Chapter 20. Sequestration and budget adjustments

Article 110. Sequestration

1. Sequestration is a special mechanism to reduce costs budget funds within certain limits, which is introduced in cases when, during the execution of the republican and local budgets, the approved receipts do not reach the republican and local budgets, as a result of which it becomes impossible to fully finance the approved budget programs. 2. Sequestration of budget programs in the amount of less than ten percent of their annual approved volume may be carried out by the decision of the Government of the Republic of Kazakhstan or a local executive body, in the amount of more than ten percent - on the basis of a law or a decision of a maslikhat. 3. On the basis of a resolution of the Government of the Republic of Kazakhstan or a local executive body on sequestration, the authorized body for budget execution, in accordance with the procedure established by this Code, shall adjust the corresponding budget. 4. When reducing budget programs, their priority and social orientation are taken into account. 5. With the adoption of a decision by the relevant budget commission on sequestration, the authorized body for budget execution suspends the registration of civil transactions and payments under budget programs for which sequestration is planned. 6. Regulation of relations arising from the sequestration on civil transactions concluded at the expense of budgetary funds is carried out in accordance with the civil legislation of the Republic of Kazakhstan. 7. Expenditures of budgetary funds aimed at fulfilling state concession obligations are not subject to sequestration in the process of budget execution. Footnote. Article 110 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 111. Adjustment of the budget

1. A budget adjustment is a change in the indicators of the approved (revised) budget on the basis of decrees of the Government of the Republic of Kazakhstan, local executive bodies and other regulatory legal acts by making changes and additions to the consolidated plan of receipts and financing of payments, a consolidated financing plan for obligations for the next financial year in the manner determined by the Government of the Republic of Kazakhstan. If, after the adjustment made, the budget is revised, the adjusted budget indicators are reflected in the revised budget, with the exception of the allocated budget programs. 2. Adjustment of the republican budget is carried out in the following cases: 1) formation, liquidation, reorganization, changes in functions and staffing limits of central state bodies and their subordinate government agencies ... At the same time, the budget adjustment consists in the merger, division, reduction (increase), transfer of the corresponding budget programs related to these cases, within the total amount of these budget programs approved (specified) by the law on the republican budget; 2) the distribution of budget program funds approved as part of the budget programs of a particular administrator of budget programs among various administrators of budget programs; 2-2) insufficient funds provided for one of the types of reserve to increase the planned assignments of the corresponding reserve through the redistribution of the total amount of funds from the reserves of the Government of the Republic of Kazakhstan; 3) provided for by paragraph 3 of Article 24 of this Code; 3-1) redistribution of funds in the amount of no more than five percent of the volume of expenditures of the budget program for the current financial year between budget programs for the development of one administrator of republican budget programs without changing the structure of budget expenditures, without consideration by the Republican budget commission, from five to ten percent of the volume expenditures of the budget program for the current financial year between the budget programs for the development of one administrator of the republican budget programs without changing the structure of budget expenditures with mandatory consideration by the Republican budget commission; 4) provided for by paragraph 4 of Article 104 of this Code; 5) provided for by paragraph 3 of Article 110 of this Code; 5-1) provided for by paragraph 13 of Article 151 of this Code; 6) non-submission of the relevant documentation specified in Articles 153 and 154 of this Code on budget investments aimed at the implementation of especially important and requiring prompt implementation of tasks that have positive proposals from the Republican Budget Commission. At the same time, the amounts provided for the implementation of these budget investments can be redistributed between other budget investment projects within the framework of one budget program of the corresponding administrator of budget programs. 3. Adjustment of the local budget is carried out in the following cases: 1) formation, liquidation, reorganization, changes in the functions and staffing limits of executive bodies financed from the local budget and state institutions subordinate to them. At the same time, the budget adjustment consists in the merger, division, reduction (increase), transfer of the relevant budget programs related to these cases, within the total amount of these budget programs approved (clarified) by the decision of the maslikhat on the local budget; 2) discharge during fiscal year funds from the reserves of the Government of the Republic of Kazakhstan and the local executive body of the region to the lower budget, as well as the allocation during the financial year to the lower budget of funds from the distributed budget program provided for in the higher budget; 2-1) provided for by paragraph 3 of Article 42 of this Code; 2-2) allocation of additional and (or) changes in the volumes of allocated targeted transfers and budget loans from the higher budget; 3) distribution of budget program funds approved as part of a specific administrator of budget programs among various administrators of budget programs; 4) provided for by paragraphs 4 and 5 of Article 44 of this Code; 5) provided for by paragraph 4 of Article 104 of this Code; 6) provided for by paragraph 3 of Article 110 of this Code. Footnote. Article 111 as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010); dated 24.11.2011 No. 495-IV (the order of enforcement see Art. 2); dated 16.02.2012 No. 557-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.12.2013 No. 150-V (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 02.07.2014 No. 225-V (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

