the main Taxes

Financial system and fiscal policy. Financial system and fiscal policy. Progressive taxation: "For" and "against"

Financial Policy- This is a collection of state activities on the use of financial relations to fulfill its functions. The principles of organization of finance states are fundamental, objective basics of their construction in the conditions of market inventory. In a market economy, the organization of finances determine economic laws. However, in real life of the state, the organization of financial relations may differ from relations that are dictated by laws. In practice, the objective organization of finance is mediated by state financial policy.

All government branches are somehow involved in the implementation of financial policies. Russian Federation. The success of financial policies largely determines the stability of the state and the fulfillment of its government functions.

Financial policy is independent activities of the state. It contains its goals, objects, tasks, content, as well as methods and forms of regulation. The four main components of the financial policy of the state can be distinguished: tax policies, budget Policy, politics international financial, as well as monetary policy.

The main purpose of the state's financial policy is the most efficient use. financial resourcesnecessary to meet the urgent needs of the development of society. Accordingly, the main purpose of the financial policy is to create favorable conditions for the intensification of entrepreneurial activities, as well as their concentrations in the main directions of economic and social development. The main goal of the financial policy of the state should be united for all levels of power (federal, regional and local), for all subjects. As such a goal, only the common interests of the entire population can speak - an increase in the well-being of each person.

Under certain conditions and at different stages of the development of the economy, as well as in certain regions, the situation may develop when the purpose of the financial policy will temporarily consist in the preservation of the real level of income. The purpose of the financial policy of the Russian state (and the subject of the federation in particular) should be an increase or maintenance of real income per capita and on this basis, ensuring social standards for living standards in the country, including at the level of each region. Currently, the main goals of financial public Policy - This is a decrease in inflation, smoothing the jumps of economic cycles, increasing the volume and efficiency of the use of financial resources, improvement and structural restructuring of the economy, achieving a higher standard of living of the population based on the development of industries and agriculture. The main tasks of financial policy are: Creation effective system operational finance management; ensuring conditions for the formation of the maximum possible financial resources; establishing the optimal distribution and use of financial resources; Development and subsequent development of financial mechanism tools, taking into account the adjustment of the strategy.

Leading economists allocate three types of financial state policies: 1) stabilization; 2) economic growth; 3) Business Limit Policy. Stabilization policy - It is used by the Government of the Fiscal Policy Measure. Economic growth policy - This is a system financial measuresaimed at increasing the actual volumes of gross national product and raising employment. It includes the growth of government spending and reducing the tax burden. Business Limit Policy aimed at reducing the actual volume of VN compared to its potential level and is applied by the government in the period of lifting or boom in order to avoid the crisis of overproduction and inflation arising together with over demand. The deterrent policy implies: reducing government spending and increasing taxes. The positive effectiveness of financial policies is a high degree of achievement of the goals and tasks. The higher the impact of financial policy, the more it takes into account the needs of social development, the interests of all layers and groups of society, the specific historical conditions and features of life. For the same extent, the success of financial policy depends on the qualitative development of the mechanism for the coordination and realization of the interests of various sectors of society and the objective opportunities in the state. In the public sector, this is primarily expressed primarily in the income received, in changes in priorities, volumes and directions for financing economic complexes and sectors of the economy. In the credit and monetary sector, it may be an increase or decrease in balance of funds on the settlement accounts, a change in residues loan debt on short and long-term bank credit, change in the mass of money serving consumer goods circulation, etc.

General Financial Policy Management in State Financial Policy Exercises the highest representative legislature Federal Assembly of the Russian Federation. Responsibilities are distributed between his two chambers of the State Duma and the Federal Assembly. These bodies are considered and approved federal budgetAnd also follow his execution. Basic structure financial control is the Accounts Chamber. It monitors the execution of expert and analytical, control view and information functions. The leading role in managing finance of the Russian Federation is played central bank RF and Ministry of Finance.

Financial policy content Multilateral states. First, taking into account existing economic laws and comprehensive analysis economic activity, further prospects for the development of economic entities on micro- and macro levels, as well as the needs of the population, there is a development concept of finance for a scientific basis. Secondly, taking into account the international environment acting economic Policy, strategic and tactical steps to achieve their goals are determined by the main directions of use of finance in different periods and is determined by the possible increase in financial resources. In third, practical actions are performed, allowing achieving the goals developed at each control. For the successful implementation of financial policies used financial mechanism as a system of targeted actions using financial relations (finance). The structure of the financial mechanism has a rather complicated structure. The financial mechanism includes various elements that correspond to this or that nature of financial relations. It is the multiplicity of financial relationships that predetermines the use of a large number of species, forms and methods of their organization (elements of the financial mechanism).

Allocate two types of financial mechanism - directive and regulating. Directive type implies a detailed study of the entire system of organizing financial relations in which the state participates, including taxes, national credit, budget expenditures, budget financing, organization budget device and budget process, financial planning. This type declares the obligation of established forms, species and methods of action for all subjects of financial relations. In some cases, the policy financial mechanism applies to financial relations in which the state is involved indirectly, but which occupy a significant place in implementing all financial policies.

Regulating Type The financial mechanism provides for the establishment of only the basic rules for using financial resources remaining after payment of mandatory payments. Each enterprise independently develops species, forms cash fundsas well as directions for their use.

One of the main tools for the impact of the state to the economy is fiscal policywhich is a union tax and budget policy.This policy is carried out with the help of taxation and government spending. Since the implementation of government spending is the use of funds from the state budget, and taxes in turn are the main sources of its replenishment, it can be concluded that the fiscal policy means manipulating the state budget. The fiscal policy includes only those manipulations that are in no way related to the change in the amount of money in circulation. In economic literature, many authors allocate two types of fiscal policy: discretional (active) and automatic (passive). Based on discretional Fiscal policy is a way to manipulate the government by state expenses, taxes. If government spending grow and taxes are reduced, the expansionist fiscal policy arises. If government spending decreases and taxes increase, then such policies are called contractual, or deterrent, fiscal policy. Under automatic Fiscal policy is meant the passivity of fiscal policy. With this form of policies, all the necessary changes in the structure of government spending levels, taxes are entered automatically. Passive fiscal policy tools are built-in stabilizers, for example, a progressive tax scale. That is, in the period of lifting the economy, with such a policy, the disposable income of the population is more slowly growing and the retained profit of firms increases slightly, and this, in turn, restrains the efficiency of demand. During the decline in the economy, this type of taxation significantly slows down the reduction of total costs. Consider each of the components of the fiscal policy: tax and budget policies.

Tax policy- This is part of the state economic policy aimed at forming tax systemwhich provides economic growth contributes to the harmonization of economic interests as a state as a whole and taxpayers, taking into account socio-economic policies in the country. According to a number of economists, the main goal of modern tax Policy It consists in the formation of such a tax system that will not be burdensome for business entities both in terms of exemption of income in the form of tax payments, and in relation to the procedure for calculating, paying taxes, streamlining tax reporting and tax audits. Such checks must be favorable for the active investment process and for business development. According to another group of economists, the main goal of the state's tax policy is to establish a tax system that could constantly stimulate accumulation and proper use The national wealth of the country, as well as to facilitate the regulation of the interests of the economy and society, directing them into one channel, which will ensure the social and economic progress of the whole society. It is also considered that tax policy is haunted by the optimization of centralized funds.

Thus, the main purpose of the tax policy is the formation of a tax system capable of ensuring the income of the country's budget, not becoming burdensome for business entities, as well as to create conditions for the social, economic progress of the whole country.

Based on such a target installation, it is not difficult to note that the state in the implementation of tax policies is facing very contradictory moments. In essence, it has to solve two key and at the same time mutually exclusive tasks: to ensure a sufficient increase in tax payments revenues to budgets of all levels and significantly reduce the amount of taxes that taxpayers pay.

In any state, there is a tax system that is based on the legislative acts of the state establishing the elements of the tax. One of these elements is the tax rate. The maximum tax rate is an increase in tax paid, which is divided into income growth. The average tax rate is total taxthat is divided taxable income. On the basis of the relationship between the average tax rate and income, taxes are divided into progressive when the rate increases in terms of increasing income, regressive, when the rate decreases in increasing income, and on proportional, when the rate does not change, despite the amount of income. It is important to note that on the issue of tax rates, a group of American specialists under the direction of Professor A. Laffer examined the dependence of the amount of tax revenues to the budget from income tax rates. Economic meaning The Laffer curve is that when the income tax rate is higher than a specific level, business activity is rapidly and strongly, as entrepreneurial activity loses its goal becomes disadvantageous. Lower tax rates in turn create incentives to work, contribute to the accumulation of savings, the process of investing, making business risks, the expansion of national production and income. As a result, the tax base is expanding, which can support tax revenues on high level Even if the tax rates are lower.

Budget Policyas part of the financial policy of the state includes: policies for mobilizing revenues to budgets of all levels; policies in the field of intergovernmental relations; Policy in the field of budget spending. Budget policy is the activities of the state associated with the budget revenue management, as well as budget deficit. The budget policy of the state, as well as the tax, has its own specific tasks. Allocate the following tasks of the budget policy:

Conducting a budget reform, as a result of which the transition from the management of budgetary costs to managing results by increasing the share of liability, an increase in the independence of the participants in the budget process;
definition of principles for the establishment of the size and directions of budget subsidies;
ensuring the need to balance the state budget, as well as the implementation of budget deficit management;
improving budget legislation;
development of measures that stimulate the interest of territories in the development of its economic base;
carrying out the restructuring of public debt;
a decrease in the dependence of the federal budget from foreign economic conjuncture;
Exercise of the transition from estimated financing budgetary institutions and providing directly significant part of the budget services to the principle of payment of their payment in accordance with those results that society receives;
Reform budget accountingduring which a change is planned Budget classification RF in accordance with international standards, taking into account functions that are performed by state authorities and local governments;
Improving medium-term budget planning, which should be long-term;
The introduction and development of stable and reliable medium-term financial forecasts of both the development of the economy and a promising financial plan.

