Organization of budgeting and financial relationships of agricultural enterprises with the state budget

Every farm manages its material and financial resources daily, balancing its income and expenses. An enterprise budget reflects the inflow and outflow of funds over a specific period, indicating their availability or deficit. It allows for assessing the dynamics of financial flows, planning the procurement of supplies and machinery, and monitoring the directions of capital expenditure.

Budgeting is the production and financial planning of an enterprise’s activities and its structural divisions. Unlike state financial reporting, an enterprise budget does not have a single standardized form. Various types are used in agricultural practice: master (general), operational, financial, as well as sales and production budgets.

The development of an enterprise budget is carried out in a strictly defined sequence:

1. Preparation of the sales forecast and budget.
2. Determination of the expected production volume.
3. Calculation of costs associated with production and product sales.
4. Calculation and analysis of cash flows.
5. Compilation of financial reports.

Relations between the enterprise and the state budget

The general budget system is divided into three levels: the state budget, enterprise (organization) budgets, and family budgets. The relationship between an agricultural enterprise and the state is defined by budgetary relations — financial links regarding the formation and use of a centralized fund of monetary resources. In its economic essence, the state budget reflects monetary relations regarding the redistribution of national income to finance the economy, conduct social policy, develop science, culture, and education, and ensure the country's defense capability.

The formation of the revenue side of the state budget occurs through deductions from enterprises and the population in the form of taxes, levies, and mandatory payments. Through budget policy, the state influences the economy, stimulating the growth of national income and the expansion of aggregate demand. The ratio of incoming and outgoing flows of the state budget determines its status: an excess of revenue over expenditure is called a budget surplus, and an excess of expenditure over revenue is called a budget deficit.