Branch of the Russian State Social University in Cheboksary

Specialty "Finance and Credit"

Test

In the discipline "Finance"

Cheboksary-2011

Introduction

The term finance comes from the Latin word financia, meaning income, payment in a transaction. For the first time the word began to be used in the commercial cities of Italy in the XIII-XV centuries. Later they began to denote monetary relations.

Finance is an economic relationship associated with the formation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions and tasks of the state and to ensure conditions for expanded reproduction. Finance is an integral part of monetary relations, therefore their role and significance depend on the place that monetary relations occupy in economic relations. However, not all monetary relations express financial relations. Finance differs from money, both in content and in the functions performed. Money is a universal equivalent, with the help of which, first of all, the labor costs of associated producers are measured, and finance is an economic instrument of distribution and redistribution of gross domestic product and national income, an instrument of control over the education and use of funds of funds.

Their main purpose is to ensure, through the formation of monetary funds, 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 that arise between enterprises in the process of acquiring inventory, selling products and services; enterprises and higher organizations in the creation of centralized funds and their distribution; the state and enterprises when they pay taxes to the budget system and finance costs, the state and citizens when they make taxes and voluntary payments; enterprises, citizens and extra-budgetary funds when making payments and receiving resources; by separate links of the budgetary system; insurance organizations and enterprises and the population in the payment of insurance premiums and compensation for damage in the event of an insured event. Finance is an essential link between the creation and use of national income. Finances affect production, distribution and are objective in nature (ND is the newly created value or the value of the gross product minus the tools and means of production consumed in the production process). Finance is primarily a distribution category. With their help, the secondary distribution and redistribution of the national income is carried out. The socio-economic essence of financial relations lies in the study - through whom the state receives financial resources and in whose interests it uses these funds.

Finance: origin, evolution, essence, place in the system of financial relations

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

On early stages development of the state 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. Important role in the creation of initial capital belonged to the system of protectionism, which allowed the first capitalists to set high prices for manufactured goods, to receive high profits, which were largely directed to expanding production.

Under capitalism, finance expresses economic relations in connection with the formation, distribution and use of funds in the process of distribution and redistribution of national income.

The public finances of capitalist countries are characterized by a rapid increase in expenditures, which is primarily due to the intensification of the militarization of the economy. Military objectives, 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, health care were extremely small. 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.

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

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

Interstate funds were established. New government spending has emerged.

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

Development of finance. The emergence and development of finance is due to factors such as:

) social division of labor and division of society into social groups;

) the development of commodity-money relations in connection with an increase in production and an increase in GDP and personal income, as well as a change in the functions of money, the mechanism of their circulation;

) the emergence of independent, independent economic entities engaged in entrepreneurial activities and creating the necessary funds for production;

) the creation and complication of the scope of the state.

Finance like scientific concept are usually associated with processes of various forms 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.

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

An important sign of finance is the monetary nature of financial relations. Money is a prerequisite for the 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 that are formed from business entities and the state at the expense of different types cash income, deductions and receipts, but are used for expanded reproduction, material incentives for workers, meeting the various needs of society.

Potentially, financial resources are formed at the production stage, when a 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 specific economic forms of the realized value are singled out as part of the proceeds.

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 incomes and savings from business entities and the state and their use for expanded reproduction, material incentives, satisfaction of social and other needs of society.

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

In the early stages of society's development, when commodities (livestock, salt, and later metals) played the role of money, there was an equivalent exchange of goods. The function of money is a means of payment, and on its basis the appearance of credit money and signs of value creates conditions when goods and real money do not meet in exchange, not only in time, but also in space. At the same time, unequal exchange is growing, and sometimes the exchange of values ​​in general is disrupted. Speculation in the commodity, money and foreign exchange markets leads to a redistribution of GDP and personal income. Similar relationships arise in the functioning of finance.

Finance, being an instrument of the second stage of social reproduction, can affect all stages of reproduction and the process as a whole.

Objective prerequisites for influence are associated with two circumstances:

) finances function in all spheres of social production (production, circulation, consumption);

) finance can be a catalyst for economic processes (which follows from the distribution function).

