The functions of finance include. Finance: lecture notes (). The process of allocation and redistribution of financial resources

Questions for the State exam in the discipline "Finance"

The essence and function of finance.

Financial system Russian Federation.

Types of financial policy and its components.

Characteristics of the classical and neoclassical theory of finance.

Brief description of public administration bodies of finances.

The meaning, forms and methods of financial control.

Types of financial control.

Finance commercial organizations... Concept, functions, financial relations and financial resources.

Finance of non-profit organizations. Definition, income and expenses.

Finance of credit institutions. Functions and tasks of the Central Bank of the Russian Federation. Functions and operations of a commercial bank.

Insurance company finance. The essence of insurance, the insurance market and participants in insurance relations.

State budget revenues.

Expenses state budget... Subsidy, subvention, subsidy.

A budget device and its components.

Budgeting process and budget execution.

The essence and significance of state and municipal loans.

Public debt management methods.

Characteristics of state social extra-budgetary funds.

International financial relations.

Characteristics of international credit and financial institutions.

1. The essence and functions of finance

There are different points of view on the origin of the term "finance". According to some authors, this term originated in the 13th - 15th centuries. in the commercial cities of Italy as a concept denoting the system of monetary relations between the population and the state. In the opinion of others, this term was introduced by the French scientist J. Boden in 1755. The concept of "finance" was further transformed from the XVIII century. this word began to mean "the totality of state property and the state of the entire state economy" (S. Witte). Initially, the concept of "finance" was considered in a narrow sense, as the formation, use monetary funds, property to meet government needs.

The modern interpretation of the term "finance" is much broader and consists in the following.

Finance - this economic relationsrelated from formation, distribution and use of centralized and decentralized funds money.

We can immediately make a reservation that the circle of participants in such relations is quite wide, from the state as a whole to a sole entrepreneur, a citizen of the country.

It is important to understand the difference between the economic category "Finance" from category "money". So, finance differs from money primarily in its content ... If money is the universal equivalent for measuring labor costs, thenfinance - it is economic relations associated with the distribution and redistribution of gross domestic product (GDP) in order to form monetary funds, financial resources.

In this way, finance are secondary, t .e. derivative, ka category.

The main purpose of finance is to meet the needs of the state and business entities in monetary funds through the formation of monetary funds and at the same time organize control over their intended use.

Finance as an economic relationship has three very essential features:

the distributive nature of these relationships, which is based on legal norms and business ethics;

unilateral nature of cash flow;

as a result of these relationships, both centralized and decentralized funds of funds can be created.

The main and main source of monetary resources (funds) is GDP. Other sources, depending on the level of their formation, can be:

On state and local government level: revenues of state and municipal enterprises, revenues from property privatization, revenues from foreign economic activity (FEA), state and municipal loans, money emission and valuable papers etc.;

At the level of business entities : profit, amortization, sale of shares, dividends from participation in other organizations, bank loan, etc .;

At the population level: wages, social payments, income from transactions with personal property, income from entrepreneurial activities, consumer loans.

I carry out finances tthree main functions, which also distinguish them from money: dividing, control and regulating... Let's consider them briefly.

Distribution function of finance

As noted above, GDP is the main source of funds. With the help of finance, it is initially distributed on a macroeconomic scale (primary distribution), which leads to the creation of the so-called basic (primary) income consisting of wages and net income of industrial enterprises. Further, with the help of finance, secondary distribution (reallocation) GDP, when money is transferred to certain territories, which leads to the formation of incomes of organizations, non-production sphere (salaries of state employees, pensions, social benefits, etc.). The economic instrument for the distribution and redistribution of GDP is the current in the country system of taxation.

Distribution processes also take place within a single enterprise, i.e. on a microeconomic scale.

So, profit, being a source of formation of such monetary funds as funds for production or social development, a reserve fund and others, is a source of financial resources (a set of financial assets, all types of funds that an economic entity has), performs a distribution function already third order (tertiary distribution).

Control function of finance.

This function is manifested in the control over the distribution of funds at the macro and micro levels for the respective funds and their spending for their intended purpose. The control function is implemented through the activities of state financial authorities (for example, tax inspectorates) and financial services within the enterprise. In the conditions of market relations, financial control is aimed at ensuring the dynamic development of public and private production.

