The role of finance in monetary relations. Finance. Financial system Distribution function of finance

Finance is an integral part of monetary relationships. Their significance is determined by the place of monetary relations in the economy, economic ties. Finance is primarily a distributive "category through which the distribution or redistribution of gross domestic product and national wealth. It is thanks to this quality of finance that the state and local government are provided with the necessary financial resources used in the form of monetary funds.

According to most researchers, "the term" finance "goes back to the medieval Latin words dnatyu, dpanaa resishapa, which were preceded by the Old Latin word ydo - to drive in, to drive in, and later - dsz, meaning the end, limit, border, ending (the mark was driven into the ground for separation of one piece of land from another.) The ancient Greek writer and historian Xenophon (about 430-355 BC) is considered the first author of a scientific and practical work on finance ("On the Income of the Athenian Republic").

Finance can be viewed in economic and material aspects. In the economic aspect, finance is economic relations associated with the formation, distribution and use of centralized and decentralized funds money in order to fulfill their own functions and tasks of the state or local self-government, as well as the delegated powers of the state and ensure conditions for expanded reproduction, in the process

"See: VG Chantladze. Problems of the theory of finance. Tbilisi," 979. S. "07; Voronova L. K., Martyanov I. V. Soviet financial law. Kiev," 983. S. 3; Gracheva E. Yu., Kufakova N. A., Pepelyaev S. G. Financial law of Russia. M, "995. S. 6; Finance / Ed. By V. M. Rodionova. M.," 993. P. 7.

all of which are the distribution and redistribution of gross domestic product and control over the satisfaction of the needs of the community.

In the material aspect, finance is the monetary funds of the state, state-territorial and municipalities, enterprises, institutions, organizations used to materially meet the needs of society and the development of production. The totality of these funds of funds is financial resources state.

Finance as an economic category functions within the framework of monetary relations. But not all money relations should be equated with finances. The content of finance includes only those monetary relations that have a specific financial form of value movement associated with the distribution of monetary income and savings, the formation and use of certain funds of monetary resources. The most important distinguishing feature of financial relations is the mandatory participation of the state in them. All other types of monetary relations go beyond financial relations and are regulated by other branches of law. For example, the sale of manufactured products by an enterprise will not be included in the sphere of finance, these relations are of a civil nature, although they are mediated by money. However, the payment of taxes, the objects of which arise as a result of a sale and purchase transaction by an enterprise, is included in financial relations.

Financial relations differ from monetary ones also in terms of equivalence. The movement of money in most cases is accompanied by a counter movement of goods, works or services, that is, monetary relations are of an equivalent nature. Finances are not intended to create reciprocal satisfaction, their movement is not in the nature of compensation. The only exception is financial relations present credit relationsarising, in particular, in the acquisition of government securities. According to the Constitution of the Russian Federation (Part 4 of Art. 75), relations in the field of state credit are based on the principle of voluntariness for a private entity in their entry, therefore, the purchase of securities issued by the state is aimed at obtaining a cash equivalent.

Finance, thus, is a monetary relationship in which one of the participants is necessarily the state. Financial relations include only those monetary relations, the presence of which is due to the existence of the state as a governing body.

The essence of state and municipal finance, the patterns of their development, the scope of commodity-money relations covered by them and their role in the process of social reproduction are determined by the economic structure of society, the nature and functions of the state and local government.

As a historical category, finance appears at the time of the stratification of society into classes, and municipal finance - simultaneously with the emergence of local self-government. Fixed assets of the state and local government are concentrated in the respective budgets. The reason that gives rise to the emergence of finance is the needs of the state or municipal formation in the resources that ensure their activities. This resource demand without finance cannot be satisfied either in the economic sphere, or in the sphere of state or municipal administration, or in the sphere of fulfilling delegated state powers.

The modern state is the result of a long evolution, during which the conditions, forms and methods of its impact on the economy have constantly changed. In a market economy, the state is assigned a very important role, since the market, like any economic system, is not a perfect mechanism. It has both positive and negative sides, which makes it necessary for the state to develop its own management mechanism, which would prevent destructive consequences in the financial sphere. The period of formation of market relations is characterized by a significant decentralization of financial resources. Due to the fact that the state has a management function in society, a special group of monetary relations is formed that arises outside the production sphere - state (public) finance. These relations form the monetary funds necessary for the functioning of the state as a whole and its individual organs. The economy cannot function without state (public) finances, since at any stage of the historical development of society there are always such needs that only the state must finance. These are general-purpose infrastructure (for example, post, transport, telegraph), nuclear energy, space exploration, investment in the most priority sectors of the economy, etc.

In the sphere of management, the availability of finance ensures the satisfaction of the constantly increasing and changing reproductive needs. Finance is applicable because it allows you to adjust (transform) the proportions of production to the needs of consumption.

Thanks to economic essence finances give the initial impetus to the distribution of profits, income, and in some cases and fixed capital in favor of the state or in accordance with its interests. Through finances, the state accumulates its wealth. State savings are formed in the form financial reserves, gold and foreign exchange reserves, insurance funds, bank capital, etc. Such accumulations serve not only as an important stabilizer of economic relations and a guarantor of the state's economic sovereignty, but also as a regulator of production, as well as inflationary processes.

