The financial resources necessary for the implementation of social activities are formed in accordance with the directions social policy. Financing is provided from various sources: the federal budget, budgets of the constituent entities of the federation, municipal budgets; off-budget funds; non-state sources (charitable, private foundations).
For recent years There is a redistribution of financial resources in the social sphere from the FB to territorial budgets and extra-budgetary funds. This trend is observed across all expenditure items.
The Federal Fund for Social Support of the Population, operating since 1992, plays an important role. The main function of the fund is to provide additional funding for federal and republican targeted programs for social support of the population.
The fund's funds are spent on:
providing in-kind assistance free of charge or on a preferential basis;
provision of subsidies for the provision of medical care;
payment of utilities;
providing night accommodation for homeless citizens;
development of social and labor rehabilitation and vocational guidance;
creation of additional jobs.
providing assistance to large, low-income families, children in need state support, disabled children.
State system Social protection of the population is financed largely from local budgets.
There is a division of powers between different levels of government.
Federal authorities:
establish a unified system of minimum social guarantees;
form extra-budgetary state funds;
finance social infrastructure facilities under their jurisdiction;
determine the conditions and procedure for compensating the population’s monetary income in connection with inflation.
Regional and local authorities:
develop and implement regional social programs, increasing guarantees whenever possible;
provide social support to citizens;
create conditions for the activities of charitable foundations;
finance social institutions under their subordination.
From the Fund for Financial Support of Regions (created in 1994), financial resources are allocated to provide assistance to weak regions. Funds can be sent in the form of transfers (transfer, transfer) - monetary assistance from the federal budget to provide ongoing financial assistance, covering minimum justified expenses through subsidies. Funds are also sent in the form of subventions (to come to the rescue) - to finance federal programs to equalize the level of socio-economic development of regions.
Transfers are transferred to the authorities of the constituent entities of the Russian Federation, which, in turn, spend the allocated funds at their own discretion. Since transfers do not have a specific purpose.
When forming transfers, they refer to the “equalization” formula. To increase the current income of subjects to 95% of average per capita income in the Russian Federation, an adjustment coefficient is used: Kv=Bo/Bs*100%, which means the ratio of budget expenditures per person in an economic region to average per capita expenditure per person in all regions.
There are two main ways of funding social work. The first method is direct financing, i.e., funds are earmarked for financing social work (for example, federal targeted programs).
The second method is indirect financing by reducing the withdrawal of funds (preferential taxation, lending, pricing for socially significant goods and services).
Direct financing allows funds to be directed to solving priority social problems. The state sets priorities for adoption and implementation social programs. At the same time, their benefits to society and the economic efficiency of the invested funds are taken into account.
Financing and resource provision of the social protection system has a three-level mechanism of social guarantees when providing cash payments:
differentiated socially guaranteed level of provision, supported by the state at the expense of the Pension Fund and the Social Insurance Fund;
provision of funds above the state level through regional social security funds and territorial funds for social support of the population;
non-state, professional systems - the amount of payments depends on the insurance contribution of citizens.
The basis for financing the social protection system is the current legislation: federal laws“On the basics of social services for the population in the Russian Federation”, “On social services for elderly and disabled citizens”, “On veterans”, etc. Sources of funding government agencies social protection systems are the FB and the budgets of the constituent entities of the Russian Federation. Municipal institutions receive funds from local budgets and the Federal Budget as subsidies.
Additional financing is also possible: funds from targeted social funds, income from economic activities, charitable contributions, payment for social services.
Disadvantages of social sector financing:
financial resources are managed by various ministries;
scientific criteria for the efficiency of spending allocated funds have not been developed;
The powers of budgets at different levels are not clearly divided;
budget items to ensure state social guarantees are not protected by law.
Questions and tasks for self-control:
Name and disclose the links of public finance.
What is the state budget?
List the directions for spending budget funds.
Give the concept, elements and basic principles of tax formation
Expand the functions of taxes.
What is the "Laffer curve"?
What is the basis for funding social work?
List the sources of funding for social work.
What methods of financing social work do you know?
Describe the main functions of extra-budgetary social funds.
List the powers of government at various levels in matters of financing social work.
Give the concept of transfers and a guideline for their formation.
What is the financing and resource provision of social protection?
Name the disadvantages of financing the social protection system.
There are two ways to finance social work:
Direct – funds are earmarked for financing social work;
Indirect (reducing withdrawals of funds). Carried out through:
a) preferential taxation (enterprises employing the labor of people with disabilities, etc.),
b) preferential lending (purchase of housing for large families, etc.),
c) preferential pricing for socially significant types of goods and services (for veterans, children and low-income families, etc.)
In direct financing, program-targeted financing is actively used. Federal and regional target programs are aimed at providing targeted assistance to families, the elderly and other citizens of socially vulnerable categories. In recent years, there has been a redistribution of financial resources in the social sphere from the Federal Fund to territorial budgets and extra-budgetary funds.