The term "finance" comes from the Latin "finansia", which means income, payment. It is often used as a synonym for money, more precisely, funds intended for a particular economic activity. In addition, it is understood as set of social economic relations associated with the movement of money, which much more accurately expresses the essence of finance .

Although finances are essentially monetary relations, not all monetary relations are financial, they become such only in the process of forming and using monetary incomes of participants in the reproduction process. The main difference between finance and money is the functions they perform. Finance is an economic instrument for the distribution and redistribution of national income, a means of public control over the processes of education and the use of funds.

In this way, finance – it is a set of economic relations associated with the formation and use of monetary incomes and performing the functions of distribution and redistribution of funds in society.

The essence of finance

The essence of finance is most fully revealed when considering their functions, financial mechanism and financial policy.

Financial policy is understood as a set of measures developed by the government to mobilize financial resources and their most rational use.

The main functions of finance are reproductive, distributive, stimulating and control.

Reproductive the function ensures the consistency of the circulation of funds, both within the country and within each enterprise. In this function, finance regulates the rates and proportions in the development of the economy, changes in its sectoral and territorial structure, and determines the reproduction of sectors of the non-productive sphere.

Distribution the finance function serves the process distribution created product and its redistributionoften called secondary distribution. Primary distribution carried out directly at the enterprises. Here, cash proceeds from the sale of products, works and services are divided, first of all, into the following mandatory parts: amortization fund, working capital fund, payroll fund for employees and their social security, profit. The profit of the company is subject to secondary distribution, part of which is directed to paying taxes, interest on a loan received from a bank, obligations on bonds and dividends to shareholders. The rest of the profit serves as a source of expanded reproduction, that is, it turns into capital, capitalizes.

Stimulating and control financial functions contribute to effective economic growth and ensure the alignment of financial interests of entities financial relations.

Finance functions

Finance is a relationship to create and redistribute public goods and wealth. In this sense, they are closely related to money circulation and the sphere of credit. At the same time, money performs various functions, the main of which can be called the function of a universal equivalent, a commodity that serves as a measure of the value and value of other goods, works and services. In contrast, finance is relations, i.e. are a tool for the accumulation and distribution of wealth, which is carried out, including with the help of money.

Finance is also closely related to credit: the latter creates the basis for expanded reproduction and accelerated accumulation of wealth. Across credit relations the distribution function of finance is partially realized and the movement of cash and commodity flows is directed. The healthy functioning of finance largely depends on the state of monetary circulation and credit: the more developed the monetary and credit systems, the more efficiently the accumulation and redistribution of social wealth occurs.

Finance performs the following main functions:

1) the distribution function is to create basic or primary income by distributing the national income among the participants in material production, as well as to create secondary or derived income by distributing national income between the production and non-production spheres, branches of material production, regions, forms of ownership and social groups. The distribution stage begins with the distribution of new value and ends with the formation of primary income (wages, profits).

The stage of redistribution is a multi-stage stage at which national funds are formed: the state budget, off-budget funds, insurance, banking funds and enterprise funds.

1) Distribution function - an objective property of the category of finance to distribute the value of the created product in monetary terms.

The redistributive stage differs from the distributive one in that at this stage the previously created income is redistributed;

2) redistributive function - the redistribution of the created product, that is, the secondary distribution among the members of society. The entire process of redistribution of GDP is served by public finance based on the formation and use of centralized funds of funds. The centralized funds include budgets of all levels and extra-budgetary funds. With the help of the system of centralized finance in the Russian Federation, about 60% of the value of GDP is redistributed. This redistributive process serves public finances;

3) control function - the implementation of the observance of proportions in the distribution process. The proportions for different industries are different, add up under different conditions, and are also objective. The distribution process is the object of control.

The main controlled proportion is the proportion between accumulation and consumption funds.

In connection with the development of market relations, in addition to budgetary relations, extra-budgetary ones appeared. Part of the funds for social and cultural events goes through extra-budgetary funds. We are cutting the budget, but at the same time the burden on the enterprises that make contributions increases;

4) regulatory function (finance can both stimulate production and suppress it). The formation of state monetary funds means the accumulation of revenues in budgets and off-budget funds of various levels. As a result of this function, budget funds are formed to ensure the goals of the state's functioning. The use of monetary funds (income) in the state - ensuring the financing of budget expenditures. As a result of the operation of this function, the financing of expenses accepted for budgetary financing is ensured.

