Financial relations include monetary relations about. Comparison of financial and monetary relations. P7. what is the financial resources of society
FINANCIAL SYSTEM
1.1. The concept, essence and functions of finance
What is finance?
Finance- this is a set of monetary relations organized by the state, in the process of which the formation and use of national funds of funds for the implementation of economic, social and political tasks is carried out.
Finance is an integral part of monetary relations. It is an economic tool for the distribution and redistribution of gross domestic product (GDP) and national income, an instrument for controlling the formation and use of funds Money. Finance reflects the level of development of productive forces in individual countries and the possibility of their impact on macroeconomic processes in economic life.
What are the prerequisites for the emergence of finance?
In Central Europe, as a result of the first bourgeois revolutions, the power of the monarchs was significantly curtailed, and the head of state was torn away from the treasury. There was a national fund of funds - the budget, which the head of state could not use alone.
The formation and use of the budget has become systemic. There were systems of state revenues and expenditures with a certain composition, structure and legislative consolidation. Four groups of expenses were allocated: for military purposes, management, economy, social needs. In Russia, the latter trend arose at the end of the 19th century.
Transition to the monetary form of taxation. With the development of capitalism, the influence of the state on the economy increases, which is accompanied by the development of the system of public finances. In addition, there are various kinds of financial intermediaries that accumulate and redistribute the free funds of entrepreneurship and the monetary savings of the population.
What are the stages in the development of finance?
There are two main stages in the development of finance.
An undeveloped form of finance. The bulk of the money was spent on military purposes and had virtually no impact on the economy. Finances were non-productive in nature. The financial system consisted of one link - the budgetary one, the number of financial relations was limited.
Multi-link financial systems, high degree of impact on the economy, a wide variety of financial relations. Finance is becoming one of the most important tools for indirectly influencing the relations of social reproduction: the reproduction of material goods, work force and industrial relations.
Finance is currently at this stage of development.
What are the characteristics of finance?
The salient features of finance are:
the distributive nature of relations, which is based on legal norms or business ethics, is associated with the movement of real money, regardless of the movement of value in a commodity form;
unilateral (unidirectional), as a rule, the nature of the cash flow;
creation of centralized and decentralized funds of funds.
What kind monetary relations relate to financial relationships?
monetary relations between two entities, one of which is endowed with special powers (the state);
in the process of monetary relations, a nationwide fund of funds was formed - the budget. These relations were stock in nature;
the regular flow of funds to the budget could not be ensured without giving taxes, fees and other payments of a state-compulsory nature, which was achieved through the legal rule-making activities of the state, the creation of an appropriate fiscal apparatus.
What is a financial system?
Financial system represents a combination of various spheres of financial relations, each of which is characterized by features in the formation of funds of funds, a different role in social reproduction.
Financial system- this is a form of organization of monetary relations between all subjects of the reproduction process for the distribution and redistribution of the total public product. In the process of distributing the value of the total social product among the subjects economic relations various funds of monetary income and savings are accumulated.
The financial system of the Russian Federation includes the following links of financial relations, which can be divided into two subsystems:
1) national finances:
the state budget;
off-budget funds;
state credit;
insurance funds;
stock market;
2) finances of business entities:
State;
joint-stock;
rental;
public.
municipal;
What are centralized and decentralized cash funds?
Centralized cash funds are created by distributing and redistributing the national income created in the branches of material production. These include:
the state budget;
off-budget funds.
Decentralized Funds of Cash formed from cash income and savings of the enterprises themselves and the population. They are the basis of the financial system, since it is in this area that the predominant share of the state's financial resources is formed. Some of these resources are redistributed, in accordance with the norms of financial law, to budget revenues at all levels and to extra-budgetary funds. At the same time, a significant part of these funds is subsequently directed to finance budgetary organizations; commercial organizations in the form of subventions, subsidies, and is also returned to the population in the form of social transfers (pensions, allowances, scholarships, etc.).
Among decentralized finance, the key place belongs to the finance of commercial organizations. Here material goods are created, goods are produced, services are provided, profit is formed, which is the main source of production and social development society.
What is financial policy?
financial policy is a set of state measures aimed at mobilizing financial resources, their distribution and use for the state to perform its functions. This is an independent sphere of activity of the state in the field of financial relations.
development of a general concept of financial policy, determination of its main directions, goals and main tasks;
creation of an adequate financial mechanism;
management of the financial activities of the state and other economic entities.
Goals the financial policy of the enterprise can be:
the survival of the enterprise in a competitive environment;
avoiding bankruptcy and major financial failures;
leadership in the fight With competitors;
maximization of the market value of the enterprise;
sustainable growth rates of the economic potential of the enterprise;
growth in production and sales volumes;
profit maximization and cost minimization;
ensuring profitable activities, etc.
The basis of financial policy is formed by strategic directions that determine the long-term and medium-term prospects for the use of finance and provide for the solution of the main tasks arising from the peculiarities of the functioning of the country's economy and social sphere.
What are the objectives of financial policy?
There are the following objectives of financial policy:
providing conditions for the formation of the maximum possible financial resources;
establishment of a rational distribution and use of financial resources from the point of view of the state;
organization of regulation and stimulation of economic and social processes by financial methods;
Development of a financial mechanism and its development in accordance with the changing goals and objectives of the strategy;
Creation of an effective and maximally business-like financial management system.
the main task financial policy along with the provision of appropriate financial resources, the implementation of this or that state program of economic and social development - to prevent social tension in society. Overcoming the decline in production, increasing the social protection of the population - these are the primary tasks facing the modern financial policy of Russia.
What is fiscal policy?
