Public sector finance structure and functions of the article. The state budget as the main link in the financial system
Efficient use of public funds involves comparing the costs and benefits of both public funding programs and industrial projects
The rationality of public spending is determined by their economy, the productivity of the resources used and the effectiveness of costs.
Economy b characterizes the cost (resource) side of efficiency. Economical are those solutions in which the resources required composition, quantities and qualities are acquired and used at the lowest possible cost
Performance is the ratio of the quantity of products or services and the amount of costs for their production.
Efficiency characterizes the correspondence of public expenditures and the results achieved with their help to the specific goals that the public sector is called upon to serve in one case or another.
It is obvious that economy, productivity and effectiveness are closely interrelated and can be isolated from each other only with a certain degree of conventionality. In fact, they express only various aspects, aspects of the effectiveness of public spending. As a rule, more economical solutions provide the highest performance, which in turn leads to proper performance.
Topic 7. State revenues and economics of the public sector.
State revenues and modern principles of their formation.
Part government revenue includes income from fiscal monopolies, taxes and fees, income from the use of property (including income received from the public sector), income from the sale of state property and proceeds from loans. In each separate country the composition of state revenues is determined by the level of development of commodity-money relations, the mode of production, the nature and functions of the state. The bulk of government revenues in developed countries is concentrated in government budgets. Taxes are the main form of mobilization of state revenues. In the budget of the central government, they account for 70 to 90% of all revenues; in local budgets, the share of taxes reaches half. To the most important taxes of central governments ( federal taxes) include income tax, corporate tax, VAT, excises and customs duties. AT local budgets local taxes, revenues from the municipal economy, revenues from loans of local governments, subsidies from the central government. The main regional and local taxes include property and land taxes, and in some countries also excises. The revenues of state enterprises are made up of profits, loans, government subsidies and credits. Numerous special funds of the state are formed at the expense of special taxes and fees, voluntary contributions, subsidies from the budget and loans.
Until the early 1980s. there was a tendency to increase the share of state revenues in the total volume of the gross national product and national income. If on the eve of the First World War the state accumulated about 15% of the national income, then in the 1980s. - already 40-50%.
The economic basis of state regulation of the economy is the part of GDP redistributed through the state budget and off-budget funds, and state property. The effectiveness of the state economic policy ceteris paribus, the higher the higher government revenues, the greater the share of GDP redistributed by the state, the greater the role of the public sector in the economy. But government revenues and the public sector have relative limits to growth.
In the 1950s and 1960s, government revenues in the most developed countries with market economies showed a general tendency to grow at a higher rate than GDP indicators and incomes of legal entities and individuals. Currently, there is a reverse trend, since there are certain relative boundaries for the growth of government revenues:
The Limits of Sufficient Motivation entrepreneurial activity;
Social boundaries of taxation of employees and middle strata;
GDP growth limits.
In countries with developed market economies, government revenues make up a significant part of the gross domestic product (GDP) and have a strong influence on its redistribution and expanded reproduction. On average, they are equal in the OECD countries from 30% to 44% of GDP.
Government spending on the public sector.
Resource potential public sector, formed on the basis of state revenues, is realized through state (public) spending, which are carried out both in cash and in kind.
The tasks to be solved in the field of spending public funds can be generally divided into three groups: 1) this is the provision social assistance topics members of society who are unable to provide for themselves (for example, benefits paid to persons with disabilities); 2) provision compulsory insurance in case of illness, unemployment, etc.; 3) production and acquisition of goods (services), the responsibility for meeting the needs of which the state assumes.
Public spending can be in the form of financing the costs of maintaining public sector organizations, purchasing goods or services, subsidizing enterprises and organizations that supply products to the market, as well as cash payments and distributions in kind to persons covered by social assistance and insurance programs. The listed forms often act as interchangeable or, when combined, complement each other.
Budget spending can be grouped into four main categories: traditional government functions, modern government functions, interest payments, and other expenses. The traditional ones include general administration, the administration of justice, the maintenance of the police and the provision of defense. The costs of performing these functions are for the most part the costs of goods collectively consumed by society.
Modern state functions are associated with the provision of in-kind transfers, primarily in the field of education and health care, as well as cash transfers and subsidies. The costs of performing these functions are focused on individual households and manufacturing enterprises, which form the basis of the modern welfare state.
Interest payments are related to servicing the public debt.
In the modern world, the functions of public spending have changed dramatically. Only 20% of all state budget expenditures are allocated to finance the traditional functions of the state. At the same time, spending on modern features exceeds 60%. At the same time, the higher the level of development, the lower the share of expenditures on traditional functions. In developed countries, only 11% of state budget expenditures are spent for these purposes, and in developing countries - 24%. Developed countries direct more than 70% of budget expenditures to modern functions, developing countries - 56%. An intermediate position is occupied by countries with transition economy. There, traditional functions absorb 14%, and modern ones - 65% of public spending.
Topic 8. Municipal economy of the public sector.
The theory of urban economics.
Spatial factors play a huge role in real economic life due to sharp spatial heterogeneity. It is predominantly concentrated in the foci of socio-economic activity, which together represent an insignificantly small part of the planet's territory. Therefore, the concept of "city" for economic analysis no less significant than such fundamental concepts as "producer" and "consumer". These circumstances led to the emergence of a "spatial economy", which stood out in a special section economics back in the first half of the 20th century. Its further development led to the formation of " new economy City (NUE)" in the early 60s. From this point on, it is customary to consider the theory of urban economics as an independent scientific discipline, the most important concept of which is the concept of local public goods (LOB). O on allows to take into account in a more explicit form the preferences of economic agents regarding municipal services provided by the infrastructure of the city. Within the framework of the theory of urban economics, the city is an independent economic agent, endowed with its own property, performing certain socio-economic functions and having the necessary level of autonomy in decision-making.
When considering the functions of the city, its production, consumption,
investments, it is necessary to pay special attention to the specific services provided by the city. This is included as a service. technical nature: public passenger transport and the road network of the city, the system of its water, electricity, heat, gas supply, treatment systems, fire fighting service; so administrative, cultural and public municipal services: law enforcement, medical, educational institutions etc. All listed services are related to localized public goods. An essential feature of the LOB is the spatial limitation of the circle of potential users. For example, urban passenger transport. Among the most important features of the LOB, two economic characteristics dominate: 1) divisibility - a parameter associated simultaneously with the conditions of production and use of the good; 2) the ability to generate spatially limited external effects (overflow effects).
