The abstract of lectures complies with the requirements of the State Educational Standard of Higher Professional Education. Accessibility and brevity of presentation make it possible to quickly and easily obtain basic knowledge of the subject, prepare and successfully pass the test and exam. The content, functions, socio-economic essence of finance, monetary system Russia, the importance of the budget in the development of the economy and the social sphere, the current state of the extra-budgetary redistribution of financial resources, as well as the finances of business entities, and much more. For students of economic universities and colleges, as well as those who independently study this subject.
LECTURE #1
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, monetary incomes and state expenditures began to acquire ever greater significance.
In the early stages of the 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 public finance arise, state budget, state loan.
Public finances served as a powerful lever for primitive capital accumulation.
State loans and taxes were widely used to create the first capitalist enterprises. important role in creating initial capital belonged to the system of projectionism, which allowed the first capitalists to set high prices for manufactured industrial products, to receive high profits, which were largely directed to expanding production.
Under capitalism, when commodity-money relations acquire an all-encompassing character, finance expresses economic relations in connection with the formation, distribution and use of funds Money 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 state finances of the capitalist countries are characterized by fast growth spending, which is primarily due to increased militarization of the economy. Military purposes, the repayment of the public debt and interest on it accounted for more than 2/3 of all government spending. Enormous funds were directed to the maintenance of the state apparatus - parliament, ministries, departments, police, prisons, etc. The costs of education and health care were extremely small. Taxes were the main source of income.
By the beginning of the XX century. the state began to participate in the process of production, distribution and use of the social product.
Democratization of public life in the conditions of a developed market economy led to the fact that in a number of small countries Western Europe(Sweden, Norway, etc.) spending on social purposes has become one of the main ones. From this arose the concept of "Swedish model of socialism".
State intervention in the economy has received significant development. It began to actively help its country's monopolies in the fierce competition on 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 cash funds were created and used to finance Agriculture, overcoming unemployment, retraining and redeployment of the labor force, overcoming significant disproportions in the development of individual regions.
New government spending appeared: on environmental protection, overcoming the economic backwardness of certain areas, providing subsidies and loans developing countries.
Huge expenditures make it necessary to increase taxes - 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 costs of the state.
The budgets of all countries are characterized by large chronic deficits covered by government loans, the issuance of which entails an increase in public debt.
2. The essence of finance
Finance as a scientific concept is usually associated with processes of various forms that manifest themselves in public life and are necessarily accompanied by the movement of funds (profit distribution, transfer of tax payments, extra-budgetary and charitable payments).
The cash flow itself does not reveal the essence of finance. To comprehend it, it is necessary to identify those common properties that characterize the internal nature of all financial phenomena - the relationship between the various participants in social production.
Finance, expressing the production relations that actually exist in society, which have an objective character 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 for the existence of finance.
The next sign 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, which take a specific form of financial resources, which are formed by business entities and the state due to various types of cash income, deductions and receipts, but are used for expanded reproduction, material incentives for workers, satisfaction of various needs of society.
Potentially, financial resources are formed at the stage of production, 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 value is realized and specific economic forms of the realized value are singled out 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, which distinguishes them from other distributive 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 cash income and savings from economic entities and the state and their use for expanded reproduction, material incentives, satisfaction of social and other the needs of society.
3. Functions of finance
The essence of finance is manifested in their functions. Finance performs two main functions: distributive and control. These functions are carried out by finance at the same time. Each financial transaction means the distribution of the social product and national income and control over this distribution.
When there is a creation of the so-called basic or primary incomes, then the distributive function appears. The amount of income is equal to the national income. The main incomes are formed during the distribution of national income 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. Primary incomes do not form public money
funds sufficient for the development of priority sectors of the national economy, ensuring the country's defense capability, and meeting the material and cultural needs of the population. Further distribution or redistribution of the 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 national income is not created (education, health care, social insurance and provision, management); redistribution of income between different social groups of the population.
As a result of redistribution, secondary, or production, incomes are formed. These include income received in non-manufacturing sectors, taxes (personal income tax, etc.). Secondary incomes serve to form the final proportions of the use of the national income.
The income generated in the course of redistribution must ensure a correspondence 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 control over the distribution of the gross domestic product among the relevant funds and their spending for the intended purpose.
One of the important tasks financial control is to verify compliance with financial legislation, timely and complete implementation financial obligations before the budget system, tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments.
The distributive and control functions of finance are implemented through the financial mechanism, which is part of 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, financial planning methods, forms of financial and financial system management, financial legislation.
Finance, participating in the distribution of value, is closely related and interacts with such categories as price, wages, credit.
In order for the process of formation and distribution of various forms of money income and savings to begin, the value formed in production must be realized. Price is the economic instrument by which the value of a product is expressed in money terms and becomes an object of distribution.
Being a quantitative measure of the value created in production, its monetary expression, the price predetermines the proportions of the future value distribution, but it itself cannot ensure either the distribution among the subjects of ownership, or the functional isolation of different parts of the value. This is singled out at the stage of exchange with the help of finance and wages. It is thanks to them that various types of cash income, savings and deductions are formed in the process of primary distribution.
Wages as a form of distribution are due to the need to generate income for specific workers. How economic category wages express value relations that arise as a result of the division of newly created value in the creation of individual incomes received by 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 a variety of social needs. But they are closely related: on the one hand, finance contributes to the formation of the wage fund, on the other hand, wages, the accrual of which does not converge with payment in time, acts as a source of creating part of the financial resources of the enterprise, taking the form of stable liabilities.
Being in the turnover of the enterprise between accrual and payment, wages act as a source of working capital formation.
Credit also participates in the value distribution. Finance and credit have one economic basis, but unlike finance, the loan operates on the terms of repayment and payment.
The main objects of the complex impact of finance and credit on reproductive process are fixed assets and working capital.
Based on the relationship of finance with the most important economic categories, it is necessary to attach special importance to the issues financial management, i.e. the most efficient 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 telecommunication technologies are dramatically changing the process of making financial decisions. The parent companies are provided with a system of personal computers connected local network, with computers vendors and under-rowers. This allows the financial manager to be constantly 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 the activities of enterprises. Business plans are drawn up for the volume of production, sales of products, profits, capital investments, the introduction of new management decisions and financial resources to ensure them;
3) making appropriate decisions when investing large funds (optimal growth rates of sales, the structure of funds raised, methods of their mobilization, etc.);
4) coordination of financial activities of enterprises with other services (bank, tax department, etc.);
5) carrying out major operations on financial market on
mobilization of additional capital.
Financial management is also of great importance for public finances, including the budget system and extra-budgetary funds.
In connection with the transition to market relations, there is a tendency for significant decentralization of financial resources. The development of off-budget funds leads to dispersal of funds, does not allow their mobile use, concentration on priority areas of economic development, and weakens control over the spending of 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 performance of state functions.
Financial policy is an independent sphere of state activity in the field of financial relations. It includes three main elements:
1) definition and setting of the main goals and specification of further and immediate tasks that need to be solved in order to achieve the goals set for a certain period;
2) development of methods, means and forms of organization of relations in which these goals are achieved in as soon as possible, and the immediate 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 by how much it meets the interests of society and how much it contributes to the achievement of goals and the solution of specific problems.
To determine and form a financial policy, reliable information about the financial position of the state, its financial potential, i.e., the objective capabilities of the state, is necessary.
During the period of evolutionary development of social life and stable state structure internal and external financial policy of the state decide one main task- 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 one and forming new system public relations.
The role of financial policy at critical moments of life can hardly be overestimated, since, first of all, there is a radical redistribution of financial resources.
The primary challenges facing the modern financial policy of the Russian state - the fight against inflation, overcoming the decline in production, increasing the social security of the population.
The process of money circulation can be viewed as a chain of interactions between economic entities. These interactions are of an economic nature in the form of a commodity exchange that ensures production, consumption and government regulation and is mediated by money. In other words, the subjects of the economy enter into certain monetary relations with each other, the essence of which is the distribution and redistribution of national income. The process of distribution takes place among the subjects of the economy that produce the national product (enterprises - producers of goods and services), and the redistribution takes place among the subjects that receive the national income (the population, the state, trade enterprises etc.). The totality of such relations is a special economic category and is called finance.
