One of the cost categories. Finance as a cost category. Functions of finance. Forms and methods of state control

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.

Centralized finance refers to economic relations associated with the formation and use of state funds accumulated in the state budget system and government extra-budgetary funds; decentralized finance refers to monetary relations that mediate the circulation of enterprise funds.

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 the labor costs of associated producers are primarily measured, and finance is an economic instrument for the distribution and redistribution of gross domestic product (GDP) 1 and national income, an instrument for controlling the formation and use of funds 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 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 authorities, 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.

The main material source of monetary income and 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. The volume of national income determines the possibilities of meeting national needs and expanding social production. It is by taking into account the size of the national income and its individual parts - the consumption fund and the accumulation fund - that the proportions of economic development and its structure are determined. This is why all countries attach importance to national income statistics.

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

A modern economy cannot exist without public finance. At certain stages of historical development, a number of needs of society 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.

The state of the country's economy determines the state of finances. In conditions of constant economic growth, increasing GDP and national income, finance is characterized by its sustainability and stability; they stimulate further development of production and improvement of the quality of life of the country's citizens.

In the context of an economic crisis, a decline in production, and rising unemployment, the state of finances is sharply deteriorating, which is reflected in large budget deficits financed by internal and external government loans, the issue of money, as well as an increase in public debt and expenses on it. All this entails the development of inflation, disruption of economic ties, an increase in mutual non-payments, the emergence of money surrogates, an increase in barter transactions, difficulties in mobilizing taxes, the impossibility of timely financing of government expenditures, and a decrease in the standard of living of large sections of the population. Therefore, the primary role in economic and social relations belongs to the state of the real sphere of production.

The essence of finance is manifested in its functions. Finance performs two main functions: distribution and control. These functions are carried out by finance simultaneously. Each financial transaction means the distribution of social product and national income and control over this distribution.

1. The distribution function manifests itself in the distribution of national income, when the so-called basic or primary income is created. Their sum is equal to national income. Basic incomes are formed through the distribution of national income among participants in material production. They are divided into two groups:
1) wages of workers, employees, income of farmers, peasants employed in the sphere of material production;
2) income of enterprises in the sphere of material production.

However, primary incomes do not yet form public monetary funds sufficient for the development of priority sectors of the national economy, ensuring the country's defense capability, and satisfying the material and cultural needs of the population. Further distribution or redistribution of national income is necessary, related to:

with intersectoral and territorial redistribution of funds in the interests of the most efficient and rational use of income and savings of enterprises and organizations;

the presence, along with the production non-production sphere, in which national income is not created (education, health care, social insurance and social security, management);

redistribution of income between different social groups of the population.

As a result of redistribution, secondary or derivative income is formed. These include income received in non-productive sectors, taxes (personal income tax, etc.). Secondary incomes serve to form the final proportions of the use of national income.

2. Control function. Being an instrument for the formation and use of monetary income and funds, finance objectively reflects the course of the distribution process. The control function is manifested in control over the distribution of GDP among the relevant funds and their expenditure for their intended purpose.

In addition to the distribution and control functions, finance also performs a regulatory function. This function is associated with government intervention through finance (public spending, taxes, public credit) in the reproduction process. However, today the regulatory function in Russia is poorly developed.

In market conditions, finance must also perform a stabilizing function. Its content is to ensure stable conditions in economic and social relations for all economic entities and citizens. Of particular importance in this regard is the question of the stability of financial legislation, since without this it is impossible to implement investment policy in the production sector on the part of private investors.

LECTURE NOTES ON THE TOPICS OF THE ACADEMIC DISCIPLINE AND METHODOLOGICAL INSTRUCTIONS FOR STUDYING THE LECTURE COURSE

TOPIC 1. “NATURE, FUNCTIONS AND ROLE OF FINANCE

IN SOCIAL REPRODUCTION"

The purpose of the lecture is to reveal the economic essence of finance, theoretical concepts about the essence of finance, their functions and role in social reproduction.