8.2. Municipal formation and municipal property.
A municipal formation is an urban or rural settlement, a municipal district, an urban district, or an intra-urban territory of a city of federal significance.
Currently, there are 24,372 municipalities in the Russian Federation. The municipality acquires the status of a body local government if it manages municipal property, approves and executes the local budget, has the right to establish local taxes and fees or establish municipal enterprises, and also has elected bodies of representative and executive power. These are legal signs. municipalities.
Municipal property is the property of the municipality. It includes: municipal lands and other natural resources; municipal enterprises and organizations; municipal banks and others financial institutions; municipal housing stock and non-residential premises; municipal institutions of education, healthcare, culture and sports, other movable and real estate. The composition of municipal property also includes funds from the local budget, municipal off-budget funds, property of local government organizations. The owner of municipal property is the municipality, i.e. the population living on the territory of the municipality.
The most important elements of the municipal sector of the economy are municipal unitary enterprises. As Art.113 says Civil Code RF, "A unitary enterprise is a commercial organization that is not endowed with the right of ownership of the property assigned to it by the owner." The property of a unitary enterprise is indivisible, is in municipal ownership and belongs to such an enterprise on the basis of the right of economic management or operational management.
The experience of the development of Russian unitary enterprises has demonstrated the extreme economic inefficiency of this organizational and legal form. Therefore, the need arose in the country for a sharp reduction in unitary enterprises and the redistribution of their functions among enterprises of other forms of ownership. At the same time, in the course of the reduction of unitary enterprises, the capacity of the municipal sector will not only not decrease, but may even increase significantly. Indeed, when state and municipal functions are transferred to private enterprises, the corresponding status of these functions is preserved.
The concept of public finance. Public (state and municipal) finances are an integral part of the general financial system countries. The sphere of finance is a set of operations with income, their distribution and redistribution in the process of social reproduction. As part of the process of production, distribution and redistribution of the gross domestic product, funds are formed and spent Money business entities. These funds, considered in the process of their formation and movement, form the finances of economic entities, providing them with the possibility of normal functioning. The domestic economy of countries, in accordance with the system of national accounts, is divided, as already mentioned, into five sectors: non-financial corporate and quasi-corporate enterprises; financial corporations; public administration; private non-profit organizations serving households (population); households. Each of these sectors includes corresponding business entities (institutional units).The country's finances are a set of finance sectors of the economy, taking into account their financial relations with other countries. The finances of each sector of the economy are subsystems of the country's overall financial system. The main criteria for selecting subsystems are the special role of each sector of the economy in the overall economic system countries and the presence of their own financial base, formed in the process of formation of primary incomes and their redistribution. The totality of the finances of the institutional units of each sector, in their interaction with each other and with other sectors, forms the finances of the sectors of the economy. One of these sectors is the state (public) administration sector. At the same time, government and municipal finance unite in general category public (state) finances.
The need for public finance is generated by the very fact of the existence of the state and the need for monetary support for the performance of its functions. In the most general view organ function government controlled is holding public policy and the fulfillment of government objectives through the provision of public goods (non-market goods and services) for consumption by the population and society as a whole, as well as through the redistribution of income (transfers) and wealth. Public goods can be provided for collective or individual consumption. Collective consumption includes, for example, public administration, defense, law enforcement and law enforcement; to the individual - education, social protection, etc.
The monetary funds operated by public finances are formed both at the expense of own funds and at the expense of credit resources. Own funds The general government sectors are formed mainly from taxes and contributions paid to budgets and extrabudgetary funds by enterprises, institutions and organizations belonging to all sectors and the population, as well as from income from property and the sale of market services. Sources of credit resources are direct loans from financial and credit organizations and raising funds by issuing and selling debt obligations - bonds, etc.
The system of finances of the public administration sector is formed by the totality of finances of institutional units of government, including also the finances of the municipal level of government. Public finance is the finance of the general government sector. Because of this, he participates in the general circulation of income, expenses, output and the formation of assets and liabilities of the country.
Finance of the public administration sector is traditionally understood as a tool for mobilizing funds from all sectors of the economy for public internal and foreign policy. They represent a single set of financial transactions, with the help of which government bodies accumulate funds and carry out cash expenditures.
The formation of state (public) finance resources and the spending of available funds in democratic states should be carried out on the basis of citizens' preferences regarding the mandatory payments collected and the public benefits received. Therefore, the formation of budgets and other public funds is determined and approved by the representative authorities elected by the population.
The main financial fund of the country, which ensures the formation, distribution and use of a centralized fund of funds as a prerequisite for the functioning of any state, is the state budget. Along with the budget, off-budget funds play a significant role. State non-budgetary funds, as a rule, have a designated purpose. In Russia, in particular, there are three social off-budget funds: Pension fund, Fund social insurance and mandatory health insurance.
The budget and off-budget funds are the instruments by which the redistribution of income and, accordingly, resources between sectors of the economy, types of activities, territories, business entities, certain social groups of the population, etc. is carried out.
AT federal states, to which Russia belongs, depending on the levels of government, the budgets of government bodies are divided into finances of the central government, finances of regional authorities and local (municipal) finances. State off-budget funds can also exist at various levels of government.
Carrying out a redistributive function through the budget, the state has a regulatory impact on the economy, promoting the development of certain types of activities and territories and restraining others, as well as on social development, ensuring the availability of basic public goods for the population and somewhat equalizing the income level of various social groups of the population.
Until recently, finance was considered mainly from the point of view of the formation and expenditure of monetary resources of government bodies and ensuring their solvency. Cash generation and spending transactions include monetary transactions in which one institutional unit makes a payment or incurs a liability in monetary terms and another institutional unit receives a payment or other asset also in monetary terms. monetary units. Such transactions include, for example, the purchase by the government of goods and services paid for in cash, the remuneration of civil servants, and the payment of social benefits. All other transactions are treated as non-monetary. Examples include barter transactions and in-kind transfers.
However, cash flows are only component all resource flows that business entities deal with. Therefore, they must be considered in conjunction with all other flows as the most important factor influencing the value of assets. AT last years new aspects of financial relations are attracting more and more attention. A new understanding of public finance is emerging. The increasing complexity of developing and evaluating the effectiveness of public policy has led to the refusal to consider finance only as a category that characterizes the movement of funds. The need to reflect the flow of all resources in public finances, draw up balance sheets of public assets and liabilities, and assess the value of property owned by the state was recognized. This entailed the need to integrate all resource flows that governments deal with and build a system of public finances that links the net value of state property at the beginning of any period with the flows of funds during the planning period and the value of this property at the end of the period . The scale of the resources that the state manages and the increase in their share in the total volume of the country's resources have led to an increase in the influence of state finance on the socio-economic development of the country. (there were more acute problems of the efficiency of using і lt; to shock financial resources.
