The role of finance in the process of expanded reproduction. Finance Part of the financial relationship that provides for the needs of reproduction
The role of finance in the economy is diverse, but nevertheless, it can be reduced to three main areas:
1) financial support for the needs of expanded reproduction;
2) financial regulation of economic and social processes;
3) financial incentives for the efficient use of all types of economic resources.
1) Financial support for the needs of expanded reproduction means covering costs from financial resources. There are the following main sources of financial resources:
Own funds(authorized capital, profit, etc.);
Borrowed funds are long-term and short-term credits and loans;
Raised funds are funds that do not belong to the enterprise, but are used in its turnover (debts to the budget, employees of the enterprise, suppliers, etc.).
2) Financial regulation of economic and social processes- the second direction of the impact of finance on the development of the economy. The regulation of the economy is a change in the growth rates of individual structural units for the restructuring of production in accordance with the changing needs of society. The economy is regulated through redistribution financial resources: it is enough to allocate financial resources and the pace of development of an industry or region accelerates, and vice versa, the cessation of funding can stifle any production. There are three types of economic regulation.
self-regulation;
State regulation economy;
Regulation of the economy through the finances of the enterprise itself.
1) Financial incentives for the efficient use of all economic resources , which is done through:
2) efficient investment of financial resources;
3) creation of incentive funds;
4) the use of budgetary incentives and financial sanctions.
3. The essence and structure of the financial system of the Russian Federation
Financial system - it is a set of blocks, links, sub-links of financial relations.
The financial system of the Russian Federation consists of three major blocks:
public finance;
local finance;
Finances of legal entities and individuals.
public finance reflect economic relations in the formation and use of centralized funds Money designed to ensure that the state performs its functions. Public finances include the state budget and public off-budget funds.
Local self-government, according to the Constitution of the Russian Federation, is separated from state system management. Local budgets - these are district, city, district budgets, budgets of settlements and rural settlements; district budgets - in cities.
Finances of legal entities and individuals - this is a set of economic relations for the formation and use of monetary funds of organizations, entrepreneurs, individuals, designed to ensure the process of expanded reproduction. Finance legal entities are divided into two groups: finance of commercial and finance of non-commercial organizations. As part of the finances of individuals, one can single out the finances of entrepreneurs who are not registered as a legal entity, and the finances of other individuals.
The financial system is not just the sum of blocks, links and sublinks, but a system that is a single whole, all the components of this system are closely interconnected by numerous types of economic ties and relations.
Finance - Exam
Question number 1. Social economic entity finance and their functions.
Finance- this is a set of monetary relations organized by the state, in the process of which the formation and use of national funds of funds for the implementation of economic, social and political tasks is carried out.
Socio-economic essence of finance consists, first of all, in ensuring regular commodity-money circulation and meeting the need for financial resources.
Finance Functions:
1. The formation of the state's cash income takes place in the sphere of material production, and the sphere of circulation only mediates these relations.
2. Distribution. In the process of production and trade, various incomes arise. However, in order to meet the development needs of society, it is necessary to redistribute part of these and other incomes. This is done by withdrawing a part of the indicated income, creating funds from these funds and spending funds for socially useful purposes: education, medicine, construction, defense, etc.
3. Control. Control over the correct accumulation and distribution of funds and resources. Therefore, finance also makes it possible to determine the most optimal ways of spending the accumulated funds, so that the needs of society are met as much as possible.
4.Regulatory is associated with government intervention through finances (government spending, taxes, public credit) in the reproduction process.
Question number 2. The system of financial relations. The concept of "financial system"
Financial system - a set of interconnected spheres and links of financial relations. the financial system is a combination of various spheres (links) of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in social reproduction.
The financial system of economically developed states includes the following links of financial relations:
- the state budget;
- state off-budget funds;
- state credit;
- insurance funds;
- stock market;
- financial and credit system of the state;
- finances of enterprises of various forms of ownership.
Question number 3. Relationship between government functions and the composition of the system of financial relations. Communication of the territorial-administrative structure of the state and the composition of the financial system.
National defense - financing of defense spending is carried out from the federal budget by appropriating funds to the Ministry of Defense of the Russian Federation;
With the help of state targeted non-budgetary funds, a number of tasks can be solved:
provide social assistance and services to the population through the payment of cash benefits, one-time assistance;
ensure the restoration and preservation of the working capacity of a person;
· provide social services to the population by financing social infrastructure institutions;
finance pensions.
With the help of targeted state non-budgetary funds, it is possible to influence economic development regions by financing certain economic activities, for example, the construction of a road network common use and etc.
Question number 4. The role of finance in expanded reproduction
Reproduction process:
1. Production - 2. Distribution - 3. Exchange - 4. Consumption
Extended reproduction includes the continuous renewal and expansion of production assets, the growth of GDP and its main part - the national income, the reproduction of the labor force and production relations. It is carried out using economic levers, commodity-money, financial and credit relations. an important role in the reproduction of all constituent parts GDP belongs to public finance And enterprise finance.
The state influences the reproduction process through the financing of enterprises and individual sectors of the economy, spending on social purposes and tax policy.
