 2003):

– level of municipal districts and urban districts;

Level of urban and rural settlements.

IV. Functional elements of budget management: budget planning and forecasting, operational budget management, budget control

Function– is an external reflection of the internal essence of a phenomenon, i.e. this is the work that a particular category performs.

Forecasting In general, this is exploration of the future

1. Budget forecasting– an informed judgment about the prospects for the possible state of the budget in the future, alternatives for its development and deadlines for implementation.

The purpose of forecasting is justification of the prerequisites for the adoption of certain management decisions on the formation and execution of the budget for the medium or long term.

Budget forecasting methods:

2 groups of methods

1. Formalized methods(mathematical)

Modeling;

Correlation and regression analysis.

2. Methods expert assessments (more subjective, less formalized)

Problems in the field of budget forecasting. The criteria for the quality of forecasts are their accuracy and the presence of systematic deviation. In foreign practice, 2 types of forecasting are common - conservative and optimistic. With conservative forecasting, incomes are deliberately underestimated; with optimistic forecasting, government revenues are unjustifiably increased. expenses, which leads to regular excess of the legally established budget deficit. Overestimating expected revenues is fraught with a budget deficit and an increase in debt, or a reduction in spending. Underestimation of budget revenues (more often observed in our practice at all levels) leads to incomplete use of resources, which reduces the efficiency of expenditures.

The forecast of budgetary indicators should be considered in the general context of macroeconomic indicators (GDP, inflation rate, etc.). The most obvious connection is between macroeconomic indicators and the forecast of tax revenues. Inflation forecast error distorts the true cost of statutory financing. In our country, this error is observed from year to year - for example, for 2010, inflation was predicted at 6.5%, but in reality it was 8.8%. Inaccurate exchange rate predictions can change the cost of servicing external debt. However, first of all, competent forecasts of world prices for raw materials are important.

To assess the accuracy and quality of budget forecasting in the Russian Federation, the following figures can be cited - in the conditions of the crisis of 2008-2009. for GDP growth, the Ministry of Economic Development erred in estimates by 14.6%, although a deviation of 0.5 percent is considered acceptable; for investments - by 30.8 percent, with the norm being 1.5 percent. In 2009, against the backdrop of an unbridled rise in oil prices, plans for income and expenses were raised. At first, the cost of a barrel was set at $52, and revenues at 7.4 trillion rubles. But oil prices jumped to $129 per barrel, and the Ministry of Finance was “persuaded” to budget for a barrel cost above $90. Revenues were raised to 10.9 trillion rubles and increased obligations were accepted for them, including pension and social obligations. Then both oil and income fell, but it was impossible to get out of the circle of obligations assumed; the Reserve Fund saved us. Thus, due to the poor quality of forecasts, serious risks arise for fiscal policy and, ultimately, for overall macroeconomic stability.

2.Budget planning – activities for the development and preparation of a draft budget, which ensures balance and proportionality of budget revenues and expenses, coordination and coordination of the activities of participants in the budget process during budget execution.

Budget planning is one of the stages of the budget process.

The preparation of draft budgets is preceded by:

1. development of forecasts for the socio-economic development of the Russian Federation, constituent entities of the Russian Federation, municipalities and sectors of the economy;

2. preparation of consolidated financial balance sheets.

Methods budget planning:

Economic analysis;

Extrapolations;

Normative;

Balance;

Index;

Software-targeted

Problems in the field of budget planning . Currently in Russia, the preparation of draft budgets is based on the “from what has been achieved” method, when budget items for the upcoming financial year are determined by indexing the budget indicators of the previous financial year. One of the indexes is the CPI, which determines the level of inflation. The situation in the field of budget planning should be changed by a programmatic approach to budgeting, based not on the indexation of expenses of the previous period, but on the achievement of specific goals and objectives, for which a certain amount of funding is planned, laid down in the form of a program with a specific indication of activities, deadlines, and performers.

3. Operational financial management in the public sector – a set of measures developed on the basis of operational analysis of the current financial situation, with the goal of obtaining maximum effect at a minimum cost.