Lecture outline:

Question No. 1. The concept of finance: as a cost economic category; need for finance; the essence of finance; development of the doctrine of finance.

Question No. 2. Functions of finance.

Question No. 3. The relationship of finance with other economic categories (price, wages, credit). Financial resources and their sources.

Question No. 4. Participants in financial relations and the development of new financial relations in market conditions.

Basic concepts: cost categories, total social product, national income, centralized and decentralized funds of funds, economic system of the state, production relations, distribution, redistribution, objective need for finance, functions of finance, sources of financial resources.

Question No. 1. The concept of finance as a cost economic category and its necessity

Finance is a historically established economic category that covers a significant part of monetary relations in society through distribution and redistribution processes. The external manifestation of finance in economic life occurs in the form of the movement of money among different participants in social production, and represents the transfer of amounts of money from one owner to another in the form of non-cash or cash payments and payments. Cost as a category is primary in relation to finance. The latter reveal the movement of value in commodity-money relations.

Of interest is the term “finance”, from the Latin “finis” - end (finish), end of payment, settlement between subjects of economic relations (originally in Ancient Rome between the population and the state). Later, the term was transformed into “financia”, which was used in a broad sense as a monetary payment, and then as a set of income and expenses of the state and any economic units and their complexes.

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

As a subsystem of production relations of the economic basis;

As part of the relations in the distribution and redistribution of the value of the total social product in monetary form;

As a secondary phenomenon in relation to monetary relations;

As a set of monetary relations that arise between the state and the subjects of society, therefore, material production is primary, since value is created.

Finance - an economic category that reflects economic relations in the process of creating and using funds of funds, arising in the conditions of regular commodity-money exchange in connection with the development of the state and its needs for monetary resources. In the theory of finance, their essence is closely related to the process of industrial relations.

The reproduction process is carried out as an interconnected and interdependent combination of continuously ongoing stages: production, distribution, exchange and consumption.

There are many deep definitions and approaches on the essence of finance in the economic literature. Generally essence of finance is defined as a form of production relations, special economic relations associated with the distribution and redistribution of part of the value of the total social product (SOP) and national income (NI), the formation and use of centralized and decentralized funds of funds on this basis.

Another important sign of finance is distributive character financial relations. But the variety of distribution relations leads at the second stage of the reproduction process to the formation of other economic categories: profit, credit, wages, price. Finance differs significantly from the other specified categories operating at the stage of cost distribution.

Having gone through all stages of the reproduction process, the social product is transformed and embodied in three independent funds; compensation fund, consumption fund and accumulation fund. As a result, part of the value of the product enters a new circulation, as well. part is consumed and falls out of further movement. The essence of finance is deeply meaningful and covers the stages of production of goods, the entire process of promoting goods to the consumer, the creation of monetary funds based on the recognition of value and the further distribution and redistribution of monetary funds. The essence of finance is manifested quite fully if the state objectively recognizes all economic and social laws in relations. You should know the concept of "necessity" of finance. This is the beginning, the basis for the emergence of a basic category - finance.

Objective need for finance is justified by a number of fundamental factors: the existence of commodity production, the development of commodity-money relations, the existence of the law of value and distribution of goods. The need for finance is caused by objective circumstances - the needs of social development.

Finance- an economic category that reflects economic relations in the process of creating and using funds of funds, arising in the conditions of regular commodity-money exchange in connection with the development of the state and its needs for monetary resources. It has been historically proven that finance manifests itself in connection with the economic system of the state. The state, through the financial system, concentrates large monetary resources in its hands, and this is justified by the needs of society. In order to distinguish finance from a number of economic categories, it is important to move from considering the phenomenon of finance to understanding their internal content. In the theory of finance, their essence is closely related to the process of industrial relations.

In the hierarchy of social relations, monetary relations belong to economic categories, which, in turn, are included in production relations. The area of origin and functioning of finance is the second stage of the reproduction process, at which the value of the social product is distributed according to its intended purpose and business entities, each of which must receive its share in the produced product.

