Characteristics of finance is a statement of the analysis of functioning financial resources.
The essence of financial resources and characteristics of financial activities
Financial resources are an indicator of social relations between all subjects of the market economy. All participants in market relations have common features, among which are the following:
- due to the existence of financial relations in society, the distribution of internal gross product countries and ND;
- all funds and financial resources of the country are formed due to the existence of financial relations;
- the process of distribution of the country's financial resources is regulated by the rules of financial relations.
But despite a large number of similar, yet there are some differences. These differences are quite specific, thanks to which it is possible to trace the nature of financial relations in different industries and group them into certain categories. As a result of this grouping, three main branches can be distinguished:
- financial resources belonging to enterprises and firms;
- resources generated as a result of insurance premiums;
- financial resources at the disposal of the state.
Each of the listed branches has an extensive system. Analysis of the functioning of each of them is carried out based on the nature of the current field of activity. Due to this, different subsystems are distinguished in the sphere of financial relations, for example: financial resources of firms whose activities pursue commercial interests; companies that operate on a non-profit basis; resources of public associations.
If we analyze the nature of financial relations in the field of insurance, then it is necessary to proceed from the concept social insurance, the branched system of which represents the links of financial relations. Such links are such types of insurance as, personal insurance, property insurance, insurance entrepreneurial activity and other types of it.
If we consider financial relations in the public sphere, then it is necessary to do this through an analysis of the concepts of the state budget and extra-budgetary funds, state loans, etc.
Links and characteristics of the financial system
The global financial system consists of many interconnected spheres and subsystems of financial relations. Various components financial system regulate the life of many financial subsystems, which can be:
- on-farm;
- intra-industry;
- intersectoral;
- interterritorial.
Intra-economic regulates financial relations within enterprises and organizations, intra-industry - in the sphere of functioning of a separate economic sector under consideration, inter-industry - respectively, between different branches of production. The interterritorial subsystem of financial relations regulates economic relations between major political entities (countries).
Considering institutions that were created for profit, it is worth noting that among their financial funds there may be various finances, such as industrial, trade, transport, etc. The institutions themselves may be private with one legal owner, as well as joint-stock companies, cooperative associations.
The system of financial relations of the Russian Federation
This system incorporates various components, including resources from the state budget and extrabudgetary funds, state lending resources, insurance funds, as well as financial resources of various institutions that operate on the basis of various forms of ownership.
System public finance relations has the goal of forming within state jurisdiction a satisfactory amount of financial resources, which in the future will be used to finance various public facilities and the structure of public administration. As well as scattered across areas such as insurance, education, medical service etc. Such a resource potential is formed from deductions from the taxation system within the country, as well as customs payments and the leasing of state property.
The concept of the financial system is a development of a more general definition of "finance". Finance is a historical category. By their nature, they are closely connected with the state, which needs money to perform its functions.
In pre-capitalist formations government revenue and expenses were predominantly in-kind. Most of the state needs were met by various kinds of duties and revenues from in-kind fees.
With the disintegration of feudalism and the gradual development of the capitalist mode of production, cash income and government spending the share of in-kind dues and duties has sharply decreased. This process is intensified with the expansion of the sphere of commodity-money relations, the growth and complexity of the functions of the state.
In the early stages of the development of the state, there was no distinction between the resources of the state and the resources of its head: the monarchs disposed of the country's funds as their own property. With the separation of the state treasury from the personal cash desk and property of the monarch (XVI-XVII centuries), the concepts of public finance, state budget, and state credit arise.
In the conditions of the capitalist mode of production of commodity- monetary relations receive the widest development. They cover all spheres and functions of the public economy. In turn, finance, expressing the movement of value, is playing an increasingly important role in the life of the state. In its essence, finance is an economic relationship associated with the formation, distribution and use of funds of funds in the process of distribution and redistribution. national income.
It should be noted that financial relations are a narrower concept than monetary relations; they are part of them. If monetary relations cover all economic relations related to the performance of the functions of money, then financial relations are associated with the movement of cash funds for production and non-production purposes.
Financial relations do not include monetary relations related to commodity and money circulation in retail; with payment for transport, household, communal, entertainment and other services, with the movement of money when they are donated and inherited.
Of the variety of monetary relations of society, the system of financial relations includes:
- - monetary relations that develop between enterprises as business entities. They consist in mutual payment obligations of suppliers and buyers, a system of penalties for their violation, material rewards for fulfilling special customer requirements, etc.;
- - monetary relations between the state and enterprises. They cover the system of payments to the state budget, contributions to various funds and organizations of the sectoral and territorial levels;
- - monetary relations between enterprises and the banking system arising from the receipt and repayment of loans;
- - monetary relations that develop within enterprises: firstly, between the enterprise as a whole and its structural divisions; secondly, between the enterprise and the employee regarding wages;
- - monetary relations between state bodies various levels control over distribution differential rent, financing of environmental protection measures, etc.;
- - monetary relations between the state and the population regarding the receipt of payments and benefits from public consumption funds, etc.
Thus, the subjects of financial relations are the state, enterprises, organizations and employees of enterprises, citizens. And the object of financial relations are financial resources, which include net income, depreciation deductions for renovation, taxes and non-tax payments, financial reserves, part of the funds public organizations etc. Therefore, financial relations express the process of distribution and redistribution of the value of a social product and, on this basis, the formation of funds from participants in the reproduction process: entrepreneurs who invest in production and sell goods and services; able-bodied population that owns the labor force; the state, which invests natural resources, regulates economic processes.
The financial system is a set of financial links designed to ensure the state's implementation of its political and economic functions, and consists, on the one hand, of public finances, and on the other, of the finances of private enterprises, corporations, monopolies.
The main principles of building the financial system of the state are the principles of democratic centralism and fiscal federalism. The first is typical for planned economy and consists in concentrating in the hands of the highest state power the right to mobilize and use the predominant part financial resources national economy. The principle of fiscal federalism means the distribution of functions between the individual links of the financial system. The government is called upon to ensure national goals (defense, space, external state relations). The source of their funding is the state budget. Local governments provide funding for schools, housing construction, protection of public order, etc.
State measures for the accumulation of financial resources, their distribution and use are called financial policy. It includes fiscal policy, i.e. direction of the state activity in the field of regulation public spending and taxation. The financial policy is carried out with the help of various financial instruments: subsidies, subsidies, transfers, taxes, customs duties.
The direction of financial policy depends on the economic condition of the country. The general trend today is to increase the role of the government in regulating the national economy through the financial system. This is due to the increase in expenses for income maintenance, social security programs, etc.
In the era of pre-monopoly capitalism, the state financial system had two links - the state budget and local finance. They made it possible to form funds of funds with the help of which the state performed its functions. Under the influence of the development of productive forces, profound changes in the economy, the structure of the financial system is changing. There is an allocation and development of new financial units, the growth of their independence.
On the present stage the state financial system in developed foreign countries includes four links: the state budget; local finance; special off-budget funds and finance state enterprises.
The leading element of public finance is the state budget. In terms of its material content, it is the main centralized fund of the state's funds.