Finances are monetary relations that arise in the course of the distribution and redistribution of national income in connection with the formation of cash incomes and savings from individual economic entities to meet production, consumer and government needs.
On the scheme of monetary circulation, each flow is a macro-element of finance. At the micro level (the level of individual economic entities), private flows arise, the volume and direction of which depend on the volume and efficiency of their activities or are set by regulations. Obviously, in any case, the amount of money available to each economic entity is limited, and, consequently, the possibilities to meet their needs are also limited. Under these conditions, of particular importance is the way in which monetary relations are organized, both at the macro and micro levels: the quality of the organization of finance (in addition to the volume of funds) directly determines the degree to which the needs of economic entities are satisfied (efficiency in the use of funds).
Ways of organizing finance are very diverse and depend on the specifics of the activity of a particular entity. However, at the heart of any of these methods is the stock principle. The essence of this principle is that in the total volume of monetary resources of an economic entity, separate parts are allocated, designed to meet certain needs - monetary funds.
The formation of monetary funds is typical for all subjects of the economy, although their composition and structure may differ significantly. Enterprises create payroll funds, production development funds, various payment funds, reserve funds and etc.; the composition and volume of these funds in most cases are determined by the enterprise itself. The state legally forms a budget fund and within it separate funds - budget items, extra-budgetary funds and others. The population, distributing their income for various needs, actually (in an informal form) creates their own monetary funds for each family.
The use of the stock form makes it possible to introduce a high degree of order into the finances of each economic entity. There is an opportunity to systematically and purposefully solve the tasks set: the most efficient use of financial resources. The stock form of organizing finance should not be excessively rigid and categorically prevent the redistribution of funds between them, as was typical of a centralized economy. If necessary, if there are no legal restrictions, it is permissible and necessary operational regulation volumes of monetary funds at the level of each subject.
The composition and structure of monetary funds is determined by the specifics of the activity of a particular economic entity, which thus forms the specifics of its finances. Using this approach, it is possible to single out the spheres of finance and their links that form the financial system.
The spheres of finance are the macroelements of the financial system, allocated according to the principle of assigning monetary funds. Links of finance are elements of more low level, which reflect the specifics of the formation and spending of monetary funds of the relevant entities.
Financial system is a set of spheres and links of finance that interact with each other and ensure effective money circulation in the economic system.
In the sphere of production, the finances of enterprises, organizations and institutions are concentrated, i.e. economic entities that aim to satisfy a variety of social needs: in goods and services, education and vocational training, in the protection of certain social groups of the population and spiritual benefits, etc. (The term "production" is used here in a different sense than usual).
Public finances are concentrated in the sphere of state regulation, i.e. monetary relations that arise when the state performs its functions, for which certain monetary funds are intended. According to the method of formation and use, these funds differ significantly from each other and form budget and extra-budgetary funds, as well as funds received during credit operations states.
In the field of insurance, the finances of insurance organizations are concentrated, the purpose of which is to protect individual economic entities in certain cases through their material (monetary) support. Insured events in this area are strictly separated and tied to separate target funds, which form the links of the insurance system.
The division of the financial system into spheres and links has a classification and methodological significance. It should be clearly understood that in this system there is a constant horizontal interaction between its elements, which is a factor that ensures the integrity of the system, its dynamics and the meaning of its functioning. So, for example, there are close and continuously renewed links between the sphere of state regulation and production in the form of financing the subjects of the latter and the reverse in the form of tax and other payments. The links between the sphere of insurance and the sphere of production are obvious, but at the same time, part of the insurance (mainly social and personal) is carried out through extra-budgetary funds. Similar connections exist within the spheres of finance between their various links, for example, contributions to the activities of public organizations by commercial enterprises, or replenishment of the budget and extra-budgetary funds at the expense of a state loan.
The main goal of the financial system (effective money circulation) is achieved through the implementation of two functions in it: distributive and control. Since the very definition of finance contains the idea of distribution, it is the first function that is the main one.
The distributive function of finance lies in the fact that through effective money circulation, each economic entity must receive at its disposal such a share of the national income that will allow it to exist and develop normally.
The implementation of the distributive function of finance involves the simultaneous solution of the following tasks.
1. Ensuring the efficient operation of enterprises, i.e. covering by them the costs of production and the creation of a normal profit through gross money income. This task is primary, because It is enterprises that generate national income. If the financial system contradicts the requirement for the efficient operation of enterprises (for example, as a result of government actions on taxation), then the object of distribution itself disappears and the financial system ceases to exist. All other problems of the distribution of national income can be solved only on the basis of solving this one.
2. Ensuring a normal level of real incomes of the population. This task has several tools for solving, but the main one is effective work enterprises that, at the expense of their income (a share of the national product), can fairly pay for the work of their employees and make payments to the state, thus ensuring the income of the population through state transfer payments. In addition, the level of solving this problem depends on how well-thought-out and relevant to the possibilities of the economy is the system of state protection of the population, as well as on how developed the insurance system is.
3. Ensuring the elimination of temporary difficulties arising from enterprises and the population through their insurance protection. This task is based on a reliable and well-organized insurance system, which has significant insurance funds. Contributions to these funds are voluntary and obligatory payments by enterprises and the population, i.е. share of that part of the national income which falls at their disposal. Consequently, the problem of insurance protection can be solved only if this share is sufficient.
4. Ensuring the effective performance by the state of its functions and, thus, social and economic stability. The main solution to this problem is a clear definition of the sphere of activity of the state, which under normal conditions can be quite narrow. The less monetary resources are transmitted through government bodies, the more freedom of action remains for enterprises and the population. Realizing this freedom through market mechanisms, these subjects of the economy carry out effective management of socio-economic processes.
All tasks solved within the framework of the distributive function have an obvious contradictory character, since imply the distribution of national income, the size of which is always limited. This means the need to carefully prioritize distribution tasks based on the prevailing economic situation which can be qualified and objectively performed only at the state level, by special state organizations.
To implement the distribution function, it is necessary to have objective information about the actual state and trends in both the economy as a whole and its individual subjects. The fundamental requirement for this information is its homogeneity: the ability to integrate data in general indicators and the comparability of these indicators. The only form of information that meets this requirement is the cost (monetary) meters that arise as a result of the operation of the financial system. Using this information, economic entities of any level can make effective management decisions, which ultimately have financial consequences. The task of providing such information to the subjects is solved by the control function of finance.
Financial control can be of two types:
- internal, which is carried out by the subjects of the economy themselves in relation to their activities, determining its financial indicators and making decisions based on them. This type is the most important, because. directly meets the interests of the subject;
- external, which is carried out by state bodies, checking the compliance of the activities of economic entities with regulatory requirements. This type of control ensures the observance of financial discipline: the fulfillment by enterprises and the population of their obligations towards the state and partners.
The financial system is a combination of various areas of financial relations, in the process of which funds of funds are formed and used, and the bodies serving them.
Financial system Russian Federation includes the following areas of financial relations.
1. Centralized (public, public) finances:
a) federal finance;
b) regional finance;
c) local (municipal) finances.
2. Decentralized finance:
a) finances of organizations (commercial and non-commercial);
b) citizens' finances.
The presence of five spheres of financial relations is determined by the presence of five independent economic entities participating in economic life - a federation, a subject of the federation, a municipality, an organization, a citizen. Financial flows cover all areas of the financial system. At the macro level, these are flows that ensure the formation and use of the state and municipal budgets, state off-budget funds, state insurance funds, state credit. These are flows between the state and local self-government, on the one hand, and legal entities and individuals, on the other, as well as between states. At the micro level, these are flows that ensure the formation and use of funds of organizations and citizens.
State and local finances are formed at the expense of the finances of organizations and the finances of citizens and are used to regulate economic and social relations at the macro level. Decentralized finance is used to regulate and stimulate the economy and social relations at the micro level. At this level, the predominant part of financial resources is formed. The overall financial situation in the country largely depends on the state of decentralized finance.