In this regard, all countries are reforming the public finance system based on the recommendations of the International Monetary Fund, adopted in 2001. The new system should ensure the identification, measurement, monitoring and evaluation of the impact on the economy of government economic policies and other economic activities. The management of these operations should provide for the long-term sustainability of financial and economic activities. The International Monetary Fund considered it expedient to abandon the balancing of receipts and expenditures of only cash as the central link in the financial system and link the movement of purely cash flows with the movement of ieeh assets owned by the state.
According to the new interpretation of public finance, they are not only a tool for the formation and spending of monetary resources, but also a tool that ensures the formation of all assets and liabilities of government bodies, including non-financial assets and liabilities.
Thus, it is taken into account that, ultimately, the stability of public finances is determined not only by solvency, but to an even greater extent - net worth state assets, the amount of property it owns, including non-financial assets (fixed capital, etc.).
When the state sells any property, such as property, land, valuables, it receives money, which is considered as budget revenue. In the case of the purchase of property, the costs of it are considered as budget expenses. At the same time, the value of the change in assets is not reflected anywhere. Meanwhile, the purchase or sale of property by the state does not change its net income or equity. Only the form of its assets changes: in the case of the sale of property, cash increases, and the fixed capital of the state decreases, in the case of a purchase, vice versa. This situation creates incentives for the sale of land, the leasing of land rich in minerals, since the incoming funds are considered as income. In addition, incentives are created to reduce investment, including in the development of human capital, since the funds spent on this are considered as expenses; an increase in the state's own capital by taking schools, hospitals and other property on the balance sheet is not considered.
If a corporation performs the same transaction, this is reflected in the capital account. In the case of the acquisition of property by a corporation, the purchase costs are not considered as current expenses, but as investments. The acquisition of property is not reflected in net income, and the capital of the company increases. There is a need to introduce a capital account into the budget. Accounting for assets and liabilities should reflect both tangible and intangible assets. This will lead to greater prudence in economic policy. The flow of funds to and from the government should lead to an increase in the value of public property.
In accordance with the Concept of reforming the budget process in Russian Federation, approved by the Decree of the Government of the Russian Federation on May 22, 2004, in Russia, starting from 2006, a transition to new principles for the formation of public finances is also being carried out. The purpose of the reform, as noted in the Concept, is "improving the effectiveness of budget expenditures and optimizing the management of budget funds at all levels of the budget system of the Russian Federation." The main directions of the reform were defined in the Budget Message of the President of the Russian Federation to the Federal Assembly "On budget policy in 2003".
The implementation of the new principles in all countries requires many years, including preparatory and transition periods. In the process of reform, it is necessary to ensure not only a stable balance of the budget, but also the transformation of the public administration system. The envisaged changes in methods and procedures require practical testing and testing. The accelerated implementation of the new system may lead to a weakening of financial discipline and an unjustified complication of budget administration.
The boundaries of the finance sector of public (public) administration. The definition of public finance is associated primarily with the definition of the boundaries of the public administration sector.
Sawing, i.e. sector of the economy, the finances of which are subject to review, and its delimitation from other sectors of the economy. The boundaries of the sphere of public finance are determined by the range of institutional units related to the sovereign's other government bodies.
The state administration system of the country consists of bodies of state power and their structures, conjoined as a result of political processes, endowed with monopoly rights and power within a given territory or its parts. Accordingly, the totality of all public institutional management units operating in the country forms the public administration sector. The public administration sector includes state and municipal authorities and non-profit organizations owned or controlled by them.
From a functional point of view, the sector of state (public) administration is determined by the tasks and functions assigned to individual units of this sector. This is the provision of non-market services, the implementation of the redistribution of income and property, and the implementation of government tasks. State governing bodies carry out their functions not for the purpose of extracting financial or other commercial benefits.
General government finance should be distinguished from public sector finance as a broader concept that includes the general government sector and public non-financial and financial institutions. This is due to the fact that non-financial organizations (state industrial and other enterprises) perform functions related to the production and sale of goods and services, and state financial organizations (the Central Bank and other state financial and credit organizations) perform functions similar to those of the financial sector of the economy and are part of it. The functions of the general government sector are fundamentally different. These are the provision of public goods (the provision of non-market services to the population), the redistribution of income and property, and the fulfillment of state tasks.
The need to separate public finances from the finances of other sectors of the economy is predetermined by the need to distinguish between the public sector and the public administration sector.
The public sector is a broader concept than the public administration sector. It stands out in terms of property owned or controlled by the state. Along with public administration, whose activities are aimed at realizing the interests of society as a whole, it performs a number of other functions related to the production and sale of goods and services, as well as functions similar to those of the financial sector of the economy. The presence of such activities raises the problem of distinguishing between the operations of the general government sector and other sectors of the economy. There is a need to decide whether such activities are part of the operations of the general government sector or belong to some other sector of the economy. The question of the distinction between the general government sector and other activities of enterprises and organizations belonging to the public sector arises when considering any type of industrial or commercial activity.
The problem is related to the fact that in addition to dividing the economy into economic sectors, there is also a division of business entities by ownership. Enterprises and financial institutions can be either privately owned or state-owned or controlled by the state. In the latter cases, according to the system of national accounts, they belong to the public sector, but are not considered as government bodies, and, accordingly, their finances are not government finances. When broken down by sector of the economy, such units belong respectively to the non-financial corporate enterprise sector or form part of the sector financial institutions. The criterion is the main function of public administration and public institutions- provision of non-market services. This function differs from the functions of other sectors in terms of its objectives, results and sources of funding. To consider public finance, it is important to highlight those financial transactions that are related to the performance of the state of its main function.
Separation of the finances of the public administration sector from the financial sector of the economy. When shaping public finance, a clear distinction must be made between the sectors of government and financial institutions. Financial institutions may be owned or controlled by public authorities and may accept transferable demand, term and savings deposits, perform the functions of monetary authorities, incur financial obligations and acquire financial assets in the financial market. However, institutions or activities of this kind do not belong to public finance. The exclusion of such financial functions from the activities of the government requires a more complete and clear presentation of the results of the financial activities of governments, expressed in the form of their transactions with the financial system, so as not to mix these two sectors with each other.