The state budget - This is a plan of income and state expenses. As for the economic essence of the state budget, it is the cash relations that arise between the state and individuals and legal entities on the issue of redistribution. national income In connection with the formation, the use of budget funds. If we consider the state budget as financial planThe state budget consists of income and expenses and provides authorities with the economic opportunity to exercise their powerful powers. The priority task of the budget policy is to maintain the balance of the state budget, as well as the management of the budget deficit. Budget deficit - This is the excess of the expenditure part of the state budget over its income. main reason The budget deficit is the lack of consistent financial and economic policies in the state. The permanent increase and an increase in the deficit leads to the emergence of public debt, which is growing over time if the deficit is not covered. It is necessary to manage public debt, as it has a negative impact on the development of the economy.

Under the external public debt, you should understand the debt to foreign countries, individuals and organizations. Such a duty lies at the country with a huge burden, as she has to give certain valuable goods in return, provide specific services to pay interest and pay off their debt. Domestic debt involves mainly the redistribution of income among the population only within the country. According to a number of authors, the public debt is the amount of budget deficits accumulated during the specific period, minus the budget balance spent at that time.

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Course work

Financial system States and fiscal policy

financial System Fiscal Policy

Introduction

1.1 Concept of the financial system, its sphere and links

1.2 Financial functions

Chapter II. Fiscal policy

2.1Fiscount policies, concepts and purposes

Chapter III. Types of fiscal policy

3.1 Types of Fiscal Policy

3.4 Problems when conducting fiscal policy

Conclusion

Bibliography

Introduction

A huge role in the structure of market relations and in the mechanism of their regulation by state is played by finance. They are an integral part of market relations and at the same time an important tool for implementing public policy. That is why today I never actually know the nature of finance, it is deeply understood in the peculiarities of their functioning, to see the most complete use of their use in the interests of the effective development of social production.

The entity of finance is manifested in their functions: distribution, control, stimulating, fiscal.

The combination of financial relations within the framework of the national economy is formed by the state financial system. From the point of view of socio-economic relations, it consists of centralized, decentralized finance and finance of households. From the point of view of macroeconomic analysis and the role of the state in the development of the national economy, government finances are of particular importance. The principle of their construction, which is characteristic of the financial systems of modern developed countries, is the principle of fiscal federalism, in which the functions between different levels of the system are clearly delimited. In accordance with this principle in unitary states, local budgets are not included in the state budget; In federal states - local budgets are not included in the budgets of the Federation members, and the latter are not included in the state federal budget. For example, government finances of the Russian Federation are also built in accordance with the principle of fiscal federalism.

Problems financial recovery Based today literally everyone. After all, what is happening currently in the financial sphere of activity is closely connected with the personal well-being of everyone. Profit and taxes, deductions for social insurance and pensions, the price of shares and bonds, forms of investing funds for production and social sphere etc. - such issues are discussed today not only in government circles, they deeply worry each of us.

Specific tools for conducting state economic policy are primarily fiscal leverage, fiscal policy tools such as taxes, government spending, transfers. Using fiscal tools, the state can change the magnitude and direction cash streams In accordance with the intended goals and the measures planned for their implementation.

The purpose of this work is to study the financial system of the state and fiscal policy. To achieve the goal, it is necessary to solve the following tasks:

· Analyze the financial system of the state;

· Consider finance functions;

· Give the characteristic of the fiscal policy and its goals;

· Consider the main types of fiscal policy.

Chapter I. State Financial System

1.1 Concept of the financial system, its sphere and links

Finance represent a system of social relations through which, on the basis of distribution and redistribution public Product and national income, there is a planned education, distribution and use of centralized and decentralized funds. Finance is divided into links.

The financial system in the broad sense of the word is a combination of financial relations existing within the framework of this economic formation, in the narrow sense of the word - this is a system of financial institutions, the socio-economic content, the functions and structure of which are determined by the state policy, which includes financial organizations and all structural units State tax service.

Structure of the financial system:

· Budget system

· Extrabudgetary trust funds

· Finance of enterprises and organizations

· Property and personal insurance funds

· Credit that is divided into state, municipal and banking.

The basis of the construction of the financial system is the three fundamental elements:

1. Functional purpose, manifested in the fact that each system link performs its tasks; For example, the state budget expresses the distribution relationship between the state, enterprises, the population, due to the formation and use of the National Fund of Financial Resources. Property and personal insurance - one of the creation methods reserve funds For citizens. Finance of enterprises express relationships on the creation and use of cash funds intended to ensure the diverse needs of the primary units of social production, fulfilling obligations to the state budget and commercial banks;

2. Territorality - Each Region, Republics have the appropriate apparatus of financial and insurance bodies;

3. The unity of the financial system is predetermined by the Unified Economic and Political Foundation of the State. This causes a single financial policy conducted by the state through the central financial bodies, uniform goals. Management by all links occurs on uniform main legislative and regulatory acts.

The financial system includes national, sectoral and public financial relations. In general, the financial system is presented in Scheme 1.

The main link of the financial system is traditionally considered the budget sphere. Redistribution through the budget should ensure the normal development of production and means of production. The same, concerns the production and non-productive sphere, industry, agriculture and other imbalances. The financial system needs to be distinguished from the financial apparatus. Financial apparatus is part of the device government controlledwhich is entrusted with the Financial System Management.

Budget system. The federal budget is the main financial plan of the country, approved by the Federal Assembly as a law. Through the federal budget, the state concentrates in itself a significant share of national income for financing national economy, socio-cultural events, strengthening the defense of the country and the content of government and management bodies. With the help of the budget, the redistribution of national income occurs, which creates the ability to maneuver with money and purposefully influence the pace and the level of development of social production. This allows one to exercise a single economic and financial policy throughout the country.

The federal budget is characterized by the following features:

wears a pronounced balance. Excess costs over revenues is a budget deficit,

the formation and use of the budget is based on a combination of centralized began with the initiative of local authorities.

Basic budget functions:

· Redistribution of national income and approximately 50% of GDP between territories, branches of activity, social groups;

· State regulation and stimulation of the economy;

· Financial support financial policy;

· Control over the formation and use of the centralized fund money.

Extrabudgetary trust funds. Legal status of funds is regulated in detail in the Budget Code and in the legislation of subjects. If a budget funds associated with the development of common tasks, then extrabudgetary related tasks, such as the Pension Fund.

Property and personal insurance fund. Sources of education of these funds are cash of enterprises and the population, and the better the financial situation of these two groups will be, the better the state of these funds will be.

Pension Fund - extrabudgetary state fund, the funds of which are made up of legally established contributions from the activities of physical and legal entitiesThe intention spending these funds to pay pensions to citizens.

The pension fund carries out some functions:

W is involved in determining the amount of contributions to state insurance, the substantiation of their differentiation on enterprises and organizations, depending on the working conditions;

W provides control over the timely and full flow of insurance premiums and the correct expenditure of funds;

W is participating in the preparation of proposals for improving the pension provision and the development of social programs;

W is implementing international cooperation on issues related to the competence of the Fund.

The State Social Insurance Fund (FSS) is a centralized fund for general national resources of the national appointment, distributed in both the territorial and sectoral cuts.

Mandatory medical insurance is an integral part of state social insurance, ensures all citizens of the Russian Federation equal opportunities in obtaining medical and drugs at the expense of compulsory medical insurance.

Federal Mandatory Medical Insurance Fund (FFOMS);

Territorial funds of compulsory medical insurance (TFOMS);

Finance enterprises. The volume of such decentralized cash funds directly depends on the state of the state's tax system. If the state's tax system is sufficiently "sparing" and the amount of tax payments is small, the decentralized state funds are growing. It is good because the funds of these funds will remain in the state and are used for various needs. Financial resources - cash incomes and accumulations that are at the disposal of economic entities and states and intended for expanded reproduction, solving social problems, the realization of the interests of owners.

The conditions for the formation of financial resources are laid at the production stage in proportions of various elements of the value of the created product, which are adjusted through prices are distributed among the participants of the production process. Their revenues are then redistributed by the state with the help of the tax system and transfers transmitted to the population, as well as through the financial market.

The composition of financial resources in different economic entities differs significantly. Scheme 2.

Scheme 2 shows the most typical composition of the financial resources of commercial organizations. From it are excluded borrowed fundswhich are involved in enterprises through the issue of debt obligations and bank loans. Borrowed funds, as you know, suggest their mandatory return. This is the most important criterion for the differences in financial and credit resources. Nevertheless, borrowed funds, along with financial resources, make it possible to solve the problem of ensuring the economic activity of the enterprise sources of financing.

At the same time, the differences between financial and credit resources are not only conceptual in nature, but also determine the presence or absence of obligations from the enterprise, the possibilities of their repayment.

Thus, the financial resources of enterprises are essentially their own sources of financing attracted from the financial market and arising from economic activities. These funds are intended for expanded reproduction, solving social problems and meeting the interests of the owners of enterprises.

Credit. The lender is the physical and legal entities, the borrower - the state represented by its bodies. Additional resources The state attracts through sales in the financial market of bonds, treasury commitments and other types of government securities. This form Loan allows the borrower to send mobilized additional financial resources to cover budget deficit Without implementation for these purposes, emissions. The national loan is also used in order to stabilize the cash circulation in the country. In the context of inflation, state loans in the population temporarily reduce its effective demand. Excessive money supply is withdrawn from circulation, i.e., there is an outflow of money from the appeal to a progress period.

The use of a state loan is due to the need to meet the needs of society through budget revenues. Mobilized temporarily free funds and legal entities are used to finance economic and social programs, i.e. The state loan is a means of increasing the financial capabilities of the state. At the national level, state loans do not express a concrete target, while local authorities can use mobilized funds for the improvement of urban and rural areas, the construction of health care facilities, cultural, educational, housing and domestic purposes.

Depending on the borrower, government loans are divided into placed by the central and local governments. At the place of placement, the state loan can be internal and external. Based on the term of attracting funds, loans are divided into short-term (up to year), medium-term (from year to 5 years), long-term (over 5 years).

Mobilization of huge financial resources, as a result, gives greater state debt. The size of the state loan is included in the amount of public debt of the country.

