Does not apply to financial mechanism instruments. Financial mechanism of the state

IN in a broad sense financial mechanism is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic development. Financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

The financial mechanism is divided into the financial mechanism of enterprises and business organizations, the insurance mechanism, and the mechanism for the functioning of public finances. In turn, each of these areas includes separate structural units. Each sphere and individual link of the financial mechanism is an integral part of a single whole. They are interconnected and interdependent. At the same time, the spheres and units function relatively independently, which necessitates constant coordination of the components of the financial mechanism. The internal linkage of the constituent links of the financial mechanism is an important condition its effectiveness.

Thus, we can conclude that the financial mechanism is a set of forms and methods, tools and levers for the formation and use of funds of financial resources in order to meet the various needs of the state, business entities and the population. The purpose of the financial mechanism is to ensure the effective functioning of the financial system and financial markets, as well as the interaction between them. Gradually, with the development of new forms of financial relations, the financial mechanism becomes more complex.

There are many points of view on determining the structure of the financial mechanism.

Litovskikh A.M. considers the structure of the financial mechanism of an enterprise as five interrelated elements:

- financial methods. The financial method can be defined as the way financial relations act on the economic process. The effect of financial methods is manifested in education and use cash funds.

- financial leverage. Financial leverage is a method of operating a financial method. Financial levers include profit, income, depreciation, financial sanctions, rent, interest rates on loans, deposits, bonds, shares, deposits in authorized capital, etc.

- legal support functioning of the financial mechanism includes legislative acts, resolutions, orders, circular letters and other legal documents of governing bodies.;

- regulatory support the functioning of the financial mechanism is formed by instructions, standards, norms, tariff rates, guidelines and explanations, etc.;

- information support the functioning of the financial mechanism consists of various types and types of economic, commercial, financial and other information. Financial information includes information about financial stability and the solvency of their partners and competitors, about prices, exchange rates, dividends, interest on the commodity, stock and foreign exchange markets, etc.; a message about the state of affairs on the exchange, over-the-counter markets, financial and commercial activities any economic entities worthy of attention; various other information...

The structure of the financial mechanism includes the following elements:

1. Regulatory system financial activities ,which includes:

State legal regulation of the financial activities of an enterprise (adopting laws and other regulations governing the financial activities of enterprises).

Market mechanism for regulating the financial activities of an enterprise. This mechanism is being formed primarily in the financial market in the context of its individual types and segments.

Internal mechanism for regulating certain aspects of the financial activities of an enterprise. The mechanism of such regulation is formed within the enterprise itself, accordingly regulating certain operational management decisions regarding its financial activities.

2. System of external support for financial activities enterprises include:

Government financing and other external forms of enterprise financing.

Enterprise lending. This mechanism is based on the provision of various forms of credit to an enterprise by various credit institutions.

Leasing (rent). This mechanism is based on the provision of complete property complexes for use by the enterprise, individual species non-current assets for a specified fee for a specified period.

Insurance. The insurance mechanism is aimed at financial protection of the enterprise’s assets and compensation for its possible losses in the event of the realization of certain financial risks.

Other forms of external support for the financial activities of the enterprise. (licensing, state examination investment projects).

3. System financial leverage includes the following main forms of influence on the process of adoption and implementation management decisions in the field of financial activities: price, interest, profit, depreciation, net cash flow, dividends, penalties, fines, penalties, other economic levers.

4. System of financial instruments consists of the following contractual obligations that provide a mechanism for implementing individual management decisions of the enterprise and fixing its financial relations with other economic entities:

Payment instruments (payment orders, checks, letters of credit, etc.).

Credit instruments (loan agreements, bills, etc.).

Deposit instruments (deposit agreements, certificates of deposit, etc.).

Investment instruments (shares, investment certificates, etc.).

Insurance instruments (insurance contract, insurance policy, etc.).

Other types of financial instruments.

Financial policy finds its practical implementation in the financial measures of the state, which are implemented through the financial mechanism. It represents a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic development. The financial mechanism includes types, forms and methods of organizing financial relations, methods of their quantitative determination.

The structure of the financial mechanism is quite complex. It includes various elements corresponding to the variety of financial relationships. It is the multiplicity of financial relationships that predetermines the use of a large number of types, forms and methods of their organization (elements of the financial mechanism).

The state, represented by its executive and legislative authorities, establishes methods for distributing the social product, national income, forms of cash savings, provides for types of payments, determines the principles and directions for the use of state financial resources, etc.

