Basic financial categories. Financial system classification The concept of financial resources

The financial system is classified according to various criteria.

The above "narrow" definition of the term contains a fundamental model for the classification of the financial system based on essential characteristics of finance, their place in social and economic processes. According to this criterion, the financial system consists of three parts:

1) a set of financial relations;

2) the totality financial resources;

3) financial management apparatus.

The financial system is an integration-type system, characterized by a close connection of its constituent elements (subsystems) and the fact that none of its subsystems can exist independently: finance, on the one hand, expresses part of production relations and therefore acts as an element of the system of these relations, with the other - represent a system consisting of interconnected elements that have their own functional properties. In finance, it can be called as functional subsystems such as tax, budgetary, foreign economic, financial plans (forecasts), legislative support for financial control, etc. (see diagram 2.2).

In addition to the functional criterion for the classification of the financial system, the classification by on the basis of financial entities (involved in financial relations), which allows you to delineate the financial system by links (see diagram 2.3).

The links, as a subordinate row of the classification, contain elements of the highest category: financial relations, financial funds, management apparatus. This property of systematization gives the financial system an integrative character.

The place and role of the individual components of the financial system are not the same. The primary (main) element occupies leading place among other elements of the system, since its role in the relationships of elements and links of the system is decisive.

Such an element in the financial system is general government finance, presented primarily the state budget.

Scheme 2.2. The composition of the financial system by functional

criterion

Finances of economic entities in the sphere of material productionmake up basis of finance, they are the initial link of the financial system, since a real product is created in material production - the main source of society's financial resources.

Population (household) finances represent a kind of part of the financial system. The population (citizens) enters into relations with their monetary funds with the national financial system and economic entities of production and

Scheme 2.3. Diagram of the financial system by links

intangible spheres of all forms of ownership. These diverse relationships are associated with wages to the population, contributions to the funded pension system money and payments from it; receiving material and non-material benefits; on the other hand, the population pays taxes with their own money, pays for the services of state and other institutions and organizations in the production and non-material spheres.

Such relations are financial, and in part, monetary relations associated with the purchase of consumer goods and services in the trade network, in markets, enterprises and organizations serving the population (transport, communications, household sector, etc.), although they are related to exchange, but with the presence of financial components characteristic of this stage of reproduction.

At the same time, the specificity of the finances of the population consists in the peculiarity of two characteristic parts of the financial system: the stock form and external management, although the funds of the population can, in each individual case, have a target orientation or be saved and their owner disposes (manages) them in accordance with their own intentions. Here it also manifests itself, in the variety of monetary relations, both their purely financial nature - when paying taxes and other obligatory payments to the state, payments from public consumption funds, - and a transitional (simultaneous) moment of interaction with the finances of other economic categories - wages, prices in settlement system, the gradual disappearance of financial relations and the entry into force of other economic relations. Extensive financial relations arise in this link in connection with the employment of citizens by individual and small business: such relations are similar to those arising in the financial link of business entities (see Part IV, Chapter 20).

General government financeinclude financial relationships expressed in state budget as an economic form of formation of a centralized fund of financial resources and the main financial plan of the state, in extra-budgetary special funds, as additional forms of targeted financing of public needs, in a government loan.

State loan is included in the financial system, although credit relations differ from financial ones. But due to the fact that this type of loan is aimed at covering the state budget deficit, ensuring the stability of public finances, settlements on it are carried out at the expense of budget funds - this sub-link can be considered as belonging to both the financial and credit systems.

It also stands out as a relatively independent part of the financial system - fiscal system - as an aggregate fiscal subsystem of the state with its inherent directive-binding properties.

The second link is the finances of business entities has two relatively independent components:

Finances of economic entities in the sphere of material production (real sector);

Finances of organizations and institutions of the intangible sphere (service sector).

Finances of the sphere of material productionsolve the problems of the formation and effective use of decentralized funds in manufacturing companies, firms, corporations, other forms of economic activity organizations, as well as centralization of funds in the target and reserve funds of the higher authorities of the named economic entities. The finances of this sub-unit serve production activities, provide an active influence of financial levers on the growth of labor productivity, on improving the efficiency of other quality indicators of production. This includes the following components, covering the grassroots and representing them activities:

agriculture, hunting and forestry;

fishing, fish farming;

mining industry;

manufacturing industry;

production and distribution of electricity, gas and water;

construction.

Place and role service finance (intangible sphere) in the financial system is determined by its relationship with the distribution and use of national income. Financial relations in this sub-link arise in its primary structures and between them, with other links of the financial system, with links of other economic systems: prices, credit, etc. Finances of the intangible sphere include the following components:

trade; repair of cars and household goods;

hotels and restaurants;

transport and communication;

financial activities;

real estate transactions, rentals and services to businesses;

public administration;

education;

health care and social services;

other communal, social and personal services;

provision of housekeeping services;

indirectly measured financial intermediation services.

In the second link, financial relations serve the movement of already created value through the channels of its redistribution for the purpose of further consumption through the formation of funds of a different purpose.

A set of centralized and decentralized financial resourcesinherent in the links of financial relations are the second part of the financial system. The material content of finance is expressed in the formation and use of financial resources, including many monetary forms: budgetary, state and non-state social insurance and security, depreciation, working capital, consumption. Some resources are centralized to a greater extent, others to a lesser extent (see Chart 2.4), some are constantly spent (resources for consumption), others are temporarily stored (reserves, and others are accumulated (depreciation).

Forms of financial relations, financial resources and funds of funds form controlled material object. Governing entityact financial apparatus,which is a system of state, industrial and social apparatus of financial management and is third part of the financial system.

Financial apparatus,engaged in economic and control work in the process of organizing, planning, accounting for financial activities, improving the links of the links of financial relations is compatible with other parts of the financial system and organically enters into it. This means the intertwining in the financial system of both basic and superstructure relations and its controllability.

Scheme 2.4. Classification of financial resources (savings, funds)

The essence of finance

Prerequisites for the emergence of finance.

The modern world is a world of comprehensive and omnipotent commodity-money relations. They permeate the inner life of any state and its activities in the international arena.

