Finance as a value category expresses. Cost category of finance

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When finance turns into an adjective (financial funds, financial resources, etc.), then finance becomes money. In economic theory, money is needed for the reproduction process.

There are certain problems with the financial system:

1) poor fundraising;

2) expenses determine priorities in the distribution of funds;

3) budget balance.

Finance is a system of economic (monetary) relations through which funds of funds are created and spent.

Finance- a set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, and satisfaction of social and other needs.

The historical nature of the category means that

1 - until a certain period of time there was no category;

2 - appearance;

3 - development;

4 - disappearance.

Finance- "finance" (Latin) - cash payment. This course examines the relationships associated with cash flow.

Cash payment is a relationship between subjects; therefore, finance as an economic category is a set of relationships. These relationships are characterized by certain characteristics. Relationships exist between the subjects of the reproductive process. They arise at all stages and levels of society. It is as a set of certain relations that they form an economic category.

Public relations- relationship between people. Economic relations are associated with the process of creation and movement of value.

At the stages of production and consumption, there is no movement of value, so they are not the place where finance arises.

At the third stage of the distribution process, distribution takes the form of movement of goods. The movement of goods itself is mediated by the movement of funds and the value is not alienated, but changes its form. At this phase, the economic category price is decisive and at this stage the price distribution of value occurs.

In the second phase of the reproductive process, the distribution of GP occurs. This distribution is characterized by the fact that it takes the form of a movement of funds passing from one hand to another and here the alienation of value in its monetary terms occurs. The movement of funds occurs separately from the movement of goods. At the distribution stage, specific monetary relations are carried out.

This specificity is expressed in relations expressing the one-way movement of value. Monetary relations receive social forms of formation. And thus they are expressed in certain economic categories:

Wage;

Finance.

At the third stage of the reproduction process, monetary relations have a different specificity: the counter-movement of material and monetary forms of value. Monetary relations are expressed in different forms of payment: acceptance, letter of credit, etc., and here there are mainly two categories: money and price. In the process of transferring forms of value between business entities, financial resources are formed.

The need for finance in the conditions of commodity-money relations is explained by the fact that finance is necessary to distribute the value of the social product. This process is carried out only with the help of the category of finance.

Finance deals with the distribution of created value in monetary terms. Depending on how we distribute, the reproduction process will depend. Certain proportions are necessary, and the main proportion depends on how we divide the national income.

Finance as a system first appears at the second stage of reproduction - at the stage of distribution. The distribution of a product occurs between the owner of this product and the one who produced it.

SOP(total social product) = C+V+M

C-- main capital

V-- salary

M-- profit

Ffinance functions

· distribution (distributes the created product; funds are created using this function);

· redistribution (redistribution of the created product, i.e. secondary distribution between members of society);

· regulating (finance can both stimulate production and suppress it);

· control (thanks to finance, society has the opportunity to observe all financial flows in the state in order to influence a particular product in a timely manner).

Another interpretation (according to Rodionova’s textbook) is that the functions of finance are as follows: distribution and control, and the rest are derived from the distribution function.

Distributive function

Distributive function- the objective property of the category of finance to distribute the value of the created product in monetary terms.

The redistribution stage differs from the distribution stage in that at this stage previously created incomes are redistributed.

Control function

The control function of finance is responsible for ensuring compliance with proportions in the distribution process. The proportions for different industries are different and are added up under different conditions and, therefore, they are objective. The object of control is the distribution process. The main controlled proportion is the proportion between accumulation and consumption funds.

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

New aspects have appeared in the theory of finance. One of them is the stimulating function of finance.

Signs of finance

1). Finance is of a monetary nature, but there are situations when natural goods also circulate in the financial system.

2). Financial relations are distributive in nature.

3). Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources.

Financial source > financial resources > financial funds.

The relationship of finance with other economic categories

First of all, it is important to know the relationship between finance and such economic categories as price, wages, and credit. And also, in what sequence these categories enter the distribution process.

1. PRICE. It is she who first enters the distribution process and determines the primary proportions in it. Price fluctuations around value create a field of activity for finance.

The price contains all structural parts of value, which are further distributed and receive their economic forms in the form of financial resources and funds. Under conditions of strict centralization, the share of wages is smaller; the share of additional payments to wages is larger. In a democracy: wages are basic, and additional payments are much less. We have socially necessary and individual costs. The difference between them translates into profit. Price prepares the conditions for the functioning of finance. Either funds accumulate at the enterprise, but then the amount of taxes increases, or the social product grows, which leads to the release of resources that move to industries with the highest rate of profit.

Finance specifies those proportions that are included in the price. Financial distribution differs from price distribution in that the object of price distribution is only part of the value of the gross social product (the one where the price deviates from the value). Finance distributes the entire value of the gross social product. In relation to price distribution, financial distribution is secondary. The price distribution is invisible on the surface; it is hidden in the total amount of revenue. Financial distribution is clearly visible. Price distribution deals only with distribution, while financial distribution deals with distribution and redistribution.

2. SALARY. Following the price, within the financial distribution, wages begin to function. Finance creates the conditions for rationing the wage fund and other wage funds. These categories create the prerequisites for the reproduction of labor; in interaction they stimulate the reproductive process.

Differences between salary and finance:

1. The boundaries of financial distribution are much wider; wages concern only compensation of costs.

2. Finance participates in the one-way movement of value, and wages participate in its counter movement.

With the help of wages we fully distribute ( V) and partially ( M).

With the help of finance, many funds are formed, and with the help of wages, the wage fund and bonus fund are formed. They make up the wage fund. Salary is the basis for paying taxes. The source of wages is financial resources, and the wage fund, when saved, itself becomes a source of financial resources.

3. CREDIT. Bank funds are formed at the stage of redistribution, i.e. credit completes the distribution process. 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 occur.

Peculiarities:

1. bank funds are issued for a certain period; under certain conditions and subject to repayment.

2. financing funds are issued for specific purposes; free irrevocably.

With the help of a loan, financial resources are redistributed between enterprises, organizations and citizens.