The state budget is the main means of redistributing the national income. Up to 40% of the country's national income is redistributed through this link in the financial system. The state budget concentrates the largest revenues and the most politically and economically important national expenditures. It finds an organic linkage of the main financial institutions- taxes, internal loans, expenses .
The next most important financial link is the system local finance. AT modern conditions under the influence of the development of productive forces, scientific and technological progress, there is an increase in the role and influence of local authorities. The scale of the local economy, their connection and dependence on big capital, are growing, the functions of local authorities are expanding and becoming more complex. All this enhances the importance of local finance, increases their role and share in the financial system.
Local finance covers a wide group of secondary taxes (mainly property taxes), the local credit system, and special funds. The central place in this link belongs to local budgets, which are not part of the state budget and have a certain independence.
In modern conditions, this link of the financial system is increasingly used in economic purposes, for regulation business processes. To this end, a significant part of local budget funds is directed to the development of economic and social infrastructure.
A special financial link is formed by special government funds, which have a certain independence, are separated from the state budget and are managed directly by the central, and in individual cases- and local authorities. These include social insurance funds, various trust funds, as well as state and semi-state financial and credit institutions.
The initial task of these funds was to finance individual targeted activities. Subsequently, they acquire the value of a reserve, which governments resort to in cases of financial difficulties, i.e. are used to increase the agility of the financial system. Unlike state budgets, special funds are subject to much less control by parliaments, which facilitates their use and increases the interest of governments in their growth.
An independent financial link is formed by the finances of state enterprises. Its origin is associated with the development public sector in the economies of a number of Western European countries (Great Britain, France, Italy, Germany, Austria) - a process that became most widespread after the Second World War. Its main task is to support the private economy by preserving and developing important industries that, due to their specifics, have low profitability and are therefore unprofitable for entrepreneurship (railway, air transport, electricity, gas, coal industry etc.). State-owned enterprises are thus an attempt to resolve the conflict between private enterprise interests and national interests. economic problems. At the same time, the finances of state enterprises are a link in the financial system, through which the state participates in the primary distribution of national income, accumulating in its hands a part of the income generated by these enterprises.
State enterprises have fixed and circulating funds assigned to them, are on an independent budget and carry out legally regulated relationships with the state budget. Depending on the type of enterprise, they have varying degrees of autonomy, production and financial independence.
It should be noted that since the 1980s the role of this link under the influence of the processes of re-privatization of a significant part of the public sector is falling. This policy aims to increase financial efficiency business entities located in state property, the search for more intensive methods of managing and managing them.
The second sphere of the financial system of developed foreign countries is the finance of private enterprises, corporations, monopolies that arise during economic activity and provide the process of production and profit. They materialize as money capital, various cash funds of the enterprise.
Due to the fact that the activities of enterprises are carried out on the basis of the individual circulation of capital, these cash funds are separate and decentralized. At the same time, the state has a direct relationship with the finances of private enterprises. They are expressed in the form of collection of payments to the state budget, formation depreciation fund, regulations credit relations providing government subsidies.
Private enterprises make up the vast majority material production, they account for the main share of the generated gross domestic product and national income. Therefore, the state uses various methods (including financial ones) to stimulate the activities of these enterprises, the growth of their savings, various monetary funds associated with the acceleration of scientific and technological progress, the creation of reserves, and the improvement of the skills of workers. The state establishes a preferential regime for taxation of profits, a system accelerated depreciation, provides in some cases budget loans, provides other forms of financial support. In turn, private enterprises with their payments participate in the formation of the revenue base of the state budget, other state funds.
In view of the foregoing, it is possible to expand the definition of the financial system.
Each link in the financial system is a specific area of financial relations, and this system as a whole is a set of various areas financial relations in the course of which funds of funds are formed and used.
In other words, the financial system is a system of forms and methods of formation, distribution and use of state and enterprise funds.
Finances play a huge role both in the very structure of market relations and in the mechanism of their regulation by the state. They are - an integral part of market relations and at the same time an important tool for the implementation of state policy. Finance is a set of monetary relations regarding the distribution of the value of GDP, income from foreign economic activity and part of the national wealth, which results in the formation of cash income, income and savings from individual business entities, the state, which are used in the future to solve economic and social problems. The existence of finance is connected with commodity-money relations. Market relations are primarily monetary relations. Commodity-money relations based on monetary circulation provide redistributive, regulatory, control and incentive processes in the state. The financial activity of the state is caused by the objective need to distribute and redistribute the national income, satisfy not only the personal, individual needs of citizens, but also perform the functions of defense and security of the country, and implement socio-economic programs. The distribution and redistribution of the total social product and national income in monetary form is the first objective condition for the existence financial activities. The second objective condition is the existence of money, credit, and other economic categories, which is determined by commodity production, by the operation of the law of value. Financial transactions - the movement of funds from one entity to another. 3 entities: enterprises, state, household. Their income: for enterprises - profits, for households - salaries, property income, for the state - taxes.
Functions of finance.
Finance performs two main functions: distributive and control. Distribution:
1. GDP value breaks down into primary income and depreciation (primary - those produced in this cycle)
2. distribution of income from foreign economic activity- income from foreign trade, dividends on the securities of foreign issuers, income from external borrowings.
3. redistribution of funds between economic entities impl. through the budget system: budget revenues-taxes, fees, loans, duties; budget expenditures - separate branches of management, social and cultural spheres, transfers. through the financial market: the market of the Central Bank and the market of credit resources. there is an attraction of funds by issuing the Central Bank, the placement of shares, credit agreements and loans by some entities and the simultaneous placement temporary free funds in accordance with the assets of other entities, receipts of dividends,%, insurance premiums and reimbursements.
4. part of the NB is involved in the process of distribution and redistribution.
5. Formed D and R eq.subjects are used for consumption purposes and for further accumulation.
Control function: finances have the property of quantitatively displaying the reproductive process as a whole and its phases. thanks to which they are able to signal how the distribution proportions develop. The continuity of the reproduction process is ensured. Information about possible adverse effects. events can be obtained through financial indicators, like indices stock exchanges, the dynamics of the profitability of households, budget revenues, including tax, public debt, budget deficit, etc.
General characteristics of the financial system of the Russian Federation.
The financial system is a set of blocks, links, sub-links of financial relations.
The financial system of the Russian Federation consists of three major blocks:
public finance;
local finance;
legal and individuals.
Public finances reflect economic relations in the formation and use of centralized funds of funds intended to ensure the fulfillment by the state of its functions. Public finances include the state budget and state off-budget funds. According to the place occupied in the financial system, the state budget is the main financial plan of the state for the current fiscal year having the force of law. According to its material content, the state budget is a centralized fund of state funds. In terms of socio-economic essence, it is the main instrument for the distribution and redistribution of GNP and the national income of the state. The state budget performs the following functions:
Redistributive (up to 50% of the country's national income is redistributed through the state budget);
Regulatory (through the state budget, the pace and proportions of economic development are regulated);
stimulating (budgetary, relations are aimed at stimulating the effective use of all economic resources and, first of all, budgetary funds);
control (through the state budget, control over rational use financial resources).