In the process of reproduction at different levels, from the enterprise to the national economy as a whole, funds are formed and used. At the same time, it does not matter in what form the money appears: in the form of cash paper signs, or in the form of credit cards, or on the sums that appear on bank accounts in general outside any form. The system of education and the use of funds of monetary resources involved in ensuring the reproduction process is the finances of society. And the totality of economic relations arising between the state, enterprises and organizations, industries, territories and individual citizens in connection with the movement monetary funds, forms a financial relationship. They are complex, diverse and resemble the circulatory system of a living organism, through which the movement of goods and services, a kind of exchange of substances between the economic cells of a social organism, takes place. Finance is a historical category. They appeared simultaneously with the emergence of the state with the stratification of society into classes. The term finansia originated in the 13th - 15th centuries. in the commercial cities of Italy and denoted any cash payment. Later, the term received international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of state funds of funds. Thus, this term reflected, firstly, monetary relations between two subjects, i.e. money acted as the material basis for the existence and functioning of finance (where there is no money, there can be no finance); secondly, the subjects had different rights in the process of these relations: one of them (the state) had special powers; thirdly, in the process of these relations, a nationwide fund of funds - the budget - was formed (therefore, we can say that these relations were of a fund nature); fourthly, the regular flow of funds to the budget could not be ensured without giving taxes, fees and other payments a state-compulsory nature, which was achieved through legal rule-making activities of the state, the creation of an appropriate fiscal apparatus. The following financial prerequisites are distinguished:

First premise. In Central Europe, as a result of the first bourgeois revolutions, although monarchical regimes were preserved, the power of the monarchs was significantly curtailed, and, most importantly, the head of state (monarch) was rejected from the treasury. A nationwide fund of funds arose - the budget, which the head of state could not single-handedly dispose of. Second premise. The formation and use of the budget began to be systemic, i.e. systems of state revenues and expenditures with a specific composition, structure and legislative consolidation arose. Third premise. Monetary taxes became predominant, whereas earlier state revenues were formed mainly from taxes in kind and labor duties. Thus, finance expresses a certain area of \u200b\u200bproduction relations and belongs to the basic category. But what is the role of the state here? Some economists, proceeding from the fact that financial relations are fixed by the legislator in the relevant regulatory acts, determine the dominant role of the state in the formation of these relations and, therefore, classify finance as legal, i.e. superstructure category. But the fact is that a legal act only fixes the content of objectively existing economic relations, proving that finance is, first of all, an economic category (and refers to the basis) and only then - a legal category, i.e. the state, according to the apt expression of the economist E. A. Voznesensky, "dresses" financial relations in a legal form, gives them an appropriate state-power form while maintaining their objectively economic nature. However, the role of the state cannot be diminished. The state actively influences finances depending on the political structure, main tasks, current conditions and other reasons. Through its financial policy, the state can influence the economy, exerting both positive and negative influence on it. Since, undoubtedly, finance is a historical category (they have stages of origin), then two main stages in the development of finance can be distinguished.

At first, it was an undeveloped form of finance, when the bulk of the money (2/3) was spent on military purposes, and finance had practically no impact on the economy. Another characteristic feature of this period was the narrowness of the financial system, since it consisted of one link - the budgetary one, and the number of financial relations was limited. All of them were associated with the formation and use of the budget. With the development of commodity-money relations, the need arose for new national funds of funds and, accordingly, new groups of monetary relations regarding their formation and use. At present, regardless of the political structure and level of the economic structure of a particular state, finance has entered a new stage of its development. This is due to the multilevel financial systems, a high degree of impact on the economy, and a wide variety of financial relations. Along with traditional public finances, local finances, extra-budgetary special government funds, and finances of state enterprises have developed significantly. Completely new areas of financial relations have emerged, such as the finance of interstate communities.

Functions of finance as a manifestation of their essence

Distribution function

Distribution function is that the financial resources of the enterprise are subject to distribution in order to fulfill monetary obligations to the budget, banks, counterparties. Its result is the formation and use of targeted funds of funds, maintenance of an effective capital structure. The distribution function manifests itself in the distribution of national income, when the so-called basic, or primary incomes are created. Their sum is equal to the national income. The main income is formed when the national income is distributed among the participants in material production. They are divided into two groups: 1) wages of workers, office workers, incomes of farmers, peasants employed in the sphere of material production; 2) income of enterprises in the sphere of material production.

However, primary income does not yet form public funds sufficient for the development of priority sectors of the national economy, ensuring the country's defense capability, and meeting the material and cultural needs of the population. Further distribution or redistribution of national income is necessary, associated with: - with intersectoral and territorial redistribution of funds in the interests of the most efficient and rational use of income and savings of enterprises and organizations;

The presence, along with the non-production sphere, in which the national income is not created (education, health care, social insurance and social security, governance);

Redistribution of income between different social groups of the population.

As a result of the redistribution, secondary or production income is formed. These include incomes received in the non-productive sectors, taxes ( income tax from individuals, etc.). Secondary incomes serve to form the final proportions of the use of the national income.

Control function

The control function is manifested in the control over the distribution of GDP among the relevant funds and their spending for the intended purpose. In the context of the transition to market relations, financial control is aimed at ensuring the financial development of public and private production, accelerating scientific and technological progress, and improving the quality of work in all sectors of the national economy. It covers production and non-production areas. It is aimed at increasing economic incentives, rational and thrifty spending of material, labor, financial resources and natural resources, reducing unproductive expenses and losses, suppressing mismanagement and waste. Thanks to the control function of finance, society knows how the proportions in the distribution of funds are formed, how timely financial resources come to the disposal of various business entities, whether they are economically and efficiently used by them, etc. One of the important tasks of financial control is to check the exact observance of legislation on financial issues, the timeliness and completeness of the fulfillment of financial obligations to the budget system, the tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments.

The control function of finance is also manifested through the multifaceted activities of financial bodies. Employees of the financial system 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 system. Distribution and control functions are two sides of the same economic process. Only in their unity and close interaction can finance manifest itself as a category of value distribution. Financial information acts as a tool for implementing the control function of finance. It is concluded in the financial indicators available in the accounting, statistical and operational reporting. Financial performance allow you to see the various aspects of the work of enterprises and evaluate the results of economic activities. On their basis, measures are taken to eliminate the identified negative aspects. The control function, objectively inherent in finance, can be realized with greater or lesser completeness, which is largely determined by the state of financial discipline in the national economy. Other functions In addition to its distribution and control function, finance also has a regulatory function. This function is associated with state intervention through finances (government spending, taxes, government credit) in the reproduction process.

State finances

State finances - economic monetary relations arising from the movement of money. On the basis of these relations in the state there are cash flows and monetary funds are functioning. All financial relations of the state can be combined into five groups: a) budgets of various levels: federal, republican, territories and regions; local, i.e. financial relations associated with the formation and use of national and regional funds of funds; b) credit and banking system - financial relations that form the state loan fund, used as the main source of borrowed funds; this includes relations related to cashless payments, etc .; c) insurance - financial relations aimed at reducing and eliminating risk in the activities of enterprises, government and other bodies; d) stock market - financial relations associated with the circulation of government, corporate and other securities; e) finances of state unitary enterprises.

The sphere of public finance consists of the following links:

· the state budget; · Government credit. · Off-budget funds.

Public finance - monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth, associated with the formation of financial resources at the disposal of the state and its enterprises and the use public funds for the costs of expanding production, meeting the social and cultural needs of society, the needs of defense and management.

