Finance expresses the monetary relations that arise. Finance as an economic category - Finance, money circulation and credit (Varlamova M.A.). Finances influence

Finance differs from money both in content and in the functions performed. Money is a universal equivalent, with the help of which the labor costs of associated producers are primarily measured, and finance is an economic instrument for the distribution and redistribution of gross internal product(GDP) and national income, a tool for controlling the formation and use of funds.

Their main purpose is to ensure, through the formation of cash income and funds, not only the needs of the state and enterprises for funds, but also control over the expenditure of financial resources.

Finance expresses the monetary relations that arise between: enterprises in the process of acquiring inventory, selling products and services; enterprises and higher organizations when creating centralized funds and their distribution; the state and enterprises when they pay taxes to the budget system and finance expenses; by the state and citizens when they make taxes and voluntary payments; enterprises, citizens and extra-budgetary funds when contributing and receiving resources; individual parts of the budget system; insurance organizations and enterprises and the population in the payment of insurance premiums and compensation for damage upon the occurrence of an insured event, as well as monetary relations mediating the circulation of enterprise funds.

The main material source of monetary funds is the country's national income - the newly created value or the value of the gross domestic product minus the tools and means of production consumed in the production process.

Without the participation of finance, national income cannot be distributed. Finance is an integral link between the creation and use of national income. Finance affects production, distribution and consumption and is objective in nature. They express a certain area industrial relations and belong to the basic category.

Finance and financial resources are not identical concepts. Financial resources in themselves do not determine the essence of finance, do not reveal their internal content and social purpose. Financial science studies not resources as such, but social relations that arise on the basis of the formation, distribution and use of resources; it explores the patterns of development of financial relations.

Finance is primarily a distribution category. With their help, secondary distribution or redistribution of national income is carried out.

In the 1960-1990s of the current century, the share of national income redistributed through all parts of the financial system increased sharply: from 9-18% on the eve of the First World War, to 35-50% or more today.

The socio-economic essence of financial relations lies in the study of at whose expense the state receives financial resources and in whose interests it uses these funds.

Determining the conditions for systematic management of the process of creation, distribution, redistribution and use of monetary resources involves studying the possibilities of correlating and adjusting the content of specific plans and the specific external economic situation.

As part of the study of finance, money circulation and credit, it is expected to consider the levels of interaction of financial plans based on an analysis of the financial and financial indicators contained in them. economic activity. At the same time, the condition for effective practical use of a system of interconnected financial plans is the quality of financial planning in the management system.

Determining the conditions for the implementation of the enterprise management process that is adequate to the modern economic situation on the basis of coordinating the planning of the economic activity of the enterprise in general and its financial activities in particular, involves considering the functioning of enterprise management.

The conditions for the implementation of planned financial actions are determined by the extent to which planning meets the interests of the practical activities of the enterprise, which is determined by the degree of coordination of the planned and actual actions of the enterprise with the development economic processes. To get a holistic view of this issue It is necessary to dwell in more detail on the consideration of the financial management process of an enterprise.

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3. 1. Socio-economic essence and functions of finance
THE ESSENCE AND FUNCTIONS OF FINANCE IN A MARKET ECONOMY AND THEIR IMPACT ON THE FORMATION OF CAPITAL OF ENTERPRISE STRUCTURES

Finance is one of the most important economic categories, reflecting economic relations in the process of creating and using funds.

Reducing finance to cash is illegal, because in fact it means certain transactions with money, their movement. Any financial transaction involves the movement of funds between economic entities, users of funds, or the movement of funds into certain funds. In the process of this movement, economic relations arise (for example, when paying pensions, paying taxes). Thus, finance is an economic category; it expresses part of economic relations.

Finance is an integral part of monetary relations, therefore their role and significance depend on the place monetary relations occupy in economic relations. However, not all monetary relations express financial relations. Finance differs from money both in content and in the functions performed. Money is a universal equivalent, with the help of which, first of all, the labor costs of associated producers are measured, and finance is an economic instrument for the distribution and redistribution of gross domestic product and national income, an instrument for controlling the formation and use of funds of funds.