Distinguishing the public finance system from monetary regulation makes it possible to properly assess the role of the general government sector in regulating monetary circulation and the balance of payments, as well as to distinguish between financing the deficit (or using a surplus) in the balance of payments and financing the deficit (or using a surplus) of the state budget. Therefore, the functions of monetary authorities, performed by both the central bank and government agencies, are considered as performed by the financial sector of the economy. Functions of this kind are monetary regulation, management of international reserves, acceptance of transferable demand deposits, acceptance of time and savings deposits, simultaneous incurring of liabilities and acquisition of financial assets in the capital market. All transactions related to the performance of such functions are not included in the transactions of the general government sector and must be recorded in the transactions of the financial institutions sector. At the same time, since central (national) banks and some other financial and credit institutions are the property of the state, they are used by the authorities to conduct state financial and monetary policy. The financial institutions sector includes the following sub-sectors: monetary authorities, commercial banks, deposit banks, insurance companies, non-state pension funds, other financial institutions. At the same time, the state pension and other state off-budget social funds of Russia belong to the public administration sector.
Insurance companies and pension funds are part of the sector of financial institutions involved in mobilizing the savings of the population and paying insurance amounts in accordance with the contract and investing temporarily free cash in various assets. Insurance companies include corporate entities and mutual funds whose main function is to provide various types of insurance (life insurance, accident, illness, fire, accident, etc.). Insurance companies are not included in the general government sector. However, social insurance funds, which are funded by mandatory contributions from employees and/or employers, created, controlled and financed by the state and extended to the entire country (as is the case in Russia) or significant groups of the population, belong to the general government sector. Pension funds that arise on the basis of voluntary agreements between employees and employers, and not as a result of decisions of public authorities and operate on the basis of independent funds, are considered to be operating in the financial sector. They are independent organizations operating in the capital market. At the same time, the pension funds of civil servants, whose funds are invested in public securities belong to the public administration sector. In Russia, the State Pension Fund, which serves the entire population, is also classified as public administration, and its financial operations as public finance.
Separation of the general government sector from the non-financial public sector. State-owned enterprises of the corporate and quasi-corporate types include enterprises that are owned or controlled by the government. They operate on a commercial basis, selling market goods and services to other sectors of the economy in large volumes and at market prices. Public authorities are considered to be the owners of a given enterprise if they own all or more than half of its shares or other types of capital participation. The criteria for determining who exactly controls the enterprise are more complex. Control includes policy making, management and leadership. Even if the state authorities do not own most of the capital of the enterprise, but at the same time they largely control its activities, the enterprise is considered a state enterprise. In Russia in 2006 there were 160 thousand state enterprises.
Identifying units that are nonfinancial public enterprises is important for several reasons, most notably to delineate the boundaries of the general government sector from which they should be excluded and to define the boundaries of the nonfinancial public sector.
State enterprises can be used to implement the most important government programs. important view state and municipal expenditures are expenditures on investments in newly created or operating enterprises, carried out to a large extent on an equity basis with private business. These costs are an integral part of economic policy that affects the structure and technological level of production. The total funding needs of the general government and non-financial state enterprises and their ability to meet them is an important indicator of the total volume of operations they carry out and the impact they have on the state of the country's monetary system. Financial transactions and account balances of such public enterprises are not included in the general government finances due to the fact that their nature of activity is different from that of this sector, and the solution of their production and financing tasks is not based on for public policy reasons.
Those enterprises and organizations that do not sell goods and services to the population on a large scale, but are engaged in the performance of regulatory functions (for example, licensing of sellers) should not be included in the sector of non-financial state enterprises. If the main funding or control over the activities of such units belongs to government bodies, then they should be included in the general government sector.
So-called departmental state enterprises should be distinguished from corporate and quasi-corporate state enterprises. Departmental enterprises include enterprises and organizations operating within the general government sector and engaged in commercial or industrial activities on a small scale. Examples of departmental enterprises whose main activity is the sale of goods and services outside this sector on a small scale - services Catering in the buildings of government organizations, organizations engaged in rental housing for government employees. To provide to other sectors paid services includes the issuance of passports, driver's licenses, court fees; ancillary activities to other government functions include the sale of seeds or breeding animals by experimental farms, the sale of museum postcards by government museums, and the sale of vocational school products. There may be a sale of goods and services by government agencies in the form of tuition fees, fees for visiting parks and museums, etc. Examples of departmental enterprises of an auxiliary type are military enterprises engaged in logistics, sales military equipment, repair shops.
Assignment to the general government sector is not commercial organizations carried out depending on who finances and controls them. The general government sector includes non-profit institutions wholly or mostly funded and controlled by authorities public authorities who may participate in their creation. Public funding may take the form membership dues or other transfers, and state control may consist in organizing the effective operation of such organizations. Non-profit organizations that exist on private voluntary contributions and are not controlled by the state belong to the sector of non-profit organizations serving households. Distinction problems may concern hospitals, educational institutions, etc.
In accordance with the foregoing, public (lt; public) finances include finances federal budget, budgets of subjects of the Federation, budgets of municipal authorities and state and municipal non-budgetary social funds. The central place in public finance belongs to budgets. At the same time, a significant role is played by various state autonomous funds at the federal and regional levels. As a rule, these funds accumulate resources for solving major problems that require special attention of state authorities. The sources of such funds are earmarked taxes and fees, transfers of funds from the budget, capitalization of income and loans. In France and Japan, about half of government spending is financed from such funds from gays, in Great Britain - a third. The funds are targeted and intended to finance various social, economic, scientific, technical, credit and other problems.
Education and expenditure of financial resources of the public sector. As already noted, public sector finance is a complex system. In a consolidated form, the formation and use of financial resources of state and municipal governments can be characterized on the basis of the system of national accounts. In Russia, the formation and use of financial resources of government bodies are characterized by the data in Table. 17.1.
In the public administration sector, as in other sectors of the economy, gross value added is created, employees are paid and certain types of taxes are paid. As a result, a gross profit public administration sector. It characterizes the profit (loss) before taking into account income from property.
Balance of primary income. Primary incomes of economic sectors reflect their formation from the first recipients, including in the public administration sector. In the process of redistribution, the income (gross profit) of the public sector is increased by taxes on production. Taxes on production and imports in the SNA are treated as the primary revenues of the state, considered as a participant in the reproduction process, providing the necessary conditions its implementation. Production taxes are understood to mean taxes on products and "other taxes on production", i.e. indirect taxes levied depending on the quantity of products produced (VAT, sales tax, excises, customs duties, etc.). They make up the bulk of the primary revenues of the general government sector. The share of taxes on production in GDP in 2005 was 20.4% and increased by 1.7 percentage points compared to 2002. At the same time subsidies for production decreased by 0.9 percentage points.
