1. Essence and functions of finance. The role of finance in a market economy
Modern world is the world of commodity-money relations. They permeate the internal life of any state and its activities in the international arena. Finance can be viewed as an economic category and as a financial mechanism.
In the process of reproduction at different levels, starting with the enterprise and ending with the national economy as a whole, funds of funds are formed and used. At the same time, it does not matter in what form the money appears: in the form of cash paper notes, or in the form of credit cards, or those indicated on bank accounts sums generally out of any form.
The system of formation and use of funds of monetary resources involved in ensuring the process of reproduction constitutes the finances of society. And the totality of economic relations that arise between the state, enterprises and organizations, industries, territories and individuals in connection with the movement of funds, forms a fin. relations. They are complex, diverse and resemble the circulatory system of a living organism, through which the movement of goods and services is carried out, a kind of exchange of substances between the economic cells of a social organism. On the periphery of this organism Fin. relationship ends. Here money is already acting in its natural functions as a means of circulation or payment. But before reaching this final link, they are formed and serve the entire set. economic relations and economic relations.
specific features finance are their monetary and distributive character. object financial relations are financial resources in the form of trust funds of cash. The functions of finance are: distribution, control and reproduction.
The role of finance in a market economy follows from the fact that the state and enterprises are full participants in the capital market, acting as creditors and borrowers. Proper organization of finances allows you to quickly respond to changing market conditions, adapt to new conditions, use alternative financial instruments, and fulfill tax and other monetary obligations.
In addition, finance plays important role in attracting investments, and not only in real sector economy, but also the human factor (education, healthcare, culture, sports), creating favorable conditions for the functioning of the capital market.
The role of finance in solving social-econ. tasks is to provide the necessary sources of finance-I sots.-econ. spheres, achieving a balance between economics. efficiency and social justice; production is expanding; carried out with the execution of: 1. Tov.-den. relations. 2. Financial. 3. Credit.
Governments play a big role here. finance and financial enterprises. Through the finance of individual enterprises and industries National economy states on the reproductive process and social. sphere. Part of finance yavl. Investments.
2. The financial system of the Russian Federation and its links. State financial policy.
Fin. the system is interpreted in two ways: as a set of spheres and links of financial relations and as a set of financial institutions.
It includes three main units: state. finance, finance of the population and finance of the enterprise. Of these three links, the finances of enterprises are the main one, because the first two links are formed on their basis. The finances of enterprises, as a link in decentralized finance, participate in the creation of a material source of all the country's monetary funds - national income. The state of decentralized cash funds determines the overall financial position of the country, the leading role in ensuring the pace of development of the sectors of the national economy.
Household finances have only recently become a consideration. as part of the financial system. Financial relations of the population according to the formation family budget have exclusively importance to regulate the effective demand of the country.
The centralized sphere of the financial system is the state. finance. It is owned by the state and, in accordance with the Budget Code, in force since January 1, 2000, includes the budget system and extra-budgetary social funds.
In 1991, the budget system of the Russian Federation underwent cardinal changes. Prior to this, the state budget of the Russian Federation, like that of other union republics, was included in the state budget of the USSR, which reflected all budgets in the country, including rural and settlement budgets. In the Union budget in 1970-1990. concentrated 50-52% of the total resources of the state budget. The budgets of the union republics accounted for 48-50%, of which 35% were at the disposal of the republican budgets, and 15% - in the local budgets.
Public finances consist of three main elements: budgets, off-budget funds and government loans. The budget is an annual plan for the income and expenditure of the state, it is money that allows the state to carry out economic and social. functions (and in Lately and political).
The budget consists of two parts: revenue and expenditure. In countries with developed market economy 80-90% of the revenue part of the budget is formed at the expense of taxes from enterprises and the population. The rest comes from the use of state property, foreign economic activity. The structure of the expenditure part of the budget includes expenditures on social-cult. needs (health care, education, social benefits, etc.), expenditures for the development of the national economy, defense, public administration.
The ratio of revenue and expenditure of the budget may be balanced, but may be unequal. Most often, states are faced with a situation in which expenditures exceed revenues. The practice of budget deficit is widely developed in the world. But there is always a certain limit, beyond which undesirable phenomena in the economy begin. According to the IMF, the budget deficit should not exceed 2% of GNP.
The current budget system of the Russian Federation consists of 3 links: the federal budget, regional budgets (there are 89 of them, including republican, regional, regional, autonomous regions, autonomous districts, Moscow and St. Petersburg) and local budgets (there are about 29 of them thousand, including district, settlement, urban, rural).
Each budget functions autonomously, i.e. the lower budget with its income and expenses is not included in the higher budget. For the purpose of planning budgetary resources, a consolidated budget– statistical consolidated budget, which combines financial resources of all levels budget system.
Off-budget funds are the funds of the federal government and local authorities related to the financing of expenses not included in the budget. Extra-budgetary funds are those funds that are accumulated outside the state budget system and have a strictly designated purpose: a pension fund, a social insurance fund, etc.
The formation of off-budget funds is carried out at the expense of mandatory earmarked contributions, which for an ordinary taxpayer are no different from taxes. Main the amounts of deductions to off-budget funds are included in the prime cost and are set as a percentage of the wage fund. Extra-budgetary funds are separated from budgets and have a certain independence.
