Links of the financial system and their brief characteristics

Before you understand the financial system of any country and its structure, you need to understand exactly what the term is. The word "economy" can have several not very similar values.

First, the economy considers the form of monetary relations, which are associated all the subjects of reproduction. Secondly, the term can denote the totality of all laws, norms, rules that streamline financial relationships in the country and financial activities in general.

Third, it is the internal structure of finance, the unity of their components (links). At the same time, all links of the financial system have their own specifics.

By the nature of the funds that are formed in any financial system, you can identify centralized and decentralized finance.

The first are a package that unites all the links in the financial system that form the proper distribution of funds (budget and extra-budgetary), funds belonging to municipalities. In other words, goskredit, municipal credit, budget system can be considered the links from which centralized finances are composed.

Decentralized finance is the sum of the components that take part in the formation and use of funds of individuals and entities that conduct separate business. These are the finances of enterprises, corporations, etc. organizations that are self-financed, financed by IP, non-profit structures, households.

Let's briefly describe all the links of the financial system, consider their features.

The budget system of the Russian Federation is a means that includes the budgets of the federation, entities, state extra-budgetary funds and local budgets. Its goal is to address the main issues of the state as a whole. It is the budgetary system, with its taxes, excises , etc., designed to provide cultural, economic, political and social tasks, redistributing the GDP accordingly. Control this redistribution of special bodies, among them the Chamber of Accounts, the Tax Service, etc.

Other links of the financial system (in this case, it is a question of state and municipal credit) express those relations between the state, its authorities and economic entities that allow the Russian Federation to act as a guarantor, creditor or borrower. At the same time, the main objectives of state financing are financing of the budget deficit, support of priority sectors, settlement of credit policy issues (regional and international).

Today, more and more important are the links in the financial system of the Russian Federation, such as the incomes of production and non-productive structures that are self-financing. To them it is possible to carry:

• Corporations, i.e. Non-membership organizations, designed to solve certain social or managerial tasks.

• Unitary enterprises, which are divided into two categories in the Russian Federation. The former are based on the right of homework, the latter on operational management.

Finance of commercial enterprises is very important for the creation of GDP. They are:

• the main component of the funds from which centralized funds are formed;

• the source of financial resources of households;

• the leading factor in consumption and distribution of GDP;

• a basis for meeting the needs of society.

Finances of non-commercial origin are needed for structuring financial resources that are used to implement public tasks: educational, social, etc., not related to making a profit.

Home finance is almost not regulated by the state, and the finances of the IP are the middle link between finances, commercial and domestic.

The financial system and its links are built on the principles of functionality, transparency, planning, unity and democratic centralism.