Hence, an important feature of finance is the distributive nature of financial relations. But the variety of distribution relations leads at the second stage of the reproduction process to the formation of other economic categories: profit, credit, wages, price. Finance differs significantly from the other specified categories operating at the stage of cost distribution.

The use of commodity-money relations in the Russian national economy determines the use of such cost categories as finance and credit. It should be noted that economic categories are a theoretical expression of the abstraction of social relations between people in the process of production and distribution of material goods.

Finance is the object of study of financial science, which explores the patterns of development of social relations expressed in a given value category. The object of study of financial science is both national (public) finance and the finances of individual economic entities (enterprises and corporations). With the help of public finance, the process of formation and use of government revenues and expenses is studied. The object of studying the finances of economic entities is the formation and use of their capital, income and monetary funds (consumption, accumulation and reserve).

The state acts not only as a subject of ownership of a certain part of the property, but also as an agent of production - an economic entity (financial support from the federal budget for priority sectors of the economy, science, export of goods, purchases of agricultural raw materials, personnel training, etc.).

The development of monetary relations, expressed in finance, occurs according to relatively specific laws. The main ones are the following. Firstly, financial relations are directly generated by the state, while other value categories (money, price, profit) are determined by the conduct of a commodity economy. Let us explain this pattern.

The development of financial relations is an objective necessity that arises at a certain stage of the development of society in connection with the emergence of the state.
The amount of monetary resources available to the state ultimately depends on economic conditions.
The state cannot arbitrarily build a financial system, since even the forms of financial relations are determined by economic conditions and this affects the development of government revenues and expenses.
The state can establish only such types of taxes and fees that correspond to the operation of objective economic laws and the needs of the development of productive forces. For example, the Tax Code of the Russian Federation, effective January 1, 2001, established 28 federal, regional and local taxes and fees instead of the previous 43.
The state, given the great influence of finance on the economy, often uses it to enhance its impact on economic growth (increasing gross domestic product and employment, reducing inflation, etc.).

Secondly, an important condition for the emergence and development of finance is the sphere of distribution of commodity-money relations in the totality of economic relations. The wider this area is represented, the greater the importance of finance in the economic system.

Thirdly, finance expresses monetary relations associated with the formation and use of centralized and decentralized monetary funds (fund of budgetary funds and monetary funds of business entities).

Fourthly, the regulatory activities of a particular country related to the practical use of finance are separated into the financial policy of the state. It is carried out by specially authorized bodies of the financial system (Ministry of Finance of the Russian Federation, Ministry of Taxes and Duties, State Customs Committee, etc.).

Fifthly, finance in its developed form includes not only national finance, but also the finance of enterprises and corporations, government credit and insurance funds.

These patterns make it possible to define financial relations as a relatively independent economic science associated with the practical use of finance in social reproduction, studying their content, forms of manifestation, patterns, and role in the economic system.

The history of the formation and development of finance indicates that they are characterized by the following features:

monetary (cost) nature of financial relations;
distributive (redistributive) nature of financial relations;
the stock nature of monetary relations expressing the category of “finance”;
financial relations are always associated with the generation of income that takes the form of financial resources;
financial relations, being objective, are nevertheless regulated by the state.

Let us give a brief description of each feature.

Financial relations between economic entities and the state are of a monetary (cost) nature, which makes it possible to separate finance from in-kind fees that dominated during the eras of slavery and feudalism. The emergence of financial relations is always accompanied by real cash flows, which is typical for a developed market economy.

Finance expresses the distribution (redistribution) of the value of the gross domestic product (GDP). These processes are characteristic of the second stage of the reproduction process - the distribution of the value of GDP in monetary form.

At this stage, the movement of value in monetary form is carried out separately from the movement of goods, which is caused by its alienation (transfer from one owner to another - the state in the form of indirect taxes) or the targeted division of each part of the value within one owner - into compensation funds, consumption and profit . Consequently, at the second stage of reproduction, there is a one-way movement of value in monetary form (M-M) without a counter equivalent - a commodity. It should be noted that at the third stage (exchange), the distributed value in monetary form is exchanged for the commodity form, i.e., an act of purchase and sale of goods occurs at market prices (T-D; D-T). Commodity exchange operations are serviced by two categories:

Movement of GDP value by stages of the reproduction process

money as a universal equivalent, as a result of which the social product is distributed among the subjects of reproduction;
price, on the basis of which a quantitative comparison of value in monetary and commodity forms occurs. No other value instruments are required for the exchange process.