For effective use financial implementation is of great importance financial planning and forecasting. Regulatory registration of the applied methods of organizing financial relations (taxes, expenses, etc.), monitoring the correct application various types, forms and methods of financial relations. Thus, the main links (elements) of the financial mechanism are:

– financial planning and forecasting;

– financial indicators, standards and limits;

– financial management;

– financial leverage and incentives;

– financial control;

Depending on the characteristics of individual units of the social economy and on the basis of identifying the spheres and links of financial relations, the financial mechanism is divided into the financial mechanism of enterprises and business organizations, the insurance mechanism, the mechanism of functioning of public finances, etc. In turn, each of these areas includes separate structural units. For example, the mechanism of public finance is divided into budgetary and operational mechanisms off-budget funds etc.

Each sphere and individual link of the financial mechanism is an integral part of a single whole. They are interconnected and interdependent. At the same time, the spheres and units function relatively independently, which necessitates constant coordination of the components of the financial mechanism. The internal coherence of the components of the financial mechanism is an important condition for its effectiveness.

Based on the foregoing, we can conclude that the financial mechanism is a set of forms and methods, tools and levers for the formation and use of funds of financial resources in order to meet the various needs of the state, business entities and the population.

The financial mechanism plays a special role in the implementation of the state’s financial policy. The modern financial mechanism is designed not only to create a real financial base to ensure the economic independence of the state, but also to ensure economic regulation in the conditions of the functioning of the market and a multi-structured economy. The development of new forms of financial relations entails a complication of the financial mechanism.

An important element of managing economic and social processes is planning and forecasting. They are used mainly to predetermine rational proportions in economic development and changes in the growth rates of individual industries over a specific period. Financial planning and forecasting are one of the main elements of the financial mechanism.

Rationale financial indicators, planned financial transactions and the effectiveness of many business decisions is achieved in the process of financial planning and forecasting. These two very similar concepts are often identified in economic literature and in practice.

In fact, financial forecasting should precede planning and evaluate many options (respectively, determine the possibilities for managing the movement of financial resources at the macro and micro levels).

Through financial planning, the planned forecasts are specified, specific paths, indicators, interrelated tasks, the sequence of their implementation, as well as methods that help achieve the chosen goal are determined.

Financial forecasting is the prediction of the possible financial situation of the state or business entity, the justification of the indicators of financial plans.

Forecasts can be medium-term (5-10 years) and long-term (more than 10 years).

Financial forecasting precedes the stage of drawing up financial plans and develops the concept of financial policy for a certain period of social development.

The purpose of financial forecasting is to determine the realistically possible volume of financial resources, sources of formation and their use in the forecast period.

Forecasts allow the financial system authorities to outline different options for the development and improvement of the financial system, forms and methods of implementing financial policy.

Financial planning is a scientific process of justifying the movement of financial resources and corresponding financial relations for a certain period.

Its object is mainly the financial activity of the state or any economic entity, and the final result is the drawing up of financial plans, ranging from the estimate of an individual institution to the consolidated financial balance of the state. At the same time, not only the movement of resources for the formation and use of various funds of funds is determined, but also the financial relations that mediate them and the resulting cost proportions.

Financial planning is the purposeful activity of the state, individual units and economic entities to substantiate the effectiveness of adopted economic and social solutions taking into account their availability of funding sources, optimization of intended tasks and achievement of positive final results.

Financial planning should be based on knowledge of the objective laws of social development, trends in the movement of financial resources, and the study of the initial basis for the effectiveness of previously carried out activities and financial transactions.

Financial plans are plans for the formation, distribution and use of financial resources. Financial plans are made up of all links of the financial system, and the form of the financial plan and the composition of its indicators reflect the specifics of the corresponding link of the financial system. Thus, enterprises and organizations operating on a commercial basis draw up balances of income and expenses; institutions carrying out non-commercial activities - estimates; insurance companies, public associations and cooperative organizations - financial plans; organs state power– budgets of different levels.

Financial planning is based on the following principles:

– the principle of scientific validity of plans. This principle assumes not only the reality of financial plans, but also the choice of the best decisions, taking into account long-term benefits;

– a subject-target principle that proposes a definition of the specific purpose of financing.

The main methods of financial planning are:

– method of mathematical modeling;

– normative method;

– balance method;

– coefficient method;

– extrapolation method, etc.