The opinion that only the budget and its formation should be classified as finance is erroneous, because in addition to the area of public finance, there are many relations that are not related to the formation of the state budget; there are also relations in the formation of funds at the enterprise.

When participating in economic relations, finance interacts with various economic categories, therefore it is necessary to determine the boundaries of financial relations, i.e., which instrument, which economic operation belongs to the financial sphere. To determine the boundaries of financial relations, you need to find features finance, inherent only in financial relations and reflecting their specificity.

Let's look at them:

Finance is a monetary category (related to funds). Although during the period of war communism there was a surplus appropriation system, taxes were paid in kind. And now at the regional level, payments to the budget come from part of the production of an enterprise that works for “black cash” or through barter. These relationships are not financial.

Finance is not concerned with any form of cash flow. There are two main forms - exchange and distribution.

Exchange is when the monetary form is replaced with a commodity form, or the monetary form moves towards the commodity equivalent. During distribution, only the cash equivalent moves, and only unilaterally, although the return of funds after a certain time is allowed. Finance is concerned only with distribution.

Distribution carried out with the help of finance is associated with the concepts of “financial resources” and “monetary funds”. Distribution occurs through the formation and use of monetary funds, i.e. finance uses the fund method of distribution.

distribution of financial resources through the formation and use of funds on a non-equivalent basis.

Finance expresses the monetary relations that arise between:

· enterprises in the process of acquiring inventory, selling products and services;

· enterprises and higher organizations when creating centralized funds of funds and their distribution;

· the state and enterprises when they pay taxes to the budget system and finance expenses;

· by the state and citizens when they make taxes and voluntary payments;

· enterprises, citizens and extra-budgetary funds when making payments and receiving resources;

· individual parts of the budget system;

· property and personal insurance bodies, enterprises, the population when paying insurance premiums and compensation for damage, upon the occurrence of an insured event;

· monetary relations mediating the circulation of enterprise funds.

A modern economy cannot exist without public finance. At certain stages historical development a number of society's needs can only be financed by the state. These are the nuclear industry, space research, a number of new priority sectors of the economy, as well as enterprises that are necessary for everyone (mail, telegraph and some others).

Finance reflects the level of development of productive forces in individual countries and the possibility of their influence on macroeconomic processes in economic life.

Finance is a monetary relationship that arises in the process of distributing the gross social product in connection with the formation of cash income from business entities and the state and its use for expanded reproduction, stimulation of workers, satisfaction of social and other needs of society. Finance differs from wages, other income, and credit in that finance is an unequal relationship; it expresses a one-way movement of value (salary is a two-way movement; credit is a repayable relationship).

Financial resources are provided free of charge and without return. With the help of finance, various state and public needs are satisfied:

· education

military needs

· expenses for social purposes

· improvement of capital reproduction

· security environment etc.

The main material source of monetary funds is the country's national income - newly created value or the value of the gross domestic product minus the tools and means of production consumed in the production process. Without the participation of finance, national income cannot be distributed. Finance is an integral link between the creation and use of national income. Finance affects production, distribution and consumption and is objective in nature. They express a certain sphere of production relations and belong to the basic category.

In terms of its material content, finance is a trust fund of funds, which together represent the financial resources of the country. The main condition for the growth of financial resources is an increase in national income. Finance and financial resources are not identical concepts. Financial resources in themselves do not determine the essence of finance. Their internal contents and public purpose are not disclosed. Financial science studies resources as such, and social relations arising on the basis of the formation, distribution and use of resources; it explores the patterns of development of financial relations.

Although finance belongs to the basic category, it largely depends on the financial policies pursued by governments.

