Functions of finance as a manifestation of the essence. Myagkova T.L
Finance is an integral part of monetary relations, therefore, their role and significance depend on the place that monetary relations occupy in economic relations. However, finance differs from money not only in content, but also in the functions performed, in which their essence is manifested. Functions refer to the “work” that finances do.
No one denies that finance is a set of monetary relations organized by the state, in the process of which the formation and use of funds of funds is carried out. And to the question of what is the source of the formation of numerous funds at different levels, the answer, as a rule, is the same - gross domestic product... The process of allocating GDP can be carried out using financial instruments: norms, rates, tariffs, deductions, etc., established by the state.
If we talk about finances in general, then, apparently, it should be considered that they perform two main functions: distribution and control.
Distribution function
The distribution function is that the financial resources of the enterprise are subject to distribution in order to fulfill monetary obligations before the budget, banks, counterparties. Its result is the formation and use of targeted funds of funds, maintenance of an effective capital structure.
The distribution function manifests itself in the distribution of the national income, when the so-called basic, or primary incomes are created. Their sum is equal to the national income. The main income is formed when the national income is distributed among the participants in material production. They are divided into two groups:
) wages of workers, employees, income of farmers, peasants employed in the sphere of material production;
) income of enterprises in the sphere of material production.
However, primary income does not yet form public 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 national income is required, associated with:
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 non-production sphere, in which the national income is not created (education, health care, social insurance and social security, management);
redistribution of income between different social groups of the population.
As a result of redistribution, secondary or production income is formed. These include income received in the non-production sector, taxes ( income tax from individuals and etc.). Secondary incomes serve to form the final proportions of the use of the national income.
By actively participating in the distribution and redistribution of the national income, finance contributes to the transformation of the proportions that arose during the primary distribution of the national income in the proportion of its final use. The income generated in the course of such a redistribution should ensure consistency between material and financial resources and, above all, between the size of monetary funds and their structure, on the one hand, and the volume and structure of means of production and consumer goods, on the other.
Redistribution of national income in Russian Federation occurs in the interests of the structural restructuring of the national economy, the development of priority sectors of the economy ( Agriculture, transport, energy, conversion of military production), in favor of the poorest segments of the population (pensioners, students, single and large mothers).
Thus, the redistribution of national income occurs between the production and non-production spheres of the national economy, branches of material production, individual regions of the country, forms of ownership and social groups of the population.
The ultimate goal of the distribution and redistribution of national income and GDP, accomplished with the help of finance, is to develop productive forces, create market structures for the economy, strengthen the state, and ensure a high quality of life for broad strata of the population. At the same time, the role of finance is subordinated to the tasks of increasing the material interest of workers and collectives of enterprises and organizations in improving financial and economic activities, achieving best results at the lowest cost.
Control function
As a tool for the formation and use of monetary incomes and funds, finance objectively reflects the course of the distribution process.
The control function is manifested in the control over the distribution of GDP among the relevant funds and their spending for the intended purpose.
In the context of the transition to market relations, financial control is aimed at ensuring the financial development of public and private production, accelerating scientific and technological progress, and improving the quality of work in all sectors of the national economy. It covers production and non-production areas. It is aimed at increasing economic incentives, rational and thrifty spending of material, labor, financial resources and natural resources, reducing unproductive costs and losses, suppressing mismanagement and waste. Thanks to the control function of finance, society knows how the proportions in the distribution of funds are formed, how timely financial resources come to the disposal of various business entities, whether they are economically and efficiently used by them, etc.
One of the important tasks financial control- verification of the exact observance of the legislation on financial issues, the timeliness and completeness of implementation financial commitments to the budget system, tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments.
The control function of finance is also manifested through the multifaceted activities of financial bodies.
Financial workers and tax service carry out financial control in the process of financial planning, in the execution of the income and expenditure parts of the budget system. In the context of the development of market relations, the directions test work, forms and methods of financial control are changing significantly.
Distribution and control functions are two sides of the same economic process... Only in their unity and close interaction can finance manifest itself as a category of value distribution.
Financial information acts as a tool for implementing the control function of finance. It is concluded in the financial indicators available in the accounting, statistical and operational reporting. Financial indicators allow you to see the various aspects of the work of enterprises and evaluate the results of economic activities. On their basis, measures are taken to eliminate the identified negative aspects.
The control function, objectively inherent in finance, can be realized with greater or lesser completeness, which is largely determined by the state of financial discipline in the national economy. Financial discipline- this is a mandatory procedure for all enterprises, organizations, institutions and officials for conducting a financial economy, observing established norms and rules, fulfilling financial obligations.
Other functions
In addition to its distribution and control function, finance also has a regulatory function. This function is associated with government intervention through finance ( government spending, taxes, government credit) in the process of reproduction.
Some authors do not recognize the distribution function of finance, believing that it does not express their specificity, since the processes of value distribution are served by different economic categories. But the supporters of the distribution function do not at all believe that it is generated by the very factors of the functioning of finance at the second stage of the reproduction process, but on the contrary, they associate it with the specific social purposes of finance, emphasizing that no other category acting at the stage of value distribution is so "Pay-as-you-go" like finance. However, today the regulatory function in Russia is poorly developed.
In the conditions of market relations, finance must perform a stabilizing function. Its content is to ensure stable conditions in economic and social relations for all business entities and citizens. At the same time, the issue of the stability of financial legislation is of particular importance, since without this it is impossible to implement investment policy in production area from private investors. The achievement of stabilization is considered by the Government of the Russian Federation as a necessary condition for the transition of a market economy to socially oriented economic growth.
. Discussion questions essence and functions of finance
Despite the long history of the existence of finance as a scientific concept, their essence has not been fully disclosed. The task of a more complete understanding of the essence of finance is complicated by the fact that it is deeply hidden behind the external forms of its manifestation, in which various financial phenomena appear on the surface of social life.
When studying the nature of finance, it is of paramount importance to have a correct understanding of fundamental theoretical problems and categories.
Such scientists and economists as V.P. Dyachenko, A.M. Alexandrov, E.A. Voznesensky paid attention to the study of the problems of the essence of finance. In the period of Russia's transition to a market economy, such scientists and economists as V.M. Rodionova, L.A. Drobozina, M.V. Romanovsky are engaged in the research of theoretical problems in the field of finance.
Study and correct understanding of the most important financial categories is hampered by the presence in the financial and economic literature of many different, sometimes opposite points of view on their necessity, essence, content and purpose.
In the theory of finance, one of the problematic issues is the question of the need for finance in general. The study of finance has been very little and superficial. There was a simplified, formal approach to solving this problem. So professors Voznesensky E.A. and Birman A.M. believed that the main condition for the emergence and functioning of finance is the state.
Most economists determined the objective necessity of finance by the presence of the state and commodity-money relations without a thorough justification of this provision in relation to the category of finance. "Finance does not exist outside the state."
But this is an overly simplistic approach to a category such as finance. Professor Rodionova V.M. believes that the conditionality of a part of financial relations by the factor of the existence of the state does not give grounds for considering its activity as the cause that generates finance. In her opinion, a prerequisite for the functioning of finance is the availability of money, and the reason that gives rise to their appearance can be considered the needs of business entities and the state in the resources that ensure their activities.
However, there is another factor without which finance cannot function. This is social reproduction, with its continuously repeating and interconnected cycles. At present, almost all economists recognize the need for finance and their important role in the performance of the state's functions.