There is a constant flow of credit resources into financial resources and vice versa. All enterprise funds are concentrated in bank accounts and are sources of bank loan funds for issuing loans. There are many similarities between credit and finance, but the main one is the widespread use of both in the circulation and reproduction process.

Using finance in market conditions

Objective prerequisites and possibilities for using finance

Finance, being an instrument of the second stage of social reproduction, can influence all stages of reproduction and the process as a whole. Objective prerequisites for influence are associated with two circumstances:

1. Finance functions in all spheres of social production (production, circulation, consumption)

2. Finance has the potential to be a catalyst for economic processes (which follows from the distribution function). Distribution begins in the sphere of material production. This area includes 4 stages, where the production stage is decisive.

A). The sphere of material production. Thus it influences the nature and scale of production.

b). Scope of circulation. It is represented by trade. It is characterized by buying and selling processes. The consumer properties of a product do not change, but its cost does. The product is sold, and the enterprise receives revenue (D"). Then this revenue is distributed to compensation, accumulation, and consumption funds. Financial relations precede and complete the process of purchase and sale.

V). Sphere of consumption. Where allocated:

Commercial organizations;

Budgetary organizations

Currently, you can find mixed-type organizations where commercial structures allocate money for budget organizations.

Along with the prerequisites, there are possibilities for using finance. They arise from the economic nature of finance. Since this is a distribution category, society uses it for its own purposes. The conscious use of finance in the interests of society and its individual elements transforms finance from an objective economic category into an economic management tool.

Economic instrument is an economic category embodied in specific forms of manifestation and consciously used by society to achieve specific goals. An economic instrument, including finance, has two principles: the first is objective (arising from the economic category), the second is subjective (an instrument for implementing the state’s economic policy).

Finance influences in two ways:

quantitatively (characterized by the proportions of the distribution process)

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

As an economic instrument, finance influences social reproduction in two ways. The qualitative side of influence is characterized by proportions in the distribution process. Qualitative influence characterizes the impact of finance on the material interests of business entities, through various forms of organizing financial relations.

The qualitative side affects the social product and is associated with the transformation of finance into a stimulus for economic development. Such a transformation is possible when the procedure for generating income, the conditions and principles for the formation of funds, and the directions for their use can be closely linked with the economic interests of business entities.

An economic incentive is a tool that is linked to the material interests of business entities. The conscious use of finance in social production leads to results that demonstrate the active role of finance in social production under market conditions. A general approach to assessing the results achieved with the help of finance allows us to consider the role of finance in 3 directions:

1) from the position of providing the needs of expanded reproduction with the necessary financial sources;

2) from the point of view of using finance to regulate the cost structure

3) from the position of using finance as an economic incentive.

Gpublic finances

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

Public finances include:

1). Budget is an economic category represented by monetary relations that arise between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budget fund, intended to finance the national economy, socio-cultural needs, defense needs and public administration.

2). Extra-budgetary funds are a specific form of redistribution and use of financial resources raised to finance certain public needs and used comprehensively on the basis of the organizational independence of the funds.

Sources of formation

a) special targeted taxes, loans and income from cash and clothing lotteries;

b) subsidies from the budget;

c) additional income and saved financial resources

d) voluntary contributions and donations.

Extra-budgetary funds guarantee the targeted use of resources in the full amount of their receipts and timely financing of the most important social activities; they act as a financial reserve to which government authorities resort in case of financial difficulties.

3). State credit is a monetary relationship that arises between the state and legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of public authorities and their use to finance public expenditures.

Forms of government credit:

Government loans;

Treasury loans.

Fstate financial policy

Money circulates in 3 areas: at the state level, at the level of the banking system (credit policy) and at the level of the financial system.

Financial policy- purposeful activities of the state to use the financial system. Financial policy is used to solve problems facing the economy. This is a superstructural concept. In the process of its development, material conditions are provided for the implementation of the assigned tasks. In the process of developing financial policy, material conditions are provided for the implementation of the tasks assigned to the country. That is why financial policy is an active tool for influencing the economy.

Financial strategy- a long-term course of financial policy, calculated for the future and involves solving large-scale problems that are determined by economic and social strategy. In the process of developing a financial strategy, the main directions of financial development are predicted, the principles of the use and organization of finance are outlined, and the issue of the need to concentrate financial resources in those areas of economic development that are developed and adopted by economic policy is resolved.

Consequently, financial policy, as an integral part of economic policy, solves the problems of finding, concentrating and accumulating financial resources and their distribution along the areas of development that are developed by economic policy.

Financial tactics- solving problems at a certain stage of the country’s development and ensuring this development through timely changes in the ways of organizing financial resources aimed at solving financial policy problems. Financial tactics are more flexible, as they are determined by the mobility of economic conditions and social factors.

Financial strategy and financial tactics are interconnected. The strategy creates conditions for solving tactical problems, and also identifies critical areas of development and brings it into line with the methods and forms of organizing financial relations and interrelations. Financial tactics allow you to solve the problems of financial strategy in a shorter time and at the lowest cost.

Financial policy is generated by economic relations, since society is not free to develop financial policy, it proceeds from its capabilities, the conditions of objective reality. Financial relations have their own specific laws of development. Its logic has the opposite effect on the development of finance: it accelerates or slows down the economy.

Financial policy is aimed at concentrating financial resources and solving real problems; this is what allows the state to actively influence social production. The impact of financial policy on the economy and social development of society requires that financial policy be implemented on the basis of scientifically sound theory. The experience of economic development has shown that the separation of financial policy from the economy hinders the implementation of those tasks that need to be solved for the development of society.

Financial policy can be progressive when it is based on scientific developments and the scientific approach serves to ensure that financial policy is inseparable from real financial relations.

The scientific approach assumes:

1. Compliance of financial policy with the objectively natural development of production, therefore the availability of reliable information is important.

Such information should contain information about the processes taking place in the economy, in the social sphere and reflect the results of ongoing activities. Information forms the basis for developing effective financial policies. The need to comply with feedback principles is the basis for correct financial policy.

