Budget financing litigation

Legal services (legal assistance) for representing in court in disputes related to budget financing.

The number of cases related to budget disputes and violations of the budget legislation of the Russian Federation at different levels of the budget process is quite large. Budget disputes are related to the activities of public authorities, local governments and other participants in the budget process in the preparation and consideration of draft budgets, approval and execution of budgets, control over their execution, implementation of budget accounting, compilation, external verification, consideration and approval of budget reporting.

Fundamentals of budget financing are established by the Budget Code of the Russian Federation. Also, the executive bodies of the department establish the procedure for financing, develop appropriate state and municipal programs and procedures for obtaining certain subsidies. It is important to note that the legal relations of the parties to budgetary relations do not stop directly at the time of the implementation of budgetary payments, since any funds received from the budget must be accounted for and used only for their intended purpose. Misappropriation of budgetary funds can lead not only to civil liability, but also to criminal liability.

The main types of litigation related to budget financing include the following:

• disputes related to the verification of the intended use of received budgetary funds, including subsidies;
• disputes related to unjustified denial of budget financing;
• disputes related to the direct fulfillment of obligations within the framework of budget financing.

In our practice, we are faced with disputes arising in connection with the receipt by legal entities and individual entrepreneurs of subsidies and budget financing in other forms from the budgets of various levels. Most often, such cases relate to the misuse of subsidies, fines for administrative offenses in the field of finance, the application of liability measures for violation of the conditions for the provision of budget investments and subsidies to legal entities, individual entrepreneurs and individuals.

Procedure for consideration of disputes related to budget financing

Compliance with the pre-trial dispute settlement procedure in this category of cases will not always be mandatory. To determine the mandatory pre-trial settlement of the dispute, it is necessary to assess each legal situation individually.

Depending on the participants in the dispute, these disputes can be considered both in courts of general jurisdiction (for example, disputes involving individuals) and in arbitration courts (with the participation of legal entities and / or individual entrepreneurs in the dispute).

The complexity of considering this category of cases is due to the nature of the dispute with the state and the legal positions of the courts on such disputes. Also, depending on the specific dispute, it may be necessary to collect and evaluate a large amount of evidence.