However, the question of the essence of finance and the boundaries of their distribution remains unclear.
Some economists considered finance as the totality of monetary resources or funds at the disposal of the state and enterprises. In the fifties, the understanding of finance as monetary relations that ensure the distribution of the aggregate social product, national income, was established. It persists to our time.
The transition to a market economy takes place in the conditions of the functioning of various objective value categories and monetary relations that permeate all aspects of life, monetary relations mediate the sale and purchase, wages, the sphere of application of free funds, and various relations with foreign countries.
Here the question arises - are all monetary relations finance or do they exist, some kind of border of their distribution?
Economists A.M. Alexandrov, E.A. Voznesensky and others proceeded from the fact that finance and credit, having a monetary form and providing a distributional process in social reproduction, represent a single category "finance in the broad sense of the word." Academician Chantlandze understood finance in an even more expanded sense, including banks, prices of goods, stock exchanges, money markets, gold, banknotes, bills, securities. And in a narrow sense, he attributed only budgetary funds to finance, while most economists believe that finance is a special area and only a part of monetary relations that have their own specific characteristics. The main features that determine the category of finance should be considered:
Monetary nature of financial relations
Distributive nature of financial relations
Financial relations are always associated with the formation of monetary funds that take the form of financial resources
Lack of equivalence of distribution relationships (This distinguishes finance from sales and purchase relationships)
Irrevocability and gratuitousness (This distinguishes finance from credit)
Based on these signs, one can see that finances arise and function at the second stage of the reproduction process - at the stage of distribution and redistribution of the value of the social product. It follows from this that the broad interpretation of the essence of finance is questionable. Distribution and exchange are different stages of the reproductive process, which have their own, special economic forms of expression. Therefore, it is illogical to attribute monetary relations of different nature, arising at different stages of reproduction, to the same category - finance. Limiting the place of finance to the distributive and redistributive stage of reproduction introduces rigid boundaries for the functioning of finance, but this does not mean that finance limits its action at this stage of reproduction. Finance actively influences all stages of the reproduction process through indirect factors.
Among the debatable is the question of the qualitative characteristics that determine the specifics of finance as economic category... The debate is mainly about whether or not to include in the definition of finance such a feature as imperative. Moreover, the term "imperativeness" is interpreted by scientists in different ways: some see it as an active role of the state in organizing financial relations, while others see it as the reason that gives rise to the functioning of finance.
If imperativeness is understood as the practical activity of the state aimed at organizing financial relations, developing forms of their manifestation and use, then this use of the term does not raise objections, but does not add anything to the characterization of the essence of finance.
However, in some publications, imperativeness is interpreted as an essential feature of financial relations. It is emphasized that when characterizing the category of finance, this feature cannot be dispensed with, since it is the state that creates new distributive financial relations, that the direct cause of the emergence and development of finance is the activity of the state and its bodies. Such statements are inappropriate, because it is not the activity of the state itself, but the objective needs of social development that causes the existence of finance.
Among the controversial issues is also the question of the functions of finance. Many economists believe that finance has two functions - distribution and control. Although in the literature one can find statements that finance, in addition to these two functions, has others: production (different authors call it differently), stimulating, regulating, etc. But at the same time, the question of the functions of finance is replaced by a question of their role in social reproduction, since these are different, albeit interrelated issues. Of course, finances play an important role in social reproduction, with their help, the efficient use of production factors can be stimulated, cost proportions can be regulated, conditions for an economy regime are provided, etc. However, it is inappropriate to equate these results achieved through the functioning of finances with their functions.
Some authors do not recognize the distribution function of finance, believing that it does not express their specificity, since the processes of value distribution are served by different economic categories. But the supporters of the distribution function do not at all believe that it is generated by the very fact of the functioning of finance at the second stage of the reproduction process, but on the contrary, they associate it with the specific social purpose of finance, emphasizing that no other category acting at the stage of value distribution is so "Pay-as-you-go" like finance.
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, they are more reminiscent of the mechanism for implementing the distribution function than an independent way of operating the category of finance.
The presence of 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 more actively develop ways to better use this category in business practice, scientifically substantiate measures aimed at financial recovery of the economy and improving the system of financial relationships.
The relationship of finance
Finance, participating in the distribution and redistribution of the gross social product and national income, interacts with other value (monetary) categories of distribution - price, credit, wages, insurance. These monetary categories also participate in the distribution process, as in other stages of the reproduction cycle. However, the extent and forms of their participation are not the same. Each of these categories occupies its own special place in the system of distribution and other reproductive relations, participating in the methods and methods inherent only in it in a single process of distribution of the social product and national income.
Price acts as the initial category of value distribution, mediating the transition of the product of labor from the natural-material form to the money one, and its movement from one owner to another on the basis of acts of sale and purchase. In the process of distribution, deviations of prices from the value determined by socially necessary labor costs may occur, as a result of which some producers realize a higher value, while others - a lower one. In this case, finance comes into the redistributive process with its own methods: they withdraw part of the value (for example, with the help of excise taxes, export or import taxes, customs duties) or transfer the lost part of the value through subventions (subsidies), budgetary or industry financing. It should be borne in mind that the deviation of prices from value can be deliberately established by the state when pursuing a price policy (regulated prices, socially low prices, prices determined by high demand - monopoly prices). In market conditions, free prices prevail, formed by the supply and demand of goods and services.
However, the action of price does not directly cause the formation of funds; it acts as an instrument of commodity production and circulation. The act of exchange is both a sale (for one) and a purchase (for another). In case of unequal sale of goods, the share of "t" decreases or increases, and in case of unequal purchase, the volume and proportion of "c" and "v" of the new product change. The price affects the size and structure of the reimbursement fund and therefore the profit.
With the help of finance, the distribution process initiated by the price is adjusted, taking into account the conditions for the movement of value set by economic plans and proportions. If, with the help of prices, the proceeds from the sale of products are formed as a whole, then the financial distribution splits this proceeds into trust funds of funds intended for further use. Thus, financial distribution methods are more flexible, they provide more targeting in the process. The degree of distribution is different: if the price distributes only part of the value in the form of its deviation from socially necessary costs or the deviation of the latter from individual costs, then finance redistributes the entire value of the product.
Price plays a special role in determining the amount of depreciation deductions. The gap between the initial and current prices for means of production leads to significant fluctuations in the depreciation fund. The price distortion of value inherent in production (based on the nonequivalent purchase) increases with the nonequivalent sale and causes an increase in redistribution relations at the stages of distribution and consumption.
Finance is closely related to wages. The wage fund (wage fund) in the sphere of material production is separated from the proceeds from the sale of products with the help of finance. This fund can be formed depending on the volume of products produced. In the case of using the category of income in economic practice, the wage fund is formed in closer connection with the achieved financial results... Gross income * as the difference between the income from the sale of products and the cost, absorbs cost savings and, therefore, is characterized as a complex financial concept that unites in monetary terms all the efforts of an economic agency in terms of quantitative and qualitative results of activities. There is also a price factor: in the case of selling products of improved quality, both the savings in material costs and the relative savings in the use of fixed capital, acting in the form of a decrease in the share of depreciation charges attributable to a larger quantitative volume of production, increase profit or income.
Outwardly, it seems that the price factor is not directly involved in determining the wage bill. But through distribution net income its influence is obvious. IN market system the impact of the price on the payroll increases even more.