With the help of finance, regulation of the scale of social production, the maintenance and development of the non-production sphere, ensuring the functioning of the state infrastructure are achieved, other functions of the state are implemented. However, the fact that a part of financial relations is conditioned by the existence of the state or local self-government does not yet give grounds to consider the activities of state or municipal bodies as the cause of finance. The emergence and withering away of financial relations does not occur at the will of state or municipal authorities. Finances exist objectively, since they are conditioned by the development of the local community and, through it, by the development of the state as a whole. State and municipal bodies should only take into account the objective necessity of financial relations, developing the most acceptable forms of their use: form a budget, introduce or cancel any types of obligatory payments, change the forms of using financial relations, etc. The lack of consideration of the objective laws of the movement of finance leads to negative processes - inflation, unemployment, financial and legal conflicts, economic stagnation, etc.

Financial relations are based on the needs of the state or local community, and are not generated by the activities of state or municipal bodies. Finance expresses a certain area of \u200b\u200bindustrial relations and belongs to the basic category. But although finances belong to the basic category, they largely depend on the policy of the state and local government, their financial activities. The authorities are known to belong to the superstructure category. The dialectic of the relationship between the base and the superstructure lies precisely in the fact that only social and economic reasons give rise to the need for the emergence of new financial relations, and the state and local government give them legal formalization and implement them.

Consequently, finance is a system of monetary relations regarding the accumulation, distribution and use of funds of funds in order to materially support the performance of state functions and tasks.

always develops in relation to money or monetary equivalent;

due to the managerial role of the state; is a form of redistributive relations in the sphere of the aggregate social product.

These signs only in unity characterize the essence of state (public) finance. The absence of any of them will not allow considering any monetary relationship as financial.

The federal nature of the Russian state determines the existence of its own functions, goals and objectives both for the entire state as a whole and for the subjects Russian Federation... The implementation of the competence of each subject of the Russian Federation presupposes the availability of appropriate regional finance.

The finances of a constituent entity of the Russian Federation are economic relations associated with the accumulation, distribution and use of centralized and decentralized funds of funds of a constituent entity of the Russian Federation in order to fulfill its functions and tasks, as well as to ensure conditions for expanded reproduction, in the process of which the distribution and redistribution of gross domestic product and control over the satisfaction of public needs within the boundaries of the respective region.

The recognition of local self-government in Russia and the guarantee of the independence of its financial activities make it possible to single out a special category in the system of public finance - the finance of municipalities. Finances of municipalities are economic relations associated with the accumulation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions and tasks of local self-government, as well as delegated powers of the state and to ensure conditions for expanded reproduction, in the process of which distribution and redistribution occurs. gross domestic product and control over meeting the needs of the community within the boundaries of the municipality.

Federal Law No. 126-FZ of September 25, 1997 “On the financial foundations of local self-government in the Russian Federation” defines local finance as a set of funds generated and used to resolve issues of local importance. Local finances include local budget funds, state and municipal securities owned by local governments, and others financial resources (Clause 1, Article 2).

Despite the relative independence of the finances of the constituent entities of the Russian Federation and the finances of municipalities, within the borders of the entire state, public finances are a single category, which is confirmed by the following aspects:

the federal structure of Russia combined with the independence of local self-government;

the unity of the monetary system, economic, financial and customs policy;

the unity of state and municipal systems of management and regulation of the financial and credit sphere.

At the state level, funds are mobilized in the budgetary system, in extra-budgetary funds, in the insurance and credit spheres. Of great importance are the finances of enterprises, institutions, organizations of all forms of ownership, with the help of which the majority of monetary funds are circulated in the state.

Thus, finance functions in two main forms:

economic monetary relations associated with the accumulation, distribution and use of centralized monetary funds of the state and municipalities;

economic relations serving the circulation of de-centralized monetary funds of enterprises, institutions, organizations.

The essence of finance is manifested in their functions - the formation of monetary funds of the state and local government and the use of funds in the public interest.

The accumulation of funds means the creation of a financial and legal mechanism by the state aimed at accumulating funds in its favor. The fulfillment by the state of its functions and tasks requires material support, which explains the right of the state to demand from other subjects the deduction of a share of their private property to the treasury income. The state is not a productive instrument, therefore it is forced to enter into financial relations at the stage of their distribution in order to redistribute part of the income of citizens or the profits of enterprises and direct the funds thus obtained to specially formed funds. No state has any other way of forming its monetary funds, except for finance. The formation of funds is carried out by various methods, the main of which is taxes.

The use of funds means the direction of state funds for the implementation of public events. Through material support, the state exercises leadership of society, allocating funds to balance the standard of living in territorial entities, implementing budget regulation, financing ministries, departments, providing budget loans to non-state legal entities etc. The use of monetary funds reflects the redistributive nature of finance, that is, the possibility of their secondary movement from the state to other subjects - recipients budget funds or creditors.

Taken together, the functions of finance reflect their social purpose. They are not characteristic of any other economic and legal category. The formation and use of monetary funds express the main features of finance, allow them to be distinguished from adjacent monetary relations. The importance of finance in the mechanism of ensuring economic sovereignty has determined the guarantee of the functions of finance by the coercive power of the state.