Public finance is a system of relations regarding the formation, distribution and use of funds of funds at the federal (federal finance) level and the level of subjects of the federation (regional finance). State finances at the level of subjects of the federation and municipal (local) finances form territorial finances.
State and local finances are unified.
Source - Golubev A.A., Gavrilov N.P. Finance and credit: Tutorial. - St. Petersburg: St. Petersburg GUITMO, 2006. - 95 p.
Kustova T. N., Starkova N. A. Finance and credit: Textbook. RGATA. - Rybinsk, 2007. - Part 1. – 134 p.
In economics, as in no other, there is terminological confusion, leading not only to a misunderstanding of the economic schools of various states, but also to interdisciplinary confusion, to contradictions in the basic definitions of scientific schools in different cities and universities. So, there is still no unambiguous interpretation of the term "finance". Here are some of the most commonly used ones.
Term "finance" derived from the Latin word Jlnancia, which means income, payment on a transaction. It first appeared in the trading cities of Italy in the XIII-XV centuries. 1 Later, having received international recognition, the term began to denote a system of monetary relations.
The current meaning of the term "finance" appeared in the conditions of regular commodity-money relations in connection with the development of the state and its needs for resources.
The essence of finance, the laws of their development, the scope 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 - these are relations that form the monetary funds necessary for the functioning of a nationwide governing body. Usually these relations are designated in economic science by the term "state (public) finances". In Soviet times, when national ownership prevailed, the concepts of "finance" and "state finance" meant the same group of relations. In view of the coincidence of the concepts of the object of study, there were no special contradictions in the theory of ns.
A more extended interpretation of finance is given in the following definition. Finance - this is a set of economic relations that arise in real money circulation regarding the formation, distribution and use of centralized funds of financial resources.
Based on the theoretical premise that finance is always a monetary relationship, but not any monetary relationship is always a financial relationship, another definition of finance was formulated. Finance - this is a set of monetary relations organized by the state, in the course of which the formation and use of national funds of funds for the implementation of economic, social and political tasks is carried out.
Based on the need to ensure expanded reproduction and the implementation of the functions of the state through the financial provision of social needs, one definition of finance can be given. Finance represent economic relations - monetary relations associated with the formation, distribution and use of funds of funds in order to ensure the conditions for expanded reproduction and the fulfillment of the functions and tasks of the state 1 .
The definition of finance proposed by the SUM scientific school is very similar to the above. Finance - this is a set of monetary relations that arise in the process of formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction.
Modern academic theory and practice of developed countries recognizes and carries out life activities in mixed economy system those. to one degree or another, in preference to one form or another, regulated by the state. Therefore, despite the presence of diametrically opposed points of view on a set of issues of state regulation, in the post-war period in countries with developed market structures, a new science was formed - public sector economics, representing a different than before system of views on the role of the state and the theory of public finance.
public sector represents the totality of all the resources of the economy at the disposal of the state. And state resources mean all property and all monetary (mainly budgetary) funds. But since any actions of the state in market conditions are mediated by financial instruments, then, without diminishing the role state property, the most universal instrument of influence is recognized budget. Therefore, the focus of the public sector economy is primarily public finance.
In accordance with the theory of public choice and the theory of demand for public goods, we can give the following definition of public finance.
public finance- this is a set of monetary relations organized by the state, which are associated with the formation, distribution and use of centralized funds of funds to provide the population with public goods, finance socially significant needs and create conditions for expanded reproduction 1 .
public finance express economic relations related to the provision of centralized sources of financing for the state and municipal sectors of the economy, the most significant programs for the development of production and the public sector, organizations and institutions public sector, target programs of the Government of the Russian Federation. Their functioning is aimed at achieving the common goals of developing a socially oriented market economy.
From a public finance perspective the state is considered not even as a regulatory structure, but in the general range of subjects of economic activity, which should supply society with specific economic benefits with the necessary efficiency in the production of these benefits. The economics of the public sector is also intended to explain how the state finds the means to achieve these goals, how it spends these funds and how its economic activity can become more rational. However, placing the state in the general range of participants in economic activity, given its fundamental difference from other subjects of market relations that conclude their transactions voluntarily, it should be taken into account that the state and its bodies always have the right to coercion within and on the basis of laws.
Public finances function within the financial system of the state and are its central link (Fig. 4.1).
Finance(in a broader sense) is a system of relations regarding the formation and use of monetary funds in accordance with
Rice. 4.1.
distribution function public finance lies in the fact that through the distribution and redistribution of newly created value, national needs are met, sources of financing of the public sector of the economy are formed, the population is provided with public goods in accordance with the requirements of social standards, a balance of budgets and social non-budgetary funds is achieved within a single budget system RF.
Public finances function on the basis of the redistribution of financial resources through a system of centralized funds. The distribution function is used to distribute new value(profit, income in production) at the micro level and the redistribution of value - part of the value of GDP at the macro level.
redistributive process part of the cost of GDP and ND is carried out primarily through finance. It uses tools such as budget spending, taxes, credit, prices. As a result of redistribution, nationwide
Rice. 4.2.
Rice. 4.3. The functions of finance in a socially oriented market ECONOMICS funds are budgets of all levels and social non-budgetary funds. A special role is played by the process of redistribution of income between different levels of budgets.
control function public finance consists in the implementation of budgetary and financial control over real money circulation, in which the state is a participant, as well as the formation, distribution and use of funds of funds.
Because the finances "penetrate" all social reproduction, all its spheres and subdivisions, all levels of management, they act as a universal instrument of control by society over the production, distribution and circulation of the social product. Thanks to the control function of finance, its signals, society knows how the proportions in the distribution of funds are formed, how effective this or that economic model is, how economically and optimally the centralized funds of funds are spent.
The control function of finance always has specific form of expression. It can be directed to a budget of a certain level, a social extra-budgetary fund, an enterprise or an institution. The control function of public finance has two forms of manifestation: control over changes in budgetary and financial indicators, the state of payments and settlements; control over the implementation of the budget financing strategy.
Stimulating function public finance is based on activities aimed at achieving goals in the field of budget management. This function interprets the factors affecting the financial activity and taking into account its need for funds. The implementation of this function is closely related to the intervention of the state in the process of social reproduction.
At the macro level(state) this function will be manifested through financial incentives - the allocation of the most priority effective areas for investing budgetary funds, including budgetary incentives and tax incentives, and financial sanctions - fines, penalties, bringing to administrative responsibility of the main managers, managers and budget recipients in case of violation of budget and tax legislation.
At the micro level(business entities), this function stimulates its activities through the creation of various funds, obtaining installments and deferrals for tax payments, tax credits, budget loans and credits, as well as the application of penalties and administrative sanctions in case of violation of the current budget and tax legislation and payment discipline.
For the emergence finance as a sphere of economic relations, the emergence and coincidence in time at a certain historical stage of a whole complex of conditions (or prerequisites) is necessary, such as:
All these conditions arise under one common premise: a sufficiently high level of production, increasing its efficiency, growing and exceeding the limits necessary for biological survival.
The formation, distribution and use of cash income is the main condition for the emergence of finance.
Financial interests are the interests of the owners of cash income.
For the emergence of finance, a high level of development of the money economy is also necessary, a constant circulation of money on a large scale, the formation and use of the basic functions of money. Financeis the movement of money. Financial relations always affect property relations. This is not only monetary relations, but also property relations. The subject of economic relations must always be the owner. It is by distributing and using the money income, of which he is the owner, that each participant in economic relations can realize his interests.
No serious economic or political decision can be made without a preliminary assessment of the amount of money income required for this. The distribution and accumulation of cash income acquire a target character. The concept of "financial resources" appears. Being money incomes accumulated and distributed for certain purposes, financial resources are used for various social, economic, scientific, cultural, political and other purposes (Fig. 18).
Financial resources- this is the accumulated income intended for specific needs.
Financial resources serve all stages of the movement of cash income from their formation to use.