Operational management of budgets is carried out by executive authorities at all levels - the Ministry of Finance of the Russian Federation, the Department of Finance of the Smolensk Region, the financial department of the Administration of Smolensk and other bodies and services that manage budgetary relations on a daily basis.

4.Budget control- allows you to compare the actual results of using budget resources with planned indicators, identify reserves for their growth, and outline ways to use them more efficiently.

Classification of financial control according to various criteria, the main ones of which include:

1.Types of control– administrative, parliamentary, departmental, intra-economic, independent, public, etc.

2.Forms of control– audit, inspection, supervision, etc.

3. By time– preliminary, current, subsequent

4. Organs, exercising control, incl. and in the public sector

As part of the budget process, many of its participants are empowered control functions. Thus, certain control powers are exercised by the President of the Russian Federation, executive and legislative authorities, specialized control bodies (Federal Treasury, Accounts Chamber of the Russian Federation, FSFBN, etc.), as well as managers of budget funds (ministries, departments).

It is important to take into account that there are close connections between all functional elements of the budget management system, including feedback connections. A special role here belongs to control, which should be carried out at all stages of budget management.

V. Methods of influence: taxation, budget financing, budget lending, etc.

VI. Impact tools: fines and penalties for violations of budget and tax legislation, tax breaks, subsidies, subventions, subsidies, budget loans, etc.

VII. Legal support: Constitution of the Russian Federation, Budget and Tax Codes, laws regulating budget legal relations.

VIII. Regulatory support: instructions, norms, standards, tariffs.

IX. Information Support: budget and financial statements, statistical data, Internet resources, etc.

X. Purpose and result of impact: improving the quality of life of the population.

Budget management system- an enterprise system in which the enterprise’s activities are implemented using budgets and regulations for working with them.
On any commercial enterprise(and other enterprises are now difficult to find in post-Soviet republics, even if they are state-owned, this does not change their essence) the main goal at present is to make a profit as financial result enterprises. The purpose of enterprise management, therefore, is to manage the process of making a profit, through planning profits and its consistent achievement.
The actual results of the enterprise's work are expressed through accounting documents: balance sheet, cash flow report Money and income statement. These documents reflect only actual results; the entire control loop represents the implementation of the following functions:

• planning (determining forecast values ​​of expected results);
• accounting (registration of actual values ​​of the results obtained);
• control (comparing plan with fact and identifying deviations);
• analysis (finding out the reasons for the deviation of the fact from the plan);
• regulation (taking measures to eliminate deviations).

At an enterprise, in order to implement a full budgeting loop, it is considered necessary to draw up the following operating budgets and financial budgets:

• cash flow budget (CFB);
• budget of income and expenses (BDR);

Operating budgets

Financial planning is only one aspect of budgeting in an enterprise. Another important aspect comes into play when preparing operating budgets.
It is customary to allocate at least 8-12 operating budgets (planning documents):

1. Sales budget.
2. Cash receipts budget.
3. Production budget.
4. Budget for direct material costs.
5. Supply budget.
6. Budget for direct labor costs.
7. Manufacturing overhead budget.
8. Product cost budget.
9. Business expenses budget.
10. Administrative expenses budget.
11. Budget for settlements with creditors.

Operating budgets are the basis for drawing up the resulting, financial budgets. It is in operating budgets that information for financial planning is contained. When drawing up the entire set of budgets (operational and financial), it is necessary:

• forecast sales volume;
• determine the expected production volume;
• calculate production costs and operating costs;
• determine cash flow and other financial parameters;
• generate forecast financial documents.

The set of operating and financial budgets covers all the main aspects of the economic activity of the enterprise. Therefore, we can conclude that budgeting is, in essence, technology comprehensive economic planning.

Budgeting Aspects

The budget approach as a technology of comprehensive economic planning is distinguished by semantic focus on sales. As has already been shown, the first, initial budget of the enterprise is the sales budget. This is where the budget process begins.
The next important aspect of budgeting is the introduction of completed management technologies based on budgets. In this sense, budgeting is no longer understood as a planning technology, but as control technology economic activities of an enterprise, within which the functions of planning, accounting, control, analysis and regulation are performed.
The implementation of these technologies in an enterprise requires:

• determining the composition of budget forms, as well as the set of planned indicators and methods of their calculation for each budget form;
• building an accounting system in the context of the set of budget forms adopted at the enterprise;
• developing methods for monitoring and analyzing budget execution;
• implementation of regulations for the consideration and adjustment of budgets by officials and governing bodies of the enterprise, including decision-making procedures to regulate emerging deviations identified based on the results of an analysis of the actual execution of budgets.