The general direction of financial policy should be focused on increasing economic efficiency and have as its goal an increase in the volume and efficiency of use of financial resources. The growth of the financial productivity indicator indicates the effectiveness of financial policy. When developing financial policy, they take into account the conditions and activities that were carried out taking into account the specifics of each specific stage of development of the country's economy. If financial resources are not taken into account, this will lead to a budget deficit. When developing financial policy, it is necessary to take into account experience and use conditions specific to a given situation, since copying someone else’s experience does not give effective results in each specific situation. Decisions must be made on the basis of calculation and clear anticipation of the consequences of the measures taken. An important requirement is compliance with an integrated approach to the implementation and development of financial policy. Coordination should be aimed at the main tasks. It is important to consider price, wage and credit policies. If there is no consistency, then positive results cannot be achieved. Financial policy, being an integral part of economic policy, has specific ways and methods for solving assigned problems. Different ways to achieve results can be used: forecasting and studying the results of activities.

Functions of financial policy:

From the point of view of the internal content of financial policy, there are 3 components:

1) development of a scientifically based concept of finance for the long and short term.

2) determining the main directions for using finances in the current year and in the future.

3) implementation of practical actions to achieve the goals.

Ufinancial management

financial monetary policy state

Financial management- a set of techniques and methods of influencing an object to achieve certain goals.

Finance can be considered as an object and subject of management. If they are considered as a subject of management, it is clear that they play an active role in managing the economy. And in this understanding, we are dealing with finance as a tool for economic management. On the other hand, finance is an object of management, where finance acts as an objective economic category that requires finance to be managed through knowledge of the capabilities and properties of this category. It follows that without managing finances, financial relations, and specific forms of manifestation of the category of finance, it is impossible to develop the economy. And the specific object of management is the sphere of financial relations or financial relationships that materialize in financial resources.

Financial objects are various types of financial relations.

Objects include:

Insurance relations;

Public finances, etc.

Financial subjects are organizations. who organize and carry out this management.

Subjects include:

Financial services, departments and bodies that exist in the enterprise;

Financial authorities of the state (such as the Ministry of Finance, financial ministries of the republics);

Tax inspections.

Functional controls

Element 1. Planning is an assessment of the state of finances, identifying the possibility of increasing financial resources.

Element 2. Operational management is a set of measures that achieve maximum efficiency at minimal cost.

Element 3. Control - comparison of actual results with planned ones, identifying reserves for increasing resources through effective management.

Financial management:

1. Strategic management consists in determining financial resources for the future, for which it is necessary to know the dynamics of GNP.

2. Operational management carried out by the financial apparatus and consists in implementing the idea of strategic planning.

The financial system of the Russian Federation includes a complex of state and non-state specialized institutions, the functions of which include:

a) carrying out various types of financial, monetary, insurance, currency transactions;

b) the same bodies provide audit services;

c) they provide advice on all issues of financial and economic activity;

d) regulate the financial sector.

The financial management system is carried out with the help of the financial apparatus, and the financial apparatus itself is a set of bodies and organizations involved in financial management. Or, in other words, the financial apparatus is a system of financial bodies.

Naturally, the entire financial apparatus also consists of elements similar to the grouping of financial relations.

The first area is financial units in industries and enterprises.

They manage the financial resources that are created and remain at the disposal of industries and enterprises.

The second area is the system of insurance authorities.

The third area is public finance - the Ministry of Finance, all financial authorities, tax services, etc. Management bodies of extra-budgetary funds and all other funds are created in this area.

The fourth area is credit institutions - the Central Bank and commercial banks.

Ffinancial planning

Financial planning- a product of financial research that science deals with. Planning as an element of management is the best means of financial policy. It allows you to smoothly and imperceptibly make major economic changes.

The object of financial planning is the financial activities of business entities and the state, and the final result is the preparation of financial plans, ranging from estimates of an individual institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, connections with parts of the financial and credit systems (social insurance contributions, payments to the budget, fees for a bank loan, etc.). Specific objectives of financial planning are determined by financial policy. This is a determination of the amount of funds and their sources necessary to fulfill planned targets; identifying reserves for income growth and cost savings; establishing optimal proportions in the distribution of funds between centralized and decentralized funds, etc.

Planning is characterized by:

1) extensiveness (covers a wide range of socio-political and economic phenomena);

2) intensity (implies the use of perfect technology);

3) efficiency (means that in the end it is necessary to achieve the goals set by financial management).

Financial planning methods:

a) automatic (data from the previous year are transferred, for example, to 1999. If there is inflation, then the data is multiplied by the inflation factor). This method is the most primitive method and is usually used when there is a shortage of time;

b) statistical (expenses for previous years are added up and divided by the number of previous years);

c) zero base (all items must be calculated on a new basis. This method takes into account real needs and links them with capabilities)

In a market economy, planning, as a management function, should take the form of universal coverage of all aspects of economic and social activity. If in a planned economy the emphasis was placed on distribution processes in financial planning, then a market economy is based on the sphere of exchange through which the sale of goods and services is carried out and the recognition of socially necessary costs incurred in their production and sale. Consequently, in a market economy, the dominant and determining method of communication in the process of production and sale of goods and services is the market with its own mechanism, including money, price, the law of value, the law of supply and demand. This nature of the market mechanism determines the functioning of the predictive method in it for determining the results of production and exchange, but with elements of planning.

Ffinancial control

Ruble control- market control over the producer of goods and services, where the market acts as effective consumer demand, i.e. These are, first of all, people who have money.

Financial control- state control over the formation and use of funds

Financial control- a form of state control over the formation, distribution and use of resources at all levels of the financial system.

The purpose of financial control is to promote the successful implementation of the state’s financial policy, ensuring the process of formation and effective use of financial resources in all spheres and levels of the national economy. Financial control as a special area of control associated with the use of cost categories has a specific scope and corresponding target orientation. The object of financial control is monetary and distribution processes in the formation and use of financial resources, including in the form of funds of funds at all levels and links of the national economy.