In the process of generating primary revenues, governments receive payments for providing their
Generation, distribution and use of revenues of the public administration sector in 2002-2005, billion rubles1
Number lines | 2002 | 2005 | 2002 in °/ok GDP | 2005 in °/ok GDP | |
Income generation | |||||
Gross value added (GVA) generated in the general government sector | 1 | 1033,0 | 1939,4 | 9,5 | 9,0 |
Wages of employees | 3 | 942,2 | 1800,3 | 8,7 | 8,3 |
Other net taxes on production* | 4 | 1,0 | 0,6 | 0,0 | 0,0 |
Sector Gross Profit (5 = 1-2-3) | 5 | 89,8 | 138,4 | 0,8 | 0,6 |
Production taxes | 6 | 2027,0 | 4406,7 | 18,7 | 20,4 |
subsidies for production | 7 | 181,2 | 162,4 | 1,7 | 0,8 |
Property income received | 8 | 213,1 | 335,8 | 2,0 | 1,5 |
Property income transferred | 9 | 235,8 | 220,0 | 2,2 | 1,0 |
Gross balance of primary income (10 = 5 + 6-7 + 8-9) | 10 | 1912,9 | 4498,7 | 17,7 | 20,8 |
Current taxes on income, property, social security contributions and other current transfers received | 11 | 1924,8 | 3820,1 | 17,8 | 17,7 |
Social benefits in cash and other current transfers paid | 12 | 1148,9 | 1771,4 | 10,6 | 8,2 |
Gross disposable income (13= 10+ 11-12) | 13 | 2688,7 | 6547,5 | 24,8 | 30,3 |
Final consumption expenditure (14 =15+ 16) | 14 | 1911,3 | 3598,3 | 17,6 | 16,6 |
Individual goods and services | 15 | 858,2 | 1654,1 | 7,9 | 7,7 |
Collective Services | 16 | 1053,2 | 1944,2 | 9,7 | 9,0 |
Gross saving | 17 | 111A | 2949,2 | 7,2 | 13,6 |
Capital transfers received | 18 | 224,5 | 3,6 | 2,1 | 0.0 |
Capital transfers transferred | 19 | 806,3 | 733,2 | 7,4 | 3,4 |
Gross saving including balance of capital transfers (20 = 17 + 18-191 | 20 | 195,6 | 2219,6 | 1,8 | 10,3 |
Gross capital formation | 21 | 258,8 | 801,7 | 2,4 | 3,7 |
Net acquisition of non-produced non-financial assets | 22 | -13,2 | 0,9 | 0,0 | 0,0 |
Net lending (+), net borrowing (-) 23 = 20 - 21 - 22 | 23 | -50,1 | 1417,0 | -0,5 | 6,6 |
“Other taxes on production” refers to taxes paid for the use of factors of production (land, capital goods, labor) or for the right to carry out certain activities.
1 National accounts of Russia in 1999-2006. M.: FSGS, 2007. S. 38.
i property (financial and non-produced assets) on a returnable and reimbursable basis to institutional units of other sectors of the domestic economy and foreign economic entities and pay money for the use of property owned by institutional units of other sectors and foreign economic entities. Such payments include interest, dividends, rent for land and other natural resources, reinvested income from foreign direct investment, and some others. In 2002, payments for the use of borrowed resources exceeded receipts. And in 2005, mainly due to the reduction of the state debt, the balance of payments for the use of borrowed funds was formed in favor of the public administration sector of Russia. As a result, the balance of primary income increased, and its share in GDP increased by 3.1 percentage points compared to 2002 and amounted to 20.8%.
Gross disposable income. The disposable income of the public sector of government is the income that can be used for consumption and saving purposes without reducing small funds, selling assets, or increasing liabilities to other sectors. They are formed as a result of the redistribution of income through transfers in cash. If for the 1990s. was characterized by the weakening of the position of the state, then after 2000 the share of the state in Russia's gross disposable income increases. Its gross disposable income relative to GDP was 24.8% in 2002 and 30.3% in 2005. With almost a third of the gross domestic product, the state represented by federal, regional and municipal authorities is the largest economic entity in the country and has a huge impact on its socio-economic development.
The disposable income of the general government sector due to the balance of received and paid transfers in 2002 exceeded the balance of primary income by 40%, and in 2005 - by 45%.
Allocation of gross disposable income of the public sector to final consumption and savings. Government spending on final consumption in current prices in 2005 amounted to 16.6% of GDP, including 7.7% for individual goods and services and 9% for collective goods. Gross savings over this period increased 3.8 times. The share of final consumption in gross disposable income decreased from 71% to 55%. Accordingly, the share of savings increased.
Gross saving and its use. According to the logic of reproduction, gross saving should be used for capital accumulation. The use of general government savings for gross capital formation in the economy consists of two streams. One of them is capital transfers to other sectors, the second is gross capital formation in the general government sector itself.
In 2005, the balance of capital transfers received and directed by the public sector of the economy to other sectors of the domestic economy amounted to 355.9 billion rubles. Accordingly, 12.1% of the sector's gross savings were directed to capital transfers to the domestic economy. 813.7 billion rubles were used for the purpose of accumulation in the public administration sector itself (for the construction of housing, hospitals, clinics, schools, other social facilities, as well as other investment projects). against 265.9 billion rubles. in 2002. Thus, 39.7% of savings in the public administration sector was used for savings.
In 2005, the amount of gross capital formation in the public administration sector and capital transfers transferred by this sector to the domestic sectors of the economy amounted to 1,169.7 billion rubles. against 449.9 billion rubles. in 2002. The increase in current prices was 2.6 times. Given that the deflator of gross capital formation over this period amounted to 1.6 times, we can assume that the participation of the general government sector in total capital growth also increased by 1.6 times.
At the same time, the amount of savings not used for accumulation increased sharply. In three years they have grown
- trillion rubles and accounted for 48% of savings in the public administration sector. This sector concentrates 3/4 of the total amount of savings not used for accumulation in the economy as a whole. These funds are directed mainly to the early repayment of external public debt and the formation reserve funds. Thus, the budget has a negative impact on economic development, as the resource base for economic growth is narrowing. Using a surplus to pay off the principal is beneficial for a country if the total savings from debt repayment and interest payments generated by early repayment, more than the income from investing the corresponding funds in the economy.
