Theoretical aspects and the basic provisions of the state financial policy

Introduction

 

Chapter 1. Theoretical aspects and the basic provisions of the state financial policy

 

1.1 Summary of finance, financial relations and the country's financial system

 

1.2 Content, meaning and mechanism of functioning of the financial policy of the State

 

1.3 The main functions and principles of finance

 

Chapter 2. Analysis of the Financial Policy of the Republic of Kazakhstan

 

2.1 The financial mechanism as an instrument of fiscal policy

 

2.2 Policy of financial stabilization in Kazakhstan

 

Chapter 3. Modern trends in the financial policy of Kazakhstan

 

3.1 Areas of monetary policy

 

3.2 Ways of improving the tax and budget policy

 

3.3 Trends in the further development of investment and foreign trade policy in Kazakhstan

 

Conclusion

 

References

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Introduction

 

Finances are a very complex social phenomenon. They cover a wide range of exchange-distributive relations, which are displayed in the various cash flows. When a single entity in this relationship are highlighted certain elements that have their own characteristics and peculiarities. The study of finance is based on an understanding of how they need, the nature and role in society and in the detailed mastering of specific forms of financial relations.

 

In the normal functioning of any modern economic system, an important role belongs to the state. State throughout the history of its existence along with the maintenance of order, law, organization of national defense, certain functions performed in the field of financial relations. These functions within the State will comply with financial policies and practices shape the financial mechanism, operating in the financial system.

 

Thus, the financial policy of the state is a reflection of the specific forms and methods of finance in the economy and thus enabled a model of the economy to a large extent is indicated by it.

 

The variety of problems facing the state in a market economy determine the function performed by the state financial policy. To solve the problems facing the state during the execution of these functions to the State a number of mechanisms of financial policy.

 

The need to develop and systematic conduct of monetary policy occurred with the development of capitalism. The immediate impetus to the drafting and implementation of monetary policy given the economic crisis of 1929 - 1933, cast some doubt on the ability of the market system to regulate itself without active government intervention in economic life. His theoretically sound principles of financial policy have in the works of John Maynard Keynes and his followers. In the 30 - 40th years of financial policy objectives were limited primarily to the weakening influence of the overproduction crisis on the economy, maintaining high economic activity and increased demand for payment. By the 60th year the emphasis has shifted, and its main task is to achieve high employment and promotion to increase economic growth. On the 70th the same period, including also a modern financial policy, the priority was the fight against inflation, coupled with the same goals: ensuring high employment and stimulating economic growth, balancing the balance of payments, and others.

 

So, based on the tasks of the financial policies of leading economists share the last of three types: economic growth policy, a policy of financial stabilization and the policy of restricting business activity.

 

The aim of the course work - to investigate the essence of the financial policy of the state.

 

In accordance with the stated goal put forward by the research:

 

1) investigate the nature of finance, financial relations and the financial system;

 

3) to determine the mechanism of functioning of the financial policy of the state, its types, forms and methods;

 

4) analyze the financial policy of Kazakhstan, its development and current trends;

 

5) draw conclusions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 1. Theoretical aspects and the basic provisions of the state financial policy

 

1.1 Summary of finance, financial relations and the country's financial system

 

The concept of "finance" covers a vast area of ​​economic relations associated with the distribution of social product in the form of money. The term "finance" comes from the Latin "finis" - end, finish, termination payments, the calculation of economic relations between the actors (originally in ancient Rome - between the people and the state). Later, the term evolved into "financia", applied in a broad sense as a cash payment, and then - as a collection of state revenue and expenditure and any business entities, and their complexes. The authorship of the term "finance" is attributed to the French scientist Jean Boden, who in 1577 published a paper "Six books on the country."

 

The first author of the Financial was Xenophon (430-365 years. BC. E) "On the revenue of the Athenian Republic."

 

For Aristotle (384-322. BC. E) the views set out in the field of finance in the "Athenian polity."

 

However, not every monetary transaction, the transaction is related to finance, because the money mediate the movement of the entire cost of the social product, which is carried out by different economic categories - prices, wages, finance and credit. Money Finance emphasizes the nature of the shape of their implementation and their belonging to the categories of economic value.

 

In order to allocate finance from a number of economic categories, it is necessary to move from consideration of the phenomenon of Finance to the study of nature - the inner content of the object, which is expressed in the unity of the diverse forms of its existence.

 

In the hierarchy (subordination) of social relations of money related to economic relationships, which, in turn, are included in the relations of production - a decisive part of the system of social relations. This implies that the financial relationships - is part of the relations of production, that is, they are basic.

 

Reproduction process is carried out as interconnected and interdependent combination of continuous ongoing stages: production, distribution, exchange and consumption. The four stages of reproduction determine the presence of trade relations between the actors of social production, as manufactured products act as goods subject to sale and purchase: before the product is consumed, it passes through the stage of exchange and distribution. This should meet the needs and interests of all participants in social relations, not only the participants of material production. In turn, the availability of commodity relations division of labor caused by the necessity of economic agents, which is why they have to share the results of specialized labor, services performed, in many manufactured goods, according to their quantity and quality. The comparison of benefits and values ​​created by using money as a measure of value and the universal equivalent. Therefore, the mass produced tangible and intangible goods and services - social product - other than a natural-real monetary value as well. The presence of two forms of the embodiment of the social product allows you to bring it to the final consumer in accordance with the needs of each participant in social production. For this purpose, value categories - money, money, finance, wages, credit, etc.