State debt is the whole amount of issued, but not redeemed government loans with interest accrued on them for a specific date or for a specific period.

The state domestic debt of the Russian Federation means the debt obligation of the Government of the Russian Federation, expressed in the country's currency, before legal entities and individuals. Forms of debt obligations are loans received by the Government of the Russian Federation, state loans made by issuing securities on his behalf, others debenturesGuaranteed by the Government of the Russian Federation.

State foreign debt is the debt on outstanding external loans and the percentage unpaid on them. Internal debt consists of the debt of past years and newly arising debt. Any debt obligations of the Russian Federation are repaid in terms that cannot exceed 30 years.

Service of public debt is expressed in the implementation of operations on the placement of debt obligations, their repayment and interest on them. These functions are carried out by the Central Bank of the Russian Federation. The costs of servicing public debt are made at the expense of the funds of the republican budget of the Russian Federation and turned into one of the most important elements of government spending. Payments for public debt service grow very quickly, displacing other types of expenses from the budget.

The huge public debt of Russia, both internal and external, reflects the economic and financial crisis in the country. Under these conditions, the state can use refinancing of public debt, i.e. Repayment of old state debt by issuing new loans.

Control over the state of the state domestic and external debt of the Russian Federation and the use of credit resources is imposed on the Accounts Chamber of the Russian Federation.

1.2 Financial functions

The entity of finance is manifested in their functions. Under functions are understood by the "work" that finance is performed. The question of the number and content of the functions is controversial.

Famous financier Alexander Mikhailovich Burman, allocated three main functions of finance:

1. Ensuring the management process of cash;

2. Control of the ruble;

3. During the distribution.

A. M. Alexandrov and E. A. Voznesensky argued that finance is expressed in the formation of cash funds, the use of cash funds and control.

However, no one denies that finance is a set of monetary relations organized by the state in the course of which the formation and use of funds funds are carried out. And on the question, which is the source of formation of numerous funds on different levels, the answer happens, as a rule, one is a gross domestic product. The process of distribution of gross domestic product can be done using financial instruments: rules, rates, tariffs, deductions, etc., established by the state.

If you consider finance as a whole, then, apparently, it should be assumed that they perform two main functions: distribution and control.

The effect of the distribution function of finance follows from the essence of the finance: ensuring relations related to the distribution and redistribution of the aggregate social product (SOP), national income (ND) and net income (CH), formation of income and savings; Creation of funds funds. The specific mechanism of action of the distribution function follows from the essence of the finance as relations on the distribution and redistribution of the part of the social product, the action of which occurs in the conditions of separation, separation and split value and real forms of the social product and national income.

The distribution function of finance reflects economic relationsdue to the movement of net income, as well as its influence on the components and elements of the aggregate product (creating the conditions for the subsequent implementation of this product in a natural and real form through the commission of purchase and sale).

Finance through net income not only mediate the entire process of social production, but also themselves actively participate in the circulation of funds at all its stages, directly providing the process of extended reproduction.

So, the public appointment of the distribution function of finance consists, firstly, in the distribution and redistribution of part of the value of the cumulative social product, mainly net income, in cash in order to ensure expanded reproduction; secondly, in the formation of potential opportunities to create a financial basis for the functioning of the state and the whole economic System Any socio-economic formation.

Along with the distribution function, finance play a control function. The control function is generated by the distribution function and manifests itself in monitoring the distribution of the total social product, national income and net income on the relevant cash funds and their target expenditure.

The control function quantitatively through the movement of financial resources displays economic processes associated with the distribution and redistribution of the cumulative social product. The control function is due to the normative nature of monetary relations. Regulations regulate both the conditions for the distribution of income and profits sent to expanded reproduction and the terms of payments to the budget (establishing categories of payers, objects, units of taxation, rates, funds of benefits for payments, the order of their calculus, etc.); funding from the budget (the procedure for opening budget financing and its use); lending; The formation and use of various cash funds of economic entities. It is the control over compliance with regulatory acts that express the essence of the distribution function of finance reflects in turn the content of the control function of finance. This consists of a dialectical and inseparable relationship between two finance functions. From here, the specific feature of the control function - the control function is a distribution function derivative.

Regulatory function - state intervention in the reproduction process through finance (taxes, state loans etc.). The state affects the reproductive process through the financing of individual enterprises, carrying out tax policies;

Stabilizing function - providing citizens with stable economic and social conditions

Finance functions are depicted in Scheme 3.

1.3 Finance modern society

The most important element of the economic mechanism of modern society is finance.

Finance - a system of economic relations in society

the formation and use of funds funds based on the distribution and redistribution of the aggregate social product and national income.

In meaning " cash payment"He began to be used in the XII - XV centuries. In Italy, a number of cities of which - Florence, Venice, Genoa, were at the time the largest European trade and banking centers. In the future, the term received international distribution and became used as a concept associated with the system of monetary relations, the formation of monetary resources mobilized by the state to fulfill its political and economic functions.

In prepalistic formations state revenues Have predominantly natural. Most of the state needs were satisfied due to various kinds of receipts from natural fees. With the decomposition of the feudal system and the development of capitalist relations in its depths of capitalist relations, cash income and state expenses are becoming increasingly important.

This process is enhanced with the expansion of commodity and money relations, the growth and complication of the state functions. With the department of state treasury, the concepts of "state finances" and the "state budget" arise from the person's office and property of the monarch.

In modern conditions, the concept of finance covers, on the one hand, government finances, on the other - finance of enterprises and corporations.

Public Finance is a special scope of economic relations related to the secondary, as well as the primary distribution and consumption of part of the total public product in order to educate the funds necessary to the state to implement its functions. Their material content is embodied in public and local budgets, special funds, finance of state enterprises.

Finance of private enterprises and corporations express cash relations that arise during their economic activity And provide the process of production and profit. They materialize in the form cash capital, various cash funds of enterprises.

Characteristic features modern finance The following are:

1) a monetary form in contrast to the natural relationship;

2) the distribution nature of the relationship, i.e. There is no equivalent exchange;

3) Distribution of the total social product and national income through real cash funds, for example, in contrast to the price distribution.

Thus, finance for their origin - cash relations. But not all relationships relate to financial, they become such only when the process of production and sale of goods is formed by money incomes of participants in the reproduction process and the use of these income occurs, t.ch. When the movement of money acquires a certain independence.

Role state finance In modern conditions, it is primarily in that. that they act as an important tool for influencing the process public reproduction, maintaining the pace of economic growth, the development of key branches of the economy, structurally restructuring the economy, acceleration of NTP. So, expanding the volume public investmentThe state causes an increase in demand for equipment, labor, which, in turn, gives impetus to the growth of industrial production, employment, revival of economic conjuncture. At the expense of the state budget, demand is maintained, financing social events and programs, etc.

Impact on the economy, although conflicting, have military spending.

Military costs give a certain impetus to the development of industry, but at the same time a long-term arms race leads to the depletion of the economy, internal disproportions, changes in the structure of industries and other negative consequences. Currently, government finances have become actively used to achieve a long-term results - increasing the competitiveness of the national economy, accelerating NTP and strengthen the scientific and technical potential of the country, overcoming the unevenness of the placement of productive forces.

However, the dialectic of any economy system is such that government finances, having a serious impact on the economic situation, growth rates, the vital level of the population, etc., are generated at the same time new difficulties and problems in the economic and social spheres. The effectiveness of solving these problems largely depends on the properly developed financial policy of the state.

Financial policy is a combination of financial events carried out by government bodies through links and elements of the financial system. It is based on dominant in this period theoretical concepts, under the influence of which the economic exchange rate is being formed.

Chapter II. Fiscal policy

2.1 Fiscal policy, concepts and objectives

Fiscal policy is part of the financial policy of the state.

Fiscal policy is a policy of manipulating budget, expenses and taxes in order to change the actual volume of production and employment, control over inflation and acceleration of economic growth.

The fiscal policy of the state involves the use of government opportunities to charge taxes and spend the funds of the state budget to regulate the level of business activity, solving real social tasks.

Fiscal policy includes:

W discretionary policies based on hard conscious intervention in the economy;

W Nediscree policy based on the automatic stabilization of the economy.

There are two types of discretionary policies: stimulating and restrictive.

Stimulating fiscal policy is carried out during the recession, depression, includes an increase in government spending, a decrease in taxes and leads to a budget deficit.

Restrictive fiscal policy is carried out during the boom and inflation, includes a decrease in government spending, tax increases and leads to an excess of the state budget.

Taxes and government spending are the main tools of fiscal policy. Fiscal policy can be both beneficial and sufficiently painful to influence the stability of the national economy.

Thus, the main purpose of the discretionary fiscal policy is to counteract the cyclic fluctuations in the economy by stimulating or restriction cumulative demand. Therefore, it is called anticyclic.

The discretionary fiscal policy requires the implementation of measures to balance the state budget, which implies:

· Financing of deficits;

· Liquidation of budget surplus.

Two basic methods of financing deficit are used: loans from the population through the loss of securities and the emission of money.

The non-discretionary fiscal policy is due to the fact that to a certain extent, the change in the relative levels of government spending and taxes is carried out automatically. In this case, taxes and transfers act as automatic built-in economy stabilizers - cyclic oscillation shock absorbers that do not require conscious state intervention. Built-in stability is the mechanism of action of automatic stabilizers.

The state determines the standards of government spending and the amount of tax rates, but not the tax revenues themselves. The latter change and with a constant tax rate. In economic theory there are different points of view on the methods of conducting the fiscal policy of the state.

Supporters of the Keynesian direction are traditionally focused on creating effective aggregate demand as an incentive of economic development. Therefore, they consider tax cuts as the main factor in the growth of aggregate demand and, accordingly, the growth of the real volume of production. At the same time in the short term, the budget revenge on the budget, which is the education or Increase budget deficit.

Supporters of the theory of "Suggestions" are considering a decrease in tax rates as a Faetor increase cumulative offer. They believe that the reduction of the tax burden leads to income growth:

Population, and consequently, to the growth of savings;

Business, and therefore, to an increase in the profitability of investments.

