RESOLUTION OF BUREAU OF INTER-PARLIAMENTARY ASSEMBLY OF EURASIAN ECONOMIC COMMUNITY

of October 8, 2004 No. 8

About offers on project development of Bases of the budget legislation of state members of EurAsEC

The bureau of Inter-parliamentary Assembly decides:

1. Support offers of the Permanent commission of MPA on economic policy on project development of Bases of the budget legislation of state members of EurAsEC (the concept of the document, reasons for need of development and the comparative and legal analysis of national legal systems are applied).

2. Send the specified documents to the Secretariat of Integration Committee for review in accordance with the established procedure with the governments of state members of EurAsEC and use in case of project development of Bases of the budget legislation.

 

Appendix 1

to the Resolution of EurAsEC MPA Bureau of October 8, 2004 No. 8

Concept of bases of the budget legislation of state members of EurAsEC

Bases of the budget legislation of state members of EurAsEC (further - Bases) - the fundamental regulatory legal act of Community establishing the beginnings of legal regulation of the budget and interbudget relations, single for state members of EurAsEC, basic provisions, the principles and mechanisms of functioning of budget systems, determining procedure for development, consideration, approval, execution and control of execution of budgets of the states and their administrative and territorial units.

The purposes of development of Bases of the budget legislation are:

- assistance of economic integration of state members of EurAsEC by rapprochement of their budget systems;

- creation of legal conditions for unification and harmonization of budget legislations of state members of EurAsEC;

- ensuring forming of budget systems of state members of EurAsEC on the basis of the single principles, achievement of integrity and "transparency" of their budget systems;

- creation of the legal base for forming of highly effective national budget systems.

Coordination of their normative instructions, the sequence, lack between them of contradictions, non-admission of possibility of their different interpretation and as result, - creation of the act building the accurate, harmonious mechanism of budget systems of state members of EurAsEC shall become the basic principles in case of development of Bases.

As in state members of EurAsEC the necessary legal mechanism of regulation of the relations in the budget sphere is created now, it is necessary to consider by preparation of Bases the distinctions existing in state members of EurAsEC in approaches to forming and execution of budgets.

The general principles and approaches to creation of budget systems shall find reflection in Bases: on the one hand, most directed to standardization of budget legislations of state members of EurAsEC and promoting their economic integration, and with another to storonypozvolyayushchia to keep the budgetary mechanisms which are effectively functioning in these states.

It is necessary to fix the following basic provisions in Bases.

On the basis of the analysis of the concepts and their determinations used in budget legislations of state members of EurAsEC it is advisable to develop the unified terminology. It will allow to provide uniform understanding and application of legal definitions as in the international agreements signed between state members of EurAsEC and in their national budget legislations.

In Bases, in our opinion, such basic concepts as "budget", "consolidated budget", "the income and expenses of the budget", "deficit (surplus) of the budget", "sequester", "budget classification", "budget process", "financial year", "state non-budgetary fund", "trust budget fund", "the public internal and external debt", "limit (restriction) of debt", "borrowing", "the state guarantee", etc. shall be determined.

Forming of budget systems of state members of EurAsEC should be provided on the basis of the following single principles:

- unity of budget system;

- completeness of reflection of the income and budgets expenses;

- reality of budgets;

- publicity of budgets;

- independence of budgets;

- differentiation of the income and expenses between levels of budget system;

- balance of the budget;

- efficiency and economy of use of budgetary funds;

- general (cumulative) covering of budgets expenses;

- reliability of budgets;

- targeting and special-purpose character of use of budgetary funds.

It is represented justified to determine structure of budget system in Bases, at the same time it is necessary to consider features of the administrative-territorial device of state members of EurAsEC.

It is also necessary to provide in Bases possibility of education target budget and state non-budgetary funds, to fix regulations on procedure for their creation, determination of sources of forming and use of means of these funds.

It is reasonable to determine possible structure of budget classification for the purpose of ensuring conducting the systematized accounting of the income and budgets expenses of all levels, sources of financing of possible budget deficit and comparison of indicators of budgets.

It is necessary to enshrine the provisions providing balance of the budget and minimization of the extent of its deficit. So, reasonably to establish in Bases the rule about limiting determination of the extent of central government budget deficit and sources of its financing in the laws on the budget for the next fiscal (financial) year. It is also necessary to determine the measures applied in case of limiting exceeding of the extent of budget deficit or decrease in receipts on budget receipts (for example, the sequester, suspension of expenses of the budget for the unprotected Articles).

The certain head Osnov should be devoted to legal regulation of the relations arising in the course of the state borrowing and provision of the state guarantees on non-state loans and also in process of management of public debt. In this Chapter there shall be particular purposes of attraction of the state borrowings, ensuring the state borrowings, limiting amount of public debt and the state borrowings, bases of the organization of accounting of public debt. It is necessary to enshrine the provision aimed at providing openness of information on current status of public debt in Bases (for example, by fixing of the rule about annual publication of such data).

As execution state and local budgets within one budget system cannot happen autonomous from each other, in Bases it is necessary to establish determination and the principles of the interbudget relations, So, the interbudget relations shall be under construction on the following principles:

- distribution and fixing of budgets expenses on different levels of budget system;

- differentiation (fixing) on permanent basis and distribution according to temporary standard rates of the regulating income between different to levels of budget system;

- equalization of levels of the minimum fiscal capacity of administrative and territorial units of the state;

- equality of all budgets in relations with the government budget;

- responsibility of the budget of each level for effective and target use of the funds allocated from the higher budget.

