FINANCIAL SYSTEM

1.1. Concept, essence and functions of finance

What is finance?

Finance- this is a set of monetary relations organized by the state, during which the formation and use of nationwide funds of funds is carried out to carry out economic, social and political tasks.

Finance is an integral part of monetary relations. It is an economic instrument for the distribution and redistribution of gross domestic product (GDP) and national income, an instrument for controlling the formation and use of funds. Finance reflects the level of development of productive forces in individual countries and the possibility of their influence 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 monarchs was significantly curtailed, and the head of state was separated from the treasury. A national fund of funds arose - a budget that the head of state could not use individually.

The formation and use of the budget has become systematic. Systems of state revenues and expenditures with a certain composition, structure and legislative support arose. There were four groups of expenses: for military purposes, administration, economics, and social needs. In Russia, the latter direction arose at the end of the 19th century.

Transition to a monetary form of tax collection. With the development of capitalism, the influence of the state on the economy increases, which is accompanied by the development of the system public finance. In addition, various kinds of financial intermediaries appear that accumulate and redistribute the free funds of entrepreneurship and the monetary savings of the population.

What are the stages of financial development?

There are two main stages in the development of finance.

An undeveloped form of finance. The bulk of the funds were 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 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: reproduction of material goods, work force and industrial relations.

Currently, finance is at this stage of development.

What are the characteristic features of finance?

The characteristic features of finance are:

distributive nature of relations, which is based on legal norms or business ethics, associated with the movement real money regardless of the movement of value in commodity form;

one-way (unidirectional), as a rule, the nature of cash flow;

creation of centralized and decentralized funds of funds.

What monetary relations are financial relations?

monetary relations between two entities, one of which is vested with special powers (the state);

In the process of monetary relations, a national fund of funds was formed - the budget. These relations were of a stock nature;

regular receipt of funds into 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 and the creation of an appropriate fiscal apparatus.

What is the financial system?

Financial system is a set of different spheres of financial relations, each of which is characterized by features in the formation of funds of funds and a different role in social reproduction.

Financial system- this is a form of organizing monetary relations between all subjects of the reproduction process for the distribution and redistribution of the total social product. In the process of distributing the value of the total social product, subjects of economic relations accumulate various funds of monetary income and savings.

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;

  government loan;

  insurance funds;

  stock market;

2) finances of business entities:

State;

municipal;

• joint stock;

  rental;

  public

What are centralized and decentralized funds of funds?

Centralized funds of funds are created through the distribution and redistribution of national income created in sectors of material production. These include:

the state budget;

off-budget funds.

Decentralized cash funds are formed from the cash income and savings of enterprises and the population themselves. 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. Part of these resources is redistributed in accordance with the norms of financial law into budget revenues of all levels and into extra-budgetary funds. At the same time, a significant part of these funds is subsequently used 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, benefits, scholarships, etc.).

Among decentralized finance, the key place belongs to the finance of commercial organizations. Here material wealth is created, goods are produced, services are provided, profit is generated, which is the main source of production and social development society.

What is financial policy?

Financial policy- this is a set of government activities aimed at mobilizing financial resources, their distribution and use for the state to perform its functions. This is an independent sphere of state activity in the field of financial relations.

development of a general concept of financial policy, determination of its main directions, goals and main objectives;

creation of an adequate financial mechanism;

management of financial activities of the state and other economic entities.

Goals The financial policy of an enterprise can be:

survival of the enterprise in a competitive environment;

avoiding bankruptcy and major financial failures;

leadership in the fight With competitors;

maximizing the market value of the enterprise;

sustainable growth rates of the economic potential of the enterprise;

growth in production and sales volumes;

maximizing profits and minimizing costs;

ensuring profitable activities, etc.

The basis of financial policy is made up of strategic directions that determine the long-term and medium-term prospects for the use of finance and provide for the solution of main tasks arising from the peculiarities of the functioning of the economy and social sphere of the country.