Management is a set of techniques and methods for purposefully influencing an object to achieve a certain result. An important area of management activity is financial management; it is carried out by a special apparatus using special techniques and methods, incl. various incentives and sanctions.

In financial management, management objects and subjects are distinguished. The objects are various types of financial relations. Subjects are those organizational structures that carry out management.

In accordance with the classification of finance according to their areas, there are the following groups control objects:

– finances of enterprises (institutions, organizations);

– insurance companies;

– public finances, etc.

The following management subjects correspond to them:

– financial services (departments) of enterprises (organizations, institutions);

– insurance authorities;

– financial authorities and tax administration, etc.;

The set of all organizational structures that manage finances is called the financial apparatus.

Management subjects use specific methods of targeted influence on finances in each area and each link of financial relations. At the same time, they also have common management techniques and methods. Thus, in financial management there are several functional elements: planning, operational management, control.

Planning takes important place in the financial management system. It is during planning that any business entity comprehensively assesses the state of its finances, identifies opportunities to increase financial resources, and areas for their most effective use. Management decisions in the planning process are made based on the analysis of financial information, which is based on accounting, statistical and operational reporting.

Operational planning is a set of measures developed on the basis of an operational analysis of the current financial situation and pursuing the goal of obtaining maximum effect at minimum costs through the redistribution of financial resources.

Control, as a control element, is carried out both in the planning process and at the stage operational management. It allows you to compare actual results from the use of financial resources with planned ones, identify reserves for the growth of financial resources, and outline ways for more efficient management.

There are strategic or general management financial and operational.

Strategic management is expressed in determining financial resources through forecasting for the future, establishing the amount of financial resources for implementation targeted programs. It is carried out by state and economic (economic) management bodies: the Verkhovna Rada of Ukraine, the Cabinet of Ministers, the President of Ukraine, the Ministry of Finance, etc.

Operational financial management is the main function of the apparatus of the financial system: the Ministry of Finance, financial departments (departments) of local councils, the directorate of extra-budgetary funds, insurance organizations, financial services of enterprises and organizations, etc.

In countries with developed market economies, most financial relations are outside the direct control of the state, since part of the financial resources are formed and used here by their owners in accordance with their interests. The state exercises influence in this area public relations only through tax policy, financial market regulation, depreciation policy, support system for private business, etc. In reality, it is not government control that is carried out, but influence through finance on the implementation of financial policy.

Into the immediate sphere public administration Only government finances are included.

A scientific approach to financial management is needed in every area and every link of financial relations. When choosing management decisions of a financial nature, formalized in legal laws, financial forecasts and plans, regulations, etc., the following are taken into account: the requirements of economic and legal laws; results economic analysis not only the results of the past economic period, but also the prospects; economic and mathematical methods and automated financial management systems.

A special place in the financial mechanism is occupied by financial law - a set of legal forms regulating financial relations. It is carried out with the help of financial legislation, which is a set of financial and legal documents of different legal levels. They include: legislative acts, government regulations, presidential decrees, instructions from the Ministry of Finance, etc. They regulate financial relations in society related to the implementation of the tasks and functions of the state, as well as the formation and use of financial resources.

Financial law, like other elements of the financial mechanism, is dynamic. The development of financial legislation occurs through the streamlining, updating and unification of legislative acts on financial issues.

The financial policy of the state is directly developed and implemented by public finance management bodies.

General management and financial management are carried out by the highest legislative and executive bodies of state power: the Verkhovna Rada of Ukraine, the President, the Cabinet of Ministers of Ukraine, the Verkhovna Rada and the Rada of Ministers of the Republic of Crimea. All functions of these government bodies provide strategic, overall direction and management of public finances.

Organization of operational financial management is carried out through specialized government bodies executive power (primarily through its financial apparatus) and through the financial services of business entities.

Depending on the extent of their participation in financial activities, executive authorities can be divided into two groups:

1. Executive authorities that manage finances in connection with the performance of their financial functions and tasks. These are ministries (except for the Ministry of Finance), departments and other executive authorities that approve estimates of subordinate institutions and distribute them within the industry financial resources, create financial reserves, perform other financial functions. Their powers in the field of finance are determined by regulations of the Cabinet of Ministers of Ukraine or the Council of Ministers of the Autonomous Republic of Crimea.

2. Executive authorities for which financial activity itself is the main one. These bodies were created specifically to carry out financial and credit management and together constitute a system of financial and credit authorities.

