Financial tactics are current financial policies.

In any state, the exercise of power, the achievement of socio-economic results is carried out using budgetary funds. The effectiveness of government activities depends on the proper organization of a financial management system. That is why every year at the federal level a budget plan is formed. It reflects the key areas of income and expenditure. The budget allocation system is called the financial policy of the state. Further in the article we will consider its key elements.

Finance: General Description

If we consider finance as an economic category, then they are the result of the development of commodity-money relations in the given socio-economic conditions. Factors that determine their appearance are:

The development of the product exchange process and the emergence of cash.
The formation and approval of state principles in public life.
The emergence of private property.
Improving the institutions of law and customs.

The main 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. As a tool, finances are just that. First, they arise from the primary income received (oil sales, for example). Secondly, due to budgetary and extrabudgetary expenses, secondary revenues appear. As a result, not only distribution but also redistribution of GNP is ensured. Of all the basic functions of finance, distribution is considered the most important.

Any cash transaction should be monitored. In the state it is necessary to ensure the appropriateness and legitimacy of the movement of financial flows. At the federal, regional and local levels of government, special bodies have been created that exercise control functions. They monitor the completeness and timeliness of the receipt of income and the expenditure of budgetary and extra-budgetary funds, the correctness of financial transactions. At the same time, not only constant monitoring of processes is carried out, but also their timely correction, in accordance with the norms of domestic legislation.

The third function of finance is stimulating. It is associated with the influence of the monetary system on the processes taking place in the real economy. For example, when generating budget revenues, tax incentives are provided for individual business entities. Their goal is to accelerate the development of advanced economic sectors.

Financial policy

It represents a specific sphere of activity of the state, aimed at mobilizing, rational distribution, efficient spending of money resources for the implementation of power functions. Accordingly, the state is the key actor in the implementation of financial policy. The authorized bodies develop a scientifically based concept of the use of funds, determine the direction of spending, develop methods for achieving the goals.

Key elements of financial policy are tactics and strategy. The latter is a set of measures designed for the long term. Financial strategy involves the implementation of large-scale tasks. They are associated with the functioning of the budget mechanism, a change in the proportions of the distribution of resources.

Financial tactics - a set of measures to solve problems at a particular stage of state development, involving the reorganization of funds.

When developing a budget policy, authorities should proceed from the specifics of the development of society at a particular historical stage. It is necessary to take into account the specifics of not only the domestic, but also the international situation, the real economic opportunities of the country, foreign and domestic experience.

Financial Strategy and Tactics

Together, they ensure the competitiveness of the business entity. This is not only a matter of the state, but also of smaller market participants - enterprises, private individuals.

The basis of financial policy is strategic directions that determine the medium and long term outlook for spending. Within their framework, solutions are being developed for key tasks due to the state of the socio-economic sphere. At the same time, the state is developing financial tactics. This activity is associated with the determination of current goals and objectives in accordance with the prevailing commodity-money relations.

Features of financial tactics

Given the current socio-economic situation in Russia, the state is developing a relatively stable strategy for using cash. Financial tactics are 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 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 is to determine the optimal volume of current assets, as well as sources for replenishing them. We are talking not only about our own, but also about the attracted reserves. Due to the sources of financing, the current activities of the state, enterprises, and entrepreneurs are ensured.

Tactical tasks of the state

The tactics of the state financial policy ensures the current balance of centralized budget funds. This work is related to:

Conducting previously approved strategic objectives in the current budget planning and implementation.
Evaluation and management of current indicators and turnover of the budget system and other centralized funds.
The identification of additional resources and the implementation of the possibilities for the distribution of unused limits on the financing of other planned and overplanned costs.
Forced involvement of specific sources within the budget period.
Coordination of budgetary relations, replenishment of the treasury under investment contracts, servicing of public debt.
Restructuring of external government debt on current payments, maintaining the ruble exchange rate against major world currencies.