Lecture “Specialized non-banking financial and credit institutions”

Lecture “Finance of Business Entities”

Lecture “Financial resources and capital”

Lecture “Financial Mechanism”

Lecture “Features of finance of commercial organizations (enterprises) of various organizational and legal forms”

Lecture “Enterprise costs”

Lecture: “Revenue from sales of products”

Lecture: “Enterprise profit. Planning and directions of use"

Lecture: “Working capital of a commercial organization”

Lecture “International Finance”

Lecture “Techniques for managing the movement of financial resources”

Question 1 Basic forms of credit

Question 2 Collateral transactions and mortgages

Question 3 Trust transactions

Question 4 Current lease

Question 5 Leasing and Selling

Question 6 Other methods of managing the movement of financial resources (transfer, engineering, transting, franchising, accounting).

Question 1 Basic forms of credit

The purpose of financial management is to manage the movement of financial resources. This control is carried out using different techniques. The common content of all financial management techniques is the impact of financial relations on the amount of financial resources. Techniques for managing the movement of financial resources and capital include: payment systems and their forms; lending and its forms; deposits and deposits (including in precious metals and abroad); currency transactions; insurance (including hedging); collateral transactions; current lease; leasing; Seleng; engineering; trusting; franchising; accounting.

Lending has two types:

4 lending to the activities of a business entity in the form of direct issuance of cash loans (financial credit);

4lending as a type of payment, i.e. settlements with installment payments.

Depending on the scope of application and types of borrowers, financial loans are of two types:

4 interbank loan, in which the borrower is a bank;

4commercial loan, i.e. a loan for commercial purposes in which the borrower is an enterprise, partnership, joint stock company, etc.

The lending procedure, processing and repayment of loans are regulated by the loan agreement. To obtain a loan, the borrower submits an application and other required documents to the bank (i.e., the lender). The application indicates the purpose of obtaining the loan, the amount and period for which the loan is requested. The number and types of other documents are established by the specific creditor bank.

These necessarily include constituent documents, a card with sample signatures and seals, and a balance sheet. Having received the documents, the lending bank assesses the creditworthiness and solvency of the borrower. Each lending bank uses its own methodology for assessing the borrower’s creditworthiness, which, as a rule, constitutes its trade secret. Then it enters into a loan agreement (loan agreement) with the borrower. The loan agreement contains the type of loan, the amount and term of the loan, calculations of interest and commission fees of the bank for its expenses associated with issuing the loan, the type of loan security, and the form of transfer of the loan to the borrower.

An important condition for issuing a loan is its collateral. Loan collateral is a property that serves as a guarantee for the creditor of the debtor's full and timely repayment of the loan received and payment of the due interest. Loan collateral is provided by the borrower when applying for a loan and is at the disposal of the lender (bank) in whole or in part until the loan is repaid. The main types of loan security are surety, guarantee, collateral, and insurance of the borrower's liability for non-repayment of the loan. Any business entity (bank, enterprise, association, etc.) can be a guarantor or guarantor.

A surety is an agreement with unilateral obligations, through which the guarantor undertakes to the creditor to pay, if necessary, the debt of the borrower. The guarantee agreement is an addition to the loan agreement. A guarantee is an obligation of the guarantor to pay a certain amount for the guaranteed person upon the occurrence of a guarantee event. A guarantee, unlike a surety, is not an act that supplements the loan agreement. It is issued by a letter of guarantee.

Bank loans can be issued in both rubles and foreign currency.

The forms of providing credit to a borrower can be different. The most common in practice are the following: urgent loan, contract loan, on-call loan.

A term loan is a common form of credit. The bank transfers the loan amount to the borrower's current account. Upon expiration of the term, the loan is repaid (i.e., the borrower transfers the appropriate amount of money from his current account to the bank).

Contract credit. A special loan account is opened for the borrower at the bank. Current account is a single account on which all bank transactions with clients are recorded. The current account reflects, on the one hand, bank loans and all payments from the account on behalf of the client, and on the other hand, funds received by the bank from clients in the form of revenue, deposits, loan repayments, etc. The current account is a combination of a loan account with a current and may have a debit and credit balance. Contract credit is carried out as follows. A special loan account (concurrent account) is opened at the bank for the borrower, into which his proceeds are credited and from which payments for received settlement documents are made; If the business entity’s funds are not enough to pay off its obligations, then the bank lends it within the amount established by the loan agreement. The amount of the loan received is determined as the difference between receipts and payments on this account. Loan payments are made within the period established by the loan agreement.

On-call loan is a short-term loan that is repaid on demand. Issued, as a rule, secured by securities and goods. The call loan is carried out as follows. The bank opens a special current account for the borrower on the security of inventory items or securities. Within the limits of the secured loan, the bank pays all bills of the business entity. The loan is repaid upon the bank's first request using funds received to the borrower's account or by selling the collateral. The on-call loan is usually repaid by the borrower with a warning of 2-7 days. The interest rate on this loan is lower than on term loans. From the point of view of repayment period and quality of collateral, an on-call loan is considered the most liquid item of a bank's asset after cash.

A loan secured by real estate is called a mortgage loan. Currently, mortgage loans are issued by mortgage banks. Mortgage loans are taken out to cover large capital expenditures. It is especially effective to use when lending to new construction. In this case, the construction project is subject to collateral. The pledge can be issued in stages as the construction progresses. Then, accordingly, the loan is allocated in parts and the money received is erected to build the foundation of the building. The foundation is laid again, and the loans received serve as a source of financing for the next stage of construction. A mortgage loan is also taken out to purchase real estate. In this case, after registering a collateral-credit relationship, the seller immediately receives money from the bank, the buyer acquires all ownership rights to the object of purchase, which is simultaneously pledged to the bank. The borrower repays the loan and pays interest in accordance with the loan agreement.

The main forms of credit as a type of settlement (payment by installments) are company credit, bill of exchange (account) credit, and factoring.

Company credit is a traditional form of lending in which the supplier (seller) provides credit to the buyer in the form of deferred payment. A type of corporate loan is an advance from the buyer, which is paid to the supplier (seller) after signing the agreement (contract).

Bill (account) credit. The bank provides a bill (discount) loan to the bill holder by purchasing (discounting) the bill before the due date. The owner of the bill receives from the bank the amount specified in the bill, minus the discount rate, commission payments and other expenses. The parties can extend the payment period, i.e., prolong the bill. Prolongation can be direct, simple and indirect. When directly prolonging a bill of exchange, a corresponding entry is made on the bill of exchange, certified by the signatures of the parties. With a simple prolongation, such an entry is not made. With an indirect prolongation, a new Bill is drawn up, and the old one is withdrawn from circulation.

Closing of an account loan is carried out on the basis of bank notifications about payment of the bill. The discount rate on a bill is the interest rate used to calculate the amount of the discount Interest. Discount interest is a fee charged for advancing money when discounting a bill (or other Securities, coupons, bonds, debentures) by a bank. Discounting a bill of exchange is the purchase of a bill of exchange. Before the due date for payment. Discount interest is the difference between the face value of the bill and the amount paid to the bank when purchasing it.

Commercial banks, when carrying out transactions with bills, can simultaneously apply several discount rates. These discount rates are called private discount rates. The discount rate that the Central Bank of Russia applies in transactions with commercial banks and credit institutions is called the official discount rate. Its level is usually lower than the level of private discount rates.

Factoring is a type of trade and commission operation related to the lending of working capital. Factoring is the collection of the buyer's receivables and is a specific type of short-term lending and intermediary activity. Factoring provides services to the seller. Its main goal is to receive funds immediately or within the period specified in the agreement. As a result, the seller does not depend on the buyer’s solvency. The relationship between the bank and the factoring seller is regulated by an agreement. An agreement can be open or closed (confidential). With an open agreement, the debtor is notified of participation in the factoring operation; with a closed agreement, the debtors are not notified of the existence of a factoring agreement. The contract also stipulates whether or not the right of recourse is provided, i.e., the reverse assignment of claims (returning them to the seller). Factoring is carried out as follows. The bank acquires from an economic entity - the seller the right to collect the receivables of the buyer of products (works, services) and within 2-3 days transfers to the economic entity 70-90% of the amount of funds for the shipped products at the time of presentation. After receiving payment for these invoices from the buyer, the bank transfers the remaining 30 -10% of the invoice amount minus interest and commissions to the business entity. When determining the factoring fee, they proceed from the interest rate accepted by the parties for the loan and the average period of time the funds remain in settlements with the buyer.

“FINANCE, MONEY CIRCULATION AND CREDIT Course of lectures FOR FULL-TIME AND CORRESPONDENCE STUDENTS IN SPECIALTIES: 02.38.01...”

MINISTRY OF AGRICULTURE OF THE RUSSIAN FEDERATION

FEDERAL STATE BUDGET EDUCATIONAL INSTITUTION

HIGHER EDUCATION

"OMSK STATE AGRARIAN UNIVERSITY NAMED AFTER P.A. STOLYPIN"

(FSBEI HE Omsk State Agrarian University)

Omsk Agrarian College

FINANCE, MONEY CIRCULATION AND CREDIT

Lecture course

FOR FULL-TIME AND CORRESPONDENCE STUDENTS

BY SPECIALTIES:

02.38.01 “Economics and accounting (by industry)”

02.21.05 “Land and property relations”

Omsk Reviewed and approved at a meeting of the PCMK of general professional disciplines Minutes No.__5__ “15” June_2016

Course of lectures on the discipline “Finance, money circulation and credit” for specialties: 02/38/01 Economics and accounting (by industry), 02/21/05 and Land and property relations, - Omsk, 2016.

Developed by: A.P. Pepelyaeva, teacher of the 1st qualification category.

Reviewer: Ovodova N.D., teacher of the highest category of the department of economic education OAT Federal State Budgetary Educational Institution of Higher Education Omsk State Agrarian University This manual is intended for students to master theoretical knowledge in the discipline “Finance, money circulation and credit” for specialties: 02.38.01 Economics and accounting (by industry ), 02.21.05 and Land and property relations The manual reveals the main elements of the financial, budgetary, monetary, credit systems, securities market and foreign exchange market.

The manual is compiled in accordance with the work program for the discipline for these specialties, meets the requirements of the state educational standard and is intended for students of secondary specialized institutions.

OAT FSBEI HE Omsk State Agrarian University © A.P. Pepelyaeva, compilation, 2016 Contents Introduction ………………………………………………………………………………………………. 3 Section 1. The essence of finance and their management

1.1. The essence and functions of finance……………………………..…… 4

1.2. Financial system……………………………………………………. 6

1.3. Financial management……………………………………….……… 7

1.4. Financial policy…………………………………………………………….. 8

1.5. Financial control…………………………………………………….……… 9 Section 2. Budget and budget system

2.1. Budget structure of the Russian Federation. Budget system……………..……… 12

2.2. Budget revenues………………………………………………………………..…….. 14

2.3. Budget expenditures…………………………………………………….. 15 2.4.

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INTRODUCTION

A market economy puts forward certain conditions for the conduct of the financial and economic activities of an enterprise and places high demands on knowledge in such an area as financial relations, since it is this knowledge that will allow obtaining the financial result that any enterprise strives for - profit. The financial position of an enterprise determines its competitiveness and growth prospects. Lack of financial management (financial management) leads to bankruptcy.

But the lack of financial results indicates a crisis not only in a commercial organization, but also at the state level. At the same time, finance is the main lever of government regulation in order to maintain the country’s economy at a normal level.

The textbook is devoted to the study of such elements of the modern financial market, knowledge of which determines competent government management.

The textbook is a course of lectures given by the author on the discipline “Finance, money circulation and credit.”

SECTION 1. ESSENCE OF FINANCES AND THEIR MANAGEMENT

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FINANCE represents economic relations associated with the formation, distribution and use of centralized (state) and decentralized funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction.

CENTRALIZED FINANCE – economic relations associated with the formation, distribution and use of state monetary funds accumulated in the budget system and state extra-budgetary funds;

DECENTRALIZED FINANCE - monetary and economic relations that ensure the circulation of funds of enterprises of various forms of ownership.

Thus, financial relations constitute a significant part of economic monetary relations.

However, finance and money are different from each other.

Money is a universal equivalent, a measure of the costs of social labor.

Finance is an economic mechanism by which financial resources are distributed within the state.

Finance combines the following groups of monetary relations:

Between enterprises in the process of acquiring goods and materials, selling products, goods and services.

Between enterprises and when pooling financial resources

Between the state and enterprises when paying taxes and financing their expenses from the budget and extra-budgetary funds.

Between the state and citizens when paying taxes and receiving funds from the budget and extra-budgetary funds.

Between budgets of different levels

Between enterprises, the population and insurance organizations when they pay insurance premiums and compensate for damage

Within the organization during the formation of production assets and distribution of income.

FUNCTIONS OF FINANCE

1. DISTRIBUTION function is implemented in 2 processes.

1). Distribution of national income among participants in material production. Here the so-called primary income of enterprises in this area.

Primary income ensures the normal course of material production, but does not provide the opportunity to solve national economic, as well as social and political problems. Therefore, stage 2 is necessary.

2). Redistribution of national income between the production and non-production spheres, between different social groups of the population, between different regions. The basis of redistribution is the collection of taxes and the use of funds in the interests of the state.

2. The control function of finance is manifested in control over the distribution of GDP (gross domestic product) in relevant areas and their intended use.

The control function is based on regulations on financial and tax issues. Control is carried out by special bodies (KRU, tax inspectorate, etc.), as well as partners in financial relations (bank, etc.).

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MANAGEMENT is a set of actions aimed at ensuring the optimal functioning of any system or process.

Management is inherent in all spheres of human activity, including financial ones. In any managed system, objects and subjects of management are distinguished.

The goal of financial management is to ensure the stable development of economic systems, which include enterprises and organizations, sectors of the development of productive forces, individual territories and sectors of the economy. All these activities are closely interconnected and interdependent.

The totality of all organizational structures that manage finances is called the financial apparatus.

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ELEMENTS OF FINANCIAL MANAGEMENT

1. Strategic management is expressed in the development of financial policy, determination of financial resources through forecasting for the future, establishing the volume of financial resources for the implementation of target programs, development of financial plans that ensure the achievement of strategic goals.

2. Operational financial management includes a set of measures aimed at achieving maximum financial results in a specific situation and ensuring the implementation of financial plans.

3. Control over finances consists of studying their compliance with laws and regulations, planned indicators, and identifying reserves for resource growth. It serves as the basis for strategic and operational management.

1.4. Financial policy

FINANCIAL POLICY is a control action, the main content of which is the establishment of principles for the functioning of the financial systems of the state, its individual elements or the finances of an economic entity (financial policy of an enterprise) and their implementation in practice.

Directions of financial policy:

1. Economic

2. Social

3. Cultural

4. Technical

5. Budget

6. Credit

7. Domestic and foreign policy

The financial policy includes:

1. Budgetary policy, which aims to determine:

Sources of formation of the “donor” of the state budget;

Priority areas of budget expenditures;

Permissible limits of budget imbalance;

Sources of financing the budget deficit;

Principles of relationships between individual parts of the budget system.

Budget policy includes: tax policy, investment policy, public debt management policy, etc.

2. MONETARY POLICY – ensures the stability of monetary circulation through emission management, regulation of inflation and the exchange rate of the national currency, timeliness and uninterrupted payment through regulation of the banking system.

Credit policies include: emission, price, currency, and credit.

The state, in the process of its functioning, carries out political activities in various spheres of public life. The object of this activity is the economy as a whole, as well as individual components: pricing, money circulation, finance, loans, currency relations, etc.

The set of government measures to use financial relations for the state to perform its functions characterizes state financial policy.

1.Development of a general concept of financial policy, determination of its foundations, directions, goals, and main tasks.

2. Creation of an adequate financial mechanism. 3. Management of the financial activities of the state and other economic entities in its interests.

An important component of financial policy is the establishment of a financial mechanism through which all state activities in the field of finance are carried out. The financial mechanism is a system of forms, types and methods of organizing financial relations established by the state. The financial mechanism is the external side of finance, manifested in financial practice. Its elements include the forms of financial resources established by the state, methods of their formation, a system of legislative norms and standards that are used in determining state income and expenses, organizing the budget system, corporate finance and the securities market.

1.5. Financial control

FINANCIAL CONTROL - control over compliance with financial legislation in the process of formation and use of funds, assessment of the effectiveness of financial transactions and the appropriateness of expenses.

FC can be divided into 2 spheres - state and non-state.

STATE FINANCIAL CONTROL - ensures the implementation of the financial policy of the state and is carried out by state financial authorities.

NON-STATE FINANCIAL CONTROL - divided into external and internal. External control can be performed by banks, insurance companies and institutions. Internal control financial management. Its main content is the assessment of the financial condition, creditworthiness and investment attractiveness of the enterprise.

Both external and internal control can be performed with the involvement of audit firms.

Let us dwell in more detail on state financial control.

1. Financial control on the part of representative bodies To carry it out, special structures are created: committees and commissions of the Council of Federation (SF) and the State Duma (SD), the Accounts Chamber of the Russian Federation. The State Duma Commission on Budget, Taxes, Banking and Finance carries out expert analytical work on financial issues.

The Accounts Chamber has the following tasks:

Organization of control over the execution of the federal budget (FB) and extra-budgetary funds (EBF),

Preparation of proposals to eliminate detected violations and improve the budget process,

Assessing the effectiveness and expediency of spending public funds,

Determining the degree of validity of FB draft articles,

Financial expertise, i.e. assessment of the financial consequences of the adoption of federal laws for the budget,

Control over the receipt and movement of budget funds in bank accounts, etc.

The main forms of control carried out by the Accounts Chamber are thematic inspections and audits.

2. Presidential control - over finances is carried out in accordance with the Constitution of the Russian Federation by issuing decrees on financial issues, signing federal laws, appointing and dismissing the Minister of Finance of the Russian Federation, submitting a candidate to the State Duma for appointment to the position of chairman of the central bank.

H. The Ministry of Finance of the Russian Federation occupies the most important place in the system of financial control on the part of executive bodies. The Ministry of Finance exercises financial control during the development of the federal budget.