Distribution begins in the sphere of material production, this sphere influences the nature and scale of production.

Sphere of circulation. It is characterized by buying and selling processes. The consumer properties of a product do not change, its cost changes. The product is sold, and the company receives revenue, and this revenue is distributed among the funds for reimbursement, accumulation, consumption. Financial relationships precede and complete the buying and selling process.

The sphere of consumption highlights:

) commercial organizations;

) budgetary organizations.

Now there are mixed-type organizations where commercial structures allocate money for budgetary organizations. The conscious use of finance in the interests of society and its individual elements transforms finance from an objective economic category into an economic instrument of management.

An economic tool is an economic category embodied in specific forms of manifestation and consciously used by society to achieve specific goals. An economic instrument, including finance, carries 2 principles: the first is objective (arising from the economic category), the second is subjective (the instrument of implementation economic policy state). Influence of finance:

) quantitative (characterized by the proportions of the distribution process);

) qualitative (characterized by the impact of finance on the material interests of business entities).

The qualitative side of influence is characterized by proportions in the distribution process; reflects the impact of finance on the material interests of business entities through various forms of organization of financial relations; affects the social product and is associated with the transformation of finance into an incentive for economic development. Such a transformation is possible when the procedure for the formation of income, the conditions and principles of the formation of funds, the directions of their use can be closely linked with the economic interests of business entities.

An economic incentive is a tool that is associated with the material interests of business entities. The conscious use of finance in social production leads to results in which the active role of finance in social production under market conditions is manifested.

Functions of finance as a manifestation of the essence. Public finance

finance attitude

The essence of finance as a special sphere of distributive relations is manifested, first of all, with the help of the distributive function. This function realizes the public purpose of finance - providing each business entity with the necessary financial resources. Here, the primary distribution of the newly created value is carried out and the formation on its basis of primary income: profit, charges on social insurance, etc.

The distribution function of finance serves the reproduction process as a whole, actively influencing all its stages. At the same time, the distribution function allows enterprises to form targeted funds necessary to meet the needs of developing production and material incentives for workers.

The distribution function of finance is that:

through the distribution and redistribution of the newly created value, national needs are met, sources of financing for the public sector of the economy are formed, a balance of budgets and extra-budgetary funds is achieved within the framework of the unified budgetary system of the Russian Federation;

the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.

The main objects of implementation of the distribution function of finance are mandatory payments to the budget and off-budget funds, as well as sources of financing the budget deficit. The process of redistribution of income between different levels of budgets plays a special role.

Another equally important function of finance is the control one, the basis of which is the movement of financial resources. Since finance permeate all social production, all its spheres and subdivisions, all levels of management, they act as "a universal instrument of control on the part of society over the production, distribution and circulation of the aggregate social product." Financial information acts as a tool for implementing the control function of finance. Financial information allows you to see the various aspects of the work of enterprises, evaluate the results economic activity and on this basis, take measures aimed at eliminating the identified negative aspects.

The control function operates, not in isolation, but in close unity with the distribution function. The combination of these functions allows you to fully reveal the economic essence of finance. In real life, there are no financial relations that are only distributive in nature and do not have a control function. At the same time, there is no such financial relationship that would have the property of control and are not distributive. In their unity and close interaction, finance can manifest itself as a category of value distribution.

The control function of finance is to exercise control over the real money turnover by the ruble, in which the state is a participant, and the formation of centralized funds of funds. Ruble control has two forms:

control over changes in financial indicators, the status of payments and settlements;

control over the implementation of the financing strategy.

In the first case, a system of sanctions and incentives is applied, using measures of a coercive or incentive nature. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to the anticipation of changes and the early adaptation of the order and conditions of financing to them. Constant changes, updates in the financial system require an adequate response to this from all branches of government.

The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an extra-budgetary fund, an enterprise or an institution, etc.

The control function of state and municipal finance is implemented in the following main areas:

) control over the correct and timely transfer of funds to centralized funds;

) control over compliance with the specified parameters of centralized funds, taking into account the needs of industrial and social development;

) control over the targeted and efficient use of financial resources.

Many modern economists identify other functions of finance. They are subjective and serve as management tools.