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;

establishing a rational distribution and use of financial resources from the state’s point of view;

organization of regulation and stimulation of economic and social processes 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 business-like financial management system.

the main task financial policy along with the provision of appropriate financial resources, the implementation of one or another state program of economic and social development - to prevent social tension in society. Overcoming the decline in production and increasing social protection of the population are the top priorities facing Russia's modern financial policy.

What is budgetary financial policy?

Under budget politics understand the state's definition:

sources of generation of state budget revenues;

priority areas of state budget expenditures;

admissible limits of imbalance of the budget;

The principles of the relationship between the various parts of the budget system.

The following types of political influence are usually implemented as part of budget policy:

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:

Management of emissions, regulation of inflation and the exchange rate of the national currency;

ensuring timely and uninterrupted payments in the national economy and various parts of the financial system through regulation of activities banking system;

Management of the activities of financial markets through regulation of the issue of securities and determination of their profitability.

What is tax policy?

Tax policy finds its embodiment in the construction of a particular tax system. Tax systems in developed countries The world is 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 located in equal conditions must pay the same taxes) and vertical equity (the rich pay proportionately more 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 a method of action financial method(profit, income, depreciation, rent, exchange rates, interest rates, securities prices, 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.

This is an organized system for trading financial instruments.

Elements of financial market structure:

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 entire 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 in accounts in monetary units of a foreign state, international or settlement monetary units);

securities (checks, bills), stock values ​​(stocks, bonds) and other debt obligations denominated in foreign currency;

Precious metals (gold, silver, platinum, palladium, iridium, rhodium, ruthenium, osmium) and natural precious stones (diamonds, rubies, emeralds, sapphires, alexandrites, pearls).

The subjects (participants) of the foreign exchange market are: banks, exchanges, exporters and importers, financial and investment institutions, government organizations.

The object of the foreign exchange 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 money in circulation.

What is the securities market?

On 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 attract the funds they need;

investors- persons purchasing 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 during the transaction.;

derivatives market, where futures contracts are traded.

In addition, the timing distinguishes:

-short-term securities market- a segment of the securities market on which securities with a maturity of less than one year are placed and traded. 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 on which securities with a maturity of at least one year are placed and traded. It represents the main part of the capital market.

The securities market, in turn, is divided into:

-primary securities market, where securities issued for the first time 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 necessary 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 not intended 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 extracting 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, the following can be distinguished:

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 unorganized markets, most initial public offerings of securities occur, as well as trading of securities (bonds and shares) of unlisted companies.

What types of securities markets are there?

Forward market, in which the parties agree to deliver securities they actually hold for final settlement by a specified date in the future.

Futures market, in which contracts are traded for the delivery at a certain date in the future of securities or other financial instruments that are actually sold on the financial market.

Options market, on which the purchase and sale of contracts is carried out with the right to buy or sell certain financial instruments at a predetermined price before the end of its validity period. 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 a certain point in the future.

Exchange 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.

Over-the-counter securities market- a system of large trading platforms that trade many types of securities,

Simple auction market typical for undeveloped exchange and over-the-counter stock markets. In such a market, before trading, a preliminary collection of sales applications occurs and a consolidated quotation sheet is compiled. The auction takes place through a sequential public announcement of a list of proposals, for each of which there is a public competition (according to a certain scheme) of buyers by setting new prices. The starting price is the seller's price.

Dutch auction. There is a preliminary accumulation of orders from 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 purchase orders that allows the entire issue to be sold. That is, the sum of orders at this price and all prices above it covers the entire issue. All purchase requests submitted at prices higher than the official ones are satisfied at the official price.

Oncall markets. Before the start of trading, purchase orders and offers to sell are accumulated, which are then ranked according to price offers, sequence of receipt and quantity. In this order they are satisfied. According to certain rules, an official rate is established at which the largest number of applications and proposals can be satisfied. The remaining positions form a list of unrealized orders and offers (this is how stock exchanges work).