At the expense of centralized funds, the needs of expanded reproduction at the macro level are met; intersectoral and territorial redistribution of resources is carried out to equalize the level of economic and social development of individual regions G ions.
The role of finance is especially great in the expanded reproduction of enterprises of various forms of ownership, since with their direct participation GDP is created and distributed within the enterprise and industries. Finances are an important element in the reproduction of the labor force, the cost of which, in addition to wages, also includes the costs of education, health care, and social security. Expanding the scope of social spending challenges in many respects the requirements of the scientific and technological revolution. The rapid qualitative restructuring of production requires a constant change in the professional structure of the workforce, which entails further growth spending on education and retraining of personnel.
1. Financial support of the reproduction process
State and local finances are monetary relations that develop between state authorities and local government, on the one hand, and legal and individuals, on the other hand, in the process of cost distribution and redistribution of national income (partially national wealth) in connection with the formation, distribution and use of centralized monetary funds that meet the needs of the state and local government in solving economic, political and social problems.
An important role in the reproduction of all components of GDP belongs to the finances of enterprises and public finances.
Enterprise finance is the main tool for regulating reproduction proportions at the micro level, i.e. at the individual enterprise level. With their help, the reproduction of the structure of the production product is regulated, and the needs of expanded reproduction are financed. The regulation of the reproductive process is also carried out with the help of bank loan, the insurance system, depreciation policy, the budget when using the taxation mechanism, the provision of tax incentives, the allocation of budget subsidies.
Functioning in the sphere of material production, the finances of enterprises serve the circulation of production assets.
However, the normal functioning of the economy is possible provided that each industry and its structural subdivisions are organically connected with other industries. On this basis, the necessary proportionality of the structure of social production is achieved, which ensures its balanced development as a whole. IN market economy with the reduction of state intervention in the regulation of the economy, the coordinated functioning of different parts of the economy is achieved by various forms of regulation.
One of the forms of economic regulation is self-regulation, which is characterized by the formation of financial potential in different parts of the sphere of material production. In conditions of financial independence, each business entity can carry out the formation of sources of expanded reproduction at the expense of its own financial resources, as well as attracting funds from other enterprises on a joint-stock basis or on a share basis, using bank loans, and receiving budget allocations under certain conditions. Financial resources formed from various sources make it possible to invest in new production, expand existing enterprises, finance applied science and introduce its results into production, etc.
However, the market mechanism for regulating the economy is not always effective, since it is not always able to ensure the redistribution of income in accordance with the goals of the state. Together with self-regulation, state intervention in the economy has a great influence on the restructuring of the economy. Such intervention is necessary in connection with financial support priority areas economy, development of industrial and social infrastructure facilities, territorial distribution of resources to equalize the level of economic and social development individual regions etc. State intervention in the economy occurs through the mechanism of taxation, the provision of tax incentives and the allocation of budget allocations, subsidies and subventions, the financing of social events, as well as insurance and lending. At the expense of centralized funds, the needs of expanded reproduction at the macrolevel are met, i.e. at the level of the entire national economy.
Through the mechanism of taxation, the provision of tax incentives and the allocation of budget subsidies, the state encourages enterprises to implement options for the development of their activities that satisfy the interests and needs of the whole society. At the same time, state intervention in the economy has its limits: excessive state intervention in the form of providing unreasonable benefits and budget subsidies can lead to a weakening of economic incentives and a decrease in the efficiency of the entire market mechanism.
Forms of financial support for the reproduction process
The financial support of the reproduction process is carried out in three forms: self-financing, lending and public funding.
Self-financing is based on the use of own financial resources of business entities, and in case of their shortage, credit resources or borrowed funds are used in the form of issue valuable papers.
Lending is a way of financing the reproduction process at the expense of bank loans provided on terms of urgency, payment and repayment.
State financing is carried out mainly on a non-repayable basis at the expense of budgetary and non-budgetary funds.
In practice, all of the listed forms of financial support for reproduction costs are applied simultaneously.
Financial Incentives
One of the important tools for regulating the economy is financial incentives. As part of the financial incentives for the development of the economy and the growth of its efficiency, one can distinguish: priority and most effective areas for investing financial resources; budget stimulus, tax breaks and sanctions.
Investment
There are the following main areas of investment of financial resources:
a) financing the structural restructuring of the economy in order to develop the most priority areas;
b) financing and financial support of science-intensive technologies and industries based on national raw materials;
c) financing of new promising competitive industries, areas and individual industries;
d) financing costs associated with the development of non-production infrastructure, the reproduction of the labor force, the improvement of its qualifications, the development of science, the professional training of personnel and the orientation towards new technologies.
Fiscal incentives
An increase in the efficiency of the economy and its individual sectors can be ensured through a system of budgetary incentives, acting in the form of tax incentives, full or partial exemption from certain taxes. The stimulating nature of the budget financing system is to support highly effective or socially significant projects.