Operational financial control within the Ministry of Finance is carried out by the Control and Audit Department (KRU) and the bodies of the Federal Treasury. The control department of the Ministry of Finance and its local bodies exercise control over budgetary funds at state-owned enterprises and commercial structures that receive funds from budgets and extra-budgetary funds, check the financial activities of municipally owned enterprises, as well as the execution of budgets and compliance with financial discipline by local administrations. In addition, KRU bodies conduct inspections on assignments from law enforcement agencies.

KRU bodies can send information about detected violations to higher authorities and law enforcement agencies.

Treasury bodies are called upon to implement state budget policy and manage the process of execution of the federal budget, while exercising strict control over state federal extra-budgetary funds and financial relations between them and the federal budget. They can use the following measures to influence the offender.

Suspension of account transactions

Undisputed collection of funds

Fine in the amount of the discount rate of the Central Bank of the Russian Federation.

4. Ensuring a unified system of control over compliance with tax legislation, the correctness of calculation, completeness and timely payment of taxes and other obligatory payments is the main task of the State Tax Service. A whole range of measures can be applied to violators of tax laws:

Financial sanctions (fines, penalties, recovery of illegally obtained income)

Administrative sanctions against management and criminal liability.

5. The Federal Insurance Supervision Service (Rosstrakhnadzor) - subordinate to the government of the Russian Federation, in addition to licensing insurance activities and regulating the single insurance market, exercises control over the validity of insurance tariffs and ensuring the solvency of insurers. Suspension and revocation of licenses are the main measures of their impact on violators.

6. A special role in the implementation of the FC belongs to the Central Bank of Russia (CB RF). As a government body vested with power, it organizes and controls monetary and credit relations in the country. The Central Bank of the Russian Federation supervises the activities of commercial banks and has the ability to apply the following measures to them: fines of up to 1% of the bank's authorized capital, prohibition of certain operations, change of management, revocation of licenses.

7. Non-departmental financial control is carried out by structural divisions of ministries, departments, state committees and other government bodies over the financial and commercial activities of enterprises, institutions and organizations subordinate to them.

SECTION 2. BUDGET AND BUDGET SYSTEM

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BUDGET is a form of formation and expenditure of a fund of funds intended to financially support the tasks and functions of the state and local government. In any country, the state budget is the leading link in the financial system. It combines the main income and expenses of the state.

Centralization of funds has important economic and political significance; this makes it possible to maneuver resources, concentrate them on decisive areas of economic and social development, and implement a unified economic and financial policy in the country.

BASIC FUNCTIONS OF A BUDGET

redistribution of national income and GDP and the creation of a national fund of funds;

government regulation and economic stimulation;

financial support for social policy;

control over the formation and use of a centralized fund of funds.

Through expenses and taxes, the budget acts as an important tool for regulating and stimulating the economy and investment, and increasing production efficiency.

The budget system of the Russian Federation is based on the economic relations of the state structure of the Russian Federation, regulates by legal norms the totality of the federal budget, the budget of the constituent entities of the Russian Federation, local budgets and the budgets of state extra-budgetary funds.

The budget system of the Russian Federation consists of budgets of three levels:

federal budget and budgets of state extra-budgetary funds;

budgets of constituent entities of the Russian Federation (regional) and budgets of territorial state extra-budgetary funds;

local budgets.

Budgets are approved in the form of state laws by representative bodies at relevant levels.

The federal budget and all regional budgets together make up the consolidated budget of the Russian Federation, and the specific regional budget and the budgets of all municipalities in the region together make up the consolidated budget of the subject of the Russian Federation.

In addition to direct budgets, in accordance with the Budget Code of the Russian Federation, the budget system includes target budget funds and state extra-budgetary funds.

TARGET BUDGET FUND - a fund of funds formed in accordance with the legislation of the Russian Federation as part of the budget at the expense of targeted income or in the order of targeted deductions from specific types of income or other income and used according to a separate estimate. Funds from the target budget fund cannot be used for purposes that do not correspond to the purpose of the target budget fund.

STATE OFF-BUDGETARY FUND - a fund of funds formed outside the federal budget and the budgets of the constituent entities of the Russian Federation and intended to implement the constitutional rights of citizens to pensions, social insurance, social security in case of unemployment, health care and medical care. Expenses and income of the state extra-budgetary fund are formed in the manner established by federal laws.

Budgets are prepared for one financial year, which corresponds to the calendar year and lasts from January 1 to December 31.

State and municipal financial control bodies created by legislative and executive authorities carry out:

Control over the execution of budgets of relevant levels and budgets of state extra-budgetary funds;

Conduct examinations of draft budgets, federal and regional target programs and other regulatory legal acts of budget legislation.

The grouping of income and expenses of budgets at all levels of the budget system, as well as sources of financing the deficits of these budgets, used for the preparation and execution of budgets and ensuring the comparability of budget indicators at all levels of the budget system, is called BUDGET

CLASSIFICATION, which includes:

classification of budget revenues of the Russian Federation;

economic classification of budget expenditures of the Russian Federation (in economic terms - current and capital);

functional classification of budget expenditures of the Russian Federation (according to areas of financing government functions and powers);

departmental classification of federal budget expenditures (by ministries and departments):

classification of sources of internal and external financing of budget deficits of the Russian Federation;

classification of types of state external and internal debts of the Russian Federation, constituent entities of the Russian Federation, municipalities, external assets of the Russian Federation.

2.2. Budget revenues

Budget revenues represent part of the centralized financial resources of the state necessary to perform its functions. Income expresses economic relations that arise in the process of forming part of centralized funds and comes at the disposal of authorities.

TYPES OF BUDGET INCOME

tax revenues - federal, regional and local taxes and fees provided for by the tax legislation of the Russian Federation, as well as penalties and fines, tax credits, deferments and installment plans provided to the relevant budget.

non-tax income - income from the use of property owned by the state or municipality; income from paid services provided by budgetary institutions under the jurisdiction of federal executive authorities, executive authorities of constituent entities of the Russian Federation and local governments, respectively; fines, funds received as a result of confiscation, compensation, compensation for damage caused to the Russian Federation or its subjects; income in the form of financial assistance received from budgets of other levels of the budget system of the Russian Federation, with the exception of budget loans and budget credits; other non-tax revenues;

income of target budget funds;

free transfers.

All budget revenues are divided into own and regulatory.

OWN INCOME of budgets - types of income assigned on a permanent basis, in whole or in part, to the corresponding budgets by the legislation of the Russian Federation. Financial assistance is not the own income of the corresponding budget, the budget of the state extra-budgetary fund.

REGULATORY BUDGETARY INCOME - federal and regional taxes and other payments, for which standards of deductions (in percentage) are established to the budgets of constituent entities of the Russian Federation or local budgets for the next financial year, as well as on a long-term basis (for at least 3 years) for various types of such income. The deduction standards are determined by the law on the budget of that level of the budget system of the Russian Federation, which transfers regulating revenues to the budget of another level.

INCOME CLASSIFICATION

1. Depending on the sources of education:

income from legal entities;

taxes on individuals;

loans (GKOs);

proceeds from the sale of state property.

2. By type of taxes:

unified social tax;

income tax, etc.

3. By collection methods:

tax;

non-tax.

METHODS FOR FORMING BUDGET INCOME

1. Taxes are a government method of redistributing national income; they account for about 90% of all income receipts.

2. Government loans.

3. Issue of money - used only in emergency circumstances, leads to an increase in the money supply and increased inflation.

2.3. Budget expenses

Budget EXPENDITURES represent costs arising in connection with the performance by the state of its functions. Each type of expenditure has qualitative and quantitative characteristics. A qualitative characteristic allows us to establish the purpose of budget expenditures, and a quantitative characteristic allows us to determine their value.

All budget expenses are divided into capital and current.

Capital expenditures of budgets are part of budget expenditures that ensure innovation and investment activities, including expenditure items intended for investments in existing or newly created legal entities in accordance with the approved investment program, related to expanded reproduction, etc.

Current budget expenditures are part of budget expenditures that ensure the current functioning of state authorities, local governments, budgetary institutions, the provision of state support to other budgets and individual sectors of the economy in the form of subsidies, subsidies and subventions for current functioning.

Each type of expense is divided according to departmental and target characteristics.

Departmental - allows you to highlight in each expenditure group the corresponding government agency or legal entity receiving budget funds. Target - determines specific types of costs with the aim of their rational use and control over their use.

CLASSIFICATION OF COSTS

1. According to their role in the reproduction process:

Costs associated with financing material production;

Costs associated with maintaining non-production areas.

2. For public purposes:

Expenses for financing social and cultural events;

National defense spending;

Expenses for maintaining the management apparatus, etc.

3. By industry structure:

Agriculture;

Industry;

Transport;

Trade, etc.

Balanced budgets must ensure compliance of their expenses and sources of formation. In the practice of budget planning, both a budget deficit—an excess of budget expenditures over its revenues—and a budget surplus—an excess of budget revenues over its expenditures—are possible.

SOURCES OF FINANCING THE BUDGET DEFICIT

1. Loans received by the Russian Federation from credit organizations in Russian currency;

2. Government loans carried out by issuing securities on behalf of the Russian Federation:

3. Budget loans and budget credits received from budgets of other levels of the budget system of the Russian Federation;

4. Proceeds from the sale of state-owned property:

5. The amount of excess of income over expenses on state reserves and reserves;

6. Changes in fund balances in accounts for the accounting of federal budget funds:

7. Government loans carried out in foreign currency by issuing securities on behalf of the Russian Federation;

8. Loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency, attracted by the Russian Federation.

2.4. State loan

STATE CREDIT is a set of economic relations between the state represented by its authorities and management, on the one hand, and individuals and legal entities, on the other, in which the state acts as a borrower, lender and guarantor.

In quantitative terms, the activity of the state as a borrower of funds predominates. The volume of transactions as a lender, i.e. when the government provides loans to legal entities and individuals, is significantly lower. In cases where the state assumes responsibility for repaying other obligations assumed by individuals and legal entities, it acts as a guarantor.

FUNCTIONS OF STATE CREDIT

1.Through the distribution function, the formation of centralized monetary funds of the state is carried out or their use on the principles of urgency, payment and repayment. As a borrower, the government provides additional funds to finance its expenses.

2. The regulatory function is that, by entering into credit relations, the state influences the state of money circulation, production and employment.

3. The control function has specific features:

associated with the activities of the state and the state of the centralized fund of funds;

covers the movement of value in both directions, since it assumes repayment and compensation for receiving funds;

carried out not only by financial structures, but also by credit institutions.

The highest body for managing public credit in the Russian Federation is the Federal Assembly, which sets the maximum amounts for raising funds to finance both the budget deficit and lending from the budget.

Borrowing activity of the state in the domestic and foreign markets

INTERNAL LOANS OF THE FEDERATION.

To cover the budget deficit, the Russian Federation is forced to raise borrowed funds. In the Budget Code, BORROWED FUNDS are defined as loans and credits attracted from individuals and legal entities, foreign states, international financial organizations, for which debt obligations of the Russian Federation arise as a borrower or guarantor of repayment of loans (credits) by other borrowers.

As a result of borrowing activities, public debt is formed - debt obligations of the Government of the Russian Federation to individuals and legal entities, foreign states, international organizations and other subjects of international law, including obligations under state guarantees provided by the Russian Federation. The national debt includes the debt not only of the Government of the Russian Federation, but also of lower-level management bodies that are part of the state.

Russia's national debt is secured by all property that makes up the state treasury.

EXTERNAL LOANS OF THE FEDERATION.

Russia is one of the five countries with the maximum external debt, along with Brazil, Mexico, India and Argentina.

The bulk of the Russian Federation's debt is owed to the Paris Club, which unites about two dozen states.

The second place in terms of debt is occupied by interbank loans provided to Vnesheconombank in Soviet times. The interests of this group are represented by the London Club, which unites more than 600 commercial banks.

State as a creditor

INTERNAL LOANS

The Budget Code of the Russian Federation distinguishes between budget credits and budget loans.

Budget loan as a form of financing budget expenditures, which provide for the provision of funds to legal entities or other budgets on a repayable and reimbursable basis.

Budget loan - budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than six months within a financial year.

Borrowers of federal budget funds on a repayable basis can be Russian enterprises and organizations, except for enterprises with foreign investment.

EXTERNAL LOANS.

State loans provided by the Russian Federation to foreign states, their legal entities and international organizations are credits (loans) under which foreign states, their legal entities and international organizations have debt obligations to the Russian Federation as a creditor.

Debt obligations of foreign states to the Russian Federation as a creditor form the debt of foreign states to the Russian Federation.

SECTION 3. FINANCE OF COMMERCIAL ORGANIZATIONS

AND ENTERPRISES

3.1. The essence of finance of commercial organizations (enterprises) Finance of commercial organizations (enterprises), being the main link of the financial system, covers the processes of creation, distribution and use of gross domestic product and national income in value terms. They function in the sphere of material production, where the total social product and national income are mainly created.

FINANCE OF COMMERCIAL ORGANIZATIONS (ENTERPRISES) is

financial or monetary relations arising in the course of business activities, as a result of which equity capital, targeted centralized and decentralized funds of funds are formed, their distribution and use occurs.

Financial relations of commercial organizations are based on the following

PRINCIPLES:

1. Economic independence - enterprises independently determine the scope of economic activity, sources of financing, directions for investing funds, etc.

2. Self-financing means complete self-sufficiency of costs for production and sales of products, investment in production development, etc.

3. Material interest – i.e. making a profit.

Interest in the results of activities is manifested not only by its participants (owners, administration, employees), but also by the state.

4. Financial responsibility - the presence of a certain system of responsibility for the conduct and results of financial and economic activities, safety of equity capital, compliance with contractual obligations, legislation, etc.

5. Providing financial reserves - the formation of financial reserves and other similar funds that can strengthen the financial position of the enterprise at critical moments of business.

–  –  –

The organization of enterprise finance is influenced by two factors:

1) organizational and legal form of business;

2) industry technical and economic features.

Organizational and legal form of business The organizational and legal form of business is determined by the Civil Code of the Russian Federation, according to which a legal entity is an organization that owns separate property and is liable for its obligations with this property. It has the right, on its own behalf, to acquire and exercise property and personal non-property rights and bear responsibilities. Be a plaintiff and defendant in court. A legal entity must have an independent balance sheet or budget.

Legal entities can be organizations:

1) those pursuing profit as the main goal of their activities - commercial organizations;

2) non-profit organizations that do not have profit making as such a goal and do not distribute profits between participants.

The organizational and legal form of business determines the content of financial relations in the process of forming authorized (share) capital. The formation of property of commercial organizations is based on the principles of corporatism. The property of state and municipal enterprises is formed on the basis of state and municipal funds.

Commercial organizations are created in the following FORMS:

1. Participants in a general partnership create the authorized capital from the contributions of the participants and, in essence, the authorized capital of the general partnership is a joint capital. By the time of registration of a general partnership, its participants must make at least half of their contribution to the share capital.

The rest must be contributed by the participant within the time period specified in the constituent document. If this rule is not followed, the participant is obliged to pay the partnership 10% per annum on the amount of the unpaid part of the contribution and compensate for the losses incurred (clause 2 of Article 73 of the Civil Code of the Russian Federation). A participant in a general partnership has the right, with the consent of its remaining participants, to transfer his share in the joint capital or part thereof to another participant in the partnership or a third party.

2. The founding agreement of a limited partnership stipulates the terms of the size and composition of the share capital, as well as the size and procedure for changing the shares of each of the general partners in the share capital, the composition, timing of contributions and liability for violation of obligations (clause 2 of Article 83 of the Civil Code RF). The procedure for forming the authorized capital is similar to the procedure for its formation in a general partnership. The management of the limited partnership is carried out only by the general partners. Participants-investors do not take part in business activities and are essentially investors.

3. The authorized capital of a limited liability company is also formed from the contributions of its participants. The minimum amount of authorized capital in accordance with the law is set at 100 times the minimum wage on the day of registration of the company and must be paid at the time of registration of at least half. The remaining amount must be paid during the first year of the company's activity. If this procedure is violated, the company must either reduce its authorized capital and register this reduction in the prescribed manner, or terminate its activities through liquidation (clause 3 of Article 90 of the Civil Code of the Russian Federation). A company participant has the right to sell his share in the authorized capital to one or more company participants or to a third party, if this is stipulated in the charter.

The authorized capital of a company with additional liability is formed in the same way (Clause 1, Article 95 of the Civil Code of the Russian Federation).

4. Open and closed joint stock companies form the authorized (share) capital based on the par value of the company's shares.

The minimum amount of the authorized capital of an open joint-stock company in accordance with current legislation is established in the amount of 1000 minimum salaries on the day of registration of the company. The authorized capital is formed by placing common and preferred shares. Moreover, the share of preferred shares in the total authorized capital should not exceed 25%. An open subscription for shares of an open joint-stock company is not allowed until the authorized capital is fully paid. This restriction is aimed against the creation of fictitious joint stock companies. When establishing a joint stock company, all its shares must be distributed among the founders. At the end of the second and each subsequent financial year, if the value of net assets is less than the authorized capital, the joint-stock company is obliged to declare and register in the prescribed manner a decrease in its authorized capital. If the value of the specified assets of the company becomes less than the minimum authorized capital determined by law, the company is subject to liquidation (Article 99 of the Civil Code of the Russian Federation). An open joint-stock company has the right to conduct an open subscription for the shares it issues and carry out their free sale on the stock market. Shares of a closed joint stock company are distributed only among its founders. The authorized capital of a closed joint stock company cannot be less than 100 times the minimum salary established at the time of its registration.

5. In such areas of business activity as production, processing and marketing of industrial and agricultural products, trade, consumer services, etc., the preferred form of business activity is a production cooperative. The property of a production cooperative consists of the share contributions of its members in accordance with the charter of the cooperative. A production cooperative can create indivisible funds at the expense of a certain part of the property, if this is stipulated in its charter. By the time of registration of the cooperative, each member is obliged to make at least 10% of his share contribution, and the remaining part - within a year from the date of registration.