The practical application of finance allows the state to implement other public functions. State execution through use financial instruments "Non-financial" functions reflects the role of finance, that is, the results of their practical use. The role of finance is expressed in the possibility of regulating social relations and exercising control over these relations.

Through the use of finance, the state regulates the economy, influences social and political processes. The function of the regulator is associated with the intervention of the state through finances (government spending, taxes, government credit) in the reproduction process. In order to regulate the economy and social relations, financial and budget planning, state regulation of the securities market are used. The regulatory role of finance is expressed in the creation by the state of stable conditions of economic and social relations for all economic entities.

The forms of state regulation are varied and depend on many factors: the level of development of industrial relations in society, its political stability, the need for funds, the size of the public debt, the degree of compliance with financial legislation, etc.

Financial legislation should play a primary role in ensuring the regulatory function of the state. The legal regulation of pricing can be used as financial regulators - the establishment of marginal prices for goods and services by the norms of laws, regulation of super-profits by monopolies, financing of industries, etc.

Finance helps the state to carry out the control function. Public finance, expressed in monetary form, has the property of reflecting the reproduction process as a whole and its individual phases through financial resources and funds, that is, to show its quantitative side. The ability of finance to quantitatively display the course of the reproduction process allows you to systematically control the accumulation, distribution and use of funds of financial resources, which is expressed in the control function, namely financial control. One of the important tasks of financial control is to check the exact observance of the 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, institutions and organizations for settlements and payments.

The practical role of finance in the implementation of the control function is manifested in the activities of financial authorities. The results of the practical implementation of finance in the form of regulation of public relations and control over their implementation are a form of expression of the financial policy of the state.

The lecture notes meet the requirements of the State Educational Standard of Higher Professional Education. The accessibility and brevity of the presentation allow you to quickly and easily gain basic knowledge of the subject, prepare and successfully pass the test and exam. The content, functions, socio-economic essence of finance, the monetary system of Russia, the importance of the budget in the development of the economy and social sphere, the current state of off-budget redistribution of financial resources, as well as the finances of business entities, and much more are considered. For students of economic universities and colleges, as well as those who independently study this subject.

LECTURE No. 1

The essence and functions of finance

1. The emergence of finance

Finance appeared simultaneously with the emergence of the state kingdom with the stratification of society into classes. With the disintegration of feudalism and the development in its depths of the capitalist mode of production, the monetary incomes and expenditures of the state began to acquire increasing importance.

In the early stages of state development, there was no distinction between the resources of the state and the resources of its head.

With the allocation of the state treasury and its complete separation from the property of the monarch (XVI-XVII centuries), the concepts of state finance, state budget, and state credit emerged.

Public finance served as a powerful lever for the initial accumulation of capital.

State loans and taxes were widely used to create the first capitalist enterprises. An important role in the creation of initial capital belonged to the system of projectionism, which allowed the first capitalists to set high prices for manufactured goods and receive high profits, which were largely directed to expanding production.

Under capitalism, when commodity-money relations acquire an all-embracing character, finance expresses economic relations in connection with the formation, distribution and use of funds of funds in the process of distribution and redistribution of national income.

The fixed assets of the capitalist states began to be concentrated in the state budget.

The public finances of the capitalist countries are characterized by a rapid increase in spending, which is primarily due to the intensification of the militarization of the economy. Military goals, the repayment of public debt and interest on it accounted for more than 2/3 of all public spending. Huge funds were spent on the maintenance of the state apparatus - parliament, ministries, departments, police, prisons, etc. The costs of education and health care were extremely low. The main source of income was taxes.

By the beginning of the XX century. the state began to participate in the process of production, distribution and use of the social product.

The democratization of public life in a developed market economy has led to the fact that in a number of small countries of Western Europe (Sweden, Norway, etc.), social spending has become one of the main ones. Hence the concept of the "Swedish model of socialism" arose.

State intervention in the economy has developed significantly. It began to actively help the monopolies of its country in the intense competition in the world market by providing export firms with so-called export bonuses.

Intervention in the process of reproduction and the sphere of social relations is carried out not only at the national, but also at the interstate level.

Interstate funds have been created to finance agriculture, overcome unemployment, retrain and relocate work force, overcoming significant disparities in the development of individual regions.

New government spending has emerged: for protection environment, overcoming the economic backwardness of certain regions, providing subsidies and loans to developing countries.

Huge expenditures necessitate tax increases - the main financial method of mobilizing resources for state and local budgets.

However, despite the increase in taxes, the accumulated revenues are not enough to cover the ever-increasing expenses of the state.

The budgets of all countries are characterized by large chronic deficits, covered by government loans, the release of which entails an increase in government debt.

2. The essence of finance

Finance as a scientific concept is usually associated with various forms of processes that manifest themselves in public life and are necessarily accompanied by the movement of funds (distribution of profits, transfer of tax payments, making extra-budgetary and charitable payments).

Cash flow alone does not reveal the nature of finance. To comprehend it, it is necessary to identify those general properties that characterize the internal nature of all financial phenomena - the relationship between various participants in social production.

Finance, expressing production relations that actually exist in society, which have an objective nature and a specific social purpose, act as an economic category.