The regulatory function is closely related to the intervention of the state with the help of finance in the reproduction process.

The stimulating function of state and municipal finance is to ensure the development of various spheres of public life through a system of benefits and economic programs.

The fiscal function of finance is connected with supporting unprofitable, but necessary sectors of the economy. It is carried out using a variety of methods and techniques (investment, taxation, imitation, etc.).

From all of the above, we can conclude that finances are an integral part of monetary relations and play a huge role in the formation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions, tasks of the state and ensure conditions for expanded reproduction. You can also say that finances are objectively necessary, as they are conditioned by needs social development.

Financial relations at the present stage. Types of financial relationships

All financial relations are responsible for the distribution of GDP and ND; participate in the formation of funds and funds, in their use. All financial relations control and regulate the distribution process.

In the general set of financial relations, three large areas can be distinguished: finance of enterprises, institutions and organizations; insurance; public finance. Links are distinguished within each of the named spheres. The grouping of financial relations is carried out depending on the nature of the entity's activities, which has a decisive influence on the composition and purpose of targeted monetary funds.

Different parts of the financial system serve different types financial distribution: on-farm - enterprise finance; intra-industry - finance of enterprises, complexes, associations; inter-sectoral and inter-territorial - by the state budget, extra-budgetary funds.

Each link of the financial system is subdivided into sub-links in accordance with the internal structure of the contained financial relationships. So, in the structure of the finances of enterprises, depending on the sectoral focus, the finances of industrial, agricultural, commercial enterprises, etc., can be distinguished, and depending on the form of ownership - the finances of state enterprises, cooperative, joint-stock, private, etc.

The financial system of the Russian Federation includes the following links of financial relations: state. budget, extra-budgetary funds, state. credit, property and personal insurance funds, stock market, finance of enterprises of various forms of ownership.

Financial relations are by nature distributive, and the distribution of value is carried out primarily by entities. The latter form targeted monetary funds depending on the role they play in social production. It is the role of the subject in social production that acts as an objective criterion for the classification of financial relations. In accordance with it, in the total set of financial relations, three large interconnected areas are distinguished: finance of economic entities (enterprises, organizations, institutions), insurance, and public finance. Depending on the nature of the activities of the subjects within each of these areas, various links can be distinguished. Each link performs its own tasks, has its own structure of the financial apparatus, but together they form the financial system of the state.

The main task of financial relations is to concentrate financial resources at the disposal of the state and direct them to finance social, managerial, law enforcement, military and production functions. They are formed mainly from tax, customs and other payments, as well as income received from the placement of state financial resources and from the sale of government securities, from the sale of state property or from its lease.

At the organizational level, financial relations can be grouped into the following groups:

a) financial relations with the state are represented by the relations of enterprises with budgets of various levels and extra-budgetary funds regarding the payment of taxes, fees and other mandatory payments; with tax and other competent authorities regarding control over the correctness and timeliness of tax payments, regarding government orders and government procurements, regarding subsidies, subventions, etc. This type of financial relations is characterized by strict legislative regulation;

b) financial relations<#"justify">1.Drobozina L.P. Finance. Money turnover. Credit / L.A. Drobozina, L.P. Okuneva, L. D. Androsov et al. - M .: "Perspective", 2007. - 477 p.

2.Kovaleva A.M. Finance / A.M. Kovaleva, N.P. Barannikova, V.D. Bogacheva. - M .: Finance and statistics, 2008 .-- 384 p.

.Mamedov O.Yu. Modern economics. / O.Yu. Mamedov, Rostov-on-Don :, "PHOENIX", 2006 - 608 p.

.Polyakova G.B. Finance. 3rd ed., Rev. and add. - M .: Unity-Dana, 2008 .-- 703 p.

.F.N. Emelyanov. Finance (Fundamentals of the theory of finance. State and municipal finance) / Tutorial... Cheboksary - 2007. - 238 p.

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So, 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 subject. These funds include: first, the funds accumulated in the state budget system; secondly, off-budget centralized funds of the state; third, 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 finances of enterprises and organizations of all forms of ownership, formed both from their own resources, and from budget allocations, as well as sectoral and intersectoral off-budget funds.

