The Program Classification of Costs of the Federal Budget

The article discussed compliance of the current classification of budgets’ expenditures with the task of transition to the program expenditures structure of the Federal budget; analyzed the composition of costs of some state programs and projects of state programs. The author considers the code components of budgets’ expenditures; outlines directions of the adjustment of the principles for determining both inventories of keys, sub-keys, task items, and major administrators of budget funds. Results: the code of the target costs can be overridden to reflect program expenditures, while the currently disclosed information cannot be replaced, can be preserved (at the level of the targeted expenditures or any other level of the classification of expenditures – at the level of sub-divisions or kinds of costs). Classification of operations of the public management sector has a number of features as compared to other components of classification of budget expenditures: 1) classification is a unified presentation of costs, revenues and sources of financing budgets’ deficits; 2) operations are neutral regarding the scope and the subject of the expenditure; 3) articles of classification are approved by the Budget Code of the RF ( not by the order of the Ministry of Finance of Russia) and therefore cannot be operationally adjusted; 4) codes for the operations of the public management sector related to budgets’ expenditures, are not included in the expenditures code which is approved by the Law on the Federal Budget ( agency’s structure of expenditures of the Federal Law). These features indicate that operations codes of the sector of public management which relate to the expenditures of budgets are not essential in the formation of the “program” structure of budget expenditures.