KVR: transcript. What does CVR mean?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The budget reform launched by the Ministry of Finance has been going on for more than a decade.

Almost all segments involved in the budget process, both at the federal, regional and local levels, are being "redrawn"

One of the most significant innovations of all this time has been the introduction of a new classification of both income and expenditure, which makes it possible to unify budgets at all levels.

Classification of budget expenditures

Principles for classifying budget expenditures are approved directly by the Ministry of Finance of the Russian Federation and tend to change almost every year. It consists of:

• Codes of the main managers of budgetary funds. Approved by order of the Ministry of Finance of the Russian Federation. There is no abbreviated name. Group spending by department.
• Codes for sections and subsections. Approved by order of the Ministry of Finance of the Russian Federation. abbreviation- CFSR. Group spending by industry: education, culture, he althcare, and so on.
• Codes for types of expenses. Approved by order of the Ministry of Finance of the Russian Federation. The abbreviated name is KVR. In deciphering the concept, it is noted that the types of expenses indicate the directions of spending funds that the authorities and state institutions are obliged to comply with.
• Codes of target items of expenditure. Approved by order of the financial authority. The abbreviated name is KTSSR. They group expenses for the implementation of various targeted programs.
• General government transaction codes. Approved by order of the Ministry of Finance of the Russian Federation. The abbreviated name is KoSGU. Indicate the direct items of expenditure, which provide for estimates of state institutions and authorities. Subject to strict coordination with the CWR. Deciphering and checking the linkage is usually carried out during audits and allows you to draw conclusions about the intended or inappropriate spending of budget funds.

Thus, all budget expenditures are encoded with a 20-digit set of numbers.

Codes for types of expenses - CWR. Deciphering the concept

. It is this that most accurately reflects the structure of budget expenditures. In the instructions on the procedure for applying the budget classification, approved by the Order of the Ministry of Finance No.87-N, the basic requirements for the structure of expenses are fixed:

• Obligation to allocate items of expenditure provided for the implementation of payments upon dismissal related to reductions and liquidations of institutions.
• Separation of items of expenditure for the payment of contributions by employers to the Pension Fund, social insurance and compulsory medical insurance fund.
• Separation of payments to citizens into cash or in-kind.
• Differentiation of payments depending on the categories of recipients.
• Reflection of appropriations for payments to citizens in situations where the absence of concluded labor or similar contracts is allowed.
• Provision for travel related allocations.
• Details of budgetary capital expenditures.
• Separate reflection of appropriations relating to the administration of the execution of public obligations by the authorities (payment for delivery or forwarding of payments of a social nature).
• Reflecting appropriations for tax payments.

Uniform types of expenses are divided into groups, subgroups and elements of types of expenses. Possession of the skills of deciphering the CWR usually allows citizens to more fully and objectively assess the direction of spending the budgetary funds of the territory where they live.

Purchase of goods, works and services to meet the needs of the public sector

This includes most of the costs of government functions that almost all citizens face: buying textbooks for schools, food for children, medicines for hospitals, etc.

In order to roughly imagine how much money is provided for such purposes and activities, you need to find CWR 244 in the budget, the transcript of which tells us that, for example, it included funds for:

• acquisition of goods, payment for works, services related to various information technologies (for example, payment for the Internet);
• delivery of secret mail through special channels;
• postal services (including envelopes and stamps);
• installation and maintenance of fire, burglar alarms;
• purchase of complex medical diagnostic equipment (tomographs, ultrasound machines);
• acquisition of consumables for office equipment;
• incentive payments for service inventions;
• payments of contributions for the overhaul of municipal housing stock.

Deciphering KVR 244 in conjunction with the operation codes of the general government sector usually makes up a fairly serious section in the explanatory notes to the estimates of state institutions.

Paying taxes, fees and other obligatory payments in the public sector

All public sector institutions pay mandatory taxes and fees in the general manner. In the laws on the budget, you can find this item of expenditure provided for state institutions. In addition to the traditional land tax and property tax of organizations, for example, the payment of transport tax, which is present in the transcript of CWR 852.

Servicing internal borrowings

Budgets of different levels to cover the deficitQuite often they practice attracting either bank or budget loans within the country. Any loan is provided on a paid basis, that is, at a certain interest rate. The payment of interest is attributed to CWR 853. The breakdown of information on this type of expense allows you to obtain, in addition to information on the payment of interest on loans, information on other mandatory payments, with the exception of taxes and fees that are not reflected in other codes of types of expenses. For example, in the comparative table of the Ministry of Finance, linking the types of expenditures and types of operations of the general government sector, when studying the CWR 853, the decoding of the KoSGU indicates that it may also contain expenses to increase the value of shares acquired in state ownership.

Information and Communication Technology

In the context of the processes of modernization of the economy, the budgets of all levels provide for expenditures on CWR 242. These expenditures are deciphered and assigned in accordance with the normative documents adopted by each level of government.

Ensuring the activities of budgetary institutions

Financial support for the existence of all budgetary institutions of education, culture, social protection, he alth care is carried out by the formation of a state or municipal task by their founder and the provision of subsidies for its implementation. These expenses are both in the budget and in the list of the main managerbudget funds are referred to CWR 611. The breakdown by institutions is done directly in the above list.

Conclusion

The population still somehow encounters income codes of budget classification in everyday life, paying parental fees for attending kindergartens for children, taxes on property, land, transport, fines, if somewhere unlucky. The expenditure components of the classification codes relate mainly to narrow specialists, one way or another connected with budget execution or budget accounting. Learning the basics of financial literacy, examples of which are given above, will allow you to more consciously get acquainted with materials about the budget, periodically published in the media.