Finance is an integral part of monetary relations, therefore, the role and importance of finance depend primarily on the place of monetary relations 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 purpose of finance is to ensure not only the needs of the state and enterprises for funds, but also control over the expenditure of financial resources through the formation of monetary incomes and funds.

Finance expresses monetary relations arising between the following entities:

a) enterprises in the process of purchasing inventory, selling products and services;

b) enterprises and higher organizations in the creation of centralized funds of funds and their distribution;

c) by the state and citizens when they make taxes and voluntary payments;

d) enterprises, citizens and extra-budgetary funds when making payments and receiving resources;

e) separate links of the budgetary system;

f) 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 period of transition to a market economy system. As for centralized funds, in relation to them the state acts as a ruling subject and can provide its income through compulsory system- taxes, duties, various fees, money emission, etc.

Decentralized funds are another matter. With regard to them, government regulation is expressed in a completely different way. And a completely different attitude should be towards the finances of private entrepreneurs, since private finances - their state 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.

Without the redistribution of financial resources, it is impossible to hold almost a single event in the state. In other words, the conduct of any events in the state is associated with its financial activities. And that is why we need the legal framework that would regulate the conduct of 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 is an 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 disclose 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 the 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 of 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) the wages of workers and employees, the income of farmers, peasants; and 2) income of enterprises in the sphere of material production.

Further redistribution of national income is associated with: a) intersectoral and territorial redistribution of funds in the interests of effective and rational use income and savings of enterprises and organizations; b) with the presence of not only production, but also non-production sphere, in which the national income is not created (health care, education, social insurance and social security, management); c) 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;

Selected 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 employees 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 respective funds, and controls their spending for their intended purpose.

Financial control under the conditions of the transition to market relations is aimed at ensuring the dynamic development of public and private production, accelerating scientific and technological progress, and 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 is 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 business 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 legislation on financial matters, the timeliness and completeness of the fulfillment of financial obligations to the budgetary system, tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments (For more details, see the chapter "Financial control, its essence and types").

The control function of finance is also manifested through the activities of financial authorities. The effectiveness of financial control carried out by various actors, in particular, public authorities, local government, auditors, audit firms, to a large extent depends on their interaction, coordination of joint activities, as well as on cooperation with law enforcement agencies.

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

The stabilizing function of 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. At the same time, the factor of stability of financial legislation is of particular importance, since without this it is impossible to implement investment policy.

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

V Russian Federation a long-term financial plan is being developed based on the budget for the current year. Its goals are as follows:

a) informing the legislative (representative) bodies about the expected medium-term trends in the development of the economy and social sphere;

Finance (fr. Finance from lat. Financia - income, payment) arose in conditions of regular commodity-money circulation in connection with the development of the state and its needs for resources.

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

Finance is an economic relationship associated with the formation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions and tasks of the state and to ensure conditions for expanded reproduction.

Centralized finance refers to economic relations associated with the formation and use of funds of state funds accumulated in the state budget system and government extra-budgetary funds, and decentralized finance refers to monetary relations that mediate the circulation of funds of enterprises.

Finance is an integral part of monetary relations, therefore their role and significance depend on the place that monetary relations occupy in economic relations. However, not all monetary relations express financial relations.

Finance differs from money both in content and in the functions it performs.

Money is a universal equivalent, with the help of which, first of all, the labor costs of associated producers are measured, and finance is an economic instrument of distribution and redistribution of gross domestic product (GDP) and national income, an instrument of control over the formation and use of funds of funds. Their main purpose is to ensure, through the formation of monetary incomes and funds, not only the needs of the state and enterprises in monetary funds, but also control over the expenditure of financial resources.

Finance expresses monetary relationships that arise between:

Enterprises in the process of purchasing inventory, selling products and services;

Enterprises and higher organizations in the creation of centralized funds of funds and their distribution;

The state and enterprises when they pay taxes to the budgetary system and finance costs;

The state and citizens when they make taxes and voluntary payments;

Enterprises, citizens and extra-budgetary funds when making payments and receiving resources;

Separate links of the budgetary system;

Gross Domestic Product (GDP) is the value of final goods and services produced by residents of a given country in its territory over a certain period of time.