The implementation of the first group of measures (determining the composition of budgets and methods for their preparation) essentially means the development of planning technology economic activity enterprises. Depending on the specifics of the enterprise, as well as on the type of budget (sales, production, inventories, finance, etc.), you can use various methods and approaches.
When setting up budgeting at an enterprise, it is necessary, first of all, to solve a very voluminous and non-trivial task - to choose a methodology for planning the economic activities of the enterprise in its various aspects. Issues of economic planning methodology at the enterprise level are interpreted ambiguously by different scientific schools and practical workers. And the methodology itself is in constant development. We will dwell on the aspect of optimizing the planning and implementation of economic activities below.
In addition, when determining the composition of budgets, it is necessary to determine the structural links for which certain budgets will be drawn up. Such structural units are usually called “centers of economic responsibility” (sometimes they are called “centers of financial responsibility”).
The implementation of the second group of measures (building an accounting system) is associated with solving issues of organizing so-called management accounting. There are two possible courses of action here: take the system as a basis accounting, “tying” it to the technology of budget management (in this case, the frequency of compiling accounting documents and the composition of the indicators taken into account changes, in some cases additional accounting forms are introduced); install proper management accounting at the enterprise, that is, an autonomous (from accounting) set of accounting registers and regulations.
The implementation of the third group of measures (development of control and analysis methods) involves the introduction at the enterprise of standards for permissible deviations of the “fact” from the “plan”, as well as the creation of a constantly updated “package” of typical reasons for such deviations. To identify the circumstances of the appearance of “atypical” causes of deviations, methods for express analysis of such circumstances are being created.
The implementation of the fourth group of measures (regulations for the consideration and adjustment of budgets) means the development and implementation of organizational schemes for budget management. This reveals officials and governing bodies responsible for making management decisions, as well as their mode of operation.
Budgeting in this regard is revealed as control technology financial and economic activities of the enterprise. Within the framework of such technologies, planning, accounting, control, analysis and regulation of all types of activities carried out by the company are carried out.

Budget management system and optimization

Let's consider optimizing the economic activity of an enterprise. The collection of information and its processing in the budget management system in itself does not guarantee an increase in the profitability of the company. The operational plans of the company and divisions: cash flow budget, accounts payable and receivable budget, sales and purchase budget in a plan for 1-3 months have, for example, their main goal to ensure only solvency and financial stability companies.
The task of increasing profitability is solved by drawing up and executing an income-expenses budget, production and sales budgets for at least a year due to seasonality affecting the company's activities.
We are talking, first of all, about building strict mathematical models and solving optimization problems. This issue has not been significantly addressed in Russian literature enough long time, largely due to the still emerging market in Russia. Now this problem has confronted many enterprises that have already implemented the basic elements of the budget management system and established a unified circuit for collecting and processing accounting, production and financial and management information.
It seems appropriate to expand the budget management apparatus and include methods for optimizing production and sales.
The formulation of the optimization problem highly depends on the existence and uniqueness of the management efficiency criterion, the number and interconnectedness of persons managing the enterprise, the structure of the set of admissible controls and other factors. After setting up a budgeting system at an enterprise, the problem of increasing profitability can be considered well structured, in which significant dependencies can be clarified and expressed quantitatively, in contrast to unstructured ones, which contain only descriptions of the main features and interconnections, and their quantitative indicators are completely unknown, and from weakly structured, containing both quantitative and qualitative elements with dominant tendencies.
Methods for solving structured problems are based on the use of mathematical programming. A mathematical programming problem can be written in general view How

where is a vector of variables corresponding to the components of the choice alternative; – scalar functions, which are a formalized reflection of the interaction of resource costs for the implementation of a choice alternative, which corresponds to a vector of variables x and existing spending limits. – the constraints of the problem specified by equalities and inequalities, respectively; – an efficiency criterion, a quantitatively specified attribute, in accordance with which the quality of the chosen alternative is established. – an objective function that associates each choice alternative with the value of its performance indicator.
In mathematical programming, it is customary to distinguish the following sections: linear, nonlinear, quadratic, integer, stochastic, dynamic programming, each of which has its own area of ​​application in economics.