Under the budget politics understand the definition of the state:
sources of formation of state budget revenues;
priority directions of state budget expenditures;
admissible limits of imbalance of the budget;
The principles of the relationship between the various parts of the budget system.
Fiscal policy usually includes the following types political impact:
Tax policy;
Investment policy;
The policy of public debt management and fiscal federalism.
What is monetary policy?
Under monetary policy understand ensuring the stability of monetary circulation through:
Emission management, regulation of inflation and the exchange rate of the national currency;
ensuring the timeliness and continuity of settlements in the national economy and various parts of the financial system through the regulation of the banking system;
Managing the activities of financial markets through the regulation of the issue of securities and the determination of their profitability.
What is tax policy?
Tax policy finds its embodiment in the construction of a particular tax system. Tax systems in the developed countries of the world are characterized by a variety of types of taxes and objects of taxation, as well as the nature of the relationship between taxpayers and tax authorities.
The main principles of building tax systems in Western countries include:
horizontal (legal entities and individuals in equal conditions must pay the same taxes) and vertical equality (the rich pay proportionately larger amounts than the poor);
tax neutrality;
ease of tax collection for the government;
minimal destimulating effect from the introduction of one or another
Difficulty in tax evasion.
What is a financial mechanism?
Financial mechanism of enterprises is an enterprise financial management system designed to organize the interaction of financial relations and funds of funds in order to effectively influence the final results of production established by the state in accordance with the requirements of economic laws. This is a system of financial leverage, expressed in the organization, planning, stimulation and use of financial resources.
The structure of the financial mechanism includes 5 elements:
- financial method- this is a way of influencing financial relations on the economic process (taxation, insurance, investment, planning, forecasting, etc.);
financial leverage- this is the reception of the financial method (profit, income, depreciation, rent, exchange rates, interest rate, value of securities, etc.);
legal support(laws, decrees, resolutions, orders of ministries and other documents of governing bodies);
regulatory support(instructions, standards, guidelines and other documents issued by the Ministry of Finance of the Russian Federation, the Ministry of Taxes and Duties, the State Customs Committee of the Russian Federation, etc.);
Information Support(a database containing legal and regulatory information, rating agencies compiling and publishing ratings of enterprises, banks, organizations).
What is a financial market?
Financial market- a special form of monetary transactions, where the object of sale and purchase is the free cash of business entities, the state and the population. It is an institution that links lenders and borrowers by borrowing money from lenders and lending it to borrowers.
It is an organized system for trading financial instruments.
Elements of the financial market structure:
loan capital market- a system of relations that ensure the accumulation of temporarily free financial resources and their redistribution between enterprises and investors;
stocks and bods market- Regulator of the money supply. Carries out the whole complex of capital movements in the economy;
insurance market- a set of redistributive relations between participants at the expense of contributions to the target insurance fund intended to compensate for damage;
currency market- the sphere of economic relations for the sale and purchase of foreign currency and payment documents.
What does the foreign exchange market include?
Currency market is a market in which the goods are objects that have a currency value. Currency values include: foreign currency (banknotes and funds on accounts in monetary units of a foreign state, international or settlement monetary units);
securities (checks, bills of exchange), stock values (shares, bonds) and other debt obligations denominated in foreign currency;
Precious metals (gold, silver, platinum, palladium, iridium, rhodium, ruthenium, osmium) and natural gems (diamonds, rubies, emeralds, sapphires, alexandrites, pearls).
As subjects (participants) of the foreign exchange market are: banks, stock exchanges, exporters and importers, financial and investment institutions, government organizations.
The object of the currency market (to whom the actions of the subject are directed) is any financial requirement indicated in currency values. Objects of the foreign exchange market are bought and sold by subjects of the foreign exchange market for the money in circulation.
What is the securities market?
On the securities market both securities themselves and their substitutes (certificates, coupons, etc.) are issued, circulated and absorbed.
Participants in the securities market can be divided into three groups:
issuers- persons issuing securities in order to raise the funds they need;
investors- persons who buy securities in order to obtain income, property and non-property rights;
intermediaries- persons providing services to issuers and investors to achieve their goals.
Depending on the timing of transactions with securities, the securities market is divided into:
spot market, when the exchange of securities for cash is carried out practically at the time of the transaction .;
futures market, where futures contracts are traded.
In addition, the timing distinguishes:
-short-term securities market- a segment of the securities market where securities with a term of less than one year are placed and circulated. It represents the main part of the capital market. Short-term securities, for the most part, are simultaneously payment and settlement or credit instruments (bills, checks). There are and purely short-term securities - short-term debt obligations of the state;
-long-term securities market- a segment of the securities market where securities with a term of at least one year are placed and circulated. It represents the main part of the capital market.
The securities market, in turn, is divided into:
-primary securities market, where first-issued securities are sold. Mandatory participants in this market are issuers of securities and primary investors. The purpose of primary markets is to attract additional financial resources required for investment in production and other types of costs;
1 secondary securities market, on which previously issued securities are traded. In this case we are talking about their resale. Secondary securities markets are designed not to attract additional financial resources, but to redistribute existing resources in accordance with the needs of market participants. At the same time, speculators are active in the secondary securities market, pursuing the goal of making profit from operations in financial markets. The existence of a secondary securities market stimulates the activity of the primary market.
Depending on the forms of organization of transactions with securities, one can distinguish:
organized markets, the basis of which is exchanges (specially created institutions for the organized and systematic sale and resale of issued financial instruments);
unorganized markets- a system of dispersed intermediary offices that trade in financial instruments. In the unorganized markets, most initial placements of securities take place, as well as trading in securities (bonds and shares) of unlisted companies.