The formation of a system of financing and resource support for the social protection system of the population provides for a three-level mechanism of social guarantees:
At the expense of the centralized Pension Fund and Social Insurance Fund
At the expense of state decentralized (regional, collective) social security funds and territorial support funds,
Non-state, professional pension and insurance systems, where the amount of insurance payments depends only on insurance premium citizens.
Financing of the municipal sector of the social service system is carried out at the expense of local budget funds and allocations directed to the municipal sector from the federal budget and budgets of constituent entities of the Russian Federation as subsidies for the maintenance and development of a network of social service institutions, for payment for special services included in the federal and territorial lists of guaranteed state social services. The amount of subsidies will be determined annually upon approval of the relevant budgets.
Additional extra-budgetary sources of financing social work are increasingly becoming non-state funds - charities, local community foundations, development funds, etc. These funds are included in the NPO sector, which is also powerful source financing of social work. For example, its share in the US gross national product is more than 4%. In Russia, the contribution of the non-profit sector to the socio-economic development of the state is not calculated
3.1.4.Fundraising in the system of material and financial support for social work
FUNDRAISING (eng. fundraising) - activities to raise funds, the formation of various financial and monetary funds, in particular, for charitable or educational purposes. Some types of modern fundraising: fundraising in local communities; fundraising through large industrial companies systematically engaged in charitable activities, participation in competitions for grants from charitable foundations; individual fundraising. When developing a fundraising strategy, it is important to realistically assess which sources to turn to in a given case and how to profitably present your project. Thus, keyword for many fundraising technologies is a project. The project is always aimed at solving a problem faced by target groups, actual and potential users, and the public. A project is a tool for solving a problem, a specific activity with a specific deadline, budget, and implementation mechanism. The project always has a result. There is always a qualified and united team to carry out the project.
Among the distinctive features of the project are:
The presence of a problem (need) to solve which some consistent activity is being undertaken. It is important to understand that a project problem, as a rule, is broader than organizational problems that arise within an organization or group individuals. It belongs to the category of socio-economic or civil problems, such as, for example, problems of access to information, ensuring equal rights and equal opportunities for men and women, reducing the level of poverty of certain social groups, the need to develop certain services, etc.;
Clear start and finish dates for work;
Resources specifically allocated for the implementation of the project;
Predictable quantitative and qualitative results determined before the start of work.
The structure and content of the project are largely determined by the grantor or other sponsor of the idea. However, there is a standard project description. Its sections allow you to fairly fully describe the essence of the project and the necessary resources. Typically, the project includes:
I. Title page
Full name of the educational institution
Project topic name
List of students who developed the project
Year of completion of work
II. Introduction (passport and abstract of the project)
Project topic name
Project passport (geography of the project - where the work on the project will take place; target social group (who will receive help or support); Partners participating in the project; Duration and duration of the project (months); Cost of the project (required, available, volunteer work); abstract of the project (15 lines)
III. Project structure
Justification of the relevance of the project topic – 0.5-1 page.
Goals and objectives of the project – 0.5 pages.
Design solution (method of implementing the idea) – 0.5-1 page.
5. Project schedule. – 1-2 pages
6. Procedure and content of project evaluation (details of expected results and means of their verification) – 0.5 -1 page.
7. Assessment of the resources necessary for the implementation of the project - page 1-2.
List of resources
Project budget (estimate)
8. Project risks and measures to overcome them -0.5-1 page.
Applications (optional)
The special role of fundraising as an effective financing system in modern conditions development of social work, requires the future specialist to have the skills to participate in the social project activities of institutions involved in solving problems of social protection and well-being of the population.
3.2. Organizational and economic foundations of social work3.2.1. Sectoral classification of subjects of social workLike any activity, social work is implemented by various entities within certain structures, designed in this case to ensure the task of improving the quality of life of people through the production of intangible services. Organizationally, these structures are represented by enterprises, organizations, institutions of various organizational and legal forms. which are represented by three sectors: state and municipal, commercial, non-profit. This grouping determines ownership, work goals, features of taxation, financing, systems of relations with the state, and the specifics of social work. Each of these sectors contributes to social work.
Commercial enterprises implement a certain range of social work, determined by the level of their social responsibility. Basic level – social programs for enterprise employees, veterans, and pensioners. The second level is social programs for the families of its employees. And, finally, for enterprises that actively implement social responsibility - social programs in the territories of their presence and for Russia in general. The state (municipal) sector is represented by budgetary (state, municipal) institutions. These institutions have permanent guaranteed funding, which is practically tied not to the quality of work, but to the quantity of services provided. Budget institutions have, albeit often outdated, but still important infrastructure, including buildings, equipment, cars, etc. It is important to note that recently in such areas as healthcare and education there has been a tendency towards infrastructure development within the framework of various national projects and programs, Reforms are being actively carried out to ensure the quality of services provided. As part of the reform of the budget system based on new approaches to development public administration and aimed at increasing the efficiency of providing state and municipal services, a new concept was introduced - a government institution. This is a state (municipal) institution that provides state (municipal) services, performs work and (or) performs state (municipal) functions in order to ensure the implementation of the powers of authorities or bodies local government, the financial support of whose activities is carried out from the budget on the basis of the budget estimate.