Financial policy of the state as part (subsystem) econ. state policy is a set of fiscal, other financial instruments and institutions of the state financial power who, in accordance with the law, have the authority to form and use the financial resources of the state-va in accordance with the strategic and tactical goals of the state economy. politicians. (In this case, the institutions of state financial power include: the Ministry of Finance, tax authorities, customs authorities, Treasury, Accounts Chamber, Federal Commission on currency control, Pension Fund, etc. Financial instruments - budget, tax rates, benefits, funds, etc.).
The objectives of the financial policy include: 1. providing conditions for the formation of the maximum possible financial resources; 2. the establishment of a rational from the point of view of the state-va distribution and use of financial resources; 3. organization of regulation and stimulation of economics. and social processes by financial methods; 4. creation of an effective financial management system.
An important component of financial policy yavl. financial mechanism - a system of forms, types and methods of organizing financial relations established by the state. Fin. the mechanism is divided into directive (it is developed for financial relations in which the state is directly involved - taxes, state credit, budget expenditures, budget finance, etc.) and regulatory (defines the basic rules of the game in financial segments, not directly affecting the interests of the state - the organization of intra-economic financial relations in private enterprises).
There are 3 main types of financial policy: 1. classical (the principle of non-intervention of the state in the economy, maintaining free competition, using the market mechanism as the main regulator business processes- A. Smith, D. Ricardo) 2. regulatory (the financial mechanism is used to regulate the economy and social relations in order to ensure full time population - J. Keynes) 3. planned-directive (used in the administrative-command economy in order to ensure the maximum concentration of financial resources from the state for their subsequent redistribution.
Transition to the 90s XX Art. Russia from a command-administrative economy to market relations demanded a fundamental change in the ongoing financial policy, and above all, the financial mechanism. The essence of these changes was:
transfer of relations between the state and privatized enterprises to tax base;
Changes in interbudgetary relations (regional and local budgets have gained greater independence, primarily in the area of spending funds;
· changing the principles of formation of territorial budgets, where financial assistance funds were created, from which transfers began to be sent to lower budgets;
· in covering the budget deficit not at the expense of the Central Bank of Russia, but on the basis of the issuance of government securities;
· changing the procedure for the redistribution of funds between business entities in connection with the creation of the stock market;
· in building insurance market and private insurance funds;
· in the creation of state social non-budgetary funds at the expense of social insurance funds;
change in the financial management system, the creation of special financial and control departments (the Ministry of the Russian Federation for taxes and fees, federal Service Tax Police, Accounts Chamber).
Main directions of financial budget policy Russia for the long term in accordance with the economics developed and approved by the government of the Russian Federation. the program consists of: 1. reducing the tax burden on the economy; 2. ordering government obligations; 3. concentration of financial resources on the solution of priority tasks; 4. Reducing addiction budget revenues from the conjuncture of world prices; 5. Creation of an effective system of interbudgetary relations and public finance management.
An important area of fiscal policy yavl. carrying out a tax reform, which is designed to reduce the tax burden on the economy, equalize the conditions of taxation for all payers, and increase the level of management of the entire taxation system. Main elements of tax reform: - abolition of inefficient taxes and benefits; - reducing the taxation of the payroll fund and the total amount of contributions to social non-budgetary funds; - reduction of tax rates.
In the course of the reform, a single income tax rate (12%?) is introduced, taxes paid on proceeds from the sale of products are eliminated, and most benefits are canceled. Budget revenues lost as a result of this should be covered by abolishing unjustified tax breaks, increasing tax collection and increasing the share of cash payments in the tax system.
The revision of the size and structure of the state's obligations will be carried out on the basis of a transition to targeted social support for citizens, which implies a reduction in a number of social obligations of the state, in particular, to cover losses in housing public utilities, which will be covered by payments from consumers.
It is also envisaged to reduce the cost of public administration by reducing the number of civil servants.
The main priorities in budget expenditures are: the fight against poverty, ensuring the internal and external security of the state, supporting the judiciary, reproducing scientific potential, and the social sphere.
In order to raise the living standards of the most vulnerable segments of the population, it is planned to annually increase allocations for benefits from the budget. Expenses for education and health care will increase. Funding for defense spending will be based on a new military doctrine, which involves the gradual transfer of the army to a professional basis. A transition will be made to the full financing of the judiciary from the federal budget, which will ensure the real independence of judges.
In order to reduce the dependence of budget revenues on world prices, support will be provided to Russian enterprises entering world markets with high-quality products.
Improving interbudgetary relations involves the creation of a new mechanism for financial support of the territory based on a clear delineation of expenditure and tax powers between the links of the financial system. The resources of the financial assistance funds for the territories should be distributed taking into account the tax potential and budgetary needs of the territories.
An important direction of the financial and budgetary policy of Russia yavl. also the creation of an effective system of public finance management. The transfer of all budgets to treasury execution will strengthen public control over the use of budgetary resources.
3. Financial control: types, forms, methods
Financial control - control of legislative and executive authorities at all levels, as well as specially created units for the financial activities of all economies. subjects using special methods.