What are the types of the securities market?
forward market, whereby the parties agree to deliver the securities they actually hold for final settlement by a specified date in the future.
futures market, where contracts are traded for delivery at a specified time in the future of securities or other financial instruments actually traded on the financial market.
option market, where contracts are bought and sold with the right to buy or sell certain financial instruments at a predetermined price before its expiration date. The predetermined price is called the strike price of the option.
Swap market is a market for direct exchanges of contracts between participants in a securities transaction. It guarantees them the mutual exchange of two financial obligations at some point in the future.
stock market- the sphere of circulation of securities in specially created financial institutions for the organized and systematic sale and resale of securities. These institutions are called stock exchanges.
OTC securities market- a system of large trading platforms that trade in many types of securities,
Simple Auction Market typical for undeveloped exchange and over-the-counter stock markets. In such a market, prior to trading, a preliminary collection of bids for sale takes place, and a consolidated quotation sheet is compiled. The auction takes place by sequential public announcement of the list of proposals, for each of which there is a public competition (according to a certain scheme) of buyers by assigning new prices. The starting price is the seller's price.
Dutch auction. There is a preliminary accumulation of bids of buyers of certain securities. The issuer or its intermediaries, through analysis, establish a single official price, the so-called cut-off price, which is equal to the lowest price in bids for the purchase, which allows selling the entire issue. That is, the sum of orders at this price and all prices above it covers the entire issue. All purchase orders submitted at prices higher than the official ones are satisfied at the official price.
Oncol markets. Prior to the start of trading, there is an accumulation of bids for purchase and offers for sale, which are then ranked by price proposals, sequence of receipt and quantity. In this order, they are satisfied. According to certain rules, the official rate is set at which the largest number of applications and proposals can be satisfied. The remaining positions form a list of unrealized bids and offers (this is how stock exchanges work).
Continuous auction markets. There is no fixed date for the start of trading. The flow of bids for purchase and offers for sale is continuously registered by the specialists of the exchange. Incoming applications are compared with those received earlier, if their positions coincide, they are satisfied in the order of receipt and by the largest amount of the order. If the order cannot be executed, then the applicant either changes the conditions or is placed in the queue of unfulfilled orders. A continuous auction market is possible only with significant volumes of daily securities supply (more than 10,000 lots daily).
dealer markets. Sellers publicly announce bid prices and procedures for accessing places to purchase securities. Buyers who agree with price offers declare their intentions and purchase securities. What is a security?
security paper- this is a specially designed document expressing property relations between the parties, confirming the right of its owner to any property or its monetary equivalent.
A security is a property title that gives its owner the right to receive income in the form of dividends and interest. Securities include:
-stock;
bonds corporations and the state. Bond- this is an issuance security that secures the holder's right to receive bonds from the issuer for the period provided for by them at face value and a fixed percentage of this value, i.e. bonds are debt obligations expressing loan relationships. At present, government securities (GKO, OFZ, etc.) dominate the stock market in Russia;
bill of exchange- a security that defines a loan relationship. The bill contains an unconditional obligation to pay the borrower the amount specified in it;
-mortgage-backed securities (mortgage bonds)- securities reflecting the ratio of collateral. Mortgage-backed securities certify the right to receive monetary obligations secured by property mortgages;
-derivative securities, certifying the owner's right to purchase (sell) securities issued by a third party within the terms and conditions specified in the certificate and the decision to issue these derivative securities.
There is the following classification of securities:
registered securities, upon registration of which information about the owner is entered in a special register;
bearer securities can be transferred to other persons without personal identification;
term securities with a specific maturity;
perpetual securities - do not contain a specific maturity;
documentary securities - the owner is established on the basis of presentation of a issued certificate;
book-entry securities - the owner is established on the basis of an entry in the register;
government securities - issued by the federal government;
securities of the subjects of the federation - are issued by the subjects of the federation;
municipal securities - issued by local authorities;
corporate securities - issued by enterprises and organizations.
The procedure for issuing securities is called an issue.
Securities can be:
issuance - placement requires an issue prospectus and registration of the issue by regulatory authorities;
non-issue-placement does not require a prospectus.
Only those rights to resources that meet the following fundamental requirements are recognized as securities:
negotiability (the ability to be bought and sold on the market);
availability for civil circulation (i.e., the ability to act as an object of civil transactions - a loan, donation, storage, commission, order);
standardization and seriality (to have a standard form, content);
documentary (contain all mandatory details provided by law);
regulation and recognition by the state;
liquidity (the ability to convert into money);
What is a share?
Promotion is an issuance security, indicating the introduction of a share in the capital of a joint-stock company, giving the right to control by voting, to receive income from the activities of the company, to a share in the equity of the joint-stock company. According to the method of registration are distinguished:
registered shares- provide for the designation of the name of the owner on the letterhead or share certificate;
bearer shares- the name of the owner (holder) is not indicated.
According to the legislation of the Russian Federation, shares can only be registered. Depending on the type of rights, shares are divided into:
- ordinarystock, giving one vote when resolving issues at a meeting of shareholders and the right to participate in the distribution net profit after replenishment of reserve funds, payment of dividends on bonds and preferred shares;
-preference shares(preferences, prefactions) give their holders privileges that ordinary shareholders do not have. The first privilege relates to assets: in liquidation of the company, claims to the assets of prefaction holders are satisfied in the first place compared to holders of ordinary shares. The second privilege relates to dividends: prefaction holders usually receive a fixed dividend, expressed either in a certain amount of money or as a percentage of the nominal value. A fixed dividend is set for preferred shares when they are issued. When paying dividends, dividends on prefactions are paid first, then on ordinary shares. Preferred shares can be convertible, i.e. exchanged for ordinary shares, while one share is exchanged for another share.