 

The degree of participation of individual economic categories at different stages of the reproductive process is not the same. In order to finance is generally accepted that their effect is most manifest at the stage of the distribution of gross national product.

 

Trace the emergence of financial relations can be, depending on their areas of operation - in the primary levels of the economy, that is in the sphere of material production - or in the real sector of the state as an organization that regulates public, including economic life, or in the field of public finance.

 

To understand the essence of Finance in the first case can be taken as a reference point in the process of reproduction (in whole or in individual circuit of productive assets separate entity - the manufacturer) the time of separation costs and the beginning of a relatively independent of its form of cash in the implementation of their products. In pre-conditioned by the nature of the production of shaped distribution ratio of the product is implemented on the items that match "with", "v", "m" and the formation of the corresponding funds of funds, or savings of these funds.

 

At the same time allocated revolving funds, depreciation and other deductions (such as social services), payroll, profit. In the future, there is a process of redistribution of these elements of value in accordance with the proportions to be determined by regulations of the distribution. Part of the revenue or profit will be deducted to the state for the formation of its centralized funds, while others retained by the manufacturer and used at his discretion.

 

If part of the value corresponding to the element "s" after the implementation of the product is advanced for the purchase of items of work - current assets (working capital), to ensure the continuity of the production process, from the "T", moreover, can be allocated part of that is earmarked for accumulation, that is, for the purchase of work equipment - fixed assets (capital) - the most important factor of production, as this ensures continuity.

 

In the future, generated funds of funds exposed to redistribute - crushed or, conversely, consolidation, depending on the purpose of funds to the address of their destination or use in the production and circulation of non-productive assets (capital). Thus, part of the value created by the economic entity, it remains in the circulation of the subject, is spent on the reproduction of labor power in the form of wages, social costs, is exchanged for tangible and intangible goods and services consumed and drops out of further movement.

 

Much of the value created in the material production is transferred to the national needs, and having received the independent movement in cash is included in the sphere of financial relations between the state as state revenue. In addition to the deductions from the income of the primary parts of the economy, the government mobilizes the population of the funds in the form of taxes, voluntary payments - loans, lotteries, savings held in banks with state participation. Part of the funds come from public, private and public enterprises and organizations and the public in the stock and no stock forms in the form of various fees, charges, fees.

 

So there are forms of financial relationships at the state level through the formation of centralized funds of funds - the state budget, social insurance funds, and various extra-budgetary funds. This sphere of financial relations is very diverse and involves both the creation of these funds at various levels of government - national, local, and the redistribution and use in the mentioned levels, as well as branch, departmental, regional, social principles. In addition, cash flows and fund performance is mediated by the state long-term programs - development of productive forces, social, environmental, scientific, regional, and others.

 

In the end, passing through all stages of the reproductive process, the social product is converted and translated into three separate funds: the fund compensation fund consumption and the accumulation fund.

 

As a result of the cost of the product is entering a new cycle, and part is consumed.

 

The above processes cause the complex web of financial relationships, their interaction with other economic relationships, and require a scientific approach to the study of their effect on economic performance and its ongoing development, social processes in society.

 

Based on the foregoing, we can formulate a concise definition of finance as follows: finance is a specific set of economic relations that arise in the allocation and reallocation of the cost of the social product, resulting in the formation and use income, savings and funds from the reproduction of the participants to meet their diverse needs .

 

Government finances are a means of redistributing value of products of the public and part of the national wealth. They are based on a system of budgets. A separate element of the system include government Finance budget funds for the annual events financial separate trust (pension fund, social insurance, employment fund). The concept of "financial system" encompasses a set of relations, on which are formed and used by the relevant funds of funds, as well as the bodies that organize these relations. Sometimes the term is used in the narrow sense, but as a set of financial institutions of the state that is inaccurate.

 

The term "system" means the action of interconnected elements - the subsystems, which are classified according to various criteria.

 

In the above definition lies the principal classification model of the financial system based on the intrinsic characteristics of Finance, and their place in the socio-economic processes. According to this criterion, the financial system consists of three parts:

 

1) The aggregate financial relations;

 

2) The total funds of funds;

 

3) the financial management staff.

 

The financial system is a system integration type, characterized by close ties of its constituent elements (subsystems) and the fact that none of its subsystems can not exist independently: Finance, on the one hand, the expression of the relations of production and so are the element of this relationship, with other - represent a system composed of interconnected elements, which have their functional properties. In finance, can be called as functional subsystems, such as tax, fiscal, foreign trade, financial plans (forecasts), legal support and financial controls, etc. In addition to the functional classification criteria of the financial system, is applied on the basis of classification of the subjects of Finance (involved in financial relationships) which allows to distinguish between the financial system of links

Links as the number of subordinate classification, contain elements of the higher categories: financial ratios, financial assets, the managing apparatus. This property gives the systematic nature of the financial system integration.