Financial control - cost control takes place in all spheres of social production, yavl. multi-level and comprehensive, accompanies the entire process of cash flow and the stage of understanding financial results.
1. Classification of species financial control
By the time of the event: - preliminary (drafting budgets, financial plans and estimates, credit and cash applications, contracts); - current; - subsequent.
By subjects of control: - presidential; - bodies of representative power and local self-government; - executive authorities; - financial and credit authorities; - departmental; - on-farm; - auditor.
By areas of financial activity: budgetary, tax, currency, credit, insurance, investment, control over the money supply.
According to the form of conducting: - obligatory (external); - initiative (internal).
According to the methods of conducting: inspections, surveys, supervision, analysis of financial activities, observation (monitoring), audits.
2. Main types and bodies of state financial control.
Under the representative bodies of power (the Federation Council and the State Duma) there are: - The State Duma Committee on Budget, Taxes, Banks and Finance and its subcommittees. Similar committees have also been created by the constituent entities of the Russian Federation; - Accounts Chamber of the Russian Federation. The Board of the Accounts Chamber, in addition to the chairman and his deputies, includes 12 auditors (6 from each chamber of the Federal Assembly). Current work is carried out by inspectors of the Accounts Chamber. Similar bodies have been created in the constituent entities of the Russian Federation. The scope of authority of the Accounts Chamber is control over federal property, federal funds, state internal. and external debt, the activities of the Central Bank, the efficiency of the use of foreign credits and loans, as well as the issuance of state credits and loans.
Main forms of control - thematic checks and revisions.
Actions: - prescription; - an order that must be followed; - suspension of all operations on accounts.
The activities of the Accounts Chamber according to the law yavl. vowel.
Presidential control is exercised by issuing decrees, signing laws, appointing the Minister of Finance of the Russian Federation, presenting to the State Duma a candidate for the post of chairman of the Central Bank.
Certain functions are performed by the Control Department of the President of the Russian Federation.
The Government of the Russian Federation controls the process of developing and executing the federal budget, the implementation of a unified policy in the field of finance, money and credit, the activities of ministries and departments.
The Government has a Control and Supervisory Board.
The Ministry of Finance and all its structural divisions exercise financial control on duty: through the development of the federal budget, control over the receipt and expenditure of budgetary funds and state non-budgetary funds, control over the directions and use of public investments, methodological management of the organization of accounting, certification of audit and licensing of audit activities .
Operational financial control within the Ministry of Finance is carried out by the Control and Audit Department (KRU) and the bodies of the Federal Treasury.
The federal treasury includes the Main Directorate, the treasuries of the constituent entities of the Federation, cities (with the exception of district subordination), districts and districts in cities.
It is entrusted with the following responsibilities: - control over the income and expenditure part of the FB in the process of its execution; - status control public finance generally; - control (together with the Central Bank of the Russian Federation) over the state of the state internal and external debt of the Russian Federation; - control over state off-budget funds and the relationship between them and the budget.
In order to strengthen control over the efficient use of public investment in 1993, the Russian Financial Corporation was established. She is engaged in competitive selection and examination investment projects carried out at the expense of public resources.
The specialized financial control bodies include: - State. tax service (providing a unified system of control over compliance with tax legislation, correctness of calculation, completeness and timeliness of payment of taxes and other obligatory payments). State. The tax service includes the Federal Tax Service and the state. tax inspections in the constituent entities of the Russian Federation and local governments (city and district tax inspections); - Federal bodies of the tax police, consisting of the Federal Tax Police Service, territorial and local bodies; - The Federal Service for Insurance Supervision (Rosstrakhnadzor), consisting of the central body, regional and cluster (for a group of regions) inspections of Rosstrakhnadzor; - Centre. Bank of Russia (CBR) and its structural subdivision Banking Supervision Department; - departmental financial control is exercised structural divisions ministries and departments.
Inspections are carried out once a year in commercial organizations and once every two years in other organizations.
Negos. financial control includes: - on-farm financial control, which is carried out by the accounting department, the financial department of the enterprise. Includes operational control (carried out by the chief accountant in the course of daily activities by document approval) and strategic; - audit financial control. Auditing may be initiative and mandatory, to which, in particular, all banks are subject, insurance organizations, stock exchanges, extra-budgetary funds, charitable funds, all JSCs and enterprises that have a share of a foreign investor in the authorized capital.
INTRODUCTION .................................................. ................................................. ........... 3
1. THEORETICAL FOUNDATIONS OF ENTERPRISE FINANCE .................................................................5
1.1. Necessity and essence of enterprise finance .............................................. 5
1.2. Functions of enterprise finance .............................................................. .................... 7
1.3. Principles of corporate finance ............................................................... ................. nine
2. MAIN INDICATORS OF THE DEVELOPMENT OF STATE ENTERPRISES FOR 2005-2006 ............................................................... ................................................. .................. fourteen
2.1. Financial Resources of State-Owned Enterprises............................................... 14
2.2. Profit and profitability of enterprises .............................................. .....twenty
2.3 Analysis of the profitability of the enterprise .................................................... ...............
CONCLUSION................................................. ................................................. .. 35
LIST OF USED LITERATURE.................................................................. 30
Introduction
The market economy, with all the variety of its models known to world practice, is characterized by the fact that it is a socially oriented economy, supplemented by state regulation. A huge role, both in the very structure of market relations and in the mechanism of their regulation by the state, is played by finance. They are an integral part of market relations and, at the same time, an important tool for implementing state policy. In the structure of the financial interrelations of the national economy, the finances of enterprises occupy the initial, determining position, since they serve the main link in social production, where material and intangible benefits are created and the predominant mass of the country's financial resources is formed.