Branch of the Russian State Social University in Cheboksary

Specialty "Finance and Credit"

Test

In the discipline "Finance"

Cheboksary-2011

Introduction

The term finance comes from the Latin word financia, meaning income, payment in a transaction. The word first began to be used in the trading cities of Italy in the 13th-15th centuries. Later they began to denote monetary relations.

Finance represents economic relations associated with the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction. Finance is an integral part of monetary relations, therefore their role and significance depend on the place monetary relations occupy in economic relations. However, not all monetary relations express financial relations. Finance differs from money, both in content and in the functions performed. Money is a universal equivalent, with the help of which, first of all, the labor costs of associated producers are measured, and finance is an economic instrument for the distribution and redistribution of gross domestic product and national income, an instrument for controlling the formation and use of funds of funds.

Their main purpose is to provide, through the formation of monetary funds, not only the needs of the state and enterprises for funds, but also control over the expenditure of financial resources. Finance expresses the monetary relations that arise between enterprises in the process of acquiring inventory, selling products and services; enterprises and higher organizations when creating centralized funds and their distribution; the state and enterprises when they pay taxes to the budget system and finance expenses, the state and citizens when they make taxes and voluntary payments; enterprises, citizens and extra-budgetary funds when making payments and receiving resources; individual parts of the budget system; insurance organizations and enterprises and the population when paying insurance premiums and compensation for damage upon the occurrence of an insured event. Finance is an integral link between the creation and use of national income. Finance affects production, distribution and is objective in nature (ND - newly created value or value gross product minus the tools and means of production consumed in the production process). Finance is, first of all, a distribution category. With their help, secondary distribution and redistribution of national income is carried out. The socio-economic essence of financial relations lies in the study of at whose expense the state receives financial resources and in whose interests it uses these funds.

Finance: emergence, evolution, essence, place in the system of financial relations

Finance appeared simultaneously with the emergence of the state during the stratification of society into classes. With the decomposition of feudalism and the development in its depths of the capitalist mode of production, monetary income and expenses of the state began to acquire increasing importance.

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.

With the allocation of the state treasury and its complete separation from the property of the monarch (XVI-XVII centuries), the concepts of public finance, state budget, and state credit arise.

Public finance served as a powerful lever for the initial accumulation of capital.

Government loans and taxes were widely used to create the first capitalist enterprises. An important role in the creation of initial capital belonged to the system of protectionism, which allowed the first capitalists to set high prices for manufactured industrial products and receive high profits, which were largely used to expand production.

Under capitalism, finance expresses economic relations in connection with the formation, distribution and use of funds of funds in the process of distribution and redistribution of national income.

Public finances in capitalist countries are characterized by rapid growth in expenditures, which is primarily due to the increased militarization of the economy. Military purposes, repayment of public debt and interest on it accounted for more than 2/3 of all government spending. Huge funds were allocated for the maintenance of the state apparatus - parliament, ministries, departments, police, prisons, etc. Expenditures on education and health care were extremely small. The main source of income was taxes.

By the beginning of the 20th century. the state began to participate in the process of production, distribution and use of the social product.

State intervention in the economy has developed significantly. It began to actively help its country's monopolies in intense competition in the world market, providing export firms with so-called export bonuses.

Intervention in the process of reproduction and the sphere of social relations is carried out not only at the national, but also at the interstate level.

Interstate funds of funds were created. New government spending has appeared.

Huge expenses necessitate an increase in taxes - the main financial method of mobilizing resources into state and local budgets.

Financial development. The emergence and development of finance is due to factors such as:

) social division of labor and division of society into social groups;

) development of commodity-money relations in connection with the growth of production and an increase in GDP and income, as well as changes in the functions of money and the mechanism of its circulation;

) the emergence of independent, independent business entities carrying out entrepreneurial activities and creating the necessary funds for production;

) creation and complication of the sphere of state activity.

Finance how scientific concept are usually associated with processes of various forms that manifest themselves in public life and are necessarily accompanied by the movement of funds (distribution of profits, transfer of tax payments, making extra-budgetary and charitable payments).