However, more beneficial economic terms is the use of development funds national economy, increasing the volume and improving the structure of public goods. Investing in enterprises on a commercial basis allows you to solve several problems. The state receives a stable source of funds for the budget with a rate of return that exceeds the return on investments in foreign securities. An increase in investment in the economy through public funds allows accelerating the economic growth, promotes the modernization of production, has a significant impact on the restructuring of the economy and the development of high-tech, science-intensive industries and frees the country from the danger of falling prices for raw materials and rising prices for imported goods.
The excess of the total value of financial resources over the resources that were actually used for gross capital formation is Russia's net lending to the economies of other countries. For the economy as a whole, net lending and net borrowing reflect the balance of relations with other countries in providing and receiving financial resources on a reimbursable and repayable basis. They are defined as the difference between the total capital gains financing resources and the total gross capital formation and land acquisition costs, natural resources and non-produced intangible assets. This value reflects the difference between the total amount of financial assets acquired by residents of a given country and the total amount of funds accepted by them. financial obligations in relation to residents of other countries.
The totality of resources at the direct disposal of the state form the public sector of the economy. The public sector of the economy is a field of activity focused on eliminating market failures, creating common and socially significant benefits. The public sector is a rather complex entity and to a large extent overlaps with the state. It includes budgetary institutions, state non-budgetary funds and state enterprises, and other objects of state property. However, not all enterprises owned by the state are focused on the production of public goods. It is not entirely correct to attribute to the public sector state-owned commercial enterprises whose products are market goods, have the properties of competition and exclusion.
In addition to these tools, the public sector in the broad sense of the word includes non-governmental non-profit organizations. The sector of non-profit organizations, which have received great development in leading foreign countries, is an important element of civil society. These structures operate in the field of market failures and are not focused on making a profit. The goals and objectives of their activities are fixed in the charter. Non-profit organizations can make a profit, but it is directed solely to achieve statutory goals. An important difference between non-profit organizations and state organizations is that they are created on a voluntary basis and function independently. They are more open and responsible to the consumers of their services. In some cases, some of the regulatory functions traditionally performed by the state may be transferred to non-profit organizations.
The public sector is not only a set of state-owned enterprises and organizations owned by the state, but also money. In this regard, public finance plays a key role among the components of the public sector: the state budget, its revenues and expenditures.
The public sector is such an area of the economy or part of the economic space, where the following specific conditions are determined in the aggregate:
1. the market does not operate or partially operates, therefore, the non-market way of coordinating economic activity prevails, the non-market type of organization of the volume of activities;
2. not private, but public goods are produced, distributed and consumed;
3. economic balance between supply and demand for a public good is carried out by the state, local governments and voluntary public organizations with the help of relevant social institutions and budgetary and financial policy.
Unlike the market sector, the public sector deals with public goods, which for the most part are not subject to sale and purchase. In cases where there is a commercial transaction for a public good, it is not considered as the main motive for activity. public organizations. In this regard, public sector organizations are called non-profit. Since the activity of the state occupies a dominant place in the public sector, it is often called the public sector of the economy. The structure of the public sector is heterogeneous and includes three sub-sectors: state, voluntary-public, mixed. On the one hand, the mixed sector occupies an intermediate position between the public and market sectors, on the other hand, there is an adjacent zone within the public sector between the state and voluntary public sub-sectors.
The scale of the public sector is characterized as the size of state ownership.
Tax bearers are persons, end taxpayers, who bear the actual tax burden./18, p. 11/
Based on the definition of tax, its main features are:
1) Mandatory payment;
2) Individual gratuitousness of the tax;
3) Alienation of property belonging to the taxpayer in cash;
4) The source of financial support for the activities of the state or municipalities.
Mandatory payment. In accordance with Article 57 of the Constitution of the Russian Federation, everyone is obliged to pay legally established taxes. Typically, the taxpayer enters into tax relations, acquires the obligation to pay tax not by his own will, but by virtue of the legally significant facts of his activity.
Individual free tax. The task of any state is to meet the collective needs of society by providing public goods. Society as a whole receives public goods from taxes paid. The payment of a tax by an individual payer does not give rise to a counter duty on the part of the state to provide him with any service.
Alienation of property belonging to the taxpayer in cash. The tax is levied by the alienation of funds belonging to the taxpayer.
Source of financial support for the activities of the state or municipalities. The purpose of levying the tax is to provide financial support for the activities of the state and municipalities. This feature of the tax is the main one and is directly related to its fiscal function. /18, pp. 7,8/
But according to Mayburov M.A., the main features of the tax are:
1) imperative (compulsory);
2) individual gratuitousness;
3) legality;
4) payment for the purpose of financial support of the activities of the state;
5) relative regularity (periodicity) of payment.
Imperativeness, gratuitousness and payment in order to financially support the activities of the state, we have already considered. Let's take a look at the other two. Legality as a sign distinguishes taxes in that their establishment, the procedure for calculating and paying, changing or canceling are carried out exclusively on the basis of the law. Taxpayers are required to pay legally established taxes.
The sign of relative regularity distinguishes the tax by a certain frequency of its payment within the terms strictly allotted by law, i.e. a tax is not a one-time, but a regular withdrawal of funds, provided that the taxpayer retains the object of taxation. /10, pp.12, 13/
According to Mayburov I.A., the tax legislation today knows two interpretations of the category “tax”: “The first definition, which existed for seven years, was given in Art. 2 of the Law of the Russian Federation "On the fundamentals tax system in the Russian Federation” dated December 27, 1991: “Tax, fee, duty and other payment means compulsory contribution to the budget of the appropriate level or to an extra-budgetary fund carried out by payers in the manner and on the conditions determined by legislative acts.
The second definition reads as follows, according to Art. eight tax code RF "tax is understood as a mandatory, individually gratuitous payment levied from organizations and individuals in the form of alienation of funds belonging to them on the basis of ownership, economic management or operational management of funds in order to financially support the activities of the state and (or) municipalities." /10, p. 14/
The movement of taxes is connected with the movement of all social capital. Through taxes, a significant part of the necessary and part of the surplus value is withdrawn. In the process of movement of money capital, its part in the form of taxes is periodically withdrawn from the circulation and takes on an independent form and movement .... thus, the functioning of taxes simultaneously leads to a reduction in production consumption and to the formation of a state monetary fund that increases state demand and consumption. ”/18, page 9/
financial relations, emerging from the state with enterprises, organizations, institutions and the population, are called budgetary. Specificity of these relations as part of the financial is that, firstly, they arise in the distribution process, in which the state (represented by the relevant authorities) is an indispensable participant, and, secondly, they are associated with the formation and use of a centralized fund of funds, designed to meet public needs. Budgetary relations are characterized by great diversity, since they mediate different directions of the distribution process (between sectors of the economy, spheres of public activity, sectors of the national economy, territories of the country) and cover all levels of management (republican, local).
