The system of finance concept and general characteristics. The budget process in the Russian Federation
Financial relations in the country, having various forms of manifestation, together form an integral financial system, each link of which is the bearer of certain characteristics inherent in it. financial relations , which are realized in the creation and use of the corresponding monetary funds. All links of the financial system together reflect the state structure of the country, characterizing the degree of development of its monetary, credit, currency and other relations.
In this way, financial system it is a set of interrelated links, each of which, on the one hand, is the bearer of financial relations inherent in it, on the other hand, is in a certain connection with other links of the system. Therefore, the financial system has a certain clear structure, thanks to which, by considering each of the links, one can get a comprehensive picture of the financial system as a whole.
Financial system is defined as a combination, on the one hand, of certain areas of financial relations, on the other hand, various institutions that ensure the functioning, interaction of these areas and the process of managing them. In a generalized form, the country's financial system (according to the main subjects of financial relations of the state, enterprises and the population) is a combination of three areas of financial relations: public finance, Finance of enterprises and households.
As dynamic as the Japanese bobber, changes in socio-economic life complicate financial processes, which, in turn, affects the composition of the financial system (new financial institutions appear) and the content of its individual links.
In the financial system, individual subsystems differ in the following ways:
· Presence of own base formed on the basis of primary incomes of subjects of economic relations;
· Functionality each subsystem that provides (For business entities, this is the production and sale of goods and the provision of services for the purpose of making a profit and increasing capital; for workers, meeting the material and spiritual needs of an individual, family, for the state, meeting social needs, social support and protection of the economically inactive population and unemployed);
· The unity and interaction of subsystems, determined by the common source of primary income (GDP) and financial policy, aimed at harmonizing the interests of the subjects of economic relations, as well as the mutual consistency of their financial plans and balance sheets.
In Ukraine, the financial system is currently being reformed in the direction of strengthening the social significance of social insurance funds. In particular, the fundamentals of Ukrainian legislation on compulsory state social insurance, adopted by the Verkhovna Rada of Ukraine in January 1998, provides for the introduction of five types of such insurance: pension; medical; due to temporary disability; in case of unemployment, from accidents at work.
The formation and use of the funds of compulsory state social insurance are carried out on the principles of solidarity. To this end, a system of target centralized funds has been created as non-profit self-governing organizations, which are managed on a parity basis by the state, representatives of insured persons and employers.
Compulsory state social insurance already has a solid financial base of its own, which is comparable in volume to the revenues of the Ukrainian budget system. For example, in 2000 the budget of the Pension Fund was almost 42% state budget, or 9% of GDP.
There are also other signs by which the sphere of insurance finance is distinguished:
targeted financing of expenses related to the specific nature of various types of insurance;
unity and interaction with other subsystems, which is determined by the formation of insurance funds in the process of redistribution of incomes of the state, enterprises, and the population.
Therefore, the modern financial system of Ukraine can be represented as a set of public finances, finances of enterprises (institutions, organizations), household finances and insurance finances, thanks to these links, the main part of the centralized and decentralized monetary funds of the country is formed, distributed and redistributed.
Finance is an economic instrument that regulates the production and distribution of goods through the resource market and the product market. This is an integral element of social reproduction at all levels of management; they are equally necessary for the lower level - enterprises (organizations), and inter-farm associations (associations, concerns), and state system management of the national economy.
Finance is a rather complex social phenomenon. They cover a wide range of exchange and distribution relations, which are displayed in various cash flows. With a single essence of these relations, separate elements are distinguished in them, which have their own characteristics and features.
The allocation of forms of financial relations characterizes the relative separation of the individual components of finance. The totality of these components is defined by the term "financial system".
The construction of the financial system is based on the following features:
The functional purpose of a particular group of financial relations;
The presence of certain specifics in financial relations;
Unity and interaction of subsystems;
Availability of a special service device;
Availability of own financial base.
Thus, the financial activity of the state is the activity of education, redistribution and use of centralized and decentralized funds. Money that ensure the smooth functioning of the state at each given stage of social development.