At the end of the twentieth century, the non-profit sector began to develop rapidly throughout the world. Researchers see one of the reasons for this breakthrough in the growth of citizen activity and in the rethinking of the traditional two-factor “market” - “state” model. The idea of a non-profit non-state sector arose as a result of the search for a “middle way” between the state and the market in matters of production and distribution of socially significant goods. The non-profit sector is an effective provider of socially significant services, distinguished not only by its ability to quickly respond to the needs of the population, new social challenges and problems, but also by low administrative costs and innovations in the social sphere.
3.2.2. Organizational and legal forms of subjects of social workThe activities, procedure for creation, reorganization and liquidation of any enterprise are carried out on the basis of the Civil Code of the Russian Federation and special Federal Laws. The activities of commercial sector enterprises are focused on generating profits, which are distributed, after all mandatory payments, at the discretion of the founders. Part of it can be used to implement the social responsibility of the enterprise. Some costs of social programs may be included in the costs of the enterprise. There are various organizational and legal forms of commercial structures that determine the order of relationships between the founders, the degree of their responsibility for work efficiency, management system, etc. (Closed joint-stock company, open joint-stock company, etc.).
The financial resources necessary for the implementation of social activities are formed in accordance with the directions of social policy. Financing is provided from various sources: the federal budget, budgets of the constituent entities of the federation, municipal budgets; off-budget funds; non-state sources (charitable, private foundations).
In recent years, there has been a redistribution of financial resources in the social sphere from the Federal Fund to territorial budgets and extra-budgetary funds. This trend is observed across all expenditure items.
The Federal Fund for Social Support of the Population, operating since 1992, plays an important role. The main function of the fund is to provide additional funding for federal and republican targeted programs for social support of the population.
The fund's funds are spent on:
providing in-kind assistance free of charge or on a preferential basis;
provision of subsidies for the provision of medical care;
payment of utilities;
providing night accommodation for homeless citizens;
development of social and labor rehabilitation and vocational guidance;
creation of additional jobs.
providing assistance to large, low-income families, children in need of government support, and disabled children.
The state social protection system is financed largely from local budgets.
There is a division of powers between different levels of government.
Federal authorities:
establish a unified system of minimum social guarantees;
form extra-budgetary state funds;
finance social infrastructure facilities under their jurisdiction;
determine the conditions and procedure for compensating the population’s monetary income in connection with inflation.
Regional and local authorities:
develop and implement regional social programs, increasing guarantees whenever possible;
provide social support to citizens;
create conditions for the activities of charitable foundations;
finance social institutions under their subordination.
From the Fund for Financial Support of Regions (created in 1994), financial resources are allocated to provide assistance to weak regions. Funds can be sent in the form of transfers (transfer, transfer) - monetary assistance from the federal budget to provide ongoing financial assistance, covering minimum justified expenses through subsidies. Funds are also sent in the form of subventions (to come to the rescue) - to finance federal programs to equalize the level of socio-economic development of regions.
Transfers are transferred to the authorities of the constituent entities of the Russian Federation, which, in turn, spend the allocated funds at their own discretion. Since transfers do not have a specific purpose.
When forming transfers, they refer to the “equalization” formula. To increase the current income of subjects to 95% of average per capita income in the Russian Federation, an adjustment coefficient is used: Kv=Bo/Bs*100%, which means the ratio of budget expenditures per person in an economic region to average per capita expenditure per person in all regions.
There are two main ways of funding social work. The first method is direct financing, i.e., funds are earmarked for financing social work (for example, federal targeted programs).
The second method is indirect financing by reducing the withdrawal of funds (preferential taxation, lending, pricing for socially significant goods and services).
Direct financing allows funds to be directed to solving priority social problems. The state sets priorities for the adoption and implementation of social programs. At the same time, their benefits to society and the economic efficiency of the invested funds are taken into account.
Financing and resource provision of the social protection system has a three-level mechanism of social guarantees when providing cash payments:
differentiated socially guaranteed level of provision, supported by the state at the expense of the Pension Fund and the Social Insurance Fund;
provision of funds above the state level through regional social security funds and territorial funds for social support of the population;
non-state, professional systems - the amount of payments depends on the insurance contribution of citizens.
The basis for financing the social protection system is the current legislation: federal laws “On the Basics of Social Services for the Population in the Russian Federation”, “On Social Services for Elderly and Disabled Citizens”, “On Veterans”, etc. The sources of financing for state institutions of the social protection system are the Federal Bank and budgets of the constituent entities of the Russian Federation. Municipal institutions receive funds from local budgets and the Federal Budget as subsidies.
Additional financing is also possible: funds from targeted social funds, income from economic activities, charitable contributions, payment for social services.