Thus, tax cuts causes an increase in national production and income, which, in turn, not only does not reduce tax revenues to the budget and does not cause a budget deficit, but with more low bets Taxes provides an increase in tax revenues to the budget due to the expansion of the tax base (in accordance with the "Laffer effect").

Scheme 5 The impact of the fiscal policy on the aggregate offer.

Initially, the equilibrium within the framework of the national economy (the total demand - AD1, the total proposal - AS1) was achieved at the volume of production q, and the price level of P1. Reducing tax rates from the incomes of the population led to an increase in the cumulative proposal with AD1 to AD2. At the same place, the very comprehensive proposal is revealed to an increase in the equilibrium volume of the GNP and an increase in the price level (respectively Q2 and P2). An increase in the total demand at simultaneously a decrease in tax rates with the income of entrepreneurs led to an increase and the cumulative proposal with AS1 to AS2. A new equilibrium has been achieved within the framework of the national economy (the total demand - AD2, the aggregate supply AS2) with the amount of production Q3 and the price level of P3. It should be noted that the impact of demand taxes is carried out faster.

2.2 Economic Regulation Methods

Modern fiscal policy determines the main directions of the use of state financial resources, financing methods and main sources of treasury replenishment. Depending on the specific historical conditions in individual countries, such a policy has its own characteristics. At the same time, a common set of measures is used. It includes direct and indirect financial methods for regulating the economy.

Direct methods include ways of budget regulation. Funds of the state budget are funded:

v extended reproduction costs;

v unproductive state expenses;

v infrastructure development, scientific research, etc.;

v conducting structural policies;

With the help of indirect methods, the state affects the financial capabilities of manufacturers of goods and services and the size of consumer demand.

An important role is played by the tax system. Changing tax rates on various types of income by providing tax breaks, reducing the non-taxable minimum income, etc., the state seeks to achieve, possibly more sustainable rates of economic growth and avoid sharp rises and drops of production.

Among the important indirect methods that contribute to the accumulation of capital include the policy of accelerated depreciation. Essentially, the state frees entrepreneurs from paying taxes from a part of profits, artificially redistributed to the depreciation fund.

The state performs its regulatory functions through administrative and economic methods. For command economy Characterized by the predominance of administrative control methods. The system of state regulation of the market economy, on the contrary, is based on the use of economic methods. The fundamental difference between these two groups of methods is as follows.

Administrative, or direct, regulation methods limit freedom to choose a business entity. For example, policy planning tasks for the volume and assortment of products or centrally installed prices for goods and services - typical methods of administrative regulation in the planned economy - deprive the enterprise the possibility of an alternative use of resources. It is obliged to produce products in a given assortment and volume and implement it at a given price. In contrast, economic and indirect methods of state regulation do not limit the freedom of entrepreneurial choice. For example, a decrease in business tax or, say, a decrease in the interest accounting rate is typical methods of economic regulation aimed at growing production and strengthening the investment activity of enterprises. The latter increase investment and production volume is not because they have no other exit. They are completely free in the choice of production program and investment Policy. It is simply a decline in taxes and interest rates make an increase in production and investment more profitable than before.

The distinction between administrative and economic methods of state regulation to some extent conditionally. In order to use any indirect regulator, a preliminary administrative solution is necessary for the relevant government agencies, for example, a decision to change tax rates, on providing tax breaks or sale by the central bank of government bonds, in this sense any economic regulators carry administration to themselves. At the same time, any administrative regulator, directly forcing the economic entities to perform certain actions at the same time, has a secondary indirect impact on a number of conjugate economic processes. For example, an administrative increase in prices will not only directly determine their new level, but through prices indirectly will have an impact on the state of demand and suggestions, and in this sense it can be said that any administrative methods of regulation carry features characteristic of economic, indirect regulators. Nevertheless, the criterion discussed above allows, as a rule, to distinguish economic methods from administrative in practice. The distinction between them is fundamentally important in terms of the nature of market relations.

Chapter III Types of Fiscal Policy

3.1 Types of Fiscal Policy

Fiscal (budget-tax) politics is a system of regulating the government of the economy through changes in government spending, taxes and state budget states, in order to change the actual volume of production and employment, control over inflation and acceleration of economic growth. Fiscal policy, according to J. M. Keynes, it is customary to call the region of the economy directly related to the interaction of state bodies and all other business entities. This interaction is achieved through a system of state orders, taxation and transfer payments. Since the implementation of government spending means the use of state budget funds, and taxes are the main source of its replenishment, the fiscal policy comes down to manipulating the state budget.

Fiscal politics combines such large types of financial policy forms as budget, tax, income and expenses.

Among the numerous tasks of the fiscal policy forming the so-called tree of objectives are the mains are:

Sustainable growth of national income,

Moderate inflation rates,

Full-time,

Smoothing of cyclic oscillations of the economy.

The fiscal policy toolkit includes: manipulation of various types of taxes and tax rates, in addition, transfer payments and other types of government spending.

Various tools affect the economy in different ways. Government procurement, form one of the components of the total costs, and, consequently, the demand. Like private expenses, government procures increase the level of total expenses. In addition to public procurement There is another type of government. Namely - transfer payments. They are not included in the GNP, however, they are also included in the personal income and disposable income. The volume of private consumption rather depends not from national, but from disposable income. Transfer payments indirectly affect consumer demand, increasing the disposable income of households. The value of negative impact on cumulative expenses are taxes. Any taxes mean a decrease in the size of the disposable income. A decrease in disposable income in turn leads to a reduction in not only consumer spending, but also savings.

Modern fiscal policy determines the main directions of the use of state financial resources, funding methods and main sources of treasury replenishment, including direct and indirect financial methods for regulating the economy.

Direct related methods of budget regulation. The funds of the state budget are financed: extended reproduction costs; unproductive state expenses; development of infrastructure, scientific research, etc.; carrying out structural policies; The content of the military-industrial complex, etc. With the help of indirect methods, the state affects the financial capabilities of manufacturers of goods and services and the size of consumer demand. An important role is played by the tax system. By changing tax rates on various types of income, providing tax breaks, reducing the non-taxable minimum income, etc., the state seeks to achieve the most sustainable rates of economic growth and avoid sharp rises and drops of production. For the number of important indirect methods that promote capital accumulation refers The policy of accelerated depreciation. Essentially, the state frees entrepreneurs from paying taxes from a part of profits, artificially redistributed to the depreciation fund. However, in these cases, the depreciation is written off in size significantly exceeding the actual depreciation of fixed capital, as a result of which prices for produced by this equipment increases. If the accelerated depreciation expands the financial capabilities of businessmen, then at the same time it worsens the conditions for the sale of products and reduces the purchasing power of the population.

Depending on the nature of the use of direct and indirect financial methods, there are two types of state fiscal policies:

a) discretionary

b) Non-discretion

Fiscal policy tools are used by the state to influence the aggregate demand and total proposal, thereby influencing the overall economic conjuncture, to promote the stabilization of the economic situation, carry out anticyclic measures opposing excessive fluctuations in economic parameters that threaten the occurrence of crisis phenomena.

3.2 Discretionary Fiscal Policy

Under the discretionary fiscal policy is understood as a conscious manipulation of taxes and government expenditures in order to change the actual volume of national production and employment, control over inflation and accelerating economic growth.

Allocate two types of discretionary policies:

· Stimulating,

· Restrictive.

The stimulating budget and tax policy (fiscal expansion) is carried out during the decline period, depression, includes an increase in government spending, a decrease in taxes and leads to a budget deficit.

In the short term, it is intended to overcome the cyclic downturn of the economy and involves an increase in government departure, tax reducing or combining these measures.

In a longer-term perspective, the tax reduction policy may lead to the expansion of the supply of factors of production and an increase in economic potential.

The implementation of these goals is associated with the implementation of comprehensive tax reform accompanied by the restrictive credit-money policy Central Bank and changing the optimization of the structure of government spending.

The budget-and-tax policy (fiscal restriction) is carried out during the boom and inflation, includes a decrease in government spending, increasing taxes and leads to an excess of the state budget.

Its aims to limit the cyclic rise in the economy and involves a decrease in government spending, an increase in taxes or combining these measures.

In the short term, these measures make it possible to reduce the inflation of demand for the cost of growth of unemployment and decline in production. In a longer period, the growing tax wedge can serve as a basis for the decline in the total proposal and the deployment of the stagnation mechanism (a decline, or a significant slowdown in economic development), especially when the reduction in public spending is carried out in proportion to all budget items and does not create priorities in favor of state Investments in the labor market infrastructure.

A protracted stagflation against the background of ineffective government expenditure management creates prerequisites for the destruction of economic potential, which is often found in the economies of transitional periods, including in Russia.

As part of the discretionary policy, various social programs, government program Employment, changes tax rates.

The state employment program is one of the measures in the fight against unemployment and stabilization of the economy. This program is carried out at the expense of the state and local authorities. For example, widespread use in a market economy during the crisis of 1929-1933. Found the program of the organization of public works. According to this program, the state due to budget funds Organized various types of work for the population according to the principle of "just to occupy" - sometimes some pans dug, while others have buried them. Therefore, quite often, from the point of view of the economy, these programs were ineffective.

The main task of these programs was to stimulate the cumulative demand and remove the social stress in society under conditions of mass growth of unemployment.

Since these programs are rather waste, much more efficiently carry out regular anticyclic policies than to deal with the consequences of the crisis not the most effective way.

Of course, these employment programs can be modified. So, for the growth of employment, small enterprises can be encouraged to ensure maximum employment in their production. This practice is used in China.

In the conditions of normal economic development, the government must have a strategic and clear program in the field of employment in order to effectively use it in the conditions of the decline when people lose work. Employment programs are usually quite flexible. They are very effective in that, in contrast to public works programs, they require less costs and can be applied by local authorities on any local market.

Expenditures on social programs include pensions payments, various assistance programs to the poor in the population, the cost of education, medicine, etc. These programs allow you to stabilize economic development when the income of the population is reduced. The main disadvantage of all these programs is that they are introduced in the conditions of recession and it is hard to cancel when the economy is on the rise.