Financial control includes checking: compliance with the requirements of economic laws, the optimal proportions of distribution and redistribution of the value of the gross social product and national income; budget preparation and execution (budget control); financial condition and effective use of labor, material and financial resources of enterprises and organizations, budgetary institutions, as well as tax control; other directions. Financial control faces the following: tasks: promoting a balance between the need for financial resources and the size of monetary income and national economic funds; ensuring timely and complete fulfillment of financial obligations to the state budget; identification of internal production reserves for the growth of financial resources, including reducing costs and increasing profitability; promoting the rational use of material assets and monetary resources in enterprises, organizations and budgetary institutions, as well as the correct maintenance of accounting and reporting; ensuring compliance with current legislation and regulations, including in the field of taxation, of enterprises belonging to various organizational and legal forms; promoting high returns on foreign economic activity of enterprises, including foreign exchange transactions, etc.

Financial control functions:

1) verification of the expenditure of public funds (compliance of expenditures with the requested amounts and the efficiency of use of public funds);

2) checking the timeliness and completeness of the mobilization of funds into public resources at all levels of the financial system;

3) checking compliance with accounting and reporting rules.

In financial control, budget control is important, which covers, first of all, the state budget and extra-budgetary funds (non-governmental). Local finances and the finances of state-owned enterprises are subject to budgetary control. To carry out financial control, special control bodies are created, staffed by highly qualified specialists. The country's legislative bodies exercise control when reviewing and approving the state forecast for the economic and social development of the national economy, the state budget by level of the budget system, and reports on its implementation. The legality and efficiency of the use of public funds and the appropriateness of the expenditures are monitored. Financial control is carried out by legislative bodies through committees and commissions, in particular, through planning and budgetary and financial commissions.

Financial control bodies:

I. Parliament (federal assembly, and in it the accounting board, the control department under the President of the Russian Federation).

In the Russian Federation, the Control and Accounts Chamber is responsible for such issues as control over:

1) sources of budget resources, their economical use by both the government and legislative bodies; curbing waste;

2) the efficiency of use of state property, the work of state enterprises, denationalization and privatization of state property;

3) the use of special funds, for example, pension, employment, social insurance; "Chernobyl", etc.;

4) sources of monetary income of public organizations, including various parties, for the use of these funds in accordance with the statutory purposes.

II. Special departments of state financial control.

III. Special control and audit department.

It reports directly to the Ministry of Finance. There are KRU bodies in all constituent entities of the Russian Federation, cities and regions. This entire apparatus is supported by funds from the federal budget. KRU is the only system of state financial control. It carries out the following activities:

Documentation of audits at state enterprises, organizations and institutions;

Conducts inspections on assignments from the Ministry of Internal Affairs as part of the fight against organized crime.

The main problem in the work of this structure is the legislative framework for financial control.

IV. Financial control bodies in line ministries (internal control, as a rule, is the least effective).

Financial authorities, headed by the ministries of finance, control the processes of mobilization and use of budget funds. Therefore, this type of financial control is called budgetary. Budget control contributes to the development of optimal financial policies that ensure maximum growth in state budget revenues and economic development. As part of the apparatus of the Ministry of Finance, there are control and audit departments, and in territorial financial bodies there is an office of the chief controller - auditor. Control and audit departments and offices of controllers and auditors conduct all types of audits of the production and financial activities of enterprises, organizations and institutions.

Credit institutions exercise financial control when issuing, checking the security and collecting loans. State commissions, state committees, ministries and departments carry out financial control using a special audit apparatus.

Tax inspections- these are the bodies of operational financial control. The system of tax authorities is headed by the State Tax Service of the Russian Federation. Local tax inspectorates report only to their superior authority. The tasks of tax services are

a) monitoring compliance with tax legislation, ensuring the completeness and timeliness of tax payments to the budget.

b) carry out an inspection of the financial condition of enterprises and organizations, regardless of departmental subordination and their organizational and legal form;

c) carry out control over the correct determination of taxable profit (income) in order to prevent its understatement;

d) maintain registration of all subjects, as well as real and potential objects of taxation.

e) ensure accounting, assessment and sale of confiscated, ownerless property, property transferred to the state, treasures.

Tax inspectorates have the right to: receive the necessary documents and information from organizations of various forms of ownership, with the exception of those that constitute a trade secret determined by law; monitor compliance with legislation on citizen entrepreneurship; inspect all premises used for generating income; suspend all operations of enterprises and citizens in case of failure to provide documents; seize documents indicating concealment of income; apply sanctions and fines; bring claims to court and arbitration for the liquidation of enterprises and recognition of transactions as invalid.

At the same time, tax inspectorates are obliged not to disclose information about the amount of deposits of enterprises and citizens. Citizens and businesses can file complaints in court or arbitration against the actions of state tax inspectorates. The development of commodity-money relations gives rise to a variety of forms of ownership, contributes to the emergence of a financial market, which determines the directions of further development and the emergence of new forms and means of financial control.

Forms and methods of state control

Forms (criteria - timing and methods)

By timing:

preliminary (carried out before expenditure and used as a preventive measure);

current (carried out during expenditure and checked against the plan or estimate);

subsequent (after expenses are carried out based on reporting materials. Certain conclusions are drawn for preliminary and current control).

Methods (method of implementation):

a) audit (checking the activities of all departments according to all documents. This is a very expensive and rare method);

b) inspection (periodic on-site inspection of the financial condition of the enterprise);

c) examination (study of deficiencies);

d) observation (general familiarization with the state of finances at the enterprise).

The direct subject of inspections are such financial (cost) indicators as profit, income, value added tax, profitability, cost, distribution costs, deductions for various purposes and funds. These indicators are synthetic in nature, therefore control over their implementation, dynamics, and trends covers all aspects of the production, economic and commercial activities of associations, enterprises, institutions, as well as the mechanism of financial and credit relationships.