Disadvantages of social sector financing:
financial resources are managed by various ministries;
scientific criteria for the efficiency of spending allocated funds have not been developed;
The powers of budgets at different levels are not clearly divided;
budget items to ensure state social guarantees are not protected by law.
Questions and tasks for self-control:
Name and disclose the links of public finance.
What is the state budget?
List the directions for spending budget funds.
Give the concept, elements and basic principles of tax formation
Expand the functions of taxes.
What is the "Laffer curve"?
What is the basis for funding social work?
List the sources of funding for social work.
What methods of financing social work do you know?
Describe the main functions of extra-budgetary social funds.
List the powers of government at various levels in matters of financing social work.
Give the concept of transfers and a guideline for their formation.
What is the financing and resource provision of social protection?
Name the disadvantages of financing the social protection system.
Types and main sources of financing
The state, as the main subject of social work and the social protection system, exercises control over the economy of the social sphere through financial policy.
Financial regulators include the processes of distribution and redistribution of financial resources, funds, and price regulation.
The financial system of the social sphere is very complex and has a branched structure.
The concept of “finance” means “money”, covering the totality of all types of money in all the variety of forms of their existence and movement. Or the concept of “finance” can be defined as funds and funds in various types and forms of their existence and movement (money, securities, currency, etc.).
Funds may belong to the state and its authorities, territories and local authorities, enterprises, organizations, groups and individuals.
Financial relations- an integral part of economic relations, expressing interaction in monetary form between entities economic system, including the social sphere, at various levels.
The financial system is determined by the socio-economic type of the state and itself has a significant impact on it.
Thus, finance, along with the means of monetary circulation, refers to systems of education, formation, distribution, movement, and use of money. In economics, finance refers to the monetary system, which includes both all types of funds and the transformations that occur with them in the process of application.
Finance affects all elements of the state’s economic system. Specific forms of financial relations are a powerful tool for the state to influence processes, a means of interaction and coordination of economic interests of industries, regions, social classes, population groups and individual citizens.
Finance is designed to help regulate economic and social processes.
Public finance- these are funds managed by state (federal), republican and local bodies.
Enterprise finance They are used for production and entrepreneurial economic activities.
Public finances- These are the personal funds of citizens.
Based on the general scheme of financial interactions in the economy, the most typical internal connections and financial relations at different levels should be highlighted:
The state is an enterprise and the enterprise is a state;
The state is the population and the population is the state;
State - state;
Enterprise - population and population - enterprise;
Enterprise - enterprise and population - population.
The “state-state” connection characterizes the redistribution of funds from one budget channel to another. The enterprise-enterprise relationship reflects financial flows between enterprises. And the “population-population” connection determines the movement of funds between individual groups of the population, families, and citizens.
Finance in social work- the most important component of the entire financial system of the state. This is a system for providing, organizing and spending funds in the social sphere.
The main functions of financing are as follows:
DISTRIBUTION,
Stimulating
AND CONTROLLING.
Their implementation in the social sphere is carried out on the basis of the following principles:
1) The principle of using all financial and economic factors to increase the level of social protection and the formation of social funds means the maximum possible degree of use of the main measures of economic reform (privatization, improvement of the tax system, lending, etc.) for social purposes.
2) The principle of social response involves a revision of social standards in the allocation of funds in connection with inflation, rising costs of living, and increasing budget costs living wage, changes in the level of employment of the working-age population and an increase in material resources for social protection.
3) The principle of a differentiated approach when determining the size of allocations and social assistance, depending on the specifics of the region and local conditions.
4) The principle of independence of local authorities in the accumulation and use of funds in accordance with the law.
5) The criterion of economic efficiency, which is largely determined by the volume of social expenditures and the amount of contributions for their financing, correlated with all macroeconomic indicators (gross domestic product, wage fund, personal income).
6) Taking into account state minimum standards, within which funds should be allocated for basic social positions (standard of living, science, culture, education, medicine, ecology).
7) The advantage of the social sphere in the distribution of additional budget revenues and the policy of rapid growth of social expenditures compared to other types of budget expenditures.
The formation of a system of expenditures on social programs is carried out in accordance with the main directions of the state’s social policy.
Funding for social protection measures comes from various sources:
I. State budget, including:
Federal budget;
Budgets of federal subjects (republics, territories, autonomous regions, etc.);
Municipal budgets.
II. State extra-budgetary funds, including:
Pension Fund;
Social Insurance Fund;
Compulsory Health Insurance Fund;
Employment Fund;
Republican (federal) and territorial funds for social support of the population.
III. Non-state sources of financing (private and public charitable foundations, etc.).
Federal and territorial budgets are the determining form of financial planning. Without budgetary and financial planning, as the experience of states with developed market relations shows, market development is almost impossible.
The construction of inter-budgetary relations for Russia is of exceptional importance due to the large number of subjects of the Federation (89) and budgets of local authorities (about 30 thousand)
The budget is a set, a mass of financial resources, funds available to any economic entity - state, territory, enterprise, family. In addition, a budget is a list of income and expenses for a certain period (year, quarter, month).