Aggregate budget relations on the formation and use of the budgetary fund of the country is the concept of the state budget. By economic essence the state budget- these are monetary relations arising from the state with legal and individuals regarding the redistribution of national income (partially - and national wealth) in connection with the formation and use of the budget fund intended for financing the national economy, social and cultural events, the needs of defense and public administration. Thanks to the budget, the state is able to concentrate financial resources on decisive areas of economic and social development.
This category, being part of finance, is characterized by the same features that are inherent in finance in general, but at the same time has features that distinguish it from other areas and links of financial relations. Features include the following:
“direct subordination to the state, the state is the organizer of all financial relations, but in the budget its role as the main manager of the country's material and financial resources is manifested with great force. No financial plan of the country is approved as a Law by the Jogorku Kenesh, except for the state budget:
An equally important feature is its unity and a high degree of centralization. Despite the large number of budgets of various administrative-territorial units, they are all summarized in a single consolidated budget in compliance with the consistent relative subordination of lower levels to higher units.
In the state budget, as in no other division of the financial system, there is a terminological combination of two concepts, budget as economic category and the budget as the main financial plan.
As the main financial instrument for the distribution of the social product, the state budget has other features. If the distributive function of finance in material production and the non-productive sphere is carried out under conditions of frequent changes in the forms of value, numerous acts of sale and purchase, the distribution of the social product through the budget always occurs somewhat isolated from exchange.
The movement of value through the budget is completely separated from the movement of the material product and is of a purely cost nature. The view of the budget as an economic category was not immediately recognized.
A feature of the state budget is also an organic connection with all divisions of the financial system and other economic categories (price, salary, credit, etc.);
The state budget is a special economic form of redistributive relations associated with the separation of a part of the national income in the hands of the state and its use in order to meet the needs of the whole society and its individual state-territorial formations;
With the help of the budget, there is a redistribution of national income, less often - national wealth between sectors of the national economy, territories of the country, spheres of public activity;
The proportions of the budgetary redistribution of value, to a greater extent than in other parts of finance, are determined by the needs of expanded reproduction as a whole and by the tasks facing society at each historical stage of its development;
The area of budget distribution occupies a central place in the composition of public finances, which is due to the key position of the budget in comparison with other links.
The essence of the state budget as an economic category is realized through distributive (redistributive) and control functions. Thanks to the first, there is a concentration of funds in the hands of the state and their use in order to meet national needs; the second allows you to find out how timely and fully the financial resources are at the disposal of the state, how the proportions in the distribution of budgetary funds actually add up, whether they are effectively used Features of the state budget as an economic category -; leave an imprint on the functions they perform. The content of functions, the scope and object of their action are characterized by certain specifics. Thus, the content of the distribution function of the budget is determined by the processes of redistribution of financial resources between different divisions of social production. None of the other links carries out such a multi-species (intersectoral, inter-territorial, etc.) and multi-level (republican, regional, district, city, etc.) redistribution of funds as the budget.
The scope of the distribution function is determined by the fact that almost all participants in social production enter into relations with the budget. The main object of the budget reallocated; is net income; however, this does not exclude the possibility of redistribution through the budget and part of the cost of the necessary product, sometimes national wealth.
The distribution of the social product through the budget has interrelated, but to some extent separate stages:
1) the formation of a nationwide monetary fund; 2) the creation of numerous budget funds for territorial and targeted purposes; 3) the use of the budget fund (budget expenditures).
At the first stage, there is a concentration of funds in the hands of the state by withdrawing them from business entities and citizens. On this basis, there are financial relations of the state as a recipient of funds with payers. For the most part, these relations are mandatory, but part of the funds goes to the budget on a voluntary basis. A characteristic feature of the distribution process at this stage is that the funds received by the budget are impersonal and do not yet receive a strictly defined distinction. When forming the budget fund, two concepts are used: payments to the budget and state budget revenues. These are identical concepts, since they express the same distribution relations between the state and payers. Payments to the budget are primarily the expenses of payers, which are a deduction from income, while in the state budget these payments act as state revenues. Hence, some differences in the interests of the parties The state is interested in increasing budget revenues, but the withdrawal of funds from payers to one degree or another affects the interests of labor collectives.
State budget revenues are distinguished by unity and serve common purpose- satisfaction of public needs. Despite the large differences in the methods of withdrawal, the composition of payers, the terms of payment, etc., all of them are carriers of distribution relations between the state and payers. Therefore, and are a budget category. A distinctive feature of the category - state budget revenues is that they always act as the result of distribution and the object of further distribution.
At the second stage, as already mentioned, there is the formation of numerous funds for territorial and targeted purposes, i.e. the most complex distributive process of splitting the nationwide monetary fund is being carried out. At this stage, the interests of all enterprises, organizations and members of society intersect. Since each administrative-territorial unit has its own budget, the correct definition of total volumes these budgets, i.e. territorial funds. Since the expenditures of a particular budget often do not coincide with the volume of revenues received locally, there is a need for additional provision of funds from a higher budget. Thus, a complex distribution process takes place, in the orbit of which all administrative-territorial divisions are located, and some of them transfer their funds, while others receive them through budget mechanism. At the same time, special-purpose funds are formed in the budget and in all its divisions, designed to meet the needs of society in cash.
At the third stage budget funds are spent according to the territorial and intended purpose, i.e. there is an irrevocable transfer of budget funds in most cases within the same form of ownership, and the actual spending is carried out only by enterprises and institutions that have received budget resources to the last stage of the budget distribution process.
State budget expenditures, as well as its revenues, have dual character. On the one hand, these are state expenses, and on the other hand, irrevocable receipts of funds at the disposal of enterprises and institutions. It is this duality that indicates that state budget expenditures are not the final, but only an intermediate stage of the distribution process, which will be continued in material production and the non-productive sphere.
