The Ministry of Finance is a 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 organization of finance.
History
The historical predecessors of the Ministry of Finance are considered the trusted custodians of princely profits - treasurers. By the sixteenth century, the Treasury Order arose, and only in 1812 the Ministry of Finance was formed. Since 1917, it underwent a number of changes - it turned into the People’s Commissariat for Finance of the Republic, included the Ministry of Finance of the Union Republics of the USSR, merged with the Ministry of Economy, until in 1992 it again became an independent federal body, which it is today.
Structure
The head of the Ministry of Finance is the Minister appointed by the President. He is fully responsible for the work of the federal authority entrusted to him. To assist him, the Government elected 16 deputies. Together with the heads of the tax service and the customs committee, as well as other senior officials, they form a collegium with the minister as chairman.
The central apparatus of the ministry includes about 20 departments, each of which solves its specific tasks. In general, the Ministry of Finance carries out its functions in the areas described below.
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 finances. Thus, the state can control the rationality of the use of its monetary funds for solving economic, social, and other programs leading to the development of society.
This activity is regulated not only by financial, but also constitutional and administrative law. The financial sphere 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 areas and subsequent use of targeted programs.
Budget activity
The functions of the Ministry of Finance of the Russian Federation also apply to budget activities. It is narrower than financial, and can be represented 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 state’s resources are calculated throughout the country, and the normative acts adopted by it on budgetary activity 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 regulation of tax, insurance, currency and banking activities.
Budget organization
The control functions of the Ministry of Finance affect finance, 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 compiled, resources for the fiscal year are planned and future incomes are forecasted, reports are made on the dependence of cash receipts on changes in legislation. The same department also controls expenses, that is, a distribution plan is drawn up, and the maximum amount of possible payments for temporary periods is estimated.
Intergovernmental Relations
The next task and function of the Ministry of Finance is to regulate relations between state authorities of the country, regions and local governments, accompanied by budgetary activities at the appropriate levels. For full control, all expenses are pre-allocated and fixed on an ongoing basis. The budgetary rights of subjects are equated with each other, as well as the income of municipalities. Their relationship with federal resources is of equal importance, therefore, the standards of financial assistance and tax payments are calculated according to a single method.
Credit Unions
Regulation of the area of credit cooperation is another function of the Ministry of Finance of Russia. 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 general 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 a state register of credit unions, supervise their actions and the growth of participants in cooperation. These responsibilities are assigned to the federal ministry by a government decree.
Microfinance
The Russian Federation provides for the provision of financial services to novice 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, called microfinance, is also one of the main functions of the Ministry of Finance. Microfinance organizations cannot arbitrarily establish the size, procedure and conditions for the provision of loans, this activity is regulated by the Federal Law.
Financial markets
The functions of the Ministry of Finance of the Russian Federation in the financial market are reduced to regulating the mobilization of temporarily free capital, the provision of credit, the exchange of money and the allocation of funds in the production process or distribution between sectors. This applies to both bank financing and the securities market. Correct actions and proper control contribute to increasing the efficiency of the economy as a whole, therefore the Ministry of Finance participates in the development of forecasts of the socio-economic development of the state and proposals regarding monetary policy, and also implements measures to improve operations in the financial market.
Stocks and bods 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 parties involved in economic relations regarding the circulation of securities and 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 shareholders alert system and insider trading of information about the upcoming leadership change, new strategies and other significant service data are subject to particularly careful oversight.
State debt
With a budget deficit, 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 payment are planned and taken into account. Their termination is possible through periodic partial write-offs of the amount of the principal debt and reduction of its volume, changes in repayment conditions, deferred payments. In addition, the state may sell its debt to third parties, as a result of which the lender changes. Briefly, the functions of the Ministry of Finance of the Russian Federation in this case can be described as the legal regulation of these processes.
Military and law enforcement
Legal regulation in the field of national defense, law enforcement and state security is one of the priority areas of the Ministry of Finance. The Ministry draws up the parameters of the draft federal budget for 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 space exploration and the use of atomic energy, the elimination of chemical weapons and some other weapons
Along with other organizations, the Ministry of Finance monitors a common foreign trade policy related to military products, makes investments in national defense and state security, and proposes mechanisms to improve the implementation of social guarantees for the military, in particular, housing construction.
Auditor Organizations
The independent audit and assessment of the reliability of the financial statements is also the responsibility of the Ministry of Finance. The federal authority initiated the adoption of the law on auditing, due to which compulsory licensing was replaced by entry into self-regulatory organizations (SROs). The Ministry of Finance assumed responsibility for monitoring compliance with regulatory legal acts by organizations, as well as analyzing the state of the market for audit services, maintaining their register, preparing proposals for the composition and number of SROs, and making decisions on the issuance of qualification certificates.
Financial statements
Since audit activities relate to 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, engages self-regulatory and other public organizations to participate in the preparation of draft legislative and regulatory legal acts, 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 is also involved in the development of international accounting standards.
Circulation of precious metals and stones
The production, processing and circulation of precious metals and precious stones also occur 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 the jewelry may be under the jurisdiction of the state, its subjects or municipalities, and in the ownership of individuals and legal entities. Calculation of accounting prices for gold, silver, platinum, as well as palladium, iridium, rhodium, ruthenium and osmium, natural gems and pearls is updated daily and is indicated in rubles. This is necessary for accounting.
Customs policy
The functions of the Ministry of Finance in developing state policy in the field of customs payments and determining the value of goods are performed by one of its departments. He also manages the circulation of alcohol-containing drinks, with the exception of agricultural production from his 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, the Department of the Ministry of Finance prepares for approval and approves draft normative legal acts.
Retirement benefits
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 estimates the total amount of funds of pension funds and regulates their work so that payments are calculated for the long term. In particular, the reform that is being carried out now, connected with increasing the retirement age, according to the Ministry of Finance, is called to reduce the transfer from the federal budget and increase the PFR’s own income to 6.8%, which will positively affect the welfare of pensioners.
Gambling and Lottery Control
Organization of lottery activities and gambling is under state control. This means that in the field constantly checks are carried out on the subject of the technical condition of gaming equipment, compliance with the requirements for gambling establishments, and targeted use of revenue. Illegal gambling is followed by a serious punishment, which is even tougher when improving legislation, in particular, the Law on Lotteries.
The Ministry of Finance sets the rules for conducting, controls the target deductions from revenue. The latter should go to finance socially significant objects and events (primarily sports). Concealment by the lottery operator of an annual report on results threatens with an administrative fine.
