Public Finance

Public finance is a certain relationship of the state with citizens and legal entities in the course of collecting and spending money. These funds are used to provide government functions.

The structure of public finances includes the budgets of the subjects, municipal (territorial) government bodies, the federal budget, as well as trust funds (states and entities) of an extrabudgetary nature. The organization of government money is inextricably linked to the organization of government regulation and its levels. A federative device is characterized by a three-level system. It contains the federal (central) government, regional governments (republican, provincial, regional, land, etc.), as well as municipal (local, territorial) level bodies. Unitary countries (which are a single entity) are characterized by two-level management of public finances. It includes local and central regulation. The levels of authority assigned for each level, the functions performed determine the amount of income, and the order in which these revenues are formed and applied. According to the country's constitution, the main questions on education of profit and its expenditure can be solved at the central or regional level.

Public finance is the basis of the country's activities within any economic system. However, under the conditions of the planning and distribution system, the government acts as the owner of most enterprises. This enables the government to dispose of and financial resources of the vast majority of economic entities. In a market economy, cash is decentralized. A significant proportion of them are outside the government regulation sector. Funds from non-state industries belong to the relevant economic entities (public organizations, households, enterprises and others). Thus, the government can regulate the movement of only its own funds. At the same time, the finance of other sectors of the economy can only have an impact.

Public finance performs a number of functions.

First of all, the funds fulfill the tasks of redistributing the national profit between the government and enterprises, the population, the non-production and production spheres of the economy, as well as between the regions of the country, the areas of material production, forms of management and property, and social groups.

Public finance also performs a reproductive function. The solution of the corresponding tasks is aimed at reproducing the productive basic power - the person. This is manifested in the development and strengthening of such spheres as health care, education, social security and others. In addition, this function provides for the state's participation in the development of science, industrial and social infrastructure, stimulating the economy, and ensuring employment of citizens.

Stimulating tasks are reduced to increasing the interest of all entities associated with the formation and spending of funds in more productive and efficient work, accelerating scientific and technological development, increasing the competitiveness of goods and services in the external and internal markets.

The planned function is implemented during the formation and implementation of budgets of all levels and through extrabudgetary funds.

The social function of public finances allows solving various social problems.