An important feature of finance is the monetary nature of financial relations. Money is a prerequisite existence of finance.

The next feature of finance as an economic category is the distributive nature of financial relations.

The distribution and redistribution of value with the help of finance is necessarily accompanied by the movement of funds that take a specific form of financial resources, which are formed from business entities and the state at the expense of various types of monetary income, deductions and receipts, and are used for expanded reproduction, material incentives for workers, meeting various needs society.

Potentially financial resources are formed at the production stage, when new value is created and the old one is transferred. In reality, the formation of financial resources begins only at the stage of distribution, when the cost is realized and the specific economic forms of the realized value are isolated as part of the proceeds.

The use of financial resources is carried out mainly through special purpose financial funds.

Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources. This is an important specific feature of finance that distinguishes it from other distribution categories.

So, finance is monetary relations that arise in the process of distribution and redistribution of the value of the gross social product and part of the national wealth in connection with the formation of monetary income and savings from business entities and the state and their use for expanded reproduction, material incentives, satisfaction of social and other needs of society.

3. Functions of finance

The essence of finance is manifested in their functions. Finance has two main functions: distribution and control. These functions are carried out by finance at the same time. Each financial transaction means the distribution of the social product and the national income and control over this distribution.

When the so-called basic or primary income is created, the distribution function is manifested. The amount of income 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, employees, income of farmers, peasants employed in the sphere of material production;

2) income of enterprises in the sphere of material production. Primary income does not form public money

funds sufficient for the development of priority sectors of the national economy, ensuring the country's defense capability, meeting the material and cultural needs of the population. Further distribution or redistribution of national income is needed.

The redistribution of national income is associated 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 production non-production sphere, in which the national income is not created (education, health care, social insurance and security, management); redistribution of income between different social groups of the population.

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

Income generated in the course of redistribution must ensure consistency between material and financial resources and, above all, between the size of monetary funds and their structure, on the one hand, and the volume and structure of means of production and consumer goods, on the other.

The control function is manifested in the control over the distribution of the gross domestic product in the corresponding funds and their spending for the intended purpose.

One of the important tasks of financial control is to check compliance with financial legislation, timely and complete fulfillment of financial obligations to the budget system, tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments.

Distribution and control functions of finance are implemented through the financial mechanism, which is part of the economic mechanism. The financial mechanism includes a set of 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.

Finance, participating in the distribution of value, is closely related and interacts with categories such as price, wage, credit.

In order for the process of formation and distribution of various forms of cash income and savings to begin, the value formed in production must be realized. The economic instrument through which the value of a product receives monetary expression and becomes an object of distribution is price.

As a quantitative measure of value created in production, its monetary expression, price predetermines the proportions of future value distribution, but it itself cannot provide either distribution among the subjects of ownership, or functional separation of different parts of value. This is isolated at the exchange stage with the help of finance and wages. It is thanks to them that in the process of primary distribution, various types of cash income, savings and deductions are formed.

Wages as a form of distribution are due to the need to generate income for specific workers. As an economic category, wages expresses the value relations arising from the division of the newly created value when creating individual incomes that go to workers depending on the quality and quantity of labor expended.

Finances are at the disposal of business entities and the state and are intended to meet various social needs. But they are closely related: on the one hand, finances contribute to the formation of the wage fund, on the other hand, wages, the accrual of which does not coincide with the payment in time, acts as a source of creation of a part of the enterprise's financial resources, taking the form of stable liabilities.

Being in the turnover of the enterprise between accrual and payment, wages are the source of the formation of working capital.

Credit also participates in the value distribution. Finance and credit have one economic basis, but unlike finance, credit operates on terms of repayment and payment.

The main objects of the complex impact of finance and credit on the reproduction process are fixed assets and working capital.

Based on the relationship of finance with the most important economic categories, it is necessary to attach particular importance to the issues financial management, that is, the most effective management of financial resources.

5. Financial management

In economically developed countries, the greatest impact on the finances of enterprises is exerted by: the internationalization of economic life, the globalization of business operations and the expansion of computer technology.

Computer and telecommunications technologies are dramatically changing the financial decision-making process. The parent companies are provided with a system of personal computers connected by a local network, with the computers of suppliers and boarders. This allows the financial manager to constantly be aware of all the information and make the most rational decisions.

The main tasks of financial management:

1) maximization of real assets and liabilities of enterprises;

2) forecasting the financial side of enterprises. Business plans are drawn up for the volume of production, sales of products, profits, capital investments, the introduction of new management solutions and financial resources to ensure them;

3) making appropriate decisions when investing large funds (optimal growth rates of sales volume, structure of attracted funds, methods of their mobilization, etc.);

4) coordination of financial activities of enterprises with other services (bank, tax department, etc.);

5) conducting large operations in the financial market for

mobilization of additional capital.

Financial management is also of great importance for public finance, including budget system and extrabudgetary funds.

Due to the transition to market relations there is a tendency for significant decentralization of financial resources. Development extrabudgetary funds leads to dispersal of funds, does not allow their mobile use, concentration on priority areas of economic development, weakens control over spending public funds... Therefore, it is necessary to pay special attention to the development of financial management, on the basis of which financial policy should be built.