Funds are allocated according to areas (Table 12) and within the framework of federal and regional programs.
Table 12
Expenditures of the consolidated budget and extra-budgetary funds, % of GDP
As can be seen from table. 12, in recent years there has been a redistribution of financial resources in the social sphere from federal to territorial budgets and extra-budgetary funds. This trend is observed in almost all items of social expenditure, including expenditure on culture, education, healthcare, and especially in the social protection system, including social insurance and social security (Table 13).d.
Table 13
Expenditures for social purposes, % of GDP*
| Expense areas** | Years | Total | ||||
| federal budget | territorial budgets | off-budget funds | ||||
| Housing and communal services | 4,60 3,66 | : | 4,60 3,66 | : | ||
| Public transport | - | - | 0,56 0,75 | - | ||
| Education | 3,58 4,03 4,36 3,40 | 1,21 0,76 0,67 0,52 | 2,37 3,27 3,49 2,88 | - | ||
| Culture, art and media | 0,61 0,61 0,73 0,45 | 0,31 0,20 0,26 0,07 | 0,30 0,41 0,47 0,35 | - | ||
| Healthcare and physical culture | 2,45 3,58 4,09 3,41 | 0,27 0,34 0,37 0,21 | 2,18 2,82 2,76 2,33 | 0,00 0,42 0,96 0,87*** | ||
| Pension provision | 4,83 6,06 5,92 5,33 | - | - | 4,83 6,06 5,92 5,33 | ||
| Expense areas** | Years | Total | Source of funding, including | |||
| federal budget | territorial budgets | off-budget funds | ||||
| Employment and unemployment | 0,06 0,22 0,38 0,33 | - | - | 6,06 0,22 0,38 0,33 | ||
| Other social expenses | 1,16 1,51 2,39 2,25 | 0,09 0,19 0,16 0,23 | 0,26 0,36 1,04 1,02 | 0,81 0,96 1,19 1,00 | ||
| Total: (excluding subsidies for housing and communal services and public transport) | 12,69 16,01 17,87 15,14 | 1,88 1,49 1,66 1,03 | 5,11 6,86 7,76 6,58 | 5,70 7,66 8,45 7,53 | ||
| For reference: social expenditures as a percentage of total government expenditures at the corresponding level - (excluding subsidies for housing and communal services and public transport) | 27,5 37,5 39,5 41,0 | 7,6 7,3 7,6 5,5 | 42,0 42,5 44,3 45,3 | 88,0 85,2 91,8 100,0 | ||
| * Author’s calculations based on data from the Ministry of Finance of the Russian Federation and federal extra-budgetary funds. When calculating indicators for 1992-1994. We used GDP values revised by the State Statistics Committee of the Russian Federation with the participation of the World Bank in 1996. ** This table does not take into account all areas of spending for social purposes. In particular, due to the lack of accurate data, it omits government spending on housing and social infrastructure. *** Author's rating. | ||||||
In a transition economy, budget expenditures for social needs are of particular importance. This is primarily due to the fact that during this period there is a sharp drop in the standard of living of the population due to inflation, as well as the real income of the bulk of the population (Table 14).
Table 14
Indices of main socio-economic indicators % by 1995
| 1991 | 1992 | 1993 | 1994 | 1995 | 995 for reference | ||
| Consumer Price Index (compared to December of the previous year) | 2.6 rub. | 26.1 rub. | 9.4 rub. | 3.2 rub. | 2.3 rub. | 1787.3 rub. | 4652.2 rub. |
| Average monthly wages** | |||||||
| Average per capita cash income** | |||||||
| Medium size assigned monthly pension" | 94* | 81* | 56* | 39* | |||
| Population with incomes below the subsistence level | 2.6 rub* | 8.2 r | 93,4 | 71,0 | 109,9 | 6.0 RUR | 15.9 RUR |
| *Estimate **In real terms (including consumer price index) |
However, government budget expenditures for social purposes are not growing. For example, in 1995, 31.4 trillion from the federal budget should have been spent on social and cultural events. rubles, in fact, expenses amounted to 18.6 trillion. rub. or 59.2% of the approved volume. In 1997, due to the sequestration of the state budget, social spending was significantly reduced.
The transition to market relations requires limiting the commanding role of the state in the financial and credit sphere and increasing the role of extra-budgetary funds. One of the fundamental features here is that extra-budgetary funds are no longer purely financial institutions, but financial and credit, since the use of part of the funds of these funds is carried out on a commercial basis.
Important role The Republican (federal) Fund for Social Support of the Population, created in 1992, plays a role in the formation of financial sources of social support for the population and especially the most needy citizens, providing additional extra-budgetary funding for federal and republican targeted programs for social support of citizens, activities of territorial funds in connection with extreme situations.
Funds from republican (federal) and territorial funds are spent on:
Providing assistance in the form of basic necessities (clothing, shoes, food) free of charge or at reduced prices;
Providing subsidies for the purchase of medicines, prosthetic and orthopedic products;
- “utility fees;
Providing night accommodation for homeless citizens;
Development of social and labor rehabilitation and vocational guidance;
Creation of additional jobs for citizens with disabilities and other activities.