In the non-production sphere, the connection between finance and wages is especially evident, since the wage fund for workers in this sphere is formed largely from budget funds and is determined by the financial capabilities of the corresponding budget.
In all cases, labor remuneration, as an economic category, determines the correspondence of the share of each employee in the created product, that is, the boundaries of employee participation in the distribution, and finances form the wage fund or the payroll according to work.
Wages are used at the stage of consumption, that is, by paying for goods and services. At the same time, a certain part of it is mobilized by financial methods in the form of payment of taxes by the population, insurance contributions: by credit method - in the form of deposits in banks, government bonds; by purchasing shares and other securities, holding lotteries.
At the same time, the spheres of action and the motives of action of the categories under consideration differ significantly. The effect of finance is broader than wages, since finance distributes the entire social product, and wages are only a necessary product and a part of the surplus. Remuneration for labor is associated with the action of one of the most important factors of production - labor power, serves as a means of compensation for labor expended, and finance, in addition, with the means of production, through their direct formation. Remuneration for labor stimulates the growth of its productivity, and finances affect the entire social production, activating its development through the system of the financial mechanism.
The interaction of finance with credit is manifested very closely. As in finance, in credit relations, monetary funds, called loan funds, are formed and used for the purposes of long-term and short-term lending to business entities, the population, and the state.
Both categories are designed to create conditions for a normal, continuous circulation of funds in the public economy. The objects of the complex impact of these categories in the sphere of material production are production assets (capital). Finance and credit are sources of capital investment and working capital formation. Financial methods, as a rule, satisfy the constant needs of economic agencies in cash, credit - temporary needs. In the future, the role of credit resources as a source of capital investment will increase.
Expansion credit methods creates additional incentives for a more efficient use of monetary resources, puts their spending under the constant control of banks, which increases the self-supporting responsibility of economic entities for the results of production and financial activities. Non-refundable funding should be cut.
The relationship between finance and credit can be clearly seen in the processes of formation of financial and credit resources, where the action of both categories is mutually directed: with the help of finance, credit resources of banks are formed - funds of economic agencies, depreciation deductions, part of the proceeds from the sale of products to replenish working capital, which is not immediately sent to purchase material resources and other means. With the help of a loan, financial resources are formed:
loans replenish the financial resources of economic entities - until repayment;
payments of banks to the budget from income based on the results of their activities and in a number of other cases;
possible budget borrowing from banks to finance government spending.
Thus, there is a certain interchangeability of both categories in meeting the needs of expanded reproduction.
However, there are certain differences between the categories under consideration. If finance distributes and redistributes the social product, then credit participates only in redistribution, continuing the distribution begun by finance. The object of the loan is only that part of the cost that is currently temporarily free, which allows it to be accumulated in a loan fund to meet the needs of economic agencies and the population in need of funds.
A significant difference is the method of using the accumulated funds:
financing involves the direction of funds in a gratuitous and indefinite manner, and lending - on terms of repayment, urgency, payment;
the most important principle of credit is the material security of the loans issued.
Finance is closely related to the settlement system, since their functioning is based on mutual settlements between individual business entities. Calculations do not represent an economic category, they are a tool for the implementation of the mentioned categories. In this case, the function of money is used as a medium of circulation and a means of payment. Timely execution depends on the clarity, well-organized calculations. financial transactions, the formation of trust funds, the unhindered promotion of financial resources in the necessary areas.
Calculations of economic entities in the sphere of material production for manufactured products, goods and services precede the action of finance and contribute to the subsequent implementation of financial relations. Specific indicators characterizing the state of settlements in the field of material production are accounts receivable and accounts payable... The level of this debt affects the financial condition of economic agencies and depends on the state of contractual discipline, the solvency of consumers. The state of settlements in the national economy is currently unsatisfactory: the amount of non-payments for mutual settlements between economic entities and overdue debts on bank loans and wages are increasing. Failure to comply with contractual obligations is a factor of financial instability and leads to wasted expenses and loss of funds in the form of fines. This is a direct deduction from income and ultimately from the payroll. Cash settlement is an important link in commercial settlement and self-financing. Their normal functioning is an indispensable condition for the reproduction process and the operation of economic value categories - price, finance, credit, wages.
The emergence and development of finance
The term "finance" appeared in the XIII century. in the commercial cities of Italy and at first denoted any cash payment... In the future, the term received international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of state funds of funds.
Finance
Finance- (financia - lat.) - income, payment for a transaction
Finance- (modern) - cash flows and funds arising in the course of economic activity
The main stages of the development of finance:
1. Pre-capitalist characterized by:
The emergence of the state;
Allocation of the state treasury and its complete separation from the property of the monarch;
The emergence of monetary relations and the beginning of the development of commodity production;
The beginning of the formation of funds of funds;
The emergence and beginning of the development of financial relations, public finance.
2. Capitalist characterized by:
Commodity-money relations acquire a universal character;
Finance expresses economic relations in connection with the formation, distribution and use of funds of funds in the process of distribution and redistribution of the national income of the country;
The concentration of the main financial resources of the capitalist states in the country's budget.
Factors the emergence of finance as a historical category:
Social division of labor and division of society into social groups;
Development of commodity-money relations in connection with production growth and an increase in GDP and personal income;
The place of finance in the system of commodity-money relations
In the broadest sense of the word, finance is considered by foreign economists as the science of managing spending and the flow of scarce monetary resources over a period of time. Financial solutions characterized by the fact that expenses and income:
1) spaced in time;
2) as a rule, they cannot be accurately predicted either by decision-makers or by anyone else.
The financial system is a collection of markets and other instruments used to conclude financial transactions, exchange assets and risks. This system includes the markets for stocks, bonds and other financial instruments, financial intermediaries (such as banks and insurance companies), firms offering financial services (for example, financial advisory companies), and regulatory bodies for all these institutions.
Such an expansive interpretation in modern conditions associated with the domination of the monetary economy. The monetary form of expression is an essential feature for finance. In historical terms, money appeared before finance as a result of the transition from a subsistence economy to the production and exchange of goods.
The immediate prerequisites for the emergence of money were:
Transition from subsistence economy to production of goods and exchange of goods;
Property segregation of producers of goods - owners of manufactured products;
The presence of a need for the purchase of goods produced by other manufacturers.
Each of the two initial types of money created its own culture, which was markedly different from all previous ones. Now, at the beginning of the 21st century, the world is entering the third stage of monetary history - the era electronic money and the virtual economy. Money made it possible to organize society on a higher and more complex level than could be achieved by family ties or the use of force. Finance arises as a result of the development of such functions of money as a means of payment and as a store of value (value). But it would be a mistake to think that other functions of money have nothing to do with finance. Finance is, first of all, the movement of cash income, and cash income is ordinary money that has all the functions. The peculiarity of money distributed (redistributed) by the financial system is different: they have a designated purpose, which is determined by the owner of these incomes. And since this purpose can be theoretically anything you like, then for its implementation, of course, you need full-fledged money with a set of all available functions of money. So in this case, too, there is a close relationship between finance and the functions of money.
Functionality in the duality of finance:
1) the function of accumulating planned money is the essence of financial energy for future period... Planned money, drawn up by calculated amounts in the table of the financial plan, fund or budget, set the parameters (values by month) for the movement of real money in the process of executing the financial plan in the revenue and expenditure side;
2) debt relations:
the function of establishing relations of participation in the production of income; - the function of distribution of income between interested parties in the framework of financial law.