Budget expenditures as a budgetary category manifest themselves in different ways and are dictated by certain economic considerations. They may be in the form:
Estimated financing;
Transfer of funds to the disposal of state enterprises, where the objects of financing are only capital investments and other expenses
Grants, subsidies, subventions, categorical and equalization grants to regions
The control function lies in the fact that the budget objectively - through the formation and use of the state's fund of funds - reflects the economic processes taking place in the structural links of the economy. Thanks to this property, the budget can “signal” how financial resources come to the state from different business entities, whether the size of the state’s centralized resources corresponds to the volume of its needs, etc. The basis of the control function is the movement of budgetary resources, reflected in the relevant indicators of budget revenues and expenditure assignments.
The important role of the state budget is not limited to financing the sphere of material production.
Budgetary resources are also directed to the non-productive sphere (education, health care, culture, etc.). Financing of enterprises and institutions of the social and cultural direction is carried out at the expense of budgetary and non-budgetary funds. Budget expenditures due to the implementation of the social policy of the state are of great importance. They suppress the state to develop the system of public education, finance culture, meet the needs of citizens in medical care, improve their level of social security, and implement social protection.
Republican and local bodies of state power and administration, through budgetary relations, receive at their disposal a certain part of the redistributed national income, which is directed to strictly defined goals, depending on the division of functions between levels of government.
The redistribution of financial resources is increasingly carried out through financial market based on supply and demand. Therefore, the role of state financial regulation of market relations should be strengthened through systems: tax, financial sanctions to benefits. It is especially important to ensure the proper fulfillment (timely and in full) of financial obligations to the budget and extrabudgetary funds.
Currently, the budget system of the Kyrgyz Republic consists of two elements: the republican budget and local budgets
The budget system of the Kyrgyz Republic, in accordance with the state budget legislation, is based on two main principles: the unity of the budget system and the independence of budgets.
The principle of unity in its content differs from the previous principle: it is provided by a single legal framework, the use of a single budget classification, which was introduced on the model of the US budget classification, the unity of documentation forms with the submission of the necessary statistical and budget documentation from one level of the budget to another to compile a consolidated the country's budget. In accordance with the budget legislation, the state budget of Kyrgyzstan is the main financial plan of the state, approved by the Jogorku Kenesh, and has the status of a republican law, local budgets are approved by local authorities.
Financial resources are mobilized through the state budget, which are necessary for their subsequent redistribution and use for the purposes of state regulation of the country's economic development and the implementation of social policy throughout Kyrgyzstan.
The preparation and execution of the budget is based on the budget classification, which highlights the target areas state activities arising from the basic functions of the state.
For investment activity 1996-1998 was characterized by an increase in the role of enterprises' own sources of accumulation to finance their investment projects with the reduction of centralized capital investments. At state support the center of gravity has shifted from non-refundable financing to budgetary lending on a repayable and paid basis. State financing of investment projects for industrial purposes was carried out on a competitive basis. budget classification should enable economic analysis of public spending.
Public sector finance in the structure of the financial system.
1. Public sector finance as a resource potential.
2. The structure of the financial system and the European system of integrated economic accounts.
3.Public finance modern Russia: scope and possibilities.
1. Public sector market economy includes
1. Public sector (budget, taxes, public spending, public property, public entrepreneurship)
2. Local government (local finance, local property)
3. Non-profit sector of the economy (education, healthcare)
One of the initial prerequisites of the Economics of the public sector is that in order to achieve goals, the state and the public sector as a whole use mainly financial instruments: TAXES, PUBLIC EXPENDITURE)
The nominal state establishes and maintains the economic order and protects the rights of other subjects of enterprises, households, non-profit organizations.
For the realization of these rights, as well as the implementation of its functions, the state collects public financial resources (public finances) on the basis of legal withdrawal (taxation) of a part of the income of other subjects of market relations.
An important task for the economy of the public sector is certain possible optimization of the compulsory disposal of resources to achieve optimal parameters of economic and social efficiency.
Public Sector Finance- are defined as relations regarding the systemic redistribution of state, municipal finances and resources of the non-state non-profit sector of the economy based on the contradictory relationship between the interests of the federal, regional and municipal levels of government and the population in order to achieve a sustainable socio-economic structure of society.
The criterion allowing to combine public finances into a separate subsystem:
It is the achievement of a single goal - to ensure the production and delivery to consumers of public goods, i.e. goods for collective use that have special properties and the presentation of which is carried out either by the state (pure public good) or by the state, the market and the non-profit sector as a whole (mixed public goods).
Public goods have two properties:
· Not invention (not rivalry in consumption)
· non-exclusivity
Properties not invention denotes that the good is available simultaneously to many consumers and the marginal cost of its provision to an individual consumer is zero.
Under non-exclusivity implies the technical impossibility or prohibitively high costs of preventing additional consumers from accessing the good.
2 The structure of the financial system and the European Account Integration System
The structure of the WCF as part of the financial system includes:
· public finance(federal budget, budgets of subjects of the federation, state credit, state out-of-budget social and insurance forms)
· municipal finance(local budget, local non-budgetary funds of self-government bodies)
· finance of the non-commercial sector in terms of the implementation of tasks for the production of displaced public goods.
At the level of the subject of the federation, the structure of the FOS of the region is as follows
1. Consolidated budget subject of the Russian Federation with permission for the regional, regional, regional or republican and local budgets of municipal districts, cities, districts, urban and rural settlements.
2. Territorial offices of state non-budgetary funds (pension fund, social insurance fund, compulsory health insurance)
3. Out of budget funds created managed and controlled by regional authorities and self-government bodies.
4. Part of financial state and municipal unitary enterprises
5. Finances of state and non-state non-profit organizations used in the production and provision of public goods and services.
The composition of the FOS differs from the state and municipal finances of modern Russia by absorbing the resources of society in one way or another related to the production and supply of various public goods.
In turn, users of the FOS are households, enterprises, as well as territorial and local communities.
To analyze the specific results of state production, countries use indicators of the national accounting system
System of National Accounts- is a system based on empirical data to determine macro-economic flows and stocks. They are based on consolidated accounts of GDP, capital investments, income and expenditures of state institutions and households, and accounts of foreign economic transactions.
Primary in the analysis of reproduction is the movement of GDP as a source of primary income and savings.
Financial relations function at the second stage of the reproduction process, when the value of GDP is redistributed in monetary form, through the budget and credit systems: economic relations the result is the formation of final income, i.e. financial resources of business entities of the state and the population.
The central place in the status model of the market economy is occupied by the grouping of the economy by sectors for the purpose of analysis. financial flows, income and expenses of assets and liabilities of economic entities, etc.