Financial benefits and sanctions
The system of financial benefits and sanctions also has a stimulating value. Benefits can be provided to finance activities for the development of new high-tech industries, the development of scientific and technological progress, and environmental protection measures. As a benefit, full or partial exemption from taxes on profits of enterprises can act. The system of sanctions can be applied for violation of contractual terms, settlement and financial discipline.
The economic growth is possible only under conditions of a sharp increase in investment resources, strengthening the purchasing power of the ruble, and reducing the tax burden on enterprises.
2. Financial resources and sources of their formation
The material and material embodiment of the objective economic category"finance" and the carrier of financial relations are financial resources.
With the wide use of the term "financial resources", its interpretation is different. In Russia, it was first used in the preparation of the first five-year plan of the country, which included a balance of financial resources, and in the preparation of the GOELRO plan.
Since finance is economic relations mediated by money, in so far as financial resources should be understood only those resources that have a monetary form, in contrast to material, labor, natural and other resources. Thus, we can make the first and important conclusion that financial resources exist only in monetary form.
However, financial resources are only a part of the monetary resources used by state authorities and local governments, as well as business entities and the population. In addition to financial resources, monetary resources include credit resources, monetary incomes of the population, working capital of enterprises.
Financial resources always have an owner or a person to whom the owner has delegated the rights to dispose of them. Financial resources cannot be outside property relations. And only that part of the monetary resources that is owned or disposed of by state authorities and local governments, economic entities and serves the process of social reproduction (expanded reproduction, material incentives for workers, social needs and other social needs) refers to financial resources.
Financial resources
Financial resources are part of the monetary resources owned or at the disposal of the state, local governments and business entities and used by them for the purpose of expanded reproduction, meeting the socio-cultural needs of the population and for the performance by the state and local governments of the functions and tasks assigned to them.
In theory and practice, financial resources are divided into centralized funds (state budget, off-budget funds) and decentralized financial resources (cash funds of enterprises). Allocate also the financial resources of the state, regions, local governments, enterprises.
The financial resources of the company are made up of the financial resources of economic entities, the financial resources of the federation and the subjects of the federation, the financial resources of municipal governments and the financial resources of insurance companies.
Financial resources are created in the process of distribution of the total social product and national income.
Sources of formation of financial resources of the company
National income (based on the distribution and redistribution of national income, centralized funds of funds are created; a part of the national income that is formed and remains at the disposal of enterprises creates decentralized funds of funds);
Part of the national wealth (previously accumulated funds: from the sale of gold reserves, the sale of energy resources, foreign exchange reserves, insurance reserves, etc.);
Cash income of organizations and enterprises in the manufacturing sector. First of all, they include profit, which acts as one of the forms of value of the surplus product.
Depreciation deductions formed at the expense of a part of the cost of fixed production assets;
Contributions of enterprises to state extra-budgetary social funds, property and personal insurance;
PAGE_BREAK--
Borrowed and borrowed funds (in the form of bank loans, commercial loans, accounts payable; funds received from the issue of securities, etc.);
Receipts from the population (taxes, fees, proceeds from loans and lotteries);
Income from foreign trade operations, external government loans and borrowings, income from securities purchased in the external financial market, foreign investment and humanitarian aid.
The main source of financial resources of society are national income, profits of organizations regardless of ownership, depreciation fund, insurance funds.
The sources of financial resources at the disposal of state authorities and local self-government are the gross domestic product (its parts: the amount of indirect taxes, national income), as well as part of the value of national wealth in the form of previously accumulated funds and income from foreign economic activity.
The use of financial resources is carried out mainly through special-purpose funds, although a non-fund form of their use is also possible. The stock form of using financial resources has some advantages: it ensures the concentration of resources in the main directions of economic development, makes it possible to more fully link public and personal interests and more actively influence production. Under market conditions, the financial resources of public authorities and local self-government bodies are formed and used in the stock form. Such funds include the budgets of the corresponding levels and state off-budget social funds.
Financial resources of business entities
The composition of the financial resources of economic entities is formed under the influence of the following factors:
Areas of activity (material production or non-production sphere);
Farming method (on a commercial or non-commercial basis);
Organizational and legal form;
Industry specifics.
The main sources of formation of financial resources of economic entities include:
Own funds;
Involved funds.
Sources of formation of financial resources of a commercial organization
The own sources of formation of financial resources of commercial organizations include:
Share capital (in joint-stock companies ah), share contributions (in consumer societies, production cooperatives), statutory contributions (at the time of the establishment of the enterprise);
Net revenue from core activities (this is revenue from the sale of products, work performed, services rendered; revenue from investment activity; proceeds from financial activities);
Non-operating income (received fines, penalties, forfeits for violation of the terms of contracts; assets received free of charge; receipts in compensation for losses caused to the enterprise, etc.);
Operating income(income from the provision of temporary possession and use of the organization's assets for a fee; proceeds from the sale of fixed assets and other assets other than cash (except for foreign currency), products, goods; receipts associated with participation in the authorized capital of other organizations, including interest and other income from securities, etc.);
Extraordinary income (receipts arising as a result of extraordinary circumstances economic activity(natural disaster, fire, accident, etc.), insurance compensation, as well as the cost material assets remaining after the write-off of assets unsuitable for recovery and further use).