Since finances are conditioned by the movement of cash income, the patterns of their movement affect finances. Incomes usually go through three stages (stages) in their circulation (Fig. 19):
Finance, as we see, is related to all stages of the formation, distribution and use of cash income. Primary Income are formed as a result of the sale and distribution of proceeds from the sale of goods and services. Since the production process, as a rule, is continuous, it is necessary to allocate part of the proceeds at the stage of selling goods to ensure the continuity of the production process.
primary income is formed as a result of expanded commodity production and is serviced by finance.
Primary distribution is the formation of primary income based on gross proceeds.
The secondary distribution of cash income (redistribution) can occur in several stages, that is, it is of a multiple nature.
As can be seen from the schematic representation of the abstract production process (Fig. 20), any production ends with the primary distribution of money income, without which further distribution is impossible. economic development. And the distribution of money income ( D") is financed. The allocation of financial resources for the expansion of production takes the following forms: payment for current material costs, equipment depreciation, rent, interest on a loan, wages of workers employed in this production. After the primary distribution of monetary income, the processes of redistribution begin, i.e., the formation of secondary income. These are primarily taxes, contributions to insurance funds, contributions to social, cultural and other organizations.
Last stage distribution and redistribution of income - their implementation. Realizable income called final. Part of the final income may not be realized, but directed to accumulation and savings. Nevertheless, there is the following financial equality, which is not violated under any circumstances:
ΣA = ΣB + ΣC,
The distribution process is influenced not only by finances, but also by prices.
Since the process of realizing any goods (goods, services, etc.) into cash income is carried out at certain prices, then price dynamics has an independent effect on the distribution process. The more prices change (both upward and downward), the more money income fluctuates. These shifts are especially sharp in conditions of inflation.
Financial resources as part of cash income appear in various forms. For the real sector of the economy (production), this is part of the profit, for the state budget - the entire amount of its revenue, for the family - all the income of its members, etc.
Financial resources- this is the part of the funds that can be used by their owner for any purpose at his discretion.
Financial resources are offered on the market by a large number of business entities and the population. It is clear that potential users (consumers) of these funds are not able to independently establish business relations with every economic entity, with every citizen. In this regard, the problem arises of combining disparate savings into significant amounts of financial resources that can be offered for use by a large potential investor.
This task is solved financial intermediaries(banks, investment and mutual funds, investment companies, savings associations and
etc.), which accumulate free resources, primarily of the population, and pay interest on these resources. The attracted resources are provided by financial intermediaries as loans or placed in securities. Their income consists of the difference between the interest paid on the attracted resources and the interest received on the resources provided.
Owners of cash savings can transfer their funds to investment companies, or they can directly acquire industrial corporations. But in the second case, they will face intermediaries - dealers and brokers, which are professional participants in financial markets. Dealers carry out operations independently, on their own behalf; brokers act only on behalf of clients and on their behalf.
Timely financial market offers potential investors wide opportunities for investing funds by acquiring monetary obligations of a wide range of business entities. These liabilities are called financial instruments. These include: IOUs, futures contracts, etc. A variety of financial instruments allows owners of funds to diversify their investment portfolio, that is, invest their savings in the obligations of different companies and banks. These obligations will have a different yield, but also a different degree of riskiness. If a company fails, investments in other companies will continue. Diversification of the investment portfolio is carried out according to the principle: "you can not put all your eggs in one basket."
financial relations- these are relations associated with the distribution, redistribution and use of cash income.
The phenomenon of financial relations as a sphere of economic relations in society arises at the stage of distribution of primary income (Fig. 21).
Financial relations, arising in connection with monetary and serving the circulation of cash income, concern almost all individuals and legal entities. Main participants in financial relations are producers of any products (real sector of the economy); budget and non-profit organizations; the population, the state, banks and special credit and financial institutions. In the course of its development, financial relations give rise to credit and exist with them in close relationship (Fig. 22).
Credit relations is part of the financial relationship. Both of them are the result of monetary relations.
Credit relations arise in connection with the provision by one entity to another (physical and / or legal entities) money on terms urgency, return, payment.
The main difference between financial and credit relations is the repayment of funds provided on the terms of urgency, repayment and payment.
Usually isolated three stages of income movement, reflecting the formation of primary, secondary and final income.
Primary Income are formed as a result of distribution (works, services). The amount of revenue is divided into a fund for compensation of material costs incurred in the production process (the cost of raw materials and materials, equipment, rent), the employee and the owner of the means of production. Thus, during the primary distribution, incomes of owners are formed. In addition, the following circumstance should be taken into account: established by the state indirect taxes included in primary income. Therefore, at this stage, state revenues are partially formed.
At the second stage from primary income direct taxes are paid, insurance payments are paid, assistance is provided to the disabled. From the newly created funds of funds, in particular, from various levels of government, funds are paid, which are the costs of non-material workers, doctors, teachers, notaries, employees, military, etc.
As a result of this process, a new income structure is formed. It is made up of secondary incomes formed during the redistribution of primary incomes.
But doctors, teachers, employees, in turn, pay taxes and contribute insurance premiums. These taxes and contributions form funds earmarked for certain payments. These payments may generate tertiary income. It is almost impossible to trace the chain of their formation. The movement of these incomes is a very complex process.
The result of this process, its third and final stage, is the formation of final incomes. They are used to purchase goods and services. A certain part of the income is saved.
The amount of primary income for a certain period is necessarily equal to the sum of final income plus savings. The distribution and redistribution of income means the formation of their new structure. Moreover, this structure reflects economic relations (connections) between economic structures and the state.
At each stage of income generation, funds of funds, i.e. finances, are formed. Consequently, it is finance that mediates the processes of distribution and redistribution of income.
The result of the functioning of the financial system is a changed structure of income.
The distribution process of added(newly created) cost through is shown in Fig. 1. As can be seen from fig. 1, as a result of the distribution of the primary incomes of owners (entrepreneurs and workers), the incomes of workers in the non-material sphere are formed. However, it should be taken into account that in reality the distribution processes are much more complicated than it is shown in Fig. 1. Part of the income of workers in the material sphere is distributed in favor of workers in the non-material sphere directly through the consumption by the former of services provided by the latter. This is how the income of lawyers, notaries, security guards, etc. is formed. In turn, they pay taxes to the budgets involved in the subsequent redistribution of income.
Finance as monetary relations arise at the stage of distribution. But they are the most important link in everything and have a strong influence on it.
control function consists in constant monitoring of the completeness, correctness and timeliness of receipt of income and the implementation of expenditures from all levels and. This function is manifested in any financial transaction. All these operations must not only be economically viable, but must also comply with applicable legal regulations. The control function of finance is expressed in the formation of cash funds (budgets and extra-budgetary funds) in accordance with the proclaimed goals and established legislature standards. This function involves not only monitoring the processes occurring in financial sector but their timely adjustment in accordance with the norms of the current legislation.
The practical expression of the control function of finance is the system. This control ensures the validity of the formation of revenues of the budget system and the spending of budgets and extra-budgetary funds. Financial control is divided into preliminary, current and subsequent. Preliminary control is carried out at the stage of development of forecasts budget revenues and expenditure and preparation of draft budgets. Its purpose is to ensure correct budget indicators. Current control is responsible for the timeliness and completeness of the collection of planned revenues and the targeted spending of funds. Subsequent control is aimed at checking the reporting data about.
Stimulating function finance is associated with the impact on the processes occurring in the real economy. Thus, during the formation of budget revenues, tax incentives for certain industries can be provided. The purpose of these incentives is to accelerate the rate of growth of technologically advanced products. In addition, the budgets provide for expenditures that can ensure the structural restructuring of the economy through financial support for science-intensive technologies and the most competitive industries.
Finance, understood in the broad sense of the word, includes all monetary funds, including loans. Therefore, credit relations are part of finance. is the movement of the loan fund.
You can also define a loan as a system of economic relations regarding the transfer of valuables (including money) from one owner to another for temporary use. Credit relations have their own specifics. The loan is associated with the transfer of the fund of funds for temporary use on the terms of repayment, urgency, payment, security. These conditions distinguish credit relations from other financial relations.