The financial system is a collection of various types of funds financial resources concentrated at the disposal of the state, the non-financial sector of the economy (economic entities), individual financial institutions and the population (households) to perform their functions, as well as to meet economic and social needs.
The financial systems of some states may differ in their structure, but they all have a common feature - these are various funds of financial resources.
Characteristics of the main links in the functioning of the financial system
The financial system is a combination of various spheres of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in the life of society.
Consider the structures of the financial system Russian Federation.
According to the stock basis, centralized and decentralized finance are distinguished.
Centralized (public) finances include:
State budgets;
State social off-budget funds;
State loan;
State insurance.
Decentralized finance includes:
Finances of commercial enterprises and organizations;
Finance of non-profit organizations;
Household finances.
In the field 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; participants stock market;
state finances: federal level; regional level; local (municipal) level;
insurance funds: public, private;
household finances.
State finances can be structurally represented as follows (Figure 1.2.1):
Rice. 1.2.1.
State and municipal finance are part of the financial system of the Russian Federation, cover part of the monetary relations, in the process of which the formation, distribution and use of state and municipal funds of funds necessary for the performance of public functions and tasks takes place.
State and municipal finances play an important role in solving social and economic problems. Performing a distributive function, state and municipal finances redistribute financial resources between different regions and municipalities, various sectors of the economy, productive and non-productive areas, various social groups of the population.
The structure of the financial system of the Russian Federation in terms of management is shown in Figure 1.2.2 and includes:
the main elements of the system (finances of the state, finances of commercial enterprises, organizations, household finances);
auxiliary elements of the system (finances of banking and credit organizations, insurance groups, finances of participants in the securities market).
Rice. 1.2.2.
The institutional structure of the financial system of the Russian Federation consists of different levels.
At the federal level, the institutional structure includes:
Committees of the State Duma and the Federation Council;
The Ministry of Finance of the Russian Federation and its members: the Federal Tax Service; Federal Service of Insurance Supervision; Federal Service for Financial and Budgetary Supervision, Financial Service for financial monitoring, Federal Treasury (service);
Central Bank of the Russian Federation;
Accounts Chamber of the Russian Federation;
the Federal Customs Service;
Federal Service for Finance and Markets;
Executive directorates (boards) of federal off-budget funds.
At the municipal level:
Commissions on budget and finance in the representative body local government;
Management (departments, divisions) of finance;
Apparatus of the Control Department of the Ministry of Finance of Russia;
City (district) bodies (departments) of the Federal Treasury or municipal treasury;
City (district) departments of the Main Department of the Bank of Russia of a constituent entity of the Russian Federation;
City (district) tax services;
the Counting Commission of the representative body of local self-government;
City (district) customs.
At the level of business entities, financial management is carried out financial service(department), directorate for finance, department of finance.
A special place in the system of public finances is occupied by the state budget - the financial plan of the state that has the force of law for the current fiscal year. The state budget is the main financial plan of the country, approved by the Federal Assembly of the Russian Federation as a law.
The budget is a complex financial phenomenon, representing, on the one hand, economic category, and on the other - the real subjective financial instrument(lever) of the influence of a certain subject on certain spheres of the life of society.
The purpose of the state budget is to provide financial support for the functions of the state. The form of functioning of budgets is regularity, that is, the preliminary preparation of plans for the formation and use of the budget and their coordination.
Budget revenues are made up of a combination of various payments of economic entities and a number of specific revenues.
Budget expenditures are the investments of funds in various activities to finance public needs.
Credit is a system of monetary relations, through which the mobilization of temporarily free funds of the budget, the national economy and the population and their use on a repayment basis.
Funds of property and personal insurance provides compensation for possible losses from natural disasters and accidents, and also contributes to their prevention.
Among the links of the financial and credit system, the stock market occupies a special place. It can be singled out as a separate link, since the stock market is special kind financial relations arising from the sale and purchase of specific financial assets -- securities.
The task of the stock market is to ensure the flow of capital into industries with a high level of income. The stock market, like the credit link, serves to mobilize and effectively use temporarily free funds.