Continuous auction markets. There is no fixed start date for trading. The flow of orders to buy and offers to sell is continuously recorded by exchange specialists. Incoming applications are compared with those received earlier, and if their positions match, they are satisfied in the order of receipt and according to the largest order amount. If the order cannot be fulfilled, 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 supply of securities (more than 10,000 lots daily).

Dealer markets. Sellers publicly announce offer prices and procedures for accessing places to purchase securities. Buyers who agree with the price offers declare their intentions and purchase securities. What is a security?

Security- this is a specially executed document expressing the property relations between the parties, confirming the right of its owner to any property or its monetary equivalent.

A security is a title to property 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 is an issue-grade security that secures the holder’s right to receive bonds from the issuer for a specified period of par value and a fixed percentage of this value, i.e. bonds are debt obligations expressing a loan relationship. Currently in Russia the stock market is dominated by government securities (GKOs, OFZs, etc.);

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 securities (mortgages)- securities reflecting the collateral relationship. Mortgage securities certify the right to receive monetary obligations secured by the mortgage of property;

-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 on the issue of these derivative securities.

There is the following classification of securities:

registered securities, upon registration of which information about the owner is entered into a special register;

bearer securities can be transferred to other persons without identification;

term securities with a specific maturity date;

perpetual securities - do not contain specific period repayments;

documentary securities - the owner is identified on the basis of presentation of an issued certificate;

uncertificated securities - the owner is identified on the basis of an entry in the register;

government securities - issued by the federal government;

securities of the subjects of the federation - 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 issue.

Securities can be:

emission - placement requires a prospectus and registration of the issue with regulatory authorities;

non-emission - 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);

accessibility for civil circulation (i.e. the ability to act as the object of civil transactions - loan, donation, storage, commission, order);

standard and serial (have a standard form, content);

documentation (contain all mandatory details provided by law);

regulation and recognition by the state;

liquidity (ability to convert into money);

What is a share?

Promotion is an issue-grade security indicating the contribution 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 own funds of the joint-stock company. According to the registration method, the following are distinguished:

registered shares- provide for the designation of the owner’s name 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 of net profit after replenishment of reserve funds, payment of dividends on bonds and preferred shares;

-preference shares(preferences, prefactions) give their holders privileges that owners of ordinary shares do not have. The first preference concerns assets: upon liquidation of a company, claims to assets of prefaction holders are satisfied first in comparison with holders of ordinary shares. The second privilege concerns dividends: prefaction holders usually receive a fixed dividend, expressed either in a certain monetary amount or as a percentage of the face value. A fixed dividend is established on preferred shares upon issue. When paying dividends, dividends on prefactions are paid first, then on ordinary shares. Preferred shares can be convertible, that is, exchanged for common shares, exchanging one share 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 a joint stock company is created, its founders receive shares in an amount proportional to the funds contributed to the authorized capital of the company;

shares help attract additional financial resources in the course of business activities;

The issue of shares is used to exchange for the purpose of merging with another company. The profitability of shares is determined solely by the payment of dividends on them.

By purchasing shares, an investor receives the right to vote in the management of the joint-stock company and the right to receive dividends based on the company’s performance 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:

industry situation;

situation in the country's economy; financial and economic condition of the enterprise;

situation on the market for the enterprise’s products and the forecast for 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 form part of the government debt.

The government securities market is represented primarily by:

government short-term bonds (GKOs)- the largest segment Russian market valuable papers;

domestic foreign currency loan bonds (OVVZ)– issued by the Russian Ministry of Finance and are an instrument of government debt denominated in foreign currency.

Bonds of subjects of the Federation are considered second in reliability after securities issued by the federal center, and their yield even exceeded the yield of 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 bond is the municipality, which has the right to issue debt obligations.

For what purposes does the stock exchange function?

Stock Exchange- this is an organization whose exclusive activity is to ensure the necessary conditions for the normal circulation of securities, to determine 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 among securities market participants.

All securities supplied to the exchange undergo a listing procedure.

