Subsidies and subsidies, subjects of recipients of grants and subsidies. What is a subsidy? Who are the subsidies given to? Types of subsidies

DOTATION

DOTATION

(from lat. dotatio - gift, donation)

1) funds allocated from the state and local budgets to provide financial support to unprofitable enterprises, whose cash proceeds from the sale of a manufactured product are less than the costs of producing and selling this product, to lower budgets to cover the gap between their income and expenses. The subsidy compensates for increased costs and covers losses. Granting subsidies to enterprises allows, on the one hand, to prevent their bankruptcy, on the other hand, to prevent retail prices from being exceeded for certain consumer goods and services, since part of the price for these goods is paid from budget funds through subsidies. If there were no subsidies, producers would shift their respective share of their costs to buyers, which would drive up prices. However, subsidies are a heavy burden on the state budget, give rise to its deficit, as a result of which it is necessary to carry out additional emission of money, leading to inflation. Subsidies are widespread in countries with a predominantly public administration management of the economy, and to a much lesser extent are characteristic of market-type economies, in which the requirements for self-financing and self-sufficiency are rather strict;

2) state cash benefits in the form of additional payments provided to citizens and individual organizations to cover losses or for special purposes.

Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. - 2nd ed., Rev. M .: INFRA-M. 479 s.. 1999 .

Economic Dictionary. 2000 .

See what "DOTATION" is in other dictionaries:

subsidy- State budget subsidy 1. State allowance to citizens and organizations to cover losses or other purposes. 2. The amount of funds allocated from the budget to enterprises that have costs for the production and sale of products ... ... Technical translator's guide

Budget appropriations to cover planned losses or balance subordinate budgets. Dictionary of financial terms. Subsidies Subsidies in the Russian Federation is the amount allocated from the budget of a higher level in cases where ... ... Financial vocabulary

- (lat. dotatio, from dotare to reward, to endow). 1) capitals or income items issued for use by various institutions. 2) estates and money, assigned as a reward, persons, for the military. merit, from indemnity. Dictionary of foreign words, ... ... Dictionary of foreign words of the Russian language

- (Dotation, Grant, from Lat. Dotatio gift, donation) has several meanings: In Russian legislation, interbudgetary transfers provided on a gratuitous and irrevocable basis without establishing directions and (or) ... ... Wikipedia

Subsidy, cash allocation; allowance, subsidies Dictionary of Russian synonyms. subsidy noun, number of synonyms: 5 government subsidy (1) ... Synonym dictionary

subsidy- and, w. dotation f., ger. Dotation f. lat. dotatio donation, donation. outdated. He, a deputy in the form of a financial report, calculated that since the annexation of this region of Hesse to the Kingdom of Westphalia, Napoleon imposed on this ... ... Historical Dictionary of Russian Gallicisms

- (from the Middle century lat. dotatio gift) 1) state benefits to citizens and organizations to cover losses or other purposes, additional payment; 2) the amount of funds allocated from the budget to an enterprise that has production and sales costs ... Legal Dictionary

English. subsidy, grant A. Gratuitous financial assistance from the state to compensate for costs, losses of unprofitable enterprises, repayment of the difference between wholesale and retail prices. B. Additional payments to the employee, including: D. for food, ... ... Business glossary

- (in medieval Latin, dotatio gift), funds issued irrevocably to legal entities and individuals. State budget subsidies are used to regulate the economy; issued to low-income and unprofitable industries ... Modern encyclopedia

- (from the medieval lat. dotatio gift) allocations from the state budget to cover losses of enterprises, firms, financial support for the military industry, infrastructure industries, etc. Big Encyclopedic Dictionary

Subsidies- cash benefits provided by the state budget free of charge.

Local authorities and low-profit companies that are important for the country's economy have the right to receive subsidies. The subsidy is provided to certain categories of employees at the enterprise.

Subsidies to the subjects of the country

Subsidy is a measure of support of the country's territories by the state. The procedure for assigning a payment, its conditions for receiving is determined by the budget code of the country. A unified methodology developed by the government determines the distribution of benefits between the constituent entities of the country.

Federal funding is provided for intergovernmental transfers of municipalities. The main types of subsidies to the regions:

1. budget alignment aid;
2. maintaining a balanced budget.

The equalization subsidy helps the regions solve socio-economic problems, provide citizens with the necessary standard of living and provide social guarantees. But the region cannot constantly receive benefits from the state. The government provides for measures to influence the subjects.

If during the last three periods of the report the percentage of subsidies from the state budget amounted to more than 40% of the state's own income, the subject will be forced to take measures to improve the efficiency of funds from the allocated budget.

The donation does not have a designated purpose, but the procedure for spending funds is regulated by the country's Accounting Chamber. The regions that have violated the order are not entitled to use the benefit in the future period.