The Republican Fund for Social Support of the Population finances programs in many regions of Russia to provide assistance to large and low-income families, orphans, and disabled children.
The state social protection system is largely supported by local resources. The main source of formation of budgets at all levels, especially local budgets, are taxes.
There is a certain division of powers between federal and regional authorities in financing the social protection system and the social sphere in general.
Thus, federal authorities:
Establish a unified system of guarantees in the field of pensions, benefits, wages, medical care, education, and culture;
Off-budget state funds are formed: pension fund; employment fund; compulsory health insurance fund; population social support fund;
They finance social infrastructure facilities that are under federal jurisdiction;
Determine the conditions and procedure for compensating the population’s cash income due to inflation.
The powers of regional and local authorities include:
Taking into account local conditions, the development and implementation of regional social programs, finding opportunities to increase the minimum guarantees established at the federal level;
Determination and implementation of the procedure for providing social support to vulnerable segments of the population, creating conditions for the activities of charitable organizations and public foundations; ensuring the functioning of social infrastructure institutions under the jurisdiction of local authorities.
It should be noted that with the help of the state mechanism for the distribution of finances, stronger regions help weaker ones. In 1994, the Regional Financial Support Fund was created as part of the federal budget. Its share in federal budget expenditures in 1996 was 9%.
Transfers from this fund can go through two channels:
In the form of transfers (monetary assistance provided from the federal budget), determined according to uniform principles. Their purpose is to provide ongoing financial assistance, to cover minimum justified expenses through subsidies;
In the form of subventions aimed at financing federal programs to equalize the level of socio-economic development of regions.
The Financial Support Fund for the Subjects of the Russian Federation is formed from 15% of all tax revenues to the budget, excluding import customs duties.
Transfers have no intended purpose. They are transferred to the administration of the relevant entity, which spends the allocated funds at its own discretion.
The main directions for spending funds transferred from the federal budget to the budgets of the constituent entities of the Federation have been determined, and a normative and calculation method for distributing financial assistance across regions (transfers) has been introduced.
When forming transfers, the “equalization” formula is used, which involves raising the current budget revenues of the constituent entities of the Federation to 95% of average per capita income in the Russian Federation and adjusting them by an adjustment factor (the ratio of budget expenditures per person in an economic region to the average per capita in all regions).
B 2 100%,
where K in is the leveling coefficient;
B 1 - budget expenditures for the economic region in calculation
for 1 person; B 2 - average per capita budget expenditures per person.
The 1996 budget provided for transfers to 75 subjects of the Federation in the amount of 58.6 trillion. rub. against 28.4 trillion. rub. in 1995
Subventions increased from 1.7 trillion. rub. in 1995 to 2.2 trillion. rub. in 1996
The foundations for a more realistic fiscal federalism were laid in 1994 with the signing of a bilateral agreement by federal and regional authorities.
The ongoing budget policy has not yet led to the equalization of the real position of the subjects of the Federation in the country's budget system. About 10 donor regions contain all other regions. When distributing financial flows between levels of the budget system, the principles of normative and accounting regulation are often violated, and privileges and benefits are retained for some regions.
There are two main ways to finance social work:
Direct financing, when funds are earmarked for financing social work;
Indirect financing (reducing withdrawals of funds), carried out in three ways:
1) preferential taxation;
2) preferential lending;
3) preferential pricing for socially significant types of goods and services.
In modern conditions, the effectiveness of social work largely depends on the accumulation of financial resources and efforts to provide targeted support to certain social groups of the population. An important place in solving this problem is given to targeted financing of federal target programs, one of which is the “Children of Russia” program. Funding for this program is provided as a separate line in the state (federal) budget.
Federal and regional targeted social programs should be aimed primarily at providing targeted social protection for families with children, the elderly, disabled people and other socially vulnerable categories of people.
Program-targeted financing contributes to the accumulation of funds to solve priority social problems, preventing their dissipation and ineffective use. The state must set priorities for the adoption and implementation of social programs, taking into account their maximum benefit to society and the economic efficiency of invested funds.
The formation of a system of financing and resource support for the social protection system of the population provides for a three-level mechanism of social guarantees when providing cash payments: 1) a differentiated socially guaranteed level of provision, supported by the state at the expense of the centralized pension fund and social insurance fund; 2) provision of means of support above the state level at the expense of state decentralized (regional, collective) social security funds and territorial funds for social support of the population; 3) the third level of social guarantees created by non-state, professional pension and social insurance systems, where the amount of cash payments depends only on the insurance contribution of citizens, accumulated through contributions from the entrepreneur or the workers themselves.
Financing of the social protection system is carried out in accordance with current legislation. Recently, its legal basis has been strengthened. Laws have been adopted: “On Veterans”, “On Social Services for Elderly and Disabled Citizens”, “On the Basics of Social Services for the Population”, “On State Benefits for Citizens with Children”, etc. These regulatory documents are used in developing development forecasts and preparing projects budgets and their implementation.