6. A fundamentally different procedure for the formation of unitary enterprises (state and municipal enterprises). They can be created on the right of economic management and on the right of operational management. The first are created by decision of an authorized state or municipal body, and accordingly the property is located in state or municipal ownership. A unitary enterprise is managed by a manager appointed by the owner or his authorized representative. The size of the authorized capital of a unitary enterprise must be no less than the value defined in the law on state and municipal unitary enterprises. The authorized capital must be fully paid by the time of registration of the unitary enterprise.

Unitary enterprises based on the right of operational management are created by decision of the Government of the Russian Federation. Their property is state property. An enterprise has the right to dispose of its property only with the consent of the owner.

The issue of profit distribution is also resolved differently. The profit of commercial organizations remaining after its distribution in the general established order is distributed among the participants on the principles of corporatism. The profit of unitary enterprises after payment of income tax and other obligatory payments remains entirely at the disposal of the enterprise and is used for production and social development.

Industry technical and economic features The content of financial relations and the organization of financial work of business entities are significantly influenced by their industry affiliation and technical and economic features. Industry specifics influence the composition and structure of production assets, the duration of the production cycle, features of the circulation of funds, sources of financing for simple and expanded reproduction, the composition and structure of financial resources, the formation of financial reserves and other similar funds.

Thus, in agriculture, natural and climatic conditions dictate the need to form financial reserves, both monetary and in kind; Natural conditions determine the natural development cycle of plants and animals and, consequently, the circulation of financial resources, the need for their concentration at certain periods, which, in turn, necessitates the attraction of borrowed funds.

Transport organizations and institutions carry out financial and economic activities on the principle of a combination of state regulation and market relations. The finished product to be sold in transport is the transport process itself. Thus, production and sales of products coincide in time and the circulation is carried out in two stages instead of three. The costs of social labor associated with the transportation of products increase their value by the amount of transport costs, which, in addition to additional new value, also contain a surplus product. In transport, the share of fixed production assets is large, the reproduction of which requires significant funds. The peculiarities of payments for transport services and the reproduction of fixed assets determine the need to centralize part of the funds at the level of the Ministry of Railways with their subsequent redistribution, which is reflected in the financial plan of the transport enterprise.

Organizations (enterprises) in the sphere of commodity circulation, being the link between the production of products and their consumption, contribute to the completion of the circulation of the social product in commodity form and thereby ensure its continuity.

The specificity of trade is the combination of production operations (sorting, packaging, packaging, processing and storage of agricultural products, etc.) with operations associated with changing forms of value, i.e. directly with the sale of products. The costs of trading enterprises do not include the cost of purchased goods. A trading organization purchases already produced goods, incurring costs only to bring them to consumers. There are specific features in the composition and structure of working capital, a significant part of which is invested in inventory.

A feature of the industry structure of fixed assets is the combination of own and leased fixed assets. All these features are taken into account when generating financial resources and their use.

The finances of construction organizations also have a number of features. Construction is characterized by a long production cycle compared to industry. A large share of work in progress is in working capital. The need for working capital has large fluctuations both for individual objects and for technological cycles, which affects the structure of sources of financing working capital.

Construction in different climatic and territorial zones determines the individual cost of objects and leads to uneven revenue receipts.

SECTION 4. MONEY AND MONEY CIRCULATION

–  –  –

Money spontaneously emerged from the mass of goods as a result of the development of commodity exchange. At various stages of historical development, the role of money was played first by goods, then by precious metals, which was facilitated by their homogeneity, divisibility, storability, transportability - qualities that made them most suitable for performing the function of money. The Russian economist Sieber determined that money is a universal equivalent, a commodity for which other goods are exchanged, it is a universal means of measuring the value of all other goods.

MONEY is an economic category in which social relations are manifested and with the participation of which social relations are built; money acts as an independent form of exchange value, a means of circulation, payment, and accumulation. Money arises under certain conditions of production and economic relations and contributes to their development.

Immediate prerequisites for the appearance of money:

1) The transition from subsistence farming to the production of goods and the exchange of goods;

2) Property separation of goods producers.

In the initial period of the existence of human society, a subsistence economy dominated, in which products were produced for self-consumption. Gradually, people began to specialize in the manufacture of certain types of products. At the same time, it turned out to be possible to use the excess products to exchange for other products needed by a given manufacturer.

Direct exchange of goods for goods has extensive restrictions:

Money is a special commodity that serves as a universal equivalent.

FUNCTIONS OF MONEY

1. Measure of value.

The value of goods is universally expressed in money, i.e. the magnitude of their value is determined by equating them to a certain amount of money. Money serves as the universal embodiment and measure of value.

2. Medium of exchange.

In the process of commodity circulation, Commodity - Money - Commodity, money plays the role of an intermediary in the exchange of goods and performs the function of a medium of circulation. Compared to the exchange of goods for goods, commodity circulation using money does not require: mutual correspondence of the needs of two exchanging commodity owners, coincidence in time of acts of sale and purchase, coincidence of acts of purchase and sale in space.

With the advent of money, the possibility of a gap between buying and selling arises.

3. A means of storage.

Selling a product without subsequent purchase makes it possible to accumulate wealth, embodied in money. Money acts as a function of the formation of treasures, accumulations and savings when they are temporarily removed from circulation and settle in the hands of commodity producers.

4. Means of payment.

Due to the unequal length of production periods for various goods, by the time a commodity producer appears on the market, potential buyers may not have cash. There is a need to buy and sell on credit. The medium of circulation then is not the money itself, but the debt obligations expressed in it. When used to pay off debt obligations, money functions as a means of payment.

5. World money.

The development of international political and economic relations (foreign trade, international credit relations, etc.) determines the functioning of money in the world market. World money appears in the form of ingots of precious metals, and in the conditions of developed capitalism - in the form of ingots of gold, because inferior money that circulates within a particular country loses its validity on the world market.

World money can perform the following functions:

international means of payment; international purchasing medium; the universal embodiment of social wealth.

ROLE OF MONEY

1.Money is a universal value equivalent.

2.Advanced cash capital to expand production.

3.Purchase of goods and resources on credit.

4.Purchase and sale of labor in the labor market (Payment of wages).

5. Sales of goods on the domestic market.

CONCEPTS ON THE ORIGIN OF MONEY

1. Rationalistic (Aristotle) ​​- explains the origin of money by agreement between people and believes that money is a tool of technical exchange and nothing more.

2. Evolutionary (Karl Marx) - proves that money appeared against the will of people as a result of long-term development, exchange, i.e. From the vast world of commodities, a special commodity emerged that played the role of money.

STAGES OF METABOLIC DEVELOPMENT

1. The simple (random) form of value corresponds to the early stage of exchange (between communities), when the exchange was random in nature, i.e. when one product expressed the value of another.

2. The full (expanded) form of value is associated with the development of exchange and the specialization of production, while each product could be exchanged for many other goods.

3. The general form of value - i.e. separation from the commodity world of individual goods that play the role of a universal equivalent (salt, flour, livestock).

4. The role of universal equivalent is assigned to noble metals (gold, silver) due to their natural properties.

EVOLUTION OF MONEY

1. Metal:

1) gold - bullion - metal money in the form of ingots of various shapes (plates, wire).

2) gold - motto coins - minting coins in the form established by law with a certain weight content.

2. Paper - banknotes issued to cover the budget deficit, endowed by the state with a forced exchange rate that allows them to serve as a means of purchase and payment.

3. Credit - check, credit card, electronic money, etc.

4.2. Cash and non-cash money circulation MONEY CIRCULATION is the movement of money when they perform their functions in cash and non-cash form. The beginning of the movement of money is preceded by its concentration among the subjects (in the wallets of the population). For the movement of money to arise, there must be a need for money from one of the two parties.

The demand for money arises when carrying out transactions; money is needed for circulation and payments for goods and services. Their volume is determined by nominal gross domestic product. There is also a demand for money for accumulation, which comes in various forms: deposits of credit institutions, securities, official government reserves.

Money circulation is carried out in two forms: cash and non-cash.

CASH CIRCULATION - the movement of cash in the sphere of circulation and the performance of two functions by it (a means of payment and a medium of circulation).

Cash is used:

For the circulation of goods and services;

For settlements not directly related to the movement of goods and services, namely: settlements for the payment of wages, bonuses, benefits, pensions, for the payment of insurance compensation under insurance contracts; on household payments for utilities, etc.

Cash turnover includes the movement of the entire cash supply over a certain period of time between the population and legal entities (between individuals, between legal entities, between the population and the state, etc.).

Cash flow is carried out using various types of money: banknotes, metal coins, other credit instruments (bills, checks, credit cards). The Central Bank of the Russian Federation issues cash. He issues cash into circulation and withdraws it if it has become unusable, and also replaces the money with new types of bills and coins.

Cash circulation is regulated by the Civil Code of the Russian Federation.

NON-CASH CIRCULATION is a change in cash balances in bank accounts that occurs as a result of the bank's execution of the account owner's orders for payment and mutual settlements through transfers from one account to another.

All issues with the regulation of non-cash payments are established by the Central Bank of the Russian Federation in accordance with the law. It defines the rules, forms, terms and standards for non-cash payments. The law provides for a total period of non-cash payments of no more than 2 business days within a constituent entity of the Federation and five within the Russian Federation.

The following forms of non-cash payments are used:

payment orders, payment requests (collection);

letters of credit;

settlement checks;

electronic payments.

4.3. Theory of money. Money supply

Commodity-money relations require a certain amount of money for circulation. The law of monetary circulation, discovered by Karl Marx, establishes the amount of money needed to perform the functions of a medium of exchange and a means of payment.

The amount of money (function: money as a medium of exchange) depends on three factors:

the number of goods and services sold on the market;

level of prices of goods and tariffs;

speed of money circulation.

All these factors are determined by production conditions.

The formula is:

–  –  –

K - the sum of the prices of goods sold on credit, the payment period for which has not arrived.

P - the amount of payments on debt obligations.

VP - the amount of mutually extinguishing payments.

S.o. - the average number of turnover of money as a medium of circulation and a means of payment.

In simplified form, this formula can be represented as follows:

M*C D= S.o.

M – mass of goods sold, C – average price of goods, S.o. – average turnover rate.

Transforming this formula, we obtain the exchange equation: D*S.o. = M*C, which means that the product D*S.o. equal to the product of the price level and the commodity mass.

When crisis phenomena arise in the economy, this equality is violated and money depreciates, which can be expressed in the formula:

D*S.o.M*C (inflation).

MONEY SUPPLY is a set of purchasing, payment and accumulated funds that serve various communications and belong to individuals and legal entities and the state.

In economically developed countries, and later in Russia, monetary aggregates began to be used in financial statistics to analyze changes in the money supply on a certain date and for a certain period:

M0, M1, M2, M3, M4

M0 includes cash, i.e. outside banks - banknotes, metal coins M1 = M0 + funds on settlement, current and special accounts in credit institutions, in deposits of the population and enterprises in banks, as well as on demand deposits of the population in Sberbank.

M2 = M1 + time deposits of the population in Sberbank.

M3 = M2 + certificates and government bonds.

M4 = M3 + various forms of deposits in credit institutions.

4.4. Inflation, its types and types

INFLATION is the depreciation of money, manifested in the form of an increase in prices for goods and services, not due to an increase in their quality.

The inflation rate is influenced by many factors, which can be divided into groups:

1. INTERNAL FACTORS:

1) Non-monetary - this is the cyclical development of the economy, monopolization of the state, state-monopoly pricing, etc.

2) Monetary – crisis of public finances: budget deficit, issue of money, growth of public debt, etc.

2. EXTERNAL FACTORS – global structural crises (raw materials, energy, currency), illegal export of gold, currency, etc.

TYPES OF INFLATION

1. Creeping (moderate) – annual price growth rates from 3% to 5-10% are typical for economically developed countries that consider it as a production incentive;

2. Galloping – average annual price growth rates from 20% to 100% (sometimes up to 200%), and prevails in developing countries, causing concern in society;

3. Hyperinflation - a price increase of more than 1000% per year or more than 50% per week, occurs under extraordinary conditions as a result of a radical breakdown of the entire economic structure of the country and leads to disruption of production and the market.

–  –  –

SECTION 5. INSURANCE

According to scientists, insurance is one of the oldest categories of social relations. It is assumed that the original meaning of this concept was associated with the word “fear”. People were afraid for their property, thinking about its preservation, about how it would not be stolen, so that it would not suffer from a natural disaster. However, one cannot speak only in the past tense - since the very concept of insurance was born, fear itself has remained so.

5.1. The essence of insurance and the history of its development

In those days when there was no capitalism, the main form of insurance was mutual aid. It was one-time in nature. Scientists suggest that primary forms of insurance were found several millennia BC.

Thus, the laws of the Babylonian king Hamurabi provided for agreements between participants in the trade caravan. They said that all merchants were obliged to jointly bear losses that befell someone along the way from an attack by robbers, theft, natural disaster, etc.

Subsequently, insurance began to take on a more advanced form. It was built on the basis of regular payments, which, in turn, led to the accumulation of funds and the creation of an insurance fund. Similar organizations existed, for example, in Ancient India and Ancient Egypt. These were mainly mutual aid organizations of artisans and traders.

The appearance of insurance in Rus' is associated with the monument of ancient law “Russian Truth” (X-XI centuries). It spelled out the rules regarding material compensation for harm by the community in the event of a murder, and you can also find all the elements of a civil liability insurance contract.

At the state level, insurance in Russia began to develop since the time of Catherine. At the beginning of the twentieth century insurance appears as a type of commerce. The first insurance companies were “Salamander”, “Russia”, “Russian Society”, etc.

specialized in fire insurance.

In St. Petersburg, and then in Moscow, since 1869, mutual aid societies began to emerge on a professional basis. In the 19th century The first cases of worker insurance appear.

The main event in terms of social insurance of workers in Russia at the beginning of the twentieth century. came the law of 1912, according to which social insurance became state-owned.

During the Soviet period, insurance was monopolized by a single insurer - Gosstrakh. The situation began to change after the legalization of entrepreneurship.

In 1996, the Government of the Russian Federation adopted a resolution “On priority measures for the development of the insurance market in the Russian Federation.”

In 1997, a special target program for insurance and reinsurance of risks from major industrial accidents, catastrophes and natural disasters was developed. But we cannot talk about the final development of insurance in Russia.

Improvement of the insurance market continues.

5.2. The essence of insurance

INSURANCE is an economic category, a system of economic relations that includes a set of forms and methods for the formation of target funds of funds and their use to compensate for damage caused by various unforeseen adverse events, i.e.

INSURANCE FUNCTIONS

1. Formation of a specialized fund of funds as payment for risks that insurance companies assume responsibility for. This function is implemented in a system of reserve and reserve funds that ensure stability of insurance, guarantee of payments and compensation for losses.

2. Compensation for damage and personal financial support for citizens. Only individuals and legal entities who are participants in the formation of the insurance fund have the right to compensation for damage to property. The procedure for compensation is determined by insurance companies, based on the terms of insurance contracts, and is regulated by the state.

3. Prevention of an insured event and minimization of damage. This function involves a wide range of measures, including financing of measures to prevent or reduce the negative consequences of accidents and natural disasters (prevention). In order to implement this function, the insurer creates a special monetary fund for preventive measures.

INSURANCE CLASSIFICATION

1. According to the form of organization:

1) State insurance is an organizational form where the state acts as an insurer represented by organizations specially authorized for this. The state's interests include its monopoly on any or certain types of insurance (law on the status of insurance activities).

2) Joint-stock insurance is a non-state form, where private capital acts as an insurer in the form of a joint-stock company, the authorized capital of which is formed from shares and other securities.

3) Mutual insurance is a non-state organizational form that expresses an agreement between a group of individuals and legal entities to compensate each other for future possible losses in certain shares according to accepted conditions. This form of insurance is non-commercial, i.e.

e. this activity does not pursue the goal of making a profit.

4) Cooperative insurance is a non-state organizational form.

It consists in carrying out insurance operations by cooperatives.

5) Medical insurance is a special organizational form of insurance activity. In Russia, it acts as a form of social protection of the population’s interests in health care. Its goal is to guarantee that citizens receive medical care using accumulated funds in the event of an insured event.

2. By industry:

–  –  –

1. POLICYHOLDER – an individual or legal entity who pays cash premiums and has the right, based on the contract, to receive a sum of money upon the occurrence of an insured event.

2. INSURER (underwriter) – a legal entity that provides insurance and undertakes the obligation to compensate for damage or pay the insured amount. The insurer is required to undergo state registration and have an insurance license.

3. INSURANCE AGENTS AND INSURANCE BROKERS.

Insurance agents are representatives of the insurer, insurance brokers are representatives of both the insurer and the policyholder. Agents and brokers work on commission.

4. INSURED – an individual in whose favor an insurance contract is concluded. In practice, the insured can also be the policyholder if he pays cash (insurance) premiums.

5. BENEFICIARY:

1) the recipient of payment in the event of the death of the insured.

2) the recipient of the payment appointed by the owner, or the owner of the property himself.

6. THIRD PARTY:

1) a person who has suffered damage by a person insured for liability risk.

2) the person responsible for paying for personal and property insurance.

5.4. Basic concepts of insurance

1. OBJECT OF INSURANCE – material carrier of insurance protection:

life, health, ability to work – in personal insurance; buildings, equipment, transport and other material assets - in property insurance).

Insurance coverage for an object is limited to the extent within which the insured objects are located.

2. INSURED EVENT - an event upon the occurrence of which the insurer is obliged to pay the policyholder insurance compensation or security, subject to timely payment of insurance premiums. The randomness of an insured event is that insurers are selling a service about which nothing is known in advance (where, when it will happen, and what objects will be damaged).

3. INSURANCE PREMIUM (payment, contribution) – paid insurance interest, payment for insurance risk in monetary form. The insurance premium is paid by the policyholder and paid to the insurer in accordance with the insurance contract. It is paid in a lump sum in advance upon entering into an insurance relationship, in installments (monthly, quarterly) throughout the entire insurance period. The amount of the insurance premium is reflected in the insurance policy.