Forms of finance. Finance exists in certain forms of organized accumulation and purposeful action of financial energy. Financials is a planning category - it is a planned money that represents the distribution and reallocation of income for the planning period. In practical economic work, financial plans are in the form of tables. The structural forms of finance are funds, budgets and reserves.
The essence of finance
Finance- these are monetary relations that arise between economic entities in the process of formation, distribution and use of funds of funds.
The essence of finance, the laws of their development, the sphere of commodity-money relations covered by them and the role in the process of social production are determined the economic structure of society, the nature and functions of the state.
The theory of finance is part of economic theory, i.e. the doctrine of specific production relations caused by the development and functioning of commodity-money relations, as well as the existence of the state.
Finance- certain economic relations that arise at the time of movement of money, when they are transferred or transferred in cash or by bank transfer.
Financial relations- this is part of the money relationship, because the sphere of monetary relations is broader.
Distinctive features of finance:
1. Money the basis of finance.
2. Finance- the main tool for distributing the created value between different economic entities (government, org-mi and households)
3. In the process of distribution, funds of monetary funds are formed (centralized - from the state, decentralized - from organizations).
4. The relationship between different economy. subjects are most often unequal.
Money
General equivalent , with the help of measured costs of associated producers
Have five functions
Arise before finance
Embrace broader economic relationships
Finance
Economic distribution and redistribution tool GDP and ND, an instrument of control over the education and use of funds of funds
Has its own special functions
Arises later than money
Covers narrower relationships associated with the formation of funds.
Thus, finance plays a significant role in social reproduction.
Functions of finance as a manifestation of their essence.
1. Distribution function of finance expressed through the process of isp-I previously mobilized den. funds to meet the targeted needs of households. financial systems resources. At the level of world fin. relations in the implementation of fin. programs of international fin. institutions. At the level of the state. finance - in the execution of the expenditure side of the budget. At the level of a business entity - when distributing the received profit. At the level of private finance - in the distribution of household income.
2. Control function of finance It is expressed through financial control over the quantity and quality of parameters of the processes of both mobilization and the use of financial resources. The main regulatory bodies are: the Accounts Chamber of the Russian Federation; Min. Finance; Treasury Department; Federal Service for Financial and Budgetary Supervision (FS FBS). The control function is implemented through: financial farm. control; financial budget. control; financial banking control.
3. Regulatory function of finance closely related to the intervention of the state with the help of finance in the reproduction process. At the micro level, this f-I stimulates the activity of the org-s, creating various funds, which helps to improve the quality of the production process, increase its volume, improve mater. the position of the workers. At the macro level, this function is used by the state. income, tax, credit, contributes to the satisfaction of national needs.
Financial system of the Russian Federation
Financial system- a set of different spheres (links) of financial relations, each of which is characterized by peculiarities in the formation and use of funds of funds, a different role in social reproduction.
The financial system of the state can be viewed from the position of its functions or its institutions.
Functional characteristic:
The financial system is a set of monetary relations operating in the state.
Institutional characteristics:
Financial system - aggregate financial institutions(banks, stock exchanges, etc.)
Types of financial systems:
1. Bank type financial system- The bulk of the country's national income is redistributed through the loan capital market (most European countries)
2. Market type of financial system- The bulk of the country's national income is redistributed through the stock market.
3. Budget type- The bulk of the national income is redistributed in a centralized manner by the state through the system of budgets and extra-budgetary funds. (used in Russia, Sweden, China in a number of other countries)
Depending on the feature underlying the construction of the financial system, it is possible to present its different structural understanding. Consider the structure of the financial system of the Russian Federation.
1. On the basis of stock, there are centralized and decentralized finance.
Centralized (public) finance includes:
· State budgets;
· State social extra-budgetary funds;
· Government credit;
· State insurance.
Decentralized finance includes:
· Finance of commercial enterprises and organizations;
· Finance of non-profit organizations;
· Household finances.
In the sphere of financial relations, the financial system of the Russian Federation includes:
· Finances of economic entities: enterprises, organizations by sectors (commercial, non-commercial), by sectors of the economy (industrial, agricultural, transport, etc.); banking and credit organizations; stock market participants;
· State finances: federal level; regional level; local (municipal) level;
· Insurance funds: public, private;
· Household finances.
The essence of finance is manifested in their functions. Finance has four functions: distribution, control, accumulation and regulatory. In a number of scientific studies, there are only two main functions of finance - distribution and control. "
The distribution function expresses the essence of finance as a distribution value category. The subjects are individuals and legal entities. The distribution object is the gross domestic product, national wealth, national income, and profit. The public purpose of finance is to distribute and redistribute the value of the object of distribution among the owners. As a result, centralized and decentralized monetary funds and various forms of financial savings are formed and used. Therefore, finances consist of the finances of the state, organizations and citizens. The national income formed among the participants in material production is subject to redistribution. The financial distribution is inherent in multistage, giving rise to various types of distribution - intra-farm, intra-sector and inter-sector.
The basis of the control function of finance is the movement of financial resources that occurs both in stock and non-stock forms. Financial information acts as a tool for implementing the control function of finance. It consists in financial indicators available in operational, accounting and statistical reporting. Financial indicators allow you to see the various aspects of the work of enterprises and evaluate the results of their economic activities. The basis of the
The concept of "financial system" is a development
| we have a more general definition - "finance". Finance expresses economic social relations, which manifest themselves in different ways, have their own "specifics in each link of the financial system. Each link of the financial system is
¦ a certain area of financial relations, and the financial system as a whole is a set of various
The sphere of financial relations, in the process of which funds of funds are formed and used.
The financial system is a system of forms and methods of formation, distribution and use [of funds of the state and enterprises.
I The state budget is the leading link in the financial system. In terms of its material content, it is the main centralized fund of state funds, the main instrument of the first redistribution of the national income. Through this
The first link of the financial system is redistributed up to 40% of the country's national income.
I. Main income state budget* there are taxes amounting to 90% or more I of the total amount of his income. ¦
| The main expenditures are also made from the state budget: for military purposes, intervention in the economy, I maintenance of the state apparatus, social expenditures, subsidies and loans.
I The second link of the financial system is local (re-
| gional) finance. These include local budgets, the finances of enterprises owned by municipalities, and autonomous local funds.
Per local budgets fixed secondary- | nye taxes (mainly property). In local L budgets, in comparison with the state, more
1. Distribution function finance is essentially that:
- through the distribution and redistribution of the newly created value, national needs are provided, sources of financing are formed public sector economy, a balance of budgets and extra-budgetary funds is achieved within the framework of the unified budgetary system of the Russian Federation;
- the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result will be the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.
The main objects of implementation of the distribution function of finance will be obligatory payments to the budget and off-budget funds, as well as sources of financing the budget deficit.
It should be noted that the process of redistribution of income between different levels of budgets plays a special role.
2. Control function finance consists in the implementation of control over the real money turnover by the ruble, in which the state will be a participant, the formation of centralized funds of funds. Ruble control has two forms:
- control over changes in financial indicators, the status of payments and settlements;
- control over the implementation of the financing strategy.
In the first case, a system of sanctions and incentives is applied, using measures of a coercive or incentive nature. In the second case it comes on the implementation of a long-term financial policy, in which the main attention is paid to the anticipation of changes and the early adaptation of the order and conditions of financing to them. Constant changes and updates in the financial system need an adequate response to ϶ᴛᴏ of all branches of government.
