Economic functions of the state

In various types of economies, the state plays an active role in the formation of market macroeconomic processes. It implements the political, social and economic principles of the civil society.

Economic functions of the state in a market economy, as a rule, consist in regulating weaknesses of the market mechanism - in those cases when there is no independent correction of the situation, or when there is an ineffectiveness of the market impact. In such cases, the state creates equal conditions for the competition of entrepreneurs, limiting the power of monopolies. It takes care of producing the necessary quantity of services and goods in those cases when the market mechanism can not properly meet the needs of the population.

The economic functions of the state are manifested in the socially equitable distribution of incomes, which the market does not provide. The state is obliged to take care of the elderly, the poor and the disabled. It should pay attention to the sphere of scientific fundamental developments. This need arises because of the reluctance of entrepreneurs to deal with such a matter due to high risks, extreme high costs and a lack of quick income.

The economic functions of the state are also in the regulation of the labor market. State bodies take measures to prevent and reduce unemployment, as the market for the right to work does not guarantee.

Economic goals and functions of the state

The main functions of the state in the field of economy include:

1. The creation of legislation that allows for economic decisions. State bodies draft and adopt laws that regulate the activities of organizations and enterprises of various forms of ownership, as well as entrepreneurs, define the duties and rights of citizens.

2. Ensuring economic stability. With the help of credit, monetary, budgetary and fiscal policies, the state takes measures to prevent a decline in production, reduce unemployment, reduce inflation, maintain the national currency and maintain a stable price level.

If the market mechanism fails to maintain the structural and macroeconomic balance in these processes, the state intervenes.

The economic functions of the state consist in the development of a development strategy, the formation of an entrepreneurial and investment climate and the social conditions of the economy.

The state organizes the production of services and goods, which the private sector does not pay due attention. It creates conditions for the successful development of communications, transport, agriculture, is engaged in determining the costs of science and defense, implements and forms programs for the development of health and education.

State bodies provide social protection and provide social guarantees, which are to determine the minimum wage, disability pensions, old age, unemployment benefits and various types of assistance to low-income categories of the population.

With the help of the state, the national business is supported in the external world, its activities are coordinated in order to increase the competitiveness of the domestic economy in the conditions of the world economy. The state takes measures to counteract factors and threats of instability, provides economic security, and at the proper level supports the defense capability.

In addition to general principles, the state's economic functions are manifested in the regulation of specific spheres and sectors of the economy, as well as its development in certain regions of the country.