Listing- is the admission of securities to exchange trading. The purpose of listing is to admit only high-quality securities to exchange trading.

Quotation- registration on the stock exchange of the prices of shares and bonds established in the process of buying and selling.

Well- the price at which transactions with securities are concluded.

Stock exchange in Russian Federation is created in the form of a closed joint stock company and must have at least three members. Members of the stock exchange can 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 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 of measuring changes in stock prices relative to averages. Are established in organized securities markets. When calculating indices, the shares of many companies are taken into account, and both summary and sectoral indices are compiled.

What is the essence of the loan capital market?

Loan capital- This is money lent for a certain percentage subject to repayment.

The modern structure of the loan capital market is characterized by two main features:

temporary. On the basis of time, a distinction is made between the money market, where loans are provided for a period from 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. Institutionally, the modern loan capital market implies the presence of two main links:

credit system (a set of various credit and financial institutions);

securities market.

Temporary 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 capital market?

Functions of the loan capital market determined by its essence and the role it plays in the capitalist economic system, as well as by the tasks of reproducing capitalist production relations.

It is worth highlighting five main functions of the loan capital market:

servicing commodity circulation through credit;

accumulation or collection of cash savings of enterprises, the population, the state, as well as foreign clients;

transformation of monetary funds directly into loan capital and its use in the form of investments to service the production process;

serving the state and population as sources of capital to cover government and consumer expenses;

Accelerating the concentration and centralization of capital, promoting the formation of powerful financial and industrial groups.

Through the market of loan capital as an economic category, it is possible to measure and determine the movement, volume, direction of monetary funds used for the development of production, to establish the class spectrum of the use of monetary capital, its impact on social economic relations.

How is the loan capital market being formed in Russia?

The development of the loan capital market in the country is possible with the corresponding development of other markets:

market for means of production;

consumer goods market;

labor market;

land market;

real estate market.

All these markets need cash, which they need. and provides a capital market.

The transition to building a market economy in Russia has 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 loan capital market can be identified:

high savings rate in the country;

widespread privatization associated with the organization of corporate securities;

creation and full guarantee of the government securities market;

creation of an effective banking system in the country, etc.

What are the international principles for organizing the precious metals market?

In order for the country's credit and banking system 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 bullions of precious metals, as well as coins and jewelry made from such metals;

The presence of a wide range of trading 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 the price of gold depending on the demand and supply of the metal;

the presence of 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 over 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: the lender (the surplus unit) provides funds to the financial intermediary, who issues a loan to the borrower (the deficit unit).

Let's consider the benefits and benefits of financial intermediation.

1. From the lender's point of view.

Intermediaries diversify risk by distributing investments by type of financial instrument, between lenders 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, i.e. the risk of non-repayment of principal and interest.

The intermediary's net income is determined by the difference between the rate for the loan he provides 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 system for distributing 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, i.e. the possibility of receiving cash. On the one hand, financial institutions themselves have the opportunity to hold a certain share of their assets in cash. On the other hand, for some types of financial institutions, the state establishes legislative norms regulating liquidity. Thus, for commercial banks, through reserve standards, the maintenance of minimum cash balances in accounts at the central bank and at the cash desk is legally ensured.

2. From the borrowers' point of view:

Financial intermediaries simplify the problem of finding lenders willing to provide loans on acceptable terms;

If there is a financial intermediary, the loan rate for the borrower under normal economic conditions is often lower than if there is no intermediary. This paradox is explained by the fact that financial intermediaries reduce credit risk for primary creditors (depositors) and can set lower rates for raising funds. The latter, combined with the costs of the intermediary, are not so great that there is a need 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 of long-term loans of the borrower and the liquidity preference of 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 satisfy borrowers' demand for large loans by aggregating large amounts from many clients.

What is the essence of financial management?

Under financial management is understood:

a set of techniques and methods for purposefully influencing an object to achieve a certain result;

influence on financial relations in order to maximize the effective distribution (redistribution) of financial resources.