Many financiers believe that the main functions of finance include distribution and control, and the rest are derivatives of the distribution function.

The control function of finance is closely related to the distributive one. Among the huge variety of financial relations, there is not a single one that would not be associated with control over the formation and use of monetary funds.

With the help of finances, the state distributes the social product not only in physical form, but also in value. In this regard, it becomes possible and necessary to control the provision of cost and natural-material proportions in the process of expanded production.

Finances exercise control at all stages of creation, distribution and use of the social product and ND. Ruble control is carried out over production and non-production costs, the correspondence of these costs to income, the formation and use of fixed assets and working capital.

Control function object finance are financial indicators activities of enterprises, organizations.

Depending on the entities exercising financial control, there are:

¨ nationwide (non-departmental) financial control (carried out by state authorities and administration);

¨ internal financial control (carried out by the financial services of the enterprise);

¨ public financial control;

¨ independent financial control (carried out by auditors).

For example, the State financial control in the Russian Federation is carried out by the highest bodies of state power and administration - the Federal Assembly and its 2 chambers (the State Duma and the Federation Council). The Federal Assembly forms the Accounts Chamber as a permanent body of state financial control. The Accounts Chamber exercises control over the timely execution of income and expenditure items of the federal budget, the legality and timeliness of the movement of budget funds in the Central Bank of the Russian Federation and other financial and credit institutions of the Russian Federation.

At the regional level, financial control is exercised by both regional authorities and specially created control bodies.

Control over the state of the republican budget and its implementation is carried out by the Committee on Budget, Taxes, Banks and Finance of the State Duma of the Russian Federation.

The Ministry of Finance of the Russian Federation exercises control over the production and financial activities of enterprises, the timely provision of the federal budget with financial resources, and their rational use.

The task of monitoring the receipt, targeted and economical use of public funds is assigned to the bodies of the Federal Treasury of the Ministry of Finance of the Russian Federation. The main task of the Treasury is the organization, implementation and control over the execution of the republican budget and state extrabudgetary funds... The RF Ministry of Taxation also exercises effective control. Its main task is to monitor compliance with the legislation on taxes, the correctness of their calculation, completeness and timeliness of entering into the budgets.

Also, in addition to the types of financial control, there are also terms of execution of control

In terms of timing, financial control is divided into:

a) preliminary (carried out at the stage of drawing up, considering and approving financial plans, draft budgets. It is designed to prevent waste of material, labor and financial resources);

b) current (carried out in the process of fulfilling financial plans, its task is to timely control the correctness and expediency of the expenses incurred, the income received);

c) subsequent (organized in the form of checks and audits of the correctness, legality and expediency of financial transactions performed. Its main tasks are to identify shortcomings and omissions in the use of resources; compensation for damage; bringing to administrative and material responsibility of the guilty persons; taking measures to prevent further cases of violation of financial discipline).

For the emergence finance as a sphere of economic relations, the emergence and coincidence in time at a certain historical stage of a whole complex of conditions (or prerequisites) is necessary, such as:

• education and recognition of individuals for goods, services, land, etc .;
• the existing system of legal norms in terms of property relations;
• strengthening the state as an exponent of the interests of the whole society, acquiring the status of an owner by the state;
• the emergence of socially different groups of the population.

All these conditions arise under one common premise: a sufficiently high level of production, an increase in its efficiency, growth and their exceeding the limits necessary for biological survival.

The formation, distribution and use of cash income is the main condition for the emergence of finance.

Financial interests are the interests of the owners of cash income.

For the emergence of finance, a high level of development of the monetary economy is also required, a constant circulation of money on a large scale, the formation and use of the basic functions of money. Financeis the movement of cash income... Financial relations always affect property relations. These are not only monetary relations, but also property relations. The subject of economic relations must always be the owner. It is by distributing and using the monetary income, of which he is the owner, that each participant in economic relations can realize his interests.

Financial resources

Not a single serious economic or political decision can be implemented without a preliminary estimate of the amount of monetary income required for this. The distribution and accumulation of cash incomes become targeted. The concept of "financial resources" appears. As monetary income, accumulated and distributed for specific purposes, financial resources are used for various social, economic, scientific, cultural, political and other purposes (Fig. 18).