Cash flow in itself does not reveal the essence of finance. To comprehend it, it is necessary to identify those general properties that characterize the internal nature of all financial phenomena - the relationships between various participants in social production.

Finance, expressing production relations that actually exist in society, having an objective nature and a specific social purpose, acts as an economic category.

An important feature of finance is the monetary nature of financial relations. Money is a prerequisite for the existence of finance.

The next feature of finance as an economic category is the distributive nature of financial relations.

The distribution and redistribution of value with the help of finance is necessarily accompanied by the movement of funds, taking a specific form of financial resources, which are formed by business entities and the state at the expense of various types cash income, deductions and receipts, and are used for expanded reproduction, material incentives for workers, and satisfaction of various needs of society.

Potentially, financial resources are formed at the production stage, when new value is created and old value is transferred. In reality, the formation of financial resources begins only at the distribution stage, when the value is realized and specific economic forms of the realized value are identified as part of the proceeds.

Financial relations are always associated with the formation of cash income and savings, which take the form of financial resources. This is important specific sign finance, distinguishing them from other distribution categories.

So, finance is the monetary relations that arise in the process of distribution and redistribution of the value of the gross social product and part of the national wealth in connection with the formation of cash income and savings among business entities and the state and their use for expanded reproduction, material incentives, satisfaction of social and other needs of society.

The essence of finance, the patterns of its development, the scope of commodity-money relations covered by it and its role in the process of social reproduction are determined by the economic system of society, the nature and functions of the state.

In the early stages of the development of society, when goods (livestock, salt, and later metals) acted as money, there was an equivalent exchange of goods. The function of money is a means of payment, and on its basis the appearance of credit money and signs of value creates conditions when goods and real money do not meet in exchange not only in time, but also in space. At the same time, unequal exchange increases, and sometimes the exchange of values is disrupted altogether. Speculation in the commodity, money, and foreign exchange markets leads to a redistribution of GDP and income. Similar relationships arise in the functioning of finance.

Finance, being an instrument of the second stage of social reproduction, can influence all stages of reproduction and the process as a whole.

Objective prerequisites for influence are associated with two circumstances:

) finance functions in all spheres of social production (production, circulation, consumption);

) finance can be a catalyst for economic processes (which follows from the distribution function).

Distribution begins in the sphere of material production; this sphere influences the nature and scale of production.

Scope of circulation. It is characterized by buying and selling processes. The consumer properties of a product do not change, its cost changes. The product is sold, and the enterprise receives revenue; this revenue is distributed among compensation, accumulation, and consumption funds. Financial relations precede and complete the buying and selling process.

The sphere of consumption highlights:

) commercial organizations;

) budgetary organizations.

Now there are mixed-type organizations where commercial structures allocate money for budgetary organizations. The conscious use of finance in the interests of society and its individual elements transforms finance from an objective economic category into an economic management tool.

An economic instrument is an economic category embodied in specific forms of manifestation and consciously used by society to achieve specific goals. An economic instrument, including finance, has 2 principles: the first is objective (arising from the economic category), the second is subjective (a tool for implementation economic policy states). Financial influence:

) quantitative (characterized by the proportions of the distribution process);

) qualitative (characterized by the impact of finance on the material interests of business entities).

The qualitative side of influence is characterized by proportions in the distribution process; reflects the impact of finance on the material interests of business entities through various forms of organizing financial relations; influences the social product and is associated with the transformation of finance into a stimulus for economic development. Such a transformation is possible when the procedure for generating income, the conditions and principles for the formation of funds, and the directions for their use can be closely linked with the economic interests of business entities.

An economic incentive is an instrument that is associated with the material interests of business entities. The conscious use of finance in social production leads to results that demonstrate the active role of finance in social production under market conditions.