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Introduction
2.1 Essence of finance
2.2The place of finance in the system of monetary relations
2.Finance functions
Finance is one of the most important economic categories, reflecting economic relations in the process of creating and using funds. Finance is more than one thousand years old. In fact, they began their development with the emergence of commodity-money relations, the formation of states, and to this day permeate the actions of people in all spheres of their activity. Financial relations cover that part of the relationship that is associated with the formation and use of funds. Finance does not include money that provides for personal consumption and exchange. Thus, we can say that finance is an economic relationship carried out mainly in cash between the main economic entities - enterprises, households and the state. "Finance", ed. G.B. Pole, UNITY-DANA, 2007.-p.15
Usually, the following functions of finance are distinguished: distributive, regulatory and control. In the main part of the course work, we will consider them in more detail. Also in this course work will be considered theoretical views on the essence of finance, the mechanism of formation of financial resources, their sources and main directions of use.
1. Economic content of finance
1.1 Essence of finance
The term "finance" comes from the Latin word "finansia" - cash payment. Thus, finance is directly related to money. There can be no finance without money. However, finance differs from money, both in content and in the functions performed.
Finance has the following common features.
2. they are linked to commodity-money relations;
3. are a monetary category;
4. carry out the distribution and redistribution of GDP (gross domestic product) and ND (national income);
5. are embodied in real monetary funds, the totality of which constitutes financial resources.
Money is a strictly defined economic category with a pronounced essence and functions; it arises before finance. Money is the universal equivalent. Finances are designated economic relations that arise at the time of the movement of money, when they are transferred or transferred in cash or non-cash. Therefore, financial relations are, first of all, monetary relations. But not all monetary relations can be considered as financial.
Sphere monetary relations are broader than financial relations. Finance expresses only those monetary relations that are associated with the formation and use of funds of funds of business entities and the state.
Finance is the monetary relations of economic entities, including the state, as a result of which the income of the society changes its structure by increasing it in the hands of one entity due to the withdrawal (non-equivalent) of this part from another.2 2 "Finance", ed. G.B. Pole, UNITY-DANA, 2007.-p.16.
Any financial transaction means the transfer of funds between economic entities, users of funds or the transfer of funds to certain monetary funds. In the process of this movement, economic relations arise (for example, when paying pensions, paying taxes). Thus, finance is an economic category; it expresses part of economic relations.
Let's consider this process step by step. At the beginning, conditions are prepared for the emergence of finance, gross domestic product (GDP) and national income (ND) are created. The second stage is distribution. Finances have the form of distributive monetary relations, as a result of which targeted monetary funds are formed. At this stage, we highlight that finance, participating in the distribution of gross domestic product and national income, becomes part of the production process, i.e. a specific form of production relations, the economic essence of finance is manifested here. At the third and fourth stages of the production process of GDP and ND, they are exchanged and consumed, respectively.
1.2 The place of finance in the system of monetary relations
Participating in economic relations, finance interacts with various economic categories, therefore, the boundaries of financial relations are distinguished on the surface - i.e. what operation, instrument of the economy belongs to the financial sector. To determine the boundaries of financial relations, financial science needed to find the distinctive features of finance inherent in financial relations and reflecting their specifics.
1. The monetary nature of financial relations - the basis of financial relations is the movement of real money in cash and non-cash forms.
2. The distributive nature of financial relations. Finance does not involve any form of cash flow. There are two main forms - exchange and distribution. Exchange - when the monetary form is replaced by the commodity one, or the monetary one moves towards the commodity equivalent. During distribution, only the cash equivalent moves, and only in unilaterally, although a refund is allowed after a certain time. This is finance.
3. Financial relations characterizes the one-way movement of value, as a result of which economic entities form monetary savings in the form of monetary funds;
4. Finance covers only those monetary relations that are associated with the formation and distribution of funds of funds.
Finance is an integral part of monetary relations. Finances act in monetary form, but not all monetary relations are financial. Finance differs from money both in content and in the functions they perform. Let's compare financial and monetary relations point by point:
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Money |
Finance |
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1. The total equivalent by which the costs of associated producers are measured 2. Perform five functions: (measure of value, means of accumulation and savings, means of payment, world money) 3. Arise before finance 5. Cover wide economic relations |
1. An economic tool for the distribution and redistribution of GDP and ND, an instrument for controlling the formation and use of funds of funds 2. Perform 3 functions of finance. 3. Arise after money 5. Cover narrower relationships associated with the formation of monetary funds |
Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services, funds of funds are created during their sale. Consider the cases of financial relations within the country and at the international level.
Monetary relations that relate to financial within the country:
1. between enterprises in the process of gratuitous transfers, payment of fines, penalties and forfeits, acquisition of securities, payment of interest and dividends on them, participation in business capital, provision and return of commercial loans, etc.;
2. between enterprises and higher organizations when creating funds of funds and distributing them from these higher organizations;
3. within the enterprise during the formation and circulation of its funds;
4. inside household in the formation and use of the budget of families;
5. between the state and enterprises when making mandatory payments to enterprises in the budget system and financing expenses;
6. between the state and citizens when they make taxes and voluntary payments to the budget system and pay pensions, allowances, scholarships, subsidies and other transfers to the population.
7. between enterprises, citizens and extra-budgetary funds when making payments and receiving funds;
8. between separate links of the budget system, etc.
Monetary relations that are related to financial at the international level:
1. provision of international loans and credits, their return with payment of interest;
2. acquisition (sale) of securities on the world financial market, receipt (payment) of dividends on them;
3. provision (receipt) of international financial and humanitarian assistance to other countries;
4. international leasing;
5. contributions of countries to international (economic organizations);
6. foreign investment to the economy of Russia and Russia to the economy of other countries;
7. gifts and inheritance from foreign and international legal entities and individuals;
8. import into the country (export from the country) of profits and wages received abroad from entrepreneurial and hired activities by legal entities and individuals;
9. foreign insurance;
10. financing of international programs and agreements;
11. financial losses of TNCs between parent organizations and its branches, representative offices, subsidiaries;
12. sale of goods, services abroad, foreign tourism, cultural, sports, scientific and other cooperation mediated by payment in foreign or national currency, creation of international funds;
13. contributions to foreign banks abroad;
14. payment of pensions abroad. Receipt of pensions from abroad;
15. Receiving international and foreign awards, etc.
Finance arises on the basis of the movement of real money in cash and non-cash form. The real movement of money (regardless of the movement of value in the commodity form) is an independent non-equivalent movement, when there is no commodity compensation. In finance, there is an independent one-way movement of money. Money moves irrevocably. Two-way money flow is inherent in the category of credit
Finance differs from a loan in that it is associated with a distribution process carried out on a non-equivalent, irrevocable basis, and a loan is based on urgency, payment, and repayment. Credit easily develops into finance.
The loan completes the distribution process, since the funds of banks are formed at the stage of redistribution. Credit resources are formed as a result of the fact that there is a discrepancy between the availability of own funds and their need. Credit supplements financial resources and allows the process of expanded reproduction to take place.
The main difference between a loan and finance is that bank funds are issued for a certain period, under certain conditions and subject to repayment, while funds for financing are issued for specific purposes, free of charge and irrevocably.
With the help of credit, financial resources are redistributed between enterprises, organizations and citizens. Constantly there is a transfusion of credit resources into financial resources and vice versa. All funds of the enterprise are concentrated in bank accounts and are sources of loan funds of banks for issuing loans. There are many common features between credit and finance, but the main one is the widespread use of both in circulation and in the reproduction process.
2. Functions of finance
Finances have functions that reveal the social purpose of this economic category.
In economics, there is no consensus on the number of functions of finance. Most economists believe that finance performs three functions: 1) distribution, 2) regulatory, 3) control. The essence of finance as a special sphere of distributive relations is manifested primarily with the help of the distributive function. It is through this function that the public purpose of finance is realized - providing each business entity with the financial resources it needs, used in the form of special-purpose funds.