6. Financial policy

The main task of financial policy is to provide appropriate financial resources for the implementation of a particular program of economic and social development. Financial policy is a set of government measures aimed at mobilizing financial resources, their distribution and use for the government to perform its functions.

Financial policy is an independent sphere of government activity in the field of financial relations. It includes three main elements:

1) defining and setting the main goals and specifying further and immediate tasks that need to be solved in order to achieve the set goals for a certain period;

2) the development of methods, means and forms of organization of relations, in which these goals are achieved in as soon as possible, and the nearest and future tasks are solved in an optimal way;

3) selection and placement of personnel capable of solving the assigned tasks, organizing their implementation. Financial policy is assessed according to how it corresponds to the interests of society and how it contributes to the achievement of the set goals and the solution of specific tasks.

To define and shape financial policy, reliable information is needed about financial situation the state, its financial potential, that is, the objective capabilities of the state.

During the period of evolutionary development of social life and a stable state structure, the internal and external financial policies of the state solve one main problem - ensuring the preservation and strengthening of the system of social relations existing in the given state. During the period of revolutionary changes, political forces pursue a policy aimed at destroying the existing system and forming a new system of social relations.

The role of financial policy at critical moments in life can hardly be overestimated, since, first of all, there is a radical redistribution of financial resources.

The primary tasks facing the modern financial policy of the Russian state are the fight against inflation, overcoming the decline in production, and increasing social protection of the population.

Finance- a synonym for funds (cash and non-cash), as well as relations associated with their movement and use. Finance, translated from French "finances" means "money". In the scientific literature, finance is understood as the union of all economic ties that arise in the process of the emergence, distribution, redistribution and use of cash flows, both by central funds and decentralized ones, which often act as the state treasury (budget). Thus, finance is an important link in the formation of the state structure. The essence and functions of finance will be described in more detail in this text.

Western scientific and educational literature treats finance in a fairly wide semantic range. Specificity is manifested in a variety of financial relations, as an integral part of finance, which can be public (public), corporate, or personal. Thus, public finance covers processes and mechanisms, including the accumulation and spending of the state's monetary wealth, balance, and monitoring methods.

As for corporate finance, which is equivalent to financial and managerial management and business management, they imply the art of money management, science - studying in higher education. Basically, we are talking about literature that serves as a base for teaching students of higher educational institutions.

In addition, the term "finance" can mean an economic discipline that analyzes economic activities in different areas socio-cultural, legal and economic space. Here we are already talking about research institutes working for the government.

In human understanding, finance is, first of all, money that has a certain value. Money can be exchanged for other money or a part of the surplus value can be received in the form of a product (service).

Finance functions

Cash performs special functions such as:

• formative;
• controlling;
• regulatory;
• stabilization;
• fiscal;
• stimulating.

The distributive function is understood as the dissolution of the country, for the subsequent formation of state budgets of different levels.

The controlling function of money allows monitoring cash flows, as well as spending money from the treasury for essential needs (health care, construction of sports facilities).

Through the regulatory function, an impact is made on segments of economic relations through taxes and the issuance of government loans.

The stabilizing function provides the citizens of the country with the necessary conditions for the formation of social, cultural and economic freedom.

Fiscal and incentive functions are aimed at combating other regressive factors like stagnation, and so on.

Financial management

Financial management implies stable events during which there is a redistribution and distribution of monetary assets among all participants economic activity... This also includes actions that increase the economic return from the use of monetary resources.

Following the theory of money resources management, it is possible to distinguish the components of relations, as, on the one hand, objects and, on the other hand, subjects (special services) of management, as well as methods and forms of management, etc.

The apparatus of management of monetary resources consists of subjects of executive (Ministry of Finance, tax organization, customs service) and legislative (President and Government of the Russian Federation) power.

The level of participants in the economic and economic activities of the management apparatus is determined by some forms considered in the plane of organization and law.

Public finance

Public finance is represented by a special formation of the totality of financial and economic relations and the distribution of cash flows, the use of which helps the state to implement a number of strategically important projects.

Public finances perform certain functions, including:

• distributing;
• controlling;
• regulatory.

The structure of the state treasury (budget) includes:

• federal budget;
• the budget of the constituent entities of the Russian Federation;
• extrabudgetary funds.

Government finance also includes government loans, the tax system, tax receipts to the treasury and various funds, and the system of budgetary regulation.

Distribution function of finance

Finance, in addition to its secondary functions, have two main ones - distributing and controlling. Distribution function of finance allows to form the state treasury of the country through the redistribution of national wealth.

The distribution and redistribution of state accumulation is carried out through the budgetary sphere. In addition, the financial and insurance markets are involved in the redistribution.

In addition, one of the instruments for the redistribution of the state's national wealth may be past savings, profits from foreign economic activity, and loans.

Signs of finance

Financial relationships express some of the hallmarks of finance. So, the basis of finance is always perceived as money that can be exchanged for a product or service. In addition, the directly released product and services provided by someone are included in financial relations. In addition, finance has signs of distributing state wealth and managing the country's financial flows.

Superficial treatment of finance and the concept of finance manifests itself in the movement of money. Operations in the financial sector are associated with the transfer of money from one entity to another, as well as with their targeting. Thus, the main difference between finance and other economic concepts lies in their monetary form (value), which is in constant motion and depends on many economic and political factors.