Therefore, the main goal of this term paper is the study of the concept and meaning of enterprise finance in particular for state-owned enterprises, their functions and principles.
To achieve the main goal, the following tasks were set:
1. determine the essence of the concept of enterprise finance and their structure;
2. study the functions of enterprise finance;
3. study the principles of enterprise finance;
4. consider the financial resources of state enterprises and the procedure for their formation;
5. to analyze the main performance indicators of enterprises for 2003-2005. and compare with the results of January-February 2007;
6. determine the main directions for improving the investment policy of state enterprises.
The subject of this course work is the finance of enterprises. The object are directly enterprises.
The structure of the work is presented in the following form. The first chapter addresses the following questions. In the first paragraph, the definition of the concept of enterprise finance is given, the structure of their formation and significance is also studied. The second paragraph defines the main functions of enterprise finance as economic category. The third paragraph examines the basic principles of enterprise finance
The second chapter examines the main performance indicators of enterprises. The first paragraph defines the financial resources of state enterprises, examines their structure and formation procedure. In the second paragraph, the indicators of profit and profitability of enterprises are evaluated.
The third chapter defines the strategy for improving the investment policy of enterprises.
In conclusion, the main conclusions on the studied topic are presented.
This course work is based on materials from textbooks of domestic and foreign authors, articles from magazines, as well as Internet sources.
1. THEORETICAL FOUNDATIONS OF ENTERPRISE FINANCE
1.1. Necessity and essence of enterprise finance
The finances of organizations and enterprises, being the main link in the financial system, cover the processes of creating, distributing and using GDP in value terms. They function in the sphere of material production, where the total social product and national income are mainly created.
The financial conditions of managing have undergone significant changes, which were expressed in the liberalization of the economy, changes in ownership, large-scale privatization, changes in the conditions of state regulation, and the introduction of a system of taxation of organizations and enterprises. All this led to an increase in the role of distribution relations. The ultimate goal of entrepreneurial activity for all enterprises and organizations, regardless of ownership, was to make a profit while maintaining their own capital.
In the course of entrepreneurial activity of organizations and enterprises, certain financial relations arise related to the organization of production and sale of products, the provision of services and the performance of work, the formation of their own financial resources and the attraction of external sources of financing, their distribution and use. The material basis of financial relations is money. Financial relations are part of monetary relations and arise only with real cash flow, accompanied by the formation and use of equity capital, centralized and decentralized cash funds. The finances of organizations in the aggregate are the main link in the financial system. On the basis of the nature of the serviced spheres of social production, the finances of enterprises in the sphere of material production and the finances of organizations in the non-productive sphere are distinguished.
One of the main components of the financial and economic activity of an enterprise is monetary relations that accompany almost all other aspects of this activity: the supply of raw materials is accompanied by the need to pay for it, the sale of products is the receipt of money in exchange for the supplied products, the payment of taxes is payments to the budget, the receipt (repayment) bank credit - the movement of funds on the accounts of the enterprise, etc. all such monetary relations are realized within the framework of the financial system of the enterprise. Thus, the finance of enterprises is a set of monetary or financial relations arising from business entities regarding the formation of actual and (or) potential funds of funds, their distribution and use for the needs of production and consumption. Financial science does not study resources as such, but relationships arising from the formation and use of these resources.
Spheres of manifestation of financial relations:
1. relations between enterprises for the supply of raw materials, materials, components, sales of products and services;
2. relations between enterprises and banks that arise when obtaining and repaying a loan, when buying and selling foreign currency, and when paying for banking services;
3. relations with insurance companies and organizations for insurance of property, commercial and financial risks;
4. relations with commodity, commodity, stock exchanges on operations with production assets;
5. relations with investment funds and companies for the placement of investments, privatization;
6. relations with branches and subsidiaries;
7. relations with personnel on payment of wages, dividends, with shareholders, if they are not members of the labor collective;
8. relations with the tax service when paying taxes, with audit firms, with extra-budgetary organizations.
1.2. Functions of enterprise finance
Finance, as a general economic category, performs many functions, i.e. dynamic manifestations of their properties and purposes. The main ones are: investment-distributive, fund-forming, income-distributing, providing and control.
The first function is manifested in the distribution of its resources based on various classification groups, the main of which are: a) structural divisions of the enterprise and (or) types of activities; b) types of assets.
The distribution of the total resource potential of an enterprise among divisions (types of activity) in the most synthesized form is expressed in the framework of investment policy, when relatively more or less attention is paid to one or another division, division, production line, etc. The main criterion in this case, as a rule, is projected return on investment. The distributive function of the enterprise's finances from the standpoint of the structure of its assets is manifested in the desire to optimize the active side of the balance sheet.