The legal basis for social work was the law “On the Fundamentals of Social Services to the Population”. According to this law, social services are financed from:
Standard deductions from the budget of the appropriate level in the amount of at least 2% of the budget expenditures;
Revenues from the fund for social support of the population by allocating part of the funds for the purpose of social support for families with children;
Federal budget funds for the implementation of statutory tasks;
Finance as a result of the redistribution of funds between committees and departments of services at various levels for the implementation of regional, city and district programs;
Additional funds from the regional and local budgets to provide targeted measures to match income with the rising cost of living;
Income from paid services and from the economic activities of service institutions and enterprises;
Funds from the privatization of state property, as well as special sources: income from video salons, bars, slot machines and other leisure industries; from commercial stores, private and cooperative rental of municipal property, payments for land and other natural resources, etc.;
Charitable donations and contributions from enterprises, public organizations and individuals, proceeds from charitable events.
Funds of specialized services (centers) are formed depending on the type of activity and the type of organization of their financing: budgetary; self-supporting or mixed.
When the center organizes paid services to the population, the profit received is directed to the further development of its core activities.
The main sources of funding for the public sector of the social service system for elderly citizens and people with disabilities are the federal budget and the budgets of the constituent entities of the Russian Federation.
Financing of the municipal sector of the social service system is carried out at the expense of funds from local budgets and allocations directed to the municipal sector from the federal budget and budgets of constituent entities of the Russian Federation as subsidies for the maintenance and development of a network of social service institutions, as well as for payment for special services included in the federal and territorial lists of state-guaranteed social services.
The amount of subsidies is determined annually upon approval of the relevant budgets by the Government of the Russian Federation and executive authorities of the constituent entities of the Russian Federation.
Additional extra-budgetary sources of financing measures for social services for elderly citizens and people with disabilities are:
Funds coming from targeted social funds, including funds for social support of the population;
Bank loans and funds from other creditors;
Income from economic and other activities of structural units of the social protection system;
Income from securities;
Funds received from elderly and disabled citizens as payment for social services;
Charitable contributions and donations.
In inpatient social service institutions, since 1996, a pension fund has been identified as a source of financing in addition to the budget. Currently, pensioners living in boarding homes and other similar institutions are accrued a full pension and sent to these institutions for additional funding from the funds remaining after payment of the due portion in hand - from 50 to 75% of the transferred pension.
The main model of non-stationary social service institutions has become centers, which are organized and maintained using funds provided by local budgets for social services, as well as income from economic activities and other revenues provided for by the legislation of the Russian Federation.
Financial support for the activities of the employment service is provided by the State Employment Promotion Fund. The funds of this fund are generated through mandatory contributions from employers, regardless of their form of ownership and business, mandatory insurance contributions from the earnings of employees within the limits of the total amount of taxes levied, and funds from the republican and local budgets.
Additional sources of revenue may be voluntary contributions from Russian and foreign enterprises, public organizations and citizens, funds collected from employers for violating the requirements provided for by the Law “On Employment in the Russian Federation”, adopted in 1996.
At the same time, up to 90% of the funds generated in the territories remain at the disposal of the republican fund, the rest are transferred to the federal part. In 1995, the federal part of the Employment Fund received 17.5% of the funds. The State Employment Promotion Fund is being formed as an independent financial system.
Since 1993, a system of compulsory health insurance based on a medical policy has been introduced in Russia. The system of mutual settlements throughout the entire chain of compulsory health insurance (CHI) is built on this financial document. The basic compulsory medical insurance program was adopted by Decree of the Government of the Russian Federation of January 23, 1992 No. 4. The territories of the Russian Federation were given the right to adjust this document only towards improvement.
More and more important additional source Non-state funds are becoming the source of funding for the social sphere. Their funds are generated through:
Contributions from the founders of charitable organizations;
Membership fees (for membership-based charities);
Charitable donations provided by citizens and legal entities in cash or in kind;
Income from non-operating transactions, including income from securities;
Income from activities to attract resources (entertainment, cultural, sporting events, campaigns to collect charitable donations, charity lotteries and auctions, sales of property and donations received from philanthropists in accordance with their wishes, etc.);
Income from the legally permitted entrepreneurial activity;
Revenues from budgets of all levels and extra-budgetary funds;
Income from the activities of business entities established by a charitable organization;
Volunteer labor;
Other sources not prohibited by law.
The activities of charitable foundations are based on the Law “On Charitable Activities and Charitable Organizations” dated August 11, 1995 No. 135-FZ.
Already in 1991, after the release of the law on public associations, the social movement, including charity and mercy.
It is typical that in a market economy developed countries Charitable organizations are included in the so-called “third sector” of the economy, along with the commercial and public sectors. Its share in the US gross national product, for example, is 4%. Charitable organizations receive their main funds not from donations (they make up 3-5% of their budget), but from the state. Almost half of their budget comes from government funding. The state funds charities mainly through a system of contracts. At the same time, local resources are actively involved, more economical spending of funds and high efficiency are ensured.