According to the level of management, the state budget is divided into the federal budget and the budgets of the constituent entities of the Russian Federation. The federal budget is the republican budget of the Russian Federation. The budgets of the subjects of the Russian Federation include the republican budgets of the republics within the Russian Federation, the budgets of autonomous regions and districts, regional budgets, the budgets of Moscow and St. Petersburg. Local self-government, according to the Constitution of the Russian Federation, is separated from state system management. Local budgets are district, city, district budgets, budgets of settlements and rural settlements; district budgets in cities. State off-budget funds are a form of accumulation and redistribution of funds used to meet social needs and additional funding territorial needs. Extra-budgetary funds are created at the federal and territorial levels and have special purpose. Extra-budgetary funds include the Pension Fund, the Social Insurance Fund, the Compulsory health insurance and the Employment Fund. Finance of legal entities and individuals is a set of economic relations for the formation and use of monetary funds of organizations, entrepreneurs, individuals, designed to ensure the process of expanded reproduction. Finance legal entities divided into two groups: commercial finance and finance non-profit organizations. As part of the finances of individuals, it is possible to distinguish the finances of entrepreneurs who are not registered as legal entities, and the finances of other individuals. The financial system is not just the sum of blocks, links and sublinks. This is really a system that is a single whole, all the components of this system are closely interconnected by numerous types of economic ties and relations.
Financial policy and its content, types of financial policy. Financial policy is an independent sphere of state activity in the field of financial relations, aimed at providing appropriate financial resources for the goals and objectives state development. To assess the financial policy and recommendations for its adjustment, it is necessary to have a program of social development. The effectiveness of financial policy is the higher, the more it takes into account the needs of a person, formed either at the expense of internal desires, or under the influence of behavior from outside. The content of financial policy, its main directions depend on the level of development of science on the role of the state in the development of society. There are 4 main conceptual approaches: 1) Presented by A. Smith and D. Riccardo. They substantiated the idea of state non-intervention in socio-economic processes (the market is self-regulating). The main instrument of financial policy, in their opinion, was the fiscal mechanism. The characteristics of the budget included:
Mandatory balance
Minimization of expenditure items
2) Keynes promoted the idea of the active participation of the state in the management of socio-economic processes. The main instrument was the fiscal mechanism, its characteristics include:
Minimization of tax rates
Maximization tax breaks
Maximization of expenditure items of a social orientation
3) Friedman, the founder of monetarism, argued the idea of limiting the direct participation of the state in the management of socio-economic processes. In the implementation of financial policy, priority was given to monetary instruments. The fiscal mechanism is characterized by:
Minimization of tax incentives
Sequestration (cutting) of expenditure items of a social orientation
A special requirement of monetarism is the fight against inflation through management money supply using the refinancing rate, the reserve rate of deductions Socialist concept: the main principle of the financial policy of the USSR is financial centralization, which manifested itself not only in the concentration of financial resources at the disposal of the state, but also in the monopolization of the organization of financial relations by the state. Financial policy is a multifaceted concept, structurally it is divided into fiscal and monetary policies. Under fiscal policy understand the definition of sources of income generation in the state budget; priority areas for spending funds; admissible limits of unbalanced budgets; principles of relationships between the links of the budget system. As part of the budget tax policy allocate:
Investment policy
tax policy
Government policy. debt
The policy of fiscal federalism
Under monetary policy understand sustainability monetary circulation through the management of emissions, regulation of inflation and the exchange rate of the national monetary unit. Monetary policy includes:
Issuing policy
pricing policy
monetary policy
Financial management is an integral part common system management of socio-economic processes. It is aimed at improving the system of relations designed to normalize the financial resources necessary for the socio-economic development of society. The purpose of financial management is financial stability and Financial independence manifested in macroeconomic balance, budget surplus, reduction public debt, hardness national currency, in combination with the economic interests of the state and all members of society. In financial management, objects and subjects of management are allocated. The objects are various types of financial relations that form the financial system. The subjects of financial management are the totality of all organizational structures those who manage finances - the financial apparatus. Financial management is carried out at all levels of the financial system. It happens to be nationwide, which establishes general principles, rules and regulations, and also ensures the implementation of a unified fiscal policy, tax, currency and monetary policy in Russian Federation; and financial management of individual management entities. In the new economic conditions and the formation of market relations in Russia, financial management is of particular importance, designed to ensure the effective management of the resources of enterprises of various forms of ownership. The essence and principles of financial management Financial management is a type of activity aimed at managing the financial and economic side of work firms. Financial management includes: development and implementation of the financial policy of the enterprise; Information Support based on financial statements; evaluation and formation investment projects, capital costs, financial planning and control; organization of the management structure of the financial and economic activities of the enterprise. Financial management allows you to assess the risk and profitability of investing, the efficiency of the company, the rate of capital turnover and its productivity. Financial system management is aimed at achieving the overall goals of enterprise management and has a significant impact on market transformations. Financial system management principles: planned and systematic. target orientation; diversification; strategic orientation. The principle of planning and consistency lies in the need to compare financing processes with the development of the enterprise's activities in certain areas, as well as their possible prospects. The principle of target orientation is to direct funds to achieve the goals of the enterprise. sales of goods and comprehensive customer service. Diversification of production leads to a general increase in the profitability of the enterprise, a decrease in the risk of bankruptcy and an increase in competitiveness. The strategic orientation of financial management implies that the financing of activities should be carried out in accordance with the mission and long-term plans. If an enterprise does not develop a clear strategy for its development and does not take into account the situation on the market, then it will never be able to take a firm position on it, not to mention the company's entry into other markets. Strategic orientation is the guiding principle that determines the direction of capital investments of the enterprise and organization. In spite of long term return on investment, the opportunity for significant profits and future development is provided. In connection with the cyclical life of the product, such financing principles have been developed as proactive management and the ratio of current financing and capital accumulation. in the future, as well as funding innovation activities. The use of this principle is impossible without significant investments, but it ensures the progress and competitive stability of the enterprise in the market. The ratio of current financing and capital accumulation is the most important principle in financial management, according to which enterprises autonomously determine the amount of funds allocated for the development of the enterprise to the fund wages and etc.
Financial control is cost control, therefore, unlike other types of control (environmental, sanitary, administrative, etc.), it takes place in all areas of social reproduction and accompanies the entire process of the movement of funds, including the stage of comprehending financial results. Since the financial system of the state covers all types of monetary funds (both at the federal and regional levels, and at the level of individual business entities), financial control is multi-level and comprehensive. Financial control is designed to ensure the interests and rights of both the state and its institutions, and all others economic entities; financial violations entail sanctions and fines. State financial control is designed to implement the financial policy of the state, create conditions for financial stabilization. This is primarily the development, approval and execution of budgets at all levels and extra-budgetary funds, as well as control over the financial activities of state enterprises and institutions, state banks and financial corporations. Financial control by the state of the non-state sphere of the economy affects only the sphere of fulfillment of monetary obligations to the state, including taxes and other obligatory payments, compliance with the law and expediency when spending budget subsidies and loans allocated to them, as well as compliance with the rules established by the government for organizing cash settlements, keeping records and reporting. Financial control over the activities of enterprises also includes control by credit institutions, shareholders and internal control", checking the effectiveness and expediency of using financial resources - own, borrowed and attracted; analysis and comparison of actual financial results with forecasted ones; financial assessment results of investment projects; the correctness and reliability of financial statements; control of financial condition and liquidity. A financial manager in a large commercial structure controls the entire process of investing capital. This is the so-called "post-audit", which includes a comparison of the actual financial results at each stage of production and investment activities with those predicted in the financial section of the business plan; analysis and elimination of the causes of their discrepancy; search for ways to reduce costs and improve methods of financial forecasting. Therefore, financial control is an important element of the financial management system. Financial control (hereinafter - FC) is control over the legality in the field of education, distribution and use of monetary resources of all parts of the financial system. The content of financial control in relations regulated by law is as follows: 1) verification of compliance financial obligations before the state and authorities local government; 2) verification of the correct use of state and municipal enterprises, institutions, organizations that are under their economic jurisdiction or operational management, financial resources (budgetary and own funds, bank loans, extrabudgetary and other funds); 3) verification of compliance with the rules of committing financial transactions, settlements and storage of funds by enterprises, organizations, institutions, etc.