The fund-forming function is implemented in the course of optimizing the right (ie, source, passive) side of the balance sheet. Any enterprise is financed from several sources, and there are many of them, and they, as a rule, are not free. Here there is a natural desire to choose the most optimal combination of them. This aspect is especially significant when it is necessary to mobilize additional financial resources in large volumes, which takes place in the implementation of strategic investment programs.
The essence of the income distribution function is that the decisive role in the creation and functioning of the enterprise is borne by its owners; they may liquidate the company, keep the capital invested at a non-expansion level by withdrawing excess profits in the form of dividends, or they may, on the contrary, refrain from receiving dividends in the hope that the reinvested profits will bring a greater return in the future. Arguments in favor of a particular decision are formed within the framework of the dividend policy, when a certain part of the enterprise's resources is withdrawn from it and paid out in the form of dividends.
The meaning of the providing function of finance is determined, firstly, by the intended purpose of the enterprise and, secondly, by the system of established settlement relations. The intended purpose of the enterprise is to regularly generate profits on average, due to which the capital of the owners increases, which, if necessary, manifests itself in the receipt of additional funds by them compared to the initial investment. In purely procedural terms, the second aspect is much more significant - the system of settlement relations, since in the modern economy any relations in the systems “enterprise-state”, “enterprise-enterprise”, “enterprise-employees”, “enterprise-owner”, etc. most often expressed in the form of monetary relations. The finances of enterprises, therefore, are designed to ensure this current, routine activity.
The control function of the finances of enterprises is manifested in control over the validity of the formation of income, over the costs of the enterprise, the rational use of funds, the payment of taxes to the budget and contributions to extra-budgetary social funds. Financial control is carried out in the process of using cash funds for intended purpose. The implementation of this function is carried out with the help of financial performance indicators of enterprises, their assessment and development, the necessary measures to improve the efficiency of distribution relations.
1.3. Business finance principles
The financial relations of commercial organizations are built on certain principles related to the basics of economic activity. These principles are in constant development and improvement.
The following principles of enterprise finance are distinguished.
The principle of economic independence
The principle of economic independence cannot be realized without financial independence. Its implementation is ensured by the fact that business entities, regardless of the form of ownership, independently determine the scope of economic activity, sources of financing, directions for investing funds in order to generate profit and increase capital, improve the welfare of the company's owners.
The concept of the financial system is the development of a more general definition"finance". Finance is a historical category. By their nature, they are closely connected with the state, which needs money to perform its functions.
IN pre-capitalist formations government revenues and expenditures were predominantly in-kind. Most of the state needs were met by various kinds of duties and revenues from in-kind fees.
With the disintegration of feudalism and the gradual development of the capitalist mode of production, monetary incomes and expenditures of the state began to acquire ever greater importance; the share of in-kind dues and duties has sharply decreased. This process is intensified with the expansion of the sphere of commodity-money relations, the growth and complexity of the functions of the state.
In the early stages of the development of the state, there was no distinction between the resources of the state and the resources of its head: the monarchs disposed of the country's funds as their own property. With the separation of the state treasury from the personal cash and property of the monarch (XVI-XVII centuries), the concepts of public finance, the state budget, state loan.
Under the conditions of the capitalist mode of production, commodity-money relations are most widely developed. They cover all spheres and functions of the public economy. In turn, finance, expressing the movement of value, is playing an increasingly important role in the life of the state. In essence, finance is an economic relationship associated with the formation, distribution and use of funds of funds in the process of distribution and redistribution of national income.
It should be noted that financial relations are a narrower concept than monetary relations; they are them integral part. If monetary relations cover all economic relations related to the performance of the functions of money, then financial relations are associated with the movement of cash funds for production and non-production purposes.
Financial relations do not include monetary relations related to commodity and money circulation in retail; with payment for transport, household, communal, entertainment and other services, with the movement of money when they are donated and inherited.
Of the variety of monetary relations of society, the system of financial relations includes:
- - monetary relations that develop between enterprises as business entities. They consist in mutual payment obligations of suppliers and buyers, a system of penalties for their violation, material rewards for fulfilling special customer requirements, etc.;
- - monetary relations between the state and enterprises. They cover the system of payments to the state budget, contributions to various funds and organizations of the sectoral and territorial levels;
- - monetary relations between enterprises and banking system arising from the receipt and repayment of loans;
- - monetary relations that develop within enterprises: firstly, between the enterprise as a whole and its structural divisions; secondly, between the enterprise and the employee regarding wages;
- - monetary relations between government bodies different levels of control over the distribution differential rent, financing of environmental protection measures, etc.;
- - monetary relations between the state and the population regarding the receipt of payments and benefits from public consumption funds, etc.
Thus, the subjects of financial relations are the state, enterprises, organizations and employees of enterprises, citizens. And the object of financial relations are financial resources, which include net income, depreciation deductions for renovation, taxes and non-tax payments, financial reserves, part of the funds of public organizations, etc. Therefore, financial relations express the process of distribution and redistribution of the value of a social product and, on this basis, the formation of funds from participants in the reproduction process: entrepreneurs who invest in production and sell goods and services; able-bodied population that owns the labor force; state that invests Natural resources regulates economic processes.