The control function of finance always has a specific form of manifestation. It is worth noting that it can be directed to a budget of a certain level, an off-budget fund, an enterprise or institution, etc.
The control function of state and municipal finance is implemented in the following main areas:
- control over the correct and timely transfer of funds to centralized funds;
- control over compliance with the specified parameters of centralized funds, taking into account the needs of industrial and social development;
- control over the targeted and efficient use of financial resources.
Many modern economists identify other functions of finance. It is worth noting that they are subjective and serve as management tools.
Regulatory function closely related to the intervention of the state with the help of finance in the reproduction process.
Stimulating function state and municipal finance is to ensure the development of various spheres of public life through a system of benefits and economic programs.
Fiscal function of finance connected with supporting unprofitable, but necessary sectors of the economy. It is worth noting that it is carried out using a variety of methods and techniques (investment, taxation, limiting, etc.)
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Introduction
1. The essence of finance
1.1 Prerequisites for the emergence of finance
1.2 Concept and necessity of finance
1.3 Features of finance
2. Functions of finance as a manifestation of their essence
2.1 Distribution function
2.2 Control function
2.3 Other functions
3. Discussion issues of the essence and functions of finance
Conclusion
List of used literature
Introducee
Conditions have been created in our country for entrepreneurial activity... But the lack of economic knowledge and the ability to apply it in practice impedes economic transformation. A small number of specialists leads to the fact that our budget is drawn up and accepted by people who have only a mediocre understanding of what finance is. One of the most important conditions for improving the well-being of citizens and the entire state as a whole is increasing economic knowledge, training specialists with deep knowledge of finance, their structure, functions and who are able to apply this knowledge in practice, creating favorable conditions for the development of enterprises and small businesses by the state.
The study of the issue of the essence of finance in our country is in a twofold state. On the one hand, the administrative-command views are strong, on the other, market views on the essence of finance are gaining strength.
The subject of the study of the essence of finance is still relevant because there is still no clear idea of what finance is, the boundaries of their distribution.
The course work also discusses in detail the functions of finance, their general characteristics... The study of functions is necessary for the implementation of effective financial performance.
The existence of debatable questions about the essence and functions of finance and disagreements about their role in the life of society indicate that this issue requires detailed study and understanding.
Consideration of the issues of the essence and necessity of finance, their specific features, functions and debatable issues of the essence and functions of finance is the main goal of this work.
From the general flow of information sources, I chose the main and most important ones, for example, S.V. Galitskaya. "Money, Credit, Finance", V.E. Leontiev "Finance", Kovaleva A.M. "Finance", Rodionova VM. "Finance", Drobozina LA "Finance" and several other authors, as well as when writing a term paper, I used such magazines as "Voprosy Economiki", "Finance".
1. The essence of finance
1.1 Prepreconditions for the origin of finance
The modern world is a world of all-round and omnipotent commodity-money relations. They permeate the inner life of any state and its activities in the international arena.
In the process of reproduction at different levels, from the enterprise to the national economy as a whole, funds are formed and used. In this case, it does not matter in what form the money appears: in the form of cash paper signs, or in the form credit cards, or on listed, in bank accounts, amounts generally out of any form.
The system of education and the use of funds of monetary resources involved in ensuring the reproduction process is the finances of society. And the totality of economic relations arising between the state, enterprises and organizations, industries, territories and individual citizens in connection with the movement of monetary funds, forms financial relations. They are complex, diverse and resemble the circulatory system of a living organism, through which the movement of goods and services, a kind of exchange of substances between the economic cells of a social organism, takes place.
Finance is a historical category. They appeared simultaneously with the emergence of the state with the stratification of society into classes. The term finansia originated in the 13th - 15th centuries. in the commercial cities of Italy and denoted any cash payment. In the future, the term received international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of state funds of funds. Thus, this term reflected, firstly, monetary relations between two subjects, i.e. money acted as the material basis for the existence and functioning of finance (where there is no money, there can be no finance); secondly, the subjects had different rights in the process of these relations: one of them (the state) had special powers; thirdly, in the process of these relations, a nationwide fund of funds - the budget - was formed (therefore, we can say that these relations were of a fund nature); fourthly, the regular flow of funds to the budget could not be ensured without giving taxes, fees and other payments a state-compulsory nature, which was achieved through the legal rule-making activity of the state, the creation of an appropriate fiscal apparatus.
The following financial prerequisites are distinguished:
First premise... In Central Europe, as a result of the first bourgeois revolutions, although monarchical regimes were preserved, the power of the monarchs was significantly curtailed, and, most importantly, the head of state (monarch) was rejected from the treasury. A nationwide fund of funds arose - the budget, which the head of state could not single-handedly dispose of.
Second premise... The formation and use of the budget began to be systemic, i.e. systems emerged government revenues and expenses with a certain composition, structure and legislative consolidation.
The third premise... Monetary taxes became predominant, whereas earlier state revenues were formed mainly from taxes in kind and labor duties.
Thus, finance expresses a certain area of production relations and belongs to the basic category. But what is the role of the state here? Some economists assume that financial relations are fixed by the legislator in the corresponding regulations determine the leading role of the state in the formation of these relations and, therefore, refer finance to legal, i.e. superstructure category. But the fact is that a legal act only fixes the content of objectively existing economic relations, proving that finance is, first of all, an economic category (and refers to the basis) and only then - a legal category, i.e. the state, according to the apt expression of the economist E. A. Voznesensky, "dresses" financial relations in a legal form, gives them an appropriate state-power form while preserving their objectively economic character. "
However, the role of the state cannot be diminished. The state actively influences finances depending on the political structure, main tasks, current conditions and other reasons. Through its financial policy, the state can influence the economy, exerting both positive and negative influence on it.
Since, undoubtedly, finance is a historical category (they have stages of origin), then two main stages in the development of finance can be distinguished.
At first, it was an undeveloped form of finance, when the bulk of money (2/3) was spent on military purposes, and finance had practically no impact on the economy. Other characteristic feature this period was the narrowness of the financial system, since it consisted of one link - the budget, and the number of financial relations was limited. All of them were associated with the formation and use of the budget.
With the development of commodity-money relations, the need arose for new national funds of funds and, accordingly, new groups of monetary relations regarding their formation and use.
At present, regardless of the political structure and level of the economic structure of a particular state, finance has entered a new stage of its development. This is due to the multilevel financial systems, a high degree of impact on the economy, and a wide variety of financial relations.
Along with traditional public finances, local finances, extra-budgetary special government funds, and finances of state enterprises have developed significantly. Completely new areas of financial relations have emerged, such as the finance of interstate communities.
1.2 Pconcept and need for finance
Finance as a scientific concept is usually associated with those processes that appear on the surface of social life in various forms and are necessarily accompanied by the movement (cash or non-cash) of funds. Whether we are talking about the distribution of profits and the formation of on-farm funds at enterprises, or about the transfer of tax payments to the state budget revenues, or about the contribution of funds to off-budget or charitable foundations- in all these and similar financial transactions, there is a cash flow.
While very conspicuous, cash flow alone does not reveal the essence of finance. To comprehend it, it is necessary to identify those general properties that characterize the internal nature of all financial phenomena.
If we ignore the numerous forms in which financial processes take place, we can see what they have in common - the underlying relations between various participants in social production, or social relations. By their nature, these relations are production (economic), since they arise directly in social production.