The state budget - the main link of the financial system, is a form of formation and use of a centralized fund of funds to ensure the functions of public authorities, is the main financial plan of the country, approved by the Federal Assembly as a law. Through the state budget, the state concentrates a significant share of the national income to finance sectors of the national economy, socio-cultural events, strengthening the country's defense and maintaining the bodies of state power and administration.

State loan - monetary relations arising between the state and legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of state authorities and their use to finance public expenditures.

Extrabudgetary funds - a specific form of redistribution and use of financial resources attracted to finance certain social needs and are used in a comprehensive manner based on the organizational independence of funds.

The sources of the formation of off-budget funds are:

· Special target taxes, loans and income from holding monetary lotteries;

· Subsidies from the budget; · Additional income and saved financial resources;

· Voluntary contributions and donations.

The purpose of off-budget funds is to stimulate the development of backward infrastructure sectors, to provide additional resources to priority sectors of the economy. Extrabudgetary funds - these are funds from the federal government and local authorities. They finance expenses that are not included in the budget, are formed from mandatory earmarked contributions, which for an ordinary taxpayer are no different from taxes. non-budgetary funds are created in two ways:

Allocation from the budget of certain expenses that have a special essential;

· The formation of an off-budget fund by its own sources of income for specific purposes.

Trust extrabudgetary funds are intended for targeted use. Usually, the name of the fund indicates the purpose of spending the funds.

The sources for the formation of off-budget funds are

Mandatory payments established by the legislation of the Russian Federation,

decisions of local authorities;

Voluntary contributions from individuals and legal entities;

Profit from commercial activities carried out

foundations - legal entities;

Other income provided by the relevant

legislative acts.

In addition, the material source of off-budget funds, as well as other links of the financial system, is the national income. The overwhelming majority of funds are 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 these are special taxes and fees imposed by the legislature. A significant number of funds are formed at the expense of central and local budgets. Budget funds come in the form of gratuitous subsidies or certain deductions from tax revenues. Extra-budgetary funds can also be revenues from borrowed funds. In cases where extrabudgetary funds have a positive balance, it can be used to purchase securities and make a profit in the form of dividends or interest.

17Budgetary system of the state. Federal (state) budget, main sources of income and directions of expenditures. The principle of fiscal federalism. Extra-budgetary funds of the state.

The state budget is a mechanism that allows the state to pursue social and economic policies in our country.

Through the state budget, the influence on education and the use of centralized and decentralized funds of funds is carried out.

The budget is a system of education and spending of funds, which are intended to finance the provision of tasks and functions of the state and local government.

With the help of the state budget, state authorities receive financial resources for maintaining the army, state apparatus, etc.

The state budget is the financial plan of the state, with the help of which the authorities receive a real economic opportunity to exercise power.

At the same time, the budget is a category that is peculiar to different relationships. The emergence and development of the budget is associated with the origin and formation of the state. For the state, the budget is a tool for ensuring its own activities, and at the same time it is an important element for the implementation of social and economic policy.

Budget objectives:

1) redistribution of GDP;

2) financial security budgetary sphere and implementation of the state social policy;

3) government regulation and stimulating the economy;

4) control over the formation and use of centralized funds of funds.

Through the formation and use of centralized funds of funds at the levels of state and territorial power, it is manifested distribution function budget.

The state with the help of the state budget regulates the economic life of the country, economic relations, directing budget funds for the development and restoration of industries and regions. And in this regard, the state can accelerate or restrain the pace of production, enhance or weaken the growth of capital and savings, change the structure of supply and demand.

The redistribution of GDP through the budget has two stages.

1. Formation of budget revenues.

In the process of generating budget revenues, a part of GDP is withdrawn in favor of the state. In this regard, financial relations between the state and taxpayers arise.

Budget revenues pursue a single goal, which is to form the revenue side of budgets of different levels. They are characterized by impersonality and monetary form. Budget revenues can be tax and non-tax in nature. Sources of tax income: profit, wages, interest on loans, rent, value added, savings, etc.

Non-tax revenues of budgets are formed as a result of the economic activity of the state or during the redistribution of revenues already received by the state across the levels of the budget system.

2. Use (expenditure) of budgetary funds.

Budget expenditures are funds that are used to finance the tasks and functions of the state and local government.

Budget recipients are organizations in the production and non-production areas that can receive and distribute budget funds; they are financed through budgetary expenditures.

Basically, budget expenditures are irrecoverable.

At the expense of budget expenditures, budget funds are redistributed across the levels of the budget system through subsidies, budget loans, subventions, etc.

The structure of budget expenditures is established in the budget plan and depends, like budget revenues, on the economic and other situation in the country.

The control function of the budget operates in conjunction with the distributive one and makes it possible to implement mandatory state control over the receipt and use of budget funds.

The budgetary system is the main link in the financial system of the state, it is an integral part of the budgetary structure.

The budgetary system is a set of budgets of states, administrative-territorial entities, state institutions and funds that are budgetary independent. It is based on legal norms, economic relations and state structure. The construction of the budgetary system depends on the form of the country's administrative and state structure. All states are subdivided, depending on the degree of distribution of power between the center and the administrative-territorial entities, into: unitary, federal and confederal. A unitary state is a form of government in which administrative-territorial entities do not have their own statehood and autonomy. The budgetary system of a unitary state consists of the state and local budgets. The federal state is a system of state structure in which state formations or administrative-territorial formations that are part of the state are politically independent within the framework of competences distributed between the center and them, and have their own statehood. The budgetary system of a federal state consists of the federal budget, the budget of the members of the federation and local budgets. A confederate state is a permanent alliance of sovereign states pursuing political or military goals. Its budget is based on contributions from the confederation. The member states of the confederation have their own budget and tax systems.

The budget system consists of budgets of the following levels (Article 10 of the RF BC):

1) the federal budget and the budgets of state extra-budgetary funds;

2) the budgets of the constituent entities of the Russian Federation (RF) and the budgets of the territorial state extra-budgetary funds;

3) local budgets, including:

a) budgets of municipal districts, budgets of urban districts, budgets of intracity municipalities of federal cities of Moscow and St. Petersburg;

b) budgets of urban and rural settlements.

Income and expenses federal budget

Federal budget revenues are divided into tax and non-tax. The balance of funds at the end of the previous year is credited to the federal budget revenues.

Federal tax revenues are:

federal taxes and fees established by tax legislation;

customs duties, customs fees and other customs payments;

state fee.

Non-tax revenues of the federal budget are formed from:

income from the use of property;

income from the sale of property;

part of the profits of unitary enterprises.

The federal budget revenues also take into account:

profit of the Bank of Russia;

income from foreign economic activity;

income from the sale of government stocks and reserves.

Federal budget revenues can be transferred to the budgets of the constituent entities of the Federation and local budgets according to the standards established by the law on the federal budget for the next year.