The financial system is a set of financial links designed to ensure the state's implementation of its political and economic functions, and consists, on the one hand, of public finances, and on the other, of the finances of private enterprises, corporations, monopolies.
The main principles of building the financial system of the state are the principles of democratic centralism and fiscal federalism. The first is characteristic of a planned economy and consists in the concentration in the hands of the highest state power of the right to mobilize and use the predominant part of financial resources national economy. The principle of fiscal federalism means the distribution of functions between the individual links of the financial system. The government is called upon to ensure national goals (defense, space, external state relations). The source of their financing is the state budget. Local governments provide funding for schools, housing, public order, and so on.
State measures for the accumulation of financial resources, their distribution and use are called financial policy. It includes fiscal policy, i.e. the direction of the state's activity in the field of regulation of public expenditures and taxation. The financial policy is carried out with the help of various financial instruments: subsidies, subsidies, transfers, taxes, customs duties.
The direction of financial policy depends on economic condition country. The general trend today is to increase the role of the government in regulating the national economy through the financial system. This is due to the increase in expenses for income maintenance, social security programs, etc.
In the era of pre-monopoly capitalism, the state financial system had two links - the state budget and local finance. They made it possible to form funds of funds with the help of which the state performed its functions. Under the influence of the development of productive forces, profound changes in the economy, the structure of the financial system is changing. There is an allocation and development of new financial units, the growth of their independence.
At the present stage, the state financial system in the developed foreign countries ah includes four links: the state budget; local finance; special off-budget funds and finances of state enterprises.
The leading element of public finance is the state budget. In terms of its material content, it is the main centralized fund of the state's funds.
The state budget is the main means of redistributing the national income. Up to 40% of the country's national income is redistributed through this link in the financial system. The state budget concentrates the largest revenues and the most politically and economically important national expenditures. The main financial institutions - taxes, internal loans, expenses - find an organic link in it.
The next most important financial link is the system local finance. IN modern conditions under the influence of the development of productive forces, scientific and technological progress, there is an increase in the role and influence of local authorities. The scale of the local economy, their connection and dependence on big capital, are growing, the functions of local authorities are expanding and becoming more complex. All this enhances the importance of local finance, increases their role and share in the financial system.
Local finance covers a wide group of secondary taxes (mainly property taxes), the local credit system, and special funds. The central place in this link belongs to local budgets, which are not part of the state budget and have a certain independence.
In modern conditions, this link of the financial system is increasingly used for economic purposes, to regulate economic processes. To this end, a significant part of local budget funds is directed to the development of economic and social infrastructure.
A special financial link is formed by special government funds, which have a certain independence, are separated from the state budget and are managed directly by the central, and in some cases - by local authorities. These include social insurance funds, various trust funds, as well as state and semi-state financial and credit institutions.
The initial task of these funds was to finance individual targeted activities. Subsequently, they acquire the value of a reserve, which governments resort to in cases of financial difficulties, i.e. are used to increase the agility of the financial system. Unlike state budgets, special funds are subject to much less control by parliaments, which facilitates their use and increases the interest of governments in their growth.
An independent financial link is formed by the finances of state enterprises. Its emergence is associated with the development of the public sector in the economy of a number of countries Western Europe(Great Britain, France, Italy, Germany, Austria) - a process that has become most widespread after the Second World War. Its main task is to support the private economy by preserving and developing important industries that, due to their specifics, have low profitability and are therefore unprofitable for entrepreneurship (railway, air transport, electricity, gas, coal industries, etc.). State-owned enterprises are thus an attempt to resolve the conflict between private enterprise interests and national interests. economic problems. At the same time, the finances of state enterprises are a link in the financial system, through which the state participates in the primary distribution of national income, accumulating in its hands a part of the income generated by these enterprises.
State enterprises have fixed and circulating assets assigned to them, are on self estimate and carry out legally regulated relationships with the state budget. Depending on the type of enterprise, they have varying degrees of autonomy, production and financial independence.
It should be noted that since the 1980s the role of this link under the influence of the processes of re-privatization of a significant part of the public sector is falling. This policy aims to increase the financial efficiency of state-owned economic entities, search for more intensive methods of managing and managing them.
The second sphere of the financial system of developed foreign countries is the finance of private enterprises, corporations, monopolies, which arise in the course of economic activity and ensure the process of production and profit. They materialize as money capital, various cash funds of the enterprise.
Due to the fact that the activities of enterprises are carried out on the basis of the individual circulation of capital, these monetary funds are of a separate, decentralized nature. At the same time, the state has a direct relationship with the finances of private enterprises. They are expressed in the form of collection of payments to the state budget, the formation of an amortization fund, the regulation of credit relations, the provision of state subsidies.
Private enterprises make up the vast majority of material production, they account for the main share of the generated gross domestic product and national income. Therefore, the state uses various methods (including financial ones) to stimulate the activities of these enterprises, the growth of their savings, various monetary funds associated with the acceleration of scientific and technological progress, the creation of reserves, and the improvement of the skills of workers. The state establishes a preferential regime for taxing profits, a system of accelerated depreciation, in some cases provides budget loans, and provides other forms of financial support. In turn, private enterprises through their payments participate in the formation of the revenue base of the state budget, other public funds.