The sphere of the emergence and functioning of finance is the second stage of social reproduction, where GDP is distributed according to its intended purpose (for compensation funds, consumption and profit) and to business entities. Thanks to finance, various processes of redistribution of the value of the social product are carried out in all parts of the national economy and in the non-productive sphere. Distribution (redistribution) of the value of GDP with the help of finance is necessarily accompanied by the movement of funds taking the form of financial resources. They form the material basis of finance. Financial resources are generated by business entities (enterprises and corporations) from proceeds from the sale of goods (works, services), and by the state from taxes and fees levied on legal entities and individuals in an indisputable manner. The state's financial resources take the form of budgetary and extra-budgetary funds that have a strictly designated purpose.

So, financial resources act as a material carrier of financial relations in the economic system.

3. The use of financial resources is carried out through special-purpose monetary funds, although a non-fund form of their use is also possible (for example, an estimated form of financing in budgetary organizations).

Financial funds are an important component of the general system of monetary funds created in the national economy of Russia (for example, a loan fund, a wage fund, reserve funds). The stock form of functioning of financial resources allows:

more closely link the satisfaction of any need with the economic capabilities of the state;
concentrate financial resources on priority areas of development of social reproduction;
to more fully link public and personal interests in order to develop production.

4. Financial relations are always associated with the formation and use of income, which takes the form of financial resources. None of the value categories (except finance) is characterized by such a material carrier.

5. Financial relations, being objective, are nevertheless regulated by the state through:

taxes and tax benefits;
financial sanctions for non-compliance with tax laws;
interest on government securities;
discount rate of the Central Bank of Russia;
the amount of contributions to extra-budgetary funds, etc. Monetary relations expressed by finance are brought together by the state into a unified system for the formation and use of funds of financial resources.

Isolating the essential features of finance allows us to give them the following definition.

Finance expresses a system of monetary relations regulated by the state in order to form and use funds of financial resources to satisfy various social needs.

This definition is the most general, characterizing finance as a cost category. Along with the national one, an important link in the financial system of Russia consists of the finances of enterprises of various forms of ownership (business partnerships and societies, state unitary enterprises, production cooperatives, financial and industrial groups and other commercial organizations). The finances of enterprises and corporations express a system of monetary relations that arise in the process of economic activity and are necessary for the formation and use of capital, income and funds. The latter include consumption, savings and reserve funds. A monetary fund is a separate part of the funds of an economic entity that has received a designated purpose and relatively independent functioning.

Cash is a broader concept than cash funds, which constitute only part of the funds in circulation of the enterprise. Cash flows are the targeted movement of funds in the current, investment and financial areas of the enterprise (corporation). As part of industrial relations, finance belongs to the economic basis of society.

Unlike finance, credit is a form of movement of loan capital. It is provided to borrowers by banks on a paid and repayable basis. Loan capital is formed from various sources: from funds temporarily released from circulation by business entities, the population, banks and the budget. The formation of loan capital from these sources indicates a close connection between finance and credit, since they are monetary relations. However, there are various ways to provide financial and credit resources to economic entities.

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

As a subsystem of production relations of the economic basis;

As part of the relations in the distribution and redistribution of the value of the total social product in monetary form;

As a secondary phenomenon in relation to monetary relations;

As a set of monetary relations that arise between the state and the subjects of society, therefore, material production is primary, since value is created.

The reproduction process is carried out as an interconnected and interdependent combination of continuously ongoing stages: production, distribution, exchange and consumption.

One of the cost categories. Finance as a cost category. Functions of finance. Forms and methods of state control

One of the cost categories. Finance as a cost category. Functions of finance. Forms and methods of state control

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