In addition to the movement of cash resources, finance manifests itself in its distribution function, when money from the budget is directed to social and state needs of the first necessity.

The distribution value of GDP is not only finance, but also salaries, prices, loans, etc. The listed categories of economic activity have some features that manifest themselves in a specific purpose.

From financial relations, part of the savings is separated in the form of total and net income (profit). Such processes of distribution and redistribution of GDP generate special types of monetary resources. The peculiarity is that cash flows are formed as a result of the isolation of monetary savings, with subsequent use for the targeted needs of state and non-budgetary funds and organizations.

As a result, it turns out that the distribution and redistribution of GDP is associated with the movement of cash flow (resources) in the form of profit, tax deductions, receipts and savings. And this, in turn, forms a specific feature of finance, which consists in the accumulation, separation and targeted spending public money.

Decentralized finance

Decentralized finance is represented by the forms of monetary relations between all participants in economic activity, where funds formed outside the borders of the state in general and urban areas in particular are used as money. Decentralized monetary relations act as a kind of basis in the financial system, prevailing in state finances.

The concept of decentralized finance includes financial savings of all subjects of financial and economic activity.

Centralized finance

Centralized finance is a system that generates and spends financial flows for the permanent work of all government bodies. Centralized finance refers to the budget system.

Centralized finance gives rise to public finance that is managed by various government agencies.

Local finance

The share of local money in the financial system reaches 70%, which depends on the state structure. So, the more developed a country is, the greater is the share of local money savings and related relations, which stimulates the work of local authorities.

Today, there is a steady growth in local finance, which speaks volumes about the importance of local government. But economic freedom is still limited for local authorities, which are forced to constantly coordinate their actions with the supreme government, which generates a certain bureaucratic delay.

An integral part of local finances are local budgets, special purpose funds, as well as money from city enterprises.

The structure of the local budget is no different from the central budget. Includes both revenues and expenses of local authorities. Their actions extend to the administrative territory of the body that receives them.

The formation of the revenues of the local budget is carried out at the expense of taxes of all business entities, as well as some part of the income of state-owned companies, subsidies and subsidies to the centralized budget, municipal loans and other sources.

One of the forms of local finance - taxes, is classified into some of the constituent parts that form the local treasury, which, for example, includes many local taxes.

Another component of local taxes determines the state tax system itself. So, some taxes are used to replenish the local treasury. Others form the income tax, which significantly replenish the state treasury.

Withholding taxes on gifts and inheritance, for the implementation of trade and the issuance of special licenses, are directed to the local budget.

Local self-government bodies, receiving capital real estate, fixed and circulating assets at full disposal, generate additional revenues to the local budget. For example, land, municipal pools and roads can be leased. In addition, the local budget is replenished through various levies.

In many countries of the world, a significant percentage of budget replenishment is represented by utility bills, as well as payments for public transport.

However, it is still beyond the power to finance many government programs. State subsidies and subventions allocated from the local treasury are received as assistance. Such actions are referred to as subsidies.

Local budgets are quite independent, but they constantly have to pay attention to the decisions made by the government. Otherwise, if you are guided by actions in the blind, you can lose the lion's share of grants and subsidies, which will negatively affect the economic and investment climate of the region. And this is already fraught with the precarious position of the local authorities themselves.

Lack of money from the local treasury forces local authorities to find other ways to finance their projects. In addition to subsidizing and subsidizing the local budget, the practice of obtaining credits and loans is widespread.

The main type of loan is municipal securities (bonds) entering the stock market. All transactions in the stock market are strictly controlled by the government. This is due to the fact that manipulations in the stock market affect the value money circulation, which often leads to inflationary surges.

As in the case of financing local projects, the issuance of bonds is strictly controlled by the supreme government, which sets a limit for the issued securities. In this case, the validity of bonds can be up to sixty years. The longer the term, the more profitable the state. Placement among buyers can take place outside the administrative boundaries.

Financial authorities

The main governing body for finance in the Russian Federation is the Federal Assembly, the Government of the Russian Federation and the President of the Russian Federation. It is these bodies that make the main decision on budget approval and reporting of the targeted use of public funds.

The state machine for financial management includes the following bodies:

• the committee on the budget, taxes, banks and money of the executive and legislative branches;
• the accounting chamber;
• Ministry of Finance;
• Central bank;
• State Tax Service;
• commission for supervision of the securities market;
• Ministry of Property.

The key financial management body - conducts forecasting of the budget security with cash and gold and foreign exchange reserves, both in the short and long term.

Also, the Ministry of Finance is working to improve legislation in the field of taxes: development of projects, analysis of the impact of the current tax system on replenishment of the revenue side of the treasury.

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The study of financial law, which is one of the basic basic legal disciplines, should traditionally begin with an examination of its foundations, which correspond to the General part of financial law.

So, the General part of financial law includes the rules governing general principles, legal forms and methods of financial activity of a public entity (state, municipalities), powers of state and local authorities in the field of financial activity, financial legal personality of other participants in financial legal relations.

The general part of financial law is also represented by the norms governing the foundations of financial control, responsibility for violation of financial legislation and accounting in the field of financial activities, since these relations mediate various processes of accumulation, redistribution and use of the entire spectrum of funds in our state.