Management 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 carry out management, namely:

Financial services of enterprises, institutions and organizations;

insurance authorities;

financial authorities and tax inspectorates.

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 increasing them, as well as the most effective areas for their use. Financial planning is based on the analysis of financial information, and the latter, in turn, is based on data from accounting, statistical and operational reporting. Components financial planning are budget and tax planning;

strategic management- consists of determining financial resources for the future, establishing the volume of financial resources for the implementation of target 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 government and administrative bodies;

operational management- a set of measures developed on the basis of 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 of their most effective use.

What is the purpose of public financial management?

Public financial management aims to ensure:

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 power structures for financial management are the Federal Assembly, the President and the Government. It is these bodies that make the final decision when approving the federal budget and the report on its implementation.

At the national level, the administrative apparatus financial system includes the following bodies:

specialized committees on budget, taxes, banks and finance 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 Duties;

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 social funds.

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;

implementation financial control for the rational and targeted expenditure of budgetary funds and funds of federal extra-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 Federal Treasury are:

1)organization, implementation and control of execution of the budget of the Russian Federation;

management of budget income and expenses on Federal Treasury accounts in banks, based on the principle of unity of cash;

financial execution of state extra-budgetary funds;

short-term forecasting of the volumes of public financial resources and their operational management;

management, jointly with the Bank of Russia, of state internal and external debt and its servicing;

submission of reports 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 budget 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 reporting to it. The main tasks of the Accounts Chamber of the Russian Federation are:

organizing and exercising control over the timely execution of revenue and expenditure items of the federal budget, budgets of federal extra-budgetary funds in terms of volumes and intended purposes;

determining the effectiveness and expediency of spending public funds and using federal property;

financial expertise of draft federal laws, regulatory legal acts of federal bodies state power providing for expenses covered from the federal budget;

regular provision of information to the Federation Council and State Duma on the progress of execution of the federal budget and the results of ongoing control measures.

Who exercises financial control in the Russian Federation?

Currently in the Russian Federation there is not a single body of state financial control. An important element of public administration, the implementation of a unified fiscal policy throughout the country, and the preservation of 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, and 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 unit 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 at all levels exercise financial control within the limits of their powers, and also direct and control the activities of the departments under their jurisdiction.

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. The Government of the Russian Federation has a Control and Supervisory Council that performs a number of control functions in the field of finance. One of the forms of national financial control is parliamentary control. In both chambers of the Federal Assembly of the Russian Federation there are 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, Banks 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 budgets of federal extra-budgetary funds;;

control over the organization of money circulation;

control over the use of credit resources;

control over the state of state internal and external debt;

control over the state of state reserves;

control over the provision of financial and tax benefits and benefits;

control over the complete and timely receipt of all types of government 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 timely financing of expenses for social sphere by volume, structure and purpose, including wages (salary), payment of pensions, scholarships, benefits 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 (orderly process);

connection with information processing;

focus on achieving certain goals;

temporary nature.

By planning we will understand the process of developing and adopting quantitative and qualitative targets and determining the ways to most effectively achieve them. The result of planning is a plan or a set of plans.

A plan is the result of an orderly process that defines parameters for achieving future goals.

Planning acts as an effective tool for achieving set goals through the adoption of coordinated measures in a changing external and internal environment. The highest goal of planning is to identify in a timely manner means and alternatives that would reduce the risk of making erroneous decisions.

What issues does a strategic financial plan address?

A 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, inflation processes, etc. As a rule, , strategic plans constitute a trade secret of the enterprise. The strategic plan should answer the following questions:

What is the amount of capital required by the enterprise, from what sources and in what time frame is it planned to attract it?

How will this capital be used?

Can an enterprise develop based on own strength, and if not, what are the possible sources of attracting financial resources?

What levels of cash flow, production profitability and return on investment can the enterprise 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 sheet of income and expenses of an enterprise, which reflects all aspects of its intended financial and economic activities, determines the directions for ensuring the highest profitability, the areas of the most effective investment of resources, sources of financing, etc.