Financial resourcesis the accumulated income intended for specific needs.

Financial resources serve all stages of the movement of cash income from their formation to use.

Since finance is conditioned by the movement of cash income, the patterns of their movement affect finance. Income usually goes through three stages (stages) in its circulation (Fig. 19):

Finance, as we can see, is related to all stages of the formation, distribution and use of cash income. Primary income are formed as a result of the sale and distribution of proceeds from the sale of goods and services. Since the production process, as a rule, is continuous, it is necessary to allocate part of the proceeds at the stage of selling goods to ensure the continuity of the production process.

Primary income is formed as a result of expanded commodity production and is served by finance.

Primary distribution is the formation of primary income based on gross receipts.

Secondary distribution of monetary income (redistribution) can occur in several stages, that is, it is multiple in nature.

As can be seen from the schematic record of an abstract production process (Fig. 20), any production ends with the primary distribution of monetary income, without which further economic development... And the distribution of cash income ( D ") is serviced by finance. The allocation of financial resources for the expansion of production takes the following forms: payment of current material costs, depreciation of equipment, rent, interest on credit, remuneration of workers employed in this production. After the primary distribution of monetary income, the processes of redistribution begin, that is, the formation of secondary income. These are primarily taxes, contributions insurance funds, contributions to social, cultural and other organizations.

The last stage distribution and redistribution of income - their implementation. Realized income called final... Part of the final income may not be realized, but is directed towards savings and savings. Nevertheless, the following financial equality exists, which is not violated under any circumstances:

ΣA \u003d ΣB + ΣС,

• A - primary income;
• IN - final income;
• FROM - savings and savings.

The distribution process is influenced not only by finances, but also by prices.

Since the process of selling any goods (goods, services, etc.) into cash income is carried out at certain prices, then price dynamics has an independent impact on the distribution process. The more prices change (both upward and downward), the more fluctuations in money income. These shifts are especially dramatic in the context of inflation.

Financial resources, as part of monetary income, come in various forms. For the real sector of the economy (production) - this is a part of the profit, for the state budget - the entire amount of its income, for a family - all the income of its members, etc.

Financial resources - this is the part of the funds that can be used by their owner for any purpose at his discretion.

The process of allocation and redistribution of financial resources

Financial resources are offered on the market by a large number of economic entities and the population. It is clear that potential users (consumers) of these funds are not able to independently establish business relations with every economic entity, with every citizen. In this regard, the problem arises of combining disparate savings into significant amounts of financial resources that can be offered for use by a large potential investor.

This task is solved financial intermediaries (banks, investment and mutual funds, investment companies, savings associations and
etc.), which accumulate free resources, primarily of the population, and pay interest on these resources. The attracted resources are provided by financial intermediaries as loans or placed in securities. Their income is the difference between the percentage paid on the resources attracted and the percentage received on the resources provided.

The owners of savings can transfer their funds to investment companies, or they can directly purchase industrial corporations. But in the second case, they will face intermediaries - dealers and brokerswhich represent professional participants financial markets. Dealers carry out operations independently, on their own behalf; brokers act only on behalf of clients and on their behalf.

Timely financial market offers potential investors ample investment opportunities through the acquisition of monetary obligations of a wide range of economic entities. These monetary obligations are called financial instruments... These include:, IOUs, futures contracts, etc. Variety financial instruments allows owners of funds to diversify their investment portfolio, that is, to invest their savings in the liabilities of different companies and banks. These obligations will have different profitability, but also a different degree of riskiness. If any company goes bankrupt, investments in other companies will remain. The diversification of the investment portfolio is carried out according to the principle: "You cannot put all your eggs in one basket."

Financial relations as a sphere of economic activity

Financial relations - these are relations associated with the distribution, redistribution and use of monetary income.

The phenomenon of financial relations as a sphere of economic relations in society appears at the stage of distribution of primary income (Fig. 21).

Financial relations, arising in connection with monetary and servicing the circulation of monetary income, concern almost all individuals and legal entities. The main participants in financial relations are manufacturers of any product (real sector of the economy); budgetary and non-profit organizations; population, state, banks and special credit and financial institutions. In the course of its development, financial relations generate credit and exist with them in close relationship (Fig. 22).