There are currently more than 500 charitable organizations operating in the Russian Federation. Most of which is engaged in providing assistance to the disabled, large and single-parent families. Since these organizations do not have a large budget, their activities are aimed at social support and socio-cultural programs.
The system of financing the social sphere during the formation of market relations, while undergoing significant changes, is not without many shortcomings and needs to solve many problems.
Thus, the management of the expenditure of limited financial resources allocated to social protection is under the jurisdiction of various ministries and committees and cannot always be coordinated towards the final goal. Scientific criteria for the efficiency of spending allocated funds and their dependence on improving the social well-being of the population have not been developed. The system for forming local budgets on the basis of self-financing and interest in the development of local entrepreneurship, a clear allocation and delimitation of the volume of financial resources in budgets of different levels, is imperfect. Budget items to ensure state social guarantees are not protected by law. There are other problems as well.
Thus, for the development and successful functioning of the social protection system, further improvement of the principles and practices of its financing is necessary.
The financial resources necessary for the implementation of social activities are formed in accordance with the directions of social policy. Financing is provided from various sources: the federal budget, budgets of the constituent entities of the federation, municipal budgets; off-budget funds; non-state sources (charitable, private foundations). In recent years, there has been a redistribution of financial resources in the social sphere from the Federal Fund to territorial budgets and extra-budgetary funds. This trend is observed across all expenditure items. The Federal Fund for Social Support of the Population, operating since 1992, plays an important role. The main function of the fund is to provide additional funding for federal and republican targeted programs for social support of the population.
The fund's funds are spent on:
1. provision of in-kind assistance free of charge or on a preferential basis;
2. provision of subsidies for the provision of medical care;
3. payment of utilities;
4. providing night accommodation for homeless citizens;
5. development of social and labor rehabilitation and vocational guidance;
6. creation of additional jobs.
7. providing assistance to large, low-income families, children in need of government support, and disabled children.
The state social protection system is financed largely from local budgets.
There is a division of powers between different levels of government.
Federal authorities:
1. establish a unified system of minimum social guarantees;
2. form extra-budgetary state funds;
3. finance social infrastructure facilities under their jurisdiction;
4. determine the conditions and procedure for compensating the monetary income of the population in connection with inflation.
Regional and local authorities:
1. develop and implement regional social programs, increasing guarantees if possible;
2. provide social support to citizens;
3. create conditions for the activities of charitable foundations;
4. finance social institutions under their subordination.
From the Fund for Financial Support of Regions (created in 1994), financial resources are allocated to assist weak regions. Funds can be sent in the form of transfers (transfer, transfer) - monetary assistance from the federal budget to provide ongoing financial assistance, covering minimum justified expenses through subsidies. Funds are also sent in the form of subventions (to come to the rescue) - to finance federal programs to equalize the level of socio-economic development of the regions. Transfers are transferred to the authorities of the constituent entities of the Russian Federation, which, in turn, spend the allocated funds at their own discretion. Since transfers do not have a specific purpose. When forming transfers, they refer to the “equalization” formula. For
To increase the current income of subjects to 95% of average per capita income in the Russian Federation, they use the correction coefficient: Kv=Bo/Bs*100%, which means the ratio of budget expenditures per person in an economic region to average per capita expenditure per person in all regions.
There are two main ways of funding social work.
The first method is direct financing, i.e., funds are earmarked for financing social work (for example, federal targeted programs).
The second method is indirect financing by reducing the withdrawal of funds (preferential taxation, lending, pricing for socially significant goods and services).
Direct financing allows funds to be directed to solving priority social problems. The state sets priorities for the adoption and implementation of social programs. At the same time, their benefits to society and the economic efficiency of the invested funds are taken into account. Financing and resource provision of the social protection system has a three-level mechanism of social guarantees when providing cash payments:
1. differentiated socially guaranteed level of provision, supported by the state at the expense of the Pension Fund and the Social Insurance Fund;
2. provision of funds above the state level through regional social security funds and territorial funds for social support of the population;
3. non-state, professional systems - the amount of payments depends on the insurance contribution of citizens.
The basis for financing the social protection system is the current legislation: federal laws “On the Fundamentals of Social Services for the Population in the Russian Federation”, “On Social Services for Elderly and Disabled Citizens”, “On Veterans”, etc. Sources of financing for state institutions of the system
social protection are the FB and the budgets of the constituent entities of the Russian Federation. Municipal institutions receive funds from local budgets and the Federal Budget as subsidies. Additional financing is also possible: funds from targeted social funds, income from economic activities, charitable contributions, payment for social services.
Disadvantages of social sector financing:
1. financial resources are under the jurisdiction of various ministries;
2. scientific criteria for the efficiency of spending allocated funds have not been developed;
3. the powers of budgets at different levels are not clearly divided;
4. Budget items to ensure state social guarantees are not protected by law.