In view of the foregoing, it is possible to expand the definition of the financial system.
Each link in the financial system is a specific area of financial relations, and this system as a whole is a set of various areas of financial relations, in the process of which funds of funds are formed and used.
In other words, the financial system is a system of forms and methods of formation, distribution and use of state and enterprise funds.
The budget system is one of the most important institutions of any state, the effectiveness of which has a direct impact on the quality economic growth to the level of social welfare.
The funds accumulated within the framework of the budget system constitute the financial basis for the functioning of state authorities and local self-government, which ensures the solution of tasks and the performance of functions by states and municipalities. The purpose of the functioning of the budget system is to build a socially oriented society through the distribution and redistribution of resources.
The stability of the functioning of the budget system is one of the most important indicators characterizing the stability of the economy and, above all, the state of its social sphere.
The construction of a modern budget system began in 1991 and took place against the background of serious transformations in the Russian economy, which to a large extent determined the primary tasks facing the budget system. A special place among them is occupied by the need to adapt Russian economy to market conditions management, ensuring economic stability and stimulating investment activity in the national economy.
The budgetary system of the Russian Federation is based on economic relations and the state structure and regulated by the rule of law, the totality of the federal budget, the budgets of the constituent entities of the Russian Federation, local budgets and the budgets of state non-budgetary funds.
The Russian Federation has a three-tier budget system:
- Level 1 - the federal budget and the budgets of state off-budget funds;
- Level 2 - the budgets of the constituent entities of the Russian Federation and the budgets of territorial state extra-budgetary funds;
- Level 3 - local budgets.
In unitary states, the budget system includes two links: the state budget and numerous local budgets.
One of the most significant stages in the development of the Russian budget system was the adoption in 1998 of the budget code of the Russian Federation, which established the general principles of the budget legislation of the Russian Federation and determined the legal basis for the functioning of the budget system.
Budget Code of the Russian Federation
Rice. 1.2.
The Russian budget system is unified, but at the same time, all the budgets included in it are independent and are not included in each other.
The relationship between the individual links, the organization and principles of building a budget system is usually called a budget device. Consequently, the budget device is the organization of the relationship between the links of the budget system, based on legal norms. budget device includes the structure of the budget system, budget classification, principles of construction of the budget system and budgets.
For example, the system of organization of public finances in the United States is characterized by a lack of unity. This means that each division of government (federation, states, local bodies) independently draws up and approves its own budget, develops and implements tax policy, and manages debt.
Through the budgetary system, about ½ of all funds, the entire public debt of the country, are redistributed.
Rice. 1.3.
budget device. The federal budget is of great importance in ensuring the stability of the financial system of the Russian Federation. The federal budget plays a decisive role in the implementation of the socio-economic policy pursued by the Government of the Russian Federation. Through the parameters of the federal budget, the state regulates the pace of economic development, as well as relations with the territories. The federal budget is the first level of the budget system of the Russian Federation.
The federal budget is the central link (I level) of the budgetary system, which provides funding for national tasks and functions. It is the main tool for the redistribution of GDP and national income throughout the state as a whole. It is at the federal level that the formation of the main directions of the budgetary policy pursued in the country, the substantiation of budgetary priorities, and the definition of the basic principles for building interbudgetary relations take place. The federal budget is the main financial plan of the state, approved by the Federal Assembly in the form of a federal law.
The budgets of the constituent entities of the Russian Federation (level II) include the budgets of republican, regional, territorial, autonomous regions (districts), as well as city budgets of federal cities. These budgets are intended to provide financial support for the tasks and functions assigned to the subjects of jurisdiction of the constituent entities of the Russian Federation.
There are 89 subjects in the Russian Federation, which means that there are 89 regional budgets. The regional budget should be considered the consolidated budget, which includes the regional budget and the budgets of municipalities.
The regional budget is the budget of regional authorities, i.e. regional government budget. The regional budget in its structure depends on what the region is: republic, territory, region or district.
The structure of revenues and expenditures of the budgets of the constituent entities of the Federation should be considered in conjunction with their powers in the field of budgetary relations and the distribution of revenues and expenditures between the budget of the regional authority and local budgets.
The formation of the revenue part of regional budgets occurs at the expense of three groups of income:
- tax revenues - federal taxes and fees, regional taxes and fees local taxes and fees;
- · non-tax revenues - revenues from the use of property in regional ownership, the amount of fines, confiscations and compensations;
- · gratuitous transfers - receipts from budgets of other levels, receipts from non-residents, receipts from organizations.
The Budget Code provides for a list of specific expenditures financed exclusively from the budgets of the constituent entities of the Federation:
- - ensuring the functioning of the legislative and executive authorities of the constituent entity of the Russian Federation;
- - service and repayment of the state debt of the constituent entity of the Russian Federation;
- - holding referendums in the subject of the Russian Federation;
- - ensuring the implementation of regional programs;
- - maintenance and development of institutions and organizations of housing and communal services;
- - other purposes related to the implementation of the powers of the subject of the Russian Federation.