The following expenses are financed from the federal budget:

ensuring the activities of the President of the Russian Federation, the Federal Assembly of the Russian Federation, the Accounts Chamber of the Russian Federation, the Central Election Commission of the Russian Federation, federal executive bodies and their territorial bodies;

the functioning of the federal judicial system;

implementation international activities;

national defense and security of the state, the implementation of the conversion of defense industries;

fundamental research and promotion of scientific and technological progress;

government support for rail, air and sea transport;

state support for nuclear energy;

liquidation of consequences emergencies and natural disasters on a federal scale;

exploration and use of outer space;

the formation of federal property;

service and repayment of public debt Russian Federation;

compensation to state off-budget funds for the payment of state pensions and benefits, other social payments subject to financing in accordance with the legislation of the Russian Federation from the federal budget;

federal investment program;

official statistics.

When forming budgets of all levels, it is envisaged to create reserve funds. The reserve fund in the federal budget cannot exceed 3% of the approved federal budget expenditures.

The size of the reserve funds in the budgets of the constituent entities of the Russian Federation is established by the legislative authorities of the constituent entities of the Russian Federation when they are approved for the next financial year.

Reserve funds are used to finance unforeseen expenses, including for emergency recovery operations to eliminate the consequences of natural disasters and other emergencies.

The order of spending from these funds is determined by the government. In addition, the federal budget for the next financial year provides for the creation of a reserve fund of the President of the Russian Federation in the amount of no more than 1% of the approved federal budget expenditures. The Budget Code of the Russian Federation establishes that the resources of the reserve fund of the President of the Russian Federation are spent on financing unforeseen expenses, as well as additional expenses provided for by decrees of the President of the Russian Federation.

It is not allowed to spend the resources of the reserve fund of the President of the Russian Federation for holding elections, referendums, covering the activities of the President of the Russian Federation.

Data on revenues and expenditures of the federal budget for 1997-2003 are presented in table. 1. The federal budget had a significant deficit in 1997-2000. In 2001, an attempt was made to balance the budget. A federal budget surplus of 72.2 billion rubles is planned for 2003.

The main expenditure items of the federal budget are:

servicing public debt (20% of all expenses),

national defense (19.0%),

financial assistance to budgets of other levels (15.6%).

Fiscal federalism

Fiscal federalism is the principle of division of powers between federal and regional authorities in the financial sphere, based on the supremacy of the federal

The study of the Chinese system of intergovernmental fiscal relations resulted in the formulation of the basic principles of building a system of fiscal federalism that promotes the functioning of markets, the task of which is to achieve economic efficiency.

The most important of these principles are the following:

1) Equality the rights of all subjects of the federation in their relations with the federal government, as well as the equality of rights of all municipalities in their relations with the authorities of the subject of the federation. 2) Independence of budgets at different levels of government, i.e. the presence of own revenues assigned to a particular budget by law, the ability to determine the directions and volumes of spending budget funds, the impossibility of withdrawing additional income received by higher authorities through the system of transfers or revenue sharing, the ability to receive compensation for additional spending powers introduced by decisions of higher authorities levels of government, the ability to establish tax incentives for their own taxes and fees.

3) A transparent system for the distribution of expenditure and income powers between the budgets of various levels, fixed by law on a long-term basis.

4) Correspondence of expenditure powers of budgets of different levels and their revenue sources.

5) Any distribution of financial resources between the constituent entities of the Federation or municipalities should be based on an objective and transparent system of criteria legally enshrined on a long-term basis. In other words, the system for the distribution of financial assistance should not be built on bargaining between the subjects of inter-budgetary relations over the amount of funding.

6) All controversial issues regarding the organization of the budgetary process, the distribution of income and financial assistance between the budgets of different levels should be resolved in the course of the legally established procedure.

"Financia" and "Financia categories" were the most common words of the time, as they were associated with the most precious thing of the time, namely gold. Translated from Latin, they mean the obligatory payment of money and the totality of all paid monetary transactions respectively.

However, somewhere these terms were very popular, but in the countries of Germany in the 18-19th century, they tried not to start talking about gold, and everything connected with it, since the latter were associated with bribery, violence and extortion.

As time went on, the economies of the countries developed, and at the beginning of the 19th century, France achieved unprecedented economic development. Since the French bourgeoisie was very popular, it decided to change the economy through the Revolution of 1796. The famous financier Rothschild put forward a modern interpretation of the term "categories of finance" are a collection of monetary transactions that were necessary to meet the most important needs of the state, as well as to meet the interests of social groups. Currently, finance is one of the most important categories of economics, which reflects all the actual economic relations that arise in the process of planning the use of funds.

Finance Categories are a characteristic of some form of relations that are involved in the redistribution and distribution of part of the GDP and national income of the state. Finance always represents monetary relations, however, not any, but only financial relations. Finance or their direct participation in any process is always supported by various legal acts, while non-financial relations do not have legal support. Participants (subject) of financial relations always independently determine all the nuances of the terms of exchange, as well as its size.

Most often this happens during the processes of buying and selling, issuing loans or other operations.
However, the essence of the category of finance can only be understood through a modern explanation of the term finance. Finance in the modern world is economic relations that participate in the creation and distribution of centralized and decentralized funds, which perform all the basic functions of the state, and also deal with issues of expanding reproduction. Reproduction includes both small businesses and large ones.

The structure of financial categories includes centralized finance, which is involved in the creation of funds accumulated in the national state budget system; decentralized finance - monetary relations that regulate the circulation and environment of monetary enterprises.
As a result of the above, we can say one thing that not a single highly developed state will be able to manage its economy without financial relations. Since it is they that contribute to the constant dynamics, growth, improvement of the quality of the products offered in the market of both light and heavy industries.

Responsibility of the parties in the calculations.

In the settlement process, the participating 3 parties may violate any obligations. For example:

Suppliers,if the delivery schedule is violated, a penalty is paid for the products that were not delivered on time, if the schedule is disrupted, a fine is paid on the entire amount of the product, if not everything that should have been delivered, the penalty is also paid.

Buyers,in case of late payment, a penalty is paid (a percentage of the unpaid amount for each day).

Bank,in case of violation of the term for crediting and transferring amounts, in case of errors in calculations, addresses, etc., the bank must compensate the amount of damage.

In Russia, since 1992, when the reform began, the improvement of non-cash payments is constantly being carried out. This is reflected in the fact that the volume of non-cash payments has increased from 50-60% to 70-80%, and at the same time the shadow economy has decreased. Activities such as sending fake advice notes have stopped.

Section 2: Theoretical Foundations of Finance.

Lecture 1: The essence and function of finance.

The relation of finance and the category of finance were formed simultaneously with the emergence of the state, with the development of monetary relations and with the division of society into social groups similar to classes. Financial relations are most developed under capitalism (late 16th - early 17th centuries). Finance is an integral part of monetary relations, and money is the material basis of financial relations. If money is a universal equivalent, then finance is an economic way of distributing and redistributing GDP, national income, it is also a means of controlling the formation and spending of funds.