Credit relations Is part of the financial relationship. Both are the result of monetary relations.

Credit relations arise in connection with the provision of one entity to another (physical and / or legal entities) money on terms urgency, repayment, payment.

The main difference between financial and credit relations is in the repayment of funds provided on the terms of urgency, repayment and payment.

Usually allocate three stages of income movement, reflecting the formation of primary, secondary and final income.

Primary income are formed as a result of distribution (works, services). The amount of proceeds is divided into a fund for reimbursement of material costs incurred in the production process (cost of raw materials and materials, equipment, rent), the employee and the owner of the means of production. Thus, the income of the owners is formed during the primary distribution. In addition, the following circumstance should be taken into account: indirect taxes included in primary income. Therefore, at this stage, government revenues are partially formed.

In the second stage, from primary income direct taxes, insurance payments are paid, and assistance is provided to the disabled. From the newly created funds, funds are paid, in particular from various levels of government, and funds are paid representing the expenses of workers in the non-material sphere, doctors, teachers, notaries, civil servants, military personnel, etc.

As a result of this process, a new income structure is formed. It is made up of secondary income generated in the course of the redistribution of primary income.

But doctors, teachers, employees, in turn, pay taxes and contribute insurance premiums... These taxes and contributions form the funds earmarked for certain payments. Tertiary income may be generated as a result of such payments. The chain of their formation is almost impossible to trace. The movement of these incomes is a very complex process.

The result of this process, its third final stage, is the formation of final income. They are used to purchase goods and services. A certain part of the income is saved.

The amount of primary income for a certain period is necessarily equal to the amount of final income plus savings. Distribution and redistribution of income means the formation of their new structure. Moreover, this structure reflects the economic relations (ties) between economic structures and the state.

At each stage of income generation, funds of money are formed, that is, finance. Consequently, it is finance that mediates the processes of distribution and redistribution of income.

The result of the functioning of the financial system is a changed structure of income.

Distribution process of added (newly created) cost through is shown in Fig. 1. As seen from fig. 1, as a result of the distribution of the primary incomes of owners (entrepreneurs and workers), incomes of workers in the non-material sphere are formed. However, it should be borne in mind that in reality, distribution processes are much more complicated than it is reflected in Fig. 1. Part of the income of workers in the material sphere is distributed in favor of workers in the non-material sphere directly through the consumption of the first services provided by the second. This is how the income of lawyers, notaries, security guards, etc. is formed. In turn, they pay taxes to the budgets that participate in the subsequent redistribution of income.

Finances as money relations arise at the stage of distribution. But they are the most important link in everything and have the strongest influence on him.

Control function

Control function consists in constant monitoring of the completeness, correctness and timeliness of receipt of income and implementation of expenses from all levels and. This function manifests itself in any financial transaction. All these operations should not only be economically feasible, but also not contradict the current legal regulations. The control function of finance is expressed in the formation of funds of funds (budgets and extra-budgetary funds) in accordance with the declared goals and according to the standards established by the legislative branch. This function involves not only monitoring the processes taking place in the financial sector, but their timely adjustment in accordance with the norms of the current legislation.

The practical expression of the control function of finance is the system. This control ensures the validity of the formation of revenues of the budgetary system and the expenditure of funds from budgets and off-budget funds. Financial control is subdivided into preliminary, current and subsequent... Preliminary control is carried out at the stage of forecast development budget revenues and expenses and preparation of draft budgets. Its purpose is to ensure that budget figures are correct. Ongoing control is responsible for the timeliness and completeness of the collection of planned revenues and targeted spending funds. Subsequent control is aimed at checking the reported data on.

Stimulating function

Stimulating function finance is associated with the impact on the processes occurring in the real economy. Thus, in the course of the formation of budget revenues, tax incentives for certain industries can be provided. The purpose of these incentives is to accelerate the growth of technically advanced products. In addition, the budgets provide for expenditures that can ensure the restructuring of the economy through financial support science intensive technologies and the most competitive industries.

Finance, understood in the broadest sense of the word, includes all monetary funds, including loan funds. Therefore, credit relationships are part of finance. Is the movement of the loan fund.