 

The place and role of the individual components of the financial system are not identical. The primary (main) element has a leading place among the other elements of the system because of its role in the relationship of elements and components of the system is paramount. This element of the financial system are the nation-wide finance, presented in the first state budget.

 

Finance businesses of material production are the basis of finance, it is the source link of the financial system, as in material production creates a real product - the main source of financial resources of society.

 

Finances of the population (households) are the original part of the financial system. Population (citizens) enters into a relationship with your money with a national financial system and economic entities and non-productive areas of all forms of property. These multiple relationships are related to the remuneration of the population benefit from the pension system funds, obtaining tangible and intangible benefits, on the other hand, the population of your money pays taxes, pays for the services of government and other agencies and organizations and non-productive areas. Such relationships are financial, with the exception of monetary relations associated with the acquisition of consumer goods and services in shops, markets, companies and organizations for public service (transport, communications and consumer sectors, etc.) relating to the exchange.

 

However, the specificity of Finance of the population is in a distinctive characteristic of the two parts of the financial system: the stock form and external control, though the money people can have, in each individual case, the target orientation, or to keep, and the owner manages (controls), in accordance with their own intentions. There is also manifested in a variety of monetary relations, as a purely financial nature of their - the payment of taxes and other obligatory payments to the state, payments from public consumption funds - and the transition (simultaneous) moment of interaction with the finances of other economic categories - wages, prices settlement system, the gradual disappearance of the financial relations and the coming into effect of other economic relations. Extensive financial relationships occur at this level due to the employment of nationals of the individual and small business: a relationship similar to arise in echelon finance businesses.

 

General government finances include financial relationships expressed in the state budget as a form of education in the economic foundation of centralized funding and financial plan of the state, extra-budgetary special funds as additional form of financing public needs in the public credit.

 

The state loan is included in the financial system, although the relationships are different from credit financing. But due to the fact that this type of loan is aimed to cover the budget deficit, the sustainability of public finances, the calculations are carried out on it from the budget - it can be considered as belonging both financial and credit systems.

 

The second link - finance businesses has two relatively independent:

 

• Finance businesses of material production (real sector);

 

• Finance organizations and institutions, non-production sphere.

 

In the first - finance the production sector solved the problem of formation and effective utilization of decentralized funds of funds in manufacturing companies, firms, corporations, organizations, other forms of economic activity, as well as the centralization of funds in trust and reserve funds of the parent bodies of these businesses. Finance this serve production activities, provide an active influence of financial leverage on the growth of labor productivity, to increase the effectiveness of other indicators of quality of production. This includes the following components:

 

1) finance industry manufacturing businesses and their parent bodies;

 

2) finance agricultural businesses;

 

3) finance freight transport (rail, river, sea, road, air, mains, pipelines);

 

4) finance the construction;

 

5) Finance ties (in terms of production facilities);

 

6) finance consumer cooperatives;

 

7) Water Resources Finance;

 

8) Finance geological organizations;

 

9) finance other sub-sectors of material production (procurement, procurement, trade-related extension of the production process in the sphere of circulation).

 

The place and role of the second - finance service sector in the financial system are determined by its connection with the distribution and use of national income. Financial relationships in this arise in its primary structure, and between them, with other parts of the financial system, with units of other economic systems: the price of credit, etc.

Financial service sector industries have the components:

 

1) Finance Housing;

 

2) The finance of public services;

 

3) finance public transport;

 

4) finances a number of industries (communications, etc. in terms of non-productive activities);

 

5) Finance Health and Physical Education;

 

6) finance education;

 

7) finance culture and art;

 

8) finance science and scientific services;

 

9) finance non-governmental organizations;

 

10), banking and finance, credit and insurance organizations;

 

11) commercial finance and intermediary organizations (including commodity and stock exchanges, brokers, funds, etc.);

 

12) finance controls;

 

13) Defense Finance;

 

14) finance the protection of law and order.

 

In this section of the financial relations serve the movement has created value through the reallocation of consumption in order to continue through the formation of many funds of funds for various target character.

 

The set of centralized and decentralized funds of funds, the inherent links of financial relations, is the second part of the financial system. Material content of finance is reflected in the development and use of financial resources, including many money funds: The budget, the public and private social security and welfare, depreciation, working capital, consumption. Some funds are more centralized, while others - to a lesser, some funds are always spent (consumption fund), while others are temporarily stored (reserves), and others - are accumulated (depreciation).

 

The forms of financial relationships and funds of funds managed form a material object. Manager acts as the subject of a financial device, which is a system of state apparatus and public financial management and is the third part of the financial system.

 

The financial unit dealing with economic and job control in the process of organization and planning of financial operations, improving communications links of financial relations is compatible with other parts of the financial system and an organic part of it. This means weaving in the financial system as a base and superstructure relations, and handling it.