The main functions of current planning are:

1) determination of the volume of financial resources and their sources for the implementation of:

production activities;

investment activities;

marketing activities;

scientific and project activities;

social projects;

planning the cost of production and sales of products (works, services);

cash flow planning;

planning (forecasting) profits 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. Main directions financial management:

planning and forecasting financial activities enterprises - development financial plans- forecasts of production volume and product sales;

determining the optimal growth rate of product sales, determining the structure of funds raised, investment methods;

coordination of the financial activities of the enterprise with all its; services, branches;

carrying out large operations on the financial market to attract additional capital, as well as selling own shares.

2. Types and types of financial relations of organizations

Finance is not the money itself, but the relationship between business entities, the state, and individuals regarding the formation, distribution and use of funds of money.

The set of monetary relations arising in connection with the movement of funds of monetary funds forms financial relations.

Financial relations that determine the content of finance as an economic category usually include monetary relations that arise in the process of expanded production between:

the state and organizations for the payment of taxes and other payments to the budget, as well as for financing from the budget a number of costs of business entities (loans, subsidies);

organizations and higher structures when creating funds of cash and reserves, financing sectoral target programs;

organizations and banks when receiving loans, paying interest on loans, storing funds in bank accounts;

organizations and insurance bodies when paying insurance premiums and compensation from the insurance fund for damage upon the occurrence of an insured event;

organizations and employees when paying wages and other incentive payments, applying economic sanctions against employees, selling them securities;

economic entities in the process of their production and commercial activities when making payments for acquired inventory assets (raw materials, materials, fuel, electricity), when selling finished products and providing services, as well as in the process of formation, distribution and use of financial resources (including during mergers and divisions, regarding financial insolvency and bankruptcy of the organization);

organizations and founders at the time of creation of a business entity on issues of formation of the authorized capital, subsequently - on the distribution of profits, etc.

However, not all monetary relations are financial. Financial relations cover only that part of the relationship that is associated with the formation and use of funds of funds.

Thus, in the process of economic activity at enterprises, there is a movement of materials from one division to another without payment in cash. The monetary expression of the value of material assets in such operations is used only for accounting and monitoring the progress of economic processes and does not apply to finance.

The system of financial relations does not include commodity exchange transactions, which still occupy a prominent place in the relationships between economic entities.

Thus, we can distinguish the following main features of finance:

Economic relations using money;

In the process of economic relations, monetary funds are formed and used.

3. Principles and functions of organizational finance

The basic principles of an organization’s finances include:

the principle of economic independence, the financial aspect of which consists in independently determining expenses, sources of financing, directions for investing funds and disposing of profit after taxes, etc.;

the principle of self-financing, which means full recoupment of the costs of production and sales of products, investing in the development of activities at the expense of one’s own funds and, if necessary, bank and commercial loans, and other forms of external financing on a repayable basis;

the principle of creating financial reserves, due to the need to generate financial resources that provide entrepreneurial activity in conditions of risks associated with fluctuations in market conditions;

the principle of diversification, which provides for the availability of multiple sources of financing and areas of capital investment;

the principle of planning, which presupposes the need to plan the movement of financial resources and the efficiency of their use;

the principle of flexibility and agility, which means the need for a quick response, making alternative decisions and maneuvering in the event of failure to achieve forecast production and sales volumes, or exceeding planned costs;

the principle of material interest in the results of activities, which is implemented through sufficient remuneration, optimal tax policy of the state, compliance with economically justified proportions in the distribution of net profit;

principle financial liability, which presupposes the presence of a certain system of responsibility for the results of responsibility for the results of financial and economic activities.

The implementation of these principles allows you to create an effective financial management system.

The essence of finance, its specific content is revealed in its functions, which include distribution and control.

The first function of finance is the distribution and redistribution of national income in the state. The material basis for creating a state’s national income is the reproduction of the social product (gross domestic product). At all stages of reproduction of the gross domestic product and its distribution (actual production, distribution, exchange and final consumption), finance is directly used.