You can also define a loan as a system of economic relations regarding the transfer from one owner to another for temporary use of values \u200b\u200b(including money). Credit relations have their own specifics. The loan is associated with the transfer of funds for temporary use on the basis of repayment, urgency, payment, security. These conditions distinguish the credit relationship from other financial relationships.

Finance is an economic relationship associated with the accumulation, distribution and use of centralized and decentralized funds of funds in order to fulfill the state's functions and the task of providing conditions for expanded reproduction.

Consequently, the financial activity of the state is the activity of the state in the formation, distribution and use of centralized and decentralized funds of funds, ensuring its smooth functioning and development.

Centralized finance is understood as economic relations associated with the formation and use of funds of funds accumulated in the state budget system and government extra-budgetary funds.

In other words, centralized funds of funds, or centralized finance, include those funds of the state that come at its disposal as a ruling entity. These funds include: firstly, the funds accumulated in the state budget system; secondly, off-budget centralized funds of the state; thirdly, state insurance; fourthly, state, including bank, credit.

Decentralized finance is understood as monetary relations that mediate the circulation of funds of enterprises. That is, decentralized finance includes the finances of enterprises and organizations of all forms of ownership, formed both from their own resources and from budgetary allocations, as well as sectoral and intersectoral extra-budgetary funds.

Finance is an integral part of monetary relations, therefore, the role and importance of finance depend primarily on the place that monetary relations occupy in economic relations.

Finance is an economic instrument for the distribution and redistribution of gross domestic product (GDP) and national income, it is an instrument of control over the formation and use of funds.

the main thing destination finance - through the formation of monetary incomes and funds to provide not only the needs of the state and enterprises in monetary funds, but also control over the expenditure of financial resources.

Finance expresses monetary relations arising between the following entities:

1. enterprises in the process of acquiring inventory items, selling products and services;
2. enterprises and higher organizations in the creation of centralized funds of funds and their distribution;
3. the state and citizens when they make taxes and voluntary payments;
4. enterprises, citizens and extra-budgetary funds when making payments and receiving resources;
5. separate links of the budgetary system;
6. insurance organizations, enterprises and the population in the payment of insurance premiums and compensation for damage.

Finance also expresses monetary relations that mediate the circulation of enterprise funds.

The role of the state in the accumulation, regulation, distribution and use of centralized and decentralized funds especially increases in the transition period to a market system of management. As for centralized funds, in relation to them the state acts as a ruling subject and can provide its income through a compulsory system - taxes, duties, various fees, money emission, etc.

Another thing - decentralized funds... Regarding them government regulation expressed in a completely different way. And a completely different attitude should be towards the finances of private entrepreneurs, since private finances - their conditions and dynamics - are subject to the laws of a market economy.

Any financial activity of the state is associated with expenses and income. In the case when expenses exceed revenues, the state is forced to look for additional sources of funds to cover the necessary expenses - a bank or government loan, the issue of securities, etc. Therefore, it is the state of finances that reflects the processes taking place in the state, and not only in the field of economics and social processes, but in the spheres of politics, demography, ecology, etc.

No redistribution financial resources it is impossible to hold practically a single event in the state. In other words, holding any events in the state is associated with its financial activities. And that is precisely why the legal framework is needed that would regulate the conduct financial activities state, since it is carried out, naturally, in a legal form.

Without the participation of finance, the national income, which is the main material source of monetary income and funds, cannot be distributed. Taking into account the volumes of the national income and its individual parts - the consumption fund and the accumulation fund - the proportions of economic development and its structure are determined. Finance, affecting production, distribution and consumption, are objective.

As already mentioned, the state of finances reflects, determines the state of the country's economy.

The main condition for the growth of financial resources - increase in national income. Finance and financial resources are not identical concepts. By themselves, financial resources do not determine the essence of finance, do not reveal their internal content and public purpose. Finances largely depend on the financial policy of the state. The essence of finance is manifested in their functions. Let's name four functions of finance: distribution, control, regulatory and stabilization, and characterize each of them separately.

The main functions of finance are two: distribution and control, which are carried out by finance at the same time. And this is natural, since every financial transaction means the distribution of the social product and national income and control over this distribution.

Distribution function finance means their participation in the distribution of national income, which consists in the creation of the so-called basic, or primary, income. Their sum is equal to the national income. The main incomes are formed when the national income is distributed among the participants in material production and are divided into two groups:

1. wages of workers and employees, income of farmers, peasants;
2. income of enterprises in the sphere of material production.