The general part of financial law also includes the rules governing monetary relations in the country, since the functioning of the financial system (represented in the material sense as a set of funds of funds) is ensured by the movement of cash, non-cash payments (i.e. money circulation), a significant influence on which today they provide foreign currency and relations in the field of currency regulation, respectively.

Without relations in the field of money circulation and accounting for the money supply, the financial system would be a frozen structure. At the same time, in order to maintain financial discipline at all stages of financial activity, financial control measures are implemented and, in the event of financial violations, measures of responsibility for violation of financial legislation are applied.

Economic foundations of financial law

Finance and financial relations

Finance is the basic category of economics. Any category is considered in two ways: from the point of view of content and form. In terms of content, finance is a relationship regarding the formation, distribution and use of funds; and in form, it is the country's aggregate monetary fund, which is accumulated, redistributed and used by a public entity to implement its functions and tasks.

It is obvious that the form of a category is determined by its content. In this regard, let us first of all consider the content of the category "finance", namely, financial relations and their interrelation and interdependence with economic relations. Let us immediately draw attention to the fact that it is financial relations that are the subject of financial law1.

There is no doubt that basic economic relations are an objective substance, and spontaneous processes in this area do not always meet state interests.

The point is that objective economic relations most often mediate private interests. For example, the basic law of a market economy is the law of value, which is interpreted as a spontaneous regulator of social production. Indeed, based on the law of value in the market, there is a tendency of spontaneous redistribution of capital from the least profitable (unprofitable) sectors of the economy to the most profitable (profitable), which meets the private interests of investors. At the same time, this kind of tendency comes into inevitable contradiction with the public interest of the state, which is interested not in the development of super-profitable sectors of the economy that bring super-profits to individuals, but in maintaining the structural balance and balance of the country's economic state. The most vulnerable (unprofitable) areas include, for example, socially significant areas - health, education, science, culture, as well as areas on which the sovereignty of the state depends - defense, fundamental scientific research (in the field of space, etc.).

It is the process of implementation and protection of public interest that is a prerequisite and basis for financial relations, in which one of the parties (directly or indirectly) is the state as a powerful subject organizing spontaneous economic processes in the direction necessary for society. The state, actively using the financial mechanisms inherent in a market economy, legislates the rules of conduct aimed at combining public and private interests in one of the most sensitive spheres of human activity, which has received the name in the science of financial law " financial activities"It is no coincidence that the essence of finance, the laws of their development, the sphere of commodity-money relations covered by them and the role in the process of social reproduction are determined both by the economic structure of society and by the nature and functions of the state.

So, financial relations are economic relations characteristic of a higher stage of development of society. Financial relations, being special economic relations (derived from them), have a number of features in comparison with other economic relations. It:

• - monetary relations;
• - distribution (redistribution) relations;
• - relations related to the distribution and use of funds of the state and economic entities;
• - relations in which there is an imperative will of the powerful subject.

Thus, economic and financial relations are related as a whole and a part, since all financial relations are economic, but not all economic relations can be considered as financial. Economic relations are transformed into financial ones only when a public interest arises, which is carried out by a powerful subject who implements his financial policy, and monetary relations arise, accompanied by procedures for accounting for funds.

At the same time, the content of financial relations directly depends on the content of economic relations, reflecting the degree of development of the productive forces in the country. Consequently, we observe a direct interdependence and interdependence between the content of economic and financial relations.

So, the first (economic relations) arise at earlier stages of the history of mankind, since they are already seen in the process of production of natural products that do not involve distribution or exchange, especially in monetary form (commodity-money exchange).

The second (financial relations) arise as redistributive, firstly, in the presence of a developed commodity-money circulation, and secondly, in the event of the emergence of certain isolated trust funds of monetary funds, which assume both the coverage of direct government expenditures, as well as the costs associated with the implementation public interest of the state.

If we consider the historical process in development, then as the formation and strengthening of statehood, more and more elements of financial relations are observed in the economic activity of the country. Therefore, we can say that in a modern society with a developed economy, a certain conglomerate of financial and economic relations is emerging.

• - objective economic relations characterizing the degree of development of the productive forces in the country;
• - conducted by the state financial policy embodied in the law, which directly affects the dynamics of production relations of this state.

Thus, in terms of content, finance is a financial and economic relationship.

In form, finance is the aggregate fund of the country's monetary funds, or a set of funds of funds allocated for one or another criterion or depending on the goal. Thus, it is well known that financial science distinguishes public and private finance, pointing out the distinctive features of the latter.

The immediate source of these funds is the national income. "Socialist finance is a system of economic relations, through which funds of monetary resources are systematically formed and used for the needs of expanded reproduction and other needs." Since the national income (social product) is the direct source of the formation of funds in the state (in the form of a universal equivalent - money), it can be assumed that it is he who, subject to further distribution and redistribution, is the fundamental principle of state finances (the total aggregate monetary fund), which includes two basic elements: public and private finance.

In this case, the structure of the aggregate fund (the totality of funds) is determined by financial relations (the content determines the form), which are based on the financial policy of the state, expressed in the law.