The financial system of Russia as an aggregate government agencies and institutions - this is an extensive network financial authorities And credit institutions carrying out direct financial activities of the state. The system of financial authorities is headed by the Ministry of Finance of the Russian Federation (Minfin of Russia), which is the executive authority that ensures the conduct of a unified public policy and exercising general management of the organization of finance in the country.
In general, the financial system is shown in Figure 1.2.3.
Rice. 1.2.3. Diagram of the financial system.
Analysis of the regulatory and legislative framework.
The supreme authorities and management carry out the general management of the financial system. The highest authorities are:
1. President of the Russian Federation (Administration of the President of the Russian Federation) - signs budget plan, determines the goals of financial policy, has the right to veto financial legislation adopted by the Federal Assembly of the Russian Federation.
2. Parliament of the Russian Federation (Federal Assembly of the Russian Federation, consisting of two chambers: the Federation Council and the State Duma) - approves federal budget, establishes taxes, fees, non-tax payments, adopts financial legislation (the Budget Code of the Russian Federation, tax code RF).
3. Coordinating center for financial management, where the government of the Russian Federation develops the federal budget.
4. The Ministry of Finance of Russia is the central body implementing the financial policy. Coordinates the activities of other federal executive bodies, ensures the unity of monetary, financial and foreign exchange policy in the Russian Federation,
The Ministry of Finance of Russia reflects the following functions:
carrying out activities to implement the financial policy;
organizing the development of the federal budget plan;
making proposals on the formation of financial policy;
implementation of methodological guidance in the field of financial planning and financing of sectors of the economy;
development of draft laws regulating and regulating financial relations;
participation together with the Ministry of Finance economic development and Trade (Ministry of Economic Development of Russia) in developing a balance of the country's financial resources.
5. Federal tax office and the Federal Customs Service exercise control over the correctness of the calculation, completeness and timeliness of contributions to the budget funds of taxes, customs revenues, fees and other payments. federal agency for the management of federal property organizes the management state property for the purpose of generating non-tax income. federal Service on financial markets controls the activities of stock market participants, thereby contributing to an increase in revenues to the budget fund.
6. System of the Bank of Russia - an important body for the implementation of monetary and financial policy. The Bank of Russia, along with the Federal Treasury, carries out cash execution of the budget and controls the activities of other credit institutions.
7. Accounts Chamber of the Russian Federation - allows you to control the implementation of financial legislation and the movement of federal funds. It is independent of the Government of the Russian Federation and is accountable to the Federal Assembly of the Russian Federation.
Existence financial control objectively due to the presence of a control function inherent in finance. Financial control covers with its impact public relations arising in the field financial activities, that is, in the process of creating, distributing and using certain funds of funds.
Thus, financial control is the activity of state, municipal, public bodies and organizations, other economic entities regulated by the law to check the timeliness and accuracy of financial planning, the validity and completeness of income receipts in the relevant funds of funds, the correctness and efficiency of their use.
Depending on the bodies exercising financial control, it is divided into types: state (national and departmental); and non-state (on-farm, public and independent).
State control is exercised federal authorities legislative authorities, federal executive authorities, including specially created executive authorities, as well as representative authorities and executive authorities of the constituent entities of the Russian Federation.
Of great importance for the development of state financial control is the Decree of the President of the Russian Federation dated July 25, 1996 No. 1095 "On measures to ensure state financial control in the Russian Federation".
Non-state financial control is carried out without the direct participation of the state, but in accordance with state laws and regulations. Non-state types of financial control include on-farm, public and independent (audit) control. The main task of non-state control is to increase the efficiency of the use of financial resources of economic entities, to ensure the reliability of financial statements.
Therefore, the budget process is the most important component budgetary system of the country. IN Budget Code In the Russian Federation, it is understood as “the activities of state authorities, local governments and participants in the budget process regulated by the law in drawing up and reviewing draft budgets, draft budgets of state non-budgetary funds, approving and executing budgets and budgets of state non-budgetary funds, as well as monitoring their implementation » .