The distributive function is carried out in all spheres of public life: in material production, in the non-material sphere, in the sphere of circulation.
The subjects of distribution at the micro level are legal entities and individuals, at the macro level - the state. The objects of distribution are GDP and ND in monetary form.
With the help of the distribution function, the distribution of new value (at the micro level) and the redistribution of this value (at the macro level) are carried out.
The distribution function covers three consecutive steps:
1) formation of cash funds. At the micro level, the financial resources of economic entities necessary for the circulation of capital and the funds of households are created, and at the macro level - centralized state funds;
2) distribution of funds through financial instruments. At the micro level, separate funds of the enterprise (statutory, wages, depreciation) and household funds are formed for specific consumption; at the macro level, budgets of all levels and off-budget funds arise;
3) the use of monetary funds is designed to ensure, at the micro level, expanded production and the existence of individual members of society, and at the macro level, the improvement of the national economic proportions and the country's national needs.
As a result of the distribution of GDP and ND, society's incomes are created.
During the primary distribution at the micro level, there are basic, or primary, incomes. In the sphere of material production, primary income includes:
1) profit of enterprises;
2) contributions to social, off-budget funds;
3) income of employees.
The formation of the primary income of material production is the initial stage of distribution, determined by the laws of commodity production. Primary distribution continues at the macro level and ensures the creation of secondary, or derivative, income. The need to redistribute ND is related to:
1) with intersectoral and interterritorial redistribution in the interests of the most efficient and rational use of income and savings of enterprises and organizations;
2) with the presence of two spheres - production and non-production (education, health care, social security, management, defense, where no ND is created);
3) with the existence of various social groups of the population.
The redistributive process of GDP and ND is carried out primarily through finance. In this case, such instruments as expenses, taxes, credit, prices are used. As a result of the redistribution, national funds are formed - budgets of all levels and extra-budgetary social funds. Income generated in the course of such a redistribution should provide persons who are not employed in the sphere of material production or who do not participate at all (have no opportunity to participate) in the labor process.
The redistribution of national income in the Russian Federation is taking place in the interests of structural restructuring of the economy, the development of priority sectors of the economy (agriculture, transport, energy) in favor of the least well-to-do strata of the country's population.
Thus, the distribution function of finance allows:
1) form monetary funds at the level of the enterprise and household, as well as the state;
2) to form not just cash funds, but special-purpose funds;
3) to carry out intersectoral, interterritorial redistribution, as well as between spheres and social groups;
4) create the necessary reserves, both at the level of enterprises and the state.
control function. Finances associated with the movement of the monetary form of the value of GDP have the property of quantitatively displaying the reproduction process through financial resources. The essence of financial control is to inform the public about all problems in economic and monetary relations. The control function, which visually represents the reproduction process, signals the emerging deviations in the proportions of the distribution of GDP and ND, in the timely and complete formation of target funds, in the provision of the necessary resources for the production process.
The control function of finance is manifested:
1) before the onset of the distribution process, when programs, forecasts, budgets are drawn up;
2) in the process of using funds of funds, in the implementation of the planned programs, plans, estimates;
H) in the process of summing up, compiling assessments of the implementation of plans.
The control function is implemented through:
1) financial and economic control at individual enterprises, based on the implementation of business contracts, the implementation of commercial settlement;
2) financial and budgetary control, when making tax payments and making financing from budgetary resources;
H) credit and banking control, using the principles of lending and cash settlements.
4) independent audit and public control,
5) insurance control by insurance companies upon the occurrence of an insured event and payment of compensation.
The regulatory function is expressed in the fact that with the help of finance it is possible to influence the behavior of participants in monetary relations. The regulatory function of finance is used:
at the micro level - at the enterprise to stimulate its activities, creating various funds that help improve the quality of the production process, increase its volume, improve financial situation working;
and at the macro level, the state, using public spending, taxes, state credit, achieves the same results. The credit policy of the state, monetary policy are tools to influence the situation within the country and interstate relations with the help of finance.
Also, among economists, there is an opinion that finances have such functions as stimulating, stabilizing, reproductive.
The stabilization function of finance is realized in the conditions of market relations. Its content is to ensure stable conditions in economic and social relations for all economic entities and citizens.
The incentive function is to use the distributed income either to expand production or for savings and social needs. The state, with the help of a system of financial leverage, influences the development of industries and enterprises in one direction or another. Financial leverage can be: the budget, prices and tariffs, taxes, export and import duties.
The reproductive function ensures the balance of labor, material and monetary resources at all stages of simple and expanded production.3 3 "Finance and Credit". Levin U.P. - M.: Infra-M, 2005. - P. 38 In the context of the reproductive function, finance not only distributes, but also serves the circulation of funds, providing the reproduction process with monetary resources.
According to the author of this work, the stimulating and stabilizing functions are variations of the regulatory function. Also, the reproductive function is a derivative of the distributive function of finance: the circulation of funds is provided by cash through the distributive function of finance. Therefore, there is no reason to separate them into separate functions.
Some economists believe that finance has three functions: the formation of funds (income), the use of funds (income) and control. However, the first two, although they really exist, are more reminiscent of a mechanism for implementing a distributive function than an independent mode of operation of the category of finance.
Finance functions are carried out:
· at all levels of management of the economic system (Federal, territorial, local);
in all spheres of public life material production, sphere of circulation, sphere of consumption);
· at all levels economic system(intra-economic - finances of enterprises, intra-industry - finances of complexes, inter-sectoral and inter-territorial - the state budget and extra-budgetary funds).
3. Financial resources and financial funds
3.1 The concept and composition of financial resources
Financial resources are a complex economic category that cannot be fully identified with cash. At the same time, it is rather difficult to single out a clear criterion on the basis of which it is possible to establish the quantitative boundaries of financial resources and characterize their specifics, in contrast to the category “cash”.
Financial resources are an objective macroeconomic category, the content of which is determined by the conditions of the material and financial balance of the economy. The equality of receipt and expenditure of financial resources indicates that the effective demand of enterprises, which is formed as a result of financing development costs national economy and functioning public institutions, has a material coverage, since it corresponds to the created financial resources. Therefore, the condition of material and financial balance can be represented both in the form of a correspondence between the amount of financial resources and the volume of material goods, and in the form of balance equality of their receipt and expenditure.
There are subjects and objects of financial resources. The subjects of financial resources are households, enterprises, states. The objects of financial resources are centralized and decentralized financial resources. Centralized financial resources are formed at the micro level, decentralized - at the macro level.
The financial resources include:
1) Own funds:
a) at the level of enterprises and households - profit. salary, household income,
b) at the state level - income from state-owned enterprises, privatization, as well as from foreign economic activity;
2) mobilized in the market: purchase and sale of securities, Bank loan- for enterprises and households; at the state level - issue of securities and money, state credit.
3) Funds received in the order of redistribution "at the level of enterprises, interest and dividends on securities issued by other owners; at the state level - taxes, fees, duties.
Determining the essence of financial resources, it is advisable to proceed from their functional purpose in the process of expanded reproduction of GDP and ND. This process is characterized by the movement of commodity and money supply, consists of several stages, at each of which commodity and cash flows correspond to each other in different ways. At the initial stage of the movement (production) of GDP and the final (its use), cash flows mediate commodity flows. At the stage of distribution and redistribution, the monetary form of expression of GDP acquires a relatively independent movement, since it is at these stages that financial relations arise. As a result, various monetary funds are formed, they are regrouped and final incomes are formed. This is how the volume and structure of national production and the needs of the national economy are coordinated, which in practice is calculated as GDP in terms of expenditures and GDP in terms of income.
Part of the money turnover is strictly coordinated with commodity circulation, since it is realized as a result of the exchange of equivalents. Expressed in commodity form from the seller and monetary form from the buyer. When exchanging equivalents, there are no conditions for material and financial imbalance in society.
Another part of the money turnover is connected with the needs of expanded reproduction of GDP. They are provided in the process of its distribution and redistribution with the help of finance. This part of the cash flow represents financial flows, i.e. the movement of those funds that can be spent on the development of the national economy and the satisfaction of national and social needs.