Changing tax rates from this point of view is more effective tool In the desire to stabilize the economy.

Thus, the reduction in income tax rates in a short-term recession can keep income from abbreviation, thereby preventing the increase in crises, increasing consumer spending.

But there is also a disadvantage. Temporary taxation of taxes is not always acceptable to combat a decline, as in a democratic society, as a rule, it is more difficult to increase taxes after overcoming the recession, it is much easier to organize political mood to fight unemployment than to combat inflationary gap and excessive employment.

Effective discretionary fiscal policy involves the competent diagnosis of occurring economic processes, on the basis of which the government sets its levers.

However, find out what the macroeconomics trends will fail completely. Therefore, the government can not always predict the actual directions of the economic development of the economy, which forces it to make decisions on setting up a fiscal policy with a certain delay. A temporary lag is formed between the need to configure economic levers of fiscal policy and decision-making.

The delay of the action of the necessary levers of discretionary policy is also associated with conventional administrative procedures for organizing events caused by the holding of a new economic policy.

The effect of the adoption of a new fiscal policy usually does not come immediately, because the investment of funds in the development of production pays off after the expiration of a sufficiently long time.

Marked delay, temporary lags Between the period of the need for the need for new directions of fiscal policy and receiving the expected positive effect on their use are superimposed on each other. This certainly worsens the possibilities of discretionary fiscal policies to quickly tune in to occurring changes in the economy and effectively adjust them.

3.3 Non-discretionary fiscal policy

The second type of fiscal policy is a non-discretionary, or policy of automatic (built-in) stabilizers. The limited features of the discretionary fiscal policy adapt to the needs caused by new economic proportions makes it necessary to supplement it with another type of fiscal policy capable of continuously adjusting tax revenues. This is automatically carried out using the so-called built-in stabilizers.

"Built-in" (automatic) Stabilizer - economic mechanism, allowing to reduce the amplitude of cyclic oscillations of employment and release levels, without resorting to frequent changes in government economic policy. As such stabilizers in industrialized countries, usually advocate progressive system taxation, system of state transfers (including unemployment insurance) and profit participation system. Built-in economy stabilizers relatively soften the problem of long time lags of discretionary fiscal policy, since these mechanisms are "included" without direct intervention of parliament.

Their essence lies in the linking of tax rates with the value of the income received. Almost all taxes are constructed in such a way that it allows to ensure the increase in tax revenues with an increase in the net national product. This concerns income tax on individuals, which has a progressive nature; income tax; per value added; Tax from sales, excise taxes.

The graph of the size of government spending is constant. In fact, they change. But these changes depend on the decisions of the parliament and the government, and not on the growth of the GNP (gross national product). Therefore, the schedule does not show the direct link of public spending on the increase in CNP. Tax arrivals during lifting grow. This is because sales and income increase. The seizure of the same part of income taxes restrains the rate of economic growth and inflation. As a result of the existing forces, in addition to the efforts of the government, the economy is prevented due to the imbalances during the rise.

During this period, tax revenues exceed government spending (T\u003e G). There is surplus-- the surplus of the state budget, which allows you to pay for debt state obligations taken into the depressive period of the economy.

The schedule displays and drop tax revenues during the period when the CHDP decreases, i.e. the production falls, which leads to the formation of a state budget deficit (G\u003e T). If the volume of tax revenues was preserved at the same level during the economic crisis, economic conjuncture would mean higher economic risks, which provoked further coagulation of production. It means that a decrease in tax revenues during this period objectively protects society from the growing crisis and weakens the fall in production.

The cyclic deficit (surplus) is a deficit (surplus) of the state budget caused by an automatic reduction (increasing) of tax revenues and an increase in the (reduction) of state transfers against the background of the decline (lifting) of business activity.

Built-in stabilizers do not eliminate the causes of cyclic oscillations of the equilibrium GNP around its potential level, but only limit the scope of these oscillations.

Based on data on cyclic budget deficits and excessions, it is impossible to evaluate the effectiveness of fiscal policy measures, since the presence of a cyclically unbalanced budget does not bring the economy to the state of full employment of resources, and may occur at any level of issue. Therefore, built-in economy stabilizers, as a rule, are combined with the measures of discretionary fiscal policies of the government aimed at ensuring the full employment of resources.

As a result, there is a structural deficit (surplus) of the state budget - the difference between costs (income) and income (costs) of the budget in terms of full employment. The cyclic deficit is often evaluated as the difference between the actual magnitude of the budget deficit and the structural deficit.

The tax system should be improved by the following most important areas:

Requires a decrease in tax burden. It is excessive since tax seizures in the compilation of the state budget have so far been planned in the amount of about half of the GNP. World experience and theoretical developments show that the level from which the mass flight from taxes begins, determines the low level of tax collection. In addition, as a result of the crisis of non-payment of enterprises, continuous production conditions are undermined;

It is necessary to change the structure of tax revenues due to the phased increase in the level of taxation of individuals (income and property), as well as property taxes and rental payments in nature-exploiting industries, which will ensure the growth of payments for the use natural resources. A sharp transition to the preemptive taxation of individuals is impossible, since low incomes of the bulk of the population do not yet allow paying such taxes;

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Financethey are a set of monetary relations and the use of resources through which the state exercises direct redistribution of national income in order to ensure incentives to the most efficient management process.

Note that finance is not money, but cash relations arising from the transition of a part of income from one owner to another. The state, local authorities, firms, population can act as owners here.

Financial relations are objective and form a system that includes economic ties arising:

Between the state and enterprises of various forms of management;

Directly between enterprises;

Within enterprises;

Between the authorities of various levels;

Between the state and public organizations;

Between the state and the population;

Between states.

The object of financial relations are financial resources, which include: net income, depreciation, taxes and non-tax payments, financial reserves, part of funds of public organizations, etc. In connection with this financial relations Express the process of distribution and redistribution of the cost of a social product and on this basis - the formation of funds from participants in the reproduction process.

On the basis of finance is formed financial system- A combination of financial relations and their relevant financial institutions that organize education, distribution and use of cash funds. In the conditions of the Command-Administrative System, the principle of democratic centralism is used, which involves the centralization of most resources from the state. In the conditions of a market economy, the principle of federalism is dominated, which involves the distinction between the functions and financial resources between the financial links of the system.

The main links of the financial system are:

Budgets of various levels of power;

Budgets and Funds of Social, Property and Personal Insurance;

Finance of enterprises, institutions, organizations;

Finance of the population.

The financial system is divided into centralized (state) and decentralized finances.

Centralized finances accumulated at the state level include budgets of various levels of government, extrabudgetary funds (Pension Fund, the Social Insurance Fund, the State Employment Fund, federal and territorial funds of compulsory medical insurance), as well as a loan.

Decentralized finances form:

Finance of enterprises that include the accumulation fund formed by the part of the profit remaining at the disposal of the enterprise and depreciation deductionsdirected to the update and replenishment of production assets; Foundation consumption; Reserve fund needed to cover temporarily emerging money needs;

finance of organizations and institutions;

budgets of families.

Finance is designed to perform various functions: reproducible, distribution, control and stimulating.

Reproductive functionis that finance play an important role inthe process of production of goods and services, circuit of fixed assets, training of qualified labor force. Increased investment creates prerequisites for accumulation, expansion of fixed assets. The growth of social spending directed to education, health care, social security, insurance, creates conditions for the preparation and reproduction of qualified labor force.

Distribution functionfinance means that with their help, the distribution of financial resources between the material and intangible spheres of production, budgets of various levels of government, enterprises, institutions, various social sectors, as well as the distribution of social product.

Control functionfinance suggests that with their help the government monitors proportionality in the distribution and use of material, labor and financial resources.

Stimulatingthe role of finance contributes to the expansion and improvement of production, complete employment, the development of scientific and technical cooperation, the introduction of innovation.

Thus, the functioning of finances is accompanied by the formation of economic relations on education, distribution and use cash income and the savings of economic entities, states and workers involved in the production and implementation of goods and services; Regarding the creation of centralized and decentralized funds funds.

Russia is experiencing great difficulties not only in the field of government, but also in the field of economics and finance.

A good knowledge of the financial sphere of activity is necessary today also because the country is experiencing a deep economic and financial crisis.

The past year showed the complexity of the development of economic events, the stroke of the budget process in the Russian Federation. Thus, the unreality of the budget for 2002, adopted under pressure from a number of sectoral ministries, some Departments of the Ministry of Finance, as well as under the influence of individual committees and factions of the State Duma and the Federal Assembly, largely guided political considerations, adversely affected its execution. By carrying out restrained financial policies, the Ministry of Finance and the Financial Bodies in the field covered costs only within the receipt of funds, as well as the loans of the Central Bank.

In 2004, old errors should not repeat. In this regard, the Government needs to develop a clear financial strategy. It is important to allocate the main trends in finance development, formulate the basic concepts of their use, outline the principles of organizing financial relations.

The problems of financial recovery worry today literally all. After all, what is happening currently in the financial sphere of activity is closely connected with the personal well-being of everyone. The amount of profit and taxes, deductions for social insurance and pensions, the price of shares and bonds, the forms of investing funds for the production and social sphere, etc. - Such issues are discussed today not only in government circles, they deeply worry each of us.

Specific tools for conducting state economic policy are primarily fiscal leverage, fiscal policy tools such as taxes, government spending, transfers. With the help of fiscal tools, the state can change the magnitude and direction of cash flows in accordance with the persecuted goals and the measures planned for their implementation.

In this paper, the financial system, economic and fiscal policy of the state, goals and types of fiscal policy will be considered in detail.

Unified, generally accepted classification of the types of economic policy does not exist, different authors are differently called individual types and in different ways form a general list of components of the state economic policy.

In the enlarged plan, it is customary to allocate fiscal (financial and budget politics), monetary (credit and monetary), foreign economic policy.

In wider plan, the state economic policy includes its parts such as social, structural, investment, privatization, regional, agricultural, scientific and technical, tax, banking, price, antitrust, environmental protection (environmental), foreign economic policy.

