Topic 16. Finance and financial system
16.1. Essence and functions of finance
16.2. The financial system, its elements and their relationship
Finance is a historical category, since it has stages of origin and development. They appeared simultaneously with the emergence of the state and changed along with it. Therefore, the essence of finance, the laws of their development, the scope and role in the process of social reproduction are determined by the nature and functions of the state.
The essence of finance is manifested in their functions , which is understood as the "work" performed by finance. Finance performs three main functions: distributive, stimulating and control.
Distributive function of finance. The distribution of the national income consists in the creation of the so-called basic or primary incomes. Their sum is equal to the national income. The main incomes are formed during the distribution of national income among the participants in material production. However, the distribution of the national income is not limited only to the distribution among those who created it, that is, among the participants in material production, but also to the non-productive sphere, where the national income is not created. These areas include the development priority sectors national economy, ensuring the country's defense capability, education, health care, management, social insurance and social security, maintaining depressed regions, etc.
Control function of finance. The control function is to control the distribution of gross domestic product, national income for the relevant funds and their spending for the intended purpose. The control function of finance is carried out through multifaceted activities financial authorities. Employees of the financial system, the treasury and the tax service exercise financial control in the process of financial planning, in the execution of the revenue and expenditure parts of the budget.
The stimulating function of finance. The essence of this function of finance is that the state, with the help of a whole system of financial levers, can influence the development of enterprises, entire industries in the direction necessary for society. Financial levers are: b budget, prices, tariffs, taxes, export-import duties.
2. Financial system, its elements and their relationship
The financial system is a combination of various spheres or links of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role, and social reproduction.
The existing differences both in the functional purpose of these subsystems, and in the methods, methods of formation and use of financial resources make it expedient to single out separate systems of financial relations: finances of organizations (economic entities), public finances (state and municipal finances), finances of households (population).
The state budget is the main link of the entire financial system. The state budget is the centralized monetary income of the state.
In addition to the state budget in any economy are formed and used outside budget funds. Off-budget funds are funds from the federal government and local authorities associated with the financing of expenses not included in the budget. The formation of off-budget funds is carried out at the expense of mandatory earmarked contributions, which for an ordinary taxpayer (enterprise, individual) are no different from taxes. Extra-budgetary funds are separated from budgets and have a certain independence.
An important element of general public finance is a state loan - it is a set of economic relations that develop between the state, on the one hand, and legal and individuals- on the other hand, regarding the formation, distribution and use of a special centralized fund of funds on the terms of urgency, repayment, payment in order to carry out the main functions of the participants in these relations.
Insurance funds provide compensation for losses incurred from natural disasters and accidents, and also contribute to their prevention.
Among the links of the financial and credit system, a significant place is occupied by the stock market, which is special kind financial relations arising from the sale and purchase of special financial assets - securities. The main task of the stock market is to ensure the process of capital overflow in industries with a high level of income.
The second subsystem of the Russian financial system is the finances of enterprises.
The finances of enterprises are part of the financial system, its link and characterize monetary relations associated with the formation, distribution and use of monetary resources to fulfill their obligations to the state, other enterprises and firms, employees, etc.
In the overall structure of financial relations, this part of the financial system occupies a defining, or key, position, because it is the real sector of the economy. This is where wealth is created, goods are produced and services are provided.
Essence and functions of finance
The set of monetary relations arising in connection with the movement of funds cash funds, form financial relations , to which it is customary to include monetary relations arising in the process of expanded production between:
The state and enterprises (organizations) for paying taxes and other payments to the budget, as well as for financing a number of expenses of enterprises from the budget;
The state and citizens when making mandatory voluntary payments to the budget and extra-budgetary funds;
Enterprises and higher organizations when creating centralized funds of cash and reserves;
Enterprises and off-budget funds when making insurance contributions to these funds;
Enterprises and banks in obtaining loans, paying interest on loans, keeping funds in bank accounts;
Enterprises and insurance bodies when paying insurance premiums and indemnifying from the insurance fund for damage in the event of insured event;
Enterprises and employees employed at these enterprises, when paying wages from the wage fund;
Economic entities (enterprises) in the course of their production and commercial activities when paying for purchased inventory items (raw materials, materials, fuel, electricity), as well as when selling finished products and provision of services. The company sells its products, provides services and receives the corresponding revenue. In this case, there is a change in the forms of advanced value (T-D) and financial relations arise, as a result of which the enterprise receives the corresponding amount of gross income, which is the main source of profit and cash.
In this way, finance- this is a system of economic relations associated with the formation and use of funds of funds based on the distribution and redistribution of GDP of national income and part of national wealth. Finance includes specific forms and methods of relationships between the state, enterprises (organizations) and citizens.
The following can be distinguished main features of finance:
Economic relations between business entities using money. At the same time, money is the material basis for the existence of finance;
In the process of economic relations, the formation of monetary funds from economic entities and the state and their use are carried out. The essence of finance, their specific content is revealed in their functions.
Finance, as an economic category, is a set of monetary relations regarding the distribution and redistribution of the value of the gross domestic product, national income and part of the national wealth, which results in the formation of cash incomes, receipts and savings of business entities, the state used to solve economic and social problems .
Functions of Finance
Under finance functions the manifestation of their inherent properties (appointment, activity, obligation, use, role), i.e. their role that they perform in the system of economic relations, is understood. The functions of finance concretize their essence, reveal its content.
Finance as an economic category is characterized by two functions: distribution and control.
The first function of finance at the national level is to distribution and redistribution national income, the material basis for the creation of which is the reproduction of GDP.
The national income is divided into two parts - the accumulation fund (for expanded reproduction) and the consumption fund. The ratio of these parts determines the proportions of the development of the economy and its structure.
In the future, there is a need to redistribute the national income between the production and non-production spheres, as well as across regions.
The ultimate goal of the distribution and redistribution of GDP and national income is to develop productive forces, strengthen the state, and achieve a high quality of life for the general population.
Finance performs its distributive function also in the process of formation and distribution of income of the enterprise (organizations).
Through the distributive function of finance, enterprises form funds of funds at the expense of proceeds from the sale of goods, finished products and work performed, direct them to reimburse costs (payment for goods, material costs, payment of wages) and the formation of net income (profit). A certain share of net income is contributed to the budget revenue.
The second function of finance is control. It is generated by the distribution function and manifests itself, first of all, in control over the distribution of the total social product and national income according to monetary funds and their targeted spending.
Finance at the level of the enterprise act as an instrument of control over the correct formation, distribution and use of funds of funds in the process of production and sale of products.
On a national scale, finance shows how the quantitative indicators of the distribution of financial resources, proportions or disproportions in the economy of industries, and the execution of the state budget are formed.
The distributive and control functions of finance are realized through the financial mechanism, which is part of the economic mechanism.
financial mechanism is a set of ways to manage financial relations.
It includes: forms of financial relations in the state; the procedure (rules) for the formation and use of centralized and decentralized cash funds; methods of financial planning; forms of financial management; financial legislation.
Basic concepts of finance
Finance is a system of economic relations that arise between the state, legal entities and individuals, between individual states regarding the formation, distribution and use of funds of funds. In other words, monetary relations, the implementation of which occurs through special funds, are financial relations.
Thus, finance an integral part of money relations. However, not all monetary relations are financial relations. Finance differs from money both in content and in the functions performed.
Finance is an economic tool for the distribution and redistribution of the gross domestic product, an instrument for controlling the formation and use of funds of funds.
The essence of finance is manifested in their functions: distributive, control, stimulating, fiscal.
The distributive function of finance is to provide business entities with the necessary financial resources, which are used in the form of special-purpose funds. Through taxes, funds are concentrated in the state budget, which are then directed to solving national economic problems, both industrial and social, financing large intersectoral, comprehensive targeted programs - scientific, technical, economic, etc. With the help of taxes, the state redistributes part of the profits of enterprises, firms, incomes citizens, directing it to the development of production and social infrastructure, for investments in capital-intensive and capital-intensive industries with long payback periods.
Finances associated with the movement of the value of the social product, expressed in monetary terms, have the property of quantitatively (through financial resources and funds) reflecting the reproduction process as a whole and its various phases. This allows you to systematically control the emerging economic proportions in society, which reflects another function of finance - control.
The stimulating function of finance is manifested in the following: by maneuvering tax rates, benefits, fines, changing the conditions of taxation, introducing some and canceling other taxes, the state creates conditions for the accelerated development of certain industries and industries, contributes to solving problems that are relevant to society. With the help of taxes, benefits, sanctions, the state can stimulate technological progress, an increase in the number of jobs, capital investments in the expansion of production.
The fulfillment of the fiscal function by finances is due to the fact that with the help of taxes, a part of the income of enterprises and citizens is withdrawn for the maintenance of the state apparatus, the defense of the country and that part of the non-productive sphere, which either does not have its own sources of income (libraries, archives), or has insufficient sources. income to ensure the proper level of development (fundamental science, theaters, museums).
The concept of the financial system of the state and its structure
The totality of the financial relations of the national economy forms the financial system of the state. From the point of view of socio-economic relations, it consists of centralized, decentralized finance and household finance.
Centralized finance is the state budget system, state credit, special off-budget funds, property and personal insurance funds. They are used as a tool for regulating the national economy as a whole, solving a number of important economic and social problems.
Decentralized finance - the finance of firms and enterprises of various forms of ownership. These are financial relations between legal entities, legal entities and the state, legal entities and individuals. In their stimulating function, they are used to regulate economic and social relations within individual economic entities. The finances of firms, enterprises and sectors of the national economy form the basis of finance. Here the vast majority of financial resources are formed. The overall financial situation of the country largely depends on the state of the finances of enterprises of various forms of ownership.
In conditions market relations enterprises carry out their activities on the basis of commercial calculation, in which incomes must correspond to expenses, and the main source of production and social development of collectives is profit. At the expense of profit, production and social funds, funds for investment. Resources are also used financial market.
Household finances are personal finances, i.e. financial relations between individuals living together and running a common household. (Unlike a family, a household may include, in addition to relatives, also people who fully or partially contribute their share to the household budget, and also consist of one person who provides for himself financially.)
Each element of the financial system in a special way affects production, has its own inherent functions. Thus, with the help of centralized finance, resources are mobilized into the main centralized fund of the state and their distribution and redistribution between sectors of the national economy, economic regions, and individual groups of the population takes place. Extra-budgetary funds within the framework of centralized finance have a strictly designated purpose: the largest social Pension Fund The Russian Federation is mobilizing funds for the payment of pensions to citizens of the country. Property and personal insurance funds are designed to compensate for damage caused by natural disasters enterprises and the population, as well as to pay material support to the insured person or his family in the event of an insured event. State credit as an element of centralized finance is a form of credit relations between the state and legal entities and individuals, in which the state acts mainly as a borrower of funds.
The finances of firms serve production. With their participation, GNP is created, distributed within firms and sectors of the national economy.
Household finances are the material basis of their life, as they imply control over future incomes and expenses within a separate economic unit of society.
Thus, each link of the financial system is a certain area of financial relations, and the financial system as a whole is a set of various areas of financial relations, in the course of which funds of funds are formed and used.
From the point of view of macroeconomic analysis and the role of the state in the development of the national economy, public finances are of particular importance. The principle of their construction, characteristic of financial systems modern developed countries is fiscal federalism, in which there is a clear delineation of functions between different levels of the system. In accordance with this principle, in unitary states, local budgets are not included in the state budget, in federal states, local budgets are not included in the budgets of members of the federation, and the latter are not included in the state federal budget.
As a result of the reforms carried out in the field of finance, the state finances of the Russian Federation are also built in accordance with the principle of fiscal federalism.
The budget system of the Russian Federation
Let's consider the state budget system of Russia within the framework of centralized finance.
The budget device is the organizational principles for building the budget system, its structure, the relationship of the budgets combined in it. The budget structure is determined by the state structure - in unitary states there are two levels: state and local budgets, in federal - 3 links: the federal budget, the budgets of the members of the federation and local budgets. The budgets of the lower self-government bodies do not include their income and expenses in the budgets of the higher levels.
In accordance with the Federal Law "On the Fundamentals of the Budget Structure and Budget Process in the RSFSR", the budget system of our country is a set of budgets of three levels - federal, subjects of the Federation and administrative-territorial entities. The budget system of the Russian Federation is based on economic relations and the principles of unity, completeness, reality, publicity and independence of the three budgets.
to the budget system Russian Federation (consolidated budget) as independent parts include:
Federal budget;
21 budgets of subjects of the federation; 55 regional and regional budgets, city budgets of Moscow and St. Petersburg; 10 district budgets of autonomous regions and the budget of the Jewish Autonomous Region;
About 29 thousand local budgets(urban, regional, rural).
All these budgets function autonomously, each of them has a legally defined source of income and directions for spending funds. Thus, the government is completely independent in the goals relating to the nation as a whole: defense spending, space. Local governments finance school development, public order, and so on.
The leading element of the state budget system is the state (federal) budget - the main financial plan for the formation and use of the state's centralized monetary fund. It is with its help that the state carries out mainly territorial and intersectoral distribution and redistribution of the gross national product (up to 40% of the national income).
The main revenues of the state budget are taxes and non-tax payments. The state budget in the Russian Federation (as well as in countries with a developed market economy) is assigned the main taxes - corporate income tax, excises, VAT, customs duties. Tax revenues of the state budget also include fines and penalties paid for violation of tax legislation. Non-tax revenues are treated as compulsory payments: income from the use of federally owned property, income from the sale of state-owned property, income from the sale of state reserves, income from foreign economic activity, - as well as fines, the collection of which is not related to tax legislation, income from the sale of confiscated goods, etc.
In accordance with the Constitution and laws of the Russian Federation, the revenue side of territorial budgets should consist of fixed and regulatory revenues, subsidies and subventions, and credit resources.
Fixed incomes go entirely to the relevant budgets (the tax of the subject of the Federation is the property tax of enterprises; local taxes; tax on the property of individuals; land tax, etc.).
Regulatory revenues are funds transferred from a higher budget to a lower one, in excess of the fixed revenues to cover its expenses, based on the size of interest deductions.
Grants are fixed amounts transferred by higher budgets to lower ones to replenish revenues and minimize the budget deficit.
Subventions are strictly earmarked funds, which are also transferred to lower budgets.
Credit resources - funds transferred on a reimbursable basis with or without interest.
