The economic concept of finance

Such economic relations, which are aimed at the process of formation, distribution and further use of monetary resources of various centralization for the state to fulfill its tasks and functions and create prerequisites for reproduction, characterize the very concept of finance.

The main features of finance

• In the course of such relations, subjects are endowed with different rights, one of which (the state), in addition to rights, has extraordinary powers;
• Two entities are linked by monetary relations, in which money is the material justification for the existence and organized work of finance (finances exist only if money is available);
• The formation of the budget, as a general state fund of monetary resources, is the result of such relations (such relations can be classified as a category of funds);
• As a tool for the permanent receipt of funds in the budget, the state has chosen so-called coercive measures. To collect taxes and other payments is impossible without the support of legal and legislative documents and without effectively functioning fiscal bodies.

What is the basis?

The scientific concept of finance can be rephrased, as an association with processes in the life of society, lying on the surface and manifested by the support of various forms of cash flow, both cash and non-cash.

The result of any financial transaction is the movement of monetary resources. It can be the transfer of tax collections to the revenue part of the state budget or the formation of intra-enterprise resources of the enterprise, and it can also be about transferring funds to the accounts of state extra-budgetary and charity funds.

Despite the real visibility of the movement of money, this does not allow us to fully disclose the concept of finance. In order to somehow understand its nature, it is necessary to determine those general characteristics and properties that underlie the phenomena occurring in the financial sphere. It is necessary to understand the relations underlying the participants in the production process and social relations.

Since these relations take place to be directly in the course of social production, their character, accordingly, has a coloring of production relations.

At what stage do you have finances?

Relations in the economic sphere are very diverse: they can arise at different stages of the reproduction process, including all levels of economic relations and all areas of public work.

Finance, the concept of which we are considering, act in a role that allows us to display relations in production, and have a specific purpose for the life of society. The concept of "finance" is characterized by the most important distinguishing feature - it is their support by money signs. Without a monetary equivalent, the very existence of finance is impossible. If you remove money, then finance as a public category, too, will not be able to function, since the concept of finance implies the presence of the former.