Budgeting and mathematical programming

Not all works on budgeting reveal the application of mathematical programming to the development of planning methodology in an enterprise. Optimization of production and sales is found only in works on economic and mathematical modeling, where optimization issues are studied, but their connection with budgeting is not deduced. The connection between models with mathematical programming is established in the “System for Optimal Enterprise Development”.

Commercial budgeting

Commercial budgeting is related to the budgeting of trading activities. But any enterprise sells something; it is difficult to imagine an enterprise that does not sell anything. Therefore, the term “commercial budgeting” itself does not introduce anything new in comparison with the basic term “budgeting”. Its use is impractical neither in theory nor in practice.

Local budget management is based on a budget plan and a socio-economic development plan. The main function of planning is the formulation of goals and objectives for their implementation.

Budget planning is inextricably linked with planning for socio-economic development municipality.

These two plans must be interconnected. In this regard, they are developed and adopted simultaneously.

The goals of such planning are:

1) ensuring the socio-economic development of the municipality;

2) volume forecasting financial resources necessary to ensure the planned activities;

3) forecasting the financial consequences of implementing plans and programs;

4) identifying opportunities for implementing various measures within the local budget.

Budget planning can be long-term and annual. But its validity period must be linked to the terms for which the plan for the socio-economic development of the municipality is determined, since the budget must ensure the implementation of the plan for socio-economic development. The joint discussion and adoption of these two plans makes it possible to judge the reality of achieving the intended goal and transparency in the expenditure of funds for the development of the territory.

A good example is the city of Rostov-on-Don, where all budget expenses are associated with the implementation of specific work, provision of services, etc.

The literature suggests the introduction of long-term multi-year planning; annual and long-term (integrated); annual

The budget planning system is a set of organization, methods and procedures for the budget formation project.

There are three options for budget planning:

– annual planning;

– annual planning and long-term financial planning(two stages of budgeting with single aggregate indicators for the next financial year);

– long-term (multi-year) planning, in which annual planning is fully integrated (one format, single procedures).

Budget planning can be divided into two relatively independent blocks:

– development of a long-term (medium-term) financial plan for the medium term;

- development of the budget for the next financial year.

The result of annual budget planning is the preparation of a draft municipal budget for the next financial year, the basis of which is a long-term financial plan for the medium-term (three-year) period, the drafting of which, in turn, is the result of medium-term financial planning.

At the same time, in accordance with Art. 174 of the Budget Code of the Russian Federation, medium-term financial planning is based on the results of medium-term and long-term socio-economic planning, as well as the main priorities of the socio-economic development of the municipality.

The process of developing the annual budget is ensured by the implementation of individual elements of the long-term financial plan related to the next budget year. However, the annual budget should be considered only as a more detailed and integral part of the long-term financial plan.

The long-term financial plan is not normatively approved and is developed in order to formulate an understanding of representative bodies of local self-government and the proposed directions of socio-economic development, identify opportunities in the future for the implementation of measures in the field of financial policy, track long-term target programs and timely control of measures in certain situations. The plan is developed for three years and is adjusted annually with a shift of one year ahead, taking into account socio-economic development.

The plan consists of separate sections, in these sections the ways of solving the problems facing the municipality in the field of economy in the planning period are justified, and the main indicators for industries and areas of the economy are determined.

Individual indicators must be justified, and the plan must provide for anti-inflationary measures and pay attention to Special attention sections by social sphere.

Long-term budget planning allows you to solve the following problems:

– ensuring the medium-term balance of income and expenses;

– determining priorities for the development of the territory and their reflection in the long-term financial plan, and through it in budgets, taking into account income restrictions;

– formation of well-founded programs for the implementation of territory development priorities;

– monitoring and analyzing the degree of achievement of set goals and the quality of forecasts;

– increasing the validity of strategic decisions;

– increasing the efficiency of using budget resources.