The functions of drawing up and executing budgets are assigned to the executive authorities. The legislature is responsible for reviewing and approving the budget. In accordance with the laws, the government of the Russian Federation adopts a resolution on the development of the budget system for the coming financial year (in Russia it is a calendar year). Next, work is organized to draw up a draft budget: socio-economic development is forecast, the main development indicators are worked out and agreed upon.
State budget of the Russian Federation, its expenses and revenues
The main link of the Russian budgetary system is the Federal budget of the Russian Federation. It accumulates the bulk of the resources of the country's budget system. The centralization of funds in the federal budget makes it possible to maneuver resources, direct them to the defining areas of economic and social development, and implement a unified socio-economic policy in the country.
During the transition to a market economy, state budget funds should be directed primarily to financing the structural restructuring of the economy, the solution of targeted programs, social protection the poorest segments of the population.
Given the current situation in our country, it should be noted the tasks that Russian budget at this stage of economic development:
Overcoming the consequences of the financial crisis, maintaining the standard of living of the population and ensuring the functioning of the real sector of the economy;
Ending the economic recession and ensuring economic growth;
Stabilization of the monetary system and the ruble exchange rate;
Reducing the tax burden, creating favorable conditions for industrial investment, increasing the level of tax collection;
Implementation of the restructuring of the state debt of the Russian Federation;
Minimization of government borrowings of the Russian Federation in the financial markets and reduction of the state budget deficit;
Reducing non-payments, reducing unreliable forms of payment, including using barter;
Full-scale transition to the treasury system of execution of the federal budget, transition to this system of execution of the budgets of the constituent entities of the Russian Federation, local budgets, budgets of state extra-budgetary funds;
Full fulfillment by the state of its obligations. The budget of the Russian Federation as the main financial
The plan of the state is based on the indicators of the forecast of the socio-economic development of the country for the next year. General indicators and the structure of income and expenses are associated with the volume of social production and are determined by the tax system and economic policy states.
The state budget is interconnected with the financial plans of enterprises and organizations, monetary incomes and expenditures of the population.
Federal budget revenues are formed from:
Tax on profit (income) of enterprises and organizations - at established rates in accordance with the legislation of the Russian Federation;
Personal income tax;
Tax on gambling business;
VAT on goods produced in the territory of the Russian Federation;
VAT on goods imported into the territory of the Russian Federation;
Excises on oil, natural gas, cars, motor gasoline, ethyl alcohol;
Licensing and registration fees;
Tax on the purchase of foreign banknotes and payment documents denominated in foreign currency;
A single tax on imputed income for certain types of activities;
Tax on operations with securities;
Payments for the use of subsoil;
Payments for the use of the forest fund;
Fees for the use of water bodies;
Land tax and rent for land of cities, towns and agricultural land in parts accumulated in the federal budget to finance centralized activities;
Payments for standard and excess emissions and discharges of harmful substances;
Customs duties and customs fees and other customs payments, income from foreign economic activity;
State duty;
Dividends on shares owned by the federal government;
Profits of the Central Bank of the Russian Federation;
Consular fee levied on the territory of the Russian Federation;
Other taxes, fees, duties and other payments.
Tax revenues will amount to 84% of the Federal budget, non-tax revenues - 7%, incomes of target budget funds - 9%.
Non-tax revenues are made up of income from foreign economic activity, as well as income from state-owned property: transfer of profits Central Bank Russian Federation, dividends on shares owned by the state, income from the lease of state-owned property, consular fees, income from holding all-Russian state lotteries.
Budget expenditures of the Russian Federation include the following main cost groups:
Public administration;
International activity;
National Defense;
Law enforcement and state security;
federal judiciary;
Basic research;
Industry, energy, construction;
Agriculture and fishing;
Education;
Culture and art;
Mass media;
Health care and physical culture;
Social politics;
Servicing the public debt;
Financial assistance to the constituent entities of the Russian Federation and closed administrative-territorial entities;
Other expenses.
Republican (budgets of subjects of the federation) and local budgets have their own sources of funds and directions for spending.
Secondary taxes (mainly property taxes) are assigned to the republican and local budgets. In these budgets, in comparison with the state budget, a higher proportion of funds is directed to social needs.
Thus, the revenues and expenditures of the budgets of the republics within the Russian Federation and local budgets do not repeat the revenues and expenditures of the federal budget. In addition, the budgets of the subjects of the federation and local budgets receive the funds they need through subsidies and loans from the state budget and the issuance of local loans guaranteed by the government, as well as through transfers to revenue side these budgets (on a legislative basis) a certain share of the proceeds from a number of federal taxes.
Obviously, the main problem of the effective use of the principle of fiscal federalism in the formation of the financial system of the state is to determine the optimal amount of financial resources going to the federal budget, on the one hand, and to regional and local budgets, on the other.
Extra-budgetary funds play an important role in the structure of centralized finance. In countries with developed market economies, the largest off-budget funds are the national insurance funds, which are formed from the insurance premiums of employees of enterprises, entrepreneurs and subsidies from the state budget. The funds from these funds are used to pay pensions for old age, disability, in case of loss of a breadwinner, benefits for temporary disability, unemployment.
Within the framework of the Russian financial system, there are currently more than 30 off-budget funds for social and industrial purposes. All off-budget funds have a strictly targeted purpose: to expand social services to the population, stimulate the development of backward infrastructure sectors, and provide additional resources for priority sectors of the economy.
In accordance with the Decree of the President, in order to strengthen control over the spending of state financial resources in the republican budget of the Russian Federation, all state targeted budget funds, the income of which is formed from mandatory payments by firms, enterprises, institutions, organizations, with the exception of the Pension Fund, Social Fund insurance and the Compulsory Medical Insurance Fund, while maintaining the target orientation of the consolidated funds. These funds include: the Federal Road Fund, the Fund for the Development of the Customs System of the Russian Federation, the Interdepartmental Development Fund tax system and Tax Service of the Russian Federation, the State Fund for Combating Crime, the Federal Environmental Fund of the Russian Federation.
One of the links in the financial system of the state is the state credit. The main form of economic relations within the framework of a state loan is a situation where the state acts as a borrower of funds. Less often, it acts as a creditor, providing loans to legal entities and individuals. In cases where the state assumes responsibility for the repayment of loans or the fulfillment of other obligations assumed by individuals and legal entities, it is a guarantor.
As an economic category, public credit is at the junction of two types of monetary relations: finance and credit, and bears the features of both. As a link in the financial system, it serves the formation and use of the centralized monetary funds of the state, i.e. the state budget and off-budget funds of all levels.
State credit performs two functions: fiscal and regulatory. Through the fiscal function of the state credit, the formation of centralized monetary funds of the state is carried out. In countries with developed market economies, loans are the main source of financing the budget deficit.
The placement of new government loans to pay off debt already issued is called "refinancing the government debt."
Government loans are classified:
By subjects of loan relations: placed by central and local governments;
Depending on the location: internal and external;
Depending on circulation on the stock market: market, which are freely sold and bought, and non-market, which are not subject to circulation on the securities market;
Depending on the maturity: short-term (maturity up to a year), medium-term (from 1 to 5 years) and long-term (over 5 years);
By the nature of the debt to be repaid: winning (based on a lottery), interest-bearing and zero-coupon. With a zero coupon, short-term government securities are usually issued; they are sold at a discount, i.e. below cost, but redeemed at face value
The concept of "finance" is often identified with money. But these are by no means synonyms. Finance reflects any monetary relations that arise between two specific entities, meaning that money is the material basis for the functioning and existence of finance. In addition, these subjects have different rights within the framework of these relations, since one of them, namely the state, has very special powers.
It is customary to single out finance from the totality of monetary relations in general. So, those monetary relations that occur between citizens cannot be attributed to finance. After all, they are regulated by the state by civil law methods, a characteristic feature of which is the complete equality of subjects within the framework of these relations.
Finances are an important part of money relations. The essence and functions of finance differ markedly from money. Money is nothing more than a universal instrument for measuring labor costs. But finance is an economically necessary tool for the redistribution and distribution of national income and GDP. They are a tool for controlling the use and formation of money in general.
Essence and enterprises are mutually dependent concepts. After all, the essence of finance is manifested in the functions. There are three functions of finance: the first is distribution, the second is control, and the third is regulatory.
The economic essence and functions of finance are concepts that play an important role in the distribution of national income. Here we will focus on the distribution function of finance. The sum of primary or basic income is equal to the national income. When the national income is distributed among all participants in concrete material production and fixed assets are formed. These participants can be divided into two large groups: the first is the wages of employees, workers, incomes of farmers or other persons who are engaged precisely in the sphere of material production; the second is the income of institutions in this area. But primary income cannot ensure the fulfillment of tasks in full, and therefore it is necessary to redistribute and distribute the national income. As a result, production or secondary incomes are formed. The essence and functions of finance are interconnected and subject to one goal. The distribution function is needed in order to develop and create market structures of the economy, to ensure a high standard of living for different segments of the population, and so on.
The essence and functions of finance must be understood in order to control the distribution of GDP. This task is performed by the control function of finance. It covers the non-manufacturing and manufacturing sectors. Such control is aimed at a significant increase in incentives in the economy, the careful and rational use of labor, material, and financial resources. is necessary to check whether the legislation on various financial issues is strictly observed, how fully the obligations to tax service, the budget system and banks.
The essence and functions of finance cannot be imagined without a regulatory function. It is associated with any state intervention through finances (for example, taxes, government spending or credit) in the production process.
The essence and functions of finance are realized exclusively through which there is a part of the economic mechanism. And the financial mechanism includes many components: from the procedure for using funds of funds to financial legislation.
1. Essence and functions of finance
Finance- this is an economic category representing monetary relations arising from the formation, distribution and use of centralized and decentralized funds of funds. Finance is expressed by the distribution and redistribution of GDP and part of nat. Income. Centralized funds are formed at the state level, and decentralized at the level of business entities. financial resources. (Consolidation- Merger) Functions of Finance reflect their essence, are divided into basic and derivative: Basic: distribution, control Derivatives: redistributive, regulating That part of finance that functions in the sphere of material production and participates in the process of creating cash income and savings, but also the function of generating cash income (regulatory). Each financial transaction means the distribution of the social product and national income and control over this distribution. The distribution function is manifested in the distribution of national income, when the so-called basic or primary incomes are created. Their sum is equal to the national income. As a result of redistribution, secondary, or production incomes are formed. These include income received in the non-productive sphere, taxes (personal income tax, etc.). Secondary incomes serve to form the final proportions of the use of national income. The ultimate goal of the distribution and redistribution of national income and GDP, accomplished with the help of finance, is to develop productive forces, create market structures economy, strengthening the state, ensuring a high quality of life for the general population. At the same time, the role of finance is subordinated to the tasks of increasing the material interest of employees and collectives of enterprises and organizations in improving financial and economic activities, achieving the best results at the lowest cost.2. The role of financial relations in the system of market economy relations
3. financial policy
financial policy- a set of purposeful actions using financial relations (finance). Financial policy involves the establishment of goals and means to achieve the goals. Financial policy - a set of government measures to use financial relations to carry out the functions of the state.
1. Development of a general concept of financial policy, determination of its main directions, goals, main tasks.
2. Creation of an adequate financial mechanism.
3. Management of the financial activities of the state and other economic entities.
The basis of financial policy is strategic directions that determine the long-term and medium-term prospects for the use of finance and provide for the solution of the main tasks arising from the peculiarities of the functioning of the economy and social sphere countries. At the same time, the state selects the current tactical goals and objectives for the use of financial relations. All these activities are closely interconnected and interdependent.
The objectives of the financial policy are:
1. providing conditions for the formation of the maximum possible financial resources;
2. establishing a rational distribution and use of financial resources from the point of view of the state;
3. organization of regulation and stimulation of economic and social processes by financial methods;
4. development of a financial mechanism and its development in accordance with the changing goals and objectives of the strategy;
5. Creation of an effective and maximally business-like financial management system.
In the process of conducting financial policy, it is especially important to ensure its relationship with other components. economic policy- credit, price, monetary.
Evaluation of the results of the financial policy of the state is based on its compliance with the interests of society and most of its social groups, as well as on the results achieved, arising from the goals and objectives set. An important component of financial policy is the establishment of a financial mechanism through which all state activities in the field of finance are carried out.
financial mechanism- a system of forms, types and methods of organizing financial relations established by the state.
Elements of the financial mechanism:
forms of financial resources;
methods of their formation;
· the system of legislative norms and standards that are used in determining the revenues and expenditures of the state;
organization of the budget system, enterprise finance and the securities market.
The goals of financial policy may be:
political goals, i.e. achieving goals in the field of foreign and domestic policy
economic goals, that is, the achievement of goals in the field of the economy at various levels
social goals, that is, the achievement of goals in the sphere of social relations (social classes and strata of the population, social benefits, distribution of social benefits).
Financial policy as a set of targeted actions using financial instruments, leverage and incentives can be implemented at different levels:
world
regional
national
at the level of individual regions within the country
at the level of an enterprise, organization (economic entity)
individual entrepreneur
at the individual household level
The most important components of financial policy at the state level are:
budgetary policy
customs policy
· money-credit policy
investment policy
Financial policy is part of the overall economic policy.
4. Financial management
financial management is aimed at obtaining funds from outside, and in the future at their disposal in order to achieve the best result (the level of profit received).
Management is inherent in all spheres of human activity, including financial, and is a set of techniques and methods of purposeful influence on an object in order to achieve a certain result.
The financial management system in modern market economy is an interconnected set of measures. instruments, as well as financial institutions that ensure the stable and efficient functioning of the financial system as a whole and its individual links, contributing to the development of the real sector of the economy and solving social problems.
In financial management, as in any managed system, objects and subjects of management are distinguished. As objects financial management There are various types of financial relations. The subjects of financial management are organizational structures that manage.
The basis of information support of the financial management system is any information of a financial nature ( financial statements, messages from financial authorities, information from institutions of the banking system, commodity, stock, currency exchanges, etc.).
The state organization of financial management in modern society is very complex and requires a balance of interaction between various branches of government, as well as financial management bodies (the Government of the Russian Federation, the Ministry of Finance of the Russian Federation, the governments of the constituent entities of the Russian Federation, etc.).
For the regulation of finances, a sufficiently large autonomy (individual freedom of action) of the Central Bank of the Russian Federation in the implementation of monetary policy (government policy affecting the amount of money in circulation in order to stabilize prices) and the functioning of such institutional structures as commercial banks, investment funds, insurance companies and other financial institutions..
Financial management at enterprises is carried out by financial departments and services. Proper organization of financial management is essential for their use.