4. INSURANCE POLICY – a document of a standard form issued by the insurer to the policyholder. Certifies the concluded insurance contract and contains all its conditions.

5. SUM INSURED – the amount of money for which material assets, life, health and ability to work are insured.

6. INSURANCE PERIOD – the time interval during which the insurance objects are insured. Can range from a few days to several years.

7. RIGHT TO REGRESSION - the right to submit a recourse claim from the insurer against the guilty party.

8. EXCHANGE – the minimum part of the loss incurred by the insured that is not compensated by the insurer. It is established voluntarily and fixed in the contract. The franchise rate can be determined: 1) as a percentage of the amount insured; 2) as a percentage of the amount of the insured loss. When applying a deductible, the insurer receives a discount on the insurance rate.

Conditional deductible: the insurer is released from liability if the damage does not exceed the deductible amount; if the damage exceeds the amount determined by the deductible rate, the insurer pays the insurance compensation in full.

Unconditional deductible: the insurer pays the insured compensation for the loss minus the deductible amount.

5.5. Insurance systems

1. Insurance based on the actual value of property (damage = compensation).

2. Insurance according to the system of proportional liability (incomplete, partial insurance of the object). In this case, the amount of insurance compensation is reduced in proportion to the share of the insured amount in the actual value of the object:

–  –  –

3. Insurance according to the first risk system. In this case, insurance compensation is paid in the amount of damage, but within the limits of the insured amount.

Damage in excess of the insured amount is not paid at all.

4. Insurance at replacement cost. In this case, the insurance compensation is equal to the price of new property of the corresponding type. But insurance premiums will also be higher than with other insurance systems.

SECTION 6. BANKING AND CREDIT SYSTEM

–  –  –

The banking system in the Russian Federation since 1991 has been two-tier:

1. The only state bank is the Central Bank of the Russian Federation.

2. Commercial banks.

The CENTRAL BANK is a monetary institution located at the top level of a two-tier banking system and performing the tasks of the country's emission center. "Bank of Banks", the government's bank, the country's main settlement center and economic regulator.

The Central Bank of the Russian Federation is the main bank of the country, a single emission and settlement center. The Central Bank of the Russian Federation is an economically independent institution, i.e. it makes all expenses from its own income. The state is not liable for the obligations of the Central Bank of the Russian Federation and the Central Bank is not responsible for the obligations of the state.

The legal status of the Central Bank of the Russian Federation is enshrined in the Constitution and the law “On the Central Bank (Bank of Russia)”.

FUNCTIONS OF THE CENTRAL BANK OF THE RF

1. Ensuring stability and purchasing power, as well as the exchange rate of the national currency.

2. Ensuring the stability of functioning and liquidity of the banking system.

3. Ensuring the efficiency and reliability of the country's payment system.

TASKS of the Central Bank of the Russian Federation

1. Monopoly issue of banknotes.

2. Monetary regulation.

3. The Central Bank of the Russian Federation is the “bank of banks”.

4. The Central Bank of the Russian Federation is the government bank.

5. Externally economic, i.e. the Central Bank of the Russian Federation is a currency control body.

The Central Bank is accountable to the State Duma of the Federal Assembly of the Russian Federation, which, on the proposal of the President, appoints for 4 years the chairman of the Central Bank of the Russian Federation and members of the highest body of the Central Bank of the Russian Federation - the board of directors. The Duma considers the annual report of the Central Bank of the Russian Federation and the auditor's report. She also determines the audit firm for the Central Bank of the Russian Federation. The chairman of the council is the chairman of the Central Bank of the Russian Federation.

The objectives of the council are:

1. Consideration of the concept of development and improvement of the banking system.

2. Formation of a draft of the main directions of monetary policy.

3. Determination of the foreign exchange regulation policy.

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RCC RCC RCC

RUCB - regional departments of the Central Bank of the Russian Federation RCC - cash settlement centers Territorial institutions of the Central Bank of the Russian Federation do not have the status of a legal entity and do not have the right to make decisions of a regulatory nature, as well as issue guarantees and sureties without the permission of the board of directors.

COMMERCIAL BANK is a monetary enterprise located at the lower level of a two-tier banking system and engaged in the provision of paid (commercial) banking services to individuals and legal entities in conditions of market competition with other commercial banks.

FUNCTIONS OF A COMMERCIAL BANK

1. Intermediation in credit - banks redistribute for the most part not their own capital, but temporarily free funds raised from individuals and legal entities.

2. Stimulating savings - banks interest individuals and legal entities in storing funds in bank accounts. For this purpose, a flexible deposit policy is used, for example, the longer the storage period. The higher the bank interest on the deposit.

3. Mediation in payments.

PRINCIPLES OF ACTIVITY OF A COMMERCIAL BANK

1. Working within the limits of actually attracted resources means that a commercial bank must not only ensure quantitative correspondence between resources and credit investments, but also compliance in terms of the timing of attracting resources and their placement.

2. Complete economic independence of a commercial bank, which implies not only the ability of banks to determine the resource base themselves and the nature of its placement, but also provides for economic responsibility, which extends not only to the bank’s income, but also to all its property, i.e.

The bank assumes the entire risk of its operations.

3. The bank’s relationship with clients must be of a market nature, that is, the bank pays clients interest for storing funds in bank accounts, regardless of the storage period, and clients pay the bank for any service provided by the bank.

4. Regulation of the activities of a commercial bank should be carried out by indirect economic, rather than administrative, methods, that is, the state establishes the legislative basis for the activities of the bank and controls the implementation of this basis through the Central Bank of the Russian Federation. But the state should not give orders on the nature of the bank's activities.

According to the Law “On Banks and Banking Activities”, a BANKING OPERATION is a transaction the object of which can be money, securities, precious metals and precious stones.

TRADITIONAL BANKING OPERATIONS

1. Attracting deposits from individuals and legal entities.

2. Placement of raised funds on your own behalf and at your own expense.

3. Opening and maintaining bank accounts.

4. Making payments on bank accounts.

5. Collection.

6. Transactions with foreign currency.

7. Operations with precious metals and stones.

8. Issuance of sureties and guarantees.

9. Consulting and information services of the bank.

10.Working with plastic and credit cards.

NON-TRADITIONAL BANKING OPERATIONS

1. TRUST – trust management of funds, securities and property of the client.

2. FACTORING – assignment of rights of claim from the client to the bank, i.e. redemption of receivables.

3. LEASING – long-term lease of property (from 6 months), providing for the possibility of their subsequent purchase by the tenant.

4. CONTACT ACCOUNT – current account + loan account.

5. OVERDRAFT - an extremely short loan (from 1 hour to ten days), caused by a temporary lack of money.

In accordance with the Law “On Banks and Banking Activities”

provides for the procedure for state registration of a commercial bank and the issuance of a license to carry out banking operations.

LICENSE is a special permit from the Central Bank of the Russian Federation, certifying the right of a commercial bank to carry out the banking operations specified in it, and is valid for an unlimited period.

TYPES OF LICENSING

1.License to carry out banking activities with funds in rubles (without the right to attract deposits from individuals).

2.License for the bank to carry out operations to attract deposits from the public.

3.License for the bank to carry out operations in foreign currency.

4.License to attract deposits and place precious metals.

5.License for collection.

6.License to provide a bank loan.

7.General license.

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CREDIT is a bank’s operations to place free credit resources on the terms of security, payment, repayment, urgency and the whole nature of use.

The need for a loan is caused by the circulation of funds.

FORMS OF LOAN

1. Commercial is a loan provided by one enterprise to another when selling goods, in the form of a deferred payment of money for the goods sold.

2. Banking - provided by a commercial bank to borrowers in the form of cash loans in accordance with the principles of lending.

3.Consumer - a loan consisting of a deferred payment for a product to individuals who purchased this product for consumption.

4. State - a loan received by the state as a result of issuing an internal or external loan) due to a budget deficit or to accelerate the pace of economic development.

5.International - the movement of loan capital in the field of international economic relations associated with the provision of goods or foreign exchange resources.

FUNCTIONS OF CREDIT

1. Redistribution. those. Temporarily available funds accumulated in the bank are redistributed for reasons of profitability to the most financially stable, profitable, i.e. promising industries.

2. Cost savings, i.e. A bank loan contributes to the continuity of the enterprise’s production activities and accelerates the turnover of funds and increases the profit margin.

3. Acceleration of concentration and centralization of capital, i.e. bank issues loans only to creditworthy clients, not bankrupts

4. Regulation of the country's economy, i.e. the state provides loans itself and also develops a preferential lending system for strategically important sectors of the economy.

PRINCIPLES OF LENDING

1. Repayment - based on the loan agreement between the bank and the borrower and depending on the form of lending, the terms for repaying the loan are established (at one time or in part).

Short term

Medium term

Long-term For late repayment of the loan, the agreement provides for sanctions.

In addition, at the request of the client, the contract can be extended, i.e.

The repayment period is extended, for this purpose an additional agreement is drawn up and lending conditions are tightened.

2. Urgency - the loan agreement specifies the loan repayment date and frequency, i.e. the date of payment of interest on it; if the deadline for payment of interest is violated, the bank has the right to demand early repayment of the loan. If the loan repayment terms are violated, the bank immediately begins to sell the collateral (through 3 parties) or requests funds from the guarantor, insurance company, or guarantor.

3. Payment - the loan agreement specifies the interest that the client is obliged to pay to the bank for using the loan. The agreement also specifies the amount of overdue interest in case of violation of the agreement.

4. Security - to guarantee the repayment of the loan and reduce credit risk, at the time of issuing the loan, the bank draws up security with an additional document (collateral agreement, insurance policy, guarantee).

5. Purposeful use - at the time of issuing a loan, the client states in the application and then in the loan agreement the purpose of the loan, and the bank, transferring the loan debt to the client, checks the intended use of these funds.

Check mechanism

1. Current, i.e. Each client's payment document is endorsed for debiting funds, either from a current account or from a court account.

1. Subsequent - the represented bank goes to the site and checks, using the internal and accounting data of the enterprise, compliance with lending goals.

CREDIT SYSTEM

The lending system is based on three main elements:

1. Depending on the subjects of lending, the bank classifies them in the following areas:

State enterprises, organizations and government bodies;

Joint ventures;

Legal entities of various forms of ownership;

Commercial banks;

Citizens engaged in self-employment;

Individuals;

The main thing is the legal capacity of the subjects and material or other guarantees of the credit transaction with them.

2. Objects of lending are specific objects, but on the basis of which a loan transaction is concluded.

Classification of objects:

Private material objects:

Aggregate lending objects;

Consumer objects:

A specific lending object is seasonal sectors of the economy (river, sea transport; agriculture, etc.)

3. Types of lending:

a) By loan term

Overdraft - ultra-short-term loan;

Current account - credit on demand;

Revolving - a loan that is constantly renewed;

Line of credit - i.e. not a one-time loan issue, but distribution of the amount over time;

b) For lending purposes

Loans to replenish working capital;

Loans for production development;

Consumer loans;

For project financing, etc.;

c) Depending on the size

Large loans (more than 5% of the authorized capital);

STAGES OF THE CREDIT SYSTEM

1. Preparatory - negotiations with clients, collection of information, reporting and other documents necessary for lending.

2. Analytical - analysis and consideration of a specific application and assessment of the client’s creditworthiness.

3. Technical - final decision-making on issuing a loan by the credit committee and preparation of loan documentation.

4. Control - organizing the process of monitoring the client’s solvency and his financial condition.

The bank's credit policy is an internal document of the bank, which is formed before the start of the new financial year, approved by the bank's board and is a mandatory guideline for organizing credit transactions in the bank.

CREDIT POLICY STRUCTURE

1. The sector of the economy that the bank is lending in the coming period is fixed.

2. The maximum loan amount per borrower is fixed.

3. Requirements for loan repayment and security are established.

4. The mechanism of the lending process and the conditional level of interest rates are determined depending on the borrower’s creditworthiness

5. Authorities are outlined when a commercial bank makes a decision to issue a loan.

6. The procedure and maximum amounts for issuing loans to bank employees, founders, etc.

7. A mechanism for assessing the borrower’s creditworthiness is determined.

SECTION 7. SECURITIES MARKET

7.1. The essence of the securities market Regular transactions for the purchase and sale of securities form the MARKET

VALUABLE PAPERS.

STOCKS AND BODS MARKET

PRIMARY SECONDARY

ISSUER INVESTOR STOCK OTC

EXCHANGE MARKET

PRIMARY SECURITIES MARKET is a market on which newly issued securities and securities of subsequent issues are sold. The primary market is the initial offering of securities that are usually sold at par. In the primary market there is an issuer and an investor.

SECONDARY SECURITIES MARKET is a market in which the transfer from hand to hand of securities that were previously issued (issued) and are already in circulation occurs. In the secondary market, securities are sold at the market price or exchange rate. The market price in the secondary market is determined by broad bidding where many traders and buyers participate.

The subject of transactions on the primary and secondary markets are various types of securities.

SECURITY is a document drawn up in a special way and expressing property or debt relations between members of society, banks, the state and confirming the right to any property or sum of money that cannot be sold without the presence and presentation of the appropriate document.

SECURITIES MARKET PARTICIPANTS

ISSUER is a legal entity (commercial organization, executive body, local government body, etc.) that issues securities (shares, bonds, etc.) and bears on its own behalf obligations to the owners of securities to exercise the rights assigned to them.

INVESTOR – a legal or natural person who invests his money in various types of securities in order to make a profit.

PROFESSIONAL PARTICIPANTS (INTERMEDIARIES)

SECURITIES MARKET

BROKER is an intermediary who carries out civil transactions with securities as attorneys, acting on the basis of commission agreements, as well as a power of attorney for such transactions. The broker's income is commissions.

DEALER is an intermediary who carries out transactions for the purchase and sale of securities on his own behalf and at his own expense by publicly announcing the purchase and sale prices of certain securities with the obligation to purchase or sell these securities at the announced prices. Dealer income is the difference between the purchase and sale prices of securities.

BROKER is an employee of the exchange, his main function is to control the order in the exchange ring and the correctness of transactions.

MANAGER - receives the rights to carry out transactions with securities in the interests of the client on his own behalf for a fee within a specified period. The manager can be a legal entity or an individual entrepreneur. The manager is obliged to compensate for any damage caused.

INVESTMENT COMPANIES AND FUNDS are professional stock market participants performing the following operations:

Determination of conditions and preparation of new issues of securities;

Purchase of securities from issuers for further resale to investors;

Guaranteed placement of securities.

JOBBERS - consultants on the problems of the securities market (evaluate the investment qualities of issued securities, help issuers organize new issues, make forecasts for changes in stock prices, etc.) REGISTERS - organizations that, under an agreement with the issuer, will maintain a register (list of owners of registered securities ), compiled for a specific date.

There is no register for bearer securities.

DEPOSITARY – organizations that provide services for storing securities certificates and recording ownership rights to securities.

Depositories have replaced registrars in developed countries.

SETTLEMENT AND CLEARING ORGANIZATIONS are specialized banking-type organizations that provide settlement services to participants in the organized securities market.

7.2. Share as a type of security

A SHARE is a security that evidences the contribution of a share in the authorized capital of a joint stock company (hereinafter referred to as JSC), giving its owner the right to part of the JSC’s property and participation in its management, as well as to receive dividends.

A share is valid for as long as the corporation that issued it exists, although its owner may change several times. Shares cannot be returned to the joint stock company that issued them. They can only be sold on the secondary market. The owner is entitled to a portion of the distributed profits and a portion of the value of the property that remains after a bankruptcy sale.

SHARES DETAILS

1. Company name of the joint-stock company and its location.

2. The name of the security is “Share”.

3. Serial number.

4. Release date.

5. Nominal value.

6. Type of share (simple/preferred).

7. Name of holder/bearer.

8. The size of the authorized capital on the day of issue.

9. Number of shares issued.

10. Dividend payment period and rate for preferred shares.

11. Signature of the chairman of the joint-stock company and his seal.

SHARE NOMINAL is the price at which shares are sold on the primary securities market (indicated for shares). The par value is valid only for the initial placement of shares. It is needed to characterize the authorized capital of the joint-stock company.

DIVIDEND is the part of the distributed profit that remains after paying taxes from the joint-stock company.

It can be paid in the form of:

Cash payments

New shares (profit capitalization process)

Property (upon liquidation of the company)

Manufactured goods

CLASSIFICATION OF SHARES

1. According to operating mode:

Simple – a share whose dividend depends on the performance of the joint-stock company.

A common share can be of two classes. A class A common share is a share owned by the founders of a given company. Owners of such shares have a number of advantages, for example, a larger number of votes, an increased dividend, etc.). Class B common shares are shares owned by other investors.

Preferred is a share for which the dividend is fixed and does not depend on the results of the JSC’s activities. The dividend is a certain amount based on the par value of the share. The general meeting itself decides whether or not to issue preferred shares and to whom to sell them. Dividends on them are paid before payments on common shares. If a joint stock company fails, the owners of these shares are the first to receive compensation, just like bondholders, but do not have the right to vote at the shareholders meeting. A description of the privileges of this share is placed on the share certificate.

2. By the nature of presentation:

A registered share is a share owned by a specific shareholder who is registered in a special book O. The owner of a registered share receives another security from the JSC - a certificate for all purchased shares. It indicates the owner of the share and the number of shares. A registered share can be sold, in this case, evidence of the sale is an endorsement - a special endorsement on the share certificate, which indicates who purchased and how many shares.

Bearer shares are shares whose owners are not registered; the joint-stock company does not have information about who their owner is. The nominal value of such shares is small, but they are issued in large quantities.

PROPERTIES OF SHARES

1. A share is a title of ownership.

2. The share does not have a period of existence, i.e. the holder’s rights are retained for the entire period of validity of the joint-stock company.

3. The share has limited liability, i.e. the shareholder will not lose more money than he invested in the shares.

4. Indivisibility of shares, i.e. ownership of shares is not associated with the division of rights between the owners, they all act as one person.