According to the content, financial control is divided into: 1) budgetary - carried out by such bodies as the Parliament, the Accounts Chamber of the Russian Federation, the Government of the Russian Federation, Federal Treasury etc.; 2) tax - carried out by tax, customs, law enforcement and other bodies; 3) banking FC - conducted by the Central Bank of the Russian Federation, audit firms, etc.; 4) currency FC - carried out by the Government of the Russian Federation, the Central Bank of the Russian Federation, other bodies and agents of the currency FC; 5) control over insurance activities - carried out by the Ministry of Finance of the Russian Federation and law enforcement agencies; 6) customs control - carried out by the State Customs Committee.
Financial control is expressed in:
1. Verification / fulfillment of financial obligations to the state, individuals / legal entities.
2. Checks / revisions of the targeted allocation of planned funds from the budget fund and extra-budgetary funds.
3. Checks / audits intended use Money.
4. Checking/Regulations cash transactions and rules for working with foreign exchange earnings.
Control over the legality and expediency of actions in the field of education, distribution and use of funds.
Ministry of Finance: structure, main tasks and functions.
Financial management in enterprises and industries National economy carry out financial departments and services of enterprises, organizations and institutions, as well as financial departments and departments of the remaining ministries and departments. The sphere of insurance relations is managed by special insurance structures. All management work public finance carried out by the Ministry of Finance, its subordinate financial authorities, as well as the Federal Tax Service. Among all the bodies, the Ministry of Finance of the Russian Federation stands out for the complex nature of its functions, directed in different directions of the financial activities of the state. This government agency The executive branch ensures the implementation of a unified financial, budgetary and tax policy in Russia and coordinates the activities of other federal executive bodies in this area. The following tasks are assigned to the Ministry of Finance:
1) development and implementation of a unified state financial policy;
2) drafting and execution federal budget;
3) exercising financial control over the rational and targeted spending of budgetary funds and federal non-budgetary funds;
4) ensuring the sustainability of public finances and the implementation of measures to develop the financial market
The main divisions of the Ministry of Finance are the budget department; sectoral departments of financing industry, construction, transport systems and communications, defense complex, etc.; department of foreign loans and external debt; department of tax reforms; department of public valuable papers and financial market; Department of State Financial Control and Audit; the main department of the Federal Treasury. The Ministry of Finance of the Russian Federation performs the following functions: participates in the preparation of long-term and short-term forecasts of the functioning of the economy, together with federal executive authorities, determines the need for state centralized resources, prepares proposals for their distribution between the federal budget and state federal extra-budgetary funds ; organizes work on drafting the federal budget, the forecast of the consolidated budget of the Russian Federation, develops draft standards for deductions from federal taxes, fees, amounts of subventions and subventions from the federal budget to the budgets of the constituent entities of the Federation; ensures the execution of the federal budget, as well as state federal extra-budgetary funds; develops proposals for improving tax policy and tax system; takes part in the work to improve the insurance activity in the country; develops proposals for the formation and development of the financial market; develops draft programs for external borrowing of the Russian Federation; manages the state internal and external debt of the Russian Federation. The main tasks of the Ministry of Finance of the Russian Federation include:
Improvement of the budgetary system and development of budgetary federalism;
Development and implementation of a unified financial, budgetary, tax and currency policy in the Russian Federation;
Concentration of financial resources in priority areas of socio-economic development;
Development of the draft federal budget and ensuring the execution of the federal budget; drawing up a report on the execution of the federal budget and the consolidated budget of the Russian Federation;
Development of government borrowing programs and their implementation on behalf of the Russian Federation; management of the state internal and external debt of the Russian Federation;
Development and implementation of a unified development policy financial markets;
Participation in the development and implementation of a unified policy in the field of formation and use of public resources precious metals and precious stones;
Development of a unified methodology for drawing up budgets of all levels and reports on their execution;
Implementation of state financial control;
Providing methodological guidance accounting and reporting and auditing.
The Ministry of Finance of the Russian Federation performs the following main functions:
Prepares proposals and implements measures to improve the budgetary system of the Russian Federation, develop budgetary federalism and the mechanism of interbudgetary relations with the constituent entities of the Russian Federation;
Participates in the development of socio-economic development forecasts for the long, medium and short term;
Participates in the development and implementation of measures for financial recovery and structural restructuring of the economy, support and protection of the interests of domestic producers of goods, contractors of works and services;
Participates in the preparation of proposals in the main areas of credit, monetary policy, improve the state of settlements and payments in the economy, in the formation and implementation of a unified price policy, in the preparation of federal target programs, ensure their financing at the expense of the federal budget;
Develops measures aimed at the formation and implementation of an active investment policy, participates in the development and financing of federal investment programs and the development budget of the Russian Federation.
System financial regulation is a holistic system of measures of influence of the totality financial processes on the social and economic life of society. The subject of financial regulation is, first of all, the state, legislatively fixing the basic norms and rules of financial activity. According to the form of influence, financial regulation methods are divided into: administrative, affecting in the form of specific targeted orders, tasks, decrees, resolutions, etc.; manipulating a system of norms and rules common to all (interest rates, tax rates, taxation procedures, pledge rules, instructions for collecting duties, and much more); mixed - economic in content, administrative in form. industrial and scientific and technological upsurge, contributing to an increase in budget revenues, ensuring an acceptable level of employment, improving the quality of life and social security of the population. Basic methods of financial regulation of activities
Forms of influence Type of influence Methods of influence
1.Administrative Prohibitive, permissive Legal norms of a punitive nature. Regulations. Norms. Rules. Provisions. Regulations (for example, licensing provisions construction activities)
2.Economic Stimulating, preventive Procedure and tax rates. Interest rates. Customs tariffs. Bail rules.
3.Mixed Items 1 and 2 Items 1 and 2
Budgetary process in the Russian Federation.
The budget process in the Russian Federation is regulated by the Law of the RSFSR “On the Fundamentals of the Budget Structure and Budget Process of the RSFSR” (October 10, 1991) and other laws of the Russian Federation, the laws of the republics within the Russian Federation, etc. Budget regulation is an integral part of the budget process. Budget regulation is a redistribution of financial resources between budgets of different levels. The duration of the budget process: 1st and 2nd stages - more than a year; 3rd stage (from 1.01 - 31.12) - a year; 4th stage - half a year.