Finance (from lat., Income, cash,) - This is a set of monetary relations organized by the state, in the process of which the formation, distribution and use of centralized and decentralized funds of monetary funds occurs, in order to fulfill the functions and tasks of the state and to ensure conditions for expanded reproduction.

Therefore, finance expresses monetary relations that arise between:

- enterprises, in the process of purchasing inventory and in the process of selling goods and services;

- between enterprises and parent organizations, when creating centralized funds and when distributing them;

- between the state and enterprises, when paying taxes ;

- between state and citizens ;

- between the individual links of the budget system ;

- between insurance companies and clients ;

- monetary relations that determine the circulation of funds within the enterprise .

2) The functions of finance are manifested in 3 functions:

1) distribution function,within which there is a primary and secondary distribution of income. Primary are formed in the material sphere, where the national income is created, and are distributed to the income of individuals involved in the production of goods and services, and the income of economic entities. Then happens secondary distributionor redistribution, it also applies to the income of individuals and institutions working in the non-material sphere;

2) control function,in financial relations, control occupies a significant place, and its organization depends on the state structure. In Russia, there is presidential control, government control (within which there is a ministry), and financial control. The structure of the Ministry of Finance includes treasury Department Is an organization whose direct responsibility is the distribution and control of budgetary funds. Also, within the framework of the ministry, financial control along the vertical of management has been established; parliamentary control; the parliament may appoint a special control, within the framework of which an accounting chamber is formed (headed by Stepashin). Feature: only the Accounts Chamber has the right to control the Central Bank, since in countries with market economies it is separate from the government.

3) stimulating (regulating) function, expresses the state regulation of financial relations, by changing the tax system, providing benefits, etc.

Financial system - is a set of various links in financial relations, each of which is characterized by peculiarities in the formation and use of the fund of funds, and a different role in social reproduction.

The financial system has 2 subsystems... The first includes general state finance, which should meet the needs of expanded reproduction at the level of the national economy as a whole.

Links of 1 subsystem:

Off-budget funds;

State loan;

Insurance system ( insurance funds) .

Subsystem 2 includes the finances of business entities. In this subsystem, finance is used to ensure reproduction at the level of individual enterprises or organizations. Business entities are subdivided according to organizational and legal forms (state, private, joint-stock, civil, etc. - see the regulatory document).

Lecture 2: State budget.

Topic number 1: Economic categories and enterprise finance

In any economy, a system of categories operates. This applies to the state in flail. The system of categories applies to the decentralized level of the economy of enterprises, organizations, firms and companies. The system of operating categories does not include all economic categories. The latter are only a part of this system, existing along with political, legal, legal and other categories. However, this part is essential for any economy. The economic categories include the categories of economic base, labor and capital.

These are such categories, for example, as goods and their value, fixed and working capital, surplus value, money, wages, price, credit, finance and many others.

Economic categories are manifested in the economy not separately, but in interconnection, together with other economic and superstructural categories. Finance is organically woven into the system of action of economic and other categories: political, ideological, cultural, etc. Therefore, the economic category of finance serves not only the reproduction of material goods and work force, but the whole set of operating categories that reproduce not only goods and labor in society. This is done only in the cost part of the functioning of other categories, including economic and non-financial in their composition.

Economic categories can belong to other economic categories. In this case, the lower category is the embodiment of the category of a higher order of generalization, For example, "taxes" is the embodiment of the category "budget", and the latter is the embodiment of finance. In turn, non-economic categories, mainly political ones, leave their mark on the functioning of economic categories. For finance, this is such a scheme: the political course - economic course - economic policy - financial policy, that is, the policy of strategy and tactics in relation to finance. Some economists put strategy above politics. Meanwhile, financial strategy is only an element of financial policy, albeit a basic or initial one. Usually, a strategy is not expressed in more than one phrase. For example, accelerated growth of profits, capital; reliance on their own development; market capture; innovative breakthrough; restrictions on the financial capabilities of a competitor, etc.

Categories are not mobilized or spent, not engaged or returned, not planned or funded, not formed or distributed, and are not profitable or unprofitable. Categories cannot be classified as liquid and non-liquid, any economic and financial category is basically liquid, since it is fundamentally determined to exist, performs its functions, is recognized by the economy and finance as necessary. Categories cannot be taxed. Taxes can be levied on practical forms of manifestation of categories in financial and economic practice, and this is done through financial policy in the state.

The actual movement of money, as a practical manifestation of this category, always contains a share of subjectivity in making monetary and financial decisions. At various stages of state development, negative elements in their functioning can and naturally appear. Money, finance, credit are categories with powerful control potential, which, however, is not realized automatically. The same is the case with the distribution, formation and use of newly created value and national wealth, expressed in monetary form. The value categories only have the potential for the implementation of targeted monetary and financial control by all business entities. All these are fundamental laws of existence or manifestation, functioning of the considered categories.

At the same time, the economic nature, the essence of money, finance, credit as categories should be methodologically free of subjectivity. The theory of money, finance and credit in general eliminates the particulars arising from the specifics of handling money at certain stages of economic construction. This is another fundamental law in the development of the theory of money, finance and credit. The existence of such a regularity is based on a certain gap between theory and practice. This circumstance cannot be regarded as a continuous negative. It is useful, theoretically and methodologically grounded, because it allows you to preserve, highlight and, if necessary, transform the main and defining in the understanding of categories. As for the separation of monetary and financial practice from theory, it usually does not satisfy in practical economic and financial and credit parameters. As a result, such a systematic gap acts rather as a brake on economic growth. In the history of our country, we extremely rarely went from theory to practice of monetary and financial relations. This pattern is not absolute, but negatively affects primarily the practice itself.

The theory of finance is a theory of the nature and characteristics of the functioning of a part of economic relations. This part of the relationship determines the internal springs and the mechanics of the main share of money turnover in the economy. The financial basis of the economy is specific and large-scale in comparison with other economic relations, which makes it possible to single out finance in one of the most significant economic categories.

Finance theory - category theory. The basis of the specifics of the nature of existence and functioning of finance in the economy is the one-way movement of value in monetary form. The basis of the specifics of such a movement is the monetary funds and reserves formed at different levels as a result of distribution. The basis of the specifics of the existence of monetary funds and reserves is the objective formation of financial resources in the economy. The basis of the specifics of financial resources is their circulation as a significant resultant part of the entire monetary turnover of enterprises and organizations. The basis of the specifics of such an appeal is its implementation in stock and non-stock forms. These forms are part of the money turnover in the economy. Only that part of the monetary turnover in the form of money and financial resources, which contains, reflects monetary distribution, or acts as its result in the form of financing, appears financial. Funding is no less close to distribution than the formation of funds and reserves as a result of distribution.

