Transfer(transfer) - unilateral transfer, free of charge and irrevocably, of goods, services, material assets (property rights) in order to provide financial assistance and provide compensation.
Transfer is a transaction in which one party provides a good, service or money to another party without receiving any equivalent from the latter.
A significant part of the transfer is of a social nature: various payments, benefits, assistance to citizens provided in kind.
In the public sector, a transfer refers to any form of transfer of funds from one level budget system to the budget of another level, tax deductions in accordance with budget regulation. With the help of transfers, regional and local budgets and social protection authorities receive funds to finance mandatory payments to the population: pensions, scholarships, benefits, compensation, and other social payments established by state legislation and regulations of local governments.
There are current and capital transfers.
Current transfers are carried out regularly and are associated with a decrease or increase in the current income of citizens and business entities. These include:
- payments from the budget (pensions, benefits, scholarships);
- voluntary contributions;
- humanitarian aid, etc.
Capital transfers are one-time large-scale gratuitous transfers of funds associated with the acquisition or disposal of assets; receiving from the budget; sale at prices below market prices or their gratuitous transfer, etc.
Current and capital transfers can be made not only in cash, but also in kind (transfer of ownership of capital, provision of free or low-cost services in the field of culture, healthcare, education, etc.).
In the functional classification of expenses, transfers to non-profit (non-profit) organizations of the social sphere are divided into the corresponding sections, and transfers to the population are reflected mainly in the sections “Education”, “Healthcare and physical education”, “Social policy”.
Capital transfers are divided into: transfers within the country (contributions to enterprises and organizations, funds transferred to or overhaul, covering enterprises for losses of previous years, compensation for losses of fixed assets from natural disasters, compensation from the budget for payments of the main amounts of loans provided by banks to enterprises and the population, etc.), and transfers abroad ( gratuitous help and so on.).
In banking, a transfer is the transfer of funds from one account to another.
Transfer - transfer, movement of funds and other economic objects (change of their owner or simply change of location, for example, transfer of money by mail):
- transfer of funds from one financial institution to another. Banking operations related to counter transfers of national or national and convertible currencies of two or more countries;
- transfer of foreign currency from one country to another;
- transferring a transaction from one account to another;
- transfer of the right to own registered securities from one person to another, carried out, as a rule, using an endorsement ().
The emergence of the concept of movement or redistribution of resources (material or monetary) under consideration has accompanied humanity for many centuries, but it was called differently, and the essence was interpreted somewhat differently.
In the modern understanding, transfers are:
Moving the results of a transaction between the subject’s accounts;
An order from a bank in writing to its correspondent to issue a certain amount of money to a specified person;
Transfer of the right to own registered securities from one person to another with mandatory registration of the transfer of ownership in the relevant registers of the company, after which financial statements, dividends and announcements of the meeting must be sent to the new owner;
With the help of a transfer document, the redistribution of JSC shares among its founders is carried out;
Transfer of monetary resources from the regional financial support fund to the budgets of the lower territorial level. At the same time, the share of each subject Russian Federation requiring such financial assistance is determined by calculation.
Thus, transfers are various payments that are redistributed at the federal level.
An analysis of the current system of such distributions in Russia indicates its failure to fulfill the function of social protection as a regulatory mechanism that is in dire need of such support.
Therefore, social transfers are represented by a system of measures in kind and cash assistance poor, not related to their participation in the activities of companies, either currently or in the past. The purpose of their provision is to humanize social relations, which prevents the growth of crime and maintains domestic demand.
The share and volume of resources allocated by the state for needs depend on the model of social orientation and can be different. Thus, in the early 90s in Japan, 16% of GDP was allocated to social needs, in the USA - 19.4%, in Germany - 27.5%, in Sweden - 39.8%.
During an economic crisis, the need increases, and transfers come to the fore. This could turn into an unbearable burden for the Russian economy, and its gradual increase could conflict with Today in Russia there are over a thousand regulations that provide for over 250 social benefits for 200 categories of citizens. The number of people claiming these benefits and compensation reaches one hundred million.