To complete the execution of the budget, except for the budget period (fiscal year), Grace period- 1 month, during which operations on obligations assumed within the framework of budget execution must be completed. There is a concept of an accounting period - this is a financial year along with a grace period. legal framework, unified budget classification, unity of budget documentation, unity of the monetary system. The independence of the budget process of each legislative and executive body is ensured by the presence of appropriate sources of income and the right to determine the directions of use. The balance method is to establish the correct ratio between income and expenditure of all budgets, as well as natural and financial indicators. The method creates budget stability, ensures that the necessary proportions in the distribution of funds are maintained. Stages of the budget process in the Russian Federation
I. The drafting of the budget is carried out by the executive authorities. This work is preceded by the development of forecast plans for the development of territories and targeted programs, on the basis of which a consolidated financial balance states on the territory of Russia (SFB). The SFB expresses the financial program in general view, reflects the requirements of financial policy, the structure of income and expenses of the SWF is close to the budget. The budget expresses the financial program specifically. SFB - allows executive authorities to gradually develop budget expenditures and make calculations to determine budget revenues. Direct work on drafting budgets is carried out by the Ministry of Finance of the Russian Federation, as well as tax and customs authorities. economic analysis- determines the degree of implementation of the budget for the last year and establishes the degree of implementation for the current one, identifies the causes of deviations; normative method - based on the rate of a certain item of expenditure. By multiplying the natural unit by the norm, the total amount of the expense is obtained; extrapolation method - determines financial indicators on the basis of their dynamics based on the reporting data for previous years and extends the amounts received to the next year.
II. Consideration and approval of budgets is carried out by legislative bodies (the Federal Assembly (Parliament) of the Russian Federation, representative bodies of the subjects of the federation and local self-government bodies). Draft budget. Received by the Council of State. The Duma is sent to the Committee on Budget, Taxes, Banks and Finance for conclusion. Based on the conclusion, the committee decides on the adoption of the project federal law"On the federal budget" for consideration in the State. Duma. All materials are submitted to the President, the Federation Council, the Duma Committees for comments and suggestions, as well as to the Accounts Chamber for a conclusion. Having received an opinion from each committee, the State Committee. The Duma for Budget, Taxes, Banking and Finance draws up a summary conclusion on the project and submits it for consideration to the State. Duma, which begins its consideration in several readings. If necessary, the Government of the Russian Federation sends amendments and additions to the final acts on taxes to the Duma. When considering the budget in the first reading, the State. The Duma discusses the concept and forecast of the socio-economic development of the Russian Federation, the main directions of budget and tax policy, the principles of interaction between the federal budget and the budgets of the subjects of the Federation. reading. The third reading reflects federal budget expenditures by subsections of the functional classification, at all levels of departmental classification, federal target programs within the limits approved in the second reading, as well as a list of protected federal budget items, programs for providing funds on a reimbursable basis for each type of expenditure. fourth reading - consider amendments to the bill; quarterly distribution of income, expenses, budget deficit. At the plenary meeting of the State. The Duma puts the bill to the vote as a whole. Adopted by the State. The Duma, in accordance with the Constitution, within 5 days from the date of adoption, must be submitted for consideration by the Federation Council. The budget law is considered approved if more than 50% of the total number of members of the chamber voted for it, or if it was not approved within 14 days considered by the Federation Council. If it is rejected by the Federation Council, both Houses of Parliament create a Conciliation Commission, after which the law is reconsidered by the Duma. In case of disagreement, the State. Duma with the decision of the Federation Council, the law is considered adopted if, in the repeated voting, it received at least 2/3 of the total number of votes of the Duma deputies.
III. The execution of the budget begins after its approval by the legislature and signature by the President of the Russian Federation. The Committee of Ministers of the Russian Federation, in agreement with the lower executive bodies, organizes the execution of the budget. The most important task of execution is to ensure the full and timely receipt of taxes and other payments. additional income or savings in costs, is credited to the relevant budget and is not subject to withdrawal. Used - subject to consideration by the relevant authority. Losses in income and costs - are not compensated from the higher budget, except when they are caused by a change in the current legislation. Work on budget execution is carried out by the Ministry of Finance of the Russian Federation, State. Tax Service of the Russian Federation and the State. The Customs Committee of the Russian Federation and their local authorities. When executing the budget, the distribution of all types of payments and appropriations is carried out according to the budget list of income and expenses, which is the main operational plan for the distribution of income and expenses by divisions of the budget classification. The budget list of the Federal budget of the Russian Federation is approved by the Ministry of Finance of the Russian Federation. By organizing the execution of budgets and extra-budgetary funds invested in new structure The Ministry of Finance of the Russian Federation - the Federal Treasury of the Russian Federation. The transition from the banking to the treasury system of budget execution means. That the Treasury must carry out and account for all transactions with all state and financial resources administered by the Government. The Treasury ensures the principle of unity of the cash desk in relation to federal funds. All payments from the federal budget are made from a single account of the Federal Treasury. All other accounts mediating the movement of federal budget funds opened in institutions banking system, must be transitive, i.e. have no carryovers. This means closing budget accounts in banks and opening them in the Treasury system with the transfer of funds directly to the settlement accounts of economic entities performing work for budget units financed from the federal budget. stage of execution of the federal budget
IV. Drawing up a report on the execution of the budget and its approval by the legislature. The work of compiling reports is entrusted to the Ministry of Finance of the Russian Federation and its financial authorities, the State. tax service and tax inspections, Mrs. Customs Committee and its bodies. Reports are sent to the relevant authorities of the State. Authorities. The report on the federal budget of the Russian Federation is reported to the Federal Assembly of the Russian Federation, which approves it. To control the execution of the Federal budget, the Federation Council and the State. The Duma form the Accounts Chamber, composition and procedure of activity Accounts Chamber determined by federal law.
1. Essence and functions of finance. The role of finance in market economy
Modern world is the world of commodity-money relations. They permeate the internal life of any state and its activities in the international arena. Finance can be seen as economic category and as a financial mechanism.
In the process of reproduction at different levels, from the enterprise to national economy in general, funds of cash are formed and used. At the same time, it does not matter in what form money appears: in the form of cash paper notes, or in the form credit cards, or on meaning on bank accounts sums generally out of any form.
The system of formation and use of funds of monetary resources involved in ensuring the process of reproduction constitutes the finances of society. And the totality of economic relations that arise between the state, enterprises and organizations, industries, territories and individuals in connection with the movement of funds, forms a fin. relations. They are complex, diverse and resemble the circulatory system of a living organism, through which the movement of goods and services is carried out, a kind of exchange of substances between the economic cells of a social organism. On the periphery of this organism Fin. relationship ends. Here money is already acting in its natural functions as a means of circulation or payment. But before reaching this final link, they are formed and serve the entire set of economic ties and economic relations.
The specific features of finance are their monetary and distributive character. The object of financial relations are financial resources in the form of targeted funds of funds. The functions of finance are: distribution, control and reproduction.