5. Splitting and consolidation of shares. Considering the current situation, when determining the nominal price of shares, it is necessary to focus not so much on determining the enterprise’s need for financial resources, but on the effective demand of the population: the availability of free money and trust in the products produced by this enterprise.

5.1. An enterprise can increase the number of investors by reducing the par value of shares, i.e., split shares (this is the so-called split) splitting shares: in exchange for withdrawn old shares, shareholders are given new shares for the same total amount, but with a smaller par value; used to reduce the supply of shares of this type. For example, instead of an existing share with a par value of 1000 rubles. upon splitting, the shareholder will be issued five shares with a par value of 200 rubles.

5.2. In conditions of inflation, if the company's shares are sold at too low a rate, the company's management may resort to consolidation. It is the opposite of a split, i.e. the number of shares is reduced, which can lead to an increase in their market value. For example. With a consolidation coefficient of 3, for every three shares 500 rubles. the shareholder is provided with a nominal value of 1.5 thousand rubles.

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A BOND is a security that certifies the provision of a loan and gives the right to receive a fixed income for a certain period.

BOND CHARACTERISTICS

1. Have the par value indicated on the title of the bond.

2. The amount of interest paid is indicated on the title.

3. They pay annually a fixed percentage of the bond's face value, which is included in the company's costs.

4. Payment of interest is made before payment of other dividend payments. Failure to pay interest is equivalent to bankruptcy of the company.

5. They are urgent in nature, i.e., upon expiration of the expiration date, the bond is redeemed and the borrowed funds are returned to the owner.

6. Resellable.

7. The owner of the bond is a creditor of the company and does not have the right to vote at the meeting of shareholders.

8. The guarantee of repayment of a bond is the right of its owner to part of the issuer’s property.

CLASSIFICATION OF BONDS (TYPES)

1. From the point of view of registration in the company:

Registered bonds are bonds whose owners are registered. Income is credited to the account or a check is sent to the owner.

Bearer bonds are bonds that have a special coupon sheet.

The owner clips the coupon and presents it to the company for payment.

2. In terms of availability of collateral:

Secured - bonds that give its owner the right to claim the main property of the company (real estate, securities, etc.)

Unsecured bonds are bonds that are issued only against the obligations of the issuer, i.e. under his good name.

3. Convertibility point of view:

Convertible – bonds that, after a certain period of time, can be exchanged for shares of a given joint stock company.

Non-convertible.

4. From the point of view of interest calculation (coupon rate):

With a fixed interest rate (decursive) – they have a firmly fixed rate and can be withdrawn early.

With a floating interest rate - for them the rate changes in accordance with the rate of inflation, the interest is revised once every 1-3 years.

With a zero coupon (discount) - purchased at a price below par and redeemed at the par price. The difference between the purchase and sale prices is the discount percentage.

5. In terms of review:

Callable bonds are bonds that give the company the right to redeem the bond before its expiration date.

Irrevocable.

6. From the point of view of the availability of an option:

With an option, this is a bond that gives the owner the right to return it to the company after a certain period (usually 3 years). The issuer must repay it at par. This is beneficial for the owner in case of inflation.

No option.

7.4. A bill of exchange as a type of security A bill of exchange is a debt obligation issued for a short term. The bill is used:

As a means of payment;

As a tool for credit relations;

As forms of providing guarantees.

DETAILS OF BILLS:

1. Name “Promissory Note”.

2. An unconditional order to pay a certain sum of money.

3. Payer's name.

4. Payment term.

5. Indication of the place of payment and to whom the payment should be made.

6. Date and place of drawing up the bill.

7. Signature of the issuer of the bill and his seal.

If any details are missing, the bill is considered invalid.

AVAL is a bill of exchange guarantee for the drawer, issued by a third party to increase the reliability of the bill.

ALLONG is an additional sheet to a bill of exchange (or a designation on the reverse side).

ENDORSEMENT – an endorsement on the reverse side of a bill of exchange, which records the transfer of the right of claim under the bill of exchange from one person to another. The person making the endorsement is called the ENDORSER.

CLASSIFICATION OF BILLS:

1. Depending on the occurrence of the debt and the functions performed:

Commercial – a debt obligation of a certain form, resulting from a deferred payment for a commodity transaction. The debtor company does not pay the money immediately, but issues a bill of exchange.

Commodity is a commercial security, the basis of which is the financing of commodity transactions. He formalizes the receipt of a loan provided by the seller of the goods to the buyer.

Financial - a bank security issued for the purpose of creating funds is a receipt for a loan. A bank bill serves to attract temporarily free funds from individuals and legal entities on a short-term basis. Its main difference from a fixed-term deposit is that the owner of the bill can, with the help of an endorsement, transfer it to someone in payment for services.

2. By the nature of presentation:

Urgent - a bill with a payment date in a certain number of days. Can be purchased early by the bank. The size of the discount is set by the bank depending on the amount and term of circulation. Term bills are usually purchased by firms when they know exactly on what day they will need the money.

Upon sight – a bill of exchange can be presented for payment on any day, starting from the day after the day of drawing up.

3. By type:

A promissory note (solo bill) is a promissory note in which the debtor undertakes to unconditionally pay the creditor an agreed amount upon expiration of a certain period.

A transferable bill (bill of exchange) is a strictly formatted financial document containing an unconditional order from the creditor (drawee) to the debtor (drawee) to pay a certain amount within a certain period to the creditor himself or another person (remitee).

7.5. Other types of securities

1. DEPOSIT and SAVINGS CERTIFICATES, which are a written certificate of the issuing bank about the deposit of funds, certifying the right of the depositor (beneficiary) or his successor to receive, upon expiration of the established period, the amount of the deposit (deposit) and interest on it.

Only banks can act as issuers of deposit and savings certificates. Certificates of deposit are intended exclusively for legal entities, and savings certificates are intended for individuals. Certificates must be urgent. Circulation periods for certificates: deposit certificates (from the date of issue of the certificate to the day when the certificate owner receives the right to withdraw the deposit) - one year, savings certificates - three years.

2. A security is also a CHECK containing a written request from the drawer to the payer to pay the check holder the amount specified in it. Checks are always written on forms prepared by banks. The drawer is the person who issued the check, the check holder is the person in whose name the check is issued, and the payer is the bank or credit institution in which the drawer has an account.

3. STORAGE CERTIFICATE - a document certifying the storage agreement concluded between the parties, and

4.BILL OF LADING - a document of title certifying the right of its holder to dispose of the cargo specified in the bill of lading and to receive the cargo after completion of transportation.

5. WARRANT - an additional certificate issued along with a security and giving the right to special benefits to the owner of the security after a certain period (for example, to purchase new securities).

6.DEPOSITORY RECEIPT - a freely tradable security issued for shares of a foreign company deposited in a depositary bank. In world practice, there are two types of depositary receipts:

American Depositary Receipts, which are admitted to trading only on the American stock market;

Global depositary receipts, transactions with which can be carried out in other countries.

7. FUTURES - a document providing for a firm commitment to buy or sell securities after a certain period at a pre-agreed price. Futures are one of the financial instruments for accounting for the future value of securities. An investor receiving a futures contract agrees to buy shares at a future date, with the date of purchase fixed in the contract. The seller of the contract agrees to sell the securities after a period of time specified in the contract at today's price. Thus, a person planning to purchase securities in the future can avoid the risk that their price will increase. However, if their price falls, the buyer loses the opportunity to purchase these securities at low prices.

8. OPTION - a bilateral agreement on the transfer of the right to purchase (sell) securities at a pre-fixed price at a certain time. If the price of that security rises, the buyer exercises the written option contract and buys the security at a price below the market price. If the price falls, the buyer may not exercise the option. Thus, by purchasing an option, the investor receives the right to buy from the seller of the option or sell to him an agreed amount of securities at an agreed price or to waive his right. For the opportunity to choose, the investor pays the option seller a premium - the option price paid by the buyer to the seller against the writing of the option contract. There are two types of options based on expiration dates:

1) American - can be executed on any day before the expiration of the contract;

2) European - can be executed only when the contract expires.

9. RIGHTS TO SUBSCRIBE - this is a short-term security certifying the pre-emptive right to purchase by shareholders a new circulation of securities. Subscription rights arise when a company decides to issue a new edition of shares. With the involvement of new owners, the percentage share of current owners is reduced. This is especially important for owners of a controlling stake.

There is a procedure (specified in the articles of association) according to which each previous owner receives a certificate of rights showing how many newly issued shares he can buy and the selling price. The sale price is usually below the current stock price, which is only valid for a month.

The owner must decide to buy him new shares, sell the subscription rights, or ignore the offer. The certificate can be quoted along with the shares of this company on the market.

7.6. Stock exchange and features of its functioning

STOCK EXCHANGE is a part of the securities market organized in a special way, on which purchase and sale transactions are carried out with these securities through the mediation of exchange members. The peculiarity of exchange trading is that transactions are always made in the same place, at a strictly defined time - during a session (or exchange session) and according to clearly established rules that are binding on all participants. The exchange creates a clear organizational structure and mechanism for concluding and executing transactions with exchange-traded assets, as well as a reliable system for monitoring the results of transactions.

Basically, exchanges are created in the form of an association, government agency or joint stock company.

The activities of stock exchanges in Russia are regulated by the Federal Law “On the Securities Market”. Only an organizer of trading on the securities market that does not combine the activities of organizing trade with other types of activities, with the exception of depository activities, can be recognized as a stock exchange.

The stock exchange has the right to establish quantitative restrictions on the number of its members.

The stock exchange is obliged to ensure the transparency and publicity of ongoing trading by notifying its members about the place and time of trading, the list and quotation of securities admitted to circulation on the exchange, the results of trading sessions, as well as providing other information.

The supreme body of the exchange is the general meeting of its members, which resolves general financial and organizational issues and determines internal rules. In the intervals between meetings, the supreme body is the exchange council (committee, supervisory board), which exercises control over current activities, and an executive directorate is created. Certain divisions are also created, each of which performs specific functions.

SECTION 8. MONETARY AND FINANCIAL RELATIONS

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CURRENCY MARKET (1st approach) is a sphere of economic relations that manifests itself in the implementation of transactions for the purchase and sale of foreign currency, securities in foreign currency, as well as transactions for the investment of foreign currency capital.

CURRENCY MARKET (2nd approach) is an official financial center in which transactions for the purchase and sale of currencies and foreign currency values ​​are carried out.

FUNCTIONS OF THE CURRENCY MARKET

1. Timely implementation of international payments.

2. Regulation of exchange rates.

3. Currency risk insurance.

4. receiving profits from foreign exchange market participants in the form of differences in exchange rates.

5. Carrying out a foreign exchange policy aimed at state regulation.

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TYPES OF CURRENCY MARKETS

1. World currency markets serve the movement of cash flows and goods, redistribute capital between countries. The movement of foreign exchange resources occurs through foreign exchange transactions, foreign investments, transactions with securities and foreign exchange, credit and settlement services for the purchase and sale of goods. The world's largest markets: London, Paris, New York, Frankfurt, Singapore, Hong Kong.

1. National foreign exchange markets - ensure the movement of cash flows within the country and maintain communication with world currency centers.

2. Regional currency markets – serve communication between countries within a particular region.

The commodity in the foreign exchange market is currency.

CURRENCY – the monetary unit of a country used in a given state.

EXCHANGE RATE - the price of a monetary unit of one country, expressed in monetary units of another country:

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An increase in the exchange rate means an increase in the value of the national currency in relation to the foreign currency. A depreciation means a fall in the value of a national currency relative to a foreign currency.

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International currency and settlement relations, the procedure and scope of use of foreign currencies by citizens and credit institutions are regulated by the Law of the Russian Federation “On Currency Regulation and Currency Control”, as well as a number of instructions of the Central Bank of the Russian Federation and the State Customs Committee. The Law establishes the procedure for conducting foreign exchange transactions, types of currencies and foreign exchange values, the competence of currency regulation and control authorities, the rights and obligations of residents and non-residents, their responsibilities in relation to currency values.

Settlements between residents in Russian currency are carried out without restrictions, and the procedure for acquiring Russian currency by non-residents is established by the Central Bank of the Russian Federation.

Individuals can transport currency and foreign currency valuables subject to customs regulations.

The objectives of foreign exchange control are to ensure compliance with foreign exchange laws.

It is carried out by currency control authorities, which include:

Government;

Agents are organizations that are authorized to carry out the control function (State Customs Committee of the Russian Federation, Federal Service for Currency and Export Control, Ministry of Economic Development and Trade, authorized banks).

TYPES OF CURRENCIES

1. Currency of the Russian Federation – rubles in circulation in the form of bank notes and coins; funds in rubles in accounts in banks and other credit institutions of the Russian Federation;

funds in rubles in the accounts of credit institutions located outside the Russian Federation on the basis of an agreement concluded by the Central Bank of the Russian Federation with the relevant authorities of a foreign state; securities in Russian currency,

2. Foreign currency – banknotes in the form of banknotes and coins that are in circulation in the relevant foreign state, as well as funds in accounts in monetary units of foreign states.

Currency values ​​are material objects involved in the sphere of international monetary and financial relations.

These include:

Foreign currency;

Payment documents in foreign currency (bills of exchange, checks, letters of credit);

Stock values ​​(stocks, bonds);

Natural precious stones (diamonds, rubies, emeralds, sapphires, alexandrites, pearls) in their original and processed form;

Noble metals (gold, silver, platinum and platinum group metals

– palladium, iridium, osmium, rhodium, ruthenium).

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CURRENCY OPERATIONS are operations related to the transfer of ownership of currency assets, import and shipment to the Russian Federation, as well as export and expulsion of currency assets, and international money transfers.

GROUPS OF CURRENCY OPERATIONS

1. Current - transfers to the Russian Federation and back of foreign currency when exporting or importing goods and services, making payments related to loans for a period of no more than 90 days; transfers of dividends, interest and other investment income to the Russian Federation and back; non-trade transfers.

2. Capital – direct investments, portfolio investments; obtaining loans for a period of more than 90 days; providing deferred payment for export-import transactions for a period of more than 90 days and other currency transactions.

Spot exchange transactions

A transaction with immediate delivery of currency is carried out on SPOT terms.

The spot rate reflects how highly the national currency is valued outside a given country at the time of the transaction. The essence of spot transactions is the purchase and sale of currency on the terms of its delivery on the second business day from the date of conclusion of the transaction, at the rate that was fixed at the time of its conclusion. The delivery date of the currency is called the value date - this is the date when the corresponding funds should actually be at the disposal of the parties to the transaction.

“Spot” conditions include determining the exchange rate based on the market rates of the day, or market quotes (establishing the rate of the national currency to a foreign one), which is reported by the media and the ticker.

A currency quote combines two sides:

–  –  –

Direct quotation determines the price of foreign currency in a given amount of domestic currency.

The reverse quotation determines the price of the national currency in a certain amount of foreign currency.

The currency quote contains 2 values:

–  –  –

$1 = 63.05/63.25 The difference between the buying and selling rates of currency is the margin - this is payment for the services and potential risks of the institution trading currency.

–  –  –

Currency position - the ratio of claims (applications) and obligations of a commercial bank in foreign currency. If they are equal, the currency position is considered closed, and if they do not match, it is considered open. An open position can be short if the amount of obligations for the sold currency exceeds the amount of requirements, long if the amount of requirements for the currency exceeds the amount of obligations.

Example The bank had closed positions at the beginning of the day. During the day he sold 1000 $, bought 20,000 €, bought 1,500, sold 10,000 €. Determine the bank's positions for each currency.

Solution $ - open, short.

€ - open, long

Open, long.

The determination of currency positions ends the bank's working day.

Cross transactions Cross transactions were born as the settlement of currency exchange between two parties through a third party. The quotation of two currencies, neither of which is the national currency of the party to the transaction, is called a cross rate. Cross rates are based on direct quotations of currencies against the dollar.

–  –  –

Arbitration operations CURRENCY ARBITRATION - the purchase of currency and its simultaneous sale in order to profit from the difference in exchange rates. Currency arbitrage is divided into spatial and temporal.

Spatial currency arbitrage is carried out according to the following scheme: a participant buys currency on the market at the spot rate. Then he transfers the purchased currency to another foreign exchange market and sells it at the spot rate of this market and makes a profit due to the difference in exchange rates.

Time arbitrage is an operation carried out with the aim of making a profit from differences in exchange rates over time. Profit can be made if currency is purchased at the spot rate and the currency is placed on deposit for a certain period, and then at the end of the deposit period the currency is sold at a different spot rate.

Example A market participant buys $50,000 on the exchange at the spot rate of 29 rubles/$ and enters into a contract to sell in 1 month at the rate of 29.5 rubles/$. The interest rate on the international foreign exchange market is 5.56% per annum. Calculate the profit from an arbitrage operation.

–  –  –

BALANCE OF PAYMENTS is a systematic record of the results of all economic transactions between residents of a given country and the rest of the world or non-residents of other countries during a certain period of time (month, quarter, year).

The balance of payments reflects the quantitative and qualitative expression of the volume, structure and nature of the state’s foreign economic operations.

Currently, the main document regulating the methodology for compiling the balance of payments is the Balance of Payments Guide developed by the IMF. In accordance with this guide, the BALANCE BALANCE IS DIVIDED INTO

TWO PARTS:

1. Current accounts (export-import movement of goods, balance of wages, balance of current transfers).

2. Capital accounts.

BALANCE OF PAYMENT SECTIONS

1. The balance of payments for current transactions includes the trade balance, i.e.

the relationship between exports and imports of goods; balance of services (includes services united by a non-commodity nature of origin; transportation, export and import of licenses and patents; trade in technology, foreign trade insurance operations, etc.) and non-commercial payments (balance of “invisible”

operations)

2. The balance of capital and credit movements reflects payments and receipts for the export-import of public and private long-term and short-term capital. This includes direct and portfolio investments, bank deposits, commercial loans, social financial transactions, etc.

BIBLIOGRAPHICAL LIST

1. Neshitoy A.S. Finance, money circulation and credit: textbook / A.S.

Unsewn. – 4th ed., revised. and additional – M.: Dashkov and K, 2013.

