Public finances are certain relations between the state and citizens and legal entities in the collection and disbursement of funds.These funds are used to provide the functions of government.
structure of public finances include the budgets of the subjects, municipal (regional) governments, the federal budget and trust funds (state and entities) extra-budgetary nature.Organization of government funds is inextricably linked with the organization of government regulation and levels.For the federal structure characteristic of a three-tier system.It contains federal (central) government, regional government (national, territorial, regional, land, etc.), as well as municipal authorities (local, regional) level.For unitary countries (is a single entity) is characterized by a two-level management of public finances.It included local and central regulation.Assigned to each level of the scope of authority acting as the cause and the amount of income and the order according to which the work on the formation and use of these revenues.According to the constitution of the country the main issues on education spending and its profits could be addressed at the central or regional level.
Public finances represent the core activity of the country within the framework of any economic system.However, in the planning and distribution of government acts as the owner of the majority of enterprises.This allows the power to dispose of and financial resources of the overwhelming majority of business objects.In a market economy the funds decentralized.A significant proportion is drawn outside the sector of government regulation.Funds from non-public sectors of their respective business entities (public organizations, households, businesses, etc.).Thus, the government can only regulate the movement of its own funds.At the same time on the finances of other economic sectors can only have an impact.
Public finance a number of functions.
primarily perform tasks by means of a redistribution of the national income between the government and enterprises, the public, non-production and production sectors of the economy, as well as between regions of the country, material production, forms of management and ownership, social groups.
Public finances performed and reproductive function.The decision of the relevant tasks aimed at the reproduction of the main productive power - man.This is manifested in the development and strengthening such areas as health, education, social security and others.Moreover, this feature provides for the participation of the state in the development of science, industrial and social infrastructure, stimulating the economy, providing employment of citizens.
challenging task is to increase the interest of all subjects related to education and expenditure of funds in a more productive and efficient work, accelerating scientific and technological development, enhancing the competitiveness of goods and services to foreign and domestic markets.
planned function is realized in the course of formation and realization of the budgets of all levels and through extra-budgetary funds.
social function of public finance can solve various social problems.