Famous financier a..m. Burman, allocated three main functions of finance:

1. Ensuring the management process of cash;

2. Control of the ruble;

3. Distribution.

A. M. Alexandrov and E. A. Voznesensky argued that finance is expressed in the formation of cash funds, the use of cash funds and control.

However, no one denies that finance is a set of monetary relations organized by the state in the course of which the formation and use of funds funds are carried out. And to the question, which is the source of formation of numerous funds at different levels, the answer happens, as a rule, one is a gross domestic product. It is possible to carry out the process of the distribution of gross domestic product using financial instruments: rules, rates, tariffs, deductions, etc., established by the state.

If you consider finance as a whole, then, apparently, it should be assumed that they perform two main functions: distribution and control.

The effect of the distribution function of finance implies from the essence of finance: ensuring relations related to the distribution and redistribution of the total social product (SOP), national income (ND) and net income (CH), the formation of income and savings; Creation of funds funds. The specific mechanism of action of the distribution function follows from the essence of the finance as relations on the distribution and redistribution of the part of the social product, the action of which occurs in the conditions of separation, separation and split value and real forms of the social product and national income.

The distribution function of finance reflects economic relations caused by the movement of net income, as well as its influence on the components and elements of the total product (creating conditions for the subsequent implementation of this product in a natural-real form through the commission of purchasing and sales acts).

So, the public appointment of the distribution function of finance consists, firstly, in the distribution and redistribution of part of the value of the cumulative social product, mainly net income, in cash in order to ensure expanded reproduction; Secondly, in the formation of potential to create a financial basis for the functioning of the state and the entire economic system of any socio-economic formation.

Along with the distribution function, finance play a control function . The control function is generated by the distribution function and manifests itself in monitoring the distribution of the total social product, national income and net income on the relevant cash funds and their target expenditure.

The control function quantitatively through the movement of financial resources displays economic processes associated with the distribution and redistribution of the cumulative social product. The control function is due to the normative nature of monetary relations. Regulations regulate both the conditions for the distribution of income and profits sent to expanded reproduction and the terms of payments to the budget (establishing categories of payers, objects, units of taxation, rates, funds for payments, procedures for calculation, etc.); funding from the budget (the procedure for opening budget financing and its use); lending; The formation and use of various cash funds of economic entities. It is the control over compliance with regulatory acts that express the essence of the distribution function of finance reflects in turn the content of the control function of finance. This consists of a dialectical and inseparable relationship between two finance functions. From here, the specific feature of the control function - the control function is a distribution function derivative.

The financial system in the broad sense of the word represents a combination of financial relations that exist within the framework of this economic formation, in the narrow sense of the word - this is a system of financial institutions, the socio-economic content, the functions and structure of which are determined by the state policy, including financial organizations and all structural Divisions of the State Tax Service.

The basis of the construction of the financial system is the three fundamental elements:

1. Functional purpose manifested in the fact that each system link performs its tasks; For example, the state budget expresses the distribution relationship between the state, enterprises, the population, due to the formation and use of the National Fund of Financial Resources. Property and personal insurance is one of the methods for creating reserve funds for citizens. Finance of enterprises express relationships on the creation and use of cash funds intended to ensure the diverse needs of the primary units of social production, fulfilling obligations to the state budget and commercial banks;

2. Territorality - Each Region, Republics have the appropriate apparatus of financial and insurance bodies;

The financial system includes national, sectoral and public financial relations. In general, the financial system is presented in Fig.1.

Figure 1 Financial System Scheme

Since finance is a carrier of distribution relations, this distribution occurs primarily between different entities. Therefore, in the total aggregate of finances forming the financial system, three main spheres are allocated (not counting households):

Finance of enterprises, institutions, organizations. Finance of enterprises are monetary relations related to the formation and distribution of money incomes and savings in business entities and their use to fulfill obligations to the financial and banking system and financing costs for expanded production, social services and material stimulation of working;

Insurance. A significant part of the financial system associated with the redistribution of funds coming from legal entities and individuals. Such activities are related to the possibility of the onset of sudden, unforeseen and irresistible events, entailing damage, which is subsequently "announced" between insurance participants;

Public Finance. There are monetary relations on the distribution of the cost of a social product and a part of the national wealth associated with the formation of financial resources of the state and its enterprises and the use of public funds on the costs of expanding the production, satisfaction of the growing socio-cultural needs of members of society, the needs of the country's defense and management.

The financial system is characterized not only by the composition of the parts of the parties, but also the flows of financial resources (financial flows), connecting the main agents of financial relations. Such agents should be considered the state budget, enterprises and entrepreneurial structures, households. In addition, financial flows associate these agents with a credit system and with foreign states represented by their governments, firms, funds, banks. As a result, a system of mutual financial bonds and flows arises, in a simplified form depicted in Figure 2.

Figure 2 Financial relations scheme in economics

Each of the arrow indicated on the scheme is a variety of financial relations, flows, relationships. Based on the general scheme of financial flows between economic agents, consider individual, most representative relations and financial relations at different levels. These include: "State Enterprise" (GP), "Enterprise-State" (PG), "State-State" (GG), "Enterprise-Population" (Mon), "Population-State" (NG), " Population-Enterprise "(NP)," Enterprise Enterprise "(PP)," Population-Population "(NN)," State-Population "(GG). The Communication "State-State" characterizes the redistribution, flow of funds from some state budget channels to others. Communication "Enterprise-Enterprise" reflects financial flows between enterprises, and the communication "Population-population" determines the flow of funds between individual groups of the population.

Direct methods include ways of budget regulation. Funds of the state budget are funded:

Expanded reproduction costs;

Unproductive state expenses;

Development of infrastructure, scientific research, etc.;

Carrying out structural policies;

With the help of indirect methods, the state affects the financial capabilities of manufacturers of goods and services and the size of consumer demand.

An important role is played by the tax system. By changing tax rates on different types of income, providing tax breaks, reducing the non-taxable minimum income, etc., the state seeks to achieve, possibly more sustainable economic growth rates and avoid sharp rises and drops of production.

Depending on the nature of the use of direct and indirect financial methods, economic science distinguishes two types of fiscal policy of the state:

Discretionary;

Non-discretion.

Figure 4 Types of Fiscal Policy

Allocate two types of discretionary policies:

Stimulating

Restrictive.

In the short term, it is intended to overcome the cyclic decline in the economy and involves an increase in government , Reducing taxes or combining these measures.

In a longer-term perspective, the tax reduction policy may lead to the expansion of the supply of factors of production and an increase in economic potential.

The implementation of these goals is associated with the implementation of comprehensive tax reform, accompanied by a constituent credit and monetary policy of the Central Bank and a change in the optimization of the structure of government spending.

The budget-and-tax policy (fiscal restriction) is carried out during the boom and inflation, includes a decrease in government spending, increasing taxes and leads to an excess of the state budget.

Its aim of limiting the cyclic rise in the economy and implies a decrease in government spending , Increase taxes or combining these measures.

Within the framework of the discretionary policy, various social programs are considered, the state employment program, changes in tax rates.

The state employment program is one of the measures in the fight against unemployment and stabilization of the economy. This program is carried out at the expense of the state and local authorities. For example, widespread use in a market economy during the crisis of 1929-1933. Found the program of the organization of public works. According to this program, the state at the expense of budgetary funds organized various types of work for the population on the principle of "just to occupy" - sometimes some pans dug, and their other injured them. Therefore, quite often, from the point of view of the economy, these programs were ineffective.

The main task of these programs was to stimulate the cumulative demand and remove the social stress in society under conditions of mass growth of unemployment.

Since these programs are rather waste, much more efficiently carry out regular anticyclic policies than to deal with the consequences of the crisis not the most effective way.

Expenditures on social programs include pensions payments, various assistance programs to the poor in the population, the cost of education, medicine, etc. These programs allow you to stabilize economic development when the income of the population is reduced. The main stage of all these programs is that they are entered in the conditions of recession and it is hard to cancel when the economy is on the rise.

Changing tax rates from this point of view is a more efficient tool in striving to stabilize the economy.

Thus, the reduction in income tax rates in a short-term recession can keep income from abbreviation, thereby preventing the increase in crises, increasing consumer spending.

Effective discretionary fiscal policy involves the competent diagnosis of occurring economic processes, on the basis of which the government sets its levers.

"Built-in" (automatic) stabilizer is an economic mechanism that reduces the amplitude of cyclic oscillations of employment and release levels, without resorting to frequent changes in government economic policy. As such stabilizers in industrial countries, a progressive tax system is usually performed, a system of government transfers (including unemployment insurance) and a system of participation in profits. Built-in economy stabilizers relatively soften the problem of long time lags of discretionary fiscal policy, since these mechanisms are "included" without direct intervention of parliament.

Figure 5 Built-in stabilizers, where:

G - government spending;

T- tax revenues

During this period, tax revenues exceed government spending ( T. > G. ). There is a surplus of the state budget, which allows you to pay for debt state obligations taken into the depressive period of the economy.

The schedule displays and drop tax revenues during the period when the CNP decreases, i.e. the production falls, which leads to the formation of a state budget deficit ( G. > T. ). If the volume of tax revenues was preserved at the same level during the economic crisis, economic conjuncture would mean higher economic risks, which provoked further coagulation of production. It means that a decrease in tax revenues during this period objectively protects society from the growing crisis and weakens the fall in production.

Built-in stabilizers do not eliminate the causes of cyclic oscillations of the equilibrium GNP around its potential level, but only limit the scope of these oscillations.

The tax system should be improved by the following most important areas:

Requires a decrease in tax burden. It is excessive since tax seizures in the compilation of the state budget to Siktor were planned in the amount of about half of the GNP. World experience and theoretical developments show that the level from which the mass flight from taxes begins, determines the low level of tax collection. In addition, as a result of the crisis of non-payment of enterprises, continuous production conditions are undermined;

It is necessary to change the structure of tax revenues through a phased increase in the level of taxation of individuals (revenues and property), as well as taxes on property and rental payments in nature-exploiting industries, which will ensure the growth of payments for the use of natural resources. A sharp transition to the preemptive taxation of individuals is impossible, since low incomes of the bulk of the population do not yet allow paying such taxes;

There is a need to reduce tax breaks. In today's period, when a global revision of the tax system occurs, the individualization of tax breaks is turning non-division and corruption. This individualization of tax rates is possible only and well-developed, established tax policies.