The process of annual budget planning for a specific municipal entity consists of detailing the areas, mechanisms and timing of the fulfillment of expenditure obligations, clarifying the schedule and features of accounting for revenue receipts, managing current liquidity, short-term borrowings, assessing and solving problems arising as a result of the formation of temporary cash gaps, establishing clear requirements for the financial aspects of the activities of the main managers of budget funds.

The development of the annual budget is ensured through the implementation and detailing of individual elements of the long-term financial plan. Adopting a budget only for the next financial year does not make it possible to develop and implement the necessary steps towards the desired predicted changes and, if necessary, make adjustments. The following disadvantages of annual planning can be noted:

– lack of coordination between current, medium-term and strategic planning;

– lack of continuity in budget policy;

– the annual budget is not consistent with long term goals municipalities with deficit and debt targets for many years;

– there is no programmatic approach to planning;

– the problem of planning in the implementation of investment programs;

– an obstacle to concluding long-term contracts.

The annual budget should be considered only as a more detailed and integral part of the long-term financial plan. At the same time, in view of the possibility of the emergence of objective factors that cause differences in the annual volumes of financial resources of the municipal budget, and also taking into account the need to obtain an accurate plan for revenue receipts during the year, some differences have a right to exist. However, these exceptions apply only to the revenue side of the budget.

Budget planning procedures are inextricably linked with almost all areas of activity of financial authorities. Thus, for the budget planning process, information from the main structural divisions of financial authorities is the necessary initial data (for example, registers of expenditure obligations, assessment of possible borrowing volumes). Conversely, the results of budget planning are the initial data for subsequent work in other areas of activity of financial authorities (for example, to ensure balance in the financial plan or draft budget, specific borrowing needs may be identified).

A significant part of the functions related to budget planning can be directly assigned to sectoral structural units directly involved, for example, in managing income and expenses. In this case, it is necessary to identify structural units within the financial body, which are directly involved in the development of the draft budget and long-term financial plan in the process of budget planning.

Budget management system

Budget management system can be considered a combination of two elements: controls and stages and methods management activities in the budget process.

There are three groups of budget management bodies. TO first group include legislative and executive authorities. Since the State Budget as the main financial plan of the state is approved in the form of a Law, then The Verkhovna Rada of Ukraine (VRU) acts as the leading budget management body. Numerous local budgets are approved at the appropriate levels by local legislative bodies - councils, which are the leading body for managing the local budget. Executive authorities (Cabinet of Ministers, state administrations, executive committees) ensure the preparation of the draft budget and its implementation.

Second group constitute the operational budget management bodies. It includes: bodies of the system of the Ministry of Finance of Ukraine and local financial authorities, the Control and Audit Service of Ukraine, the State Treasury, the State Tax Administration, the Accounts Chamber of Ukraine.

Third group form non-financial bodies. While performing their assigned functions, they are also related to the budget. The first subgroup includes: State Customs Service and its divisions; bodies of the Ministry of Internal Affairs; justice authorities and notary offices; environmental authorities and inspectorates; state inspection bodies for price control, etc.

These bodies are connected with the budget through the formation of revenues, since they are given the right to charge and collect certain payments (duty, state duty) and penalties (fines for violation of customs rules, for violation of environmental legislation, rules of hunting and fishing, use of water, forest and other natural resources, pricing legislation).

The second subgroup of bodies of the third group of budget process management includes various management structures, first of all, line ministries and departments, as well as enterprises, organizations, institutions, the heads of which are vested with the functions of managers of funds, that is, they receive funds from the budget and finance subordinate enterprises, organizations, institutions and other structures (they are responsible for their intended use ). These bodies are linked to the budget in terms of financing expenses.

The structure of the budget process includes two components: budget planning (drafting, reviewing, approving) and implementing the budget.

Components of budget management

The components of budget management are determined general functions management activities. Management science removes such basic functions of management as:

Planning;

Organization of implementation of developed plans;

Motivation;

Control.