The attracted sources of formation of financial resources of a commercial organization include:
Borrowed funds (long-term and short-term loans of banks and organizations);
Accounts payable;
Budget subsidies;
The main source of the formation of financial resources of an operating commercial organization is the net proceeds from the main activity, first of all, the net proceeds from the sale of products (works, services), due to which gross income and profit are formed, as well as depreciation deductions.
Use of financial resources of a commercial organization
The financial resources of a commercial organization are used in the following areas:
Payment of taxes and fees to the country's budget system (budgets of different levels and state extra-budgetary social funds of the federal and territorial levels);
Payment of interest for the use of a loan;
Repayment of loans;
insurance payments;
Financing capital investments;
Increase in working capital;
Financing of research and development work;
Fulfillment of obligations to the owners of a commercial organization (for example, payment of dividends);
Financial incentives for employees of the organization;
Financing the social needs of employees of the organization;
Charitable purposes;
Sponsorship;
The form of use of financial resources of economic entities is currently less regulated by the state. The procedure for the use of financial resources by commercial organizations is determined by their constituent documents, and therefore a combination of fund and non-fund forms is possible here. Part of the resources of business entities can be directed to the formation of funds designated purpose(for example, economic and material incentives, reserve funds). Use of financial resources for execution financial obligations before the budgets of different levels, state extra-budgetary social funds, banks, insurance organizations, the payment of penalties is carried out in a non-fund form.
Financial resources of a non-profit organization
For the implementation of the statutory activities of a non-profit organization and its expansion, its financial resources are formed. The composition of the sources of financial resources of a non-profit organization, as well as the mechanism for their formation and use, depends on its organizational and legal form and type of activity.
Sources of financial resources of a non-profit organization
Contributions of founders and membership fees;
Income from entrepreneurial and other income-generating activities;
Budget resources;
Free transfers of individuals and legal entities;
Other sources.
Use of financial resources of a non-profit organization
The financial resources of a non-profit organization are used to achieve the main goal of its creation:
Employee salaries;
Expenses for the operation of the premises;
Expenses for the purchase of equipment;
Payments to the country's budget system (budgets of different levels and state extra-budgetary social funds);
capital investments;
Overhaul buildings and structures;
Financial resources of individual entrepreneurs
Individual entrepreneurs carrying out their activities without forming a legal entity, as well as legal entities, form financial resources.
The sources of financial resources of individual entrepreneurs are:
Personal savings;
Income received as a result of economic activity;
Borrowed funds.
The financial resources of individual entrepreneurs are used for:
Business expansion;
Payments to the budget and state off-budget social funds;
Labor costs of employees;
Charitable contributions and donations;
If entrepreneurial activity is terminated, all income received is directed to the personal consumption of the entrepreneur.
Literature
Van Horn J.K. Fundamentals of financial management: Per. from English. / Ch. ed. series Ya.V. Sokolov. –M.: Finance and statistics, 1999.
Vakhrin P.I., Neshitoy A.S. Finance: Textbook. – 4th ed., revised. and additional - M .: Publishing and Trade Corporation "Dashkov and Co", 2005.
Voznesensky E.A. Finance as a value category. - M.: Finance and statistics, 1985.
Gusev S.I., Shvetsov Yu.G. Development of the federal treasury in the system of public finance management. - M.: Finance and statistics, 2006.
Financial relations are very diverse, and for further study it is necessary to classify them, dividing them into separate groups that will have similar properties, differ in homogeneity, and systematize, revealing the relationship between the constituent elements.
In its entirety, this variety of financial relations forms not a simple summand of elements, but a system that is an organic set of elements interacting with each other, all structural units which
interconnected. Despite the fact that each element in the financial system is relatively independent, performs only its inherent specific functions, nevertheless, all elements interact both with each other and with other systems, and in practice these relationships are important.
In addition, the whole variety of financial relations in society has an organic integrity capable of development. In the process of isolating the constituent parts of financial relations, it is necessary to find the correct classification sign for their division into structural groups, subgroups, in accordance with scientific criteria. The first such criterion is the role of the subject in social reproduction, which determines the ways of organizing finance, the availability, procedure for the formation and use of financial resources and financial funds.
It is in accordance with the role in social reproduction that the subjects of financial relations have differences in the needs for the financial resources they need. Thus, the direct participants in social reproduction - organizations and citizens engaged in entrepreneurial activities, produce goods, are engaged in the provision of various kinds of services. To carry out their activities, they need financial resources that would provide the production process with the required amount of money. Economic entities will be characterized by financial relations that ensure the continuity of the process of production of goods and the provision of services: the implementation of capital investments, depreciation, replenishment of the lack of working capital, etc. State authorities and local governments need financial resources to perform their functions - economic, social, political, to finance the constitutional rights of citizens, etc. And for this group of financial relations, which provide financial resources for the performance of the functions of state authorities and local self-government, other forms and methods of organizing finance will be characteristic.
Thus, the first classification feature, according to which the whole variety of financial relations is divided into components, is the role of the subject in social reproduction, according to which all financial relations are divided into two large groups, called spheres of the financial system, - finances of business entities, as well as state and municipal finances.
