Budget classification. What is it and when should it be used?

However, its rules, established by the Ministry of Finance, often raise questions in their application. One of the key aspects of budget classification is the correct assignment of revenues and expenditures to the appropriate departments, chapters and paragraphs. For example, revenues from road occupancy charges should be assigned to the “Transport and Communications” section and the appropriate chapter for the road manager, as well as a paragraph specifying precisely the source of these funds. Similar challenges arise in the classification of revenues and expenditures related to paid parking in urban areas. In this case, according to the ruling of the Constitutional Court and clarifications to the regulation of the Minister of Finance of March 2, 2010 on the detailed classification of revenues, expenditures, receipts and expenditures and funds from foreign sources (consolidated text: Official Gazette of Laws of 2022, item 513); of fees. It is also worth paying attention to the issue of reimbursement of fees such as those paid to the starosty for obtaining permission to drive an emergency vehicle.

Another important issue is the classification of expenses related to the activity of units such as municipal youth councils, where it is necessary to accurately allocate costs to the appropriate budget sections, taking into account the specific nature of the expenses, such as the purchase of groceries for council sessions or reimbursement of travel expenses.