A specific feature of financial flows, in contrast to cash flows, is their non-equivalence. As a result, it is finances in the process of distribution and redistribution of GDP that give rise to an independent movement of money, which is the basis for the material and financial imbalance of the national economy. Thus, financial resources are a quantitative characteristic of the financial result of the reproduction process for a certain period. These are the funds that it is lawful to direct to compensate for the retirement of fixed assets, productive and non-productive accumulation, and collective consumption. This macroeconomic indicator has a balance character, since it can be presented as the sum of both income and expenses.
The specific content of financial resources is due to the fact that they act as:
a. as funds of accumulative nature, which are formed as a result of the production, distribution and redistribution of the gross domestic product;
b. as final income, i.e. money that is intended to be exchanged for goods and services;
c. as those incomes that have material coverage, since they are formed as a result of the sale of goods and services;
d. as sources of their formation (constituent elements): depreciation, profit, tax revenues. Non-tax revenues, capital transfers, target budget funds, state off-budget social funds, other receipts;
e. as final financial results reproduction process, since they are used to finance capital investments and overhaul fixed assets, working capital gains, purchases of equipment and durables for budget organizations, expenses for social and cultural events, science, defense, maintenance of public authorities and administration, etc.
It is illegal to include short-term credit resources in the composition of financial resources, since their formation is not associated with the creation of new material goods, but occurs as a result of the redistribution of financial resources.
Savings of the population in the form of an increase in the deposits of the population in commercial banks in their economic essence, they are a source of financial resources, since in the material aspect (in terms of the correspondence between the effective demand of the population and the resources of the product offer and the volume paid services) they correspond material resources, equal to deferred demand in ND.
So, the financial resources of the country are part of the GDP and can be represented as the sum of the following indicators of the system of national accounts (SNA): gross profit of the economy, contributions to state off-budget social funds, taxes on production and imports, taxes on individuals, household savings, loans received from foreign countries.
Thus, with the help of financial resources, that part of the GDP is allocated, which can be directed to the expansion of the socio-economic system as a whole. With their help, in the composition of the produced GDP, a part is distinguished that corresponds to the current costs of materials and labor consumed in the production process, and a fund for the expanded reproduction of production factors, including labor. From this point of view, it is legitimate to include society's expenditures on health care, education, social policy, etc. into the expanded reproduction fund.
3.2 Financial funds
Financial funds - monetary funds formed at the expense of financial resources. The purpose of financial funds is to prepare conditions that ensure the satisfaction of constantly changing financial needs. "Finance, Money Circulation, Credit" under. ed. G.B.Polyak. M: Infra-M, 2001, S. 507
Monetary funds are owned either by the state - a centralized sphere, or by legal entities and individuals - a decentralized sphere.
In the process of functioning, monetary funds use various monetary funds (aggregates): cash (banknotes, treasury notes), non-cash money, securities in the form of shares, bonds, bills, options, etc.
Cash, being in constant motion, creates cash flows that require a clear organization of cash settlements. The complexity distinguishes between unilateral, bilateral and multilateral cash flows.
In one-way flows, cash flows in one direction. For example, funds listed from federal budget RF go to Pension Fund to finance his expenses.
Bilateral cash flow involves the movement of funds between two
The budget receives taxes from enterprises, but under certain conditions, enterprises can receive budget resources in the form of grants or loans.
Multilateral flows simultaneously cover different parts of finance and flow in different directions. The household budget is formed from income from various sources (enterprises - the head and another family member receives a salary in this enterprise, budget - transfer payments); on the other hand, the household pays taxes to budgets, to off-budget funds.
The financial flow is a reflection of the material flow, therefore they are different in nature. The financial flow is always directed against the movement of the material flow. The material flow consists of many diverse elements, and the financial flow of the same - price units and does not depend on the form of their presentation. The material flow depends on very many independent objective circumstances, as a result of which it is generally irregular, discrete and stochastic and, as a result, uncontrollable. The financial flow as a whole for turnover is regular, continuous and deterministic, as a result of which it is quite stable and manageable.
World financial flows -- interstate cash flow, serving the international trade turnover and the international movement of capital. In the world economy, there is a constant overflow of money capital, which is formed in the process of capital circulation. The core of the world's financial flows are the material processes of reproduction. A number of factors influence the volume and direction of these flows: the state of the economy; mutual trade liberalization; structural adjustment in the economy.
World financial flows serve the movement of goods, services and cross-country redistribution of money capital between competing subjects of the world market. In addition, they give signals about the state of the conjuncture, which serve as a guide for decision-making by managers.
The movement of global financial flows is carried out through the following main channels:
1) Currency and credit and settlement services for the purchase and sale of goods and services;
2) Foreign investments in fixed and working capital;
3) Operations with securities and various financial instruments;
4) Currency transactions;
5) Redistribution of part of the national income through the budget in the form of assistance to developing countries and government contributions to international organizations, etc.
4. The evolution of theoretical views on the essence of finance
4.1 Development of theoretical ideas about finance in Russia
Financial science as an independent phenomenon began to take shape in Russia at the beginning of the 19th century. During this period, the first major works in the field of finance appear. The beginning of Russian financial science was laid by the book of N.I. Turgenev "Experience in the theory of taxes" (published in 1818), in which for the first time in Russia the features of taxes, their significance for the state economy and the entire economy of the country were studied.
The heyday of Russian financial science came at the end of the 19th and beginning of the 20th century, when the most famous works of Russian economists and lawyers I. Yanzhul, I. Ozerov, I. Kulisher, P. Khodsky, V. Lebedev, S. Ilovaisky and others were published.
Russian financial scientists developed both theoretical and practical issues of financial science. In theory, they were adherents of a pragmatic approach, supporters of the theory of "satisfaction of collective needs."
The main place in the works of scientists was occupied by the study of public finances (it should be noted that in the works of this period, even the question of the finances of the private economy is practically not mentioned). At the same time, the issues of state revenues were studied in sufficient detail. Another area that was studied in detail by pre-revolutionary financiers is the budget and finance.
In the same period, a social democratic trend in economics developed, which was provided by the Russian followers of K. Marx and F. Engels. The most prominent representative of this trend was V. Lenin. The main content of the pre-revolutionary works of V.I. Lenin - criticism of the financial policy of Russia. In 1917 V.I. Lenin developed the economic platform of the Bolshevik Party. It provided for the nationalization of the insurance business, the termination of the issuance paper money, refusal to pay domestic and external debt, changes in the tax system by introducing a high property tax and a tax on property gains, reform income tax and the establishment of effective control over the income of capitalists, the introduction of high indirect taxes on luxury goods. Almost all measures, with the exception of monetary circulation and the reform of the tax system, were carried out after the October Revolution.
In the future, the study of V.I. Lenin financial problems were mainly connected with the tactical tasks that arose before the state. He most actively worked out the issues of financial control, the creation of a new financial apparatus, the strengthening of the state's financial position, the implementation of the monetary reform and the implementation of the state's financial policy at various stages of post-revolutionary development. An analysis of the works of Lenin and other Marxist scholars of the early 20th century shows that a holistic study of the content and role of finance and the main financial categories has not been carried out. All this led to the fact that in the first post-revolutionary period, the study of finance was based mainly on the works of pre-revolutionary economists.
With the transition to directive methods of managing the economy and finance, there is a need to streamline and unify scientific ideas about finance, and to subordinate them to the class struggle. The result of this is the creation of the science of finance in the USSR. The period of formation of this science was quite long - from the end of 1920 to the beginning of the 50s. In the first period (1926-1931), the private issues of finance that arose during the implementation of the first five year plan. But at the same time, attempts were made to generalize the new phenomena of the socialist practice of finance. These are the works of D. Kuzovkov, A. Bukovetsky, D. Bogolepov. Despite the active use of socialist phraseology, the content of finance in these authors stems from the theory of "satisfaction of collective needs", which was advocated by pre-revolutionary Russian economists. All this led to the fact that none of the theory of finance became officially recognized and supported, which was the main thing for its development in that historical period in the USSR. The second period in the development of Soviet financial science (1931-1956) is characterized by the formation of common views on the subject of finance. The classic of this period is V. Dyachenko, who developed the foundations of the theory of finance in his numerous works.