The budget regulations are drawn up separately for each stage of the budget cycle (see Fig. 10.1). To develop budgetary regulations, it is necessary to determine budget system company according to its financial structure or responsibility for drawing up specific budgets for structural units at various levels. The main thing is to determine the range of tasks facing departments of various management levels, or, more simply, to determine a set of budgets (the composition of the main document flow), other documents (the composition of the accompanying document flow, for example, memos, forms of reports on budget execution and their analysis) and responsible executors for compiling them. A set of forms for the main and accompanying workflow is established for each stage of the budget cycle (for stages of development- types of budgets and forms of memos; for operational control stages - forms of current reporting, data display primary accounting; for the stage of drawing up reports on the execution of budgets - reporting forms; for the stage of budget adjustments the forms of the documents correspond to the forms adopted at the stage of developing the initial versions of the budgets).

For each stage of the budget cycle, a set of operations for the implementation of the corresponding tasks is also determined. On the stage developing budgets such a set will include the following operations (functions): drawing up initial versions of budgets; reconciliation them with subdivisions (officials) of the same management level; treatment(pre-consolidation) budgets over low level management; agreement (preliminary agreement) consolidated budgets with subdivisions (officials) of a higher management level; permission conflict of interest in the case when it is not possible to agree on budgets; examination and approval previously agreed consolidated budgets in special bodies at the highest level of management (for example, in the budget committee) prior to their submission for approval; statement budgets at the highest level of management. Let us emphasize that this is a set of functions performed at the first stage of the budget cycle. Depending on the specifics of the budgetary regulations, the set of functions can be narrowed or expanded.

On the stage operational control the main functions are the collection and processing of information on the progress of budget execution for conducting a plan-fact analysis and taking measures of proactive management influence on the responsible structural units to ensure budget discipline and fulfillment of the set targets.

Stage drawing up reports on the execution of budgets It is characterized primarily by the functions of collecting, processing and consolidating information on the progress of budget execution for the period taken as a step in financial planning for developing and making decisions on making changes (adjustments) to budgets for the coming period.

On the stage adjustments to budgets all operations of the first stage of the budget cycle are repeated.

When setting the time frame for the performance of certain functions (operations) and the preparation of documents during the budget cycle, it is necessary to distinguish between the timing of preparation (implementation) and the frequency of preparation (implementation). Timing involves the scheduling of individual operations or the preparation of appropriate forms and documents (for example, until what date of which month or quarter). Frequency is characterized by the regularity of preparation (for example, daily, weekly, quarterly). When developing the regulations, the timing and frequency of the stages of the budget cycle are determined.

The timing may relate not only to the actual performance of functions or the preparation of budgets (other forms of documents), but also to the performance of operations, for example, the settlement of conflicts of interest. During the period between the deadlines for the submission of budgets of individual structural units (CFD, CFU or cost center) and the approval of consolidated (consolidated) budgets for the company as a whole, budget estimates (both for newly drawn up budgets and for adjusted ones) are agreed between the heads of structural units and the corresponding service of the company ... This reconciliation is a resolution of conflicts of interest. The budgeting regulations should clearly describe the procedure, and most importantly, the timing of the approval of the budgets of the Central Federal District, the Central Federal District, or the cost center in the process of their consolidation (in terms of terms, forms of documents used, schemes of their circulation and the timing of consideration and decision-making on them).