The financial apparatus is a set of all organizational structures that manage finances. In each sphere of management and each link of financial relations, the subjects of management use specific methods targeted financial impact.
5. Financial planning and forecasting
First, we predict the market situation . financial planning- one of the most important elements of the financial management system. Financial planning is carried out at the level of the state and households. Subjects. Planning can be short-term, medium-term and long-term.
An example of state planning is budget planning, which is the process of determining the volume of that part of financial resources that can be mobilized in the state during the planning period. Budgeted and used at national prices.
At the same time, the parameters of distribution and redistribution of resources between the links of the budgetary system are determined, which is connected with the budgetary policy of the state.
The market economy is flexible and maneuverable; forecasting and planning contribute to the effectiveness of its functioning. Hence the problem of interconnections between forecasts and planned calculations (indicators).
To solve the problem, a number of calculation methods are used, both planned and predictive-indicative.
· extrapolation method- consists in determining financial indicators (liquidity, solvency, revenue, profit)
· Normative method- based on the use of established norms and standards
· Method of mathematical modeling- consists in building financial models that simulate the course of real economic and social processes (extensiveness and intensity)
· balance method is used to coordinate the directions of use of financial resources with the sources of their formation and to link all types financial plans between themselves.
6. Characteristics of financial planning methods
balance method provides for the consistency of costs with the sources of their coverage, the linkage of all sections of financial plans with each other, as well as production and financial indicators. Compliance financial balance allows you to prevent the occurrence of disproportions between the costs and incomes of the enterprise, industry, budgets of the entire national economy; to determine the necessary rates and proportions of the development of the national economy; justify them comprehensively, taking into account the mobilization of internal resources.
Program target the method will be developed in market conditions as one of the methods of financial forecasting on the basis of scientific and technical programs carried out at different levels - national, sectoral, primary. Financial programming is a method of financial planning that uses the program-target method, which is based on clearly formulated goals and means to achieve them:
setting priorities;
improving the efficiency of funds discrepancy;
termination of funding in accordance with the choice of an alternative option.
Multivariance of calculations, choice best solutions suggest a wider use of economic and mathematical methods, computers for financial forecasts for a long period.
In financial planning, the following organizational principles have historically been formed: departmental, sectoral, territorial and subject-targeted.
Departmental and industry principles were characteristic of the period of centralized management of the economy with its rigid, command methods.
In a market economy, greater use receive territorial and subject-target principles. The use of territorial financial planning allows you to determine the financial resources of individual administrative-territorial units, helps to put the dependence of the volume of resources on the results of economic activity; in case of a lack of resources for objective reasons, it is possible to redistribute them through centralized funds to ensure an acceptable social development of the region.
Subject-target the principle in financial planning is aimed at the specific formation and use of financial resources to ensure certain economic, social, environmental, cultural and other programs, regardless of the sources of origin of resources.
Drawing up financial plans is carried out in stages.
At the first stage of planning, an economic analysis of the fulfillment of financial indicators for reporting period. Analysis of financial indicators is carried out in conjunction with production data. Comparison of planned receipts and expenditures with actual ones, in combination with production indicators, makes it possible to reveal the reasons for the incomplete accumulation of funds, determine the degree of efficiency of their use, and identify on-farm reserves.
At the second stage, calculations are made of specific types of income and expenses for the planned period for the main groups of income and expenses based on indicators of plans and programs for social and economic development.
At the third stage, individual tasks, articles are linked into a single whole, balanced. If the envisaged measures and planned targets do not agree with the financial resources, sources are sought for increasing incomes and savings, ways are determined for their more efficient use, and in some cases, a direct reduction in certain types of expenses.
7. Financial control
Financial control- this is a set of actions and operations to check the financial and related issues of the activities of business entities and management using specific forms and methods of its organization.
Forms of manifestation: external / internal - mandatory / initiative
1.Required control over the financial activities of individuals and legal entities is carried out on the basis of the law. This applies, for example, to tax audits, control over the targeted use of budgetary resources, mandatory audit confirmation of financial and accounting data of enterprises and organizations, etc., carried out mainly by external, independent controllers. 2. Enterprising (internal) control does not follow from financial legislation, but is an integral part of financial management to achieve tactical and strategic goals.
2. By time:
-Preliminary financial control conducted prior to financial transactions and is essential to prevent financial irregularities. It provides for an assessment of the financial feasibility of expenditures in order to prevent wasteful and inefficient spending of funds. An example of such control at the macro level is the process of drawing up and approving budgets of all levels and financial plans of extra-budgetary funds based on the forecast of macroeconomic indicators of the development of the country's economy. At the micro level, this is the process of developing financial plans and estimates, credit and cash applications, financial sections of business plans
is made at the time of monetary transactions, financial transactions, issuance of loans and subsidies, etc. It prevents possible abuses in receiving and spending funds, promotes compliance financial discipline and timeliness of cash payments. Accounting plays an important role here.
- Subsequent financial control carried out by analyzing and auditing the reporting financial and accounting documentation, designed to assess the results of the financial activities of economic entities, the effectiveness of the implementation of the proposed financial strategy, compare financial costs with the forecasted ones, etc.
4. According to the degree of imperativeness: state - not state (for example - audit)
5. According to the methods of conducting: - verification - inspection - supervision - analysis of financial activities - observation (monitoring) - audit
Branch types of control.
1. Budget control
2. Tax control
3. Currency control
4. Banking control
5. Customs control
Depending on the level, the following types of control are distinguished:
1. Federal
2. Regional (control of subjects of the Russian Federation)
3. Municipal
State and municipal financial control
Control of the state and municipalities represented by the competent authorities, as well as other authorized bodies, over the legality and expediency of actions in the process of accumulation (accumulation), distribution, use of state cash income and property entities for the effective development of the country.
Tasks
1. ensure the economic security of the state
2. ensure control over the formation of state revenues
3. verification of the fulfillment of state obligations by individuals and legal entities
4. checking the intended use of the budget
5. improving the interaction and coordination of the activities of regulatory authorities in the Russian Federation.
Methods of financial control
Methods of financial control are the methods and ways of its implementation.
1. Examination
2. Inventory
3. Verification
4. Audit (comprehensive audit of the financial activities of the audited organization)
Objects of control- funds of the federal budget.
8. The financial system, its functions and composition
Financial system- a set of financial bodies and institutions that manage cash flows. The financial system is considered from two sides: internal structure and organizational structure.
Internal structure The financial system reflects the objective set of financial relations and is common to all countries. It consists of spheres and links. The sphere characterizes a set of financial relations generalized on a certain basis. Links show a separate part of financial relations. The level of the economic system is taken as the basis for the allocation of spheres and links.
Organizational structure financial system is a set of financial bodies and institutions that characterizes the financial management system. The allocation of management bodies of the financial system is based on its internal structure. The general management of financial activities in the country is carried out by state authorities and administrations.
Financial structure systems is the totality of its elements and the relationships between them. It is known that the state financial system includes four links (subsystems):
1. State budget;
2. local finance;
3. special off-budget funds;
4. finances of public corporations.
The financial system, as a set of financial institutions, in these cases consists of the following links:
─ the budgetary system with its constituent state (federal, republican, regional, regional) and local budgets;
─ finances of economic entities and branches of the national economy;
─ property and personal insurance;
─ credit (state and bank).
Providing ways displacement economic resources in time, across state borders and from one sector of the economy to another.
Providing ways risk management.
Providing ways clearing (non-cash settlement between countries, for goods delivered, transferred to each other) and settlements, facilitating trade.
Providing a mechanism pooling financial resources and separation holdings in various enterprises.
Supply price information, allowing to coordinate a decentralized decision-making process in different sectors of the economy.
Providing ways solution to the incentive problem. These problems arise in situations where one of the participants in the transaction has information that the other does not; or if one of the participants acts as an agent (commission agent) on behalf of the second.
9. Links of the financial system and their characteristics
The links of the financial system are a grouping of separate financial categories with common features. Each link of the financial system performs its functions, but together they form the country's financial system. All elements and links of finance are interconnected, which can be one- or two-way. One-way relationships are those in which there are financial relations only for the receipt of funds or for their provision. Bilateral financial relations appear when there are financial relations, both for receiving and for providing funds.
Despite the peculiarities of the individual links of the financial system, their socio-economic content is the same: they serve as a tool for the exploitation of the working people, the interests of big monopoly capital. Despite the formal autonomy of a number of links, they are dependent on the state budget, receiving subsidies, grants, loans from it.
The state budget.
The budget system of the Russian Federation consists of three levels: the federal budget, regional budgets and local budgets.
Federal budget- the most important link in the financial system of the country. In essence, these are the financial resources of the federal state. The federal budget includes revenues and expenses organically related to macroeconomic indicators, the volume of taxes and the objectives of the financial policy of the state.
The budget of the subject of the Russian Federation- this is regional budget, including the republican, regional, regional budgets and the budgets of large cities (for example, such as Moscow and St. Petersburg).
Local budgets cover the budgets of cities that do not have district divisions, and districts with the inclusion of the budgets of the district center.
Extrabudgetary funds
1) state funds not included in the state budget and used for a specific purpose (for example, state pension fund, state social insurance fund, compulsory medical insurance fund);
2) funds of organizations, institutions, municipal bodies, not included in the income and expenditure items of budgets, financed from other, non-budgetary sources.
Extrabudgetary funds- These are the funds of the federal government and local authorities associated with the financing of expenses not included in the budget.
The creation of state social non-budgetary funds is primarily due to the need to insure social risks, which are inevitable in a market economy.
State loan reflects credit relations regarding the mobilization by the state of temporarily free funds of enterprises, organizations and the population on the basis of repayment to finance public expenditures.
Individuals and legal entities act as lenders, while the state represented by its bodies acts as a borrower. The state attracts additional financial resources by selling bonds, treasury bills and other types of government securities on the financial market. It should be noted that there is a loan at all levels of financial management. State loan- these are credit relations between the state, legal entities and individuals, in which the state acts mainly as a borrower. The state loan is carried out by selling government securities to individuals and legal entities. Thus, it is formed state debt.
With a state loan, the state acts not only as a borrower, but also as a lender. The government can provide loans to residents (mainly in the form of a short-term budget loan.
insurance fund .
Insurance is the formation and use of the FDS associated with the occurrence of an insured event. From the funds of the insurance funds, the victims are paid an insurance sum of a certain amount.
There are specialized insurance companies on the market that sell insurance products in the form of compulsory and voluntary insurance.
Compulsory insurance expresses civil law relations related to the formation and use of the resources of the insurance fund by virtue of law. In the Russian Federation, the types, conditions and procedure for conducting compulsory insurance are determined by the current legislation.
Voluntary insurance differs from compulsory insurance in that civil law relations arise by virtue of the will of the parties - the insurance company and an individual or legal entity, which are fixed in a written insurance contract concluded between them.
There are five main types of insurance:
1 Personal insurance - a type of insurance, the object of which is the life, health and ability to work of a person;
2 Property insurance is a type of insurance, the object of which is property in various types;
3 Social insurance - a type of insurance, the object of which is the income of citizens;
4 Risk insurance - a type of insurance, the essence of which is to reduce the risk of business transactions;
5 Liability insurance - a type of insurance, the object of which is the liability of the insured to third parties.
Stock market.
Among the links of the financial and credit system, the stock market occupies a special place. It can be identified as a link, since the stock market is a special type of financial relations arising from the sale and purchase of specific financial assets - securities.
Stock Market Challenge- ensuring the process of capital overflow in industries with a high level of income. The stock market serves to mobilize and effectively use temporarily free funds. Its peculiarity lies in the fact that stock market participants expect to receive a higher income compared to investing money in a bank. However, the downside of increased income is increased risk. The principles of using financial resources in the stock market depend on the types of securities in which they are invested, and on the types of transactions with securities.
Government securities are:
1. GKO (government short-term obligations)
2. GDO (government long-term obligations)
3. OFZ (federal loan bonds)
4. OVVZ (bonds of an internal foreign currency loan)
5. Bonds of the state savings loan
6. State housing certificates
10. Financial flows at the macro level
financial flow– any movement of funds in the macro- or microeconomic environment. Financial flows serve the movement in time and space of commodity-material and commodity-intangible goods (services, capital and intangible assets).
By purpose, financial flows are divided into: 1) due to the process of purchasing goods; 2) investment; 3) on the reproduction of the labor force; 4) associated with the formation of material costs in the process production activities enterprises; 5) arising in the process of selling goods.
According to the types of economic relations, horizontal and vertical financial flows are distinguished. The first reflect the movement of financial resources between equal business entities; the second - between parent and subsidiary commercial enterprises.
The following economic entities participate in the functioning of the macroeconomic system of any country: firms, households, the state, foreign economic entities.
Firms can act as exporters, importers, consumers of resources and suppliers of products. The flow of goods and services is balanced by the counter flow of cash payments made at the same time.
The population sells its labor, purchases goods and services, pays taxes, invests its savings in various kinds of property.
The state makes social payments (transfers to the population), is a borrower and a creditor.
The corresponding financial flows are reflected in fig. 2.
Rice. 2. Financial flows at the macro level:
1 - government loans; 2, 8, 16, 17 - dividends, interest, rent; 3 - taxes; 4 - transfers, remuneration of public sector employees; 5 - taxes, purchase of government securities; 6 - loans, percentage; 7 - payment for public procurement; 9 - payment for exported goods and services; 10 - payment for imported goods and services; 11 - cost of goods and services; 12 - wages, credit; 13, 15 – cost of resources; 14 - investments; 18 - savings
11. Finance of the real sector of the economy
Real sector of the economy(RSE) - a set of sectors of the economy that produce tangible and intangible goods and services, with the exception of financial, credit and exchange operations, which are related to the financial sector of the economy.
External audit is carried out by representatives of audit firms, which are non-state employees, independent auditors.
Audit firms do not have the right to carry out other activities. The audit can be carried out as a legal entity. Persons and physical Persons who have passed state Registration and registered as entrepreneurs. Auditors can be foreign entities, the Central Bank is required in the audit.
All services of auditors are paid, as a rule, relations are formed at the conclusion of an agreement for the provision of services at contractual prices. The results of the audit are drawn up in the form of an audit report. This document has legal Force for all subjects of information users.