Functions of finance as a manifestation of essence. Public purpose of finance

finance attitude

The essence of finance as a special sphere of distribution relations is manifested, first of all, through the distribution function. This function implements the social purpose of finance - providing each business entity with the necessary financial resources. Here, the primary distribution of newly created value and the formation of primary income on its basis: profit, social insurance charges, etc.

The distribution function of finance serves the reproduction process as a whole, actively influencing all its stages. At the same time, the distribution function allows enterprises to create funds for special purposes necessary to meet the needs of developing production and material incentives for workers.

The distribution function of finance is that:

through the distribution and redistribution of newly created value, national needs are met, sources of financing for the public sector of the economy are formed, and a balance of budgets and extra-budgetary funds is achieved within the framework of the unified budget system of the Russian Federation;

the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.

The main objects of implementation of the distribution function of finance are mandatory payments to the budget and extra-budgetary funds, as well as sources of financing the budget deficit. The process of redistribution of income between different levels of budgets plays a special role.

Another equally important function of finance is control, which is based on the movement of financial resources. Because finance permeate all social production, all its spheres and divisions, all levels of management, they act as “a universal instrument of control on the part of society over the production, distribution and circulation of the total social product.” The instrument for implementing the control function of finance is financial information. Financial information allows you to see various aspects of the work of enterprises and evaluate the results economic activity and on this basis take measures aimed at eliminating the identified negative aspects.

The control function does not operate in isolation, but in close unity with the distribution function. The combination of these functions allows us to fully reveal the economic essence of finance. IN real life There are no financial relations that are only distributive in nature and do not have a control function. At the same time, there are no financial relations that would have the property of control and are not distributive. In their unity and close interaction, finance can manifest itself as a category of cost distribution.

The control function of finance is to implement ruble control over real money turnover, of which the state is a participant, and the formation of centralized funds of funds. Ruble control has two forms:

control over changes in financial indicators, the status of payments and settlements;

control over the implementation of the financing strategy.

In the first case, a system of sanctions and rewards is applied, using coercive or incentive measures. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to anticipating changes and adjusting the order and conditions of financing to them in advance. Constant changes and updates in the financial system require an adequate response to this from all branches of government.

The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an extra-budgetary fund, an enterprise or institution, etc.

The control function of state and municipal finances is implemented in the following main areas:

) control over the correct and timely transfer of funds to centralized funds;

) monitoring compliance given parameters centralized funds of funds taking into account the needs of industrial and social development;

) control over the targeted and effective use of financial resources.

Many modern economists highlight other functions of finance. They are subjective in nature and serve as management tools.

The regulatory function is closely related to state intervention through finance in the reproduction process.

The stimulating function of state and municipal finance is to ensure the development of various spheres of public life through a system of benefits and economic programs.

The fiscal function of finance is associated with supporting unprofitable but necessary sectors of the economy. It is carried out using many methods and techniques (investing, taxation, imitation, etc.).

From all of the above, we can conclude that finance is an integral part of monetary relations and plays a huge role in the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction. We can also say that finance is objectively necessary, as it is determined by the needs of social development.

Financial relations on modern stage. Types of financial relations

All financial relations distribute GDP and ND; participate in the formation of funds and funds and their use. All financial relations control and regulate the distribution process.

IN general population financial relations can be distinguished into three large areas: finance of enterprises, institutions and organizations; insurance; public finances. Within each of these spheres, links are distinguished. The grouping of financial relations is carried out depending on the nature of the subject’s activities, which has a decisive influence on the composition and purpose of target funds.

Different parts of the financial system serve different types financial distribution: intra-economic - enterprise finance; intra-industry - finance of enterprises, complexes, associations; intersectoral and interterritorial - by the state budget, extra-budgetary funds.

Each link of the financial system is divided into sub-links in accordance with the internal structure of the financial relationships it contains. Thus, the finances of enterprises, depending on the sectoral focus, can include the finances of industrial, agricultural, trading enterprises, etc., and depending on the form of ownership - the finances of state-owned enterprises, cooperative, joint-stock, private, etc.