Based on the functions of management and the structure of the budget process, the following components of budget management can be distinguished:

1. Budget planning.

2. Organization of budget execution.

3. Accounting for budget implementation,

4. Control over budget execution.

It is worth noting that the main and defining function of budget management is strategic planning.

The implementation of the strategic planning function in Ukraine is entrusted to the legislative authorities. An example of such planning can be considered the budget resolution for each year, which the highest legislative body of Ukraine, starting in 1995, transmits to the executive bodies. The functions of planning the implementation of the strategy and organizing the implementation of developed plans rely on the executive authorities and operational budget management, which are engaged in ongoing budget planning and budget execution within the budget process.

Budget execution includes activities to implement profitable and consumable parts each of the budgets of Ukraine - State and more than 12 thousand local ones. Consequently, organizing budget implementation is one of the most important components of budget management.

Accounting for budget execution is the third component of budget management. Accounting is important to successfully implement the approved budget. The importance of accounting for budget execution in budget management is determined by the place of accounting in the management system. From taking timely and right decisions The effectiveness of management activities depends on issues of budget planning and execution. These decisions can be made only on the basis of an analysis of the relevant information that characterizes the state of the management object (budget) on a certain date or for a certain period of time. Accounting allows you to perform such an important task - to provide a management system for the necessary information. That is, accounting for budget implementation is the supporting system on which the budget process is based. The correctness of decision-making also depends on the qualifications of budget workers and on the methodology of budget work.

However, the most important component of budget management is information. Even deep knowledge will not ensure achievement of results if the information support does not meet the established requirements.

Budget control is one of the main areas of financial control. It is carried out at all stages of the budget process. During the budget planning process important role plays preliminary control as well as current control. This control is exercised by absolutely all participants in the budget process (government bodies, as well as enterprises, organizations and institutions). Current control is carried out by state authorities and management, as well as specialized financial control services (Tax Administration, Control and Audit Service, State Treasury, Audit Chamber and audit firms, Accounts Chamber) in the process of budget execution. In countries with developed market relations, such control is also carried out directly by citizens and is ensured, first of all, by the transparency and openness of the budget process and democratic elections to government bodies, which, in turn, affects control bodies, whose activities become open, and the results can be checked .

If an enterprise draws up budgets (that is, certain financial plans), then can we say that a budgeting system has been introduced there? Most often, after a close acquaintance with how budgets are drawn up and used, the answer is negative. Understanding what budget management actually is is still a rather rare phenomenon even among heads of financial services of enterprises. Meanwhile, the term “budgeting” itself is widely used and attracts attention as a fashionable management technology. In our opinion, it is time to carefully understand what principles are key to budgeting technology in order to distinguish “correct” budgeting from “false” ones.

Budgets are plans for the activities of an enterprise and its various structural units, expressed in financial indicators. The main purpose of budgets is to support the solution of three management tasks:

• financial forecast;
• comparative analysis of planned and actually achieved results;
• assessment and analysis of identified deviations.

Thus, budgets are only tools corporate governance. Availability some budgets do not mean that they can be used effectively, or that they actually “work” in the enterprise management circuit.

We highlight seven basic principles, building a full-fledged budget management system. Let's look at each of them in more detail.

1. Budgeting is a tool for achieving company goals

Before you can develop a plan, you need to define your goals. Planning without goal setting is quite pointless. Goals are formed at the strategic level of corporate management. Thus, budgeting is a tool for implementing the enterprise strategy. With the help of this technology, an inextricable link is ensured between strategic goals and plans aimed at achieving them, and with operational processes ensuring the implementation of plans. Budgeting is what puts strategy into action.

Formally, you can draw up budgets without worrying about any goals. This is what they do often. If any meaning can be found in this activity, it consists only in obtaining a financial forecast: what will happen if we continue to “go with the flow.”

2. Budgeting is business management

The basis for budgeting is financial structure. It should reflect, first of all, the structure of the business and the types of activities in which the enterprise is engaged. If an enterprise runs several businesses that are relatively independent sources of profit, then each business must have its own budgets. This is necessary in order to correctly evaluate the results of activities in each area and ensure effective management of each of them.