In addition it is justified to fix concepts of forms of the financial aid provided by the budget of one level to the budget of other level in Bases (for example, grants, subsidies, subventions).

Reflection of budget process is represented to the most difficult. As budget process proceeds in the considered countries by different rules and procedures, in different terms and with participation of different subjects, for the purpose of preserving the operating approaches in gosudarstvakhchlena of EurAsEC it is concept shall be is reflected in the most common features.

At the same time it is necessary to reflect in Bases:

- stages of budget process;

- the requirement about creation of the budget statement on the basis of the forecast of medium-term fiscal policy taking into account results of budget implementation of the expired and passing financial years,

- requirement to contents of the budget statement;

- budget non-confirmation effects at the scheduled time;

- procedure for budget implementation;

- procedure for refining of indicators of the budget in the course of its execution;

- creation and approval of the performance report of the budget.

In our opinion, it is represented types of the state financial control of the budget implementation proved to determine in Bases and bases of its organization at different stages of budget process.

In Bases it is also reasonable to allocate number of general structures of the violations characteristic of all state members of EurAsEC, and also to provide feasible measures of coercion in relation to violators of the budget legislation.

Appendix 2

to the Resolution of EurAsEC MPA Bureau of October 8, 2004 No. 8

Reasons for need of development of Bases of the budget legislation of state members of EurAsEC

Legal status of Bases of the legislation of Eurasian economic community, and also procedure for their development, acceptance and realization are defined by the Agreement on the status of Bases of the legislation of Eurasian economic community, procedure for their development, acceptance and realization accepted by Interstate Council of Eurasian economic community on June 18, 2004.

Adoption of this Agreement demonstrates the aspiration of state members of Community to pursue the approved legal policy providing effective integration interaction within EurAsEC and also about recognition of need of development of the unified procedure for regulation of legal relationship within EurAsEC.

Preparation of the project of Bases of the budget legislation of gosudarstvchlen of EurAsEC is performed for the purpose of execution of the decision of Interstate Council of Eurasian economic community of February 9, 2004 No. 152, which approves the Priority directions of development of EurAsEC on 2003 - 2006 and the next years. Actions for realization of the Priority directions (the Section II - Carrying out the approved economic policy) provide harmonization of the legislation in the field of budget regulation, including the general principles of forming and execution of budgets, the corresponding procedures and the legislation.

Acceptance of Bases of the budget legislation of state members of EurAsEC according to the Constitutive treaty of Eurasian economic community is in this regard one of the main instruments of forming of the legislation of EurAsEC. Development of Bases of the budget legislation will become the most important legal action of Community as all directions of integration interaction, including first of all customs, tax policy and the foreign exchange legislation, are in many respects caused and based on the budget policy performed by state members of EurAsEC.

Development and acceptance of Bases of the budget legislation of state members of EurAsEC will allow to unify within Community national budget legislations on the basis of the single principles of legal regulation (first of all by use of the same concepts and determinations in case of regulation of the budget sphere of legal relationship) and to implement general legal mechanisms, the progressive legal ideas in the national legal system.

Despite availability of large amount of similar lines in the budget legislation in the states of Community during their independent formation and development own financial and economic institutes and own approaches to forming of budget systems were created.

The analysis of the existing acts of the budget legislation of gosudarstvchlen of EurAsEC allows to draw conclusions that this sphere of legal relationship in the Republic of Belarus, the Republic of Kazakhstan, the Russian Federation, the Kyrgyz Republic and the Republic of Tajikistan is settled sufficiently. At the same time development of the budget legislation is objectively caused by such factors as administrative-territorial division of the state, mineral resources availability as source of budget receipts, orientation of expenses of the budget, development of economy in general, etc.

This circumstance causes need to consider by preparation of Bases the distinctions existing in state members of EurAsEC in approaches to forming and execution of budgets.

Therefore the general principles and approaches to creation of budget systems, on the one hand, which are most directed to standardization of budget legislations of gosudarstvchlen of EurAsEC and promoting their economic integration, and, on the other hand, allowing to keep the budgetary mechanisms which are effectively functioning in these states shall find reflection in Bases.

It is necessary to make use as much as possible of the experience in the field of reforming of the budget sector accumulated by the states of Community, and also to plan ways of rapprochement of the legal approaches used when forming national budgets, to increase efficiency of budgetary mechanisms for realization of the purposes and tasks the EurAsEC is direct.

The purposes of development of Bases of the budget legislation are:

- assistance of economic integration of state members of EurAsEC by rapprochement of their budget systems;

- creation of legal conditions for harmonization of budget legislations of state members of EurAsEC;

- forming of the unified budget systems of gosudarstvchlen of EurAsEC on the basis of the single principles;

- forming of highly effective national budget systems, achievement of their integrity and transparency.

The preliminary analysis of budget legislations of gosudarstvchlen of EurAsEC allows to allocate the following questions which can and shall be considered in national legal systems:

- streamlining of national systems of the budget legislation of state members of EurAsEC, elimination of separate gaps and contradictions;

- unification of conceptual framework of budget legislations of state members of EurAsEC;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info