The role of finance in a market economy follows from the fact that the state and enterprises are full participants in the capital market, acting as creditors and borrowers. Proper organization of finances allows you to quickly respond to changing market conditions, adapt to new conditions, use alternative financial instruments, and fulfill tax and other monetary obligations.
In addition, finance plays important role in attracting investments, and not only in real sector economy, but also the human factor (education, healthcare, culture, sports), creating favorable conditions for the functioning of the capital market.
The role of finance in solving social-econ. tasks is to provide the necessary sources of finance-I sots.-econ. spheres, achieving a balance between economics. efficiency and social justice; production is expanding; carried out with the execution of: 1. Tov.-den. relations. 2. Financial. 3. Credit.
Governments play a big role here. finance and financial enterprises. Through the finances of individual enterprises and sectors of the national economy of states for the reproduction process and social. sphere. Part of finance yavl. Investments.
2. The financial system of the Russian Federation and its links. State financial policy.
Fin. the system is interpreted in two ways: as a set of spheres and links of financial relations and as a set of financial institutions.
It includes three main parts: state. finance, finance of the population and finance of the enterprise. Of these three links, the finances of enterprises are the main one, because the first two links are formed on their basis. The finances of enterprises, as a link in decentralized finance, participate in the creation of a material source of all the country's monetary funds - the national income. The state of decentralized cash funds determines the overall financial position countries, a leading role in ensuring the pace of development of sectors of the national economy.
Household finances have only recently become a consideration. as part of the financial system. Financial relations of the population according to the formation family budget are extremely important for the regulation of effective demand of the country.
The centralized sphere of the financial system is the state. finance. It is owned by the state and in accordance with Budget Code, effective from January 1, 2000, includes the budgetary system and off-budget social funds.
In 1991, the budget system of the Russian Federation underwent cardinal changes. Prior to this, the state budget of the Russian Federation, like that of other union republics, was included in the state budget of the USSR, which reflected all budgets in the country, including rural and settlement budgets. In the Union budget in 1970-1990. concentrated 50-52% of the total resources of the state budget. The budgets of the union republics accounted for 48-50%, of which 35% were at the disposal of republican budgets, and 15% - in local budgets.
Public finances consist of three main elements: budgets, off-budget funds and state credit. The budget is an annual plan of income and expenditure of the state, it is money that allows the state to carry out economic and social. functions (and more recently, political ones).
The budget consists of two parts: revenue and expenditure. In developed market economies revenue side 80-90% of the budget is formed at the expense of taxes from enterprises and the population. The rest comes from the use of state property, foreign economic activity. The structure of the expenditure part of the budget includes expenditures on social-cult. needs (health care, education, social benefits, etc.), expenditures for the development of the national economy, defense, public administration.
The ratio of revenue and expenditure of the budget may be balanced, but may be unequal. Most often, states are faced with a situation in which expenditures exceed revenues. The practice of budget deficit is widely developed in the world. But there is always a certain limit, beyond which undesirable phenomena in the economy begin. According to the IMF, the budget deficit should not exceed 2% of GNP.
The current budget system of the Russian Federation consists of 3 parts: the federal budget, regional budgets(there are 89 of them, including republican, territorial, regional, autonomous regions, autonomous districts, Moscow and St. Petersburg) and local budgets (there are about 29 thousand of them, including district, rural).
Each budget functions autonomously, i.e. the lower budget with its income and expenses is not included in the higher budget. For the purpose of planning budgetary resources, a consolidated budget– statistical consolidated budget, which combines the financial resources of all levels of the budget system.
Off-budget funds are the funds of the federal government and local authorities related to the financing of expenses not included in the budget. Extra-budgetary funds are those funds that are accumulated outside the state budget system and have a strictly designated purpose: a pension fund, a social insurance fund, etc.
The formation of off-budget funds is carried out at the expense of mandatory earmarked contributions, which for an ordinary taxpayer are no different from taxes. Main the amounts of deductions to off-budget funds are included in the prime cost and are set as a percentage of the wage fund. Extra-budgetary funds are separated from budgets and have a certain independence.
Financial policy of the state as part (subsystem) econ. state policy is a set of fiscal, other financial instruments and institutions of state financial power, which, in accordance with the law, have the authority to form and use the financial resources of the state-va in accordance with the strategic and tactical goals of the state economy. politicians. (In this case, the institutions of state financial power include: the Ministry of Finance, tax authorities, customs authorities, Treasury, Accounts Chamber, Federal Commission for Foreign Exchange Control, Pension Fund and others. To financial instruments - the budget, tax rates, benefits, funds, etc.).
The objectives of the financial policy include: 1. providing conditions for the formation of the maximum possible financial resources; 2. the establishment of a rational from the point of view of the state-va distribution and use of financial resources; 3. organization of regulation and stimulation of economics. and social processes financial methods; 4. creation of an effective financial management system.
An important component of financial policy yavl. financial mechanism - a system of forms, types and methods of organizing financial relations established by the state. Fin. the mechanism is subdivided into directive (it is developed for financial relations in which the state is directly involved - taxes, state credit, budget expenditures, budget finance, etc.) and regulatory (defines the basic rules of the game in financial segments, not directly affecting the interests of the state - the organization of intra-economic financial relations in private enterprises).
There are 3 main types of financial policy: 1. classical (the principle of non-intervention of the state in the economy, maintaining free competition, using market mechanism as the main regulator of economic processes - A. Smith, D. Ricardo) 2. regulatory (the financial mechanism is used to regulate the economy and social relations in order to ensure full time population - J. Keynes) 3. planned-directive (used in the administrative-command economy in order to ensure the maximum concentration of financial resources from the state for their subsequent redistribution.
Transition to the 90s XX Art. Russia from the command-administrative economy to market relations demanded a fundamental change in the ongoing financial policy, and above all, the financial mechanism. The essence of these changes was:
· Transferring the relationship between the state and privatized enterprises on a tax basis;
Changes in interbudgetary relations (regional and local budgets have gained greater independence, primarily in the area of spending funds;
changing the principles of formation of territorial budgets, where funds were created financial assistance, from which transfers began to be sent to lower budgets;
· in covering the budget deficit not at the expense of the Central Bank of Russia, but on the basis of the issuance of government securities;
changing the procedure for the redistribution of funds between business entities in connection with the creation stock market;
· in building insurance market and private insurance funds;
· in the creation of state social non-budgetary funds at the expense of social insurance funds;
changing the financial management system, creating special financial and control departments (the Ministry of the Russian Federation for taxes and fees, federal Service tax police, Accounts Chamber).
Main directions of the financial and budgetary policy of Russia on long term in accordance with the economics developed and approved by the government of the Russian Federation. the program consists of: 1. reducing the tax burden on the economy; 2. streamlining state obligations; 3. concentration of financial resources on the solution of priority tasks; 4. Reducing addiction budget revenues from the conjuncture of world prices; 5. Creation of an effective system of interbudgetary relations and public finance management.
An important area of fiscal policy yavl. carrying out a tax reform, which is designed to reduce the tax burden on the economy, equalize the conditions of taxation for all payers, and increase the level of management of the entire taxation system. Main elements of tax reform: - abolition of inefficient taxes and benefits; - reducing the taxation of the wage fund and overall size contributions to social off-budget funds; - reduction of tax rates.