Thus, the totality of funds cannot be a stationary scheme and changes depending on:

From objective economic realities;

the policy pursued by a public entity in the field of finance.

Since finances are inextricably linked with the functioning of money and act as a system of monetary relations, they represent the relationship between people about the formation, redistribution and use of funds of funds. At the same time, it is obvious that the concept of monetary relations is broader than the concept of financial relations, since the latter contain an element of state regulation. Finance is a special kind of money relations, and their very existence is based on the monetary system.

The manifestation of the results of the impact of finance on the country's economy is directly dependent on the effective implementation of financial policy, which, in turn, is part of the domestic and foreign policy of the state.

Distinguish between domestic and foreign policy. Domestic policy determines the content of the goals set by the head of state, government, and the means by which these goals are achieved. Foreign policy mainly includes the spheres of state relations with other countries, agreements and unions, international trade, etc.

The basis of the financial policy for the development of the state, which, in turn, is divided into internal and external, is the development of the main directions for the accumulation and use of finance in accordance with the goals and objectives of the country.

As a superstructure category, financial policy must invariably be predetermined by the economic basis, generated by the economy and be inextricably linked with it. The interrelation of financial policy and the economy means that society is not free to pursue politics, however, despite its dependence on the economy, politics still has independence and can have a reverse effect on the economy, both inhibiting and accelerating its development.

Depending on the financial tasks determined by the state and the timing of their solution, financial policy can be divided into financial strategy and financial tactics.

Financial strategy consists in the development of the main directions of the use of finance, the choice of forms and types of organization of financial relations. This, in particular, is served by targeted financial policy programs that concentrate financial resources on the main directions of the country's economic and social development.

Financial tactics - it is the solution of specific economic problems at a certain stage of the country's development by applying the necessary methods and forms of financial ties.

Financial policy as a special area of \u200b\u200bstate activity requires legal registration, must be expressed in the form of a law or by-law (in the field of management). For example, a powerful subject establishes the volumes of the revenues and expenditures of the federal budget, forms of redistribution of funds, etc., formalizing all this with a law on federal budget for a given financial year. On the basis of the law on the federal budget, the Ministry of Finance develops various by-laws (instructions, etc.) on the calculation, collection, distribution and redistribution of payments.

Thus, financial policy is inextricably linked with financial law, since it is financial law that acts as an instrument of financial policy. It is the financial and legal norms that serve to establish uniform rules for organizing financial ties.

At the same time, economics is the basis, and law and politics are elements of the superstructure. If the vectors of the progressive development of the basis and the superstructure (economics, financial policy and financial law) coincide, then the result should be active economic progress. If the development vectors are directed in the opposite direction, then the objective economic processes (basic) will occur, no matter what, but at the same time overcoming the resistance of the opposite vector (for example, in the field of financial law). Thus, time can be wasted, existing potential wasted. In order to avoid this negative phenomenon, it is necessary to have a constant balance between the state of the economy and the norms of financial law that regulate public financial relations associated with it.

FINANCE AND FINANCIAL SYSTEM OF THE STATE

Finance concept

Finance -it is a system of monetary relations regarding the accumulation, distribution and use of funds of funds in order to materially support the performance of state functions and tasks.

Finance is an integral part of monetary relationships. Finance is a distribution category through which the distribution or redistribution of gross domestic product and national wealth occurs. It is thanks to this quality of finance that the state and local government are provided with the necessary financial resources used in the form of monetary funds.

According to most researchers, the term "finance" goes back to medieval Latin words - fmatio, financia pecuniaria, which were preceded by the Old Latin word figo - to drive in, to drive in, and later - finis, meaning the end, limit, border, ending (the marker was driven into the ground for separation of one piece of land from another). Xenophon (about 430-355 BC), whose work was called "On the Income of the Athenian Republic", is considered the first author of a scientific and practical work on finance.

Finance can be viewed in economic and material aspects. Economically, finance - these are economic relations associated with the formation, distribution and use of centralized and decentralized funds of funds in order to fulfill their own functions and tasks of the state or local government, as well as delegated powers of the state and ensure conditions for expanded reproduction, in the process of which the distribution and redistribution of gross domestic product and monitoring community needs.

In the material aspect, finance represent the monetary funds of the state, state-territorial and municipal formations, enterprises, institutions, organizations used to materially meet the needs of society and the development of production.

Feature of finance as public relations

The totality of these funds of funds is financial resources of the state.

Finance as an economic category functions within monetary relations... The content of finance includes only those monetary relations that have a specific financial form of value movement associated with the distribution of monetary income and savings, the formation and use of certain funds of monetary resources. The most important distinguishing feature of financial relations is the mandatory participation of the state in them. ... All other types of monetary relations go beyond financial relations and are regulated by other branches of law.

Financial relations differ from monetary ones in terms of equivalence. The movement of money in most cases is accompanied by the oncoming movement of goods, works or services, i.e. monetary relations are equivalent. Finances are not intended to create reciprocal satisfaction, their movement is not in the nature of compensation. The only exception in financial relations is a credit relationship arising, in particular, when purchasing government securities.

The essence of state and municipal finance, the patterns of their development, the sphere of commodity-money relations covered by them and their role in social reproduction are determined by the economic structure of society, the nature and functions of the state and local self-government.