Legal Regulation of the Priority of Budget Expenditures

The subject of the study is questions of the priority distribution of budget expenditures in legal acts at various levels of the budgetary system of the Russian Federation. The Budget Code obliges the state authorities and local self-government bodies to formulate the registers of expenditure obligations. Russian researchers pay attention to the need for legislative formation of the structure of budget expenditures, which will stimulate further economic growth and solvent demand of the population. Some foreign researchers have analyzed the interdependence between the distribution of public expenditures and their functional composition. They expected a positive impact of expenditures, for example, on health in consolidated budgets. Theoretically, the rules for maintaining the register of expenditure obligations for the budgets of the budget system are established by the government; they are only instructions on the use of the list of regulations. The rules for the compilation of registers do not presume focusing on the priority of meeting expenditure obligations. The form of the register does not require the formation of a list of regulations and corresponding sections of the budget classification of expenditures taking into account the social significance of expenditures. The classification of expenditures does not rank budget expenditures in an ascending order, and does not allow the most objective assessment of the effectiveness of using budget money. With the help of a scientific analysis of the actual and planned trends in budget expenditures, it is necessary to identify the dependence of budget expenditures on the most significant socio-economic factors in various constituent entities of the Russian Federation and in municipalities. The meaning of the ranking of expenditures is that, first of all, expenses should be taken into account which directly or indirectly provide high-quality and comfortable work and leisure conditions for the citizens of the country. The author's analysis of the structure of expenditures of the consolidated budget of Novosibirsk Oblast for 2015-2017 showed that budget expenditures are ranked by functional criteria only by sections and subsections of budget classification. The ranking of priority social budgetary expenditures should be fixed in legislative acts. In the registers of expenditure obligations, the ranking of expenditures can be ensured by coding the types of expenditures by the degree of their social importance. Accounting for the priority level of expenditures will allow the most effective assessment of the results of financing expenditures, and will allow the formation of a legal base in the field of public finance promptly and objectively.

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