However, the specificity of the relations that the category expresses is not the only feature for identifying an economic category. The presence of a specific financial relationship in the economy is not enough for the unconditional inclusion of this relationship in the essence of the category. Such a financial relationship is certainly included in the content of practical forms of manifestation of finance, but not in the essence of the category. The category focuses a variety of particular specific phenomena of economic life into general ones. Category - absorbs the most essential and typical, characteristic and most important, discarding particular, sometimes exclusive, temporary, unstable forms of manifestation of the category. In addition, fundamentality, objectivity, universality are inherent attributes of categorization. The observance of these features for the selection of a category determines that it acts only as an abstraction. This means that a category is an abstract concept that generalizes the specificity of the content of many things by highlighting the main and most essential in this specificity.

The essence of the category - finance - does not fully coincide with the content of those social, economic, monetary relations that it expresses or reflects. This essence, in a way, is more essential than the manifestations of the content of the category, the embodiment of which is practice. Therefore, one should distinguish between the essence of finance as an economic category and the essence or content of finance as a system of financial relations.

The essence of finance as a category can be expressed through other economic and financial categories. This means that, in principle, there are categories of different levels of abstraction of the order. For example, high-order economic categories are a social product, money, commodity, value. Of a lower order - financial resources, wages, cost.

Financial categories are part of the economic categories. These include, for example, profit, taxes, budget. In relation to the category of finance, they are included in it. So there can be a category in a category. The category of finance itself, in principle, consists of a set of financial categories of low-order pains that reveal its essence. Consequently, finance is a set of monetary forms of manifestation of financial categories directly related to certain financial processes in the economy. The essence of finance as a category can be expressed through the environment and features of the functioning of finance. This environment is the economy or social reproduction. In it, not only part of economic, but also part of monetary relations appear as financial.

The peculiarity of economic and financial, in particular, categories is that their existence and functioning does not manifest itself outside the superstructure to the base, that is, outside the policy of their use in the state. Politics is always superimposed not only on the practical forms of monetary and financial relations, but also on our views on the essence of the category of finance. This is a pattern. The financial management process is not a category management process. They control not categories, but specific forms of their manifestation in financial practice... This happens because the economic category is an abstraction, a clot of theoretical generalization of objective reality, which allows you to highlight the most essential in nature of diverse, but similar economic phenomena. They control specific monetary relations, and not generalizations and concepts that reflect the objective side, the immutability of the phenomenon.

Managing the forms of manifestation of the economic category, finance, often changes the very content of financial relations. This happens through the clarification, cancellation or introduction of new instruments; or distribution and redistribution channels.

Does this change the essence of the category "finance"? If not, then we should recognize the categorical immutability of the understanding - finance in terms of commodity-money relations. If so, then the dynamics of the category essence should be manifested as the dynamics of control over the existing forms of its manifestation. And this is already the prerogative of financial policy.

If the essence of a category changes over time, then this happens under the influence of objective and subjective factors. An element of subjectivity in financial policy should organically penetrate into the general movement of the content of finance. Therefore, we are talking about the importance of the formative essential role of financial policy.

The latter fundamentally forms financial science, but does not define the essence of the category "finance". Financial policy determines the composition and nature of the action of financial relations, but not the objective nature of the existence of finance as a category. Under the influence of financial policy, the finances of enterprises and organizations have a different structure. Once a single, such a structure is formed under the influence of different methodologies chosen by enterprises, firms, companies and on the basis of not only accounting, but also tax accounting. The content of the finances of such enterprises is different, it is not comparable and therefore not correctly summarized,
the essence of the category of finance is one.

However, if the category cannot but be objective, then in understanding and defining the essence of this category - finance, it is important to eliminate the subjective component in the content of financial relations. This is tantamount to answering the question: which forms of manifestation of finance are objective, and which reflect the subjectively built monetary relations. Consequently, not all economic, monetary relations that actually exist in the economy can be recognized as relations that make up the essence of the category of finance. Not all cash, distribution, associated with the formation and use of funds (reserves), but only equivalent to the share of objective relations.

("1") Category - a product of social relations. Economic-economic. The functions of a category are forms of existence of an economic category. However, not all forms of existence express the essence of the category. Their very existence is not only the embodiment of objectivity, that is, the objective nature of the content of the category. All economic and financial categories fulfill their objective purpose through the principle of function. This principle means that the content of a category is revealed through the functions it performs. However, it is impossible to reveal the essence of the category only through the principle of functions, which is done in our educational and scientific literature. Another aspect of the analysis of the essence of finance is no less important. It is reflected in the principle of the relationship between economic and financial categories, as well as processes. This principle fixes not only the connection of the indicated categories, for example, economic categories of goods, money, value with the financial categories of working capital, cost, production costs, profit, but also the interdependence of the nature (or functioning) of each category with many related processes. For example, finance with financial policy, goods with production, prices with exchange, working capital with the costs of producing and selling products.

Existing economic and financial categories do not manifest themselves in economic and financial practice except through categorical - fundamental, and non-categorical - derived from fundamental processes. Both forms of manifestation of the category are focused on the scale of the economy as a whole and at the level of all kinds of business in the form of distributional summary forms, financial and economic results of activities. The compliance of these results with the requirements for improving the main criteria of financial and economic efficiency reflects the overall balance in the functioning of the category at this stage of development. This balance is the ratio of categorical and non-categorical processes in the manifestation of finance and other categories, which is logically connected with the system of distribution of material wealth through the formation and distribution of monetary and financial resources.

The task of effective financial management can, therefore, be reduced to an increase in the share of turnover, the scale of manifestation, i.e., the actual presence of categorical monetary and financial processes. The practical implementation of this is the control function. It is implemented: through the organization of finance to achieve certain political and economic results; methods and mechanisms of current management, and above all, planning; monetary and financial control, internal and external in accordance with applicable law. The growth of the scale and proportion of categorical financial processes in economic practice is always the strengthening of state finances, public finances and finances of enterprises and organizations.

Topic number 2:The essence of the category and the content of financial relations.

Finance functions in any state within a certain framework. This framework is set by the objectivity and specificity of the category of finance itself, determined by the state, and established by the market. The objective essence of the category is the share of legislative obligation in the mechanisms of its practical manifestation - the actual forms of manifestation of finance in the real economy. Each of the positions naturally deviates from one another. The essence of the category of finance is not manifested in the entire system of deviations existing in practice. The visibility of the monetary forms does not match, or does not completely match the entity.

When they talk about a category - finance, they mean that we are talking about a category - state finance; The concept of interstate finance, or international finance, which is somewhat broader, often eludes researchers of the essence of the category. In general, the nature of the category finance is national. Such finance has been and is acting primarily. In addition, the action of finance as a category and practical forms of manifestation of such functioning does not manifest itself otherwise than through the state, or the nationality of a participant in international financial relations. They are always "tied" to a particular state, or community of states, commercial, non-commercial national organizations. International financial relations of states and other national structures are an integral and integral part of the finances of the parties to such relations, representatives of states. This state of affairs is due to a fundamental circumstance.