Again, you can formally draw up a single company budget without having to deal with the difficult task of building the correct financial structure. This is also a fairly common situation. The benefit of such a budget is negligible. It is impossible to determine from it where profit arises and where it is “eaten up”, what target indicators are set for the heads of various structural units, and to what extent they have been achieved. In other words, such The budget is useless as a management tool.

3. Budgeting is management based on balanced financial indicators

Before starting to develop budgets, it is necessary to determine what financial indicators the management of the enterprise is guided by, what indicators are accepted as criteria for the success of the company for the planning period. These indicators must be linked to strategic goals and defined very specifically. For example, to say that we choose profit as one of the key indicators is to say nothing. Profits can be long-term or current, so they need to be linked to a time period. In addition, profit can be marginal, gross or net. This choice determines the priorities for company leaders and managers at all levels.

In addition, financial indicators must be balanced, since an improvement in one indicator often leads to a deterioration in another. Finally, the indicators must represent a system that covers all elements of the financial structure.

A balanced system of financial targets and restrictions constitutes the “architecture” of the budgeting system, in accordance with which budgets are developed.

4. Budgeting is management using budgets

The main tools of budget management technology are three main budgets:

• Cash flow budget designed to manage liquidity;
• An income and expense budget to help you manage operational efficiency;
• Forecast balance required for management asset value companies.

Master budgets are compiled not only for the company as a whole, but also for each business unit (profit center), and represent only the “tip of the iceberg” of the budget system, which includes many interrelated operating and support budgets.

5. Budgeting covers the entire management loop

Any management process is a closed loop, including the stages of planning, control, analysis and regulation. According to the results last stage decisions can be made to redistribute resources, adjust plans, reward those who have distinguished themselves, punish the guilty, etc.

However, the budgeting process often focuses only on the planning function. Obviously, if the plan does not “work” as a tool for monitoring and analyzing the results achieved, and does not serve as the basis for building a system of motivation for managers and employees, its importance is depreciated.

6. Budgeting covers all levels of management

One of the important signs effective system budgeting is its “total” distribution to all levels of the organizational structure. Involving each employee responsible for one or another “line” of the budget in the budgeting process allows you to solve several important problems:

• Reducing the complexity of the budgeting process by decentralizing it (an overly centralized budget is difficult to develop, adjust and monitor its execution).
• Increasing the responsibility of specific performers by delegating to them powers and responsibility for the implementation of certain budget indicators.
• Building an effective motivation system related to the company’s financial plans.

It is important to understand that budgeting is collective planning, in which managers at all levels of management participate. Consistent coordination of plans at all levels of the organization is similar to the process of concluding an agreement between the “managers” of the company to achieve an agreed result. Therefore, the budget can be defined as agreement between financial management participants on coordinated actions aimed at achieving the company’s goals.

7. Budgeting is carried out on a regular basis

Often the developed plan is put “on the shelf” until the end of the year, when it’s time to sum up the results. It is clear that such a plan is useless and the time spent developing it is wasted.

Budgeting, like any management process, must be carried out continuously. The approved plan is only the basis for continued planning work. It is quite fair to observe that any plan becomes obsolete the moment it is approved. The reason for this is the constant change in conditions and parameters that served as the basis for the preparation of plans. Our understanding and assessment of the situation also changes, and there is a constant need to make adjustments to the plans developed. Awareness of this eternal dissatisfaction with the result of planning prompted General Eisenhower to exclaim: “Plans are nothing, planning is everything!” Indeed, the planning process is, in a sense, more important than the result, which it is aimed at obtaining. Since it is during planning that managers at all levels collectively develop coordinated approaches to solving problems, comprehend the tasks facing them, and assess limitations, opportunities and risks.

To summarize, let us give a definition of budget management that summarizes the provisions discussed above.

Budgeting is a business management technology at all levels of a company, ensuring the achievement of its strategic goals with the help of budgets based on balanced financial indicators.

This article outlines only the most general provisions budget management concepts. In reality there are no mandatory requirements to how budgets should be used to manage an enterprise. Unlike accounting, there are no established guidelines or rules. The introduction of budget management technology is a creative process, which should be guided by an understanding of the “mechanisms” of management, knowledge own business and common sense.