The combination of monetary policy and fiscal is used when the money supply is growing in order to prevent increasing interest rates. The central bank prints money to buy securities, and then the government covers its budget deficit with them. When such a device is happening, then curves IS. and LM. Shift to the right.

Figure 6 Money Fiscal Policy Device

Fiscal expansion shifts the curve IS. to level IS. " and shifts equilibrium from point E. exactly E ". At a high level of income, the demand for money is growing, the interest rate increases from i. 0 before i. 2 Through which investment costs are supplied. But the Central Bank can adapt fiscal expansion by releasing more money. Figure this is reflected by the shift of the curve LM. before Lm " and a new equilibrium point E ". Percentage rate remains at level i. 0 and the level of the product increases to i. 1 . It is now clear that the monetary fiscal policy can be used to expand the aggregate demand and increasing national product.

So, with a growing offer of money, a shift of the curve is observed LM. Down to the right, a decrease in the interest rate, the growth of total demand. On the other hand, you can use expansionist fiscal policy shifting the curve IS. up to the right. The alternative between monetary and fiscal politics as stabilization policy tools is a difficult question.

It is important to consider how they affect the growth of aggregate demand. In this regard, there is a distinct difference between monetary and fiscal policy. Monetary policy has an impact in stimulating the percentage-dependent components of aggregate demand, especially investment costs. Combining proof of this is the rapid and strong effect of the impact of monetary policy for housing construction.

Fiscal policy, on the contrary, has an impact through the purchase of goods and services or through the change in taxes and transfers (under state-owned means referred to the defense expenses, reducing taxes on corporate incomes, contributions to social supply).

Consider the impact of the components of the fiscal policy on key variables. One of the interesting cases is investment subsidies, when the state subsidizes the investment, therefore, as if paying part of the expenses of each company on investment, i.e., at each percentage level, there are now planning more investments (Fig. 7a).

Figure 7 Effect of Investments on GNP

Curve IS. (Fig. b) is shifted by the magnitude of the growth in investment (Fig. A) (the time multiplier a) is still valid. New equilibrium is achieved at the point E ". The interest rate is growing, but it does not cancel the impact of investment subsidies.

The figure shows the economy, originally located at the point E. with part-time, and then reaching the level of product release y * With complete employment. To achieve this product level, you can use fiscal policy (expansion) with progress to point E 1 (with more high bid percent). You can choose a monetary expansion leading to the state of complete employment with a lower interest rate. (E 2). You can also choose a combination of fiscal and monetary policy leading to any intermediate state. (Monetary expansion shifts LM to the right down, the fiscal policy shifts the curve IS. Right up). Reducing the interest rate in the case of monetary expansion means that investments will increase from E. 2 before E 1. Both financial policies increase the product, but their influence on various sectors of the economy is different. It is necessary to decide what will give the greatest benefit.

Conservatives prove the need to reduce taxes. They support stabilizing policies in which taxes are reduced during the regression period and the government are reduced during the boom. Others believe that it is necessary to expand the field of state activities in the field of education, security ambient, training, etc., and therefore, to support expansionist policies in the form of government growth is proved that it is necessary to act through the decline in the interest rate supporting the growth of investment spending, i.e. government figures can choose such a policy that will not only provide the economy to The state of complete employment, but also will assist in solving other problems.

Figure 8 Choice between monetary and

fiscal politics

Tax policy - part of the fiscal economic policy,
manifested in the establishment of tax species, tax objects,
tax rates, conditions for collecting taxes, tax breaks. All these parameters state regulates in such a way that the flow of funds by paying taxes ensured the financing of the state budget. But at the same time you have to meet with the main
Contradict the tax and all fiscal policy.
The higher the tax burden, the lower, starting from a certain limit,
desire and opportunity to pay taxes and that much more important, the more
damage caused by production, creating a taxable product,
Challenge taxes. High taxes are pushing the tax tree itself,
which feeds them. So the basis of the State Tax Policy
must be not high, but rational tax rates.
Another thing is that the state has time to associate itself with such budget
obligations of expenses, which is forced to seek salvation in tax
Earlings to ensure budget expenditures.

The tax policy of the state is connected not only with the provision of revenues to the budget, but also with the structural and investment policy. Adjusting taxes, tax rates, tax breaks, the state can stimulate the development of certain types of industries, to influence the consumption structure, encourage investment in the development of the economy.

Thus, the fiscal policy, being the most powerful direction of state economic policy as a whole, combines a set of a wide variety of financing tools, budgeting, taxation.

Evaluation Evaluation Fiscal Policy Extremely
problematized.

And discretionary, and automatic fiscal policy play an important role in the stabilization activities of the state, however, nor, nor the other are panacea from all economic troubles. As for automatic policies, its inherent embedded stabilizers can only limit the scope and depth of oscillations economic cyclebut completely eliminate these oscillations they are not able to.

Even more problems occur during discretionary fiscal policy. These include:

The presence of temporary lag between decision making and their impact on the economy;

Administrative delays;

Addiction to stimulating measures (tax cuts - a popular event in political plan, but an increase in taxes can cost parliamentarians). Nevertheless, the most reasonable use of tools and automatic, and discretionary policies can significantly affect the dynamics of social production and employment, reducing inflation rates and solving other economic problems.

Consider the nature of the fiscal problems in Russia in the transition period. It lies in the fact that they are not able to decide once and for all. They can be reborn not only in case of emergency situations (for example, war or natural disaster), negative external shock or just deterioration of the economic situation. The slowdown in the tempo of the necessary institutional and structural reforms, as well as the weakening of financial discipline, very quickly leads to serious fiscal difficulties.

Different rates and ways to implement the transformation process in individual countries do not allow to offer a unified characteristic of fiscal problems in the post-socialist world.

From the data contained in Table 2.1, it can be concluded that the main cause of unsuccessful or late macroeconomic stabilization in Russia was the incompleteness of the external and internal liberalization of their economies, the income of the necessary structural reforms (primarily in agriculture, fuel - energy and military-industrial complex), "soft" financing of the unreformed sector of state-owned enterprises and banks, as well as the political and organizational weakness of the main state institutions (for example, the tax and customs inspectorate).

Table 2.1.

Data on fiscal policy in Russia
In 1991-1994 (as a percentage of GDP)

*Position*	*1991 r.*	*1992 r.*	*1993 r.*	*1994 r.*
*Federation budget*
Revenues	22,8	16,6	13,7	11,0
Costs	23,6	27,4	20,3	21,9
Balance	-0,8	-10,7	- 6,7	-10,9
*Regional budgets*
Revenues	...	17,6	15,7	17,5
Costs	...	17,0	16,0	17,0
Balance	...	0,6	-0,3	0,5
*Balance of extrabudgetary funds*
- 2,2	2,5	0,6	0,5
*Extrabudgetary import subsidies*
- 4,2	-11,9	-2,1	...
*Balance of the consolidated budget*
Subsidies	...	8,9	8,6	7,5
Balance	-5,7	-18,8	-7,6	-9,9

The policy of slow reform and further financing of the ineffective sectors of the economy conducted under the populist social slogans of social protection of the population (especially the poorest layers), as well as mitigate the severity of the transformation process, actually imposed a huge burden of inflation tax on all society and caused numerous pathological phenomena to life, usually accompanying high inflation. It should also be borne in mind that a long period of very high inflation usually leads to a significant shocking economy and the destruction of the tax base for a long time. That is why social spending should have been reduced.

As the table shows, Russia, it was possible, after all, to achieve a serious reduction in inflation. However, a fairly high budget deficit has been preserved at a low or even very low level of budget revenue.

Table 2.2.

Annual inflation

( december to December, in percent)

*1991*	*1992*	*1993*	*1994*	*1995*	*1996*	*1997*
144	2501	837	217	132	22	14

In 1994-1995 There was an interesting controversy between Jeffrey Sax and the IMF regarding the strategy of conducting primary macroeconomic stabilization in post-socialist countries against the background of unsuccessful attempts to stabilize in Russia in 1992-1993. Jeffrey Sax accused the IMF in a tight approach to the requirement of fiscal balance, not taking into account political realities (this criticism was not true, since in the framework of the IMF system restructuring programs in force in the CIS countries in the CIS countries agreed to a very high budget deficit, up to 10% GDP, at the level of monetization of the economy no higher than 20% of GDP), offering, for its part, a fixed policy currency rate as the main anti-inflation anchor supported stabilizational foundationcreated international financial organizations and states of developed countries (according to Poland in 1990). According to this concept, a securely fixed currency rate must quickly reduce inflation expectations and increase the demand for national currency, expanding, thereby, the field of maneuver in the field of monetary and fiscal policy. Moderate fiscal deficit should be financed by foreign financial help and the release of treasury commitments.

Anti-inflation programs in those CIS countries, where they ended with success, went actually according to the scenario proposed by Jeffrey Sax. Almost everywhere, the key role was played by the actual stabilization of the exchange rate (although often the course was formally floating), as well as a sharp limitation of emission financing of the budget deficit and quasi-budgetary operations of central banks. However, the budget deficit itself remains significant - as a rule, about 5% of GDP and higher. Its funding is carried out primarily at the expense of foreign assistance and the issuance of government securities.

International assistance in grants and preferential credits (First of all, the IMF and the World Bank) played a significant role. Russia used external financing, but in most cases these were loans obtained on more or less normal market conditions. Russia has greatly developed internal borrowing by issuing a different type of treasury commitments and government bonds. Situation in international financial markets in 1996 and the first half of 1997, i.e. The presence of free capital and the readiness of investors to invest in the so-called new market economies ( emerging Markets.) contributed to the development of this relatively cheap and easily accessible source of funding budget deficit (especially attractive in the conditions of the currency course stability).