The reform introduces a single rate income tax(12%?), taxes paid on proceeds from the sale of products have been eliminated, and most benefits have been cancelled. Budget revenues lost as a result of this should be covered by abolishing unjustified tax breaks, increasing tax collection and increasing the share of cash payments in the tax system.
The revision of the size and structure of the state's obligations will be carried out on the basis of a transition to targeted social support for citizens, which implies a reduction in a number of social obligations of the state, in particular, to cover the losses of housing and communal services, which will be covered by payments from consumers.
It is also envisaged to reduce the cost of public administration by reducing the number of civil servants.
The main priorities in budget spending is: the fight against poverty, ensuring the internal and external security of the state, supporting the judiciary, the reproduction of scientific potential, the social sphere.
For increase standard of living the most vulnerable segments of the population are expected to increase annually from the budget allocations for benefits. Expenses for education and health will increase. Financing of defense spending will be based on the new military doctrine, which involves the gradual transfer of the army to professional basis. A transition will be made to the full financing of the judiciary from the federal budget, which will ensure the real independence of judges.
In order to reduce the dependence of budget revenues on the global price environment, support will be provided Russian enterprises entering the world markets with high quality products.
Improving interbudgetary relations involves the creation of a new mechanism for financial support of the territory based on a clear delineation of expenditure and tax powers between the links of the financial system. The resources of the financial assistance funds for the territories should be distributed taking into account the tax potential and budgetary needs of the territories.
An important direction of the financial and budgetary policy of Russia yavl. also the creation of an effective system of public finance management. The transfer of all budgets to treasury execution will strengthen public control over the use of budgetary resources.
3. Financial control: types, forms, methods
Financial control - control of legislative and executive authorities at all levels, as well as specially created units for the financial activities of all economies. subjects using special methods.
Financial control - cost control takes place in all areas social production, yavl. multi-level and comprehensive, accompanies the entire process of cash flow and the stage of understanding financial results.
1. Classification of types of financial control
By time: - preliminary (budgeting, financial plans and estimates, credit and cash applications, contracts); - current; - subsequent.
By subjects of control: - presidential; - bodies of representative power and local self-government; - executive authorities; - financial and credit authorities; - departmental; - on-farm; - auditor.
By areas of financial activity: budgetary, tax, currency, credit, insurance, investment, control over the money supply.
According to the form of conducting: - obligatory (external); - initiative (internal).
According to the methods of conducting: inspections, surveys, supervision, analysis of financial activities, observation (monitoring), audits.
2. Main types and bodies of state financial control.
Under the Representative bodies of power (the Federation Council and the State Duma) are: - State Duma Committee on Budget, Taxes, Banking and Finance and its subcommittees. Similar committees have also been created by the constituent entities of the Russian Federation; - Accounts Chamber of the Russian Federation. The Board of the Accounts Chamber, in addition to the chairman and his deputies, includes 12 auditors (6 from each chamber of the Federal Assembly). current work lead the inspector of the Accounts Chamber. Similar bodies have been created in the constituent entities of the Russian Federation. The scope of authority of the Accounts Chamber is control over federal property, federal funds, state internal. and external debt, the activities of the Central Bank, the efficiency of the use of foreign credits and loans, as well as the issuance of state credits and loans.
Main forms of control - thematic checks and revisions.
Measures of influence: - prescription; - an order that must be followed; - suspension of all operations on accounts.
The activities of the Accounts Chamber according to the law yavl. vowel.
Presidential control is exercised by issuing decrees, signing laws, appointing the Minister of Finance of the Russian Federation, presenting State Duma candidate for the post of chairman of the Central Bank.
Certain functions are performed by the Control Department of the President of the Russian Federation.
The Government of the Russian Federation controls the process of developing and executing the federal budget, the implementation of a unified policy in the field of finance, money and credit, the activities of ministries and departments.
The Government has a Control and Supervisory Board.
The Ministry of Finance and all its structural divisions exercise financial control on duty: through the development of the federal budget, control over the receipt and expenditure of budgetary funds and state non-budgetary funds, control over the directions and use public investment, methodological management of the organization of accounting, certification of audit and licensing of audit activities.
Operational financial control within the Ministry of Finance is carried out by the Control and Audit Department (KRU) and the bodies of the Federal Treasury.
The federal treasury includes the Main Directorate, the treasuries of the constituent entities of the Federation, cities (with the exception of district subordination), districts and districts in cities.
It is entrusted with the following responsibilities: - control over the income and expenditure part of the FB in the process of its execution; - control over the state of public finances in general; - control (together with the Central Bank of the Russian Federation) over the state of the state internal and external debt of the Russian Federation; - control over state off-budget funds and the relationship between them and the budget.
In order to strengthen control over efficient use public investment in 1993, the Russian financial corporation. She is engaged in competitive selection and examination of investment projects implemented at the expense of state resources.
The specialized financial control bodies include: - State. tax service (providing unified system monitoring compliance tax legislation, correctness of calculation, completeness and timeliness of payment of taxes and other obligatory payments). State. tax service includes the Federal tax service and Mrs. tax inspections in the constituent entities of the Russian Federation and local governments (city and district tax inspections); - Federal bodies of the tax police, consisting of the Federal Tax Police Service, territorial and local bodies; - The Federal Service for Insurance Supervision (Rosstrakhnadzor), consisting of the central body, regional and cluster (for a group of regions) inspections of Rosstrakhnadzor; - Center. Bank of Russia (CBR) and its structural subdivision Department banking supervision; - departmental financial control is carried out by structural subdivisions of ministries and departments.
Inspections are carried out once a year commercial organizations and once every two years in other organizations.
Negos. financial control includes: - on-farm financial control, which is carried out by the accounting department, the financial department of the enterprise. Includes operational control (carried out by the chief accountant in the course of daily activities by document approval) and strategic; - audit financial control. Auditing may be initiative and mandatory, to which, in particular, all banks are subject, insurance companies, stock exchanges, extra-budgetary funds, charitable funds, all JSCs and enterprises that have a share of a foreign investor in the authorized capital.
TOPIC 1 GENERAL DESCRIPTION OF FINANCE
- Essence and functions of finance
The role of finance in the process of reproduction of the gross domestic product
- Essence and functions of finance
In the economic life of society, relationships constantly arise between:
- enterprises in the process of acquiring inventory items, selling goods and services;
- enterprises and higher organizations in the creation of centralized funds and their distribution;
- by the state and enterprises when the latter pay taxes to the budget system and finance expenses;
- the state, citizens and extra-budgetary funds when making payments and receiving resources;
- separate links of the budget system;
- by insurance organizations and enterprises and the population when paying insurance premiums and indemnifying for damage in the event of an insured event, etc.
These relationships may arise:
- regarding the redistribution of the company's income in favor of one of them;
- to ensure adequate use by the state of the functions that society needs;
- in the process of non-equivalent exchange based on debt obligations under conditions of uncertainty and risk.
The finances that ensure the functioning of the state are called public finance. When redistributing society's income in favor of households and producers, finances, respectively, of households and commercial organizations (firms, corporations).