For example, if the planning and economic department (PEO) of an enterprise or firm does not agree with the budgets of some Central Federal District, considering income indicators to be understated and (or) overestimated expenditures, then the budgeting regulations establish a deadline for notifying the head of this Central Federal District by the relevant official of the PEO about the need to make changes to the previously submitted budget (for example, within two days after the receipt of the corresponding budgets). This notification can be issued in the form of an order of the head of the PEO or a higher-level manager in the form of a memo of the PEO specialist in charge of this structural unit.

If the head of the Central Federal District accepts the comments and amendments made to his budget or informally, before and even after receiving the notification, coordinates his position with the PEO (company management), this means that the conflict of interest has been resolved and the issue of the budget is closed. The situation is different in the case when the head of the Central Federal District cannot reach an acceptable solution informally and goes, as they say, “on principle”. The budgeting regulations provide for an organizational procedure, which, on the one hand, does not allow delaying the process of drawing up and adopting a budget (both for the Central Federal District and for the company as a whole), and on the other hand, makes it possible to find a solution that will subsequently be implemented.

For the head of the Central Federal District, the following should also be established: 1) the term for “appealing” the relevant orders of the IEE (for example, three days); 2) the form of the document in which the disagreement with the received order is expressed (for example, an official or memorandum); 3) an official from among the top managers of the enterprise or firm (for example, a deputy general director on economic issues), who acts as a kind of "arbiter" in the dispute between the heads of the Central Federal District and the PEO. If a memo from the head of the Central Federal District addressed to the "arbiter" manager is not received within the specified time, then the budget of the Central Federal District is consolidated and approved in the version of the IEE, and after approval the head of the Central Federal District must execute it, even if he does not agree with the budget.

A similar procedure applies to specialists or managers of PEO. If the head of the Central Federal District was not properly notified of the need to amend the budget of the Central Federal District submitted by him, then the version proposed by the head of the Central Federal District is automatically submitted for consolidation and approval. Such details and organizational trifles in fact not only make it possible to quickly find ways to resolve conflicts of interest and agree on the submitted budgets at various levels of management, but also help to more accurately distribute functions, areas of authority and responsibility between various participants. budget process, make the budget management process more efficient, weaken the effect of purely subjective factors.

At the stage of operational control, the most important problem is to determine the form and frequency of the provision of data necessary to track the implementation by the responsible structural units of their budgets and conduct a factual analysis of deviations of planned targets from actual ones. This problem is solved in each company in its own way, depending on the organizational and technical capabilities. Ideally, traceability should exist at all times. In practice, this is feasible only when the company has fully automated primary accounting, i.e. all documents related to financial activities(overhead, costs, invoices, etc.), from the very beginning have electronic carrier and form a single base data. Otherwise, the regulations should provide for the frequency and source of such information.

At the stages of drawing up reports on the execution of budgets and adjusting them, one of the serious problems is the delay in the preparation of reporting and forecast (planned) information. The company needs an adjusted budget not in the middle, but by the beginning of next month. It takes a certain amount of time to prepare it. So it turns out that the adjusted version for the next month of the budget period must be prepared 5-10 days before its start, when the information on the results of the current month is incomplete. To get out of this situation, some companies introduce a procedure for drawing up a preliminary version of an adjusted budget (based on preliminary information about the end of the current month), which is then agreed, processed, consolidated and subjected to other operations provided for the budget adjustment stage. During the execution of these operations, the month comes to an end, and the final reporting information becomes more complete. In the next iteration of the budget process, the final version of the budget execution report and the final version of the adjusted budget for the next month are produced. As a result, it is possible to meet the deadlines (have a budget at the beginning of the month) and use more complete factual data for this.

The general structure of the budgetary regulations is shown in Fig. 10.4.

Rice. 10.4.

In order for the budgetary regulations in the company to work as part of the management technology, it is necessary to consolidate it in the internal regulatory documents(in the Regulation on budgetary regulations, see Appendix 2). In this case, budgeting will function as a mechanism. This mechanism is designed to maximally cleanse the procedure for submitting, agreeing and approving the budgets of individual structural divisions and business units of the company from the influence of subjective factors.

For cases when the actual budget revenues turn out to be less than the approved amount, the law provides for two options. If the change in revenues compared to the budget plan is insignificant, the decision to cut budget expenditures is taken by the executive authorities.