Financial relations in society, which are combined into a group with similar properties, exist objectively, since they are generated by the needs of society at a certain stage of its development. historical development. At the same time, the name of the spheres and links of the financial system of an individual state, its composition, the presence of certain elements of financial relations in it is influenced by the state, which establishes the so-called organizational and legal forms of the functioning of financial relations. The state in the relevant legislation establishes their specific types, determines the names of areas and links of the financial system, implements various types and methods of regulation, sometimes establishes prohibitions on certain types of financial relations. For example, in the former Soviet Union, entrepreneurial activity of citizens was prohibited, therefore, financial relations of citizens engaged in entrepreneurial activity were not present as a separate link in the financial system.
Therefore, we will first consider general approaches to the functioning of the financial system as a set of all financial relations, general groups of financial relations are given, and then the spheres and links of the financial system are considered Russian Federation in accordance with the legislation of the Russian Federation.
IN general view the financial system is shown in Figure 1.2. It is defined as a set of interconnected spheres and links of financial relations.
Rice. 1.2 Spheres and links of the financial system
The presence of these areas in the financial system is objectively determined, since in any society there are business entities that provide the market with goods and services, and any state needs financial resources to carry out its functions.
Each sphere of the financial system, in turn, also has structural elements and is divided into links. Finances of business entities act as the initial sphere of the financial system, it is in this sphere that the formation of primary financial resources takes place and the processes of distribution and redistribution of value begin. The finances of business entities, with all their diversity, ensure the process of producing goods and providing services, constantly replenishing and increasing production assets and funds for non-production purposes. Further grouping of financial relations within the sphere of finance of economic entities is carried out depending on the nature of the activity of the entity, which influences the sources of formation of financial resources, the procedure for using funds.
Some organizations as the main goal of their activities pursue profit, they are commercial. In addition to commercial organizations, for the normal functioning of society, organizations are needed to meet the needs of the population in educational, cultural, scientific, charitable and other socially necessary benefits. Such organizations, as a rule, do not pursue profit as the main goal of their activities and do not distribute the profits among the participants; they need financial resources to carry out their statutory activities, and accordingly, this also affects the composition of financial relations in which such organizations are participants.
In addition to legal entities, citizens engaged in entrepreneurial activities without forming a legal entity can also act as participants in commodity production.
So inside spheres of finance of business entities allocate groups of financial relations in accordance with the nature of the activities of the subjects. The sphere of finance of business entities is divided into the following links: finance of commercial organizations, finance of non-profit organizations, finance of individual entrepreneurs.
Business entities are formed and operate in certain organizational and legal forms, enshrined in legislation 1 . The specifics of the organizational and legal form will also leave an imprint on the procedure for the formation and use of financial resources of business entities, the formation of certain financial funds. So, in the link of finance of commercial organizations, the organizational and legal form affects the procedure for the formation authorized capital, on the distribution of profits between participants, on the degree of financial responsibility to other entities, in some commercial organizations, legal acts provide for the creation of special financial funds (for example, the creation of a reserve fund by joint-stock companies).
The organizational and legal forms of non-profit organizations also affect the organization of finances, for example, the procedure for the formation and use of financial resources, the presence of membership fees, budget funds, the right to use borrowed money etc.
In accordance with the organizational and legal form, the following are distinguished as part of the finances of commercial organizations: finances of joint-stock companies (open and closed), finances of business partnerships, finances of limited liability companies, finances of production cooperatives, finances of state and municipal unitary enterprises. A special place among them is occupied by finances of state and municipal unitary enterprises. The financial resources of unitary enterprises are in state and municipal ownership, and a unitary enterprise disposes of them only on the basis of the right of economic management or operational management. Despite the fact that the finances of unitary enterprises are in state or municipal ownership, nevertheless, they are not included in the sphere of state and municipal finance, since the financial relations of these organizations are similar to the financial relations of other commercial organizations. In addition, when such organizations are created, a certain property segregation of the financial resources transferred to them occurs; it involves not only the organizational allocation of appropriate funds, but also the recognition of the ownership of the transferred funds to a specific organization with the endowment of the latter with a set of rights and obligations for their management.
As part of finance non-profit organizations in accordance with the legal form, allocate finances of institutions, finances of consumer cooperatives, finances of public and religious organizations (associations), finances of foundations, etc.
A separate place in the link of finance of non-profit organizations is occupied by finance budget institutions , primarily because it is budgetary institutions that provide the population with the necessary social services in the field of education, healthcare, etc. The specifics of the functioning of the finances of budgetary institutions is due to the fact that one of the main sources of their financial resources are budgetary funds, this is what ensures the close relationship between the finances of budgetary institutions and the sphere of state and municipal finance; the mechanism of functioning of their financial resources is additionally regulated by the budget legislation 2 . Moreover, since it is budgetary institutions that provide the needs of the population for social services, in some textbooks, the features of organizing the finances of budgetary institutions, due to their specifics, are considered together with general issues of functioning. public finance and financing of social policy of the state 3 . Nevertheless, the finances of budgetary institutions are part of the finances of economic entities, since during their creation and functioning, by analogy with unitary enterprises, property and financial resources are segregated, as well as the budgetary institution is endowed with the right to dispose of this property (the right of operational management).