Further redistribution of national income is associated with:

1. with intersectoral and territorial redistribution of funds in the interests of efficient and rational use of income and savings of enterprises and organizations;
2. with the presence of not only the production, but also the non-production sphere, in which the national income is not created (health care, education, social insurance and social security, governance);
3. with the redistribution of income between different social groups of the population. As a result, secondary or derivative incomes, incomes received in the sectors of the non-production sphere, taxes are formed.

Consequently, the redistribution of national income occurs between:

• production and non-production spheres of the national economy;
• branches of material production;
• individual regions of the country;
• forms of ownership;
• social groups of the population.

The ultimate goal of the distribution and redistribution of national income and GDP, accomplished with the help of finance, is the development of productive forces, the creation of market structures of the economy, the strengthening of the state, and the provision of a high standard of living for broad strata of the population. At the same time, the role of finance is subordinated to the tasks of increasing the material interest of collectives of enterprises and organizations, as well as workers in improving financial and economic activities, achieving high results at the lowest cost.

Control function... Finance, being a tool for the accumulation and use of monetary incomes and funds, objectively reflects the process of distribution and redistribution of national income and GDP in the corresponding funds, and controls their spending for their intended purpose.

Financial control during the transition to market relations is aimed at ensuring the dynamic development of public and private production, accelerating scientific and technological progress, improving the quality of work in all sectors of the national economy. Financial control covers both production and non-production areas. It covers the whole complex of those economic relations, on which the size of funds and the efficiency of their use depend.

Financial control - an important means of ensuring the legality of financial and economic activities. Designed to prevent financial and economic crimes, he stands guard over the inventory and funds of the state. Financial control is acquiring particular importance at the present time, when the tendency for the growth of "white-collar" economic crime is very clearly manifested.

Thus, financial control is the activity of state, municipal, public and other economic entities, regulated by the norms of law, to check the timeliness and accuracy of financial planning, the validity and completeness of the receipt of income in the relevant funds of funds, the correctness and efficiency of their use.

In other words, the most important task of financial control is to verify the exact observance of the legislation on financial matters, the timeliness and completeness of the fulfillment of financial obligations to budgetary system, 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 activities of financial authorities. The effectiveness of financial control carried out by various entities, in particular, state authorities, local governments, auditors, audit firms, to a large extent depends on their interaction, coordination of joint activities, as well as on cooperation with law enforcement agencies.

Regulating function finance is associated with government intervention through finance - government spending, taxes, government credit - in the reproduction process. The state influences the reproduction process through financing individual enterprises and industries, social activities and tax policy.

Stabilization function finance is to provide all business entities and citizens with stable economic and social conditions. This function should be performed by finance in the context of the transition and development of market relations.

The functions of finance are implemented through a financial mechanism, which includes a set of organizational forms of financial relations in the national economy, the procedure for the formation and use of centralized and decentralized funds of funds, methods of financial planning, forms of financial management and financial system, financial legislation. In this case, the factor of stability of financial legislation is of particular importance, since without this it is impossible to implement investment policy.

One of the important elements of the financial mechanism is financial planning, which primarily refers to budget planning.

In the Russian Federation, a promising financial plan is being developed based on the budget for this year... Its goals are as follows:

1. informing the legislative (representative) bodies about the expected medium-term trends in the development of the economy and social sphere;
2. complex forecasting financial implications developed reforms, programs, laws;
3. identifying the need for and the possibility of implementing promising financial policy measures;
4. tracking long-term negative trends for timely adoption of appropriate measures.

A forward-looking financial plan is being developed for three years:

• 1st year - the year for which the budget is drawn up;
• 2nd and 3rd years - the planning period, during which the real results of this economic policy can be traced.

Section 1. THEORETICAL BASIS OF FINANCE

TOPIC 1.1 ESSENCE AND CONTENT OF FINANCE

1 The concept and essence of finance, their signs

2 Basic functions of finance

3 The relationship of finance with other economic categories

4 Financial resources and sources of their formation

The concept and essence of finance, their signs

The emergence of finance is due to the emergence of the state, its development, and they mainly reflect the monetary relations between the state and business entities.