2. Gorelik V.N. Finance: Money flow system: monograph / V.N.

Gorelik. - M.: IC RIOR: NIC Infra-M, 2012. - 150 p.

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“No. 1-2/2015 2. Koshkina M.V. Economic policy of the state in the field of culture and art / M.V. Koshkina // Property management.-2004.-No.1.-P.48-58.3. Mitin D.V. Cultural policy as a factor of social...”

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The textbook “Finance and Credit” was prepared in accordance with the program of the course “Finance and Credit”; intended for students studying in the specialties “Management Economics”, “Commerce Business”, “Mathematical Methods in Economics”, etc. The manual reveals the essence of finance and its role in the development of the economy and social sphere, the theory and practice of the development of financial relations. The forms of credit and the stages of organizing the credit process in a bank are considered. The problem has been solved to provide the necessary minimum knowledge to students and those who are interested in issues of finance and credit. Therefore, the main issues in the field of credit finance have been selected, making it possible to navigate them.

Books and textbooks on the discipline Finance and Credit:

1. Ed. T.M. Kovaleva. Finance, money circulation and credit: textbook / team of authors;. - M.: KNORUS. - 168 p. - 2016
2. Klimovich V.P.. Finance, money circulation and credit: textbook / V.P. Klimovich. - 4th ed., revised. and additional - M.: Publishing house "FORUM": INFRA-M, - 336 p. - (Professional education). - 2015
3. Neshtoy A. S.. Finance and credit: Textbook / A. S. Neshtoy. - second edition, revised. and additional - M.: Publishing and trading corporation "Dashkov and Co.", - 576 p. - 2011
4. V. V. Asaul, A. V. Dementyev, D. K. Molchanov; edited by V.V. Asaul. Finance, money circulation and credit: textbook. allowance; SPbGASU. - St. Petersburg, - 322 p. - 2010
5. Troshn A. N., Mazurina T. Yu., Fomkina V. I.. Finance and credit: Textbook. - M.: INFRA-M, - 408 p. - (Higher education). - year 2009
6. Makarova L. A.. Finance and credit: textbook / L. A. Makarova. - Tambov: Tamb Publishing House. state tech. university, - 120 p. - year 2009
7. Nikolaeva T.P.. FINANCE AND CREDIT: Educational and methodological complex. - M.: Publishing house. EAOI center. - 371 p. - 2008
8. Ed. G.B. Pole. Finance. Money turnover. Credit: textbook for university students studying in economics (080100) and management (080500) - 3rd ed., revised. and additional - M.: UNITY-DANA, - 639 p. - (Series “Golden Fund of Russian Textbooks”) - 2008

LECTURE NOTES ON THE COURSE “FINANCE AND CREDIT”. FROLOVA T.A.

Topic 1. Monetary circulation and monetary system. 3

1. Historical development of money. 3

2. Functions of money. 4

3. The concept of money circulation. 5

4. Elements of the monetary system.. 5

5. Liquidity. 6

6. Laws of monetary circulation. 6

Topic 2. Finance and financial system. 8

1. History of finance and financial relations. 8

Financial market objects. 10

2. Functions of finance. 10

FINANCIAL SYSTEM OF THE RF... 12

4. Financial policy. 13

Topic 3. State budget as the main link of the financial system.. 15

1. Economic essence and content of the budget. 15

2. General principles for constructing the state budget. 17

3. Budget device. 18

4. Budget process. 19

5. Interbudgetary relations. 21

6. State budget expenditures. 22

7. State budget revenues. 24

8. Budget deficit. 25

9. Public debt management.. 26

Topic 4. Regional and local budgets.. 28

1. Fiscal federalism.. 28

2. Expenses of regional and local budgets. 31

3. Revenues of regional and local budgets. 32

4. Other funds... 33

Topic 5. ENTERPRISE FINANCE.. 35

1. Principles of corporate finance. 35

2. Cash funds of enterprises. 36

3. Cash flow management. 37

Topic 6. CREDIT AND CREDIT SYSTEM.. 38

1. The essence of credit and its functions. 38

2. Forms of credit. 40

3. Credit system. 40

4. Monetary policy. 42

Topic 7. TAXES AND TAX SYSTEM.. 43

1. Types of taxes. 43

2. Laffer curve. 45

Topic 8. INSURANCE.. 45

Topic 1. Monetary circulation and monetary system

1. Historical development of money

Money is an independent form of exchange value of all other goods and has a commodity origin.

The following forms of value exist:

• simple or random (1 product is exchanged for another product);
• complete or expanded (1 product is exchanged for another of many products);
• universal form of value (many goods are equivalent to one - an intermediary);
• monetary form (money as a single equivalent).

The historical development of money is associated with the improvement of tools, the emergence of an increasing variety of relationships between people and, accordingly, the need to exchange the results of labor.

In a subsistence economy, the result of production was consumed by the producer himself. In commodity production based on the social division of labor, the producer and the consumer are different persons. The product is produced for the purpose of sale and passes to the consumer through purchase and sale. Thus, a commodity differs from a product in that its path from production to consumption runs through the market.

The most ancient ancestor of the market was the exchange of surplus products (product exchange). It was replaced by direct commodity exchange, when goods are directly exchanged for goods. But with the development of production, direct exchange of goods became more and more difficult and expensive. A product appears that has a certain value and can be exchanged for other goods (skins, stones, mammoth tusks, etc.). But the exchange is associated with certain difficulties.

Over time, people had one product that could be used for trade (exchange) with relative ease. This commodity was gold (or silver). Its advantages are obvious: (1) supplies are limited, so the cost is high; (2) it is divisible, so it is easy to create money of different scales; (3) everyone needs it. The physical properties of precious metals (homogeneity, strength, intrinsic value) meet the requirements for a monetary product.

Later, people figured out how to protect gold coins from damage (they wore out and lost their value). Those who held someone's gold reserves (later they would be called banks) began to issue receipts, and these receipts began to be accepted as confirmation of payment (instead of the gold itself). It is extremely important that the seller began to accept a receipt as payment, although he did not actually see the gold - it was enough for him to know that such and such a merchant had it. Monetary circulation received a main feature and feature that continues to this day - fiduciary, i.e. trust. Of course, this leaves a large field for deception for unscrupulous individuals, but it greatly simplifies and speeds up the turnover.

Metal money made it possible to move on to minting coins. In the 17th century, paper money appeared for the first time in China, which was freely exchanged for gold.

Even later, the right to issue uniform receipts throughout the entire territory of any state was assigned to one person, who received the name of the central (issuing) bank. The receipts were called bills of exchange for the banker, i.e. banknotes When the right of banknote holders to exchange banknotes for gold, obligatory for the Central Bank, was abolished, the monetary system finally turned into a fiduciary one (and, as a result, part of the money ceased to be backed by assets, i.e., gold, by the Central Bank).

In the 70s In the 20th century, money broke its connection with gold.

Then business entities came to the conclusion that it is not at all necessary in the process of interaction to transfer all receipts to each other, in other words, to pay in cash. You can pay off your debt by granting the counterparty the right to receive funds belonging to the debtor. Moreover, the funds themselves are nothing more than the bank’s debt. The era of electronic money has arrived, i.e., to put it simply, settlements by changing entries in a computer. Of course, cash circulation has not completely lost its significance and scope of use, but the overwhelming majority of money is no longer in cash - in developed countries, more than four-fifths of money is bank money.

Types of money. Issue – the right to issue money into circulation. This right belongs to the state represented by the Central Bank.

Cash is coins, banknotes (bank notes) and treasury notes. Coins are minted, as a rule, by the Treasury.

Non-cash money - entries in accounts at the Central Bank and in its branches, but first of all, these are deposits in commercial banks. These deposits are also called bank money.

Paper money is a sign; it serves money circulation and serves as a means of purchase and payment.

Treasury notes are paper money issued by the Treasury.

Credit money (issued) - bills, banknotes and deposit money.

2. Functions of money

The functions of money represent the main tasks performed by money. There are many such tasks, three main ones can be distinguished:

1. A means of circulation (payment) for goods and services. Each seller (be it a seller of goods, a producer of raw materials, a worker - a seller of labor) receives money and has the right to buy whatever he wants with it. In other words, by performing the function of a medium of exchange, money eliminates the old, inconvenient and less reliable barter procedure.
2. A means of measuring the value of goods (measure of value). When interacting, people could evaluate the results of their activities (which they exchange) in some other way. Money serves as a universal measure of value, the scale on which the vast majority of calculations are based
3. Store of value (saving money for future marketable assets). Money is indispensable for saving: it is very convenient to store. Of course, you can store axes, but it will take some time before their manufacturer will be able to sell his goods and receive money in return. Additionally, storing axes can be more expensive than storing money. Thus, the relative cheapness, ease of storage and liquidity make money a means of accumulating wealth.

The fulfillment of its first function by paper money presupposes, firstly, the acceptability of the banknote system as a means of payment. It's about ease of use. Secondly, the dangerous enemy of money as a means of circulation is a commodity shortage. Then commodity exchange (barter) is used.

Thirdly, inflation interferes with the fulfillment of the first function of money; exchange is carried out without money.

The fulfillment of the 2nd and 3rd functions of money is also hampered by inflation.

3. The concept of money circulation

Money circulation is the circulation of cash flows in cash and non-cash form. Such circulation is possible due to the fact that someone has an excess of money (supply), and someone feels a need (demand). Money circulation serves the flow of goods, works and services, and it is through it that the financial system functions (accumulation and redistribution of resources). Money circulation is the blood vessels for the financial system.

Money circulation has two main forms: cash and non-cash.

Cash circulation

Non-cash money circulation

This is cash flow, i.e. banknotes from one owner to another. Cash circulation is the most labor-intensive and least secure process of redistribution of goods. Cash circulation contains restrictions (in terms of convenience and practicality) for business entities. It is less subject to state control, therefore in certain cases it is more desirable for PP. Realizing this, the state sets certain restrictions on cash turnover, which mainly concern the maximum amounts of cash payments and the period of storage of cash at the enterprise's cash desk.

This is the movement of electronic money, i.e. account entries. Developed non-cash circulation is possible only with a developed banking system, when the speed, guarantee of payment processing, and the quality of related services provide greater convenience compared to cash circulation, which means that cash circulation is abandoned. The main instruments of non-cash circulation are securities (bills, checks) and also credit cards. A particularly important indicator is the speed of funds turnover. The amount of money can be regulated not by issuing new money, but by accelerating the turnover of existing ones.

4. Elements of the monetary system

Currently, all countries have a state-organized monetary system. The elements of the monetary system are those of its components on which the organization of the circulation of monetary resources is based:

Currency unit	Price scale	Types of money	Emission system
A currency established by law. In the Russian Federation it is the ruble.	Establishing the content of the price of a monetary unit through the weight content of gold (now it does not exist).	Banknotes and coins are unconditional obligations of the Central Bank and are backed by all its assets. They are required to be accepted for all types of payments.	The issue of cash, the organization of its circulation and withdrawal from circulation on the territory of the Russian Federation are carried out exclusively by the Central Bank.

5. Liquidity

The payment function of money gives rise to the main problem of money - the problem of liquidity.

Liquidity is the ability of any real asset to act as a means of payment.

Anything that acts as money is money. Any asset for which there is demand in the market can be a means of payment. The degree of liquidity means the comparative value of the costs of exchanging a given asset and similar costs of exchanging another asset (transaction costs).

Assets are arranged according to the degree of liquidity (increasing on the balance sheet). Cash is an absolutely liquid asset; exchange costs are zero.

Liquidity characterizes 3 properties of any asset:

A real opportunity to use it as a means of payment;

The speed of transformation of an asset into a means of payment;

The ability of an asset to maintain its nominal value over time and space (anti-inflation stability).

There are 4 motives in favor of cash:

1. liquidity preference (the term was introduced by Keynes), which refers to the demand for cash due to its absolute liquidity;
2. transaction motive (people prefer cash because of its ease of use as a means of payment);
3. precautionary motive (cash as a reserve in case of unexpected payments);
4. speculative motive (the owner does not risk investing in securities due to risk).

6. Laws of money circulation

The circulation of money does not occur spontaneously - it is subject to certain laws. Their knowledge allows you to quickly respond to other changes, make appropriate decisions and influence economic development. These rules of circulation are called the laws of money circulation.

The basic law of monetary circulation, the formula of which was presented by K. Marx, connects prices, velocity of circulation and quantity of money:

This formula is more valid for gold circulation. When gold is circulated as money, due to limited gold reserves, the relationship between the amount of gold (coins) and goods is established spontaneously, but relatively accurately: excess money is withdrawn from circulation and goes into the sphere of accumulation (treasures), and if there is a shortage of coins, the withdrawn part is returned their treasures into circulation.

When credit money appears, unsecured emission occurs. In this case, inflation is inevitable, i.e. depreciation of money due to its increased quantity. It is necessary to monitor that part of monetary obligations that can be mutually repaid without additional issue. The above equation becomes:

The quantity theory of money uses the Fisher equation: M*V = P*Q.

M – circulating money supply;

V is the velocity of circulation of the monetary unit;

P – average price level;

Q – quantity of goods and services.

This law is called the law of paper money circulation. Since the amount of money can now increase without limit, the role of the state in monetary regulation is colossal. One type of regulation is to maintain the structure and volume of the money supply - the total purchasing power of funds.

If the question “how much money is needed?” There is no clear answer, then to the question “what kind of money should there be more and what kind of money should be less?” You can try to give an answer by analyzing monetary aggregates. They represent the constituent elements of the money supply and are based on a liquid approach.

	Comments
	cash in circulation (coins and banknotes)	In developed countries, non-cash circulation is of predominant importance (it is closely related to credit, and credit provides significant savings in distribution costs). The role of this unit is small.
	M0 + account balances	Funds in bank accounts are used to make current payments. Therefore, the volume of this aggregate largely characterizes the liquidity of the money supply. At the same time, the more working capital of an enterprise is “frozen” in the account, the less funds can be invested in fixed capital. This unit largely serves as a means of circulation.
	M1 + time and savings deposits	“Deposit money” has less liquidity, but can be converted into cash over a period of time (for example, into the M1 aggregate). The M2 unit largely functions as a means of accumulation, although it also partially serves as a means of circulation.
	M2 + savings deposits, as well as securities	This unit serves as a storage medium. At the same time, if the securities that make up this aggregate also mean bills of exchange, then in this case this aggregate can serve as a medium of exchange.

There is a dual demand for money. The value of money lies in its universal purchasing power: we value money because it can be used to pay for any purchase.

But there is another type of demand for money when it is not spent immediately (canned, deferred demand). This stored amount of money is the money supply. The amount of money as a means of payment is the difference between monetary income and monetary expenditures of the population.

A cash reserve is created when storing money turns out to be more profitable than spending it.

Topic 2. Finance and financial system

1. History of finance and financial relations

The term “finance” arose in the 13th – 15th centuries. in the trading cities of Italy and at first denoted any monetary payment. Further, the term gained international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of state funds of funds.

This term reflected, firstly, monetary relations between two entities, i.e. money acted as the material basis for the existence and functioning of finance.

Secondly, the subjects had different rights in the process of these relations: one of them (the state) had special powers.

Thirdly, in the process of these relations, a national fund of funds was formed - the budget, i.e. these relations were of a stock nature.

Fourthly, the regular flow of funds into the budget could not be ensured without giving taxes, fees and other payments a state-compulsory nature, which was achieved through the legal rule-making activities of the state and the creation of an appropriate fiscal apparatus.

Finance is a set of monetary relations organized by the state, during which the formation and use of national funds of funds is carried out for the implementation of economic, social and political tasks.

Finance is understood as an economic category that reflects the level of economic relations between the seller and the buyer regarding funds and investment values.

Prerequisites for the emergence of finance:

1. In Central Europe, as a result of the first bourgeois revolutions, the power of monarchs was significantly curtailed, and the monarch was separated from the treasury. A nationwide fund of funds arose - a budget that the head of state could not use individually.
2. The formation and use of the budget has become systematic in nature, i.e. systems of state revenues and expenditures with a certain composition, structure and legislative support arose. Even then, 4 areas of spending were identified: for military purposes, management, economics and social needs.
3. Taxes in cash acquired a predominant character, whereas previously state revenues were formed mainly through taxes in kind and labor duties.

The development of finance and financial relations is inextricably linked with the development and formation of states. After all, finance is a relationship of accumulation and distribution and subsequent redistribution of national wealth, and redistribution is necessary precisely for the implementation of the functions of the state. With the widespread development of market relations, financial relations become more diverse. In particular, their only connection with the treasury and the whims of the monarch, king or shah is eliminated. Monetary relations are developing and improving, some in-kind duties and dues are being replaced by a more progressive form of taxation - cash.

The functions of the state are being improved and developed: in addition to maintaining the court and court households, as well as the army and police, the state becomes an active conductor of the economic interests of large traders and manufacturers, financing colonial conquests and protectionist policies. The control function of finance appears and develops: one of the slogans of the American Revolution, “No taxation without a representative,” is well known, which is associated with the desire of residents of the United States - then subject to Great Britain - to participate in determining the directions and volumes of spending tax revenues in the budget. At the same time, the institution of interpolations developed - questions asked to a representative of the executive branch in parliament.

The further development of financial relations is associated with the democratization of society. In most states, parliamentary (representative) power is being strengthened, a policy of social stability is emerging, which implies the need to redistribute funds in favor of the poorest strata, establishing social guarantees in the form of benefits and pensions ( Bismarck was the founder of pensions and social security in general), implementation of special government programs for social protection and support (medicine, education, employment, etc.).

The 20th century brought particularly rapid transformations in this area; During the first third, the totality of various financial relations develops into the financial system in the form in which it exists to this day. Thus, the improvement of finance is inextricably linked with the development of society: the more complex and higher the level of relations between people, the more perfect the structure of finance. They are therefore generally inseparable from man, since they represent distribution and redistribution created by man wealth

Financial market objects

2. Functions of finance

Finance is a relationship for the creation and redistribution of public goods and wealth. In this sense, they are closely related to money circulation and the sphere of credit. At the same time, money performs various functions, the main of which can be called the function of a universal equivalent, a commodity that serves as a measure of the value and cost of other goods, works and services. In contrast, finance is relationship, i.e. are an instrument for the accumulation and distribution of wealth, which is carried out, among other things, with the help of money.