There are 4 types of conclusions:
1) conclusion without remarks, i.e. confirmation of the reliability of the indicators of the Finn. Reporting and accounting. balance
2) conclusion with comments, i.e. generally positive opinions about reliability, but there are some assumptions, a list of which is set out in the analytical section "conclusion"
3) negative conclusion
4) the conclusion is not drawn up if it is not possible to express one's own opinion due to the absence or non-receipt of the necessary documentation and information from the audited subject
Financial management is aimed at managing the movement of financial resources and financial relations that arise between business entities in the process of movement of financial resources. Thus, financial management includes a strategy and tactics of management. The strategy in this case refers to the general direction and method of using funds to achieve the goal. This method corresponds to a certain set of rules and restrictions for decision-making. The strategy allows you to focus on solutions that do not contradict the adopted strategy, discarding all other options. After reaching the goal, the strategy as a direction and means of achieving it ceases to exist. New goals set the task of developing a new strategy. Tactics are specific methods and techniques to achieve the goal in specific conditions. The task of management tactics is to choose the most optimal solution and the most appropriate management methods and techniques in a given economic situation.
The purpose of financial management is to maximize profits, the welfare of the enterprise with the help of a rational financial policy. Finnish tasks. management:
1. Ensuring the most efficient use of financial resources.
2. Optimization of cash flow.
3. Cost optimization.
4. Ensuring minimization financial risk at the enterprise.
5. Assessment of the potential financial capabilities of the enterprise.
6. Ensuring the profitability of the enterprise.
7. Tasks in the field of anti-crisis management.
8. Ensuring current financial stability enterprises.
Management of financial flows is carried out using different methods. The common content of all methods of financial management is the impact of financial relations on the amount of financial resources. The methods of managing the movement of financial resources and capital include:
payment systems and their forms;
lending and its forms;
· deposits and deposits (including in precious metals and abroad);
operations with currency;
insurance (including hedging);
collateral transactions;
transfer;
trust operations;
current lease;
· leasing;
13.Characteristics of the finances of the population as a link in the financial system
and the exchange of surpluses arose rarely, in small numbers and, as a rule, in the neighborhood.
As a result of commodity-money relations, the emergence, and then the increase in the market, the following occurred:
I) expansion of the material, social, cultural and other needs of the family;
2) the creation and growth of household funds;
3) the emergence of a monetary fund - the family budget, designed to provide material benefits.
The distributive function of the population's finances covers the primary distribution of the national income and the formation of the family's primary income. Household financial relations include two groups:
1 group. Relationships between this economic unit and other parts of the financial system (public finances - budgets and off-budget funds, and finances of commercial organizations and enterprises), creating primary income in the form of wages, pensions, benefits, etc .;
2 group. Relations between members of households, when funds are distributed and separated, forming separate monetary funds. Separation of funds within the household does not change the owner, excluding any equivalence. This function includes three consecutive steps: the formation, distribution and use of funds.
Both functions of public finance are interconnected and operate simultaneously, complementing each other.
14.Public finance
Public finances have a strictly designated purpose. Designed to finance government tasks. In some cases, they affect the socio-political interests of certain sections of society.
State finances manifest their essence through the control, distribution and regulatory functions performed. That is, through the distribution and redistribution of the newly created value, the State's needs are met and funding sources are formed. Public finances function on the basis of the redistribution of centralized funds. distribution function manifests itself through the diversification of GDP (between the budget, enterprises, banks, etc.)
The consequence of this function is the formation and use of centralized funds of funds.
control function allows you to monitor the real money turnover, the participants of which are the state, enterprises and the population.
State. The control function is implemented in the following areas:
1) Behind the correctness of the transfer of sr-in centralized funds. 2) for observance of volumes of monetary sr-in in coordination by social and economic requirements. 3) loans targeted and efficient use of Finn. Resources
Public finances are based on the basic principles:
Unity of legislative and executive power
Openness and transparency
Delimitation of powers
Intended use
The principle of scientific approach
Cost-effectiveness and rationality
· Manageability
The basis of the functioning of state finance is the current financial system. The centralized link of state finance is the budget system.
The budget system is a set of budgets of all levels operating on the territory of the state.
In the Russian Federation, there is a 3-tier budget system:
· Federal budget
The budget of the subjects of the federation (regional)
Municipality budgets (local)
15. classification of budget revenues
The main income in countries with developed market economies are taxes.
1. The main ones that bring the main income to the budget are enshrined in the budget code:
income tax
Customs duties
2. State budgets are also considered as a source of financing the budget deficit. Credit (credit refers to indirect income)
3. state revenues from foreign economic activity
4. state revenues from the management of state property (lease, sale, other types of alienation)
16. Types and content of public expenditure classifications
Government spending- this is the activity of the state regulated by the norms of financial law for the expenditure of various funds of funds for the real provision of funds, financial resources for the fulfillment of the tasks and functions facing the state in each given period of time.
State expenditures can be classified according to two criteria: firstly, depending on which funds of funds these expenditures are made from, and, secondly, on the territory in which these expenditures are made: federal expenditures, expenditures of subjects of the federation and municipal expenses.
Depending on which fund the expenses are made from, they are divided into types in the following way.
This is first of all budget financing, since the budget system is a state fund of funds that provides the main costs of the entire state" .
Financing at the expense of state non-budgetary funds, from where such social costs of the state as the payment of pensions, social and medical insurance are financed.
Expenses in the state are carried out at the expense of lending, when money for expenses is taken on the basis of repayment, compensation and for a certain period in the Central Bank of the Russian Federation, commercial banks and other financial institutions.
At present, there is also budget lending, when money for certain expenses is issued from the budgets for a certain period and on certain conditions: against bank guarantees, guarantees, property pledges, which ensure the return of budget loans in full and accrue interest for their use. These loans are also presented and attracted for a certain period.
Insurance payments for compulsory and commercial insurance.
Payments on public debt, both internal and external, which are also mainly made from the budget.
Point, targeted payments under certain, strictly limited by law conditions, from emission funds.
In a broad sense, public expenditures can also be considered expenditures from decentralized sources of financing, i.e. expenses covered at the expense of own funds of enterprises and institutions, all legal entities operating in market conditions.
Payments from non-budgetary funds, bank and budgetary lending, insurance expenses, state payments | debt, expenditures from decentralized sources of financing are important, but not the main expenditures of the state, since the main centralized fund of state funds is the federal budget, the entire budget system. It is she who is the basis of financial planning in the state as a whole and accumulates the largest financial resources in the state.
Thus, expenditures in the state, carried out at the expense of budget financing, are the main ones both in terms of value and volume.
17. The state budget and off-budget funds as links of the financial system of the Russian Federation.
Extrabudgetary funds- one of the methods of redistribution of national income by the authorities in favor of certain social groups of the population. The state mobilizes a part of the population's income into funds to finance its activities . Extrabudgetary funds solve two important tasks: providing additional funds in priority areas of the economy and expansion social services for the population. Extrabudgetary funds are created in two ways. One way is the allocation from the budget and financing of certain expenses that are of particular importance, the other is the formation of an off-budget fund with its own sources of income for use for certain purposes. Extrabudgetary funds are intended for targeted use. Usually, the purpose of spending the funds is indicated in the name of the fund. The material source of extrabudgetary funds is the national income. The predominant part of the funds is created in the process of redistribution of national income. The main methods of mobilizing national income in the process of its redistribution in the formation of funds are special taxes, collections, funds from the budget and loans.Social non-budgetary funds:
1. Pension Fund
2. Social Insurance Fund
The state budget is a centralized fund of monetary resources necessary to perform the functions of the state. These functions are reduced to the redistribution of funds and control over their effective use. In this sense, the functions of the budget are similar to the functions of finance, which is understandable, since the budget is only part of the whole. At the same time, in relation to the state budget, it is customary to single out the following functions related to the state structure:
(1) intervention in the economy;
(2) maintenance of the state administrative apparatus;
(3) law enforcement and judiciary;
(4) medicine, health care and education;
(5) the defense of the country.
All these functions are largely possible thanks to the financial system.
The principles of the budget system are its fundamental principles and rules: unity, completeness, reality, transparency and independence of all budgets included in the budget system.
18. Territorial finance
Territorial finance- this is a system of economic relations through which the national income is distributed and redistributed; a fund of funds used for the economic and social development of the territories. Territorial finance can also be characterized as a set of funds used for the economic and social development of territories. The main direction of the use of territorial finance is the financial support of social and partially industrial infrastructure. The main source of its financing was the funds of business entities (enterprises, organizations)
Regional budgets- the main component of territorial finance. AT modern conditions Increasingly, territorial authorities are called upon to ensure the integrated development of the regions, the proportional development of the production and non-production spheres in the territories under their jurisdiction.
Territorial finance performs a number of functions .
1. distribution function. Based on the action of this function, the cost is distributed and redistributed gross product, part of the national income and territories are provided with the financial resources necessary for their economic and social development.
2. Control function allows you to control: the emerging proportions in the distribution of funds between the central and territorial funds of financial resources; formation of territorial funds of funds; sufficiency of financial provision of the territories; efficiency in the use of funds; implementation of territorial financial policy, etc.
With the help of territorial finance, the state equalizes the levels of economic and social development of territories that, as a result of historical, geographical, military and other conditions, have lagged behind other regions of the country in their economic and social development. To overcome this backwardness, regional programs are being developed. Funds for their implementation are formed at the expense of sources of income of the budgets of the respective administrative-territorial units, as well as taxes of higher budgets. At the same time, deductions from federal taxes, as well as subventions, are allocated to the territorial budgets. financial resources provided from higher budgets for specific purposes (health development, road construction, utilities, etc.). In accordance with the distributive function of territorial finance, they are also actively used to regulate the economic development of territories, i.e. regulation of the reproductive process and activities of business entities. Territorial authorities, using finances, can regulate the economic processes taking place in the territories under their jurisdiction. They achieve this on the basis of territorial tax, budget and investment policy by providing tax incentives to business entities, tax credit, budget allocations, the introduction of financial sanctions, etc.
19. Essence and functions of the financial market
Financial market(from lat. finance- cash, income) economic theory- a system of relations that arises in the process of exchanging economic benefits using money as an intermediary asset.
In the financial market, there is a mobilization of capital, the provision of credit, the implementation of exchange monetary transactions and the placement of financial resources in production. And the combination of supply and demand for the capital of lenders and borrowers from different countries forms the world financial market.
The financial market is divided into:
· Capital market
o Equity capital market (share market)
o Debt capital market (bond and bill market)
Market of derivative instruments (derivatives)
Currency market (forex)
The financial market consists of the money market and the capital market. This is due to the different nature of the financial resources serving fixed and working capital. In the money market, funds are circulating that ensure the movement of short-term loans. In the capital market, there is a movement of long-term savings.
The stock market operates within the financial market. On it, the object of trade is securities, the value of which should be determined by the assets behind them. The securities market serves both the money market and the capital market. But securities serve only a part of the movement of financial resources (besides them, there are also intra-company and inter-company loans, direct bank loans, etc.).
Thus, the financial market consists of two parts - monetary market and capital market. The stock market included in it is a segment of both of these markets. The movement of funds in the financial market has a direction from savers to users. Through the financial market, financial resources can be transferred from one sector of the economy to another. There are 4 sectors in total: households, business firms, public sector and financial intermediaries. Most often the capital of households is formed from their own funds. It is here that the main surplus of financial resources is formed, directed to finance commercial firms, the state and placed in financial institutions (investment funds, banks, etc.). The greatest need for financial resources is experienced by the largest sector - the state. It is the largest borrower in the financial market, but also acts as the largest lender to households, businesses and financial intermediaries. There is also intra-sector movement of funds. However, these cash flows “mutually repay”, because in the end, the amount of savings (financial assets) is equal to the amount of investments (financial liabilities).
20. Types of financial markets, their purpose , classification
1. Credit market(or the loan capital market). It characterizes the market in which the object of sale and purchase are free credit resources and individual financial instruments serving them, the circulation of which is carried out on the terms of repayment and payment of interest. Transactions made in this market are divided into servicing alienable (or transferable) financial borrowings (commercial or bank bills of exchange, letters of credit, checks, etc.) and inalienable types of these borrowings (direct provision of financial loans by individual banks and other financial institutions to specific business entities and the population, a commercial loan issued by a promissory note, etc.)
2. The securities market (or the stock market). It characterizes the market in which all types of securities (stock instruments) issued by enterprises, various financial institutions and the state are the object of sale and purchase. financial resources
3. Foreign exchange market. It characterizes the market in which the objects of sale and purchase are foreign currency and financial instruments servicing transactions with it. It allows satisfying the needs of economic entities in foreign currency for carrying out foreign economic transactions, minimizing the financial risks associated with these operations, establishing the real exchange rate (the price of the monetary unit of one country, expressed in the monetary unit of another country on a certain date) for certain types of foreign currency.
. It characterizes the market in which the object of purchase and sale is insurance protection in the form of various insurance products offered. The need for the services of this market increases significantly with the development of market relations. The subjects of this market, offering insurance protection, contribute to the accumulation and effective redistribution of capital, widely using the accumulated funds in investment purposes.
5. Gold Market(and other dragons precious metals- silver, platinum). It characterizes the market in which the above types of valuable metals, primarily gold, are the objects of sale and purchase. In this market, operations are carried out to insure financial assets, ensure the reservation of these assets for the acquisition of the necessary currency in the process of international settlements, and the implementation of financial speculative transactions. The same market also satisfies the needs for industrial and household consumption of these metals, for their private hoarding.
II. According to the period of circulation of financial assets (instruments), the following types are distinguished financial markets:
1. Money market. It characterizes the market in which market financial instruments are sold and bought. Financial services all previously considered types of financial markets with a circulation period of up to one year. The functioning of this short-term sector of financial markets allows enterprises to solve the problems of both filling in the lack of monetary assets to ensure current solvency, and inefficient use of their temporarily free balance.
2. Capital market. It characterizes the market where market financial instruments and financial services with a circulation period of more than one year are sold or bought. The functioning of the capital market allows enterprises to solve problems such as the formation of investment resources for the implementation of real investment projects and effective financial investment (implementation of long-term financial investments).
There are the following types financial markets:
1. Organized (exchange) market. This market is represented by a system of stock and currency exchanges (operations with individual financial instruments - futures contracts, option contracts, etc. - are also carried out on commodity exchanges). An organized financial market ensures a high concentration of supply and demand in a single place; the most objective system of prices for individual financial instruments and services is established; checking the financial viability of issuers of the main types of securities admitted to trading; the bidding procedure is open; execution of concluded transactions is guaranteed
2. Unorganized (over-the-counter or "street") market. It is a financial market where the purchase and sale of financial instruments and services is carried out, transactions for which are not registered on the stock exchange. This market is characterized by a higher level of financial risk (since many of the financial instruments and services listed on it did not pass the verification procedure on exchanges or were rejected by them during the listing process), a lower level of legal protection for buyers, a lower level of their current awareness, etc. P
IV. On a regional basis, the following types of financial markets are distinguished:
1. Local financial market. It is represented mainly by the operations of commercial banks, insurance companies, unorganized securities traders with their counterparties - local business entities and the public.