The totality of financial relations within the national economy is a financial system that includes state and municipal finance (centralized finance), enterprise finance, insurance finance and citizens' finance. Each link in the financial system performs its specific tasks and represents a certain group of financial relations.
The task of public finance is the concentration of financial resources at the disposal of the state or territorial authorities and their direction to finance public needs.
The task of the finance of economic entities is the formation by this entity of its own funds and their use on the basis of effective cash flow management in order to carry out its production, trade and financial activities, to ensure financial stability. The finances of economic entities are the leading link in the financial system, since it is at the level of finances of enterprises that the sources of financial resources are formed.
The task of insurance finance is to form an insurance fund in order to compensate for damage and provide assistance in the event of certain negative events.
The task of the finances of citizens is the formation of income and their use for current expenses, the acquisition of property, the creation of a financial portfolio.
The reason why the financial system is divided into these four elements is that the formation, distribution and use of funds in each of these structural units is carried out differently.
Finance as an economic category has three features that act only in aggregate: the monetary nature of financial relations; distributive nature of financial relations; financial relations are always associated with the formation of cash income and savings, which take the form of cash funds. Let's take a look at each of these features.
1. Monetary nature of financial relations. The process of producing a social product and ensuring its reproduction is mediated by the movement of value in monetary form. Based cash flow finance emerges.
Money creates the conditions for the emergence of finance as an independent sphere of monetary relations, as well as a part of industrial relations. In a market economy, the concept of "finance" reflects the cash flow, which is understood as a continuous flow of money over time.
Finance is an integral part of monetary relations. However, not all monetary relations are financial relations. Finance differs from money both in content and in functions performed. Money is a universal equivalent that performs the functions of a measure of value, a means of circulation and a means of accumulation. The essence of finance is manifested in their specific functions. Finance is an economic tool for the distribution and redistribution of national income, a means of controlling the formation and use of funds of funds.
Finance is closely related to credit. This relationship has a related nature - commodity-money relations. The functioning of finance creates the basis for the formation of credit resources, which, in turn, contribute to the functioning of finance. The concept of "credit" reflects the movement of only temporarily free financial resources on the terms of payment, urgency and repayment.
2. The distributive nature of financial relations. The finances of any subject cover its monetary relations with all other participants in the economic process. Entering into such relations, economic entities, in fact, distribute among themselves the value of the gross national product, as well as part of the national wealth (land, subsoil, capital structures). In this sense, finance is of paramount importance in a market economy: first, money is appropriated, and through it, tangible and intangible goods.
3. Unlike money, finance is like money- this is a separate part of the funds, having a special purpose and relative independence of functioning.
Finance covers economic relations that are associated with the formation and use of decentralized and centralized funds. Decentralized finance includes the finances of enterprises, insurance and finances of citizens; public finances are formed in a centralized manner.
Decentralized enterprise funds include accumulation funds, consumption funds and a reserve fund.
Decentralized funds also include household budgets, which are formed in each specific case individually at the expense of wages, property income and social payments from the state from centralized funds.
Centralized funds of funds are accumulated at the national level. The main centralized fund is the budget . It is formed and used on the basis of economic relations between the state, on the one hand, and legal entities and individuals, on the other, regarding the formation and use of a social product. On the same basis, extra-budgetary centralized funds are formed - the Pension Fund of the Russian Federation, the Social Insurance Fund, etc.
If the essence of finance can be expressed in many aspects, then it is equally multifaceted in the functions of finance. From the standpoint of the normative theory, the functions of finance are a mechanism by which the state can influence the behavior of economic entities. Finance is an economic tool for the distribution and redistribution of national income. In this case, the essence of finance is manifested in the following functions:
Distributive function of finance is to provide business entities with the necessary resources, which are used in the form of special-purpose funds. Finance performs a distributive function, at the same time being an economic incentive for all participants in the economic process: the more financial resources are appropriated, the more opportunities there will be for investing and expanding the scale of each farm, as well as for improving its well-being. The sphere of influence of finance is much wider than purely economic relations, they affect politics, culture, science, and privacy citizens.
The redistribution of national income is associated with the territorial and intersectoral redistribution of funds in the interests of the most efficient and rational use of income and savings, as well as with the redistribution of income between various social groups of the population.
With the transition to a market economy in Russia, finances lost their purely redistributive meaning: when the income of well-performing enterprises through the state budget was transferred free of charge to poorly performing, unprofitable ones. Now finances will influence the expansion of the initiative and independence of all subjects of the economy, their implementation of the principle of self-financing.
stimulating function. The state, with the help of a system of financial leverage, can influence the development of enterprises and entire industries in the direction necessary for society. For example, the state uses budget resources on the development of priority sectors of the economy that determine scientific and technological progress; Low taxes stimulate production, while high taxes discourage it.
control function. Finance, as a category associated with the movement of the value of a social product, expressed in monetary terms, has the property (through financial resources and funds) to reflect the reproduction process as a whole and its various phases. This allows you to systematically control the cost proportions that are developing in society, which reflects the control function of finance. The control function is carried out:
- financial divisions of enterprises in order to identify reserves for the rational use of financial, labor, material resources;
- financial and tax authorities in terms of the timeliness of tax and non-tax deductions, the correct reflection of the costs of production and sale of products, etc.
Thus, finance can signal the course of the economic process, the difference between income and expenses, the suspension of movement in the system, the causes and perpetrators of deviations. The control function of finance is implemented through accounting, statistical or operational reporting, conducted according to a methodology approved by the state and recognized as reliable.
It should be emphasized that the distributive, stimulating and control functions of finance operate simultaneously, these are sides of the same process.
- THE ROLE OF FINANCE IN THE PROCESS OF REPRODUCTION OF GROSS DOMESTIC PRODUCT
First stage, production- the process of interaction of economic resources, organized with the aim of creating material goods necessary for the existence and development of society. Production is the basis for the formation of such financial and economic concepts as gross national product, national income, etc.
Gross domestic product (GDP is the current value of all final products (goods and services) produced during a certain year (mainly a year) in the country),
national income (NI - the value newly created for the year, which is calculated as part of GDP on income less depreciation and indirect taxes).
Maximization (GDP, ND) or minimization (inflation, deficit) of certain macroeconomic indicators is the goal of the development of the economic system, which is realized (or should be realized) with the help of finance.
These concepts, which are the main macroeconomic categories, primarily determine the beginning of the entire reproduction process, in each of the remaining elements of which (production, distribution, exchange, consumption) financial and credit relations and concepts have an independent meaning. This value can be transformed in a generalized directed form of the impact of financial relations on the course of the reproduction process in the opposite direction. Such financial elements (factors) of production as fixed and working capital, wage and material incentive funds, loan funds, etc., are the initial, starting stage of the reproduction process, which predetermines the next stage of the movement of cash funds.
The second stage is distribution. At the stage of distribution of the reproduction process, such financial and credit forms and relations arise that are the essence of finance. Here, on the basis of specific forms and methods of financing the exchange stage, such distribution elements of compensation are formed as investment funds, development budgets, depreciation funds, etc. These financial elements have a direct impact on the formation of relations of the production stage that are similar in financial content: working capital, the formation of payroll funds, the use of credit resources for production, etc.
The third stage is the exchange (circulation sphere).
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