The categories of goods, money, credit and finance, as a complicated form of manifestation and an integral part of monetary relations, do not know national boundaries in market economies. International political, trade and financial-credit organizations act as conductors of not only monetary and credit, but also international monetary and financial relations. This happens because the principle of entry exists and is practically implemented.

It possesses the universality of existence and acts as an integral attribute of the manifestation of the essence of the category of finance. The principle of entry describes the emergence and existence of finance. At the same time, there is no difference in relation to what this principle is considered: in relation to international forms of manifestation of the category, or in relation to national forms within the state. This principle fixes the constancy of the existence and manifestation of the category of finance.

The content of the principle we have designated is as follows. The category of finance appears only in relation to the category of money. The existence and functioning of the category of money generates and is accompanied by two types of cash flows: in the relationship with the shift of goods, works (services) and without such a direct relationship. Cash flows arise not because money is moving, but because goods are moving, work is being performed and rented out (paid), and market services with use value are rendered.

Cash flows outside commodity circulation are the movement of value, the representatives of which are money. Such cash flows arise because objectively there is a net distribution and redistribution without the equivalent of money in the form of goods, labor, work performed, services rendered. It is unnatural for finance to have other forms of expression other than money. The essence of the category of finance does not manifest itself outside the form of its expression in the form of cash flows of both types. The category of finance is included in the category of money, but not vice versa. This entry is imputed to exist and practically be realized only through cash flows, that is, through payments and financing. It enters not relatively, but absolutely. It is included not completely, but partially determining the money turnover. Therefore, the principle of entry acts as the law of the constant existence of the category of finance in a broader or more capacious category of money.

Cash and financial flows are the forms of manifestation of nature, the essence of the categories of money and finance. The content of monetary and financial relations is the concretization of these relations in monetary and financial practice. The content of finance can and necessarily deviates from the nature, the essence of this category. An example of this is barter, as well as commodity credit, which in practice actually carries the functional load not only of money and credit, but also forms financial results enterprises.

Finance as an economic category expresses certain social relations. Finance expresses the economic part of these social relations. Economic relations are an important part of production relations, that is, basic relations. Hence, finance expresses basic relationships. The essence of the economic category is thus determined through the relations that it expresses. If finance expresses economic relations, then they are determined by them, that is, they constitute the essence of the category of finance. However, almost everything can be represented as a social relation, and social relations about the economy - as economic relations.

The definition of the category of finance through economic relations is a definition through those relations that correspond to the theory of the mode of production and the process of reproduction. The latter is the theory of social relations and value, the origins of which are rooted in English political economy. The theory of finance is also the theory of the movement of value. Not only relationships determine the essence of the category of finance, but their monetary shell. Relationships can be objective and subjective. Finance is an objective category. Consequently, it must be determined through objectively existing components in the monetary Economy. This means that the essence of the finance category must be defined through categories.

If the doctrine of finance is based on the doctrine of money, then the former can be represented as the doctrine of cash flows in the distribution and movement of value. But not money itself, as exponents of value and a means of carrying out exchange and payment, is finance. The category of finance is the category of value movement in the economy. The movement of value, expressed in monetary form and materialized in cash flows, is carried out in society not stochastically, but in accordance with certain laws. The appearance of the opposite only confirms its frequent discrepancy in economics with the true essence of the phenomenon.

The essence of the category should be distinguished from the content of finance. The first isolates and reflects only the objective. Second, it contains a plus to this subjective. The content of financial relations is much more diverse than the essence of the category, which acts as a kind of economic law of the category's existence. It is broader than the essence of the category into subjectively built components of financial relations. For example, the repeated presence in finance of two instruments simultaneously in the form of value added tax and sales tax during the 90s and early 2000s characterizes the content (composition) of real financial relations in tax and financial practice. But this composition of taxes does not add anything to the essence of the category of finance. It only acts as a multiplier or "reproduction" of the objective content of the category in the practice of management, that is, the ability to distribute and redistribute in the money economy. Finance as an economic category expresses its essence as a category of reproduction processes: commodity production, distribution, exchange and consumption.

Finance as a category has a commodity-value nature. The peculiarity of this nature is the reproductive aspect of the creation and movement of value. The category - finances of the state and enterprises is nothing more than a reproductive modification of the categories of money and credit. There is a point of view that finances are divided into natural and monetary. Natural finance is a surrogate category. Water cannot be dry. Finances are only then finances when they have a monetary shell, when monetary relations take place. With natural exchange of products or barter, money does not mediate trade, but only evaluates it, playing an auxiliary role. Such a relationship cannot be recognized as financial. They are not accompanied by cash settlements. It is another matter if, as a result of such barter or the offsetting of mutual debts, there are monetary payments for the settlement of mutual settlements.

The category of finance, as an exponent of a certain specific part of social relations, is characterized by their riskiness. However, risk does not add specificity to finance against other monetary categories, whose functioning is also intrinsic. Risk as an economic, political, everyday and other phenomenon is not a category. Risk as a concept and social phenomenon lacks universality, partly political and economic features. Risks can not always and not everywhere be expressed in rubles, that is, they are not of a purely value nature, and certainly not of a purely commodity nature. In general, it is no coincidence that risks for their quantitative and qualitative assessment are expressed mathematically and statistically through percentages and probabilities.

However, risks accompany the functioning of the objective economic category of finance, since they are themselves objective to a significant extent. Objective only to the extent and insofar as they accompany the functioning of objective economic and financial categories.

Finance, as an abstraction called a category, is largely subject to risks. They accompany the functioning of finance. At the same time, high or increased riskiness is typical for decentralized finance, where the overwhelming, but not all, but part of financial relations have risk values. Public finance risks are derived from farm risks. Public finance is less risky. The reduced degree of risk is ensured by the power functions and powers of the state, whose economic interests are, in principle, higher than any other economic interests. However, here, too, often, but again not everywhere and always, there are risks of stress in the system of state financial relations. They are manifested through the constant lack of funding sources to cover government spending. This is a regularity in the functioning of public finances.

The essence of the category of finance is determined by production, distribution, exchange and consumption, and not by the risks of their implementation. Risks in a certain and significant part determine the functioning of the category of finance, and not its essence, the practical content and the likelihood of the implementation of financial relations in many areas of their functioning, and not the nature of the categories of finance itself. In fact, one cannot admit, for example, such a postulate that mathematical and statistical constructions of financial management determine the essence and nature of Actions in the category of finance. It is not finance that adjusts to formulas and charts. Any formulas, management concepts, etc. are attached to the laws of the category. The first group of risks represents general economic risks of the economic and political state of the state. These are the likelihood of unfavorable government events that can cause undesirable changes in the financial and economic activities of enterprises and organizations, as well as the result of the state as a whole. Such measures are associated with the implementation of budgetary, tax, customs, and other financial policies and decisions that may cause inflationary consequences. Another group of risks is commercial risks. These are the risks associated with a lack of profit for the enterprise, default by suppliers, late payment for products by consumers, overspending, payment of fines, penalties and penalties, payment of additional and additional taxes and fees, shortfall and non-receipt of funds from planned sources.