Allowance for balancing the budget is provided when the expenses and incomes of the region change. Part of the funds is sanctioned by the law on the budget, and the other half is appointed by a commission consisting of deputies of the State Duma, the Council of Federations and government participants.

The grants are directed not only to support the region, but also to implement specific presidential programs and tasks of national importance, which are being implemented in this subject of the federation.

Subsidies to producers

State benefits are directed to branches of farms or individual industries. Compensates costs and levels out losses to the organization. The support goes to enterprises of great importance for the region or country with products that are included in the consumer minimum. And if the rise in prices for goods and servants will lead to social collapse.

With subsidies, the state protects low-profit companies from bankruptcy and supports the growth of consumer prices. Benefits are provided to large enterprises; subsidy policy is not provided for small and medium-sized businesses.

Government subsidies to businesses are not a panacea. Benefits increase the burden on the state budget, can cause its deficit and increase the level of inflation. In this case, analysts are encouraged to optimize production, apply technology and increase investment in the business from outside.

Organizations need to be self-financed and self-sustaining.

A separate category of citizens can also receive subsidies from the state. For this, the conditions are observed and documented: single mothers, large and low-income families, disabled people and other categories of citizens.

The subsidy is also channeled by university students studying at the expense of the state budget: orphans, people with disabilities.
The right to receive any grant of application and submission of documents.

When drawing up a draft budget, both state and local, with the aim of an equal distribution of finances among federal subjects, as well as between individual branches of production and the national economy, regulation is applied. Its essence lies in the leveling of the systems of provision of territorial or sectoral formations through the use of such forms as subsidies, grants, subventions and others. In doing so, the national government or local administrations must comply with minimum government standards.

In the world, the practice of distributing funds between budget funds of different levels or industries is widely used. In the Russian Federation, over 70% of financial regulation is allocated from regulatory revenue. What is a subsidy and what role it plays in the domestic economic policy of Russia will be fully explained by the Budget Code of the Russian Federation.

Forms of regulation

Among the budgets of different levels, funds are redistributed through the irrevocable provision of financial support in the form of the following main forms of regulation:

• subsidies;
• normative subsidies (transfers);
• subventions;
• subsidies;
• compensation.

A subsidy is a type of transfers transferred between budgets to support individuals and unprofitable enterprises. According to the current Budget Code of the Russian Federation, financial transactions are carried out within the framework of the domestic budget system free of charge and irrevocably.

The legislation provides the possibility of transferring funds from the federal budget in favor of the constituent entities of the Russian Federation (regions, territories, including autonomous ones) in the following forms:

• subsidies for equalizing budgetary security;
• subsidies (financial benefits) and subventions (targeted material assistance);
• other transfers.

Budgetary funds can be provided by the authorities of the subject in favor of local budgets. In this case, funding goes to settlements and municipal areas.

Subsidized assistance of any level can be replaced by additional standards for deductions from personal income tax, valid for up to 3 years.

Features of receiving federal subsidized aid

Individual subjects of the Russian Federation receiving subsidies in the amount of 10% of income from 2 reporting periods cannot:

• accept and fulfill obligations that do not relate to their powers in accordance with the current legislation;
• exceed the standards of expenses for the maintenance of public authorities approved by the Government of the Russian Federation.

If the subsidized share is more than 40% of the income, the following measures are introduced:

• development, signing and implementation of an agreement with the Ministry of Finance of the Russian Federation for the growth of tax and non-tax revenues, increasing the efficiency of budget use;
• control over budget execution;
• transfer of materials for drawing up an opinion on the compliance of the draft budget of the subject with the requirements of the laws of the Russian Federation;
• annual audits of the report fixing the order of budget execution.

Suspension or reduction of the listed interbudgetary transfers occurs if:

• the authorities of the constituent entity of the Russian Federation violate the conditions for issuing subsidies;
• exceed the limit values ​​for costs;
• do not fulfill the obligations imposed on the transfer of funds to equalize the local budget.

Setting the size of federal subsidies

The list of recipients of subsidies is approved annually by the authorized bodies of the Ministry of Finance of the Russian Federation by November 15th. The funds are directed to a specialized financial fund. The final amount of subsidized assistance is set taking into account the budgetary provision of the population of a particular Russian region.

When establishing this significant indicator, state authorities take into account:

• population structure;
• the amount of tax income of citizens;
• factors affecting the cost of public services (climatic, geographic and socio-economic).

Until August 1, officials of the Ministry of Finance of the Russian Federation transfer to the executive bodies of the subjects of the information necessary for the distribution of subsidized assistance.