The structure of a market economy in itself makes government intervention in the income sphere inevitable for their redistribution. Transfers successfully solve this, since thanks to this instrument the government has funds that can be used to meet certain needs (for example, the environment, defense and development of social infrastructure).
That is why coordination of some financial flows that are sent to the social sphere to subjects and national social funds is extremely necessary.
Unlike social transfers, government transfers are payments not related to the purchase of services or goods. These include scholarships, pensions, health insurance payments and some benefits.
What are transfers? This concept has several definitions. Thus, this term refers to the movement of currency or precious metals from one country to another, the delegation of the right to own securities such as stocks, bills, checks and bonds. In addition, it is understood as the movement of population from one state to another based on international treaties, as well as automatic change citizenship. This material will discuss what transfers are from the point of view of the budgetary sector.
It should be noted that in the Russian Federation this term began to be used in 1994. The budget transfer was initially understood as the redirection of funds from the regional financial support fund to lower territorial budgets. Then this word acquired a broader meaning. On this moment it refers to almost any movement of funds at the federal level.
What are government transfers? These are payments that are made from federal budget without exchange for goods or services. There are several illustrative examples. For example, the government transfers funds to households and various organizations. “Home groups” receive social benefits: unemployment benefits, poverty or disability benefits, pensions and scholarships. Government transfers to companies are subsidies.
Interbudgetary transfers
It should be emphasized that in most countries of the world, different regions are developing unevenly. This is due to geographical and climatic features, economic conditions, distribution of labor and other objective factors. Modern states distinguished by a management vertical consisting of several levels. As a rule, the fullness of executive power is concentrated in the central apparatus. This could be the Cabinet of Ministers or the Government.
But, in addition to this, there are also local governments. In states operating on the principle of federations, there is also another intermediate administrative body. It performs its functions within a province, region, state, canton, state or other entity. In order to create more or less similar conditions for progress different regions within one state and interbudgetary transfers are used.
This method of transferring financial resources makes it possible to effectively compensate for the disproportionate development of certain territories of the country. Next, the main functions and types of transfers in this category will be discussed. It should be noted that this kind of redistribution of funds is only one of the tools used to create balance in the development of regions.
Functions
A variety of types of intergovernmental transfers are used to achieve several key goals. The first of them is to eliminate the emerging horizontal imbalances in economic development regions. Directing additional financial resources to local budgets makes it possible to prevent or eliminate existing social tensions that may be caused by economic difficulties.
Another purpose of interbudgetary transfers is to compensate local budgets for costs aimed at implementing national projects. This makes it possible to prevent an increase in disparities in the process of regions fulfilling tasks that are of global importance for the country. In addition, it should be noted that interbudgetary transfers are often used to level out the consequences of using an imperfect taxation system.
Types of budget redistribution
Methods for transferring financial resources to the regions of the Russian Federation are prescribed in the sixteenth chapter of the Budget Code. The main forms of transfers are also listed there, as well as their description. First of all, they include grants, subsidies and subventions. Subsidies are used for a more uniform supply of financial resources to the constituent entities of the Russian Federation.
Subsidies are addressed directly to regional budgets and represent compensation for expenses incurred during the implementation of national projects. Subventions, like subsidies, have a specific purpose. They also represent compensation for the costs of local budgets, but only on a larger scale. What are transfers, besides the three main forms listed?
Other types of budget redistribution
The legislation of the Russian Federation separates part of the funds into another group. It is called other interbudgetary transfers. What it is? This category appeared in the latest edition of the Budget Code, and previously the laws of the Russian Federation did not provide for the existence of such a group. Other interbudgetary transfers, like grants, subsidies and subventions, are carried out free of charge. They do not require the constituent entities of the federation to return funds in the future. This category, for example, includes the financing of closed administrative-territorial entities (CLATEs).
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TRANSFER
Transfer-(English transfer) - unilateral transfer on a gratuitous and irrevocable basis of funds, goods, services, material assets (property rights) in the process of providing financial assistance and providing compensation.
Substantial part transfer is of a social nature: various payments, benefits, assistance to citizens provided in kind.