National income is divided into two parts - the accumulation fund and the consumption fund. The relationship between these parts determines the proportions of economic development and its structure.

The need for redistribution of national income is caused by:

the presence of a non-productive sphere in which national income is not created (government administration, education, health care, social security), but without which production cannot be effective;

the need to ensure social development;

the importance of creating favorable conditions for entrepreneurship, which requires the provision of grants and subsidies.

Finance also performs its distribution function in the process of generating and distributing income of organizations.

When selling products, enterprises generate revenue and, accordingly, income. One part of this income goes to the state budget: state target budget and extra-budgetary funds, and the other remains at the disposal of the organization for the formation of wage funds, economic stimulation and financing of costs for the expansion and development of production.

The second important function of finance is control. It is generated by the distribution function and is manifested, first of all, in control over the distribution of the total social product and national income among monetary funds and their intended expenditure.

The control function of finance is carried out in two ways: firstly, through control by the ruble, and secondly, through control exercised by financial authorities. Through finance, enterprises exercise ruble control over the formation of cash income, compliance with the economy regime and the use of material and labor resources, the quantity and quality of labor, the use of fixed and working capital, the formation and use of incentive funds, etc.

Control over the ruble is carried out not only within the organization, but also in relationships with higher structures, with financial and credit institutions, and counterparties.

The economic activities of enterprises are controlled by the ruble in the process of fulfilling obligations to the budget for payments to the budget and financing from the budget. Control by financial authorities and departmental services is carried out by checking the legality of spending funds and the completeness of payment of taxes.

The essence and signs of finance

The concept of “finance” is inextricably linked with money and commodity-money relations. In the conditions of commodity-money relations, there is a continuous process of movement of money, its transfer from one owner to another. The concept of “finance” is often identified with the concept of “money”. However, these are two different but interrelated concepts. Finance differs from money, both in content and in the functions performed.

Money is a special kind of commodity that spontaneously emerged from the social mass of goods. Their peculiarity is that they essentially represent a universal equivalent with the help of which the labor costs of associated commodity producers are measured.

The main purpose of money is expressed in its functions:

1) measure of value; 2) means of circulation (exchange); 3) means of payment;

4) means of education, accumulation and savings; 5) world money.

The main purpose of finance is that by creating cash income and funds, the needs of the state and enterprises for funds are met, and also ensures control over their expenditure.

Table 1.1

Signs of finance:

1. Financial relations have a monetary basis.

2. Subjects of financial relations have different rights in the process of these relations, one of them, the state, has special powers.

3. In the process of these relations, a national fund of funds is formed - the budget, therefore we can say that these relations are of a fund nature.

4. Regular receipt of funds into the budget cannot be ensured without giving taxes, fees and other payments a state-compulsory nature. This is achieved through the rule-making activities of the state and the creation of an appropriate fiscal apparatus.

Definition of Finance:finance - this is a system of monetary relations in society regarding education and the use of centralized and decentralized funds within the framework of the distribution and redistribution of GDP and national income to solve the economic, social and political problems of the state.

Money is required condition the existence of finance.

However, not all monetary relations are financial relations.

Example: financial relations - receiving wages;

monetary relations - payment of housing and communal services, purchase of goods.

Finance is a system of economic monetary relations associated mainly 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 regulates all relations related to finance itself.

In a free market, financial relations cover only the budget (enterprises operate according to their own laws that are not subject to economics); in a regulated economy, some of the relations are formed directly by the state, and some are regulated.

All financial relations operate only at the enterprise level, as legal entities. All financial relations operating within the enterprise are conditional financial relations.

Decentralized funds are all funds created at the enterprise level (accumulation fund, consumption fund, reserve fund, depreciation fund).

The difference between a fund and funds: funds = the amount of funds, and a fund = the amount of funds that has a specific 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 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 reproduction process is a set of continuously repeating cycles.