Shares serve three main purposes:
the issue of shares is necessary for the organization joint-stock company to provide the new enterprise with a certain initial capital for deployment economic activity. When creating a joint-stock company, its founders receive shares in an amount proportional to the funds contributed to the authorized capital of the company;
shares contribute to attracting additional financial resources already in the course of economic activity;
the issue of shares is used for an exchange for the purposes of a merger with another company. The return on shares is determined solely by the payment of dividends on them.
By purchasing shares, the investor receives the right to vote in the management of the joint-stock company and the right to receive dividends based on the results of the company's work for the year.
The share price is an integrated indicator that reflects the investment attractiveness of the enterprise, taking into account a large number of factors:
situation in the industry;
situation in the country's economy; financial and economic condition of the enterprise;
the situation on the market for the company's products and the forecast of its development, etc.
What are state and municipal securities?
State and municipal securities are issued in the form of bonds or other securities certifying the right of their owners to receive funds from the issuer in the manner prescribed by the terms of the issue. Government securities are part of the government debt.
The government securities market is represented primarily by:
government short-term bonds (GKO)- largest segment Russian market valuable papers;
domestic foreign currency loan bonds (OVVZ)- issued by the Ministry of Finance of Russia and are a public debt instrument denominated in foreign currency.
Bonds of subjects of the Federation are considered the second most reliable after securities issued by the federal center, and the yield on them even exceeded the yield on GKOs.
Municipal bonds have been developed in a number of states due to the provision of significant tax benefits. The issuer of this type of bonds is the municipality, which has the right to issue debt obligations.
What is the purpose of the stock exchange?
Stock Exchange is an organization whose exclusive subject of activity is to ensure the necessary conditions for the normal circulation of securities, the determination of their market prices, which reflect the balance between the demand for securities and their supply. In addition, ensuring proper dissemination of information about them and maintaining a high level of professionalism of participants in the securities market.
All securities entering the stock exchange go through the listing procedure.
Listing- this is the admission of securities to exchange trading. The purpose of the listing is to admit only high-quality securities to exchange trading.
Quotation- registration on the stock exchange of the prices of shares and bonds that have developed in the process of buying and selling.
Well- the price at which transactions with securities are concluded.
stock exchange in Russian Federation created in the form of a closed joint stock company and must have at least three members. Members of the stock exchange may be professional market participants whose main tasks include carrying out transactions with securities. Operations on the stock exchange can only be carried out by its members. The stock exchange has the right to establish the minimum mandatory requirements for investment institutions necessary to become members of the exchange, as well as qualification requirements for representatives of members at exchange trading.
Stock Indices are methods for measuring the change in stock prices relative to the average. Are established in organized securities markets. When calculating the indices, the shares of many companies are taken into account, and both composite indices and sectoral indices are compiled.
What is the essence of the loan capital market?
Loan capital- this is money given on a loan for a certain percentage, subject to repayment.
The modern structure of the loan capital market is characterized by two main features:
temporary. On a temporary basis, a distinction is made between the money market, in which loans are provided for a period of several weeks to one year, and the capital market itself, where funds are issued for longer periods: from a year before five and from five or more;
institutional. On an institutional basis modern market loan capital implies the presence of two main links:
the credit system (a set of various credit and financial institutions);
securities market.
The temporal and institutional features of the loan capital market are characteristic of all countries. At the same time, the state of the national market is judged on an institutional basis, i.e. by the presence of two main tiers: the credit system and the securities market.
What are the functions of the loan capital market?
Functions of the loan capital market are determined by its essence and the role it performs in the system of the capitalist economy, as well as by the tasks of reproducing capitalist production relations.
Five main functions of the loan capital market should be singled out:
maintenance of commodity circulation through credit;
accumulation or collection of monetary savings of enterprises, the population, the state, as well as foreign clients;
the transformation of monetary funds directly into loan capital and its use in the form of capital investments to service the production process;
serving the state and the population as sources of capital to cover government and consumer spending;
Accelerating the concentration and centralization of capital, promoting the formation of powerful financial and industrial groups.
Through the loan capital market as an economic category, it is possible to measure and determine the movement, volume, direction of funds used for the development of production, to establish the class spectrum of the use of money capital, its impact on socio-economic relations.
How is the loan capital market formed in Russia?
The development of the loan capital market in the country is possible with the corresponding development of other markets:
the market for the means of production;
consumer goods market;
labor market;
land market;
real estate market.
All of these markets need cash, which they need. and provides a market for loan capital.
The transition to building a market economy in Russia caused an urgent need to form a full-fledged loan capital market in accordance with the Western model, which provides for the presence of two main tiers in the country:
credit and banking;
valuable papers.
The main directions in the formation of the Russian market of loan capital can be identified:
high savings rate in the country;
extensive privatization associated with the organization of corporate securities;
creation and all-round guarantee of the government securities market;
creation of an efficient banking system in the country, etc.
What are the international principles for organizing the precious metals market?
In order for the credit and banking system of the country to function effectively, it is necessary to create a market for precious metals.
World practice has shown that the normal functioning of the precious metals market requires compliance with the following conditions:
Free sale and purchase of various ingots of precious metals, as well as coins and jewelry made from such metals;
The presence of a wide range of trade participants, including banks, various enterprises and individuals. At the same time, the state, represented by its authorized bodies, is also one of the participants in the gold trade;
Free formation of gold prices depending on the demand and supply of the metal;
the availability of an appropriate infrastructure in the form of an exchange or other system that, depending on the market situation, would regularly publish gold price quotes;
state licensing of activities of market participants;
state supervision of the quality of precious metals;
Integration of domestic and international markets through free import and export of gold;
Free circulation of government corporate and other securities denominated in gold.