Thus, in this chapter, the basic concepts of finance and the financial system were studied, its main links were characterized, and the regulatory and legislative framework was considered. In the next chapter, we will try to analyze the financial system of the Russian Federation.
1. General characteristics of the financial system
The concept of "financial system" is the development of a more general concept- "finance".
Finances determine economic social relations, which manifest themselves in different ways. Finance has its own peculiarity in each link of the financial system. The link of the financial system is a certain area of financial relations, and the financial system as a whole is a combination of various areas of financial relations. At the same time, cash funds are formed and used.
The financial system is a system of forms and methods of formation, distribution and use of state and enterprise funds.
The leading element of the financial system is the state budget. In terms of its material content, it is the main centralized fund of state funds, the main instrument for the redistribution of national income. Up to 40% of the country's national income is redistributed through this link in the financial system.
The main revenues of the state budget are taxes, ranging from 70 to 90% or more total amount his income ( income tax from individuals, income tax, excises, value added tax, customs duties).
The main expenses are also made from the state budget: for military purposes, economic development, maintenance of the state apparatus, social expenses, subsidies and loans.
The second link in the financial system is local (regional) finance, including local budgets, the finances of enterprises owned by municipalities, and autonomous local funds.
Secondary taxes (mainly property taxes) are assigned to local budgets. In local budgets, compared to the state budget, a higher share of funds is directed to social purposes. Local budgets are chronically deficient and receive the funds they need through subsidies and loans from the state budget and the issuance of local government-guaranteed loans.
The third link in the financial system is off-budget special funds. The funds of these funds are directed to the payment of pensions for old age, for disability, for the loss of a breadwinner; benefits for temporary disability, for pregnancy and childbirth, for unemployment; for the construction and repair of roads, etc. Extra-budgetary funds are Pension Fund, Foundation health insurance, Employment Fund, Social Insurance Fund, Road Fund, financial regulation funds in various industries, Military Production Conversion Assistance Fund, etc.
The government loan is credit relations between the state and legal and individuals in which the state acts as a borrower of funds. Increase in domestic debt for last years associated with the issuance of banknotes to cover budget deficit and is a powerful inflationary factor.
In the insurance sector, the links are: social insurance, property and personal insurance, liability insurance, business risk insurance.
The finances of enterprises of various forms of ownership form the basis of finance and are divided into three main parts: the finances of commercial enterprises, the finances of non-profit enterprises, and the finances of public associations. This is where the bulk of the financial resources are formed. The main source of production and social development becomes profit, which enterprises dispose of at their discretion.
2. Financial support
Financial support of the reproduction process is the covering of reproduction costs at the expense of financial resources.
Financial resources are the most important monetary source for the expansion of production.
A decrease in their volume limits the possibility of a targeted impact of finance on the development of the economy, entails a reduction in the scale of investment in production and social sphere, a decrease in the consumption fund as part of the national income used, an imbalance in the natural-material and cost structure of social production, various kinds of disproportions.
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 that is net income.
Income from foreign economic activity, as well as part of the national wealth involved in economic turnover(carryover balances of budget funds used to cover the expenses of the current year, reserve funds insurance organizations, funds from the sale of part of the country's gold reserves, proceeds from the sale of excess property, etc.).
Borrowed and borrowed funds are also used to form financial resources.
At the micro level, non-centralized financial resources are formed that are used for the costs of expanding production and meeting the socio-cultural needs of workers.
They are heading for capital investments, increase in working capital, financing of scientific and technological achievements, carrying out environmental protection measures, meeting the needs of a social nature.
The needs of social production at the macro level are provided by centralized financial resources. The forms of their use are budgetary and extrabudgetary funds, the funds of which are directed to the development of the national economy, the financing of social and cultural events, and the provision of defense and administration needs.
The main ways to solve the problem of finding financial resources are connected, firstly, with the implementation adopted program stabilization of the economy and transition to a market economy, and secondly, with the implementation of specially developed measures for financial
improving the economy and restructuring the system of financial relations in the country.