ProductionDistributionExchangeConsumption

Each subsequent cycle of reproduction is possible only after the newly created value has been distributed, as a result of which targeted monetary funds will be created, which are the basis for satisfying various needs, and this happens in an impersonal form. Real movement money occurs at the second and third stages of the reproduction process. But only at the second stage does the movement of value occur 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 relationships 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 origin - 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 the part falling under government 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 cash 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 an enterprise performs the following functions:

1. formation - the function provides financial resources, the circulation of funds in the enterprise, i.e. function of forming 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;

2. use - a function of the use of funds and funds;

3. control function - at the enterprises themselves, between enterprises, if there is a violation of the law - at the level of the budget, or the state.

The material basis of financial relations

The material basis of financial relations are financial resources. Financial resources are a set of incomes and receipts at the disposal of a business entity.

Financial resources are intended for:

Fulfilling financial obligations;

Covering the costs of expanded reproduction;

Material incentives for employees.

The main material source of monetary funds is the country's national income - newly created value. It is divided into the cost of necessary and surplus product. The necessary product and part of the surplus is the fund for the reproduction of labor power. The rest is a savings fund. For economic entities, the main monetary funds are the accumulation fund, the consumption fund and the financial reserve fund.

Financial resources come from three sources:

1) funds accumulated in the state budget system;

2) funds from extra-budgetary funds;

3) resources received by the enterprises themselves (profit, depreciation).

Based on this, finance can be centralized (state) and decentralized (resources of business entities).

Decentralized resources are classified into:

Own and attracted (profit, depreciation, cash in circulation, proceeds from the sale of property, profit from the performance of work and services, all types of accounts payable);

Borrowed (long-term and short-term bank loans, funds from various financial institutions;

Resources received through redistribution (insurance compensation, government subsidies, subventions).

Financial relations- monetary relations that arise in the process of distribution and redistribution of the value of a social product and part in connection with the formation of monetary income and savings among economic entities and the state, the formation and use of monetary funds for special purposes.

Financial relations are economic relations between entities that are associated with the formation, distribution and use in order to meet the needs of the state, enterprises (organizations, institutions) and citizens. The nature and content of financial relations are determined by the nature of monetary relations. When creating, operating and liquidating, business entities enter into various financial relationships, taking into account the specifics of their organizational and legal status.

Financial relations as part of the production relations of society constitute its economic basis. Financial relations developed as society developed, going through a long evolution. The modern diversity of types and forms of their manifestation and use is due to the increasing complexity of economic relations and the strengthening of the role of the state in regulating economic and social processes. Being closely connected with other types of monetary relations (credit, price, etc.), financial relations improved along with them.

Modern tasks for the development of financial relations arise from the need to strengthen the market foundations of economic management, strengthen democratic principles in management, further strengthen the role of the state in managing social and economic processes, and expand the economic and financial independence of regions and municipalities.

Financial relations arise in departments social production, in all its sectors, at all stages of value distribution. They mediate connections between:

• the state, on the one hand, and business entities and citizens, on the other (regarding payments to budgets and extra-budgetary funds and financing from them);
• the state and its creditors in domestic and foreign financial markets;
• bodies of state administration and self-government to provide each other with financial assistance;
• business entities regarding payment due to violations of payment, contractual and financial discipline;
• enterprises (organizations) and their employees regarding wages and financial incentives etc.

The diversity of financial relations is also promoted by the state, which develops various forms of their use (for example, introduces or abolishes specific types of payments, etc.). The forms of financial relations are established by the state in accordance with the general objectives of the country’s development, the characteristics of the historical stage, etc.

Financial relations are an integral part of objectively determined market relations and an important tool for the implementation of the state.

Along with diversity, financial relations have some common features that make it possible to combine them into relatively separate groups, depending on whether financial relations are directly involved in social reproduction, provide insurance protection, or carry out state regulation of social and economic processes. Such groups include financial relations in the areas of: the functioning of business entities; ; state and municipal administration.

The totality of financial relations constitutes countries.