What are the benefits and benefits of financial intermediation?
The process of financial intermediation is as follows: a lender (surplus unit) provides funds to a financial intermediary, who makes a loan to a borrower (deficit unit).
Consider the benefits and advantages of financial intermediation.
1. From the lender's point of view.
Intermediaries carry out risk diversification by distributing investments by types of financial instruments, between creditors when issuing syndicated (joint) loans, over time and in other ways, which leads to a reduction in the level of credit risk. In the absence of a financial intermediary, credit risk is high, that is, the risk of non-repayment of principal and interest.
The net income of the intermediary is determined by the difference between the rate for the loan provided by him and the rate at which the intermediary himself borrows money, minus the costs associated with maintaining accounts, paying wages employees, tax payments, etc.
The intermediary develops a system for checking the solvency of borrowers and organizes a distribution system for its services, which also reduces credit risk and lending costs.
Financial institutions make it possible to provide a constant level of liquidity for their clients, that is, the possibility of obtaining cash. On the one hand, financial institutions themselves have the ability to keep a certain percentage of their assets in cash. On the other hand, for some types of financial institutions, the state establishes legal norms regulating liquidity. Thus, for commercial banks, through the norms of reservation, the maintenance of minimum cash balances on accounts with the central bank and at the cash desk is ensured by law.
2. From the point of view of borrowers:
Financial intermediaries simplify the problem of finding lenders willing to provide loans on acceptable terms.;
In the presence of a financial intermediary, the rate for a loan for a borrower under normal economic conditions is most often lower than in its absence. This paradox is explained by the fact that financial intermediaries reduce the credit risk for primary lenders (depositors) and can set lower rates for raising funds. The latter, together with the costs of the intermediary, turn out to be not so great that it becomes necessary to increase the placement rate above the level of the rate for direct lending;
Financial intermediaries carry out the transformation of terms, fulfilling the gap between the preference for long-term loans of the borrower and the preference for liquidity, the lender. This is possible due to the fact that not all clients demand their money at the same time, and the receipt of funds to the financial intermediary is also distributed over time;
Financial institutions meet borrowers' demand for large loans by aggregating large amounts from many clients.
What is the essence of financial management?
Under financial management understood:
a set of techniques and methods of purposeful influence on an object to achieve a certain result;
impact on financial relations in order to maximize the effective distribution (redistribution) of financial resources.
Control objects are different types of financial relations. In accordance with the classification of financial relations by their areas, three main groups are distinguished, which are accepted as objects of management:
Finances of enterprises, institutions and organizations;
- insurance relations;
Public finances.
Under subjects of management refers to the organizational structures that manage, namely:
Financial services of enterprises, institutions and organizations;
insurance authorities;
financial authorities and tax authorities.
The set of organizational structures that manage finances is called the financial apparatus.
What functional elements stand out in financial management?
In financial management, the following functional elements can be distinguished:
financial planning- occupies an important place in the financial management system. Assesses the state of financial resources, the possibility of their increase, as well as the most effective directions for their use. Financial planning is based on the analysis of financial information, and the latter, in turn, on the data of accounting, statistical and operational reporting. Components financial planning are budgetary and tax planning;
strategic management- consists in determining financial resources for the future, establishing the amount of financial resources for the implementation targeted programs etc. Strategic financial management in our country is carried out by the State Duma, the Office of the President of the Russian Federation, the Ministry of Finance of the Russian Federation and other bodies of state power and administration;
operational management - a set of measures developed on the basis of an operational analysis of the current financial situation and aimed at obtaining the maximum effect with a minimum of costs from the redistribution of financial resources;
Operational financial management in our country is carried out by the Ministry of Finance of the Russian Federation, financial departments of local governments, directorates of extra-budgetary funds, insurance organizations, financial services of enterprises, institutions and organizations;
-financial control- carried out at the stage of operational financial management. It helps to compare the actual results of the use of financial resources with the planned ones, as well as to identify reserves for the growth of financial resources and determine ways to use them most efficiently.
What is the purpose of public financial management?
Public financial management aims to ensure:
the relative balance of economic interests of the state, legal entities and individuals;
a deficit-free state budget;
stability of the national currency as a fundamental element of financial relations.
Who manages finances in the Russian Federation?
In the Russian Federation, the main financial management structures are the Federal Assembly, the President and the Government. It is these bodies that make the final decision when approving federal budget and a performance report.
At the national level, the financial system management apparatus includes the following bodies:
profile committees on the budget, taxes, banks and finances of the State Duma and the Federation Council;
Accounts Chamber of the Russian Federation;
Ministry of Finance of the Russian Federation and its local authorities;
Central Bank of the Russian Federation;
Ministry of the Russian Federation for taxes and fees;
Federal Tax Police Service of the Russian Federation;
State Customs Committee of the Russian Federation;
Federal Commission for the Securities Market;
Ministry of State Property;
executive directorates of off-budget funds for social purposes.
What are the main tasks assigned to the Ministry of Finance of the Russian Federation?
The Ministry of Finance of the Russian Federation is entrusted with the following tasks:
development and implementation of a unified state financial policy;
drafting and execution of the federal budget;
exercising financial control over the rational and targeted spending of budgetary funds and federal non-budgetary funds;
ensuring the sustainability of public finances and implementing measures to develop the financial market.
What are the main tasks of the Federal Treasury of the Russian Federation?