The system of financial authorities is headed by the Ministry of Finance of Ukraine. In addition to it, this system includes the Ministry of Finance of the Autonomous Republic of Crimea, financial departments regional, Kyiv and Sevastopol city state administrations, financial departments of district, city and city district state administrations (see diagram 5 in the appendix).

The Ministry of Finance is responsible for financial condition states, policy development and implementation.

The Ministry of Finance performs the following functions:

– participation in the development of the balance of the state’s financial resources and balance of payments;

– preparation of the draft State Budget of Ukraine, submission to the Cabinet of Ministers, and after approval by it – submission to the Verkhovna Rada;

– organizing the execution of budgets, preparing a report on their execution and submitting it for approval to the Verkhovna Rada;

– development of draft new financial legislation and regulations on economic issues;

– justification of the main provisions of the state’s financial policy and submission of the Concept of Budget and Tax Policy to the Government and Parliament of Ukraine for consideration;

– consideration and execution of management decisions related to the use of financial resources;

– monitoring the implementation of legislation by all management bodies;

– management of the operational work of financial authorities at various levels;

– organization of the functioning of the securities market;

– implementation of measures to mobilize funds through the system of public credit and management and others.

The Ministry of Finance of Ukraine is headed by the Minister. He is personally responsible for the implementation of the tasks and functions assigned to the ministry. The Ministry of Finance, within the limits of its powers, issues orders and instructions mandatory for execution by financial authorities.

The Ministry of Finance includes two separate divisions: the Control and Audit Service and the State Treasury. The control and audit service specializes in the implementation of financial control (this issue will be discussed in detail in topic 7).

The State Treasury of Ukraine was created to ensure the complete and timely execution of the state budget. It was created by the Decree of the President of Ukraine dated April 27, 1995. No. 335 and is part of the system of state executive authorities.

The State Treasury has the same regional structure as the Ministry of Finance. The distribution of powers between regional bodies in terms of financing expenses is carried out according to the characteristics of a particular funding object and its location.

The State Tax Administration also belongs to the bodies directly managing public finances. Initially, it was created as part of the Ministry of Finance, and since 1996 it has been transformed into an independent financial body. Its main task is to implement the state's tax policy. The tax administration performs the following main functions:

– development of draft tax legislation;

– carrying out mass awareness-raising work among tax payers;

– accounting of tax payers and their revenues to the budget;

– control over the correct calculation of taxes and other obligatory payments and the timeliness of their payment;

– application of penalties and administrative penalties to violators of tax legislation;

– international cooperation in the field of taxation, etc.

The regional structure of the tax administration is similar to that of the Ministry of Finance. Its highest level is the Main State Tax Administration. She develops draft tax legislation and organizes tax work and activities tax authorities in the state.

Regional authorities are tax administrations in the Autonomous Republic of Crimea, regions, the cities of Kyiv and Sevastopol and tax inspectorates in districts and cities of regional subordination. Tax administrations in regions and cities with regional divisions perform organizational and advisory functions. Direct tax work is carried out by tax inspectorates in districts and cities (without regional division). They keep track of all payers located in a given territory and control their payments to the budget.

The State Tax Administration has subordinate units for combating criminal violations in taxation (tax police).

Financial bodies of the state administration, as well as executive committees of local councils basic level perform their functions in accordance with current legislation.

Financial management of enterprises, associations and other business entities is carried out by the financial service (department) of these business entities.

TOPIC 6. FINANCIAL MECHANISM

1.1. THE CONCEPT OF FINANCIAL MECHANISM, CHARACTERISTICS OF ITS COMPONENT LINKS AND ELEMENTS

In managing the process of functioning of financial relations, society uses various economic, as well as organizational and legal methods, incentives, etc.

By establishing methods for organizing financial relations, the state formalizes them in laws and other normative acts. It determines the methods of GDP distribution, forms cash savings, types of payments, principles and directions of use of public financial resources. In this case, a financial mechanism is used.

As an independent phenomenon, the term “financial mechanism” was put into scientific circulation in our country in the late 60s of the 20th century.

The financial mechanism is a set of methods and forms, instruments and levers of influence on the economic and social development society in the process of implementing distribution and redistribution financial relations.

The financial mechanism is an integral part, the most important subsystem of the economic mechanism of the state. Its functioning occurs in the process of formation and use of various funds cash. Given the availability various fields and links of financial relations, one should consider its individual components in the form of: financial mechanism commercial enterprises and business organizations, financial mechanism non-profit organizations and institutions, the insurance mechanism and the mechanism for the functioning of public finances.