The study of applied issues of financial science was carried out during this period mainly in two directions: firstly, the study of the history of the development of financial categories, these are the books of K. Plotnikov, dedicated to the history of the budget, A. Zverev and A. Voznesensky, covering the development of finance during the Great Patriotic War wars; secondly, disclosing current financial practices.
Elimination of dogmatic phenomena in economic theory put an end to unanimity in Soviet financial science. Late 1950s - early 60s. there are numerous works of economists devoted to economic theory. At the same time, a fundamentally new type of applied financial research, which are of a critical nature and contain developments to improve individual financial instruments.
For the first time, the problems of enterprise finance were considered in the works of A. Birman. He developed the issues of using financial categories in the conditions of economic accounting, which, in the author's interpretation, represented the elements of a market economy under socialism, studied the content of financial resources, financial management of enterprises. Birman's work gave impetus to the study of enterprise finance in the work of economists in the 1960s and 80s. (P. Bunich, G. Bazarova, V. Senchagov, S. Sitaryan, M. Romanovsky).
budget and budget device was studied in two directions: the development of budget revenues and expenditures, the organization local budgets. The main works on this topic belong to economists: S. Sitaryan, Y. Lieberman, V. Rodionova, G. Polyak, G. Shekhovtsev.
In the field of insurance, theoretical studies proceeded from the interpretations of K. Marx about the necessity, content and role of insurance funds and therefore did not have sufficient novelty. In addition, the study of insurance was extremely negatively affected by the state monopoly on the insurance business. The work is of some interest. L. Motylev, L. Reitman, E. Kolomina, V. Shakhov.
Much attention was also paid to the study of financial relations of foreign states. The works of B. Boldyrev were devoted to the development of the finances of capitalism. L. Drobozina, L. Pavlova, D. Butakov.
Describing the current state of financial science in Russia, it should be noted the practical absence of deep theoretical and practical works in this area. The works of some authors are more descriptive than methodological and methodological in nature, others direct their efforts to adapt existing views and tools to modern conditions, the works of others are a compilation of the works of foreign authors.
Among Soviet economists, discussions on the theory of finance concerned two concepts concerning the place of finance in the system of expanded reproduction.
Supporters of the distributive concept were such scientists as V. Dyachenko, G. Tochilnikov and M. Shermenev. They were of the opinion that finance is a system of relations of distribution of funds, which is of a non-equivalent nature, influence indirectly through distribution on the relations of production, exchange and consumption of material goods. Thus, finance can arise only at the stage of distribution, since this stage differs from all the others in that here there is a one-way movement of the monetary form of value, its isolation from its natural-material embodiment.
According to the reproductive concept, finance is the relationship of all four or several stages of reproduction, actively directly involved in all these stages. Finance here arises when newly created enterprises are provided with production assets. Financial relations are manifested in the form of the allocation of wages, depreciation, etc. from the cost of state budget revenues. Finance provides for the needs of reproduction due to the accumulation of funds in the form of special-purpose funds. Supporters of this point of view were A. Alexandrov., A. Birman., E. Voznesensky.
4.2 Views of foreign economists on the system of financial processes
In the West, first of all, it was about the production of private and public goods, i.e. about the functions of the market and the state in national economy. In other words, questions were raised about the need for the participation of the state in the economy, about the boundaries of its intervention in the economic activities of companies, the population (market), about the indicators of its economic efficiency etc.
The first school of political economy - mercantilism (16th-18th centuries) - became the spokesman for the interests of the merchants, who developed world trade, and to whom the state was supposed to help in expanding their international activities. Mercantilism is characterized by two features: wealth is identified with money, and the accumulation of monetary wealth is associated with the active role of the state, with strong state power.
In contrast to the mercantilists, Adam Smith (1723-1790) in The Wealth of Nations (1776) emphasized the importance of the state in terms of, firstly, the protection and protection of private property from encroachment by both other members of this society and foreign countries and , secondly, the production of goods that are not beneficial to private producers. David Ricardo (1772-1823) dedicated his main work "The Principles of Political Economy and taxation» (1817) analysis of the foundations of taxation. John Stuart Mill (1806-1873) in "Principles of Political Economy" (1848) came close to understanding the "failures" (inefficiency, inability) of the market, substantiating the need for state intervention in economic life society.
However, in the 30s of the 19th century. The liberal doctrine was divided into two directions: the classical liberal one, which defended the freedom of enterprise and non-interference of the state in the economy, and the modern reformist liberal concept, which, without abandoning basic liberal values, advocated the active role of the state. At the head of this interest were I. Bentham, J. Mill, D.S. Mill.
As the struggle against feudal ideology receded into the background, the philosophy of the economy was replaced by practical recommendations. Alfred Marshall (1842-1924) assigned a more modest role to the state. In particular, only the last, fifth book of the Principles of Economics (1890) was devoted to the analysis of the state. In it, he covered the traditional issues of taxation, although he chose new aspects - the problem of shifting the tax burden.
Criticism of state intervention in the economy was substantiated in the works of Leon Walras (1834-1910) “Essays on social economy. Theories of the distribution of social wealth” (1896). He advocated minimizing the role of the state, whose functions should be limited only to the production of public goods and control over monopolies. Such a limitation economic functions allows you to reduce the level of taxes, the main of which, according to Walras, should be taxes not on income, but on property.
However, a real revolution in economic theory was made by John Maynard Keynes (1883-1946) (1883-1946) published in 1936 "The General Theory of Employment, Interest and Money". His name is associated with the birth of a new trend in Western economic thought - Keynesianism, which put the problems of economic and financial policy of the state in the center of attention. Keynes advocated efficient demand, deficit financing, and cyclical balancing of the budget.
In the 1970s-1980s. new directions of neoclassicism noticeably pressed Keynesianism. Among them were monetarism, a school of economic thought that focuses on changes in the amount of money in circulation as a determining function of prices, income, and employment, as well as new classical economics, public choice theory. The main postulates were free enterprise, restriction of state regulation, "supply economy".
Conclusion
The formation of the foundations of financial science took place in the process of development by European scientists of the old and new political economy on the problem of interaction between the market and the state, their role in the national economy, factors on which the strengthening of market or state methods of regulating entrepreneurial activity depends.
Long path of historical development economic activity confirmed the pattern common to any economy: in the end, those forms of organization of social reproduction remain in society, as well as those of its participants who turned out to be the most productive, effective in their field of activity. In this case, we are talking about both the forms of organization of production (private or state, individual property or corporations, etc.), and the main participants in economic processes. In modern conditions, these include households, enterprises and the state. The emergence of finance is associated with the emergence, development and activities of one of them - the state.
Finance is an economic instrument that regulates the production and distribution of goods through the resource market and the product market. This is an integral element of social reproduction at all levels of management; they are equally necessary for the lower level - enterprises, and inter-farm associations (associations, concerns), and state system management of the national economy.
Finance is one of the most important economic categories, reflecting economic relations in the process of creating and using funds.
One of the main features of finance is their monetary form of expression and reflection of financial relations. real movement Money.
The area of origin and functioning of finance is the second stage of the reproduction process, at which the value of the social product is distributed according to its intended purpose and business entities, each of which must receive its share in the product produced. Therefore, an important feature of finance as an economic category is the distributive nature of financial relations.
In financial science, there are a number of debatable issues and, above all, the question of the economic nature and boundaries of financial relations. The issue of qualitative features that determine the specifics of finance as an economic category and the functions of finance is also among the debatable ones.
Availability controversial issues necessitates further development of theoretical problems of the essence and functions of finance. A deeper knowledge of the economic nature of finance and its inherent properties will allow us to actively develop ways to better use this category in business practice, to scientifically substantiate measures aimed at financial recovery of the economy and improving the system of financial relationships.
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