Local budgets (budgets of municipalities) constitute the third level of the budget system of the Russian Federation. They are intended to provide financial support for the tasks and functions assigned to the jurisdiction of local governments. In accordance with federal law dated 06.10.2003 No. 131-FZ "On the general principles of organizing local self-government in the Russian Federation" since 2006, there has been a division of local budgets into budgets of two levels (types): municipal districts and urban districts, settlements.
Local budgets play an important role in socio-economic development, providing funding for preschool institutions, schools, medical and social institutions. The concepts of "local budget", "municipal budget", "budget of local governments" should be considered as synonyms.
Local budget revenues consist of:
- - from fixed income, including rental income, fines, state duties, local taxes and fees;
- - regulatory revenues, including federal taxes, taxes of the subject of the Russian Federation;
- - financial assistance, including grants, subventions, funds from the municipal support fund, funds for mutual settlements.
The sizes of municipal shares (in %) of federal taxes assigned to municipalities on a permanent basis are determined by the legislative bodies of the constituent entities of the Russian Federation.
The expenditure part of local budgets includes expenses related to:
- - dealing with issues of local importance, established by law Russian Federation and the legislation of the subject of the Russian Federation;
- - implementation of individual state powers transferred to local governments;
- - service and repayment of debt on municipal loans;
- - service and repayment municipal debt on loans.
For comparison, the composition of US local budget expenditures accounts for more than half of their total amount of expenditures related to the financing of the state tax school. In addition, a significant share of the funds is annually allocated to finance the maintenance of roads, municipal and urban services, fire protection, medical and other institutions. Sources of financing local budget expenditures include: local taxes, income from public utilities and other non-tax revenues, grants from the federal and state budgets, proceeds from the issuance of local loans and lotteries. The main source of income is local property taxes (they account for about 29% tax revenue). financial budget state loan
Local budgets in Japan are reduced without a deficit. In addition to the overall balance of the year, the real balance is taken into account, which is calculated by excluding the balance of financial resources of the previous year from the overall balance. When studying the expenditures of local authorities, it should be noted that their share in GNP is much larger than the share of central government expenditures in GNP.
The modern budget system of Russia of three levels has in a certain way approached the structure of budget systems Western countries having a federal structure.
Extra-budgetary funds are created for a fixed period or operate permanently. Their formation is associated with the need to have targeted sources of funds that are independent of the adoption or non-acceptance of the state budget. First of all, this concerns the satisfaction of such important public goods as social Security and healthcare. For the accumulation and use of these funds, the state applies specific forms and methods. In this regard, it is legitimate to single them out as an independent link in public finance. By sign targeted the use of funds, extrabudgetary funds can be combined into two groups: extrabudgetary funds for social purposes and extrabudgetary funds of an intersectoral and sectoral nature. In addition, off-budget funds for territorial purposes are formed.
In Russian reality, the concentration of significant funds (almost equal to the federal budget) in off-budget funds, with the weakening of state financial control, in a number of cases led to their inefficient use. To strengthen control over the distribution of state financial resources, a number of state off-budget funds were consolidated in the state budget, which did not apply to state special-purpose off-budget funds for social purposes: the Pension Fund, the Social Insurance Fund and the Compulsory Medical Insurance Fund.
State credit is singled out as an independent link in public finance, since it has specific forms of financial and credit relations to attract funds to the centralized funds of the state.
Under the state credit, it is customary to understand, first of all, the relations through which the state debt is formed. These relations for the temporary use of funds of legal and individuals by the state in case of insufficient state revenues to carry out the planned expenditures. The state in these relations acts as a borrower, and the persons who provided it with funds are creditors. Citizens' deposits in Savings and other banks are widely used as a source of credit resources. Legislation provides for the possibility of using these funds to finance the budget deficit. The basis of the state loan is voluntariness, repayment, payment and use at the national level in specific areas.
Functions of the state credit: fiscal, regulatory and control.
The finances of economic entities, or the finances of organizations and enterprises of various forms of ownership, are a relatively independent link in finance. It is here that the main part of income is formed, which, as a result of redistribution according to the rules established by the state, forms the income of budgets of all levels, as well as extra-budgetary funds. At the same time, a certain part of the budget (financial) funds in the form of direct budget financing, budget loans, state guarantees is directed to finance both the current and investment activities of enterprises, in accordance with the current legislation.
In the sphere of finance of economic entities, the following links are distinguished:
- finances of commercial enterprises and organizations,
- finance of non-profit organizations.
So, commercial organizations are enterprises whose main goal is to actively extract profits, in contrast to them, budgetary (non-profit) organizations do not have such a goal, although on the basis of legislation recent years they have the right to engage in entrepreneurial and other activities in order to obtain additional income in order to more fully perform their functions.
The financial relations of each of these links have specifics associated with the forms of organization of entrepreneurial activity, the formation of income and expenses, the ownership of property, and the fulfillment of obligations.
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 state structure countries 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, enterprise and household finance.
Changes in social and economic life, dynamic like the Japanese bobber, 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;
The functional purpose of 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 to meet the material and spiritual needs of an individual, family, for the state, satisfaction of public needs, social support and economic protection 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 equal to almost 42% of the 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 a specific nature various kinds 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.