The scope of financial control includes almost all transactions performed using money, and in some cases without it (barter transactions, etc.). At the same time, they proceed from the provision that it is impossible to exclude a direct or indirect relationship between the formation and use of financial resources, funds of funds with any types of activity or inaction.

Consequently, the same objects may be subject not only to financial control, but also to other types of control (during lending, settlements, pricing, etc.). But even if the specific subject of inspection and analysis coincides, financial control has a special focus in assessing the condition of these objects, corresponding to its purpose. Not only poorly performing enterprises and organizations are subject to control, but also those with normal performance results.

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The emergence of finance, its connection with the state. Development of commodity-money relations. Financial system of the Russian Federation and characteristics of its links. The use of finance in social production. Forms and methods of financial control.

The necessity and essence of finance.

The need for finance arose in a capitalist state in connection with the establishment of regular commodity-money exchange and the growing needs of the state for financial resources. The rapid growth of expenses of capitalist states became the impetus for the development of finance. The material basis of finance is national income in monetary terms. The need for finance in a market economy can be explained by the following reasons.

1) commodity-money relations and the law of value. Sales of products, goods and services by business entities are carried out through purchase and sale for money.

2) Finance covers all stages of the reproduction process: production, exchange, distribution, consumption - and can have a regulatory impact on all its components. Finance contributes to:

Creating conditions for self-financing for all business entities and partially regulating the structure of expenses and prices of enterprises through taxes, regulation of depreciation policy, tax deductions and benefits, establishing a minimum level of wages and equity capital;

Ensuring the interest of all economic entities in carrying out investment and innovation activities through appropriate tax deductions;

Creating conditions of trust for all economic entities in the state and the credit system to ensure the accumulation of temporarily free funds and their redistribution.

Functions of finance.

1) Distributive (distributes the created product; funds are created using this function);

2) Redistribution (redistribution of the created product, i.e. secondary distribution between members of society);

3) Regulatory (finance can both stimulate production and depress it);

4) Control (thanks to finance, society has the opportunity to observe all financial flows in the state in order to influence a particular product in a timely manner).

Concept and composition of financial resources.

Financial resources- incomes and receipts of business entities and the state represented by its bodies, which are used to expand reproduction and meet other needs. Finance and financial resources are not identical concepts. Financial resources do not define the essence of finance, do not reveal their internal content and social purpose. Financial science studies not resources, but social relations that arise on the basis of the formation, distribution and use of resources.

Composition of financial resources:

1) own funds: a) at the level of enterprises and households - profit, wages, household income; b) at the state level - income from state-owned enterprises, privatization, as well as from foreign economic activity;

2) mobilized on the market: a) at the level of enterprises and households - sale and purchase of securities, bank loan; b) at the state level - issue of securities and money, state credit;

3) funds received through redistribution: a) at the level of enterprises and households - interest and dividends on securities issued by other owners; b) at the state level - mandatory payments (taxes, fees, duties).

Financial system of the Russian Federation and characteristics of its links.

Financial system- is a system of forms and methods of education, distribution and use of state and enterprise funds.

The financial system of the Russian Federation includes the following links of financial relations:

State budget system;

Off-budget special funds;

State credit;

Insurance funds;

Finance of enterprises of various forms of ownership.

The first three blocks of financial relations relate to centralized finance and are used to regulate the economy and social relations at the macro level. Financial relations of enterprises belong to decentralized finance and are used to regulate and stimulate the economy and social relations at the micro level.

Financial mechanism and its types.

A financial mechanism is an instrument of financial policy, which is a system of forms, types and methods of organizing financial relations established by the state.

Depending on the degree of regulation by the state, the financial mechanism is divided into directive And regulating.

Directive associated with relations in which the state is directly involved (taxes, state credit, budget process, etc.). Regulating determines the main directions of the functioning of financial relations that do not directly affect the interests of the state (organization of intra-economic activities at enterprises).

The structure of the financial mechanism includes:

Financial regulation;

Financial incentives;

Financial leverage;

Regulatory and legal support;

Information Support.

Financial regulation represents an activity organized by the state to use all aspects of financial relations in order to adjust the parameters of reproduction.

Financial incentives is one of the methods for regulating national economic proportions.

Financial leverage represent techniques in which finance affects the economy of the state and, above all, its lower link - enterprises.

Legal and regulatory support include:

Laws (Budget Code, Tax Code, Unified Budget Classification, Law on the State Budget, etc.);

Decrees of the President of the Russian Federation (on taxation);

Decrees of the Government of the Russian Federation;

Orders and letters from ministries and departments;

Charter of a legal entity.

Financial regulation mechanism enables the state to create conditions for the subjects of the financial mechanism that would force them to act in accordance with the directions necessary for society. Such regulation is carried out using instruments of fiscal, budgetary, tax policy, etc.

Types of financial policies.

The following types of financial policy are distinguished: classical, regulated, neoclassical, planned-directive and monetary.

The basis of classical financial policy- non-interference of the state in the economy, preservation of free competition, use of the market mechanism as the main regulator of economic processes.

Adjustable type. The main mechanism of tax regulation is income tax. The main levers of government intervention in the economy are government spending, which creates additional demand. Financial management is carried out by independent specialized services. They carry out budget planning, control over tax revenues, and management of public debt.

Neoclassical type- there was a return to the basic principles of classical financial policy, significantly revised and modified. As a result of this, regulation becomes multi-purpose. That is, in addition to economic growth and employment, the state regulates social policy and structural restructuring of the state. Significant attention is paid to issues of money circulation. The main goal is to reduce the volume of national income redistributed through the financial system; reduction of the budget deficit; stimulating savings volumes, stimulating entrepreneurship development. Reducing the tax burden.

Planning and directive financial policy is applied in countries that use an administrative-command system of economic management. The goal of financial policy in these conditions is to ensure maximum concentration of financial resources in the state for their subsequent redistribution in accordance with the main directions of the state plan. The main task of the financial mechanism was to create tools with the help of which all financial resources not used in accordance with the state plan are withdrawn. Funds were withdrawn from state-owned enterprises, the population and local authorities. Financial management was carried out from a single center - the Ministry of Finance, which dealt with all issues of using the financial mechanism in the national economy.