However, large-scale internal and external borrowing allows you to solve fiscal issues and ensure macroeconomic stability only for a short time. The growing amount of the public debt (especially in the conditions of the continuing fall of officially registered GDP) very quickly exacerbates the burden of current interest payments and can easily lead to the liquidity crisis of public finances.

The situation in Russia does not look very optimistically, since the significant debt inherited from the USSR is superimposed by rapidly growing new commitments.

Series financial crises in new market economies in 1997, and the growing instability of international financial markets Abruptly limited the possibilities of relatively cheap external financing.

The actual picture of the balance of public finance in Russia is usually much worse than this can be concluded from official budgetary data. This is because the cash deficit of the budget does not reflect the actual balance of public finance, and the officially registered state debt - all actual and potential obligations of the state.

So, August 1998. Defalt - not only in GKO-OFZ, but also on the currency obligations of private firms and banks. Russia's debts were considerable, but not critical: internal debt - about 40% of GDP, all external less than 50% of GDP. Also increased the rupture on ruble and dollar interest rates, but not at the rates of dollar loans of Russia and other countries, which meant distrust russian currency, not a government solvency. Financing almost 1/3 of all expenses through the sale of GKO-OFZ, the state lined up the pyramid and she had to collapse - but after three years, and not now. What gave the restructuring of the GKO: savings of $ 2 billion a month before the end of 1999 in the form of deferred payments. At the same time, direct losses (the possibility of borrowing funding budget deficit) are a similar value. Plus, indirect losses associated with loss of confidence in the state and financial institutions and the seizure of deposits. All this led to the launch of a printing machine, inflation.

Currently, the disadvantages of financial policies that deterrent economic and social development Russian Federation. These include:

Dogmatic (non-macatic) nature of financial policies, its inability to respond quickly to changing conditions for the development of our state;

Lack of strategic development;

Carrying out partial, low-rated tactical measures focused on momentary benefits;

Out of Financial Policy from actual state affairs in the economy;

Violation of the balance of the state budget of the Russian Federation;

Residual approach financial base Satisfying the social needs of citizens.

All this directly affects the underdevelopment of the budget system and financial policy of the country.

In conclusion, it must be said that, despite some negative trends in Russian financial policies, the reforms are discovering extensive development prospects such as the public and private sector of the economy.

Now Russia goes on the complex path of reforms. Undoubtedly, the policy held by the Government in the field of finance is ambiguous. It contains both positive aspects and many negative points. Large, often negative impact on it is provided by the political aspects of economic decisions, liberating inflation and increasing the already large budget deficit.

The requirements for agricultural, industrial and military lobby are prevented from an adequate assessment of the economic situation. In turn, the desire of various parties to fulfill the punishment of their voters at any cost, despite the complexity of the economic situation, an increase in the costs of the state apparatus. As well as unpromising decisions of the government, which, going about the powerful lobbyist groups and felt their strength of the subjects of the Federation, is trying to please each of them, proportionately distributing scant budget revenues and thus finally neutralizing the modest benefit that they could bring, whether they are concentrated On any one priority project. All this, of course, negatively affects the objectivity of financial and budget policies, the general situation in the country, and, ultimately, the level of life of the population.

For curious cases, when not yet received loans of the International Monetary Fund are already laid in the budget, also does not add confidence in the future. However, despite the difficulties, always accompanying the transition economy, I would like to express hope that reforms in the public sector will have its positive impact on the general economic situation in the country and in charge with other state regulatory activities will put on their feet to the domestic economy. I also see that significant Contribution In strengthening the economic base of Russian national economy, the private sector of the economy will provide financial policy to provide maximum growth opportunities.

1. Bulatova A.S. Economy: textbook. M.: Beck.1994

2. Course of economic theory / ed. M.N. Chepurin, E.A. Kiselev, Kirov, Asa, 1999

3. Macroeconomics // T.A. Agapova, S.F. Sergey .. - M., 1997.

4. General Finance Theory: Textbook / L.A. Droboxin, Yu.N. Konstantinova, L.P. Oaken et al.; Ed. L.A. Trobozic. -M.: Banks and stock exchanges. Unity, 1995

5. Rezberg B.A. Economy course. M.: Infra, 1999

6. Finance theory: Tutorial /NOT. Hare, M.K. Fisenko, i.e. Bondar and others - 2e ed., Stereotype MN: Higher. Shk., 1998

7. Finance / V.M. Radionova, Yu.Ya. Vavilov, L.I. Goncharenko et al; Ed. V.M. Rodionova. -M.: Finance and Statistics, 1995

8. Finance: Tutorial / Ed. prof. A.M. Kovaleva. - M.: Finance and Statistics, 1997

9. Economic theory: Tutorial. 2e-ed. Pererab. and add. / He. Basilev, A.V. Bondar, S.P. Gurko et al.; Ed. N.I. Bazyleva, S.P. Gurko.- M.: BGDU, 1997

10. Economic theory (political economy): textbook / under the general ed. Acad. Viyapina, Acad. G.P. Zhuravleva. M.: Infra-M, 1999

2. Budget system of Russia

3. The essence and function of taxes

4. Fiscal policy of the state

1. Success, structure and function of finance

Currently, finances are economic relations that arise in the process of education and use of funds funds of enterprises, states, municipalities and the population.

Finance execute a number of important functions in the economy. The main ones are:

Distribution - carried out in the process of circulating the resources of the enterprise, which is directly related to the formation and distribution of funds for financial resources, ranging from capital capital to the distribution of its profits;

Redistribution - is implemented by the state through a system of centralized finances through the accumulation and provision of funds to individual sectors and enterprises;

Reproductive - operating funds of financial resources, the state and enterprises regulate the reproductive process;

Stimulating - is carried out through the tax system, budget financing, financial markets in order to develop the subjects of the market economy and increase economic growth rates;

Control - is implemented through the system of state and non-state financial control in order to improve the efficiency of monetary resource management.

Financial system is intended to implement financial functions. The financial system is the form of organization of monetary relations between all business entities on the distribution and redistribution of the aggregate social product.

The structure of the financial system of Russia can be represented as the following scheme.

Figure 1. - Structure of the financial system of Russia.

This scheme clearly demonstrates that the basis of the financial system is the finance of enterprises, since it is precisely the monetary filling of all other elements of the system. But the central link of the financial system is the state budget, due to the fact that with its help, the redistribution of monetary resources between the economic entities is carried out.

2. Budget system of Russia

The concept of "budget" is the financial plan of the state (or municipality) for a certain period, most often for one year, which is an estimate of income and expenses; The form of education and spending fund of funds intended for financial support for the tasks and functions of the state and local government.

The combination of the federal budget, budgets of the subjects of the Federation, local budgets And budgets of state extrabudgetary funds forms the budget system of the Russian Federation. The principles of its construction are:

The principle of unity of the budget system. It suggests a single legal framework, form of budgetary documentation, the classification codes of budgetary articles, etc.;

The principle of distinction of income and expenses between the levels of the budget system. It means fixing the relevant types of income and powers to exercise costs for the relevant state authorities and local self-government;

The principle of completeness of the reflection of income and expenses. In accordance with this principle, all income and expenses in full must be prescribed in the budget;

Principle of budget balance. This means that the volume of budgetary costs must comply with the total volume of budget revenues and earnings from sources of financing its deficit. The Budget Code of Russia prohibits the planning of the budget surplus at the regional and local level and limits the size of the deficit;

Principle of efficiency and economy of use of budget funds;

Principle of publicity. This principle requires a mandatory publication in the open seal of approved budgets and reports. Secret articles can only be approved as part of the federal budget;

The principle of budget reliability. Suggests the reliability of the forecast of socio-economic development and the realism of the calculation of income and budget expenditures;

The principle of targeting and targets of budget funds. It means that budgetary funds stand out at the disposal of certain recipients with the designation of their direction to finance specific goals.

The central place in the budget system occupies the federal budget. Its profitable part is formed at the expense of a part of federal taxes, revenues from foreign economic activity, from the use of state ownership, part of the profit of the Central Bank and other sources.

The structure of the expenditure part (according to the functional classification of the budget) includes costs of public administration, national defense, judicial authorities, law enforcement, social sphere, public debt service, the provision of financial assistance to the subjects of the federation and other expenses.

The excess of the revenue part of the expenditure is formed by the budget surplus. In economically developed states, it is not planned since the 60s of the twentieth century, as the surplus leads to the removal of funds from the national economy, which holds back economic growth. However, in Russia, the federal budget is planned with a surplus since 2001 in order to combat inflation.

The main sources of financing the deficit of the state budget are:

1) issuance of new money or emission method of financing. However, this method leads to inflationary consequences, so it is not only trying not to use, but also prohibit legally, as, for example, in the United States or in Russia (since 1994). To some extent to this method can be attributed to the borrowing of the government at the central bank, which causes the actual increase in the money supply;

2) State loans within the country and abroad. This method of financing the deficit is more common, since it does not cause inflation, but it leads to the emergence of public debt.

State debt is the amount of outstanding state loans and other financial obligations of the state. Unlike borrowing enterprises, the national credit is most often sent not to production activities, but to cover the budget deficit. Payments on it are not carried out by increasing profits, but at the expense of taxes.

Taking into account the sphere of placement, public debt is divided into internal and external. Domestic debt is usually formed by loans decorated by issuing and selling government securities. It leads to the redistribution of income among the population in favor of state lenders, shifts payments on future generations, increases the costs of the budgets of the following years, etc.

External debt arises both through the placement of government securities, and at the expense of loans from other countries, foreign banks, international financial institutions (International Monetary Fund, International Bank for Reconstruction and Development, etc.). External debt payments lead to the loss of foreign economic revenues from foreign economic activity, reduce the possibility of economic development. The country may fall into financial dependence on other states.

The budget deficit may occur not only when forming, but also in the execution of the budget, when tax receipts will be lower than planned. In this case, the budget legislation of Russia provides for the possibility of a sequestration - proportional reduction in the expenditure articles of the budget. If tax revenues are higher than scheduled indicators, then additional funds go or pay for public debt, or to increase the expenditure articles of the budget.

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