In accordance with the territorial division of the Republic of Belarus, the financial mechanism of republican and local authorities should be separately identified. Considering that in the process circulation funds in the national economy, financial and credit resources are closely interconnected and practically inseparable; some academic economists consider it necessary to consider a single financial and credit mechanism.

Each of the areas considered, from the point of view of impact on social reproduction, contains certain functional links (resource mobilization, financing, incentives) that have quantitative and qualitative certainty.

Quantitative certainty is manifested in the amount of resources allocated for certain purposes, which is the basis for the functioning of the financial mechanism, since without appropriate allocations it is impossible to solve any problems for the development of society. At the same time, it is also important how the financial resources provided were formed, in what forms and through what channels they moved, and under what conditions they were allocated and used. This characterizes the qualitative certainty of the operation of the financial mechanism.

The functioning of the financial mechanism based on the movement of financial resources is characterized by two methods (subsystems) of financial influence on the development of society: financial support and financial regulation. Their establishment as a priority is determined by the directions of the state’s financial policy. At the same time, the higher the level of development of society and its national economy, the more significant the role of financial regulators.

Financial support is implemented through the establishment of a system that can be carried out in several forms: self-financing, lending and non-repayable financing.

A special place in market conditions involves attracting financial resources through shares and other securities. Various forms of financial support, as a rule, are used simultaneously, by establishing an optimal relationship between them for a given stage of social development. Finding and justifying such proportions is the most important task of financial workers of all ranks.

Quantitative parameters and various ways their definitions are the most active part of the financial mechanism. They are repeatedly adjusted, taking into account changes in production conditions and the tasks facing the Republic of Belarus at this stage. As is known, in recent years The rates of VAT, excise taxes and other tax payments have been changed repeatedly.

Financial regulation as a method of financial influence is associated with the regulation of distribution relations in society as a whole, in sectors of the national economy, and at enterprises various forms property. Since finance expresses distribution relations, the creation of financial methods for regulating various aspects of the development of society lies in the fact that they are essentially specific forms, methods of distribution, based on the balance and tax methods.

The balance method involves the distribution of income by elements with the allocation of the final (balance) balance. Intermediate elements with this method are determined on the basis of special calculations.

With the tax method, the amount of income is distributed according to the standards (rates, terms) established by law for individual elements.

Each of them in the system of distribution relations is given a specific purpose in the form of functions assigned to them (VAT, income tax, excise taxes, depreciation charges).

Financial provision and regulation are interconnected and interdependent. However, their functioning is carried out relatively independently, which requires coordination and coordination of all the constituent elements of the financial mechanism.

1.2. ORGANIZATION AND STRUCTURE OF THE FINANCIAL MECHANISM

The functioning of the financial mechanism is ensured through a certain organizational structure.

The organization of a financial mechanism is a system of measures aimed at a rational combination of labor, means of production and technology in the process of financial management.

The organization of a financial mechanism comes down, first of all, to a union of people who jointly implement a functional program based on some rules and procedures.

Organizational procedures include: creation governing bodies finances, building structures control apparatus, development of methods, instructions, norms, standards.

The organization of the financial mechanism also reflects the close relationship between the system of financial levers and financial resources. This relationship is expressed through coordination and regulation.

Coordination in a financial mechanism means the coordination of the work of all parts of the mechanism system, management staff and specialists. Coordination ensures the unity of relations between the financial mechanism and financial resources.

Regulation (from Latin - subordination to a certain order, rule) in a financial mechanism means the impact of the mechanism on financial resources, through achieving a state of stability of the financial system when deviations from the specified parameters occur. Regulation covers ongoing measures to eliminate any deviations that have arisen from established standards and standards, from schedules, from planned tasks.

Planning in the financial mechanism is the process of developing plan targets, drawing up a schedule for their implementation, developing financial plans and financial programs(financial forecasting), providing them with the necessary resources labor force, monitoring their implementation. Planning is, first of all, an administrative process. That is, it is of a directive nature.

Incentives in the financial mechanism are expressed in the use of financial incentives to improve the efficiency of production and trade processes. An incentive is a call to action. Financial incentives include prices, credit, use of profits and depreciation for self-financing, taxes, interest rates, dividends, bonuses, financial sanctions.

