Ministry of Finance: functions, tasks, structure and meaning

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:45

The Ministry of Finance is the federal executive body. The main functions of the Ministry of Finance are to develop a unified state financial policy and leadership in the field of financial organization.

History

Historical predecessors of the employees of the Ministry of Finance are trusted custodians of princely profits - treasurers. By the 16th century, the Treasury Order arose, and only in 1812 was the Ministry of Finance formed. Since 1917, it has undergone a number of changes - it turned into the People's Commissariat for Finance of the Republic, included the Ministries of Finance of the Union Republics of the USSR, merged with the Ministry of Economy, until in 1992 it became again an independent federal body, which it remains to this day.

Structure

The head of the Ministry of Finance is a minister appointed by the President. He bears full responsibility for the work of the federal body entrusted to him. To help him, the Government elects 16 deputies. Together with the heads of the tax service and the customs committee, as well as other senior officials, they formboard with the minister as chairman.

The central office of the ministry includes about 20 departments, each of which solves its own specific tasks. In general, the Ministry of Finance performs its functions in the following areas.

Finance

The full list of tasks and functions of the Ministry of Finance of the Russian Federation is quite long, but the first item is always the legal regulation of finance. Thus, the state can control the rationality of using its monetary funds to solve economic, social, and other programs that lead to the development of society.

This activity is regulated not only by financial, but also by constitutional and administrative law. The sphere of finance includes state and municipal resources, in particular, expressed in tax payments from organizations and enterprises.

Regulation is carried out by an imperative method. The Ministry of Finance controls the process of formation of state funds from incoming payments, its distribution between different regions and subsequent use for targeted programs.

Budget activities

The functions of the Ministry of Finance of the Russian Federation also extend to budgetary activities. It is narrower than financial, and can be presented as one of the directions of the latter. As part of this activity, the Ministry of Finance controls the distribution of the budget to solve problems at various territorial levels. Moreover, if the resources of the state are calculated for the whole country, andnormative acts adopted by it on budgetary activities are distributed everywhere, then compliance with the provisions of acts issued in a separate municipality is required only in it. Other functions of the Ministry of Finance are the regulation of tax, insurance, currency and banking activities.

Budget organization

The control functions of the Ministry of Finance affect finances, but in this area, various departments have more specific tasks, for example, organizing the preparation and execution of the federal budget. As part of this activity, reporting is prepared, resource planning for the financial year and forecasting of future income are carried out, reports are made on the dependence of cash receipts on changes in legislation. The same department also controls expenses, that is, a plan for the distribution of funds is drawn up, the maximum amount of possible payments is estimated by time periods.

Interbudgetary relations

The next task and function of the Ministry of Finance is to regulate relations between state authorities of the country, regions and local self-government, accompanied by budgetary activities at the appropriate levels. For complete control, all costs are pre-distributed and fixed on a permanent basis. The budgetary rights of subjects are equated to each other, as well as the revenues of municipalities. Their relationship with federal resources is of equal importance, so financial assistance and tax payment rates are calculated using the same methodology.

Credit unions

Regulation of credit areacooperation is another function of the Russian Ministry of Finance. The activities of a voluntary union of legal entities or individuals, existing for the sake of mutual financial assistance, expressed in lending to each other and saving the overall balance of funds, is regulated by the Federal Law. The powers and functions of the Ministry of Finance in this area are to approve regulatory legal acts, maintain the state register of credit unions, oversee their actions and increase the number of participants in cooperation. These duties are assigned to the federal ministry by Government Decree.

Microfinance

The Russian Federation provides for the provision of financial services to start-up entrepreneurs. The sphere is of great importance for the state, since the ability to start a business without start-up capital and regardless of credit history stimulates an increase in the number of enterprises and an increase in tax revenues. The regulation of this activity, which is called microfinance, is also one of the main functions of the Ministry of Finance. Microfinance organizations cannot arbitrarily set the size, procedure and conditions for granting loans, this activity is regulated by the Federal Law.

Financial markets

Functions of the Ministry of Finance of the Russian Federation in the financial market are reduced to the regulation of the mobilization of temporarily free capital, the provision of credit, the exchange of money and the placement of funds in the production process or distribution between industries. This applies to both bank financing,as well as the securities market. Correct actions and proper control contribute to improving the efficiency of the economy as a whole, therefore, the Ministry of Finance participates in the development of forecasts for the socio-economic development of the state and proposals regarding monetary policy, and also implements measures to improve operations in the financial market.