Finance - relationships by:

Finance is also closely related to credit: the latter creates the basis for expanded reproduction and accelerated accumulation of wealth. Through credit relations, the distribution function of finance is partially implemented and the movement of cash and commodity flows is directed. The healthy functioning of finance largely depends on the state of money circulation and credit: the more developed the monetary and credit systems, the more efficient the accumulation and redistribution of social wealth.

Finance functions
Distribution	Control	Regulatory
Various incomes arise in the process of production and trade. However, in order to meet the needs of society for development, it is necessary to redistribute part of these and other incomes. This is done by withdrawing part of the specified income, creating funds from these funds and spending the funds for socially useful purposes: education, medicine, construction, defense, etc.	Control over the correct accumulation and distribution of funds and resources. Therefore, finance also makes it possible to determine the most optimal ways to spend accumulated funds so that the needs of society are satisfied as much as possible.	Providing subsidies from the state budget.

The control function of finance is closely related to the distribution function. Among the huge variety of financial relations, there is not a single one that is not associated with control over the formation and use of monetary funds.

With the help of finance, the state distributes the social product not only in physical form, but also in value. In this regard, it becomes possible and necessary to control the provision of cost and natural-material proportions in the process of expanded production.

Finance exercises control at all stages of the creation, distribution and use of a social product and ND. Ruble control is carried out over production and non-production costs, the correspondence of these costs to income, the formation and use of fixed assets and working capital.

Control function object Finance are financial indicators of the activities of enterprises and organizations.

Depending on the entities exercising financial control, there are:

National (non-departmental) financial control (carried out by state authorities and management);

On-farm financial control (carried out by the financial services of the enterprise);

Public financial control;

Independent financial control (carried out by auditors).

State financial control in the Russian Federation is exercised by the highest bodies of state power and administration - the Federal Assembly and its 2 chambers (State Duma and Council of Federation). The Federal Assembly establishes the Accounts Chamber as a permanent body of state financial control. The Accounts Chamber exercises control over the timely execution of revenue and expenditure items of the federal budget, the legality and timeliness of the movement of budget funds in the Central Bank of the Russian Federation and other financial and credit institutions of the Russian Federation.

At the regional level, financial control is carried out both by regional authorities and by specially created control bodies.

Control over the state of the republican budget and its execution is carried out by the Committee on Budget, Taxes, Banks and Finance of the State Duma of the Russian Federation.

The Ministry of Finance of the Russian Federation exercises control over the production and financial activities of enterprises, the timely provision of the federal budget with financial resources, and their rational use.

The task of monitoring the receipt, targeted and economical use of public funds is assigned to the bodies of the Federal Treasury of the Ministry of Finance of the Russian Federation. The main task of the Treasury is to organize, implement and control the execution of the republican budget and state extra-budgetary funds. Effective control is also carried out by the Ministry of Taxes of the Russian Federation. Its main task is to monitor compliance with tax legislation, the correctness of their calculation, and the completeness and timeliness of their inclusion in budgets.

According to the timing of implementation, financial control is divided into:

a) preliminary (carried out at the stage of drawing up, reviewing and approving financial plans, draft budgets. Designed to prevent irrational spending of material, labor and financial resources);

b) current (carried out in the process of implementing financial plans, its task is timely control of the correctness and appropriateness of expenses incurred and income received);

c) subsequent (organized in the form of checks and audits of the correctness, legality and expediency of financial transactions made. Its main tasks are to identify shortcomings and omissions in the use of resources; compensation for damage caused; bringing the perpetrators to administrative and financial responsibility; taking measures to prevent further cases of violation of financial discipline).

3. Financial system

The financial system is a collection of various links in financial relations, each of which is characterized by features in the formation and use of funds of funds and a different role in social reproduction.

FINANCIAL SYSTEM OF THE RF

National finance

Finance of business entities

State budget - government

Off-budget funds - municipal

State credit - joint stock

Insurance funds - private

Stock market - public

The financial system includes the following links of financial relations:

the state budget; off-budget funds; government loan; insurance funds; stock market; enterprise finance.

All of the above financial relations can be divided into 2 subsystems:

q national finances (meets the needs of expanded reproduction at the macro level);

q finances of economic entities (used to ensure the reproduction process with funds at the micro level).

At the level of public finance, the development and implementation of a unified financial policy of the country takes place, on which the efficiency of enterprises largely depends.

National funds of monetary resources are created through the distribution and redistribution of income generated in sectors of material production. The important role played by the state in the field of economic and social development leads to the need to centralize a significant part of financial resources at its disposal.

Decentralized funds of funds are formed from the cash income and savings of the enterprises themselves.

National finance plays a leading role:

In ensuring a certain pace of development of all sectors of the national economy;

Redistribution of financial resources between economic sectors and regions of the country, as well as forms of ownership and individual segments of the population.

The basis of a unified financial system is the finances of the PP. National finances are organically connected with the finances of the PP. On the one hand, the main source of state budget revenue is income generated in the sphere of material production. On the other hand, enterprises attract budgetary allocations and bank loans.

The object of financial management is financial relations. The subjects of management are government bodies and economic entities.

At the macro level, financial management bodies are:

Federal Assembly;

The president;

Government;

Ministry of Finance;

State Customs Committee;

Ministry of Taxes and Duties;

Federal Commission for the Securities Market;

Executive bodies of extra-budgetary funds.

4. Financial policy

Financial management is carried out within the framework of financial policy.

Elements of financial policy:

1. long-term policy;
2. current policy;
3. deflationary policy;
4. budget policy;
5. tax policy;
6. foreign exchange policy (discount, foreign exchange subsidies, diversification of foreign exchange reserves);
7. credit policy;
8. accounting (discount) policy;
9. financial management policy.

The role of finance in the functioning of economic systems is as follows:

Financial support for the needs of expanded reproduction;

Financial regulation of economic and social processes (borrowed funds);

Financial incentives for the effective use of all types of economic resources (attracted or diverted funds).

There are 3 types of economic regulation:

Self-regulation;

Government regulation;

Regulation through enterprise finance.

Financial incentives for the efficient use of all economic resources are carried out using the following methods:

• through effective investment of financial resources;
• through the creation of incentive funds;
• through the use of budget incentives;
• through the use of financial sanctions.

The direct impact of finance on economic development is carried out through the financial mechanism.

The financial mechanism is five interrelated elements that facilitate the organization, planning and stimulation of the use of financial resources:

q financial methods (investing, taxation);

q financial leverage (price, profit, %, discount);

q legal support;

q regulatory support;

q information support.

Financial methods are ways of influencing financial relations on the economic process, which operate in two directions: through the management of the movement of financial resources and through market relations associated with the comparison of costs and results, material incentives and responsibility for the effective use of funds.

The impact on market relations is due to the fact that the functions of finance in the sphere of production and circulation are closely related to commercial calculation - this is a comparison in monetary terms of the costs and results of financial and economic activities.

The goal of using commercial calculation in its most general form is to obtain maximum profit at minimum costs, although goals may change at different periods of the enterprise’s activity. The effect of financial methods is manifested in the formation and use of monetary funds.

Financial leverage is the operating methods of financial methods.

Legal support for the functioning of the financial mechanism includes legislative acts, regulations, orders and other legal documents.

Regulatory support for the functioning of the financial mechanism is instructions, standards, norms, tariff rates, guidelines, explanations, etc.

Information support for the functioning of the financial mechanism is associated with obtaining various economic, commercial, financial and other information. Financial information includes information on the financial stability and solvency of partners and competitors, prices, exchange rates, dividends, interest on the commodity, stock, and foreign exchange markets, information on the state of affairs on the exchange and over-the-counter markets, information on the financial and commercial activities of business entities, etc. Possession of information helps to assess the situation on the markets.

Topic 3. State budget as the main link of the financial system

1. Economic essence and content of the budget

In the formation and development of the economic and social structure of society, state regulation, carried out within the framework of policies adopted at each historical stage, plays a large role. One of the mechanisms that allows the state to pursue economic and social policies is the financial system and the state budget that is part of it.

A budget is a form of formation and expenditure of a fund of funds intended to financially support the tasks and functions of the state and local government.

The state budget is a centralized fund of monetary resources necessary to perform the functions of the state. These functions boil down to the redistribution of funds and monitoring their effective use. In this sense, the functions of the budget are similar to the functions of finance, which is understandable, since the budget is only part of the whole. At the same time, in relation to the state budget, it is customary to distinguish the following functions related to the state structure:

(1) intervention in the economy;

(2) maintaining the state administrative apparatus;

(3) law enforcement and judicial system;

(4) medicine, health and education;

(5) national defense.

The state budget, being the main financial plan of the state, gives authorities a real economic opportunity to exercise power. The budget reflects the size of the financial resources needed by the state and thereby determines the tax policy in the country. The budget fixes specific areas for spending funds, redistribution of income and GDP, which allows it to act as an effective regulator of the economy.

At the same time, the budget can be considered as an economic category that expresses certain economic relations. The emergence and development of the budget is associated with the origin and formation of the state. The state uses the budget as one of the main instruments for ensuring its activities and carrying out economic and social policies.

The state budget performs the following functions:

Redistribution (redistribution of GDP);

Regulatory (state regulation and economic stimulation);

Stimulating (financial support for the budgetary sector and implementation of state social policy);

Controlling (control over the formation and use of centralized funds of funds).

The distribution function of the budget is manifested through the formation and use of centralized funds of funds at the levels of state and territorial government and management. In developed countries, up to 50% of GDP is redistributed through budgets at various levels. With the help of the budget, the state regulates the economic life of the country, economic relations, directing budget funds to support and develop industries and regions. By regulating economic relations in this way, the state is able to purposefully increase or restrain the pace of production, accelerate or weaken the growth of capital and private savings, and change the structure of demand and consumption.

The redistribution of GDP through the budget has 2 interconnected stages:

q generation of budget revenues;

q use of budget funds (budget expenses).

The control function of the budget operates simultaneously with the distribution function and presupposes the possibility and obligation of state control over the receipt and use of budget funds.

The state budget is the main link of the financial system. It is a form of formation and use of a centralized fund of funds to ensure the functions of public authorities.

According to the level of management, the state budget is divided into the federal budget and the budget of the constituent entities of the Federation.

The state budget is the main financial plan of the country, approved by the Federal Assembly of the Russian Federation as a law. Through the state budget, the state concentrates a significant share of ND to finance the national economy, socio-cultural events, strengthening the country's defense and maintaining state bodies. power and management.

With the help of the budget, income is redistributed, which creates the opportunity to maneuver funds and purposefully influence the pace and level of development of social production. This makes it possible to implement a unified economic and financial policy throughout the country.

Budget funds should be used to implement investment policy, subsidize enterprises, and finance the conversion of defense industries. Budget expenditures are designed to contribute to the formation of a rational structure of social production, building up scientific and technical potential, and updating the material and technical base.

The role of the state budget is not limited to financing the sphere of material production. Budget resources are also directed to non-productive areas. Social and cultural enterprises and institutions are financed from budgetary and extra-budgetary funds. These expenses make a huge difference. They allow the state to develop a public education system, finance culture, meet the needs of citizens for medical care, and provide social protection.

Budget expenditures on social and cultural events have not only social, but also economic significance, because represent the most important part of the cost of reproduction of labor and serve to improve material and cultural standards of living.

2. General principles for constructing the state budget

Principles:

1. Unity of the budget system (unity of budget legislation, monetary system, budget classification and policy, forms of budget documents and reporting).
2. Delineation of income and expenses between levels of the budget system.
3. Independence of budgets at all levels (each has its own sources of funds, its own expenses).
4. Budget balance (no deficit. Surplus - excess of income over expenses. If a surplus is detected, it is reduced by: reducing income from the sale of state or municipal property, income from the sale of state reserves and resources; directing budget funds to pay off debt obligations; transferring part of the income budgets of other levels).
5. Effective and economical use of budget funds.
6. Budget reliability (reliability of indicators and their adequacy to the economic situation).
7. Completeness of reflection of budget income and expenses.
8. Publicity.
9. Targeted and targeted nature of the use of budget funds.

The unity of the budget system is ensured by a unified legal framework, the use of unified budget classifications, the unity of the form of budget documentation, the provision of the necessary statistical and budget information from one budget level to another for the preparation of consolidated budgets, agreed upon principles of the budget process, and the unity of the monetary system. In addition, the principle of the unity of the budget system is based on the interaction of budgets at all levels, carried out through the use of regulatory revenue sources, the creation of target and regional budget funds, and their partial redistribution. The mechanism for implementing the principle of unity of the budget system is a unified socio-economic policy (including tax policy).

The independence of budgets is ensured by the presence of their own sources of income and the right to determine the directions of their use and expenditure. Budgets’ own sources of income include: revenue sources established by law for each budget level; deductions from regulatory income sources; additional sources established independently by representative authorities of constituent entities and local authorities.

Decisions of representative authorities on budgetary issues are subject to publication in the media within the time limits established by the relevant representative authority, or are brought to the attention of the population in another way based on the capabilities of the relevant representative authority. If a decision is made to reject the draft budget or not to approve reports on budget execution and the use of funds from extra-budgetary and foreign exchange funds, the necessary information about the reasons for such a decision must be published in the media.

3. Budget device

Budgetary relations represent the financial relations of the state at the federal, regional and local levels with state, joint-stock and other enterprises, as well as the population regarding the formation and use of a centralized fund of monetary resources.

The budget is a form of formation and expenditure of funds to ensure the functions of government bodies.

The totality of all types of budgets forms the state budget system. The interrelationship between its individual links, the organization and principles of constructing the budget system is called the budget device.

The fundamentals of the budget structure are determined by the form of government of the country, the legislative acts in force in it, and the role of the budget in social reproduction and social processes. The construction of the budget system also depends on the form of state and administrative structure.

According to the degree of division of power between the center and administrative-territorial entities, all states are divided into:

Unitary;

Federal;

Confederate.

Unitary (single) state is a form of government in which administrative-territorial entities do not have their own statehood or autonomy. The country has a single constitution, common laws and authorities for all systems, and centralized management of economic, social and political processes in the state. The budget system of a unitary state consists of 2 links - state and local budgets.

Federal (united) state- this is a form of government in which state entities or administrative-territorial entities included in the state have their own statehood and have a certain political independence within the limits of the competencies distributed by them and the center. The budget system of federal states is three-tier and consists of the federal budget, budgets of federation members and local budgets.

Confederate (union) state is a permanent union of sovereign states created to achieve political or military goals. The budget of such a state is formed from contributions from the states included in the confederation. The member states of the confederation have their own budget and tax systems.

The Russian budget system consists of 3 links:

n federal budget of the Russian Federation;

n budgets of national-state and administrative-territorial entities, called budgets of the subjects of the Federation, or regional budgets. These include: republican budgets of the republics within the Russian Federation, regional, regional, and autonomous budgets, as well as city budgets of Moscow and St. Petersburg;

n local budgets (city, district, township, rural).

The budget system is called upon to play an important role in the implementation of the state's financial policy, the goals of which are determined by its economic policy.

Today, the Russian budget system consists of the federal budget, 21 republican budgets, 56 regional and regional budgets, including 1 autonomous region, city budgets of Moscow and St. Petersburg, 10 district budgets of autonomous okrugs and about 29 thousand local budgets.

The federal budget serves as the main financial plan of the state, approved by the Federal Assembly (adopted by the State Duma and approved by the Federation Council) and having the status of a federal law. Through the federal budget, the financial resources necessary for their subsequent redistribution and use for the purposes of state regulation of the country's economic development and the implementation of social policy are mobilized. In addition, federal budget funds cover such costs as maintaining government bodies, meeting the country's defense needs, financial assistance to the constituent entities of the Federation, servicing public debt, and replenishing state reserves.

4. Budget process

The budget process is the activity of government bodies regulated by law in the preparation, consideration, approval and execution of budgets.

Participants in the budget process are:

• President of the Russian Federation;
• bodies of legislative (representative) power;
• executive authorities (highest officials of the constituent entities of the Russian Federation, heads of local government, financial authorities, bodies collecting budget revenues, other authorized bodies);
• monetary authorities;
• state and municipal financial control bodies;
• state extra-budgetary funds;
• chief managers and administrators of budgetary funds;
• recipients of budget funds, as well as credit organizations carrying out individual operations with budget funds.

The drafting of the federal budget is carried out by the Government of the Russian Federation and begins no later than 10 months before the start of the next financial year.

Budgeting is based on:

1. Budget message of the President;
2. forecast of socio-economic development of the territory (territory, region) for the next financial year;
3. the main directions of the territory's budget and tax policy for the next financial year;
4. forecast of the consolidated financial balance for the territory for the next financial year;
5. development plan for the state or municipal sector of the territory’s economy for the next financial year.

The decision to begin work on drawing up a draft budget is made by the President of the Russian Federation 18 months before the start of the relevant financial year. The government prepares a draft budget message and submits it to the President. The President presents the budget message to the Federal Assembly and sends it for publication in the press.

The President's budget message is sent to the Federal Assembly no later than March of the year preceding next financial year. The Budget Message of the President defines:

(1) the main indicators of the socio-economic development of the Russian Federation for the corresponding period;

(2) consolidated financial balance for the territory of the Russian Federation;

(3) the main directions of the budget policy of the Russian Federation;

(4) information on government revenues on the territory of the Russian Federation;

(5) draft budget of the Russian Federation;

(6) draft consolidated budget of the Russian Federation;

(7) assessment of the execution of budgets of the previous and current financial years.

The Ministry of Finance organizes work on drawing up a draft federal budget and a forecast of the consolidated state budget; submits the draft budget to the Government of the country. After the Government approves the draft federal budget, it is considered and adopted by the State Duma and the Federation Council.

The set of budgets as a whole for the Russian Federation or the corresponding territory is called the consolidated budget.