2.
Regional financial market. It characterizes the financial market, functioning on the scale of the region (republic) and, along with local unorganized markets, includes a system of regional stock and currency exchanges.
. It includes the entire system of the country's financial markets, all their types and organizational forms.
4. World financial market. This market is an integral part of the global financial system, in which national financial markets are integrated.
countries
V. According to the urgency of the implementation of transactions concluded in the financial market, the following are distinguished types of markets:
(market "spot" or "cash"). It characterizes the market of financial instruments, where deals are made in a strictly stipulated short period of time.
period(the market of "term transactions" - futures, options, etc.). The subject of circulation in this market are, as a rule, stock, currency and commodity derivatives (derivative securities).
21. Credit market as part of the financial market
The credit market is an economic space where relations are organized due to the movement of free money between borrowers and lenders on the terms of repayment and payment. In this case, credit relations may take place between the following participants:
Central Bank and commercial banks;
Commercial banks (with each other);
Commercial banks and legal entities and individuals served by them;
Russian and foreign banks.
The Central Bank provides commercial banks with targeted centralized loans to be used as resources in issuing loans to enterprises of the agro-industrial complex, unprofitable enterprises, enterprises to ensure employment, that is, to maintain labor collectives and pay wages, to organizations in the Far North regions for seasonal food and fuel deliveries, as well as for content of objects of the social sphere.
credit operations, where legal entities or individuals act as a borrower, and a bank acts as a creditor, the essence of a bank loan is manifested. It lies in the fact that the bank accumulates temporarily free money and transfers it to those entrepreneurs who experience a temporary need for them. The form of such a transfer is a bank loan.
Loans issued by a bank, with a certain degree of conditionality, can be classified depending on a group of signs:
1. Bank refund deadlines. On this basis, it is customary to divide loans into short-term and long-term. The first includes loans issued for a period of several days to one year. The second - loans with a repayment period of more than one year.
2. Frequency of return. Loan can be made
on a one-time basis for a specified period, after which
refundable, or for use as
necessary within the period agreed with the bank
with gradual repayment due to sales proceeds
tion of products or services.
3, Procedure for payment of interest. In an agreement with a bank
may have different payment methods.
4. The nature of the return guarantee. Loans are divided into secured and unsecured. Unsecured loans include loans issued by a bank without material or other guarantees of return. They are issued to customers who have a good reputation with the bank. Secured loans are issued essentially secured by the property of the borrower or secured by various kinds of securities. In the event of a delay in repaying the loan, the bank organizes the sale of the collateral and uses the money to repay it.
22. Insurance. Insurance market and its participants
The essence of insurance is manifested in the distribution of possible damage between the participants in insurance, as well as in compensation for the damage caused.
An insurance participant is an insurer, i.e. a person who accepts insurance premiums and makes insurance payments. Policyholders are persons who pay insurance premiums and claim to receive insurance payments.
Insured persons - persons in favor of whom insurance contracts are concluded (benefit of the purchaser) are usually policyholders.
The essence of insurance is manifested in insurance protection, which is understood as a general category of relations associated with the prevention of adverse events of a random nature, overcoming negative consequences and compensating for losses.
Insurance protection today is defined as a system of measures aimed at minimizing risks and damage.
Insurance market- part of the financial market where insurance services are offered
Insurance services in this market are offered by insurance companies. One of the most important principles of the organization of the insurance market is to ensure fair competition of insurance companies. The Russian Federation has a special law "On Protection of Competition", which establishes the criteria for fair competition in the insurance services market
Important for the insurance services market is the state regulation of insurance activities, which involves mandatory licensing, control over ensuring the financial stability of insurance organizations
Participants insurance market are sellers, buyers and intermediaries, as well as their associations. The category of sellers is made up of insurance and reinsurance companies. The buyers are insurers - individuals and legal entities who decide to issue an insurance contract with a particular seller.
Intermediaries between sellers and buyers are insurance agents and insurance brokers who facilitate the conclusion of an insurance contract.
insurance agents- individuals or legal entities acting on behalf of the insurer and on his behalf in accordance with the powers granted by the insurance company. insurance agents
are representatives of insurance companies and act on the basis of their authority. In international practice, both individual legal entities or individuals, and persons employed by an insurance company (working under an employment contract) act as insurance agents. An insurance agent may represent one or more insurance companies and, under the terms of the contract with them, acts only on behalf of these companies. Moreover, the agent acts strictly within the powers granted to him by the insurance company.
insurance brokers- legal entities or individuals duly registered as entrepreneurs, carrying out insurance intermediary activities on their own behalf on the basis of instructions from the insured or insurer. An insurance broker is an independent person acting on behalf of the insured (in direct insurance) or the insurer (in reinsurance).
23. The securities market as part of the financial market
Stocks and bods market is part of the financial market. Another part of it is the market for bank loans. A commercial bank rarely gives a loan for more than a year. By issuing securities, you can get a loan for several decades (bonds) or for perpetual use (stocks). Behind the division of the financial market into two parts is the division of capital into working capital and fixed capital. The securities market complements the bank credit system and interacts with it. An important part of the securities market is the money market, which circulates short-term debt, mainly treasury bills (tickets). The money market provides a flexible supply of cash to the treasury of the state and allows corporations and individuals to receive income from their temporarily free cash.
Like any other market, RZB is made up of supply, demand and the price that balances them. Demand is created by companies and governments that lack their own revenues to finance investment. Business and governments act as net borrowers on the RZB (borrow more than lend), and the net creditor is the population whose income for various reasons exceeds the expenditure on current consumption and investment in tangible assets(for example, in real estate).
The components of the securities market are based not on this or that type of security, but on the method of trading in this market in the broad sense of the word. From these positions, the following markets are distinguished:
Primary and secondary;
Organized and unorganized;
Exchange and over-the-counter;
Traditional and computerized;
Cash and urgent.
primary market - this is the acquisition of securities by their first owners, the first stage in the process of selling a security; the first appearance of a security on the market, furnished with certain rules and requirements. Secondary market is the circulation of previously issued securities; the totality of all acts of purchase and sale or other forms of transfer of a security from one of its owners to another during the entire life of the security.
Organized Market securities is their circulation on the basis of stable rules between licensed professional intermediaries - market participants - on behalf of other market participants. Unorganized market- this is the circulation of securities without observing the rules uniform for all market participants.
stock market is the trading of securities on the stock exchanges. The over-the-counter market is the trading of securities without stock exchange. The exchange market is always an organized securities market, since trading on it is carried out strictly according to the rules of the exchange and only between exchange intermediaries, which are carefully selected among all other market participants.
Cash the securities market (“cash” market or “spot” market) is a market with immediate execution of transactions within 1-2 business days. Urgent the securities market is a market in which transactions of various types are concluded with a maturity exceeding 2 business days. Most often, the term of execution of transactions is 3 months.
24. Foreign exchange market
Currency market is a system of sustainable economic and organizational relations resulting from transactions for the sale and purchase of foreign currency and various currency values.
In the foreign exchange market, a system of relationships between various economic entities is being formed. The main subjects of the foreign exchange market are: transnational banks, commercial banks, commercial and industrial and financial companies, central banks, stock exchanges, international and regional organizations, brokerage companies, individuals, etc.
Forex markets can be classified according to the following criteria:
By type of operations. For example, there is a world market for conversion operations (it can be divided into segments of conversion operations such as euro / dollar or dollar / yen), as well as a world market for credit and deposit operations.
On a territorial basis. It is customary to single out the following major markets: European, North American, Asian. As the intersection of territorial markets and markets by types of operations. For example, it is legitimate to speak of the existence European market dollar deposits or the Asian Euro/Japanese yen conversion market.
Foreign exchange market participants
The main participants in the foreign exchange market are:
· Central banks. Their function is to manage the state's foreign exchange reserves and ensure the stability of the exchange rate. To implement these tasks, both direct foreign exchange interventions and indirect influence can be carried out - through the regulation of the level of the refinancing rate, reserve requirements, etc.
· Commercial banks. They carry out the bulk of foreign exchange transactions. Other market participants hold accounts in banks and carry out conversion and deposit-credit operations necessary for their purposes through them. Banks concentrate the total needs of the commodity and stock markets in currency exchange, as well as in attracting / placing funds.
· Firms carrying out foreign trade operations. Total applications from importers form a stable demand for foreign currency, and from exporters - its supply, including in the form of foreign currency deposits (temporarily free balances in foreign currency accounts). As a rule, firms do not have direct access to the foreign exchange market and conduct conversion and deposit operations through commercial banks.
· International investment companies , pension and hedge funds , Insurance companies. Their main task is diversified asset portfolio management, which is achieved by placing funds in securities of governments and corporations. various countries. In dealer slang, they are simply called funds. funds). To this species can also be attributed to large transnational corporations that carry out foreign production investments: the creation of branches, joint ventures etc.
· Currency exchanges. In a number of countries there are national currency exchanges, whose functions include the exchange of currencies for legal entities and the formation of a market exchange rate. The state usually actively regulates the level of the exchange rate, taking advantage of the compactness of the local exchange market.
· Currency brokers. Their function is to bring together the buyer and seller of foreign currency and to carry out a conversion or loan and deposit operation between them. For their mediation, brokerage firms charge a brokerage commission as a percentage of the transaction amount. But the amount of this commission is often less than the difference between the bank's loan interest and the bank deposit rate. Banks can also perform this function. In this case, they do not issue a loan and do not bear the corresponding risks.
· Private individuals. Citizens carry out a wide range of operations, each of which is small, but in total they can form a significant additional supply or demand: payment for foreign tourism; Money transfers salaries, pensions, fees; purchase/sale of cash currency as a store of value; speculative foreign exchange transactions.
25. Fundamentals of the use of finance in social reproduction.
The process of social reproduction is considered from the position of expanded reproduction, which is the continuous renewal and expansion of production assets, the reproduction of labor force, the growth of GDP and its main part of the national income.
The implementation of this process is possible in the presence of commodity-money, financial and credit relations. An important role in the reproduction of all parts of the GDP belongs to public and enterprise finance. The state influences through the financing of certain areas and branches of social events, tax and customs policy. With the participation of finance p / p, there is a redistribution of GDP within p / p and industries. In general, finances are an important element in the reproduction of the labor force in the cost, which, in addition to wages, includes the costs of education, health care, and social security.
26. Principles of organizing the finances of economic entities in different areas
27. Fundamentals of the functioning of the finance of commercial enterprises
Finances of commercial enterprises and organizations are financial or monetary relations that arise in the course of entrepreneurial activity in the process of forming equity capital, trust funds of funds, their distribution and use.
According to its economic content, the entire set of financial relations can be grouped into the following areas:
1) between the founders at the time of the establishment of the enterprise - associated with the formation of equity capital and in its composition of the authorized (stock, share) capital. Specific methods of formation of the authorized capital depend on the organizational and legal form of management. In turn, the authorized capital is the initial source of the formation of production assets, the acquisition of intangible assets;
2) between enterprises and organizations - associated with the production and sale of products, the emergence of newly created value. These are financial relations between the supplier and the buyer of raw materials, materials, finished products, etc., relations with construction organizations in the implementation investment activity, With transport organizations when transporting goods, with communication enterprises, customs, foreign companies, etc. These relationships are fundamental because they effective organization the final financial result of commercial activity largely depends;
3) between enterprises and its subdivisions (branches, workshops, departments, teams) - regarding the financing of expenses, distribution and use of profits, working capital. This group of relations influences the organization and rhythm of production;
4) between the enterprise and its employees - in the distribution and use of income, the issuance and placement of shares and bonds of the enterprise, the payment of interest on bonds and dividends on shares, the recovery of fines and compensation for material damage caused, the withholding of taxes from individuals. The efficiency of the use of labor resources depends on the organization of this group of relations;
5) between the enterprise and the parent organization, within financial and industrial groups, within the holding, with unions and associations, of which the enterprise is a member. Financial relations arise during the formation, distribution and use of centralized target funds and reserves, financing of target industry programs. This group of relations is associated, as a rule, with the intra-industry redistribution of funds and is aimed at supporting and developing enterprises;
6) between commercial organizations and enterprises - associated with the issue and placement of securities, mutual lending, equity participation in the creation of joint ventures. The possibility of attracting depends on the organization of these relations. additional sources business financing;
7) between enterprises and the financial system of the state - when paying taxes and making other payments to the budget, forming off-budget funds, providing tax benefits, applying penalties, financing from the budget;
8) between enterprises and the banking system - in the process of keeping money in commercial banks, obtaining and repaying loans, paying interest on a bank loan, buying and selling foreign currency, providing other banking services;
9) between enterprises and insurance companies and organizations - when insuring property, certain categories employees, commercial and entrepreneurial risks;
10) between enterprises and investment institutions - during the placement of investments, privatization, etc.
The functions of finance for commercial enterprises and organizations are the same as for national finance - distribution and control. Both functions are closely related.
1. Through the distribution function there is the formation of initial capital, formed at the expense of the founders' contributions, its advance in production, the reproduction of capital, the creation of basic proportions in the distribution of income and financial resources, ensuring the optimal combination of interests of individual producers, business entities and the state as a whole. The distribution function of finance is associated with the formation of monetary funds of commercial enterprises and organizations through the distribution and redistribution of incoming income. These include: authorized capital or authorized fund, reserve fund, additional capital, accumulation fund, consumption fund, currency fund, etc.
2. Objective basis of the control function- cost accounting of costs for the production and sale of products, performance of work and provision of services, the process of generating income and funds. Finance as a distribution relationship provides sources of funding for the reproduction process (distribution function) and thus links together all phases of the reproduction process: production, exchange, consumption
Financial control over the activities of an economic entity is carried out by:
directly an economic entity through a comprehensive analysis of financial indicators, operational control over the implementation of financial plans, timely receipt of proceeds from the sale of products (works, services), obligations to suppliers of inventory items, customers and consumers of products, the state, banks and other counterparties;
shareholders and owners of a controlling stake by controlling the effective investment of funds, making profits and paying dividends;
tax authorities that monitor the timeliness and completeness of the payment of taxes and other obligatory payments to the budget;
the control and revision service of the Ministry of Finance of the Russian Federation, which controls the financial and economic activities of enterprises and organizations using budgetary funds;
commercial banks when issuing and repaying loans, providing other banking services;
independent audit firms when conducting audits.