Monetary policy“is the coordinated activity of government authorities to manage cash flows, which, using certain specific work mechanisms, are aimed at achieving certain macroeconomic goals.”

The main instruments of monetary policy are the central bank discount rate, the exchange rate and the price scale. A special place in it is given to state regulation of the financial market.

Ministry of Finance as a financial management body in the Russian Federation.

Ministry of Finance of the Russian Federation(Ministry of Finance of Russia) is the federal ministry of the Russian Federation, ensuring the implementation of a unified financial policy, as well as providing general leadership in the field of organizing finance in the Russian Federation.

Five federal services are subordinate to the Ministry of Finance of the Russian Federation: Federal Tax Service, Federal Insurance Supervision Service, Federal Service for Financial and Budgetary Supervision, Federal Service for Financial Monitoring, Federal Treasury.

Main goals: development of a unified state financial (including budgetary, tax, insurance, foreign exchange, public debt), credit, monetary policy, as well as policies in the field of auditing, accounting and financial reporting, mining, production, processing of precious metals and precious stones, customs duties (in terms of calculation and payment procedure), including determination of the customs value of goods and vehicles.

Main functions:

Development of draft laws on the development of the budget system, the fundamentals of the budget process, the delimitation of budgetary powers between the Russian Federation, its constituent entities and local governments;

Development of draft laws in the field of taxation, as well as forms of documents, accounting and reporting related to their implementation;

Development of a draft law on the federal budget and organization of its implementation, preparation of reports on the execution of the federal budget and the consolidated budget of the Russian Federation;

Coordination of fiscal and monetary policies;

Management of the public debt of the Russian Federation and the issue of government securities on behalf of the Russian Federation;

Maintaining a book of accounting for public debts and registering the issue of government securities of constituent entities of the Russian Federation and municipalities;

Development of regulations in the field of accounting and financial reporting.

Financial control- this is a set of actions and operations carried out by specially authorized bodies in order to monitor compliance by business entities and state and local government bodies with the rules of law in the process of formation, distribution and use of financial resources for the timely receipt of complete and reliable information on the progress of implementation of adopted management financial decisions.

Target- timely receipt of all information about the progress of the financial management process at the micro and macro level, identified violations for making adequate management decisions.

Main goals:

Ensuring the financial security of the state and the financial stability of business entities;

Fulfillment by business entities of their financial obligations;

Growth of financial resources in all areas and links of the financial system, ensuring their rational, effective and legal use;

Compliance with the financial interests of all business entities, strengthening their responsibility for the results of their activities;

Increasing the efficiency of the state's financial policy.

Essential elements: object and subject; information, legal and methodological support; mechanism; principles; measures of responsibility of all participants in the control process. The financial control infrastructure includes: financial, technical, personnel support for control, etc.

The most important element in the financial control system are the subjects of control, since in accordance with current legislation they directly exercise control and are responsible for their actions.

Subjects of financial control are specially authorized bodies (state control bodies; structural divisions created in business entities and state and local government bodies; non-state specialized organizations), as well as qualified specialists carrying out their control activities in accordance with the law.

Exercising financial control assumes the existence of responsibility of business entities, state authorities and local self-government, as well as bodies exercising financial control and their officials.

Budget revenues.

Government revenues- this is part of the country’s national income, circulated in the process of its distribution through various types of cash receipts into the ownership and disposal of the state in order to create a financial base for fulfilling its tasks in implementing socio-economic policy, ensuring the defense and security of the country.

Budget revenues are generated from tax and non-tax types of income, as well as from gratuitous transfers.

Revenue part of the state budget consists of three main parts:

Taxes

Non-tax revenue

Income of target budget funds

Non-tax income includes income:

From the use of state or municipal property;

From the sale or other alienation of property in state and municipal ownership;

From paid services provided by relevant government bodies, local governments, as well as budgetary institutions;

In the form of financial assistance and budget loans received from budgets of other levels of the budget system of the Russian Federation;

Other non-tax income.

The system of tax payments to the state budget includes: direct taxes and indirect taxes.

Direct taxes- These are taxes levied directly at the source of their formation. Direct taxes include: income tax; personal income tax; taxes on total income.

Indirect taxes- the main part of tax revenues of the state budget (these are consumer taxes). They consist of VAT, excise taxes and customs duties and fees. They influence the price level (included in the price) and the consumption structure.

Direct taxes are collected into the state (federal), regional and local budgets. This depends on the territorial location of the enterprise and its scale (income tax). In addition to income tax, direct taxes also include income taxes on individuals (citizens). Direct taxes are the second component of all revenues received by the budget. To indirect taxes, accounting for up to 70−90% of all tax revenues to the state budget, include: value added tax(VAT); excise taxes; customs duties and fees. At the same time, VAT is important in this group (up to 40% in the group of indirect taxes).

Budget expenses.

Budget expenses- these are funds allocated to financially support the tasks and functions of the state and local government. Are divided into capital and current.

Capital expenditure budgets, intended to ensure innovation and investment activities, by classification of expenditures of the budgets of the Russian Federation. A development budget can be formed as part of the capital expenditures of the budgets.

Current budget expenditures are intended to ensure the current functioning of state authorities, local governments and budgetary institutions, as well as providing state support to other budgets and individual sectors of the economy in the form of subsidies, subsidies and subventions.

In the consumable part budgets of all levels of the budget system of the Russian Federation provided creation of reserve funds of (a) executive authorities and (b) local governments. The size of reserve funds in the federal budget cannot exceed 3% of approved federal budget expenditures.

Reserve funds are being spent to finance unforeseen expenses, including emergency restoration work to eliminate the consequences of natural disasters and other emergency situations, and the procedure for their expenditure is established by regulatory legal acts of the Government of the Russian Federation, executive authorities of constituent entities of the Russian Federation or local governments.