The link of finance of individual entrepreneurs appeared in the financial system of our country relatively recently, since only with the beginning of market transformations, citizens of the Russian Federation received the right to engage in entrepreneurial activities as individual entrepreneurs. Entrepreneurial activity is understood as an independent activity carried out at one's own risk, aimed at the systematic receipt of profit from the use of property, the sale of goods, the performance of work or the provision of services by persons registered in this capacity in the manner prescribed by law 4 .
Currently individual entrepreneurs can be lawyers, doctors, detectives, farmers, retailers, etc. Their financial relationship is specific, because in economic turnover entrepreneurs are involved in their personal income and savings, and vice versa, entrepreneurial income can be used not only to maintain and expand the business, but also for personal consumption.
In a huge set of financial relations characteristic of any country, there is a sphere determined by the functioning of public authorities and local self-government. The objective need in this area is related to the fact that state authorities and local self-government authorities need the financial resources necessary to carry out their activities, to perform the economic, social and other functions assigned to them. Therefore, the second area of the financial system is state and municipal finance, through which financial resources are formed from these bodies. The Constitution of the Russian Federation, as well as Federal Laws of August 28, 1995 No. 154-FZ “On general principles organizations of local self-government in the Russian Federation” and dated September 25, 1997 No. 126-FZ “On financial fundamentals local self-government in the Russian Federation” 5 proclaimed the principle of independence of local self-government. In 1998, the Federal Assembly of the Russian Federation ratified the Charter of Local Self-Government adopted by the Council of Europe, which entered into force on the territory of the Russian Federation on September 1, 1998 6 . Local self-government is one of the manifestations of democracy, which involves independent activities (directly or through local governments) to address issues of local importance based on the interests of the population, historical and other local traditions. As an expression of democracy, local self-government is one of the foundations of the constitutional system of the Russian Federation. As a result of these changes, the sphere of financial relations under consideration began to be called "state and municipal finance", which emphasizes the independence of the latter 7 .
Financial relations within this sphere have the ability to influence other spheres and links of the financial system, influence the volume and structure of social production, and regulate sectoral and territorial proportions. Within this sphere, selection structural elements depends on forms of organization state and municipal financial resources in the country.
Any bodies of state power and local self-government cannot exist without the formation and use of appropriate budgets in which financial resources are accumulated to finance the functions assigned to these bodies. At the same time, budgets always have a multi-purpose purpose. In addition, in some countries, other financial funds are available to the authorities, usually narrowly targeted, used as additional source funding for certain expenses. Such funds are formed outside the budgets and are called off-budget funds, they are created, as a rule, to finance certain expenses - social protection of citizens, priority economic and environmental measures. Thus, as part of the sphere of state and municipal finance, the following links are distinguished: budgets of public authorities and local self-government, off-budget funds.
As part of the sphere state and municipal finance in relation to Russia, the following organizational forms of budgets can be distinguished, which correspond to the level of power or local self-government: federal budget, budgets of subjects of the Russian Federation (regional budgets) and local budgets.
Federal budget is the main tool for the redistribution of gross domestic product established on a national scale. At the federal level, the main directions are being formed budget policy in the country, the basic principles of building interbudgetary relations are determined.
Differences in the status of different subjects of the Russian Federation (republics within the Russian Federation, territories, regions, etc.), determined by the Constitution of the Russian Federation, determine different types of budgets of subjects of the Russian Federation. These include the republican budgets of the republics within Russia, regional budgets, regional budgets, the regional budget of the autonomous region, district budgets autonomous regions and city budgets of federal cities - Moscow and St. Petersburg. At present, as a result of the unification of a number of subjects of the Russian Federation total amount budgets of the subjects of the Federation is 83.
The third level of the budget system of the Russian Federation is local budgets. In connection with the entry into force of the Federal Law of October 6, 2003 No. 131-F3 "On the General Principles of the Organization of Local Self-Government in the Russian Federation", which provides for a two-tier structure municipalities, the structure of the budgetary system of the Russian Federation has also changed. Currently, in the Russian Federation, in accordance with Art. 10 of the Budget Code of the Russian Federation there are two links local budgets: the first link - the budgets of municipal districts, the budgets of urban districts, the budgets of intra-city municipalities of the federal cities of Moscow and St. Petersburg; the second link is the budgets of urban and rural settlements.
In the financial system of the former Soviet Union, which included Russia (the former RSFSR), there was no off-budget funds as an independent element of public finance. State budget social insurance, which was formed since 1938, was part of state budget THE USSR. The transition to market relations has led to the emergence of a new link in the financial system - off-budget funds. In the 1990s in the context of increasing social risks, as well as in accordance with the requirements of international law, state social insurance funds were allocated from the budget system. Thus, the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the compulsory health insurance And State fund employment of the population of the Russian Federation (which was abolished in 2001).
