centralized finance - it is the relations arising from the state in the process of formation, distribution and use of trust fund money.This type of finance (when viewed as a set of cash flows) tend to accumulate in the first public accounts of the country's central bank, and then distributed to the budget and extra-budgetary funds.
They contribute to the realization of the main goal, which the state strives to achieve the financing of basic social and economic programs, ensuring the control of the state apparatus and military reserves of the country.The financial system of any country including centralized and decentralized sector.The latter implies that the financial relations in the process of interaction between different economic entities.
As noted above, the central finance form a set of relations on the accumulation and management of funds in the municipal and public sector.The basis of the relationship of cash flow - a single process that connects the cash and cashless cash flow, ensuring the satisfaction of the requirements and obligations of counterparties.In other words, due to them being expanded reproduction process.Centralized finances are in close relationship with the decentralized.Thus, the state budget and the volume of incoming funds to the treasury largely depend on the performance of individual companies and the development of individual sectors of the economy.
centralized and decentralized finance the same function.
Planning fundamental objectives that are crucial to the economy.Establishment of the main landmarks of great importance for the future activities of individual companies, and government agencies.If we talk about a central sphere, the execution of this function is shown in the approval of annual budgets and plan balances.
organizational function requires a clear structure, each element of which is endowed with special powers and responsibilities.And to facilitate and streamline the activities of each structural element, that is the authorized state body, developed a clear classification of the budget, which greatly accelerates the process of distribution of funds.
centralized finance perform catalytic function.It is manifested in a redistribution of funds to needy businesses and organizations to support strategically important sector for the economy management.
In addition, government authorities monitor the activities of all the elements of the economic system and determine the degree of their compliance with the criteria, rules and regulations.The monitoring function causes the development and adoption of a set of laws and administrative law.Dominant position takes control over the use of funds received from the budget.Thus, the central finance subject to strict supervision.
