Transfers are an effective tool in regulating the social situation of the population

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

The emergence of the considered concept of movement or redistribution of resources (material or monetary) accompanies mankind for many centuries, but it was called differently, and the essence was interpreted somewhat differently.

In the modern sense, transfers are:

- transferring the results of the transaction between the accounts of the subject;

- a bank order in writing to its correspondent to issue a certain amount of money to a specified person;

- transfer of the right to own registered securities from one person to another with mandatory registration of the transfer of ownership in the relevant company registers, after which financial statements, dividends and announcements of the meeting must be sent to the new owner;

- with the help of a transfer document, the redistribution of JSC shares among its founders is carried out;

- transfer of monetary resources from the fund of financial regional support to the budgetslower territorial level. At the same time, the share of each subject of the Russian Federation requiring such financial assistance is established by calculation.

Thus, transfers are various payments that are redistributed at the federal level.

Analysis of the current system of such distributions in Russia indicates that it does not fulfill the function of social protection as a mechanism for regulating the incomes of the population, which is in dire need of such support.

Therefore, social transfers are represented by a system of measures in kind and cash assistance to the poor, not related to their participation in the activities of companies, both now and in the past. The purpose of their provision is to humanize social relations, which prevents the growth of crime and supports domestic demand.

The share and volume of resources allocated by the state for the needs depend on the model of social orientation and may be different. Thus, in the early 1990s, 16% of GDP was allocated to social needs in Japan, 19.4% in the USA, 27.5% in Germany, and 39.8% in Sweden.

During the economic crisis, the need for social support increases and transfers come to the fore. This may become an unbearable burden for the Russian economy, and its gradual increase may conflict with economic growth. Today in Russia there are over a thousand regulations that provide for over 250 social benefits for 200 categories of citizens. The number of people claiming these benefits and compensations reaches one hundred million.

The structure of the market economy in itself makes government intervention in the profitable sphere for their redistribution inevitable. Transfers successfully solve this, because thanks to this instrument, the government has funds that are supposed to be directed to meet certain needs (for example, ecology, defense and social infrastructure development).

That is why it is essential to coordinate some of the financial flows that are directed to the social sphere in the form of budgets of subjects and national social funds.

Unlike social transfers, government transfers are payments not related to the purchase of services or goods. These include scholarships, pensions, he alth insurance payments and some benefits.