28.Finance of organizations engaged in non-commercial activities
The non-profit sector, designed to implement social, cultural, charitable goals, plays an extremely important role in a market economy.). The non-profit sphere, on the contrary, unites organizations that do not consider profit making as the main goal of their activities and do not distribute the profits among the participants. Their work is aimed at achieving cultural, educational, scientific, charitable and other socially useful goals.
So, the mission of non-profit organizations reflects the most important social tasks of a particular region. Their regulation is carried out on the basis of two laws of the Russian Federation - the Law of the Russian Federation "On non-profit organizations" (1996) and the Law of the Russian Federation "On public associations" (1995). Non-profit organizations in Russia may exist in the organizational and legal form of an institution, foundation, autonomous non-profit organization, non-profit partnership, association (union), state corporation, public organization, social movement, etc. institution. The peculiarity of the institution is that it is not the owner of its property and owns it on the basis of the right of operational management. The owner of the property is the founder (state, trade unions, etc.), who controls the safety of the property transferred to the institution. The institution does not have the right to perform any operations with this property without the consent of the owner. The founder, in turn, is obliged to finance the activities of the institution in full or in part ( state institutions financed from the respective budgets). Fund. The Fund may be established by individuals and legal entities on the basis of voluntary property contributions for non-commercial purposes. Unlike an institution that owns property on the basis of operational management rights and is not fully responsible for its debts, a fund is the owner of its property and is fully responsible for its obligations. The Fund has the right to actively engage in entrepreneurial activities and in most cases acts as a financial institution (places funds on the accounts of banks, insurance companies, in securities). The obligatory governing body of the fund is the Board of Trustees, which oversees the activities of the fund, spending financial resources. The Foundation is a very common and diverse form of non-profit organizations. Of the variety of funds, four main types of funds can be distinguished.
1) Private foundations - foundations established at the expense of one or more individuals (Soros Foundation, MacArthur Foundation, Rockefeller Foundation, G. Vishnevskaya Foundation, etc.).
2) Corporate funds - funds established by one or more companies for non-commercial purposes (charitable, cultural, educational). Corporate funds can be established both commercially and non-profit organizations.
3) Public foundations (local community foundations) are foundations formed at the expense of local communities (city, region) to support charitable, social activities in their territory through the issuance of grants, as well as through consulting and other assistance. Today there are fifteen public foundations in Russia.
4) State funds are funds established by state authorities to solve social problems and tasks. State funds include budgetary and non-budgetary funds, such as the Compulsory Medical Insurance Fund, the Pension Fund, the Employment Fund, road funds, etc.
Insurance- this is a set of special closed redistributive relations between its participants regarding the formation of a target insurance fund at the expense of monetary contributions, intended to compensate for possible damage caused by business entities, or to equalize losses in family income due to the consequences of insured events.
The financial category of insurance expresses its essence primarily through the insurance of financial risks: business, commercial, exchange, currency, banking and credit. It is characterized by the distribution of damage (loss) between policyholders in cash and covers financial transactions in banking, investment, commercial, entrepreneurial and other areas of financial activity. The main features of the financial category of insurance are:
1. risky nature, since the insurance risk (as the probability of damage) is directly related to the main purpose of insurance to provide financial assistance to victims;
2. monetary redistributive relations between insurance participants in connection with the consequences of insured events;
3. refundability of insurance premiums to policyholders, insured or<третьим>persons in the form of insurance payments (insurance coverage for personal insurance and insurance compensation for property insurance and liability insurance) or in case of early termination of the insurance contract. The sign of repayment of funds brings the financial category of insurance closer to the credit one.
The essence of insurance is manifested in its functions: risky, preventive, savings, savings, control, and investment.
risk function consists in providing insurance protection against various kinds of risks - random events leading to losses. The content of the risk function is expressed in compensation for the risk. Within the framework of this function, the monetary form of value is redistributed between insurance participants in connection with the consequences of random insured events.
The risk function of insurance is the main one, because insurance risk is directly related to the main purpose of insurance to compensate for material damage to victims.
This function reflects the main purpose of insurance - protection against risks.
Appointment warning function insurance is financing at the expense of the insurance fund of measures to reduce insurance risk, i.e. carrying out preventive measures in relation to the insured objects.
The preventive function of insurance is that at the expense of a part of the insurance fund, measures are financed to reduce the insurance risk.
For example, part of the funds collected from fire insurance finances fire prevention measures, as well as measures aimed at reducing the possible damage from a fire.
savings function more pronounced in long-term types insurance (life, pension insurance). The content of the savings function is that with the help of insurance funds are saved for survival. This saving is caused by the need for insurance coverage of the achieved family wealth.
Essence control function expressed in control over the strictly targeted formation and use of the insurance fund. This function follows from the above and manifests itself simultaneously with them in specific insurance relations, in insurance conditions.
In accordance with the requirement of this function, financial control is exercised over the conduct of insurance operations, the validity of insurance tariffs, the formation and placement of insurance reserves.
In connection with the participation of funds of insurance organizations in investment processes, one more insurance function is singled out today - investment.
The investment function consists in the fact that, at the expense of temporarily free funds insurance funds (insurance reserves) is the financing of the economy.
30. Spheres, branches (pension, medical, etc.) and forms of insurance, their features
Insurance can be carried out in two forms: voluntary; mandatory. Voluntary insurance is carried out on the basis of an agreement concluded between the insurer and the insured.
Compulsory insurance is carried out by virtue of law, on the basis of an agreement concluded between the insurer and the insured.
Due to differences in the objects of insurance, the totality of insurance relations can be divided into five sectors:
1 property;
2 social;
3 personal;
4 liability insurance;
5 business risk insurance.
Social insurance- this is a system of relations with the help of which funds are formed and spent for the material support of persons who do not have physical ability to work or who have it, but who are not able to realize it for various reasons.
The most important functions of social insurance include:
1) protective;
2) compensatory;
3) reproductive;
4) redistributive;
5) stabilizing.
The main types of social insurance include:
1) sickness insurance;
2) pension insurance;
3) insurance against industrial accidents;
4) unemployment insurance.
property insurance- This is the insurance industry, where the objects of insurance legal relations are property in various forms. Economic content property insurance consists in the organization of a special insurance fund intended to compensate for damage to its participants, which arose as a result of causing harm.
Property insurance provides compensation primarily for direct actual damage, restoration of lost objects, however, under certain conditions, indirect damage may also be included in liability.
Personal insurance is a form of protection against risks that threaten a person's life, his ability to work and health. In personal insurance, the sums insured are determined in accordance with the wishes of the insured, based on his financial capabilities.
Liability insurance is an independent area of insurance activity. The object of insurance here is the liability of the insured under the law or by virtue of a contractual obligation to third parties for causing harm to them. Compensation for property damage caused to third parties.
It is customary to distinguish between civil and professional liability insurance.
The liability insurance block includes the following types of insurance:
1) civil liability vehicle owners;
2) civil liability of the carrier;
3) civil liability of enterprises - sources of increased danger;
4) professional responsibility;
5) liability for failure to fulfill obligations;
6) other types of liability.
Business risk insurance- since the main incentive for entrepreneurial activity is the desire to obtain profit (income), the risk of the possibility of not receiving profit or income, reducing the level of profitability or generating losses is the object of this insurance.
31. State and municipal finance
State and municipal finance is a set of economic relations that arise in real money circulation regarding the formation, distribution and use of centralized funds of financial resources.
The material basis of finance is cash flow. Real money turnover - it is an economic process that causes the movement of value and is accompanied by a flow of cash payments and settlements. The object of real money turnover is financial resources, being sources of financing for expanded reproduction.
State and municipal finances express economic relations associated with the provision of centralized sources of financing for state and municipal sectors economy, the most significant programs for the development of production and the public sector, organizations and institutions public sector etc. Their functioning is aimed at achieving the common goals of developing a socially oriented economy.
State and municipal finances function within the framework of the financial system of the state and are its central link An important methodological factor is the definition principles of organization and functioning of state and municipal finance, which makes it possible to identify the directions of the impact of finance on the development of the state and municipal sectors of the economy, to develop criteria for their functioning.
State and municipal finances are based on information flows. The adoption of state decisions is based on the totality of information. The analysis of incoming information is important both at the time of making a decision and in the process of monitoring the progress of its implementation. This information is contained in operational and statistical reporting, contracts and agreements, settlement documents, etc.
State and municipal finances have a clear target orientation. They affect certain socio-political interests of individual strata of society. However, in all their aspects they are focused on solving state and municipal problems.
The state of state and municipal finances is one of the main indicators of economic sustainability and excellence social system. The budget provides funding for the most important investment programs, ecology, defense, etc.
State and municipal finances are focused on the following basic principles:
unity of the legislative and regulatory framework;
openness and transparency;
delimitation of powers and subjects of jurisdiction;
target orientation;
scientific approach to the implementation of the intended goals;
economy and rationality;
manageability of financial flows on a centralized basis.
32. Influence on state and municipal finances on the organization of functional features and levels of management
The essence of state and municipal finance lies in the fact that they cover that part of monetary relations regarding the distribution and redistribution of the value of the total product created in society, which is accumulated in the prescribed amount in the hands of state authorities and local self-government to cover the costs necessary for the implementation of the state and local authorities of their functions.
The organization of public finance is closely connected with the organization of public administration, and above all, with the levels of government.
In the Federal States, this is a three-tier system. It includes the central (federal) government, the regional level (governments of regions, territories, republics, etc.) and the local (municipal) level.
In unitary (unified) states, there are two levels of government - central (state) and local.
The existence of functional public expenditures presupposes the existence of sources of their financing.
The scale of powers of each level of management and the functions they perform predetermine the size of their income, the procedure for their formation and use:
1) federal level:
1. ensuring the activities of the President and his staff, the federal judicial system;
2. solving the problems of the national economy;
3. national defense and security;
4. nuclear energy, space, government investment programs, etc.
2) the level of the subject of the federation - the solution of problems at the regional level in accordance with the delimitation of spending powers between the Russian Federation and the subjects of the Russian Federation.
3) municipal level - solving issues of local importance:
1. social policy;
2. education;
4. health care and sports, etc.
Depending on the legislation, the main decisions on revenue generation and distribution of funds can be taken at the level of central authorities or at the level of regions.
In the Russian Federation, based on the federal structure, public finances include 2 levels: finances of federal authorities and finances of bodies of subjects of the Russian Federation. municipal finance are a grassroots link and are allocated to an independent structural level.
public finance is a tool for mobilizing funds from all sectors of the economy for the implementation of state domestic and foreign policy. This is a single complex of financial operations of government bodies, with the help of which they accumulate monetary resources and carry out monetary expenditures.
The composition of public finances includes the federal budget, extra-budgetary funds of the state, state credit, finances of state and state unitary enterprises, as well as the budgets of the constituent entities of the Russian Federation, off-budget funds of the constituent entities of the Russian Federation, credit of the constituent entities of the Russian Federation and finances of state unitary enterprises of the constituent entity of the Russian Federation.
Municipal (or local) finance- this is a set of socio-economic relations that arise regarding the formation, distribution and use of financial resources to solve problems of local importance.
Municipal finances are a system of economic relations regulated by state legislation related to the accumulation of a certain part of the value of national income through its redistribution and the appropriate use of these financial resources, taking into account the functions and powers delegated by the higher level of the budget system, assigned to municipal self-government bodies.
Local finances include municipal budgets, off-budget funds of local authorities, municipal credit and finances of municipal unitary enterprises.
All three levels of state and municipal finance are closely related and form single system
33. Budgetary system of the country, models of its construction in federal and unitary states
The state budget- these are economic relations between the state and subjects of all forms of ownership and individual citizens regarding the formation of a centralized fund of funds directed to the implementation of national tasks and functions.
About 70% of the country's national income is distributed through the state budget and local budgets. Over 80% of state budget revenues are mandatory payments and taxes from enterprises state form property.
The essence of the state budget of any country is determined by its socio-economic system, nature, tasks and functions of the state.
General principles for building budget systems foreign countries
The budgetary systems of foreign countries are built on common basic principles. These include:
Investment of the budget in the form of an act adopted by a representative body of power;
completeness of the budget;
Unity of the budget;
Prioritization of public spending;
Reliability and visibility of the budget;
Annual budget approval;
budget balance.
The principle of mandatory investment of the budget in the form of an act adopted by a representative body of power , means the requirement of legislative formulation of the budget. In most countries, the budget is adopted in the form of a law, in a number of countries (USA, Norway, Finland) the approval of the budget is formalized by a special parliamentary resolution. Budget acts, as a rule, consist of three main parts: explanatory note, the text of the budget act and annexes.
The principle of completeness of the budget means that all income and expenses must be presented in the budget in full. The government should not have any income and expenses other than those provided for in the budget. The concept of the gross budget is associated with the principle of completeness of the budget, which reflects all financial operations of the state, both in terms of income and expenditure. The net budget contains only balance results for budget items: revenues from individual budget revenue items minus the costs of obtaining these revenues. Sometimes there are so-called mixed budgets that combine the features of the gross budget and the net budget.
The principle of budget unity finds its expression in the unity of the budget system, the use of one classification of income and expenditure, and the uniformity of budget documentation. In practice, when developing and approving the budget, there is often a desire to create privileged budget items, which violates the principle of budget unity.
The principle of prioritization of public spending. Its application is possible only under the conditions of the principles of completeness and unity of the budget. This principle is based on the fact that the implementation of state functions is not directly dependent on the amount of income received. Determining the amount of public expenditures as a matter of priority, the government calculates, in accordance with the results obtained, the volumes of required public revenues. The solution of the question of how necessary certain public expenditures is based on the use of methods of political analysis and the application of criteria of public utility. Ensuring free competition for the financial resources at the disposal of the authorities serves as a guarantee of choosing the right priorities and optimal distribution of budgetary resources.
The principle of reliability and visibility of the budget. It is enshrined among the basic principles of building budget systems in order to most effectively discuss budget projects and ensure transparency of budget policy.
Principle of annual budget approval is an important characteristic of the functioning of the budget system. General rule is the establishment of the state budget for one financial year. However, in different countries fiscal year dates differently: in Belgium, the Netherlands, Switzerland, Finland, France, it coincides with the calendar. In the UK, Canada, Japan, it starts on April 1st. In Italy, Norway, Sweden - July 1. In the United States, the fiscal year begins on October 1st. In some countries, the possibility of adopting multi-year budgets is constitutionally fixed (for example, the Greek Constitution allows for the possibility of establishing a two-year budget).