Financial provision of reproduction costs can be 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. With a lack own funds the enterprise can reduce its costs or take advantage of borrowed funds raised on the basis of securities transactions.
Lending is a method of financial support for reproduction costs, in which the expenses of a business entity are covered by a bank loan provided on the basis of urgency, payment and repayment.
State financing is made on a non-refundable basis at the expense of budgetary and non-budgetary funds formed at different levels government controlled in the process of distribution and redistribution of part of the national income.
In practice, it is necessary to achieve an optimal balance between all three forms of financial security, and this is possible only on the basis of an active financial policy of the state.
In the conditions of transition to the market, the role of financial reserves increases. They are indispensable in the event of huge losses or unforeseen circumstances.
They can be created by business entities themselves at the expense of their own financial resources, their management structures, specialized insurance organizations and the state.
3. Financial mechanism
The coordinated functioning of different parts of the economy is achieved through its regulation, i.e., changes in the growth rates of individual structural divisions to restructure production in accordance with the changing needs of society.
Under market conditions, the regulation of the economy is achieved through the redistribution of financial resources.
The regulation of the economy occurs primarily through self-regulation, which is ensured by the functioning of the market, including the financial one. Thanks to him, the possibility of free and rapid redistribution of financial resources between different departments of the national economy is created.
Along with self-regulation, state intervention in the economy has a great influence on the structure of social production, its necessity is due to the solution of tasks related to meeting the needs of the whole society - ensuring major structural priority areas economic development, expansion and improvement of social and industrial infrastructure facilities, etc.
The state intervenes in the economy through the use of cost leverage by the legislative and executive authorities to influence the processes of social development.
Via public investment, tax policy, the activities of various state structures develops a specific mechanism of influence on the economy.
The regulating possibilities of the finances of enterprises are mainly used for intra- and inter-farm redistribution of financial resources, while the regulating possibilities of the state budget are used to regulate sectoral and territorial proportions.
In the regulation of reproduction proportions, the importance of insurance is gradually growing, designed to guarantee the stability of production.
In the future, insurance should compensate for losses from failed scientific and technical developments and lost profits from downtime due to strikes, political unrest, etc.
In the regulation of territorial proportions, mainly state and local finances, as well as partly the finances of enterprises, take part. It should be noted that self-regulation occurs when subsidies and subventions are provided to lower budgets, the formation and use of territorial regulatory funds, and various forms of state credit.
In order to bring the economy out of the crisis, to provide reliable and sustainable sources of growth, it is necessary to use financial incentives that can be used to influence the material interests of business entities.
Financial incentives are one of the methods for regulating national economic proportions. Financial incentives include:
1) effective directions for investing financial
resources:
a) financing of technical re-equipment;
b) financing the costs associated with reproduction
labor force, vocational training,
improving their qualifications, reorienting work
for new types of industries;
c) consistent implementation of programs aimed at
to ensure shifts in the sectoral and territorial
structures of social production, improvement
economic proportions in accordance with modern
ny needs;
2) incentive funds (material and social development);
3) budgetary methods of production intensification;
4) special financial benefits and sanctions.
The financial sanctions are ineffective today. They are disproportionate to the amount of lost profits, especially sanctions for non-fulfillment of contracts for the supply of products.
In order for financial sanctions to become real and effective, a significant increase in liability for failure to fulfill mutual obligations is necessary.
An indispensable clause of any contract should be fixing the need to determine the amount of lost profits in case of violations of the rules for the supply of products.
For the implementation of financial policy, its successful implementation is used financial mechanism.
It is a set of methods of organizing financial relations used to create favorable conditions for economic and social development.
The financial mechanism consists of types, forms and methods of organizing financial relations, methods of their quantitative determination.
The financial mechanism is divided into the financial mechanism of enterprises and economic organizations, an insurance mechanism, as well as a mechanism for the functioning of public finances.
This classification takes into account the characteristics of individual units of the public economy and the allocation of areas and links of financial relations.