The provision of budget funds is carried out in the following forms:

Funds to pay for goods, works and services performed by individuals and legal entities under state or municipal contracts;

Transfers to the population, including allocations for the implementation by local government bodies of mandatory payments to the population established by the legislation of the Russian Federation and its constituent entities, legal acts of representative bodies of local government;

Appropriations for the implementation of certain state powers transferred to other levels of government;

Budget loans to legal entities (including tax credits, deferments and installments for the payment of taxes and payments and other obligations);

Subventions and grants to individuals and legal entities;

Investments in the authorized capital of existing or newly created legal entities;

Loans to foreign countries

Funds for servicing and repaying debt obligations, including state or municipal guarantees.

Self-financing

meaning the priority of its own sources of financing as a strategy for managing the financial resources of an enterprise in order to accumulate capital sufficient to finance expanded reproduction.

Functions of credit.

1. Redistribution- redistribution of value can occur according to territorial and industry characteristics. For a loan, the location of the lender and the borrower does not matter. Such redistributions of value are called interterritorial. Inter-industry redistribution with the help of a lender occurs when value is transferred from a lender representing one industry to a borrower from an enterprise in another industry.

2. Substitution of actual money. Transferring money from one account to another in connection with non-cash payments for goods and services, offsetting mutual debts makes it possible to reduce cash payments and improve the structure of cash turnover. At present, real money (of gold and silver) does not circulate. Banknotes issued on the basis of credit are in circulation.

Types and forms of credit.

1. Bank loan. A bank loan is, on the one hand, a sum of money provided by the bank for a certain period and on certain conditions, and on the other hand, a certain technology for satisfying the financial needs declared by the borrower. In the second case, a bank loan is an orderly set of interconnected organizational, technical, technological, information, financial, legal and other procedures that constitute an integral regulation of the interaction of the bank, represented by its employees and departments, with the bank’s client regarding the provision of funds. Carried out in the form of issuing loans, discounting bills and other forms.

1) By maturity: - short-term; - mid-term; - long-term.

2) By method of repayment: - repayable in one amount at the end of the term; - repayable in equal installments at regular intervals; - repayable in unequal installments at various intervals.

3) According to the method of charging loan interest: - payment at the time of loan repayment ; - payment in equal installments throughout the entire term of the loan agreement ; - payment at the time of loan issuance.

4) Based on the availability of collateral: - trust (unsecured) loans ; - secured loans ; - loans secured by financial guarantees from third parties.

5) For intended purpose:- public character ; - targeted loans.

6) According to the form of loan provision: 1. Non-cash loans:- crediting non-cash money to the appropriate account of the borrower, including restructuring of a previously issued loan and the provision of a new one; - lending using bank bills; - in a mixed form (a combination of the 2 previous options). 2. Loans in cash(usually to individuals).

7) According to the technique of providing a loan: - one amount; - in the form of an overdraft; - in the form of a line of credit.

8) By the method of providing the loan: - individual loan (provided to the borrower by one bank); - syndicated.

9) By categories of potential borrowers: - Agricultural loans; - Commercial loans; - Loans to intermediaries on the stock exchange ; - Mortgage loans to property owners ; - Interbank loans ; - Loan for legal entities ; - Loan for individuals.

2. Commercial, consumer, government. Commercial loan- a type of loan, the essence of which is the transfer by one party (the lender) to the other party (the borrower) of amounts of money or other things determined by generic characteristics. Modern commercial loan is a loan provided by enterprises to each other.

Consumer loan- a loan provided directly to citizens (households) for the purchase of consumer goods.

State loan- a set of economic relations that develop between the state, on the one hand, and legal entities and individuals, foreign states, international financial organizations, on the other, regarding the movement of funds on terms of urgency, repayment, payment and the formation on this basis of additional financial resources of participants these relationships. , the state acts as either a lender, a borrower, or a guarantor.

International loan- movement of loan capital in the sphere of international economic relations, associated with the provision of foreign exchange and commodity resources on the terms of repayment, urgency, security and payment of interest.

Principles of lending.

Credit- this is a system of economic relations in connection with the transfer from one owner to another for temporary use of valuables in any form (commodity, monetary, intangible) on the terms of repayment, urgency, payment.

The basic principles of lending are: repayment, urgency and payment. Repayment assumes that the values transferred into debt in a pre-agreed form (loan agreement), most often monetary, will be returned to the seller of the loan (lender). Violation of the principle of repayment can cause irreparable damage to the creditor, therefore, in modern conditions, it is customary in credit agreements to stipulate methods for insuring credit risk. Targeted lending ensures repayment and repayment of the loan. Urgency of lending- This is a natural form of ensuring loan repayment. It means that the loan must not only be repaid, but repaid within the period strictly specified in the loan agreement. Loan security- an additional lending principle that is always included in the loan agreement. With the adoption of the law “On Banks and Banking Activities,” commercial banks were able to issue loans to their clients against various forms of collateral. The principle of payment A loan means that the borrower of money must pay a certain one-time fee for using the loan or pay over a specified period.

Lending methods.

In modern Russian practice they use two main methods lending: targeted loan And crediting current account. The essence of the first method consists in the fact that a loan is issued to satisfy a specific target need for financial resources. A targeted loan can be provided in the form of a revolving or non-revolving line of credit. With the second method Loans are provided within the limit set by the bank for the borrower. This limit is used by the borrower as needed by paying payment documents presented to his current account within a certain period.

Finance as a value category is a set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, social satisfaction. and other needs.

Finance is a system of economic (monetary) relations through which funds of funds are created and spent.

The historical nature of the category means that

1 - until a certain period of time there was no category;
2 - appearance;
3 - development;
4 - disappearance.

Finance - "finance" (Latin) - cash payment.

Social relations are relationships between people. Economic relations are associated with the process of creation and movement of value.

At the stages of production and consumption, there is no movement of value, so they are not the place where finance arises.

This specificity is expressed in relations expressing the one-way movement of value. Monetary relations receive social forms of formation. And thus they are expressed in certain economic categories:

- wage;
- price;
- credit;
- finances.