("2") The question of category management is not entirely legitimate. They manage not categories, but processes. Therefore, it is no coincidence that when, for example, they talk about price control, then we are talking primarily about the well-known process control elements directly related to them. The category "price" has not yet been managed by anyone.

Processes are forms of manifestation of the very existence of a category. Processes, including financial ones, are not categories themselves. Managing financial processes, we multiply only specific forms of embodiment of financial categories in business practice. The nature of the category, in contrast to our ideas about it, is unchanged. The set of conditions and forms of its manifestation is diverse, represented by many options. For example, a commodity and its value remain a commodity and value regardless of whether the commodity is created by living labor itself directly, or indirectly through the materialized labor of fully automated production.

However, technological progress and the development of society change our ideas about the product, but not about the nature of the product. The same is in finance - it is not the nature of finance as a category that changes, but the ideas about the monetary and financial forms of those relations that make up the external content of finance. The nature of the category is perfect. It is the focus of the objectivity of existence and functioning. The content of financial relations, that is, the content of a category in practice, is the focus of the aspirations of people, a certain part of which is united by the target settings of governing bodies and other subjects of management.

The content of finance is always the sum of the forms of embodiment of the nature of finance, which cannot be eliminated by any expression of will, plus the practical content of financial relations. The peculiarity of this amount is its variability, resulting from the certainly consolidated nature. The degree of effectiveness of such consolidation achieved is the rate of economic and financial growth. Hence the conclusion that it is not necessary to bring all the manifestations of finance under the essence or nature of the category. Some of them, exactly the opposite, absolutely do not express the essence or nature of finance. The fundamental law that does not detract from either theory or practice is as follows. The theory, in principle, inevitably and naturally cannot and should not reflect everything that exists in the practice of finance. At the same time, the practice of finance inevitably and naturally contains quite often what is not in theory. In principle, practice cannot, and therefore should not fully correspond to the theory of finance. This is the fundamental basis for the dialectical understanding of finance. Only on this methodological approach to the analysis of the essence of finance is it possible to reduce important differences in the theory of finance and the practice of financial relations.

The concept of the essence of the category is largely dependent on the applied research methodology. Theoretical ideas about the essence of the category finance can be based on various methodological bases. In general, such differences are manifested in the existing concepts of the interpretation of finance.

The essence of the category finance is fixed in its definitions, but it is not identical to even the best definition of the forms of existence of finance. The essence of the category of finance methodologically should not cover the whole variety of monetary and financial relations and the practical forms of their direct and transformed manifestation. In other words, the essence of the category of finance is not identical to the content of finance. The ideas about the essence of the category should not and cannot completely coincide with all, without exception, the applied forms of practical implementation of monetary and financial relations. This is the basic pattern of the scientific methodology for studying the essence of finance.

The essence of this category is only a variety of monetary and financial relations, focused through abstraction. The essence of finance is more essential than a set of practical forms of manifestation of the content of finance. That is why it is impossible in the interpretation of the category of finance to stoop to the list of the simple presence of certain specific monetary and financial relations in economic practice. These relationships are often changeable, not constant, the scale, time and role of their manifestation in the economy are often exaggerated, depend on the presence and formulation in laws that are subject to variability under the influence of stochastic policy factors. The essence of the category finance does not depend on the degree of success or failure of the specified formulations and the introduced mechanisms, which often later turn out to be temporary. It is essentially independent of the existence of the laws themselves. The content of finance depends on all this, but not finance itself as an economic category. The essence of the category in the current financial management plan is not subject to this management. The content and set of financial relations in a particular historical period is entirely determined by financial management through the implementation of such management of a political course in the economy and financial policy in relation to and at enterprises (organizations).

The essence of the category and the content of financial relations depend on the policy in different ways. For the category of finance, this dependence is less. In principle, it can manifest itself in the strategic development of the forms of existence and functioning of finance, aimed at their rooting. For the maintenance of finances, such dependence is greater and, in fact, constantly manifests itself in the current and tactical plans.

Each economic category has specific functions. It is generally accepted that the essence of a category is expressed through functions. The functions of a category cannot be identified with the whole variety of forms of manifestation of a category in economic practice. The number of such practical forms is always much greater than the number of functions that are really inherent in the nature of the category. The selection of functions should not be made on the basis of some change in the name of the process, phenomenon, or due to the appearance of a relatively new mechanics of its implementation. A theoretically and methodologically correct interpretation of any category should focus, not diversify. Practice, on the other hand, has the property of diversifying the same monetary and financial relations. It always contained, all the time, what was not and should not be in theory. Any division of functions, a division of the functional load of a category on the basis of a simple presence in certain areas of the economy is not proof of the new essence of the category, but evidence of a non-categorical level of research.

The function of the category of finance is not simply the presence of a monetary-financial relationship in one or another practical form, which is sometimes easily called a function. The function is a reflection of the most essential in the manifestation of the category in social, economic, financial relations. Economic and financial categories in the economy as a whole interact. They rarely act in isolation. Interaction presupposes the presence of interconnections and means mutual conditioning in manifestations. The totality of these characteristics of categories make up the organization of their functioning.

There are certain principles for organizing the operation of categories in economics and finance. These principles of expressing categories in business practice are fundamental. The most important of them is the principle of multiple forms of petition. Each economic and financial category does not just function in economics and finance, but has multiple forms of manifestation of its essence. This multiplicity is of a principled nature, that is, natural and universal. The second principle is the principle of the immutability of the economic nature of the category. In accordance with this principle, the economic and financial category generated by the foundations of the economic structure of society does not change its nature. The third principle fixes variability and acts as a principle for modifying specific forms of manifestation of a category in real and changing circumstances of economic and socio-political development. At the same time, it is not the economic nature of the category that changes, but the specific content of its content. This happens through the transformation of the forms of manifestation of categories and, in this sense, the struggle of opposites in the economic and financial structure of society.

The fourth principle of organization is the constancy of contradictions in the operation of categories. The totality of categories and their interaction does not mean the constancy of proportionality in their impact on the economy of any level. This means that there is no automatism and harmony in the operation of economic and financial categories. This is the law. There is also no persistence of positive effect. This is also the law. There are elements of automatism, self-regulation and a constant need to maintain proportions in the economy and finance. It is here that the deep, categorical foundations of the need to manage economic and financial processes are laid.