Such economic relations, which are aimed at the process of formation, distribution and further use of financial resources of various centralization for the state to fulfill its tasks and functions and create prerequisites for reproduction, characterize the very concept of finance.
The main features of finance
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in the course of such relations, subjects are endowed with different rights, one of which (the state), in addition to rights, has extraordinary powers;
- two entities are interconnected by monetary relations in which money is a material justification for the availability and organized work of finance (finance exists only if money is available);
- budgeting, as a general state fund of monetary resources, is the result of such relations (such relations can be classified as stock);
- the state has chosen the so-called coercive measures as tools for the constant flow of funds to the budget. It is impossible to charge taxes and other payments without the support of legal and legislative documents and without effectively functioning fiscal authorities.
What is the basis?
The scientific concept of finance can be rephrased as a kind of association with processes in the life of society that lie on the surface and manifest themselves due to the accompanying various forms of cash flow, both cash and non-cash.
The result of any financial transaction is the movement of cash resources. This may be a transfer of tax fees to the revenue of the state budget or the formation of on-farm resources of the enterprise, and also we can talk about crediting funds to the accounts of state extra-budgetary and charitable funds.
Despite the real visibility of the movement of money supply, this does not allow to fully reveal the concept of finance. To at least somehow understand its nature, it is necessary to determine those general characteristics and properties that underlie the phenomena occurring in the financial sphere. It is necessary to understand the relationships that underlie the participants in the production process and social relations.
Since the relations mentioned take place directly in the course of social production, their character, accordingly, bears the color of production relations.