Property and personal insurance bodies, enterprises, the population in the payment of insurance premiums and compensation for damage, in the event of an insured event;

Monetary relations that mediate the circulation of funds of enterprises.

The main material source of monetary income and funds is the country's national income - the newly created value or the value of the gross domestic product minus the tools and means of production consumed in the production process. The volume of national income determines the possibilities of satisfying national needs and expanding social production. It is taking into account the size of the national income and its individual parts - the consumption fund and the accumulation fund - that the proportions of economic development and its structure are determined. This is why national income statistics are of great importance in all countries.

Without the participation of finance, the national income cannot be distributed. Finance is an essential link between the creation and use of national income. Finance, affecting production, distribution and consumption, are objective. They express a certain area of ​​production relations and belong to the basic category.

The modern economy cannot exist without public finance. At certain stages of historical development, a number of society's needs can be financed only by the state. These are the nuclear industry, space research, a number of new priority sectors of the economy, as well as enterprises that are necessary for everyone (post, telegraph and some others).

Finance reflects the level of development of productive forces in individual countries and the possibility of their impact on macroeconomic processes in economic life.

The state of the country's economy determines the state of finances. In conditions of constant economic growth, increase in GDP and national income, finance is characterized by its stability and stability; they stimulate the further development of production and improve the quality of life of the country's citizens.

In the context of an economic crisis, a decline in production, and an increase in unemployment, the state of finances deteriorates sharply, which is reflected in large budget deficits financed by domestic and foreign government loans, money emission, as well as in an increase in government debt and spending on it. All this entails the development of inflation (inflation (from Lat.inflatio - swelling), overflow of circulation channels with excess paper money, causing their depreciation and redistribution of the social product and national income between sectors of the national economy, between social classes and population groups in favor of the propertied classes ), disruption of economic ties, an increase in mutual non-payments, the emergence of monetary surrogates (CASH SURROGATS are banknotes that are not provided for by legislation, which are introduced by individual enterprises or other organizations, as well as by citizens without permission), an increase in barter transactions, difficulties with tax mobilization, the impossibility of timely financing government spending, lower living standards of broad strata of the population. Therefore, the primary role in economic and social relations belongs to the state of the real sphere of production.

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.

1. The distributive function manifests itself in the distribution of the national income, when the so-called basic, or primary incomes are created. Their sum is equal to the national income. The main income is formed when the national income is distributed among the participants in material production. They are divided into two groups: 1) wages of workers, employees, incomes of farmers, peasants employed in the sphere of material production; 2) income of enterprises in the sphere of material production.

2. Control function. As a tool for the formation and use of monetary incomes and funds, finance objectively reflects the course of the distribution process. The control function is manifested in the control over the distribution of GDP among the relevant funds and their spending for the intended purpose.

3. In addition to its distributive and control function, finance also has a regulatory function. This function is associated with the intervention of the state through finances (government spending, taxes, government credit) in the reproduction process. However, today the regulatory function in Russia is poorly developed.

So, 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 subject. These funds include: first, the funds accumulated in the state budget system; secondly, off-budget centralized funds of the state; third, 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 finances of enterprises and organizations of all forms of ownership, formed both from their own resources and from budget allocations, as well as sectoral and intersectoral off-budget funds.

Finance is an integral part of monetary relations, therefore, the role and importance of finance depend primarily on the place of monetary relations 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 purpose of finance is to ensure not only the needs of the state and enterprises for funds, but also control over the expenditure of financial resources through the formation of monetary incomes and funds.

Finance expresses monetary relations arising between the following entities:

a) enterprises in the process of purchasing inventory, selling products and services;

b) enterprises and higher organizations in the creation of centralized funds of funds and their distribution;

c) by the state and citizens when they make taxes and voluntary payments;

d) enterprises, citizens and extra-budgetary funds when making payments and receiving resources;

e) separate links of the budgetary system;

f) 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 period of transition to a market economy system. 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.