Securities market

The functions of the Ministry of Finance in the securities market will be performed by its agent - the Bank of Russia. Regulation takes place by ensuring the financial security of the parties involved in economic relations regarding the circulation of securities, and by standardizing procedures. This ensures the protection of investors and the efficient operation of markets, the adverse impact on the economy and the formation of monopolies is minimized. The shareholder alert system and insider trading about upcoming management changes, new strategies and other material insider information are subject to particularly close scrutiny.

Public debt

With a budget deficit, a public debt can form, expressed in ruble and foreign currency borrowings to subjects of international law, for example, other countries. Entry into debt obligations and their repayment are planned and accounted for. Their termination is possible by periodic partial write-offs of the amount of the principal debt and reduction of its volume, changes in the terms of repayment, deferred payments. In addition, the state can sell its debt to third parties, as a result of which the creditor changes. Briefly, the functions of the Ministry of Finance of the Russian Federation in this casecan be described as legal regulation of the listed processes.

Military and law enforcement service

Legal regulation in the field of national defense, law enforcement and state security is one of the priorities of the Ministry of Finance. The Ministry forms the parameters of the draft federal budget according to the relevant sections of the functional classification, prepares conclusions on draft international treaties on military-technical cooperation, collective security, obligations to pay shared contributions to the budgets of international organizations, peaceful exploration of outer space and the use of atomic energy, the elimination of chemical weapons and some other weapons

Along with other organizations, the Ministry of Finance controls a unified policy of foreign trade activities related to military products, invests in national defense and state security, and proposes mechanisms to improve the implementation of social guarantees for the military, in particular, housing construction.

Auditors' Organizations

The activities of independent verification and assessment of the reliability of financial statements are also under the jurisdiction of the Ministry of Finance. The federal body initiated the adoption of a law on audit activity, thanks to which compulsory licensing was replaced by entry into self-regulatory organizations (SROs). The Ministry of Finance assumed the responsibility for monitoring compliance with the requirements of regulatory legal acts by organizations, as well asanalysis of the state of the audit services market, maintaining their register, preparing proposals for the composition and number of SROs, making decisions on issuing qualification certificates.

Financial reporting

Since audit activity concerns accounting and financial reporting, control of this area is also included in the main functions of the Ministry of Finance of the Russian Federation. The Ministry organizes an examination of the information provided, attracts self-regulatory and other public organizations to participate in the preparation of draft laws and regulations, interacts with other federal bodies to approve the composition of the council and ensure its work. The field of activity is not limited to one state, the Ministry of Finance also participates in the development of international accounting standards.

Circulation of precious metals and stones

Production, processing and circulation of precious metals and precious stones also take place with the participation of the Ministry of Finance. The work of the market is regulated by the relevant Federal Law, in accordance with the articles of which jewelry can be both administered by the state, its subjects or municipalities, and owned by individuals and legal entities. Calculation of accounting prices for gold, silver, platinum, as well as palladium, iridium, rhodium, ruthenium and osmium, natural precious stones and pearls is updated daily and indicated in rubles. It is necessary for accounting purposes.

Customs policy

Functions of the Ministry of Finance for the development of statepolicy in the field of customs payments and determination of the value of goods is carried out by one of its departments. It also manages the turnover of alcoholic beverages, with the exception of agricultural production from its own vineyard.

Customs and tariff regulation is one of the important tasks of the Ministry of Finance, since in this way it is possible to protect national producers from foreign competition and ensure the flow of funds to the state budget. In the field of customs affairs, the department of the Ministry of Finance prepares for approval and coordinates draft regulatory legal acts.

Pensions

The Ministry of Finance is responsible for the formation of pension savings and their implementation. This applies to both state and non-state pension provision. The Ministry of Finance evaluates the total amount of pension funds and regulates their work so that payments are calculated for the long term. In particular, the current reform related to the increase in the retirement age, according to the Ministry of Finance, is designed to reduce the transfer from the federal budget and give an increase in the PFR's own income to 6.8%, which will positively affect the well-being of pensioners.

Control of gambling and lotteries

The organization of lottery activities and gambling is under state control. This means that the industry constantly checks for the technical condition of gaming equipment, compliance withrequirements for gambling establishments, targeted use of proceeds. Illegal gambling is subject to serious punishment, which is even more stringent with the improvement of legislation, in particular, the law "On Lotteries".

The Ministry of Finance sets the rules for conducting, controls targeted deductions from proceeds. The latter should go to finance socially significant facilities and events (primarily sports). Hiding the annual results report by the lottery operator is subject to an administrative fine.

Meaning

Thus, the functions of the Ministry of Finance are numerous and diverse. The well-coordinated work of its departments makes it possible to improve the budget system and develop it, implement a unified policy and concentrate finances on priority areas of socio-economic development.