The main tasks of the bodies of the Federal Treasury are:
1) organization, implementation and control of the execution of the budget of the Russian Federation;
management of budget revenues and expenditures on the accounts of the Federal Treasury in banks, based on the principle of cash unity;
financial performance of state off-budget funds;
short-term forecasting of the volume of public financial resources and their operational management;
management, together with the Bank of Russia, of the state internal and external debt and its servicing;
reporting to legislative and executive bodies on the financial operations of the Government of the Russian Federation on the budget, as well as on the state of the budgetary system of the Russian Federation as a whole.
What are the main tasks of the Accounts Chamber of the Russian Federation?
The Accounts Chamber of the Russian Federation is a state financial control body formed by the Federal Assembly of the Russian Federation and accountable to it. The main tasks of the Accounts Chamber of the Russian Federation are:
organizing and exercising control over the timely execution of income and expenditure items of the federal budget, the budgets of federal extra-budgetary funds in terms of volume and intended purpose;
determining the efficiency and expediency of spending public funds and using federal property;
financial expertise of draft federal laws, regulatory legal acts of federal government bodies providing for expenses covered from the federal budget;
regular provision to the Federation Council and State Duma information on the course of execution of the federal budget and the results of ongoing control measures.
Who exercises financial control in the Russian Federation?
Currently, there is not a single body of state financial control in the Russian Federation. An important element of public administration, pursuing a unified fiscal policy throughout the country, preserving its integrity is presidential control over compliance with budgetary and tax discipline, carried out in accordance with the Constitution of the Russian Federation through the issuance of decrees on financial, budgetary and tax issues, the signing of federal acts.
The functions of financial control are also performed by the Main Control Directorate of the President of the Russian Federation, which is a structural subdivision of the Presidential Administration and operates on the basis of the Decree of the President of the Russian Federation “On measures to ensure state financial control in the Russian Federation”.
Executive authorities of all levels exercise financial control within their powers, as well as direct and control the activities of their subordinate departments.
The Government of the Russian Federation on the basis of the Constitution of the Russian Federation and the Federal Law of December 17, 1997 "On the Government of the Russian Federation" controls and regulates the financial activities of ministries and departments. Under the Government of the Russian Federation, there is a Control and Supervisory Board that performs a number of control functions in the field of finance. One form of nationwide financial control is parliamentary control. Both chambers of the Federal Assembly of the Russian Federation have special committees and commissions whose functions are to verify the correctness and completeness of state revenues and expenditures provided for in the draft budget, as well as control over the rational and targeted use of public funds. In the State Duma, such a committee is the Committee on Budget, Taxes, Banking and Finance, in the Federation Council - the Committee on Budget, Financial, Currency and Credit Regulation.
What are the tasks of state financial control?
The very concept of "state financial control" includes the following provisions:
control over the execution of the federal budget;
control over the execution of the budgets of federal non-budgetary funds;
control over the organization of money circulation;
control over the use of credit resources;
control over the state of the state internal and external debt;
control over the state of state reserves;
control over the provision of financial and tax incentives and benefits;
control over the full and timely receipt of all types of state revenues, insurance contributions to the Pension Fund of the Russian Federation and other federal extra-budgetary funds, as well as credit and borrowed funds allocated to finance the federal budget;
control over the timely financing of expenses for social sphere in terms of volume, structure and purpose, including wages ( allowance), payment of pensions, scholarships, allowances and other social benefits.
What is financial planning?
Financial planning is one of the financial management tools. There are a number of features that characterize financial planning:
regulation (ordered process);
connection with information processing;
focus on achieving certain goals;
temporary nature.
By planning, we will understand the process of developing and adopting targets of a quantitative and qualitative nature and determining ways to most effectively achieve them. The result of planning is a plan or a set of plans.
The plan is the result of an orderly process that defines the parameters for achieving goals in the future.
Planning acts as an effective tool for achieving the set goals through the adoption of coordinated measures in a changing external and internal environment. The ultimate goal of planning is to timely identify means and alternatives that would reduce the risk of making erroneous decisions.
What issues does a strategic financial plan address?
The strategic financial plan is developed based on the goals of doing business, taking into account macroeconomic processes in the economy, the financial policy of the state, including tax and customs policy, as well as taking into account the state and development of financial markets, investment, inflationary processes, etc. As a rule , strategic plans constitute the trade secret of the enterprise. strategic plan should answer the following questions:
What is the amount of capital required by the enterprise, from what sources and in what timeframe is it planned to attract it?
How will this capital be used?
Can an enterprise develop on its own, and if not, what are the possible sources of attracting financial resources?
What levels of cash flow, profitability of production and return on investment can the company reach and in what time frame?
What are the main functions of current planning?
Current financial plans are developed taking into account forecast trends and ultimately take the form of a balance of income and expenses of enterprises, which reflects all aspects of its proposed financial and economic activities, determines the directions for ensuring the highest profitability, areas for the most efficient investment of resources, sources of financing, etc.
The main functions of current planning are:
1) determination of the amount of financial resources and their sources for implementation:
production activities;
investment activity;
marketing activities;
scientific and design activities;
social projects;
planning the cost of production and sales of products (works, services);
cash flow planning;
planning (forecasting) profit from the activities of the enterprise as a whole;
investment return planning.
What does financial management do?
Financial management- is the effective management of enterprise resources of various forms of ownership. The main directions of financial management:
planning and forecasting financial activities enterprises - development financial plans- forecasts of the volume of production and sales of products;
determination of the optimal rate of growth in the volume of sales of products, determination of the structure of funds raised, methods of investment;
coordination of the financial activity of the enterprise with all its; services, branches;
carrying out major operations in the financial market to attract additional capital, as well as the sale of own shares.
monetary system is a form of organization of money circulation, enshrined in national legislation.