Economic relations are extremely diverse: they arise at all stages of the reproduction process, at all levels of management, in all spheres of social activity. At the same time, homogeneous economic relations that characterize one of the sides of social life, being presented in a generalized abstract form, form an economic category. Finance, expressing production relations that actually exist in society, which have an objective character and a specific social purpose, act as an economic category.
The peculiarity of the relations that make up the content of finance as an economic category lies in the fact that they always have a monetary form of expression.
The monetary nature of financial relations is an important sign of finance. Money is a prerequisite for the existence of finance. If there is no money, there can be no finance, for the latter is a social form conditioned by the existence of the former.
In this regard, it is inappropriate to refer to finance not only monetary, but also natural relationships. The existence of natural obligations in the era of feudalism, the collection of tribute by the slave state from its citizens and conquered peoples, naturalization public relations in conditions of upset money circulation does not at all prove the natural nature of financial relationships. They talk about something else - the functioning of finance is possible only under certain conditions, the absence of which immediately narrows the scope of this category. The emergence of financial relations always makes itself felt by the real cash flow. The absence of such a movement at the stages of production and consumption of the reproduction process indicates that they are not the place of origin of finance.
The real movement of funds occurs at the second from the third stage of the reproduction process - in distribution and exchange. However, the nature of the movement of value (in its monetary form) at these stages is different, which does not allow both sides to be attributed to the sphere of the functioning of finance.
At the second stage, the movement of value in monetary form is carried out separately from the movement of goods and is characterized by its alienation (transfer from the hands of some owners to the hands of others) or targeted separation of each part of the value (within one owner). At the third stage, the distributed value (in monetary form) is exchanged for the commodity form, i.e. acts of purchase and sale are made. Alienation of value itself does not occur here; it only changes its form - from monetary to commodity.
Thus, at the second stage of reproduction, there is a one-sided (without a counter equivalent) movement of the monetary form of value; on the third - two-way (counter) movement of values, one of which is in the form of money, and the other in the commodity.
At the third stage of the reproduction process, constantly performed exchange operations are served in two categories: first, money as a universal equivalent, and secondly, price. No other social instrument is needed here anymore. Consequently, there is no place for finance in exchange.
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. Therefore, an important feature of finance as an economic category is the distributive nature of financial relations.
However, this feature is not enough to fully characterize finance. The variety of distributional relations leads to the fact that at the second stage of the reproduction process, various economic categories operate: finance, credit, wages, price. Finance differs significantly from other categories operating at the cost allocation stage.
The initial sphere of the emergence of financial relations are the processes of the primary distribution of the value of a social product, when this value breaks down into its constituent elements and the formation of various forms of monetary income and savings occurs. Allocation of profit, deductions for social insurance, depreciation deductions, etc. in the structure of proceeds from the sale of products. carried out with the help of finance and reflects the process of distribution of value in accordance with the intended purpose of each of its parts. Further redistribution of value between business entities (withdrawal of part of the profit at the disposal of the state, payment of taxes by citizens of the country, etc.) and the specification of its intended use (direction of profit for capital investments, the formation of economic incentive funds from various sources) also occurs on the basis of finance ... Thanks to them, various processes of redistribution of the value of the social product are carried out in all structural units economy (in the branches of material production and non-production sphere) and at different levels of management.
The distribution and redistribution of value through finance is necessarily accompanied by the movement of funds that take a specific form of financial resources; they are formed by business entities and the state at the expense of various types of monetary income, deductions and receipts, and are used for expanded reproduction, material incentives for workers, satisfaction of social and other needs of society. Financial resources are the material carriers of financial relations. The belonging of financial resources to a specific economic entity and the state allows them to be separated from the money of the population and, in particular, to draw the line between finance and wages.
Potentially financial resources are formed at the production stage, when new value is created and the old one is transferred. But precisely potentially, since the worker does not produce financial, but the products of labor in commodity form. The real formation of financial resources begins only at the stage of distribution, when the cost is realized and the specific economic forms of the realized value are isolated as part of the proceeds.
The use of financial resources is carried out mainly through special purpose monetary funds, although a non-stock form of their use is also possible. Financial funds are important component general system of monetary funds, functioning in the national economy. The stock form of the use of financial resources is objectively predetermined by the needs of expanded reproduction and has some advantages over the non-stock form: it allows more closely link the needs of people with the economic possibilities of society; ensures the concentration of resources on the main directions of development of social production; makes it possible to more fully link social, collective and personal interests and the more actively to influence production.
Consideration of financial resources as material carriers of financial relations makes it possible to distinguish finance from the general set of categories involved in value distribution. None of them, except for finance, is characterized by such a material carrier. Hence, an important specific feature of finance that distinguishes them from other distribution categories is that financial relations are always associated with the formation of monetary income and savings, which take the form of financial resources. This feature is common to financial relations of any socio - economic formations, wherever they function. At the same time, the forms and methods by which financial resources are formed and used have changed depending on the changes in the social nature of society.
The study of the economic essence of finance, the identification of the specific features of this category allows us to give the following definition.
Finance is monetary relations that arise in the process of distribution and redistribution of the value of the gross social product and part of the national wealth in connection with the formation of monetary incomes and savings from business entities and the state and their use for expanded reproduction, material incentives for workers, satisfaction of social and other needs of society ...
As a part of industrial relations, finance belongs to the economic basis; their conditioning by value distribution underlines the historically transitory nature of finance.
1.3 Features of finance
Features of finance:
· Bank funds are issued for a certain period; on certain conditions and subject to return;
· Funds for financing are issued for specific purposes; free and irrevocable.
With the help of a loan, financial resources are redistributed between enterprises, organizations and citizens.
There is a constant transfusion 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 the reproduction process.
Finance can affect all stages of reproduction and the process as a whole. Objective prerequisites for influence are associated with two circumstances:
Finances function in all spheres of social production (production, circulation, consumption)
· Finance has the potential property of being a catalyst for economic processes, which follows from the distribution function.
Distribution begins in the area of material production. This area includes 3 stages, where the production stage is decisive.
a) the sphere of material production, thus, influences the nature and scale of production;
b) the sphere of circulation, it is represented by trade. It is characterized by the processes of buying and selling. The consumer properties of a product do not change, but its value changes. The product is sold, the company receives revenue. Then this proceeds are distributed to the funds of compensation, accumulation, consumption. Financial relationships precede and complete the process of buying and selling.
c) the sphere of consumption, where they distinguish:
Commercial organizations;
Budgetary organizations
Currently, you can find mixed-type organizations where commercial structures allocate money for budget organizations.
There are opportunities for the use of finance that stem from the economic nature of finance. Since this is a distributional 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 instrument of management.
An economic tool is an economic category embodied in specific forms of manifestation and consciously used by society to achieve specific goals.
An economic instrument, including finance, carries two principles: the first is objective (arising from the economic category), the second is subjective (the instrument of implementation economic policy state).
Finance affects 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).
The quantitative side of influence is characterized by proportions in the distribution process. The qualitative impact characterizes the impact of finance on the material interests of business entities through various forms of organization of financial relations.
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 in which the active role of finance in social production under market conditions is manifested. General approach to assess the results achieved with the help of finance, allows us to consider the role of finance in 3 directions:
o from the position of meeting the needs of expanded reproduction with the necessary financial sources;
o from the point of view of the use of finance to regulate the value structure;
o from the standpoint of using finance as an economic incentive.