If the actual budget revenues are significantly lower than planned, it is necessary to amend the budget law, which involves the participation of legislators.

The Budget Code of the Russian Federation established next order cost reduction federal budget:

1) If, in the process of executing the federal budget, the underfunding of expenditures does not exceed 10% of the plan, the regime for their reduction is introduced by the highest executive body - the Government of the Russian Federation. At the same time, budget expenditures for all their types and recipients should be reduced in the same proportion. The government's decision must also be made public, the terms of notifying all administrators and budget recipients about it are similar to the previous case. The abolition of the budgetary expenditure cuts regime is carried out by the authority that made the decision to introduce it;

2) If the decline in revenue is such that it requires spending cuts of more than 10% of annual allocations, the changes to the budget plan must be approved by legislators. To this end, the government develops and submits to the State Duma a draft law on amendments and additions to the law on the federal budget. Together with the bill, other materials are sent to the Duma.

The State Duma considers the draft law in an extraordinary manner in three readings with a total duration of 15 days.

The first reading should take place no later than 2 days after the introduction of the bill.

His procedure is as follows. The Duma hears the report of the Government and the report of the Accounts Chamber on the state of receipts of income and funds from borrowing to the federal budget, adopts the draft law as a basis and approves the new basic characteristics of the budget. If the draft law was adopted in the first reading, its second reading must take place not later than 5 days after that. In the second reading, the amount of appropriations for sections and subsections of the functional and departmental classifications of expenditures of the budgets of the Russian Federation is approved. The third reading should take place no later than 3 days after the adoption of the bill in the second reading. In it, the draft law is put to a vote as a whole.

If within the specified period the draft law on amendments and additions to the budget law has not been adopted, the government has the right to proportionally cut federal budget expenditures. This procedure is valid until the adoption of the specified law.

In addition to the insufficient receipts of revenues to the budget, in the process of its execution, the opposite situation may arise, when the actual amount of revenues exceeds the one approved by the law on the budget. Order of use additional income also governed by the Budget Code. In accordance with it, revenues received in excess of the planned amount should be directed by the Ministry of Finance to reduce the federal budget deficit and payments that reduce the debt obligations of the Russian Federation. In this case, amendments to the budget law are not required; the Ministry of Finance draws up and approves an additional budget list.

A budget adjustment is any partial change in the state budget, already approved by the NPC, or local budgets of different levels approved by the people's congresses of the corresponding levels, which occurred due to an increase in expenditures or a decrease in income due to special circumstances in the execution of the corresponding budget, which leads to an excess of the total expenditures total income the initially adopted balanced budget, or to an increase in debt obligations to be undertaken in comparison with the originally adopted budget. The different levels of government should develop plans for budget amendments. Amendment Plan the state budget must be submitted for review and approval to the NPC Standing Committee. Plans for amending the local government budget at and above the county level must be submitted for review and approval to the standing committees of the people's congresses at the appropriate level. Plans for amending the budgets of villages, national settlements and small towns should be submitted for verification and approval to the people's congresses of the appropriate level. No budget adjustment can be made without proper approval. If the amendments to the budget are not approved, the authorities of any level cannot make any decision that will lead to an excess of total expenditures of the total revenues of the initially adopted balanced budget, or to an increase in debt obligations to be assumed in comparison with the originally adopted budget.

In the event that a decision is taken in violation of the provisions of the previous paragraph, the people's congress or the standing committee of the congress of people's representatives of the corresponding level or the authorities of the next higher level will order the decision to be changed or annulled.

Changes budget revenues and costs arising from refunds or subsidies allocated by higher-level authorities at the time of budget execution should not be considered a budget adjustment. Local governments at and above the county level must, upon receipt of the refundable and subsidized funds, report this to the standing committee of the people's congress at the appropriate level. The local authorities of the township, national township and small town must, upon receipt of the refunded and subsidized funds, report this to the people's congresses of the appropriate level.

The budgetary expenditures of a department or unit should be carried out according to budget lines. Any necessary transfer of budget funds under various budget items must be reported in order to obtain permission, in accordance with the provisions of the finance department under the State Council. After the approval of the drafted local authorities the authorities of the plan for amending the budget, these authorities must submit this plan for registration to the local authorities of the next highest level.