The principle of budgetary equilibrium means the need to balance the revenue and expenditure parts of the budget. The volume of envisaged expenditures must correspond to the total volume of budget revenues and receipts from sources of financing its deficit.
Russian Federation
The RF BC gives the following definition budget system: "based on economic relations and the state structure of the Russian Federation, regulated by the rule of law, the totality of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and budgets of state off-budget funds." The budget system of Russia, as a federal state, consists of budgets of three levels:
The principle of unity of the budget system means unity legal framework, the monetary system, forms of budget documentation, the unity of the principles of the budget process, sanctions for violations of budget legislation, as well as a unified procedure for financing budget expenditures, a unified procedure for financing expenditures of budgets of all levels of the budget system, accounting for federal budget funds, budgets of constituent entities of the Russian Federation, local budgets .
34. Budget device and budget process
BUDGET DEVICE- organization of the budget system and the relationship between its individual links. The budget device includes: the structure of the budget system; principles of operation; budget classification. The budget structure is based on legal norms that determine the competence of central and local authorities to draw up, consider, approve and execute state and local budgets, and in federal states, the budgets of members of the federation; distribution of revenues and expenditures between certain types of budgets, as well as payments to the budget system and spending funds from it. The budget structure is directly dependent on the state structure (federal or unitary state), on the socio-economic structure of society. The basis of the budget structure of the Russian Federation is budgetary federalism, implemented through a unified fiscal policy of the state.
The budget process is the main forms budget planning, representing the activities of state bodies regulated by law. authority to 1) draw up 2) review 3) approve 4) execute 5) draw up a report on the use of the budget
The budget process is determined by the state budget and the budget structure with the budgetary rights of state bodies. Authorities and legal Persons
Duration of the budget process: preparation, consideration, approval of the budget for more than a year.
Preparation of a report on the implementation of the budget 6 months. To complete the use of the budget, a grace period can be provided (no more than a month during which operations within the framework of budget execution are completed) The budget year, together with the grace period, is called the counting period, his tasks:
maximum identification of all material and financial reserves
1) determination of budget income from various sources, as well as total income in accordance with forecasts and targeted social programs. Economy development
2) Establishment of budget expenditures for their intended purpose, as well as the total volume, based on the needs of the state
3) Coordination of the budget with the general social program. Economy Development
4) Budget deficit management
5) Implementation of budgetary regulation in order to balance the budgets of different levels, through redistribution
6) Increasing the efficiency. Budget planning to balance major national programs
7) Budget control
Automation of the budget process
Principles of the budget process:
1) Unity - i.e. unified information and legal support, budget planning, unity monetary systems
2) Independence - is ensured by the presence of their own. Sources of income and the right to a certain direction of their use
3) Using the balance method - the ratio between expenses and incomes of all levels, as well as between natural. And finance. indicators
35. State and municipal credit
Must be divided into actually - public credit and public debt.
State credit acts in the form of state credit institutions, which lend to various sectors of the economy.
Public debt is the case when the state borrows money from others from credit institutions in the capital market to finance the budget deficit and the state debt.
State credit is a set of economic relations between the state represented by its authorities and management on the one hand and physical. And yur. Faces on the other.
In this case, the state acts as a borrower, lender and guarantor.
Guarantor - if the state assumes responsibility for repaying loans or fulfilling other obligations assumed by individuals. And yur. Faces. If the state acts as a borrower, then it acts and affects the amount of monetary funds. State credit is characterized by urgency, repayment, payment, repayment
State and municipal credit also performs a regulatory function. In conditions of limited budgetary resources, their allocation on a gratuitous basis is not always justified. In addition, the effectiveness of the use of allocated funds on a returnable and paid basis is higher than on a non-refundable and free basis. At the same time, lending creates a multiplier effect. The state has an additional opportunity to stimulate the development of individual industries and enterprises by allocating targeted budget loans to them.
The regulatory function is also manifested when Russia receives external loans from the IMF to finance the budget deficit, carry out structural reforms and restructure the economy, support privatization, the stock market, etc.
With the help of the regulatory function, the state influences borrowers who are obliged to ensure the effective use of budget loans.
3. One of the functions of the state and municipal credit is accounting and control over the target and rational use loan provided by the state. This function is carried out by relevant institutions at the federal, regional and municipal levels. The need for control stems both from the very nature of credit and from the functions of the state.
36. Off-budget funds
Extra-budgetary funds in the financial system of Russia are created on the basis of the Law of the RSFSR "On the Fundamentals of the Budget Structure and Budget Process in the Russian Federation" dated October 17, 1991, the Budget Code of the Russian Federation, as well as other regulatory legal acts, including laws on the budget of the Russian Federation for the current year. At the same time, although off-budget funds are owned by the state, they are autonomous from the federal and local budgets.
As we have already noted, off-budget funds are formed outside the federal budget and the budgets of the constituent entities of the Russian Federation and are intended to implement the constitutional rights of citizens to pensions, social insurance, social security in case of unemployment, health care and medical care. Expenses and incomes of the state off-budget fund are formed in the manner established by the Budget Code of Russia, as well as other legislative acts, including laws on the budget of the Russian Federation for the corresponding year. Depending on the sources of formation, purpose and scale of use, extra-budgetary funds are divided into funds for economic and social purposes.
Socio-economic importance of extra-budgetary funds
Extra-budgetary funds of the state are a set of financial resources at the disposal of central or local authorities and have a designated purpose. They are an important link in the financial system. The order of their formation and use is regulated by financial law.
With the transition of Russia to a market economy, there was a need to create off-budget funds. The main reasons for the formation of these funds is the need to:
Social protection of the population in the face of a decline in production, rising unemployment, inflation, budget deficit, growth of internal and external public debt;
Target use of these funds;
Prompt resolution of social problems, which extra-budgetary funds at the disposal of the executive authorities can do;
New methods of redistribution of funds in the transition to a market economy;
Financing of territorial needs.
On the basis of the Law of the RSFSR "On the Fundamentals of the Budget Structure and Budget Planning in the RSFSR" dated October 10, 1991, the authorities, within the framework of the legislation of the RSFSR, can form targeted extra-budgetary funds that have the right of an independent legal entity and are independent from the budgets of the relevant authorities.
State non-budgetary funds are created on the basis of relevant acts of the highest authorities, which regulate the principles of functioning. In modern conditions, the importance of extrabudgetary funds is increasing. The increase in the number and volume of these funds is due to a number of reasons. First, state authorities have additional funds to intervene in economic life and financial support for entrepreneurship, especially in an unstable economy. Secondly, these funds, being autonomous from the budget, were intended to solve new important tasks that require special attention from the state. Thirdly, off-budget funds can, under certain conditions, be used to cover the budget deficit through the credit mechanism.
The following state non-budgetary funds operate in Russia:
Pension Fund of the Russian Federation;
Social Insurance Fund of the Russian Federation;
federal fund compulsory health insurance
Employment Fund
Dr. off-budget funds, this moment their number reached 40
Income from off-budget funds includes:
Special targeted taxes and fees established for the respective fund;
Deductions from the profits of enterprises, institutions, organizations;
Budget funds;
Profits from commercial activities carried out by the fund, as legal entity;
Loans received by the fund from the Central Bank of the Russian Federation or commercial banks.
Other income provided for by the relevant legislative acts.
In addition, the material source of off-budget funds, as well as other parts of the financial system, is the national income. The predominant part of the funds is created in the process of redistribution of national income.
The main methods of mobilizing national income in the process of redistribution in the formation of funds are special taxes and fees, funds from the budget and loans. The main method is special taxes and fees established by the legislature.
A significant number of funds are formed at the expense of the central and local budgets.
Budget funds come in the form of gratuitous subsidies or certain deductions from tax revenue. Income of extrabudgetary funds can be borrowed funds.
In cases where extra-budgetary funds have a positive balance, it can be used to purchase securities and receive profit in the form of dividends or interest.
According to the Decree of the President of the Russian Federation of December 22, 1993, all off-budget funds (with a few exceptions), whose income was formed at the expense of mandatory payments from enterprises, institutions, organizations, are combined with republican budget RF. However, the target orientation of the consolidated funds remains.
Features of off-budget funds:
Extra-budgetary funds are planned by authorities and administrations and have a strict target orientation;
Cash from extrabudgetary funds is used to finance government spending not included in the budget;
Formed mainly at the expense of mandatory deductions of legal entities and individuals;
Insurance contributions to off-budget funds and the relationships arising from their payment are of a tax nature, the contribution rates are established by the state and are mandatory;
Most of the norms and provisions of the Law of the Russian Federation “On the Fundamentals of the Tax System of the Russian Federation” apply to relations related to the calculation, payment and collection of contributions to extra-budgetary funds;
The financial resources of the fund are in state ownership, they are not included in the budgets, as well as other funds and are not subject to withdrawal for any purpose, not directly statutory;
Spending of funds from the funds is carried out by order of the Government of the Russian Federation or a specially authorized body (the fund board).
37. The impact of finance on the economy and social sphere
In accordance with the state structure of the Russian Federation, three links are distinguished in the financial mechanism: the financial mechanism of the Russian Federation, the financial mechanism of the constituent entities of the Russian Federation and the financial mechanism of local governments. This division is due to the competence of public authorities and local governments in the field of financial relations regulation, regulated by the Constitution of the Russian Federation, the Budget Code of the Russian Federation (BC RF) and the Tax Code of the Russian Federation (TC RF).
According to the impact on social production, the following functional links are distinguished as part of the financial mechanism: a mechanism for mobilizing and using financial resources, a mechanism for financial regulation of social production, and a mechanism for financial incentives for social production.
As part of each of the listed mechanisms, various sources of formation and methods of mobilizing financial resources, their composition, methods of distribution, forms of spending financial resources, principles of organizing financial and economic activities and building financial relations are used. Given these features, it is possible to regulate the impact of individual elements of the financial mechanism on social production and its specific areas, to initiate the acceleration of the development of the relevant sectors of the economy, activities, ultimately achieving the goals and objectives of financial policy.
Changing the relevant elements of the financial mechanism, depending on the conditions of the economic and social development of society, predetermines the possibility of its quantitative and qualitative impact on the economy and the social sphere.
The quantitative impact of the financial mechanism is expressed through the volume and proportions of the mobilization of financial resources by business entities and authorities and their distribution between the spheres and links of the state's financial system. Depending on changes in the ratio of the volume of financial resources at the centralized and decentralized levels, the amount of tax revenues to the budget of the corresponding level, the amount of government purchases, the amount of financing of organizations and sectors of the economy, the development of the economy and the activities of its subjects are regulated, social production, socio-cultural development is influenced society, its scientific and technical potential.
The qualitative impact of the financial mechanism is associated with the use of such methods of formation and directions for the use of financial resources, forms of organization of financial relations, which allow them to be considered as incentives for the development of both a separate business entity and the economy as a whole. Such elements of the financial mechanism include the reduction tax rates, conditions for granting tax benefits, establishing size limit budget deficit, the maximum amount of public debt of the Russian Federation, constituent entities of the Russian Federation and municipal debt, the conditions for granting budget loans to organizations of various organizational and legal forms, the procedure for applying various financial sanctions and other forms and methods of organizing financial relations of a stimulating nature.
The effectiveness of the financial mechanism used is determined by the interconnected, coordinated, integrated functioning of all its elements. The main conditions for the effectiveness of the functioning of the financial mechanism are:
* objective validity of the financial mechanism, which should be formed taking into account the objective patterns of development of the state economy. Only under this condition, the use of elements of the financial mechanism can ensure economic stability, balance of budgets at all levels, effective conduct of financial and economic activities by business entities, social protection and welfare of the population;
* compliance with the conditions of economic development and management methods. In the conditions of a centrally planned economy, only a directive financial mechanism was used to ensure the organization of financial relations, the distribution and use of financial resources in the interests of the state. At present, with the transition to a market basis for the functioning of the economy, a different mechanism for organizing financial relations is used, which involves the widespread use of various instruments of financial regulation and stimulation of economic development: the tax mechanism is built taking into account not only its fiscal function, but also contributes to the regulation and stimulation of certain types of activities and branches of the economy; the mechanism of social insurance helps to mitigate the negative impact of the elements of a market economy by providing financial support for the implementation of state social guarantees for the disabled and the poor; the budgetary mechanism is characterized by the use of fundamentally new methods of mobilization and forms of use budget funds, principles of budget planning and financing, methods of financial control;
* the connection of the financial mechanism with the factors of production and the economic interests of the subjects of financial relations: the use of elements of the financial mechanism should help meet the needs of all participants in social reproduction in financial resources, achieve their sustainable development and the real economic effect of ongoing financial transactions;
* the relationship of the constituent elements of the financial mechanism, their mutual regulation, which ultimately determines the sequence of financial transactions, the composition of the subjects of financial relations, the order of their organization in practice.
It can be concluded that finance is an integral part of both the economy and the social sphere and affects them both qualitatively and quantitatively. The quantitative impact of the financial mechanism is expressed through the volume and proportions of the mobilization of financial resources by business entities and authorities and their distribution between the spheres and links of the state's financial system. The qualitative impact of the financial mechanism is associated with the use of such methods of formation and directions for the use of financial resources, forms of organization of financial relations, which allow them to be considered as incentives for the development of both a separate business entity and the economy as a whole.
38. Financial mechanism
A financial mechanism is used to implement the financial policy and its successful implementation. It is a set of ways to organize financial relations used by society in order to provide favorable conditions for economic and social development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.
The structure of the financial mechanism includes five interrelated elements: financial methods, financial leverage, legal, regulatory and information support.
The financial method can be defined as a way of influencing financial relations on the economic process. Financial methods operate in two directions: in the line of managing the movement of financial resources and in the line of market commercial relations associated with the comparison of costs and results, with material incentives and responsibility for the efficient use of funds. Market content is not invested in financial methods by chance. This is due to the fact that the functions of finance in the sphere of production and circulation are closely related to commercial calculation.
Commercial calculation is a method of managing the economy by comparing the costs and results of economic activity in monetary (value) form. The purpose of applying commercial calculation is to obtain maximum income or profit at the minimum cost of capital in a competitive environment. The implementation of this goal requires a comparison of the size of the capital invested (advanced) in production and trade activities with the financial results of this activity. At the same time, it is necessary to calculate and compare various options for investing capital according to a predetermined selection criterion (maximum income or maximum profit per ruble of capital, minimum cash costs and financial losses, etc.). In foreign economic practice, the requirement to measure the amount of capital invested in production with the results of economic activity is denoted by the term "input-output" (input-output).