Finance is an integral part of monetary relationships, but not all monetary relationships are financial.
Finance differs from money, both in content and in the functions performed. Money is a universal equivalent, with the help of which, first of all, the costs of labor of associated producers are measured, and finance is an economic instrument for the distribution and redistribution of gross domestic product and national income, an instrument of control over the formation and use of funds of funds.
The reproduction process is a collection of continuously repeating cycles.
Thus, the criterion for classifying certain relations as financial are:
1. Real cash flow, i. E. transfer from one owner to another.
2. Distributive nature of these relations.
3. Place of origin - the second stage of the reproductive process.
2. Functions of finance as a manifestation of their essence
Finance is an integral part of monetary relations, therefore, their role and significance depend on the place that monetary relations occupy in economic relations. However, finance differs from money not only in content, but also in the functions performed, in which their essence is manifested. Functions refer to the “work” that finances do.
No one denies that finance is a set of monetary relations organized by the state, in the process of which the formation and use of funds of funds is carried out. And to the question of what is the source of the formation of numerous funds at different levels, the answer, as a rule, is the same - the gross domestic product. The process of allocating GDP can be carried out using financial instruments: norms, rates, tariffs, deductions, etc., established by the state.
If we talk about finances in general, then, apparently, it should be considered that they perform two main functions: distribution and control.
2.1 Distribution function
The distribution function is that the financial resources of the enterprise are subject to distribution in order to fulfill monetary obligations to the budget, banks, and counterparties. Its result is the formation and use of targeted funds of funds, maintenance of an effective capital structure.
The distribution function manifests itself in the distribution of the national income, when the so-called basic, or primary incomes are created. Their sum is equal to the national income. The main income is formed when the national income is distributed among the participants in material production. They are divided into two groups:
1) wages of workers, employees, income of farmers, peasants employed in the sphere of material production;
2) income of enterprises in the sphere of material production.
However, primary income does not yet form public 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 national income is required, associated with:
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 non-production sphere, in which the national income is not created (education, health care, social insurance and social security, management);
redistribution of income between different social groups of the population.
As a result of redistribution, secondary or production income is formed. These include income received in the non-production sector, taxes (personal income tax, etc.). Secondary incomes serve to form the final proportions of the use of the national income.
By actively participating in the distribution and redistribution of the national income, finance contributes to the transformation of the proportions that arose during the primary distribution of the national income in the proportion of its final use. The income generated in the course of such a redistribution should ensure consistency between material and financial resources and, above all, between the size of monetary funds and their structure, on the one hand, and the volume and structure of means of production and consumer goods, on the other.
The redistribution of national income in the Russian Federation is taking place in the interests of the structural restructuring of the national economy, the development of priority sectors of the economy (agriculture, transport, energy, conversion of military production), in favor of the poorest segments of the population (pensioners, students, single and large mothers).
Thus, the redistribution of national income occurs between the production and non-production spheres of the national economy, branches of material production, individual regions of the country, forms of ownership and social groups of the population.
The ultimate goal of the distribution and redistribution of national income and GDP, accomplished with the help of finance, is to develop productive forces, create market structures for the economy, strengthen the state, and ensure a high quality of life for broad strata of the population. At the same time, the role of finance is subordinated to the tasks of increasing the material interest of workers and collectives of enterprises and organizations in improving financial and economic activities, achieving the best results at the lowest cost.
2.2 Control function
As a tool for the formation and use of monetary incomes and funds, finance objectively reflects the course of the distribution process.
The control function is manifested in the control over the distribution of GDP among the relevant funds and their spending for the intended purpose.
In the context of the transition to market relations, financial control is aimed at ensuring the financial development of public and private production, accelerating scientific and technological progress, and improving the quality of work in all sectors of the national economy. It covers production and non-production areas. It is aimed at increasing economic incentives, rational and thrifty spending of material, labor, financial resources and natural resources, reducing unproductive costs and losses, suppressing mismanagement and waste. Thanks to the control function of finance, society knows how the proportions in the distribution of funds are formed, how timely financial resources come to the disposal of various business entities, whether they are economically and efficiently used by them, etc.
One of the important tasks of financial control is to check the exact observance of the legislation on financial issues, the timeliness and completeness of the fulfillment of financial obligations to the budget system, the tax service, banks, as well as mutual obligations of enterprises and organizations for settlements and payments.
The control function of finance is also manifested through the multifaceted activities of financial bodies.
Employees of the financial system and tax service exercise financial control in the process of financial planning, in the execution of the revenue and expenditure parts of the budget system. In the context of the development of market relations, the directions of control work, forms and methods of financial control are changing significantly.
Distribution and control functions are two sides of the same economic process. Only in their unity and close interaction can finance manifest itself as a category of value distribution.
Financial information acts as a tool for implementing the control function of finance. It is concluded in the financial indicators available in the accounting, statistical and operational reporting. Financial indicators allow you to see the various aspects of the work of enterprises and evaluate the results of economic activities. On their basis, measures are taken to eliminate the identified negative aspects.
The control function, objectively inherent in finance, can be realized with greater or lesser completeness, which is largely determined by the state of financial discipline in the national economy. Financial discipline is a procedure for conducting a financial economy, complying with established norms and rules, and fulfilling financial obligations, which is mandatory for all enterprises, organizations, institutions and officials.
2.3 Other functions
In addition to its distribution and control function, finance also has a regulatory function. This function is associated with government intervention through finances (government spending, taxes, government credit) in the reproduction process.
Some authors do not recognize the distribution function of finance, believing that it does not express their specificity, since the processes of value distribution are served by different economic categories. But the supporters of the distribution function do not at all believe that it is generated by the very factors of the functioning of finance at the second stage of the reproduction process, but on the contrary, they associate it with the specific social purposes of finance, emphasizing that no other category acting at the stage of value distribution is so "Pay-as-you-go" like finance. However, today the regulatory function in Russia is poorly developed. In the conditions of market relations, finance must perform a stabilizing function. Its content is to ensure stable conditions in economic and social relations for all business entities and citizens. At the same time, the issue of the stability of financial legislation is of particular importance, since without this it is impossible to implement investment policy in the production sphere on the part of private investors. The achievement of stabilization is considered by the Government of the Russian Federation as a necessary condition for the transition of a market economy to socially oriented economic growth.
3. Discussion issues of the essence and functions of finance
Despite the long history of the existence of finance as a scientific concept, their essence has not been fully disclosed. The task of a more complete understanding of the essence of finance is complicated by the fact that it is deeply hidden behind the external forms of its manifestation, in which various financial phenomena appear on the surface of social life.
When studying the nature of finance, it is of paramount importance to have a correct understanding of fundamental theoretical problems and categories.
Such scientists and economists as V.P. Dyachenko, A.M. Aleksandrov, E.A. Voznesensky paid attention to the study of the problems of the essence of finance.In the period of Russia's transition to a market economy, such scientists and economists as V.Rodionova are engaged in research on theoretical problems in the field of finance. M., Drobozina L.A., Romanovsky M.V.
The study and correct understanding of the most important financial categories is hampered by the presence in the financial and economic literature of many different, sometimes opposite points of view on their necessity, essence, content and purpose.
In the theory of finance, one of the problematic issues is the question of the need for finance in general. The study of finance has been very little and superficial. There was a simplified, formal approach to solving this problem. So professors Voznesensky E.A. and Birman A.M. believed that the main condition for the emergence and functioning of finance is the state.