Finance deals with the distribution of created value in monetary terms. Depending on how we distribute the reproduction process will depend. Certain proportions are necessary, and the main proportion depends on how we divide the national income.

TSP (total social product) = C + V + M

C -- fixed capital

V -- salary

M -- profit

FINANCE FUNCTIONS:

? distribution (distributes the created product; funds are created using this function);
? redistribution (redistribution of the created product, i.e. secondary distribution between members of society);
? regulating (finance can both stimulate production and suppress it);
? control (thanks to finance, society has the opportunity to observe all financial flows in the state in order to influence a particular product in a timely manner).

Another interpretation is that the functions of finance are as follows: distribution and control, and the rest are derived from the distribution function.

The distribution stage begins with the distribution of new value and ends with the formation of primary income (wages, profits). The redistribution stage is a multi-stage stage at which national funds are formed: the state budget, extra-budgetary funds, insurance, banking funds and enterprise funds. The distribution function is the objective property of the category of finance to distribute the value of the created product in monetary terms.

The redistributive function differs from the distribution function in that at this stage previously created incomes are redistributed.

Control function. The control function of finance is responsible for ensuring compliance with proportions in the distribution process. The proportions for different industries are different and are added up under different conditions and, therefore, they are objective. The object of control is the distribution process. The main controlled proportion is the proportion between accumulation and consumption funds.

New aspects have appeared in the theory of finance. One of them is the stimulating function of finance.

Signs of finance:

1). Finance is of a monetary nature, but there are situations when natural goods also circulate in the financial system.
2). Financial relations are distributive in nature.
3). Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources.

Financial source > financial resources > financial funds.

1. Finance functions in all spheres of social production (production, circulation, consumption)
2. Finance has the potential to be a catalyst for economic processes (which follows from the distribution function). Distribution begins in the sphere of material production. This area includes 4 stages, where the production stage is decisive.
A). The sphere of material production. Thus it influences the nature and scale of production.
b). Scope of circulation. It is represented by trade. It is characterized by buying and selling processes. The consumer properties of a product do not change, but its cost does. The product is sold and the enterprise receives revenue (D"). Then this revenue is distributed to compensation, accumulation, and consumption funds. Financial relations precede and complete the process of purchase and sale.
V). Sphere of consumption. Where allocated:
- - commercial organizations;
- - budget organizations

Currently, you can find mixed-type organizations where commercial structures allocate money for budget organizations.

An economic instrument is an economic category embodied in specific forms of manifestation and consciously used by society to achieve specific goals. An economic instrument, including finance, has two principles: the first is objective (arising from the economic category), the second is subjective (an instrument for implementing the state’s economic policy).

Finance influences in two ways:

- quantitatively (characterized by the proportions of the distribution process)
- qualitatively (characterized by the impact of finance on the material interests of business entities).

1) from the position of providing the needs of expanded reproduction with the necessary financial sources;
2) from the point of view of using finance to regulate the cost structure
3) from the position of using finance as an economic incentive.

Thus, finance is a set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, and the satisfaction of social and other needs.

Any socio-economic formation consists, as is known, of the following elements: productive forces, production relations and the sphere of the superstructure. Finance, as monetary relations, does not belong to the productive forces. Therefore, finance does not study productive forces. Finance is a cost category and as such is not a subject of science that studies the superstructure. As a value category, it expresses relations between people associated with the redistribution of the value of the social product. Thus, the essence, the nature of these relations is always economic objectivity, part of the real basis of society. Moreover, the content of these relations does not change during the transition from one economic formation to another. The essence of them as economic relations does not change depending on where and for what purposes, for example, the resources of the budget system are directed (in sectors of the national economy, for management or defense). Therefore, finance is always an economic category.

2. Signs of finance.

Finance has three characteristics that act only in combination:

1. Finais express monetary relations between the subjects of reproduction. This feature allows us to separate from finance economic relations associated with the formation and use of income and expenses that are not of a cost nature. Based on this, an important condition for the emergence and development of finance is commodity-money relations.

2.Financial relations have an imperative form, i.e. caused by the fact of the presence of the state as a governing body.

3. Finance expresses the processes of formation and use of centralized and decentralized monetary funds. These are relations of redistribution of an already distributed total product. Moreover, the degree of development of financial relations in different funds is not the same. Thus, budgetary and extra-budgetary funds fully express financial relations. While, for example, the reserve fund has a financial form only when it is formed through budget financing.

If the monetary relations of two or more entities have all three characteristics, then this is finance. Any monetary relationship does not relate to finance.

3. Functions of finance as a manifestation of their essence.

Function is “the external manifestation of the property of an object in a given system of relations” (Philosophical Dictionary. - M.: Politizdat, 1991 1 p. 504). In relation to the economic category, function means the manifestation of its essence in action. A function is always derived from the essence that it expresses and shows how the social purpose of this economic category is realized. Therefore, the question of functions, their quantity and content can be correctly resolved only based on the essence of the category. In other words, a function is a form of expression of the social purpose of a given category. The role of the economic category is expressed in the results of its practical use.

Based on the theory we are considering, two functions of finance are distinguished: the formation of state funds and the use (expenditure) of such funds by the state to perform its functions.

The first function of finance is that it expresses the one-way (without equivalent) movement of value in monetary form, which is not accompanied by its counter movement in commodity form (for example, when payments are made to the budget and to extra-budgetary funds by subjects of reproduction). The only exception to this rule is the purchase of government-issued securities. Here the formation of centralized and decentralized monetary funds occurs, i.e. redistribution of GDP value.

The second function of finance expresses the change in the forms of value in monetary and commodity forms (M - T and C - D), the two-way movement of value in monetary and commodity forms (for example, the purchase of equipment at the expense of the budget, the use of funds intended for investments received through external sources (budget allocations, loans, intra-system redistribution)).

The imperative form of financial relations when spending monetary funds is clearly manifested when expenses are incurred by institutions in the non-productive sphere, since these expenses express the intended use of national monetary funds; they are strictly regulated by the state in all aspects: they have strictly targeted spending, a clear frequency of expenses, etc.