An agreement is concluded between the Ministry of Finance of the Russian Federation and the head of the subject on the conditions for the provision of subsidies. The purpose of the adoption of the document is to improve the state financial system, improve the social and economic condition of the Russian regions.

Features of receiving subsidized assistance from subjects

If the amount of subsidies is more than 5% of total income, then the authorities of the municipality cannot exceed the norms for:

• wages of deputies;
• costs of elected officials;
• maintenance of municipal employees.

If the amount of subsidies exceeds 20% of the income of the local budget for 2 years, then the authorities are prohibited from having expenditure obligations that are not attributed to their powers.

With an increase in the share of subsidies to 50%, the following additional measures are taken:

• signing agreements with the leadership of the constituent entities of the Russian Federation;
• submission of a submission to the executive bodies. The local administration submits data for forming an opinion on the correctness of the draft adopted budget;
• audit by control and accounting bodies of budget reporting at least once every six months.

Calculation of the amount of funding from entities

Subsidies in favor of individual settlements of the Russian Federation come from the budget of the subject. The transfer of social funds is carried out in order to stabilize the indicator of budgetary provision in:

• urban districts;
• intracity areas;
• urban and rural areas.

The allocated finances are transferred to the regional fund. The amount of subsidized receipts is calculated taking into account:

• the number and structure of residents;
• the degree of development of the economy;
• tax potential of the region;
• climatic, socio-economic and geographic prerequisites.

Subsidies paid in favor of districts are fixed in the budget of the subject. The volume and characteristics of the distribution of funds are reflected in the budget law adopted by the authorities at the level of the subject.

Features of receiving subsidies from local budgets

Social assistance from local budgets goes to districts, settlements and urban districts.

Finances received from municipal districts constitute the district fund. Funds transferred from districts with intra-city division are credited to the district fund.

Purpose and consequences of granting subsidies

Subsidies are made without specifying the directions and conditions for the use of funds. Local legislation may provide for the issuance of subsidies for food for certain categories of workers, for travel, for payments in favor of minor children.

The scope of the subsidized includes such areas of the state economy as the agricultural industry and research activities. The payment of subsidies in favor of unprofitable companies avoids bankruptcy or a significant increase in retail prices for popular goods and services.

Making decisions on granting subsidies entails a deficit in the state budget, additional money emission and inflation.

This is a form of state support for enterprises engaged in industries with low profitability: agriculture, basic science, art, housing and communal services, etc. The recipient has the right to spend the amount at his own discretion, he is not obliged to report to the "donor" or return previously received funds.

Views

Depending on the categories of recipients, subsidies are divided into three types:

Interbudgetary transfers

These are funds allocated from the federal center to the regions or from the treasury of the subject to cities and districts. The purpose of such transfers is to support budgetary provision, to stimulate the development of production in individual territorial units. The amount of funds allocated is calculated taking into account the population of the recipient region, its tax potential, the structure of the economy, climatic and geographical features.

The current budgetary legislation provides for restrictions on the regions that receive federal subsidies. For example, they are not entitled to increase the cost of maintaining the management staff, to assume obligations that are not provided for by the existing regulatory legal acts. The Ministry of Finance is empowered to control the execution of the budget in the subject, to think over programs to increase its tax and non-tax revenues.

Grants to individual organizations

This is a form of state support for enterprises and organizations whose costs exceed the level of income. Potential recipients of budget funds have a low rate of profitability, but their value for the economy or society is high. The purpose of the financial assistance is to support the functioning of these structures, to enable them to become self-sufficient.

Cash assistance to the population

The state provides financial support to socially vulnerable categories of citizens, for example, large families, pensioners and disabled people. The subsidies provided to them are manifested in the form of benefits for payment of utilities and tickets for public transport, the establishment of special prices for consumer goods, medical products.

The second form of subsidies to citizens is financial support provided by employing firms to personnel. Its measures are prescribed in the employment contracts of employees. These may include partial or full payment for travel, meals, additional health insurance, etc.

Objectives, advantages and disadvantages

The purpose of providing financial assistance is to compensate for the increased costs of an economic entity, to prevent it from being on the verge of bankruptcy. The result of the transfer of subsidies is the support of a local manufacturer, the development of socially significant but low-profit industries, the prevention of an increase in retail prices, since the state actually takes on part of the costs of producers of goods and services.

The benefits of subsidies include:

• simplicity of the mechanism for their provision;
• the ability to support different recipients (regions, citizens, individual enterprises);
• the ability to stimulate domestic demand and increase employment.

The main disadvantage of subsidies is their opacity. The recipient does not account to the "donor" on how he spends the allocated funds, therefore a significant portion of the allocated funds flows away "to nowhere" and ends up in the pockets of officials. Financial assistance provided to various categories of economic entities increases the burden on the state budget. Additional costs are financed from taxpayers' funds.