In the course of evolution, two type monetary systems: Monetary systems associated with metal, in which the role of the universal equivalent was played by a monetary commodity (silver and / or gold). Monetary systems circulation of paper and/or credit money, in which the functions of money are performed by paper and/or credit money.
The concept of "finance" is not the same as the concept of "money".
Money - this is a universal equivalent, with the help of which, first of all, the labor costs of producers are measured (money is a cost meter and a means of payment). With the help of money, the value of goods, works and services produced in a certain country for a certain period of time is measured, i.e. determined by the size of the GDP. Money allows you to measure the GDP in the country.
Finance - this is an eq-cue tool for the distribution and redistribution of GDP and ND, an instrument for controlling the formation and use of funds of funds.
The main purpose of finance in order to ensure not only the needs of the state and enterprises in cash, but also control over the expenditure of financial resources through the formation of cash incomes and funds. Without the participation of finance, ND cannot be distributed. Finance is an integral link between the creation and use of ND. Finance affects production, distribution and consumption and is objective. They express a certain sphere of production relations and belong to the basic category.
Finance is an integral part of monetary relations, therefore their role and significance depend on the place monetary relations occupy in economic relations.
Finances act in monetary form, but not all monetary relations are financial. Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services, funds of funds are created during their sale. Finance arises on the basis of the movement of real money in cash and non-cash form.
financial relations are relationships that result in the creation of funds of funds.
Examples of financial relationships: between enterprises in the process of acquiring inventory items, selling products and providing services;
between the state and enterprises when they pay taxes to the budget system and finance expenses; between the state and citizens when they make taxes and voluntary payments; between separate links of the budget system; between insurance organizations, enterprises and citizens in the payment of insurance premiums and compensation for damage in the event of an insured event; between commercial banks, enterprises and citizens when receiving a bank loan and paying interest on it, etc.
Financial relations are multifaceted, but their main difference from monetary relations is that financial relations allow the formation of cash funds from the state and individual economic entities.
The socio-economic essence of financial relations lies in the study - at the expense of whom the state receives financial resources and in whose interests it uses these funds.
Monetary relations turn into financial ones when, as a result of the production of goods, funds of funds are created during their sale.
Finance arises on the basis of movement real money in cash and non-cash form.
As a result of the independent movement of money, monetary funds are formed ( centralized- eq-tions related to the formation and use of funds of state funds accumulated in the state budget system and government off-budget funds and decentralized- monetary relations mediating the circulation of monetary funds of enterprises and households). This is the material content of finance.
financial relations- these are monetary relations arising from the distribution and redistribution of the value of the social product and part of the national wealth in connection with:
- the formation of economic entities and the state of cash income and savings,
- formation and use of earmarked funds.
Financial relations arise in divisions social production, in all its sectors, at all stages of value distribution. Financial relations are regulated by civil law:
- privatization process,
- the procedure for debiting funds from the current account,
- accounting policy,
- objects of taxation, etc.
System of financial relations
The financial relations of enterprises, depending on the content, are grouped in the following areas:
- this is the relationship between the founders at the time of the organization of the enterprise regarding the formation of the authorized capital;
- relations between enterprises associated with the production and sale of products and the emergence of newly created value;
- these are relations between suppliers, buyers, contractors and other subjects of the economy;
- these are relations between departments (between workshops and branches);
- between the enterprise and employees. They arise when distributing income received, when placing securities, when paying dividends, when collecting fines and compensations, and when paying wages;
- between the enterprise and the parent organization (within the holding, within the financial and industrial group, relations with various associations.). This group of relations may arise during the formation, distribution and use of resources received to finance targeted programs, for research and for investment projects;
- between the enterprise and the state. (Payment of taxes, contributions to off-budget funds, penalties, fines. Provision of tax benefits and subventions.);
- relationship between the enterprise and the banking system. (purchase and sale of currency, repayment/provision of loans.);
- relations between the enterprise and insurance companies (when concluding an insurance contract);
- relations between the enterprise and investment institutions regarding the placement of investments.
In progress economic activity enterprises may arise specific types of economic relations that are associated with the insolvency of the organization.
The role of finance business entities:
- with their help, the circulation of funds is serviced, i.e. change of forms of ownership. (monetary form => commodity => monetary.);
- there is a distribution of proceeds from the sale of goods after taxes (excise and VAT);
- there is a redistribution of net income for payments to the budget and profit that remains at the disposal of the enterprise;
- there is a use of the profit of the enterprise lagging behind in distribution for consumption funds, accumulation, for the reserve fund, and other purposes that are provided for in the financial plan;
- control over compliance with the correspondence between material and monetary resources in the process of individual financial circulation.
Financial flows have a direct and reverse direction, i.e. are bilateral.
Subjects of financial relations
Financial relations imply the presence of stakeholder groups:
1. Lenders. Interested in a stable financial condition of the company, which allows timely repayment of the loan:
- banks,
- company suppliers,
- buyers of products (about, forms, terms of payment and various obligations),
- participants in the debt securities market (banks, financial companies, mutual funds, state pension funds, other enterprises and individuals.
2. Business owners- are interested in saving the deposit and accruing income. Ownership of an enterprise itself can be carried out by acquiring shares or by buying out shares or shares (if it is not a JSC).
3. Employees of enterprises. In some way, their relationship is of a credit nature, regarding worked out but not paid salaries, taxes, contributions to the pension fund, etc. Among the employees, it is necessary to single out managers who are personally interested in the state and position of the company in the market. Managers, as a rule, are also co-owners of the company, giving them the right to receive dividends.
4. State, is interested in receiving taxes, relations can be bilateral (for example, in the case of financing from the budget or extra-budgetary funds).
