In any state, the implementation of power, the achievement of socio-economic results is carried out with the help of budgetary funds. The efficiency of state activity depends on the correct organization of the financial management system. That is why a budget plan is formed annually at the federal level. It reflects the key areas of receipt and expenditure of funds. The system of budget distribution is called the financial policy of the state. Further in the article, we will consider its key elements.
Finance: general characteristics
If we consider finance as an economic category, then they are the result of the development of commodity-money relations in given socio-economic conditions. The factors causing their appearance are:
- The development of the process of exchange of products and the emergence of money.
- Formation and approval of state principles in public life.
- The emergence of privateproperty.
- Improving the institutions of law and custom.
Basic functions of finance
There are three of them:
- Distribution.
- Control.
- Stimulating.
Through the implementation of the distribution function, the essence of finance is revealed to the maximum extent. It consists in the fact that the newly formed value should be distributed according to the needs of the state and society. Finance is just the tool. They, firstly, arise from the received primary income (sale of oil, for example). Secondly, secondary revenues appear at the expense of budgetary and extrabudgetary expenditures. As a result, not only the distribution, but also the redistribution of GNP is ensured. Of all the major functions of finance, PAYG is considered the most important.
Any cash transaction must be controlled. In the state, it is necessary to ensure the expediency and legitimacy of the movement of financial flows. At the federal, regional and local levels of government, special bodies have been created that implement control functions. They monitor the completeness and timeliness of the receipt of income and the expenditure of budgetary and extrabudgetary funds, the correctness of financial transactions. At the same time, not only constant monitoring of processes is carried out, but also their timely adjustment, in accordance with the norms of domestic legislation.
The third function of finance is stimulating. It is related to the influence of the monetary system onprocesses occurring in the real economy. For example, when forming budget revenues for individual economic entities, tax benefits are provided. Their goal is to accelerate the pace of development of advanced economic industries.
Financial policy
It is a specific area of state activity aimed at mobilizing, rational distribution, efficient spending of financial resources for the implementation of power functions. Accordingly, the key subject in the implementation of financial policy is the state. The authorized bodies develop a scientifically based concept for the use of funds, determine the directions of spending, and develop methods for achieving the set goals.
The key elements of financial policy are tactics and strategy. The latter is a set of measures designed for the long term. The financial strategy involves the implementation of large-scale tasks. They are connected with the functioning of the budgetary mechanism, changes in the proportions of the distribution of resources.
Financial tactics is a set of measures to solve problems at a specific stage of state development, involving a regrouping of funds.
When developing a budget policy, authorities should proceed from the characteristics of the development of society at a particular historical stage. It must take into account the specifics of not only the domestic, but also the international situation, the real economic opportunities of the country, foreign anddomestic experience.
Financial strategy and tactics
In combination, they ensure the competitiveness of an economic entity. At the same time, we are talking not only about the state, but also about smaller market participants - enterprises, individuals.
The basis of financial policy is the strategic directions that determine the medium and long-term prospects for spending funds. Within their framework, solutions are being developed for key tasks determined by the state of the socio-economic sphere. At the same time, the state is developing financial tactics. This activity is connected with the definition of current goals and objectives in accordance with the existing commodity-money relations.
Features of financial tactics
Given the current socio-economic situation in Russia, the state is developing a relatively stable strategy for the use of funds. Financial tactics is a more flexible management tool. It should provide a quick response to all changes in market conditions.
Of course, the strategic and tactical directions of the state's financial policy are interconnected. A correctly chosen strategy will provide an effective solution to current tactical tasks.
When developing a resource management system, the problem of harmonizing the interests of the state and society, enterprises and consumers, owners and personnel, etc. always arises. The purpose of choosing financial tactics isdetermination of the optimal volume of current assets, as well as sources of their replenishment. In this case, we are talking not only about our own, but also about borrowed reserves. Funding sources ensure the current activities of the state, enterprises, and entrepreneurs.
Tactical tasks of the state
The tactics of the state's financial policy ensures the current balance of centralized budgetary funds. This work is related to:
- Conducting previously approved strategic guidelines in current budget planning and execution.
- Assessing and managing the current performance and turnover of the budget system and other centralized funds.
- Identifying additional resources and implementing opportunities to allocate unused limits to finance other planned and overplanned costs.
- Forced specific sourcing within budget period.
- Coordination of budgetary relations, replenishment of the treasury under investment agreements, servicing the public debt.
- Restructuring external government debt for current payments, maintaining the ruble exchange rate against major world currencies.
Financial management at the enterprise
The main objectives of managing the financial resources of an economic entity are:
- Increasing the market value of the company's securities.
- Increasing profits.
- Fixing an enterprise in a specific market or expanding alreadyexisting segment.
- Prevent bankruptcy and significant financial losses.
- Improve staff welfare.
Financial independence of the firm
Competitiveness of the company, its investment attractiveness are determined by several indicators. One of the key parameters is the balance sheet financial independence ratio. The formula for calculating is as follows:
Cfn=Company equity and reserves / total assets.
The higher the indicator, the higher the independence of the organization, respectively. There is another option for calculating the financial independence ratio on the balance sheet - the formula uses groups of assets and liabilities:
Kfn=P4 / (A1 + A2 + A3 + A4).
The equation uses assets:
- Most liquid (A1).
- Quick sale (A2).
- Slow-moving (A3).
- Difficult to implement (A4).
P4 is reserves and capital.
According to the obtained value, the share of assets covered from the company's own funds is determined. The rest is provided by borrowed funds. Lenders, investors always pay attention to this ratio.
Correctly chosen tactics of financial management will ensure the achievement of high stability of the enterprise in the course of its development.