The need for the emergence of finance is due to a number of factors: the development of commodity-money exchange; by the action of the law of value that ensures the distribution of GDP; a gap in time between the processes of production and consumption.

In everyday life, finance is often equated with money. However, these are two different, albeit interrelated, concepts. Finance differs significantly from money both in content and in the functions performed.

Money is a special kind of product that stands out in the general mass of goods. Its peculiarity lies in the fact that it is essentially a universal equivalent by which the labor costs of commodity producers are measured.

Finance is an economic category that characterizes the process of formation and use of income, centralized and decentralized funds of funds.

The totality of monetary relations arising in connection with the formation and use of monetary funds form financial relations.

Finance is an economic instrument for the distribution and redistribution of gross domestic product (GDP) and national income, an instrument for controlling the formation and use of funds.

Finance is characterized by certain signs :

1) always perform in the shape of cash flows and are formed in the process of creation, accumulation and use of funds;

2) their material the basis is financial resourcesarising from the movement of input and output cash flows;

3) the ability of finance to meet the needs of the state or individual links of the economy depends on the level of efficiency of the economy and the rational organization of the financial mechanism;

4) the active nature of financial instruments is due to the economic interests of the whole society and its individual participants.

The main purpose of finance is to ensure the fulfillment of all functions of the state (defense of the country, protection of property, etc.) through the formation of monetary incomes and funds, as well as to monitor the expenditure of financial resources.

Based on the above, we can give the following definition of finance. Finance - this is a specific part of monetary relations associated with the formation, distribution and use of targeted funds of funds for performing the functions and tasks of the state and ensuring expanded reproduction

Basic functions of finance

According to many economists, finance has two functions: distribution and control.

Distribution function provides each link of the financial system with financial resources... It manifests itself in the distribution of national income, when in the process of distribution among the participants in social production, basic (primary) incomes are formed. They are divided into two groups: enterprise income and wages, and their sum is equal to the national income. Primary distribution is not enough for the successful functioning of the economy, therefore, further redistribution of national income between territories, industries, and various social groups of the population is necessary. This is done through taxes and mandatory contributions in accordance with the law. Through the distribution function, the cost of the consumed means of production is reimbursed, income generation, the formation of targeted budgetary and extra-budgetary funds, the maintenance and development of the social sphere; there is an intra-sectoral, inter-sectoral and inter-territorial redistribution of national income.

Objectsactions of the distribution function of finance are GDP, national income, depreciation deductions (in the case when enterprises transfer part amortization fund to innovation funds under ministries and departments), part of the country's national wealth. Subjectsin financial distribution are the state, legal and individualsat the disposal of which special purpose funds are formed and used. The main objectivesdistribution and redistribution of gross domestic product and national income are:

Uniform and effective development of all sectors of the national economy;

Strengthening the state, its, economy, defense capability;

Raising the social level of the country's population.

Control function of finance does not depend on the will and consciousness of people, has an objective character. The control function of finance serves the entire reproduction process of the sphere of material production, as well as the formation and use of the centralized fund of the state. The control function has a normative basis. The form of implementation of the control function is financial information that reflects such basic financial indicators as revenue, profit, profitability, liquidity, solvency, turnover and others. The control function is implemented in practice through the implementation of financial control through a special financial apparatus. Financial control covers the production of goods and services and is aimed at increasing economic incentives, rational and careful use of financial resources and natural resources, reducing unproductive expenses and losses, preventing mismanagement and waste.

In the economic literature, the number and content of finance functions are considered from different positions.

So S.V. Galitskaya in the textbook "Money, Credit, Finance" identifies distribution, control, regulatory and stimulating functions.

In the textbook "Finance Credit" edited by M.V. Romanovsky, two main functions are noted - the formation of monetary funds and the use of monetary funds (income), and the control function is not distinguished, since the author believes that the stability of the formation of income and the efficiency of their use should be ensured by the appropriate control organization.

Based on the essence and special features of finance, according to O. A. Puzankevich, it is advisable to single out the following three functions:

1) the accumulation of cash income;

2) distribution of cash income;

3) control over the efficiency of the use of monetary resources.

In order to distribute financial resources, they must first be accumulated, so that accumulation processshould be recognized as the primary function of finance, and its content and purpose is to determine the mechanism for generating income.