In the public sector under transfer understand any form of transfer of funds from the budget of one level of the budget system to the budget of another level, deductions from taxes in the order of budget regulation. By using transfer regional and local budgets, social protection authorities receive funds to finance mandatory payments to the population: pensions, scholarships, benefits, compensation, and other social payments established by state legislation and regulations of local governments.
In Russia to transfers include subsidies determined on a formalized basis from the Fund for Financial Support of Regions or the Fund for Financial Support of Municipal Entities. These funds are created respectively in the federal budget, in the budgets of the constituent entities of the Russian Federation and are distributed based on the shares (in percent) of the constituent entities of the Russian Federation or municipalities in the funds calculated using formulas.
Adopted in Russia from the 2nd quarter. 1994 method for determining magnitude transfer consists of establishing the relative need for budgetary funds of a particular territorial entity in comparison with other territorial entities that are also in need of financial assistance. This approach (if we exclude capital investments, which can have large differences from year to year) quite reliably and consistently reflects the “poorest”, “poorest” and “prosperous” financially territorial entities. The volume of the financial support fund is determined based on the capabilities of the federal budget and the budget of the constituent entity of the Russian Federation, respectively. Since 1999, a new stage in reforming interbudgetary relations began. In Russian economic practice the term transfer began to be used in 1991 in connection with joining the International Monetary Fund and the International Bank for Reconstruction and Development and the transition of statistics to the system of national accounts.
There are current and capital transfers.
Current transfers are carried out regularly and are associated with a decrease or increase in the current income of citizens and business entities. These include: payments from the budget (pensions, benefits, scholarships); voluntary contributions; humanitarian aid, etc.
Capital transfers- one-time, significant gratuitous transfers of funds associated with the acquisition or disposal of assets; receiving subsidies for capital investments from the budget; sale of fixed assets at prices below market prices or their gratuitous transfer, etc.
Current and capital transfers can be made not only in cash, but also in kind (transfer of ownership of capital, provision of free or low-cost services in the field of culture, healthcare, education, etc.).
In the functional classification of expenses transfer non-profit (non-profit) organizations in the social sphere go through the relevant sections, and transfer to the population are reflected mainly in the sections “Education”, “Healthcare and Physical Education”, “Social Policy”.
Capital transfers are divided into: transfer within the country (contributions to the authorized capital of enterprises and organizations, funds transferred to finance capital investments or capital repairs, covering losses of previous years to enterprises, compensation for losses of fixed assets from natural disasters, compensation from the budget for payments of the principal amounts of loans provided by banks to enterprises and the population etc.), and transfer abroad (free assistance, etc.).
In banking transfer is called the transfer of funds from one account to another.
Transfer price- (English transfer price) a type of wholesale price of an enterprise. It is used when carrying out commercial transactions between divisions of the same company or enterprise.
Transfer price is becoming increasingly common in payments for the supply of goods and services within the framework of international transactions, firms, companies and transnational corporations (including between their branches and divisions located in different countries), holdings.
At the transfer price assigned by the parent company to units, parts, components, semi-finished products or finished technically complex products supplied to branches, subsidiaries or received from them. These prices are generally not subject to disclosure. Besides, transfer prices used for management payments and financial transactions, for example, when determining interest on intra-company loans, and are also often used to manipulate profits and transfer them to a country with more lenient tax laws.
Transfer(from Latin transfero - move, transfer) is a transfer, movement of funds (for example, currency or gold) and other economic objects from one country to another. When transferring, there is a change in the location of the funds or only a change in their owner (for example, during a postal or bank transfer).
Other meanings of the term “transfer”:
1. Transfer of ownership of registered securities from one person to another by written agreement between the parties. In this case, the fact of a change in the owner’s rights is recorded by a corresponding entry in the register.
2. A transaction that does not involve one institutional party receiving any compensation for goods or services provided to the other party.
3. Financial assistance received by a lower-level budget structure from a higher one (for example, financing of the municipal budget from the regional one).
4. Change of citizenship of the population of a certain territory in connection with the transition of this territory under the jurisdiction of another state. An example of such a transfer is the agreement on the exchange of nationals between Greece and Turkey, signed during a conference held in 1922-1923. in Lausanne.