Financial incentives affect both labor activity individual employee (his initiative, creative activity, production discipline), and on the efficiency of production and trade processes (obtaining net profit, investment income, reduction in value debt capital).

Thus, the financial mechanism combines the processes of administration and incentives into a single whole.

The financial mechanism is an instrument for the influence of finance on the economic process, which is understood as the totality of production, investment and financial activities of an economic entity.

Therefore, the financial mechanism performs the same functions as finance. At the same time, the financial mechanism, as an instrument of financial influence, has its own specific functions, namely: 1. organization of financial relations. 2. management cash flow , cash flow and the corresponding organization of financial relations.

The content of the first function of the financial mechanism is the creation by it of a harmonious system of monetary relations, taking into account the specifics of the implementation of the economic process in a particular area of entrepreneurship or non-profit activities. The action of the second function of the financial mechanism is expressed through the functioning financial management.

The structure of the financial mechanism consists of five interrelated elements: financial methods, financial levers, legal support, regulatory support, information support.

Structure of the financial mechanism

The financial method is a way of influencing a financial relationship on an economic process, which includes production, investment and financial activities. Production activity is the main activity. The production activity of an economic entity includes the production and sale of products (goods, works, services) in accordance with the main specialization of the economic entity.

Investment activity is the activity of investing capital in assets, purchasing and selling property, etc.

Financial activities include loans taken, interest received on deposits, payment of dividends by shares.

The financial method answers the question: “How to influence?” The effect of the financial mechanism is manifested in the formation and use cash funds. Financial methods include planning, investing, forecasting, lending, insurance, and settlement systems.

Financial leverage is a method of operating a financial method. Financial leverage answers the question “How to influence?”.

Financial leverage includes profit and income. Depreciation charges, rent, interest rates, financial sanctions, forms of payment, types and forms of credit.

For example, lending is financial method, which affects the economic process through such techniques as types and forms of credit, interest rates, and financial sanctions.

Legal support for the financial mechanism includes: legislative acts, resolutions, orders, circular letters and other legal documents of governing bodies.

The regulatory support of the financial mechanism consists of instructions, standards, norms, tariffs, guidelines and explanations.

The information support of the financial mechanism consists of various types and types of economic, commercial, financial and other information.

Information plays a very important role in the financial market. Anyone who owns reliable information owns the financial market. This is because reliable information allows you to make risk-free investment decisions or decisions with minimal risk losses.

At the same time, information is a valuable commodity that has its own price. Information (for example, information about suppliers of raw materials, about customers) can be trade secret, and also be one of the types intellectual property(“know-how”), made as a contribution to the authorized capital of an economic entity upon its creation.

The source of financial information is accounting, statistical and operational accounting.

In this case, an important role belongs to the information provided accounting.

The information that accounting produces includes: financial accounting, management accounting.

Financial accounting reflects the financial condition of an economic entity over the past period. Document. Showing the financial past of this type of business is balance sheet. The accountant looks back. He keeps records of the assets and liabilities of the business entity and is interested in “Where was the money spent?”

Management accounting provides information used in making decisions regarding the future of a business entity and future investment and financial activities. Financial information Management accounting is used by the financial manager. The financial manager looks ahead. He is interested in the question: “Where to invest capital to get greater benefits? Where is the return on capital?

The financial manager always tries to get any information, even the worst, or some key points of such information, or refusal to talk to this topic and use them to your advantage.

For acceptance the right decision need quality information. The quality of information should be assessed when it is received, not when it is transmitted. Information becomes outdated very quickly, so it should be assessed quickly.

1.3.RESTRUCTURE OF THE FINANCIAL MECHANISM IN THE CONDITIONS OF A MARKET ECONOMY

The national economy can be compared to a giant organism that maintains its existence, grows, develops, and sometimes withers. The brain of this organism is the economy.

The transition to a market required the solution of a huge number of economic issues, a significant number of which are related to finance. There was a need to implement a radical reform of the financial mechanism.

The modern financial mechanism is designed not only to create a real financial basis for ensuring the economic independence of the Republic of Belarus, but also to ensure economic regulation in the context of the functioning of the national market and a multifunctional economy.

The program of financial stabilization of the state, based on world experience, provides for the following directions and trends in the development of finance in the modern period:

Use of effective financial levers (tested by world practice: taxes, financial market, independence local budgets and individual business entities)

The desire to establish a financial market that ensures the creation of space for initiative of all economic forms, competition of all types of ownership and growth financial efficiency social production.