In the process of budget execution, its expenditure side can be adjusted depending on the amount of income received and whether it is enough to cover all the foreseen expenses. In order to exclude the adoption of any emergency decisions, the order of actions of the authorities in such situations is regulated by law. For cases when the actual budget revenues turn out to be less than the approved amount, the law provides for two options. If the change in revenues compared to the budget plan is insignificant, the decision to cut budget expenditures is taken by the executive authorities. If the actual budget revenues are significantly lower than planned, it is necessary to amend the budget law, which involves the participation of legislators.

The Budget Code of the Russian Federation establishes the following procedure for reducing federal budget expenditures:

• 1. if in the process of executing the federal budget the underfunding of expenditures does not exceed 10% of the plan, the regime for their reduction is introduced by the highest executive body - the Government of the Russian Federation. At the same time, budget expenditures for all their types and recipients should be reduced in the same proportion. The government's decision must also be made public, the terms of notifying all administrators and budget recipients about it are similar to the previous case. The abolition of the budgetary expenditure cuts regime is carried out by the authority that made the decision to introduce it;
• 2. if the decrease in revenue is such that it requires a reduction in expenditures by more than 10% of annual assignments, changes to the budget plan must be approved by legislators. To this end, the government develops and submits to the State Duma a draft law on amendments and additions to the law on the federal budget. Together with the bill, the following materials are sent to the Duma:
  • · Report on the execution of the federal budget for the past period of the current financial year;
  • Reports federal bodies executive power collecting federal budget revenues for the past period of the current year;
  • Report on the use of funds reserve fund The Government of the Russian Federation and the Reserve Fund of the President of the Russian Federation;
  • · Reports of the Ministry of Finance and other authorized bodies on the provision and repayment of budget credits and loans;
  • Analysis of the reasons and factors that led to the need to make changes and additions to the federal law about the federal budget.

The State Duma considers the draft law in an extraordinary manner in three readings with a total duration of 15 days.

The first reading should take place no later than 2 days after the introduction of the bill. His procedure is as follows. The Duma hears the report of the Government and the report of the Accounts Chamber on the state of receipts of income and funds from borrowing to the federal budget, adopts the draft law as a basis and approves the new basic characteristics of the budget. If the draft law was adopted in the first reading, its second reading must take place not later than 5 days after that. In the second reading, the amount of appropriations for sections and subsections of the functional and departmental classifications of expenditures of the budgets of the Russian Federation is approved. The third reading should take place no later than 3 days after the adoption of the bill in the second reading. In it, the draft law is put to a vote as a whole.

If within the specified period the draft law on amendments and additions to the budget law has not been adopted, the government has the right to proportionally cut federal budget expenditures. This procedure is valid until the adoption of the specified law.

In addition to the insufficient receipts of revenues to the budget, in the process of its execution, the opposite situation may arise, when the actual amount of revenues exceeds the one approved by the law on the budget. The procedure for using additional income is also regulated by the Budget Code. In accordance with it, revenues received in excess of the planned amount should be directed by the Ministry of Finance to reduce the federal budget deficit and payments that reduce the debt obligations of the Russian Federation. In this case, amendments to the budget law are not required; the Ministry of Finance draws up and approves an additional budget list.

Additional income can be used for other purposes, but the procedure for their distribution in this case will be different. Financing of expenditures in excess of the appropriations approved by the law on the federal budget is carried out only after amendments and additions are made to the law. Similar adjustments are made based on the results of budget execution for the quarter (half year), in which the actual income exceeded the planned value. A legislative procedure is also necessary if the expected income is higher than the approved annual targets by more than 10%.

A bill on amendments and additions to the law on the federal budget in connection with the receipt of additional income is being prepared by the Government of the Russian Federation. It is submitted to the State Duma no later than 10 days after the meeting of the Duma considered the report on the execution of the federal budget for the quarter or six months in which the excess income was received.

The draft law is considered by the Duma on an extraordinary basis within 15 days. The procedure for its consideration also includes three readings. If the bill was not adopted on time, the Government has the right to evenly index budget expenditures in all areas after reducing the federal budget deficit and paying off debt obligations.