In addition, in the 1990s many off-budget funds for economic purposes were created at all levels of government, road funds, environmental funds, housing finance funds, etc. appeared. So, at present, only the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal and Territorial Compulsory Medical Insurance Funds are functioning in Russia, the funds of which are used as an additional source of financing for the social security of the population.
Pension Fund of the Russian Federation- a cash fund formed outside the federal budget is the main material basis for pension provision. This is the largest of all state non-budgetary funds, whose important place in the financial system of the Russian Federation is explained by its social significance (there are about 35 million pensioners in Russia) and the large amount of financial resources mobilized in it.
Social Insurance Fund of the Russian Federation is the second among extra-budgetary funds in terms of the volume of redistributed financial resources; is intended for the implementation of state guarantees for the social security of citizens in case of temporary disability due to illness, disability, birth and upbringing of children, etc.
Compulsory health insurance funds provide citizens of the Russian Federation with the opportunity to receive certain types of medical care free of charge.
In particular, the guaranteed volume of free medical services includes: outpatient care; ambulance health care; treatment of acute diseases; pregnancy and childbirth services, etc.
One of the main legal acts regulating the functioning of state non-budgetary funds in the Russian Federation is the Budget Code of the Russian Federation. It sets general issues functioning of state off-budget funds, the procedure cash service, control over their funds and other issues. To determine the quantitative parameters of funds, their income and expenses, the Budget Code of the Russian Federation uses the term "budget of the state non-budgetary fund".
In the budgets of the relevant off-budget funds ( pension fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the federal and territorial compulsory medical insurance funds) approve the total amount of income, their composition and structure, and areas of spending. The budgets of state off-budget funds are considered and approved in the form of federal laws simultaneously with the adoption of the law on federal budget for the next financial year and planning period.
The grouping of financial relations by spheres and links of the financial system does not remain unchanged, undergoing changes under the influence of revolutionary changes, the emergence of new types of property. As the economy develops, the forms of financial ties within the country and in the international arena change, and management methods improve in society, new types of financial relationships may also appear. Despite the fact that the financial system is a set of objectively existing financial relations, nevertheless, the composition of its spheres is influenced by the degree of development of these relations in society and the development of scientific views on the essence of finance. Thus, insurance was singled out as one of the spheres within the financial system of the USSR 8 . This was due to the fact that at that time insurance was considered as part of finance as an economic category. With development market relations developed in the country and
insurance relations themselves, the need for insurance as a method of insurance protection of property and income of individuals and legal entities increased, new types of insurance appeared, and the insurance business was demonopolized. Therefore, we support the point of view that insurance is considered as an independent economic category, despite the close connection between financial and insurance relations, and is not included in the financial system of the Russian Federation 9 .
The spheres and links of the financial system discussed above are closely interconnected. The finances of business entities interact with state and municipal finances - when paying taxes and insurance payments to the budgets and budgets of extra-budgetary funds, when certain organizations receive budgetary funds to finance their activities, etc. Within the sphere of finance of business entities, there are relationships between organizations in the implementation financial transactions which include, for example, payment of fines, other sanctions, making share contributions, investing funds, participating in the distribution of profits, receiving dividends, etc.
State and municipal finances as a sphere of the financial system are also characterized by close interaction of structural links among themselves and with the sphere of finance of business entities. So, within the sphere of state and municipal finance there are various interbudgetary relations between the levels of the budget system and types of budgets. In addition, budgets interact with extra-budgetary funds when transferring funds from the budget to the budgets of extra-budgetary funds for certain targeted expenses, when using the balances of extra-budgetary funds for the purchase of government securities, etc. There is a close link between the budgets of state authorities and local governments with finance budgetary institutions, since the financial resources of the latter are formed mainly at the expense of the budgets of the budgetary system of the Russian Federation.
Extra-budgetary funds, as part of the sphere of state and municipal finances of the country, have relationships with the finances of business entities - when organizations and individual entrepreneurs pay insurance premiums, taxes and other payments and when business entities receive amounts for certain types of expenses; with the budget - when receiving allocations for certain targeted expenses, as well as when using funds from funds if there is a surplus to cover budget deficit; with other off-budget funds - when transferring some funds from one fund to another.
The specifics of each area and link of the financial system determines not only the features in the composition and structure of financial resources, the availability and organizational structure of financial funds, but also affects the processes of financial planning and control in different areas and links of the financial system.
It should be noted that under the term "financial system" in economic literature understands not only the totality of organized and interconnected financial relations in society, but also the totality financial institutions in country 10 , i.e. There are two meanings of the term "financial system". In this chapter, the financial system is considered only as a set of financial relations. Financial controls will be discussed in Chapter 3.
1 Organizational and legal forms of functioning of business entities are defined Civil Code Russian Federation (GK RF).
2 Budget Code of the Russian Federation (BC RF), Art. 6, 69.1, 70, 161, 221.
3 See: Finance / Ed. M. V. Romanovsky, O. V. Vrublevskaya, B. M. Sabanti. - M.: Prospect, 2000. - S. 364
4 In accordance with the Constitution of the Russian Federation (Article 12), local self-government bodies are not included in the system of state authorities.