Development of diverse forms of financial relations, widespread use of financial levers to stimulate labor teams to achieve high production and social results, ensuring the impact of finance on real social progress, including in the social field.

When developing draft budgets, the Government of the Republic of Belarus is guided by the following principles: ensuring low inflation rates, reducing the tax burden on legal entities in order to stimulate production, strengthen budget revenues, strengthen the social orientation of budget revenues and reduce subsidies.

Financial Impact on Dimensions cash income of the population effectively carried out through direct taxation individuals. The revision of legislation in this area was aimed at a more equitable determination of the tax obligations of citizens in accordance with the amount of labor income they receive. At the same time, the mechanism for collecting and paying taxes was simplified, and the responsibility of taxpayers for determining the amount of income was increased.

Improving the system of financial leverage is aimed at involvement into the economic circulation of free cash economic bodies and the population, increasing the efficiency of their use. In connection with these modern conditions The financial market is being formed as one of the most important elements of the financial mechanism of the state, which uses various economic instruments in the form of shares, bonds, checks and other securities traded in the state.

The financial market is integral structural element developed commodity-money economy and involves the full expansion and use of commodity-money relations based on the creation market economy with the presence of markets for consumer goods, securities, the functioning of stock exchange structures, denationalization and transformation of forms of ownership, the formation of free economic zones.

Naturally, all this requires the creation and use of an appropriate financial mechanism that ensures the most complete coordination of its elements with the interests of the state and its individual members.

In managing the process of functioning of financial relations, society uses various economic, as well as organizational and legal methods, incentives, etc.

By establishing methods for organizing financial relations, the state formalizes them in laws and other normative acts. It determines the methods of distribution of GDP, forms of cash savings, types of payments, principles and directions for the use of public financial resources. In this case, a financial mechanism is used.

As an independent phenomenon, the term “financial mechanism” was put into scientific circulation in our country in the late 60s of the 20th century.

The financial mechanism is an integral part, the most important subsystem of the economic mechanism of the state. Its functioning occurs in the process of formation and use of various funds of funds. Taking into account the presence of various spheres and links of financial relations, it is necessary to consider its individual components in the form of: the financial mechanism of commercial enterprises and business organizations, the financial mechanism non-profit organizations and institutions, the insurance mechanism and the mechanism for the functioning of public finances.

In accordance with the territorial division of the Republic of Belarus, the financial mechanism of republican and local authorities should be separately identified. Considering that in the process of circulation of funds in the national economy, financial and credit resources are closely interconnected and practically inseparable, some academic economists consider it necessary to consider a single financial and credit mechanism.

Quantitative certainty is manifested in the amount of resources allocated for certain purposes, which is the basis for the functioning of the financial mechanism, because Without appropriate allocations, it is impossible to solve any problems for the development of society. At the same time, it is also important how the financial resources provided were formed, in what forms and through what channels they moved, and under what conditions they were allocated and used. This characterizes the qualitative certainty of the operation of the financial mechanism.

The functioning of the financial mechanism based on the movement of financial resources is characterized by two methods (subsystems) of financial influence on the development of society: financial support and financial regulation. Their establishment as a priority is determined by the directions of the state’s financial policy. Moreover, the higher the level of development of society and its national economy, the more significant the role of financial regulators.

Financial support is implemented through the establishment of a system that can be carried out in several forms: self-financing, lending and non-repayable financing.

A special place in market conditions is occupied by attracting financial resources through shares and other securities. Various forms of financial support, as a rule, are used simultaneously, by establishing an optimal relationship between them for a given stage of social development. Finding and justifying such proportions is the most important task of financial workers of all ranks.

Quantitative parameters and various ways to determine them are the most active part of the financial mechanism. They are repeatedly adjusted, taking into account changes in production conditions and the tasks facing the Republic of Belarus at this stage. As is known, in recent years the rates of VAT, excise taxes and other tax payments have been changed several times.

Financial regulation as a method of financial influence is associated with the regulation of distribution relations in society as a whole, in sectors of the national economy, and in enterprises of various forms of ownership. Since finance expresses distribution relations, the creation of financial methods for regulating various aspects of the development of society lies in the fact that they are essentially specific forms, methods of distribution, based on the balance and tax methods.

With the tax method, the amount of income is distributed according to the standards (rates, terms) established by law for individual elements.

Each of them in the system of distribution relations is given a specific purpose in the form of functions assigned to them (VAT, income tax, excise taxes, depreciation).