Most economists determined the objective necessity of finance by the presence of the state and commodity-money relations without a thorough justification of this provision in relation to the category of finance.
"Finance does not exist outside the state"
But this is an overly simplistic approach to a category such as finance. Professor Rodionova V.M. believes that the conditionality of a part of financial relations by the factor of the existence of the state does not give grounds for considering its activity as the cause that generates finance. In her opinion, a prerequisite for the functioning of finance is the availability of money, and the reason that gives rise to their appearance can be considered the needs of business entities and the state in the resources that ensure their activities.
However, there is another factor without which finance cannot function. This is social reproduction, with its continuously repeating and interconnected cycles. At present, almost all economists recognize the need for finance and their important role in the performance of the state's functions.
However, the question of the essence of finance and the boundaries of their distribution remains unclear.
Some economists considered finance as the totality of monetary resources or funds at the disposal of the state and enterprises. In the fifties, the understanding of finance as monetary relations that ensure the distribution of the aggregate social product, national income, was established. It persists to our time.
The transition to a market economy takes place in the conditions of the functioning of various objective value categories and monetary relations that permeate all aspects of life, monetary relations mediate the sale and purchase, wages, the sphere of application of free funds, and various relations with foreign countries. Here the question arises - are all monetary relations finance or do they exist, some kind of border of their distribution?
Economists A. M. Alexandrov, E. A. Voznesensky and others proceeded from the fact that finance and credit, having a monetary form and providing a distribution process in social reproduction, represent a single category of "finance in the broad sense of the word." Academician Chantlandze understood finance in an even more expanded sense, including banks, commodity prices, stock exchanges, money markets, gold, banknotes, bills of exchange, and securities. And in a narrow sense, he attributed only budgetary funds to finance.
Most economists, however, believe that finance is a special area and only a part of monetary relations that have their own specific characteristics. The main features that determine the category of finance should be considered:
1. Monetary nature of financial relations
2. Distributive nature of financial relations
3. Financial relations are always associated with the formation of monetary funds that take the form of financial resources
4. Non-equivalence of distribution relations (This distinguishes finance from sales-purchase relations)
5. Irrevocability and gratuitousness (This distinguishes finance from credit)
Based on these signs, one can see that finances arise and function at the second stage of the reproduction process - at the stage of distribution and redistribution of the value of the social product. It follows from this that the broad interpretation of the essence of finance is questionable. Distribution and exchange are different stages of the reproductive process, which have their own, special economic forms of expression. Therefore, it is illogical to attribute monetary relations of different nature, arising at different stages of reproduction, to the same category - finance. Limiting the place of finance to the distributive and redistributive stage of reproduction introduces rigid boundaries for the functioning of finance, but this does not mean that finance limits its action at this stage of reproduction. Finance actively influences all stages of the reproduction process through indirect factors.
Among the debatable is the question of the qualitative characteristics that determine the specifics of finance as an economic category. The debate is mainly about whether or not to include in the definition of finance such a feature as imperative. Moreover, the term "imperativeness" is interpreted by scientists in different ways: some see it as an active role of the state in organizing financial relations, while others see it as the reason that gives rise to the functioning of finance.
If imperativeness is understood as the practical activity of the state aimed at organizing financial relations, developing forms of their manifestation and use, then this use of the term does not raise objections, but does not add anything to the characterization of the essence of finance.
However, in some publications, imperativeness is interpreted as an essential feature of financial relations. It is emphasized that when characterizing the category of finance, this feature cannot be dispensed with, since it is the state that creates new distributive financial relations, that the direct cause of the emergence and development of finance is the activity of the state and its bodies. Such statements are inappropriate, because it is not the activity of the state itself, but the objective needs of social development that causes the existence of finance.
Among the controversial issues is also the question of the functions of finance. Many economists believe that finance has two functions - distribution and control. Although in the literature one can find statements that finance, in addition to these two functions, has others: production (different authors call it differently), stimulating, regulating, etc. But at the same time, the question of the functions of finance is replaced by a question of their role in social reproduction, since these are different, albeit interrelated issues. Of course, finances play an important role in social reproduction, with their help, the efficient use of production factors can be stimulated, cost proportions can be regulated, conditions for an economy regime are provided, etc. However, it is inappropriate to equate these results achieved through the functioning of finances with their functions.
Some authors do not recognize the distribution function of finance, believing that it does not express their specificity, since the processes of value distribution are served by different economic categories. But the supporters of the distribution function do not at all believe that it is generated by the very fact of the functioning of finance at the second stage of the reproduction process, but on the contrary, they associate it with the specific social purpose of finance, emphasizing that no other category acting at the stage of value distribution is so "Pay-as-you-go" like finance.
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, they are more reminiscent of the mechanism for implementing the distribution function than an independent way of operating the category of finance.
The presence of 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 more actively develop ways to better use this category in business practice, scientifically substantiate measures aimed at financial recovery of the economy and improving the system of financial relationships.
Conclusion
From all of the above, we can conclude that finances are an integral part of monetary relations and play a huge role in the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions, tasks of the state and ensure conditions for expanded reproduction. You can also say that finance is objectively necessary, as it is conditioned by the needs of social development. The state can, taking into account the objective necessity of financial relations, develop various forms of their use: introduce or cancel various types of payments, change the forms of use of financial resources, etc. The state cannot create what is objectively not prepared by the course of social development. It only establishes the forms of manifestation of objectively overdue economic relations. Without finance, it is impossible to ensure the individual and social circulation of production assets on an expanded basis, to regulate the sectoral and territorial structure economically, to stimulate the fastest implementation of scientific and technological achievements, and to satisfy other social needs.
The functions of finance were considered, namely: distribution and control - these functions are carried out by finance at the same time. We must not forget that in addition to these two main functions, there are others: the regulatory function - it is associated with the intervention of the state through finances in the reproduction process, the stabilization function - provides stable conditions in economic and social relations for all business entities and citizens.
The presence of controversial issues necessitates further development of theoretical problems of the essence of finance. A deeper knowledge of the economic nature of finance, their inherent properties will allow us to more actively develop ways to better use this category in business practice, scientifically substantiate measures aimed at financial recovery of the economy and improving financial relationships in our country.
Thus, in the course work, I tried to reveal the following issues: the prerequisites for the emergence of finance, their necessity and features, the functions of finance as a manifestation of their essence and the presence of debatable issues of the essence and functions of finance.
List of used literature:
1. Galitskaya S.V. "Money, Credit, Finance". / M., 2002.
2. Drobozina L.A. "Finance. Money turnover. Credit ": Textbook for universities. - M .: Finance, UNITI, 1997.
3. Kovaleva A.A. "Finance and Credit". - Uch. allowance, M .: Finance and statistics, 2003.
4. Leontiev V.E. "Finance. Money, Credit and Banks ”. / M., IVESEP, 2003.
5. Lavrushin OI "Money. Credit. Banks ". / Tutorial... - Moscow 2000.
6. Rodionova V.M. "Finance. M., Finance and Statistics, 2001.
7. Sabanti B.M. “Theory of finance .; Manager 1998
8. Chantlandze. "Questions of the theory of finance." Tbilisi, 1999
9. Directory of the enterprise financier. - 2nd edition, add. and revised - M .: Infra-M, 1999.
10. Birman A. M .; Finance in the system of value categories; Journal of Economic Issues. 1997 No. 10
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