The financial system of the Russian Federation includes the following links of financial relations: state. budget, extra-budgetary funds, state. credit, property and personal insurance funds, stock market, finance of enterprises of various forms of ownership.

Financial relations are distributive in nature, and the distribution of value is carried out primarily among subjects. The latter form funds for special purposes depending on the role they play in social production. It is the role of the subject in social production that acts as an objective criterion for the classification of financial relations. In accordance with it, in the totality of financial relations, three large interconnected areas are distinguished: finances of economic entities (enterprises, organizations, institutions), insurance, and public finances. Depending on the nature of the activities of the subjects within each of these spheres, various links can be distinguished. Each link performs its own tasks and has its own structure of the financial apparatus, but together they form the financial system of the state.

The main task of financial relations is the concentration of financial resources at the disposal of the state and their direction to finance social, managerial, law enforcement, military and production functions. They are formed mainly from tax, customs and other payments, as well as income received from the placement of state financial resources and from the sale of government securities, from the sale of state property or from leasing it.

At the organizational level, financial relations can be grouped into the following groups:

a) financial relations with the state are represented by the relations of enterprises with budgets of various levels and extra-budgetary funds regarding the payment of taxes, fees and other obligatory payments; with tax and other competent authorities regarding monitoring the correctness and timeliness of tax payments, regarding government orders and public procurement, regarding subsidies, subventions, etc. This type of financial relationship is characterized by strict legislative regulation;

b) financial relations<#"justify">1.Drobozina L.P. Finance. Money turnover. Credit / L.A. Drobozina, L.P. Okuneva, L.D. Androsova and others - M.: "Perspective", 2007. - 477 p.

2.Kovaleva A.M. Finance / A.M. Kovaleva, N.P. Barannikova, V.D. Bogacheva. - M.: Finance and Statistics, 2008. - 384 p.

.Mamedov O.Yu. Modern economics. / O.Yu. Mamedov, Rostov-on-Don:, "PHOENIX", 2006 - 608 p.

.Polyakova G.B. Finance. 3rd ed., revised. and additional - M.: Unity-Dana, 2008. - 703 p.

.F.N. Emelyanova. Finance (Fundamentals of finance theory. State and municipal finance) / Tutorial. Cheboksary - 2007.- 238 p.

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enterprises in the process of acquiring inventory, selling products and services;

enterprises and higher authorities, when creating centralized funds of funds and their distribution;

the state and enterprises when they pay taxes to the budget;

the state and citizens when they make taxes and other payments;

enterprises and citizens and extra-budgetary funds when they make payments and receive resources;

individual parts of the budget system;

property and personal insurance authorities, enterprises and the population, when paying insurance premiums and compensation for damage upon the occurrence of an insured event.

The essence of finance is manifested in its functions, and finance perform 2 main functions: distribution and control.

The distribution function manifests itself in the distribution of ND (national income), when the creation of so-called primary funds occurs. Their sum is equal to ND. Primary income is formed by distributing income among participants in material production. They are divided into 2 groups:

wages of workers, employees;

The essence and role of the state budget are determined by the method of production and the functions of the state. The essence of the state budget is revealed most fully in 3 directions:

1. The budget is the main financial plan of the state.

2.The budget is the largest centralized monetary fund of the country.

3. The budget is an expression of economic monetary distribution relations, i.e. It is part of the financial system and represents centralized finance.

Budget objectives include:

Formation of a budget fund (budget revenues).

Use of the budget fund (budget expenses).

Control.

The state budget system of the Russian Federation includes three parts:

federal budget;

budgets of the subjects of the federation;

local budgets.

All these budgets function autonomously. Fixed funds are concentrated in the federal budget.

The federal budget is the leading link in the budget system Russian Federation, which combines the main financial categories (taxes, government credit, government spending).

The federal budget is the main financial plan of the state for the financial year, which has the force of law after its approval by the Federal Assembly (Parliament) of the Russian Federation.

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