The action of financial methods is manifested in the formation and use of monetary funds. Financial leverage is a reception of the financial method.
Financial leverage includes profit, income, depreciation, special-purpose economic funds, financial sanctions, rent, interest rates on loans, deposits, bonds.
For example, lending is a financial method. It affects results. economic process through such methods as types and forms of credit, interest rates, financial sanctions, etc.
Legal support for the functioning of the financial mechanism includes legislative acts, resolutions, orders, circular letters and others legal documents governing bodies.
The normative support for the functioning of the financial mechanism is formed by instructions, standards, norms, tariff rates, guidelines and explanations, etc.
Information support for the functioning of the financial mechanism consists of various kinds and types of economic, commercial, financial and other information. Financial information includes:
awareness of the financial stability and solvency of their partners and competitors;
· information about prices, rates, dividends, interest on the commodity, stock and currency markets, etc.;
· a report on the state of affairs on the exchange, over-the-counter markets, on the financial and commercial activities of any business entities worthy of attention;
various other information.
39. The role of finance in the development of international cooperation 1. Customs policy of the state.
According to the current legislation in Russia, the following types of duties are applied:
Ad valorem - in % of the customs value of the goods,
Specific - in absolute sizes per unit of goods,
Combined - combine 1 and 2.
Seasonal (introduced for up to 6 months),
Special (when damage is done to domestic producers and as a response to discrimination against other states),
Anti-dumping (when the price of imported goods is below the cost),
Compensatory (it was found that state subsidies were used in the production or export of goods).
Customs privileges and tariff preferences are widely used. Goods for representative offices of foreign states, currency, securities, goods purchased for state needs (in the ownership of the state), humanitarian aid goods, transit goods, products of the fishing fleet, goods transported by individuals not intended for industrial and commercial purposes are completely exempt from customs duties. goals. Until recently, Russia had duties on both exported and imported goods.
Russia was almost the only one where export duties were applied. Export duties worsen the conjuncture of their goods on the international market. They existed for fiscal purposes. In 1996, the bulk of export duties were abolished, which was offset by an increase in excises.
History: Britain abandoned protectionism. The average customs tariff should be 32%. After the war decided to collectively abandon customs duties and expand trade, the GAAT was established. Its functions:
Creation of the most favored nation treatment of countries (cancellation of customs unions, etc.)
National conditions for all countries
Reducing customs duties, abandon non-customs methods (quotas, etc.)
Anti-dumping measures and the provision of benefits to developing countries. The WTO has now been established on the basis of the GATT. The average customs tariff is 7% of the cost of goods, which ensures the implementation of competition in the domestic market.
In Africa, there is a 33% customs barrier, a very high barrier in India, which does not contribute to the development of the country's economy and harms national consumers (there are no conditions for improving product quality).
Russia has a customs tariff of 15% for imported goods. Lately, we have been leaning more and more towards protectionism.
The barrier to imported goods is the exchange rate, which remains overvalued compared to the ruble. A high exchange rate leads to an additional rise in the cost of imported goods.
2. Financial regulation of import and export.
The export of capital is several times higher than the import of capital, and there is a large-scale capital flight. In 1995, the export of capital amounted to $60 billion, now it is $30 billion, incl. $20 billion, incl. $20 billion illegally.
The main forms of illegal flight:
Shortfall in export earnings of $4.5 billion,
Unreturned prepayment of imports - $6-8 billion,
Smuggling - $2 billion.
Export credits enterprises - $ 30 billion - the legal export of capital.
Measures to combat illegal export:
Introduction of currency control. In 1995, currency control was introduced over the export of products. The customs service fixes the volume of exports of goods, then the bank serving the exporter informs the customs service about the proceeds received (up to 180 days). If not received by this time. This establishes the fact of capital flight with the application of sanctions against the exporter. When prepaid, the goods must cross the border within 180 days after prepayment. Smuggling is difficult to fight because of the transparency of the borders.
Import of private capital.
The countries of Southeast Asia, thanks to the import of private capital, made a breakthrough in the economy. $100 billion has been attracted to China, to Laos - several times more than to Russia. About $1.5-2 billion is imported into Russia. We need $200 billion. We apply national treatment, i.e. conditions are almost the same as for domestic enterprises.
a) duty-free importation of equipment and materials for the creation of a management company and own production is allowed,
b) import duties were reduced by 2 times for 5 years for the company's own products, which invested $ 10 million or more in the joint venture, while the cost of the funded project should be at least $ 100 million,
c) it is allowed to transport profits abroad.
We have 3 SEZs: Kaliningrad, Primorsky Krai and Ingushetia.
3. Financial and credit relations of Russia with the CIS and far abroad
Financial relations are built mainly through the issuance of loans to the CIS countries. The bulk of loans - technical to replenish the ruble mass in 92-93. All this mass has been re-registered as public debt, which is now estimated at $5.6 billion. By country, it is distributed as follows:
Ukraine - 2.7 Kazakhstan - 1.3 Uzbekistan and Belarus - 0.5 billion each
An agreement was signed with the debtor countries on the payment of interest and principal with a delay. In 1995, the CIS countries, in order to repay their debts, paid $800 million (in goods). Russia continues to provide loans. According to the draft budget-97, it is planned to issue 2 trillion. rub. Many countries owe us for products supplied by various enterprises (Ukraine owes Gazprom about $2.5 billion). For these debts, Ukraine issued government currency bonds and the right to acquire property on the territory of Ukraine to pay off the debt.
With foreign countries
Russia is the main successor of the creditor of the USSR. By the beginning of 90, loans worth 26 billion rubles were issued, incl. Cuba owes 18%, Mongolia and Vietnam 11% each, India 10%, Syria 8%, Poland 6%, Iraq 4%, Afghanistan 3.5%, etc.
Many loans were issued for the purchase of military equipment. These loans did not contribute to economic prosperity. Repayment of loans is very problematic. Most countries don't repay loans, and those that do do so repay in goods on very favorable terms. We constantly delay payment, sometimes we provide additional loans.
Russia's external debts to non-CIS countries - $140 billion - 1st place in the world in terms of absolute debt. In % of GDP - 30% of GDP. In % to export of goods and services - 200%. External debt began to grow from the 80s, the first contribution was the transition to a convertible currency at world prices (formerly in terms of rubles).
Certain amounts given by Germany and other Western European countries. More than $ 80 billion - the debt of the USSR, which was assumed by the Government of the Russian Federation. Russia continued to take loans from international governments and organizations.
In the structure of Soviet debt:
28 billion - Germany, 5 billion - France, 4 billion - USA, 2 billion - England.
30 billion - CMEA countries, including: 8 billion - Poland, 5 billion - Czechoslovakia.
Russia's debt for 94 g: 2 billion - USA, 2 billion. - Germany, 3 billion - to international organizations.
For 1997 we have to pay 7 billion + 2.5 billion interest.
The Paris Club - all the creditors who gave loans under the guarantees of their governments, and we owe him 40 billion dollars. It must be repaid as a matter of priority by restructuring. Banks that gave loans without guarantees from their governments - London Club - 32 billion dollars (% - 0.5 billion dollars for 3 years, restructuring for 25 years). Tokyo Club - $8 billion. Former social countries: with Poland - a zero option, the Czech Republic, Slovakia, Hungary - we repay with the export of goods, Bulgaria - we are negotiating.
4. Financial relations with international organizations
Russia is currently participating in international UN organizations, non-profit, promoting economic and cultural development; as well as in international financial and credit organizations. Quotas of contributions to the UN are determined in proportion to the country's share in world GDP. Russia pays $400 million monthly to the UN budget. Much financial participation the Russian government to UNESCO - we pay $ 24 million a year. World Health Organization - $20 million per year. International Labor Organization - $15 million per year. In IAEA - 12 million. UNIDO - 8 million dollars, Russia also actively participates in the IMF - an independent organization that promotes international trade and exchange rates. Russia is a participant, making foreign exchange contributions to the statutory fund, taking into account the country's share in world trade. In proportion to quotas - the number of votes (USA - 19%). Loans are given under strict conditions to improve the balance of payments and maintain the exchange rate. Russia received $11 billion from the IMF. World Bank - the appointment to promote the economic development of countries by providing loans. Participants are IMF members only - contributions are proportional to their share in world GDP. Loans are provided for no more than 20 years with a thorough study of the lending project. Russia received $5 billion from the World Bank and $2.5 billion from the European Bank for Reconstruction and Development. The cost of maintaining peacekeeping forces in Yugoslavia, Georgia, Abkhazia.
40. Finance and economic globalization
Globalization of the economy is the process of transforming the world economy into a single market for goods, services, labor, capital, and knowledge. Finance as a management tool is used to integrate countries into the world economy. Functioning in international sphere, finance affects economic interests participants act as a stimulus for the development of world economic integration.
International finance covers currency, credit, financial relations in the world economy, all financial flows, international loans, international capital flows.
The emergence of international finance is associated with the formation of the world economy, the growth of international trade and the formation of the world market, the deepening of the international division of labor, the increase
m and diversification international movement capital. Features of international finance:
1) are expressed in currency units;
2) one of the parties to the relationship is a foreign partner;
3) are outside the national economies and mediate the international integration process. The role of finance in globalization is determined in the following areas:
1) finding sources and mobilizing financial resources to finance various areas of international cooperation;
2) regulation of international integration processes;
3) stimulating the development of each species international relations and directly their participants. International economic relations between the subjects of the world economy are implemented in the following 3 forms.
1. Form of international trade. It's trading
operations contribute to the formation of the share of national income, which is realized as a result of foreign economic activity. With the help of financial instruments, settlements on transactions are carried out, income is distributed among the participants.
2. Form of capital investment.
The export of capital is the purposeful movement of funds from one country to another for their more profitable placement.
Forms:
1) direct investments - investments in enterprises for the purpose of developing and expanding production, mastering new types of products, improving technologies;
2) portfolio investments - capital investments in foreign securities;
3) the export of loan capital - the provision of loans, loans.
The exporting country receives a profit, the importer receives financial injections.
The Role of Finance - Resource Mobilization foreign investors. Foreign investment in the economy contribute to its stabilization and recovery. When exported, finance ensures the development and improvement economic ties and the formation of financial resources.
3. Form of credit and financial relations. Almost all participants in international economic relations join them. In the performance of credit and financial operations and maintaining the stability of international settlements, the leading role is played by international credit and financial institutions: the IMF, IBRD, EBRD, BIS, etc.
4. Form of payment and financial relations.
41. Features of the functioning of financial systems in economically developed countries
The US credit system is the most developed in the world and is a combination of public and private credit institutions. Its main component is the Federal Reserve System (FRS), which performs the functions of the Central Bank. The Fed implements the monetary policy of the state, influencing the economy through the sphere of credit and monetary circulation. The most important instruments of monetary policy are operations with government securities on the open market, the expansion or restriction of credit through the discount rate mechanism and direct regulation bank reserves. In 1980 and 1982 The USS Congress passed laws to deregulate financial institutions. Ceilings have been removed interest rates on deposits, reserve requirements for banks and other financial institutions have been unified, opportunities for raising funds have been expanded, etc.
Germany.
Characteristic for Germany is control of the financial market represented by banks over the manufacturing sector of the economy. Banks own significant stakes in industrial and other companies, carry out trust (trust) management of shares of small co-owners (shareholders) of companies, have their representatives on the supervisory boards of companies, gaining the right to participate in making the most important financial and investment decisions. The banking control mechanism is based on direct access to intra-company information and influence on the production, financial, and innovative activities of firms.
The country's financial capital is a combination of industrial, banking and other companies, covering all national economy– financial-industrial groups (FIGs). A feature of the FRG is the smaller number of such groups compared not only to the United States, but also to other developed countries whose economy is comparable in size to the German one.
The main activities of the Central Bank of the Russian Federation (Bank of Russia): conducting a unified monetary policy, issuing cash and organizing its circulation, refinancing, organizing cashless payments, regulating and supervising the activities of commercial banks, foreign exchange regulation and foreign exchange control, settlement and cash services state budget.
At the moment, the main tasks of the Central Bank of Russia are:
- stability of work and strengthening of the financial position of commercial banks;
- orientation and stimulation of the bank's activities in the areas of lending aimed at fulfilling the priority tasks of the economy;
- scientific organization of money circulation in national economy;
- regulation of money circulation;
- ensuring the stability of the ruble;
- unified monetary policy;
- organization of settlements and cash service;
- protecting the interests of depositors, banks;
- supervision over the activities of commercial banks;
- foreign economic activity.
But, unlike command economy, now the methods of managing the banking system are mainly economic:
- change in the norms of mandatory reserves in the CBR;
- change in the volume of loans provided by the CBR to commercial banks, as well as interest rates on them;
- conducting operations on the open market with securities and currencies.
The CBR is the lender of last resort. The main functions of the Central Bank include the following:
- an issuing function that remains important, since cash is still needed for a significant part of payments and to ensure the liquidity of the credit system, which must have funds for the final repayment of debt obligations;
- the function of accumulation and storage of cash reserves for commercial banks, i.e. each bank - a member of the national credit system is obliged to keep on a reserve account with the Central Bank an amount in a certain proportion to the size of its deposits. At the same time, the Central Bank is traditionally the custodian of the country's official gold and foreign exchange reserves;
- function of lending to commercial banks, characteristic of a socialist economy with a state monopoly on lending activity, as well as for the transition period, accompanied by a shortage of funds from private financial institutions. It is less manifested in a developed market economy, where such lending exists mainly during periods of financial difficulties;
- providing loans and performing settlement operations for government bodies, as in the budgets of various levels accumulates up to half or more country's GDP. These funds are accumulated in accounts with central banks and spent from them. At the same time, central banks maintain accounts of government agencies and organizations. In addition, they carry out transactions with government securities, provide credit to the state in the form of direct short-term and long-term loans or purchase government bonds. Central banks also conduct transactions in gold and foreign exchange;
- clearing function, or the function of non-cash settlements.
The Central Bank, as a national institution, has significant tools with which it can regulate the activities of both individual banks and the banking system as a whole. Pursuing a policy aimed at stabilizing the banking system, the Central Bank may require commercial banks to increase their reserves, issue them short-term loans as support or, on the contrary, revoke banking licenses, and restrain the opening of branches. In accordance with the policy of the Central Bank, commercial banks also change their tactics - expand or narrow investments, regulate the direction of their activities.