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Answer from Yoma[guru]
P 1. What does the term "finance" mean? 4.Money relations; C 2. Why can finance be viewed as a historical category? 1. They arose at a certain stage in the development of society; C 3. Finance as an economic category arises: 3. In the process of distribution and redistribution of GDP and ND; P 4. In the modern interpretation, finance is: 3. Money relations; P 5. One of the reasons for the emergence of finance are: 4. Division of labor; C 6. What is the difference between finance and credit? 4. Finance - characterized by gratuitousness, and credit - paid; P 7. What preceded the emergence of finance? 4. The emergence of money and the state; P 8. The functions of finance are implemented: 2. In the process of redistribution of GDP and ND, regulation and control; P 9. The function of finance is: 2. Distribution of GDP and ND; C 10. What monetary relations are financial? 3. Relations between separate links of the budget system; P 11. What are the financial resources of the society? 2.Money income and funds of the enterprise, state and household; PS 12. Select an element of decentralized financial resources: 1. Profit; PS 13. Select an element of centralized financial resources: 1. Taxes; P 14. Choose a feature that characterizes finance: 2. Finance - distribution category; C 15. What are the similarities between credit and finance? 4. Credit and finance are monetary relations; C 16. What monetary relations are financial? 1. Relationships between individual parts of the budget system; P 17. The financial resources of society are: 2. Cash income and funds of enterprises, the state and households; C 18. Select an element of decentralized financial resources: 1. Profit; P 19. Choose the feature that best characterizes finance: 2. Finance - distributive category; P 20. What is the specific feature of financial flows? 5. their non-equivalent nature; P 21. Finance is ... - economic (monetary) relations P 22. Finance involves - independent movement of cash flows P 23. The material carrier of finance is: - cash flows P 24. As a result of the functioning of finance, ... - cash funds are created P 25. What include public (centralized) financial resources? -resources of the budgetary system P 26. What do decentralized financial resources include? -resources of enterprises C 27. The role of finance is determined by their impact on production. What exactly is it? - in the formation of financial resources of organizations C 28. Which of the functions of finance has received the maximum (compared to other functions) development in a centralized economy? -distributive PS 29. If the finances of a country with a market economy perform the function "x", then can it be argued that the finances of another country with a market economy perform a similar function? - unconditionally possible P 30. What do decentralized financial resources include? -resources of enterprises +
Answer from 3 answers[guru]
Hey! Here is a selection of topics with answers to your question: An economic category that preceded the emergence of finance?
Finance is a system of economic monetary relations, mainly associated with the redistribution of GDP and the formation of centralized and decentralized monetary funds.
Finance is a system of monetary relations associated mainly with the redistribution of profits and the formation of centralized and decentralized monetary funds. Finance is based on accounting, economic and production analysis, on the current tax system, etc.
Finance is a system of relations created by the state, i.e. the state itself regulates all relations connected with finance.
With a free market, financial relations cover only the budget (enterprises operate according to their own laws that do not obey the economy), with a regulated economy, part of the relations is formed directly by the state, and part is regulated.
All financial relations operate only at the level of enterprises, as legal entities. All financial relations operating within the enterprise are conditional financial relations.
Decentralized funds - all funds created at the enterprise level (accumulation fund, consumption fund, reserve fund, sinking fund).
The difference between a fund and funds: funds = the amount of funds, and the fund = the amount of funds that has a special purpose.
Finance is an integral part of monetary relations, but not all monetary relations are financial.
Finance differs from money both in content and in the functions performed. Money is the universal equivalent by 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 process of reproduction is a set of continuously repeating cycles.
Production®Distribution®Exchange®Consumption
Each subsequent cycle of reproduction is possible only after the newly created value is distributed, as a result of which target funds will be created, which are the basis for satisfying various needs, and this happens in an impersonal form. The real cash flow occurs in the second and third stages of the reproduction process. But only at the second stage, the movement of value occurs separately from the movement of goods and is characterized by its alienation (from hand to hand) or the targeted isolation of each part of the value (within one owner). At this stage, the stage of the emergence of financial relations, the value of the social product is distributed according to its intended purpose and business entities.
And homogeneous economic relations, being presented in a generalized abstract form, form an economic category - finance.
Thus, the criteria for classifying certain relations as financial are:
1. Real cash flow, i.e. transfer from one owner to another.
2. The distributive nature of these relations.
3. Place of occurrence - the second stage of the reproductive process.
Money is primary - finance is secondary.
At the enterprise, finance is used from the following economic relations:
1. relations between the enterprise and other enterprises in the course of financial and economic activities. Financial relations do not include purchase and sale relations, exchange, etc., but only the application of financial sanctions for non-fulfillment or poor-quality fulfillment;
2. between enterprises and divisions that are part of it. These relations depend on the structure of the enterprise and financial relations that arise only between units that have independent balance sheets and accounts. These relations can be supplemented by the formation of statutory funds, the redistribution of working capital, the redistribution of profits, the payment of taxes between enterprises;
3. between enterprises and employees regarding the payment of funds, mainly from profits, and a part that falls under state regulation;
4. between the enterprise and the state budget regarding the payment of taxes and regarding the receipt of benefits, targeted financing, state loans in various forms, etc.;
5. between the enterprise and commercial banks regarding the receipt and repayment of loans;
6. between enterprises and investment institutions regarding the formation of free financial resources and their use (investment funds, pension funds, etc.);
7. between the enterprise and higher authorities (holdings, concerns) regarding the overflow of capital.
Finance in the enterprise performs the following functions:
1. formation - the function provides financial resources, the circulation of funds in the enterprise, i.e. function of formation of monetary funds. The task is to form the cash flows at the enterprise in such a way that all financial flows work and work efficiently. The main indicators are planned;
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