Decentralized funds are another matter. With regard to them, government regulation is expressed in a completely different way. And a completely different attitude should be towards the finances of private entrepreneurs, since private finances - their state 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.

Without the redistribution of financial resources, it is impossible to hold almost a single event in the state. In other words, the conduct of 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 of the financial activity of the 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 is an 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 disclose 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 the 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 of 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) the wages of workers and employees, the income of farmers, peasants; and 2) income of enterprises in the sphere of material production.

Further redistribution of national income is associated with: a) intersectoral and territorial redistribution of funds in the interests of efficient and rational use of income and savings of enterprises and organizations; b) with the presence of not only production, but also non-production sphere, in which the national income is not created (health care, education, social insurance and social security, management); c) 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;

Selected 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 employees 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 respective funds, and controls their spending for their intended purpose.

Financial control under the conditions of the transition to market relations is aimed at ensuring the dynamic development of public and private production, accelerating scientific and technological progress, and 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 is 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 business 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 check the exact observance of legislation on financial issues, the timeliness and completeness of the fulfillment of financial obligations to the budget system, the tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments (For more details, see the chapter “Financial control , its essence and types ").

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.

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

The stabilizing function of 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. At the same time, 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 long-term financial plan is being developed based on the budget for the current year. Its goals are as follows:

a) informing the legislative (representative) bodies about the expected medium-term trends in the development of the economy and social sphere;

b) comprehensive forecasting of the financial consequences of the developed reforms, programs, laws;

c) identifying the need for and the possibility of implementing promising measures in the field of financial policy;

d) 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.

So, 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 subject. These funds include: first, the funds accumulated in the state budget system; secondly, off-budget centralized funds of the state; third, 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 finances of enterprises and organizations of all forms of ownership, formed both from their own resources, and from budget allocations, as well as sectoral and intersectoral off-budget funds.

Finance is an integral part of monetary relations, therefore, the role and importance of finance depend primarily on the place of monetary relations 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 purpose of finance is to ensure not only the needs of the state and enterprises for funds, but also control over the expenditure of financial resources through the formation of monetary incomes and funds.

Finance expresses monetary relations arising between the following entities:

a) enterprises in the process of purchasing inventory, selling products and services;

b) enterprises and higher organizations in the creation of centralized funds of funds and their distribution;

c) by the state and citizens when they make taxes and voluntary payments;

d) enterprises, citizens and extra-budgetary funds when making payments and receiving resources;

e) separate links of the budgetary system;

f) 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 period of transition to a market economy system. 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.

Decentralized funds are another matter. With regard to them, government regulation is expressed in a completely different way. And a completely different attitude should be towards the finances of private entrepreneurs, since private finances - their state 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.

Without the redistribution of financial resources, it is impossible to hold almost a single event in the state. In other words, the conduct of 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 of the financial activity of the 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 is an 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 disclose 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 the 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 of 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) the wages of workers and employees, the income of farmers, peasants; and 2) income of enterprises in the sphere of material production.

Further redistribution of national income is associated with: a) intersectoral and territorial redistribution of funds in the interests of efficient and rational use of income and savings of enterprises and organizations; b) with the presence of not only production, but also non-production sphere, in which the national income is not created (health care, education, social insurance and social security, management); c) 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;

Selected 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 employees in improving financial and economic activities, achieving high results at the lowest cost.

Control function. Finance, being an instrument 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 respective funds, and controls their spending for their intended purpose.

Financial control under the conditions of the transition to market relations is aimed at ensuring the dynamic development of public and private production, accelerating scientific and technological progress, and 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 is 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 business 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 check the exact observance of legislation on financial issues, the timeliness and completeness of the fulfillment of financial obligations to the budget system, the tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments (For more details, see the chapter “Financial control , its essence and types ").

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.

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

The stabilizing function of 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. At the same time, 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 long-term financial plan is being developed based on the budget for the current year. Its goals are as follows:

a) informing the legislative (representative) bodies about the expected medium-term trends in the development of the economy and social sphere;

b) comprehensive forecasting of the financial consequences of the developed reforms, programs, laws;

c) identifying the need for and the possibility of implementing promising measures in the field of financial policy;

d) 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.