The economic concept of Finance

Such economic relations, which are aimed at the process of formation, distribution, and further use of the financial resources to perform various centralized state their objectives and functions and to create preconditions for reproduction, characterized by the notion of Finance.Key features


  • during such relations actors are endowed with different rights, one of which (the government) in addition to the right to possess extraordinary powers;
  • two subjects are linked money relations in which money is material and the rationale of having organized the work of Finance (Finance, there are only subject to the availability of money);
  • budgeting, as a general fund of the state of resources is the result of such a relationship (such relationships can be classified as equity);
  • as tools to keep receipts in the budget funds the state has chosen the so-called coercive measures.To levy taxes and other charges is impossible without the support of legal and legislative documents and without effectively functioning fiscal authorities.

What is the basis?

scientific concept of finance can be rephrased as a kind of association with the processes in the life of society, lying on the surface and manifests itself through various forms of support cash flows, both cash and non-cash.

result of any financial transaction is to move funds.This could be the transfer of tax revenues to the revenue of the state budget, or the formation of intra-enterprise resources, as well as it could be a deposit of funds to the accounts of state extra-budgetary funds and charities.

Despite the appearance of a real mass movement of money, it is not possible to disclose the full term finance.To somehow understand its nature, should be to identify the common characteristics and properties that underlie the phenomena occurring in the financial sector.It is necessary to understand the relationship underlying the participants in the production process and public relations.

Because these relationships are taking place directly in the course of social production, their character, respectively, is the color of industrial relations.

At what stage there are finances?

very diverse relations in the economic sphere, they may occur at different stages of the process of reproduction, including all levels of economic relations and all areas of social work.

Finance, the concept that we are considering, acting as capable of showing relationships in production, and have a specific purpose for society.The concept of "finance" is characterized by a key feature - it is their support money signs.No cash equivalent is not possible existence of Finance.If you remove the money, as public finance category, too, will not be able to function, as the concept implies the existence of Finance first.