5 These federal laws are no longer in effect.
6 the federal law dated 11.04.1998 No. 55-FZ "On the ratification of the European Charter of Local Self-Government".
7 Before these transformations in society, this area of the financial system was called “public finances” (see: Finance / Edited by V.M. Rodionova. - P. 218.
8 See: Finance / Ed. V.M. Rodionova. - S. 20, 167.
9 See: Insurance / Ed. V.V. Shakhov. - M.: UNITI, 1997. -S. 17, 18.
10 See: Financial and Credit Encyclopedic Dictionary / Under the general. ed. A.G. Gryaznova. - M .: Finance and statistics, 2002. - S. 1021-1023; Finance / Ed. M.V. Romanovsky, O.V. Vrublevskaya, B.M. Sabanti. -FROM. 36.
(Materials are given on the basis of: A.G. Gryaznova. E.V. Markina Finance. Textbook. 2nd ed. - M.: Finance and Statistics, 2012)
Financial support of the reproduction process is the covering of reproduction costs at the expense of financial resources, accumulated by business entities and the state. Financial resources are funds that are formed at the disposal of the state, subjects of the federation, the municipality, economic entities and the population, formed in the process of distribution and redistribution of part of the value of GNP.
The formation of financial resources, their rational use have great value, since financial resources are the most important monetary source of expansion of production. A decrease in the volume of financial resources may limit the possibility of a targeted impact of finance on the development of the economy, the solution of urgent economic and social problems. It leads to a reduction in the scale of investment in the production and social spheres, a decrease in the consumption fund as part of the national income used. The lack of financial resources leads to an imbalance in the natural-material and cost structure of social production, various kinds of disproportions and "uncouplings".
The volume and structure of financial resources are directly related to the level of development of production, its efficiency. The larger the scale of production and the higher its efficiency, the greater, other things being equal, the size of the mobilized and used financial resources. - In turn, the amount of financial resources invested in production creates prerequisites for its growth and improvement. Depending on where and in what volumes financial resources are directed, opportunities are formed to provide production with additional capacities. And this leads to an increase in the technical level of production, the creation of prerequisites for the growth of labor productivity in the relevant sectors of the economy.
All elements of the value of the gross social product are involved in the formation of financial resources, but the main source is the national income, and mainly that part of it which is represented by net income. It is the growth of net income and its main financial form - profit that determines the high or low growth rates of financial resources. In addition to the value of the gross domestic product, an important source of financial resources can be income from foreign economic activity, provided that it is sufficiently efficiently organized. Financial resources are also formed from a part of the national wealth involved in economic circulation (carryover balances of budget funds used to cover the expenses of the current year; reserve funds of insurance organizations; funds from the sale of the country's gold reserves; proceeds from the sale of surplus property, etc.). For the formation of financial resources, borrowed and attracted funds (bank loans, accounts payable, funds received from the issue of shares and bonds, etc.) can be used.
The variety of financial relations that arise in the process of value distribution determines the presence of different types of financial resources. The main ones are: profit, various types of taxes and fees, insurance payments, depreciation. The possibility of their growth is determined not only by the overall size of the gross domestic product, but also by its structure, the dynamics of its constituent elements.
Financial resources are necessary, first of all, for business entities. They form decentralized financial resources used on the costs of expanding production (provision of services) and meeting the socio-cultural needs of workers. Target funds formed at the expense of decentralized financial resources are directed to the maintenance and acquisition of fixed and working capital, wages, payment of taxes and fees, depreciation deductions, financing of scientific and technological achievements, environmental protection measures, meeting social needs, charitable needs; repayment of debts and payment of interest on them, formation of reserves, etc. The implementation of these costs through the use of financial resources makes it possible to provide monetary resources for the reproduction process at the micro level.
The needs of social production at the macro level are met by centralized financial resources. The forms of their use are budgetary and non-budgetary funds, the funds of which are directed to the development of the economy, financing of social and cultural events, meeting the needs of defense and management.
In recent years, the state of the country's financial resources has been characterized not only by a high degree of their centralization, but also by an acute shortage both at the macro and micro levels. In this regard, the problem of finding real reserves for the growth of financial resources has become extremely acute. The systematically increasing needs of enterprises (organizations) and the state demanded their ever greater size, meanwhile, their mobilization became more and more problematic due to the growing crisis in the economy, low production efficiency, worsening financial results of foreign economic activity and other reasons.
To ensure uninterrupted financing of reproduction costs, it is of great importance financial reserves. Financial reserves are capable of ensuring a continuous circulation of funds in social reproduction even in the event of huge losses or the occurrence of unforeseen events. Financial reserves can be created by the business entities themselves at the expense of their own financial resources (self-insurance), their management structures (based on standard deductions), specialized insurance organizations (insurance method) and the state ( reserve funds in the budgets of different levels). The formation of large financial reserves in the hands of business entities is ineffective from an economic point of view. More appropriate is the formation of reserves by the budgetary method and the insurance method, since a higher turnover of reserved funds is achieved here.