This pooled budget is not approved by the legislature and is used for analytical and statistical purposes. The consolidated budget is not approved by anyone.

Within 24 hours from the date of submission of the draft federal law on the federal budget for the next financial year to the Duma, the Duma Council sends it to the Budget Committee to prepare a conclusion on the compliance of the submitted documents and materials with certain requirements. The Duma is considering the draft law on the federal budget in 4 readings.

When considering a draft budget, parliament decides on the following main characteristics:

1. the upper limit of the volume of allocations of the current expenditure budget and the development budget (expenditure part);
2. limits of budget imbalance (surplus or deficit in the form of absolute value or percentage of projected revenues).

After approval of the main characteristics of the draft budget, budget allocations are approved by item in accordance with the functional budget classification. Within the framework of the approved budget items of this classification, any type of appropriation in an amount equal to or exceeding 1 billion rubles must be indicated in a separate line.

By ensuring the execution of the federal budget, the Ministry of Finance controls the receipt and intended use of funds. After the year for which the budget was drawn up, it draws up a report on the execution of the federal and consolidated budgets and submits them to the Government of the Russian Federation. Every year in May of the year following the reporting year, the government submits to Parliament a reporting report and a report on the execution of the republican budget for the past financial year.

An integral part of the budget process is budget regulation - partial redistribution of financial resources between budgets of different levels.

The preparation and execution of the budget is based on the budget classification, which identifies target areas of government activity arising from the main functions of the state.

Budget classification is a grouping of income and expenses of budgets of all levels, as well as sources of covering the deficit of these budgets, assigning them a classification of coding groups.

This classification is uniform for budgets of all levels and is approved by the Federal Law. It is used for:

Approval, preparation and use of budgets;

Control over the expenditure of budget funds;

Ensuring comparability of indicators at all levels;

Drawing up consolidated budgets in various territories.

Budget classification is the provision of targeted allocation of financial resources; with its help, the problem of to whom, how much and for what purposes financial resources are allocated from the federal budget is solved. It should enable economic analysis of government spending.

Budget classification includes:

Classification of budget revenues of the Russian Federation;

Functional classification of budget expenditures of the Russian Federation;

Economic classification of budget expenditures of the Russian Federation;

Classification of sources of internal financing of budget deficits of the Russian Federation;

Classification of sources of external financing of the federal budget deficit;

Classification of types of public internal debts of the Russian Federation, constituent entities of the Russian Federation, municipalities;

Classification of types of state external debt of the Russian Federation and state external assets of the Russian Federation;

Departmental classification of federal budget expenditures.

Budget schedule is a document on the quarterly distribution of budget revenues and expenses and receipts from sources of financing the budget deficit, establishing the distribution of budget allocations between recipients of budget funds.

Budgetary allocations are budgetary funds provided for by the budget schedule to the recipient or manager of budgetary funds.

5. Interbudgetary relations

Interbudgetary relations are relations regarding the formation of budgets by government bodies of the Russian Federation, constituent entities of the Russian Federation and local self-government.

The basis of interbudgetary relations is fiscal federalism. It is built on the following principles:

• balancing the interests of all participants in interbudgetary relations;
• independence of budgets at all levels;
• legislative delimitation of spending powers and revenue sources from budgets of all levels;
• objective redistribution of funds from international budgets to equalize the level of budgetary provision of regions and municipalities;
• unity of the budget system;
• equality of budgets at different levels.

Interbudgetary relations and the policy of fiscal federalism underlie fiscal regulation.

6. State budget expenditures

Budget expenditures are funds aimed at financially supporting the tasks and functions of state and local self-government.

Since the state needs, first of all, to ensure stability in society, the main areas of spending are: law enforcement agencies, the state apparatus, and social goals.

The following types of expenses are financed exclusively from the federal budget:

ensuring the activities of the President, the Federal Assembly, the Accounts Chamber, the Central Election Commission, federal executive bodies and their territorial bodies, other expenses for general government;

functioning of the federal judicial system;

carrying out international activities in the general federal interests (cultural, scientific and information cooperation, contributions to international organizations);

national defense and ensuring state security, implementing the conversion of defense industries;

fundamental research and promotion of scientific and technological progress;

support for rail, air and sea transport;

support for nuclear energy;

liquidation of consequences of emergencies and natural disasters on a federal scale;

exploration and use of outer space;

formation of federal property;

servicing and repaying the government debt of the Russian Federation;

replenishment of state reserves of precious metals and precious stones, state material reserves;

holding elections and referendums;

federal investment program;

financial support for constituent entities of the Russian Federation;

official statistical records.

Depending on the impact on the process of expanded reproduction, budget expenditures are divided into:

• current (to meet current needs);
• capital (for investment needs) or development budget.

The budget for current expenses includes expenses for routine maintenance and major repairs (restoration) of housing and communal services, environmental protection facilities, educational institutions, health care and social security institutions, science and culture, physical culture and sports, the media, government authorities and management, local governments and other expenses not included in development expenses.

The development budget includes allocations for innovation and investment activities related to capital investments in socio-economic development, for own environmental programs and environmental protection measures (in excess of allocations allocated from environmental extra-budgetary funds), and other expenses for expanded reproduction. It is this budget that determines the scale and speed of production re-equipment and R&D.

Funds from the development budget are used on a competitive, repayable, urgent and paid basis for the implementation of investment projects that ensure structural restructuring of the economy.

State expenditures in the sphere of material production occupy the largest share in the expenditure side of both the federal budget and the budgets of the constituent entities of the federation and local budgets.

The composition of costs for socio-cultural activities includes allocations for education and science, healthcare and physical education, culture and art, the media, and the implementation of social policy.

The size of budgetary allocations for defense depends on the international situation, the policies pursued and the economic capabilities of the state.

Management costs include budgetary allocations for the maintenance of government and administrative bodies, courts and prosecutors, and law enforcement agencies.

Among other federal budget expenses, a special place is occupied by the costs of current servicing of state internal and external debt.

The following target budget funds are allocated as part of federal budget revenues and expenditures:

Federal Road Fund of the Russian Federation;

Customs System Development Fund;

Fund for Reproduction of Mineral Resources;

Federal Border Service Development Fund;

Foundation of the Ministry of Atomic Energy of the Russian Federation;

Federal Fund of the Ministry of Taxes and the Federal Tax Police Service of the Russian Federation;

Federal Environmental Fund;

State Crime Fighting Fund.

Targeted budget funds guarantee their intended use with greater reliability.

Through budget expenditures, budget recipients are financed - organizations in the production and non-production spheres. Thus, budget expenditures are of a transit nature.

7. State budget revenues

Budget revenues are funds received free of charge and irrevocably in accordance with the current classification and existing legislation.

In the process of generating budget revenues, a part of the GDP created in the process of social reproduction is forcibly withdrawn in favor of the state. On this basis, financial relations between the state and taxpayers arise.

Budget revenues have significant differences in their payers, objects of taxation, methods of withdrawal, payment terms, etc. But at the same time, they differ in unity, because pursue one goal - the formation of the revenue side of budgets of different levels. They are characterized by a monetary form and impersonality.

Budget revenues can be tax and non-tax nature.

The revenue side of the budget is formed mainly from taxes. The leading place among tax revenues of the federal budget is occupied by VAT. Together with customs duties and income tax, it exceeds 2/3 of tax revenues. Also, a significant share of revenue comes from excise taxes and payments for the use of natural resources, and a tax on the purchase of foreign banknotes.

Non-tax budget revenues are generated as a result of either the economic activity of the state itself, or the redistribution of already received revenues across levels of the budget system.

Among the non-tax revenues of the federal budget, one can highlight income from the sale of state-owned property, income from the sale of state reserves and from foreign economic activity, as well as income from federally owned property, incl. profit of the Central Bank of Russia. In addition, federal budget revenues take into account funds from targeted budget funds.

Taxes received by the respective budgets are called fixed revenues.

To cover its expenses, additional funds may be transferred to a lower budget from a higher budget in addition to the income assigned to it. These are called regulatory revenues.

Regulatory revenues allow regional and local authorities to have the financial resources necessary to perform their functions and balance the revenue and expenditure parts of their budgets.

There is a Federal Fund for Financial Support of Subjects of the Federation. It is intended to provide financial assistance (transfers) to regions with a per capita budget income below the average per capita for all subjects of the Federation. Such regions receive the status of “in need of support.”

Transferred funds from a higher budget used to finance a targeted event are called subventions.

Investments and other capital expenditures are made from the federal budget when their significance goes beyond regional interests.

The structure of budget revenues is flexible and is largely determined by specific economic conditions. For example, in countries with a high standard of living, the basis of tax revenues is the income of individuals, and in countries with a low standard of living - indirect taxes and taxes on legal entities.

The aggregated scheme of income and official transfers received can be presented as follows:

1. Current income:

1.1. Tax revenues

• income, income and capital gains taxes;
• contributions to state social funds;
• taxes levied depending on the wage fund;
• property taxes;
• domestic taxes on goods and services;
• taxes on foreign trade and foreign economic transactions;
• other taxes, fees and duties;

1.2. Non-tax revenues

Income from property and business activities;

Administrative fees and charges, sales revenue;

Receipts from fines and sanctions;

Other non-tax revenues.

1. Income from capital transactions

• sale of fixed capital;
• income from the sale of government reserves;
• income from the sale of land and intangible assets;
• receipts of capital transfers from non-state sources;

1. Official transfers received

From non-residents;

From other government bodies (subsidies, subventions).

8. Budget deficit

Balancing budgets at all levels is a necessary condition for fiscal policy. The excess of expenses over income constitutes a budget deficit. Budget surplus is the excess of budget revenues over its expenses;

If there is a budget deficit, priority financing is given to expenses included in the current expenditure budget. The size of the federal budget deficit cannot exceed the total volume of budget investments and expenses for servicing the public debt of the Russian Federation in the corresponding financial year.

The size of the budget deficit of a constituent entity of the Russian Federation cannot exceed 15% of the volume of budget revenues of the constituent entity without taking into account financial assistance from the federal budget.

The size of the local budget deficit, approved by a regulatory act of a representative body of local self-government, cannot exceed 10% of local budget revenues without taking into account financial assistance from the federal budget and the budget of a constituent entity of the Russian Federation.

If, in the process of budget execution, the maximum deficit level is exceeded or there is a significant decrease in revenue from budget revenue sources, then a mechanism for sequestering expenditures is introduced, which consists of a proportional reduction in government spending (by 5, 10, 15, and so on percent) monthly for all budget items during remaining time of the current financial year. Protected articles are not subject to sequestration (their composition is determined by the Federal Assembly of the Russian Federation, as well as by the representative authorities of the constituent entities of the Russian Federation).

Sources of financing the budget deficit are approved by the legislative (representative) authorities in the budget law for the next financial year according to the main types of funds raised.

Loans from the Bank of Russia, as well as the acquisition by the Bank of Russia of debt obligations of the Russian Federation, constituent entities of the Russian Federation, and municipalities during their initial placement cannot be sources of financing the budget deficit.

Sources of financing the federal budget deficit are:

1) internal sources in the following forms:

loans received from credit institutions in Russian currency;

government loans carried out by issuing securities on behalf of the Russian Federation;

budget loans and budget credits received from budgets of other levels of the budget system;

proceeds from the sale of state-owned property;

the amount of excess of income over expenses on state reserves and reserves;

changes in fund balances in federal budget accounts;

2) external sources in the following forms:

government loans made in foreign currency by issuing securities on behalf of the Russian Federation;

loans from foreign governments, banks and firms, international financial organizations, provided in foreign currency.

State credit reflects credit relations regarding the state's mobilization of temporarily free funds of enterprises, organizations and the population on a repayable basis to finance government expenditures.

The lender is individuals and legal entities, the borrower is the state represented by its bodies.

The state attracts additional financial resources by selling bonds and other government securities on the financial market. This form of credit allows the state to attract additional financial resources to cover the budget deficit without issuing emissions for these purposes.

State The loan is also used to stabilize money circulation in the country.

Classification of government credit.

1. Depending on the borrower, government loans are divided into:

Placed by central authorities;

Placed by local governments.

2. At the location of the state. credit can be internal and external.

3. By terms of attraction:

• short-term (up to a year);
• medium-term (from one to 5 years);
• long-term.

The size of the government loan is included in the amount of the country's public debt.

9. Public debt management

Public debt is divided into principal and current, depending on the maturity date.

Public debt is the entire amount of issued but not repaid government loans with interest accrued on them as of a certain date or for a certain period.

The national debt is divided:

1. Internal and external.
2. Basic and current.

State domestic debt RF means a debt obligation of the Government of the Russian Federation, expressed in the country's currency, to legal entities and individuals. The forms of debt obligations are loans received by the Government of the Russian Federation, government loans made through the issue of securities on its behalf, and other debt obligations guaranteed by the Government of the Russian Federation.

State external debt- this is debt in foreign currency for outstanding external loans and unpaid interest on them.

The principal debt is the entire amount of government debt that is not due and cannot be presented for payment within a given period.

Current public debt is the state's debt for obligations for which payment has become due.

World experience shows that public debt should not exceed half of the country's GDP. Significant amounts of public debt reflect the crisis state of the Russian economy.

The federal debt does not include debt obligations of national-state and administrative-territorial entities of the Russian Federation, i.e. municipal loans, if they are not guaranteed by the Government of the Russian Federation.

Servicing public debt is expressed in the implementation of operations to place debt obligations, repay them and pay interest on them. These functions are carried out by the Central Bank of the Russian Federation.

Public debt management is understood as a set of financial activities of the state related to the establishment of annual maximum values ​​of public debt, the issuance and repayment of loans, the organization of payment of income on them, carrying out conversions and consolidation of loans.

Payment of income from loans and their repayment is one of the main items of budget expenditures. The government is forced to resort to prolongation of loans and other obligations (extending repayment periods) or conversion (reducing the amount of interest paid on loans).

The main methods of financing government debt are monetary emission and the issuance of government loans.

There are different criteria for assessing external debt. For example, they compare the size of the debt and the need for its repayment and interest payments with the amount of exports. The limit of danger is considered to be an excess of the amount of debt compared to exports by 2 times, increased danger - by 3 times.

Currently, the country is unable to fully service its external debt. Required:

q organization of practical work on the return of interstate debts, because Russia continues to be the world's largest creditor;

q it is necessary to abandon international financial loans used to cover current budget needs, and direct them to the implementation of targeted federal programs related to the revival of production.

Topic 4. Regional and local budgets

1. Fiscal federalism

The principle of fiscal federalism is a fundamental rule of budget law, and lies in the fact that administrative-territorial units within the state have their own sources of income and directions for spending funds.

Chapter 1 of the Constitution of the Russian Federation contains the principles defining the federal structure of the state. The specifics of Russian federalism are as follows.

1. Equal subjects of the Russian Federation - republics, territories, regions, cities of federal significance, autonomous regions, autonomous districts.

2. Constitutional principles of federalism:

• state integrity,
• unity of the system of state power,
• delimitation of subjects of jurisdiction and powers between government bodies of the Russian Federation and government bodies of the constituent entities of the Russian Federation.

Each municipal entity, in accordance with the law “On the financial foundations of local self-government of the Russian Federation,” has its own budget and the right to receive funds from the federal budget and the budget of a constituent entity of the Russian Federation in the process of budget regulation. Thus, local budgets are provided with a guaranteed share of federal taxes.

The revenue side of the local budget is formed from tax revenues, part of the profits of municipal enterprises, subsidies and subsidies from higher budgets and municipal loans.

Local budget revenues include local taxes, fees for trade, fees for issuing licenses, rent for land and buildings, fines, court fees, and utility bills.

Budgets’ own sources of income include:

• • revenue sources established by law for each budget level;
  • deductions from regulatory income sources;
  • additional sources.

The formation of budgets of the subjects of the Federation is based on the principle of interbudgetary relations.

The means of budgetary regulation of local budgets include:

q regulatory deductions from regulatory income;

q subsidies and subventions (a subsidy is a general-purpose subsidy, and a subvention is a special-purpose subsidy);

q funds allocated from the fund for financial support of municipalities;

q funds received through mutual settlements from the federal budget and the budgets of the constituent entities of the Russian Federation.

The fund for financial support of municipalities is created in the budgets of the constituent entities of the Russian Federation and is distributed according to a formula that takes into account the population of the municipality, the share of children of preschool and school age in the total population, the per capita provision of funds of the municipality, etc.

Regulatory deductions from regulatory revenues include shares of federal taxes and shares of taxes of constituent entities of the Russian Federation assigned to local budgets on an ongoing basis. They, along with local taxes and fees, belong to the own revenues of local budgets.

If there are insufficient budget funds to cover expenses exceeding the minimum budget, or in cases of temporary financial difficulties in the process of implementing the approved budget, it is possible to obtain interest-bearing or interest-free loans, as well as issue loans for investment purposes. The maximum ratio of the total amount of loans, credits, and other debt obligations of the budget and the volume of its expenses is established by the laws of the Russian Federation.

Independence of budgets means, in addition to having its own sources, also the right to determine the directions of their use and expenditure. Thus, the independence of budgets is the main and most important element of fiscal federalism. Another element is the precise procedure for budget relationships.

Expenses: regional law enforcement agencies, notaries, advocacy, regional support programs, support for small businesses, loans to farmers, investment tax credits.

The relationship between budgets at different levels (budget regulation) can be analyzed by considering the transfer of funds from one budget to another. As a rule, a higher budget allocates targeted funds for a lower budget. The basis of budget regulation is the distribution of sources of income established by law between budgets of different levels. As part of budgets, target and reserve budget funds can be created, the funds of which, in order to implement social, environmental and other programs, eliminate the consequences of natural disasters, carry out other activities, and cover deficits, can be transferred free of charge in the form of subventions, subsidies and subsidies to the budgets of lower levels.

At the legislative level, relations between budgets can be regulated in two ways: by enshrining them in a normative act and by signing an agreement on the division of powers between representatives of the state and the region.

As for the delimitation of tax payments between budgets, this is usually achieved either by assigning different taxes to different budgets, or by assigning part of the collected taxes to lower-level budgets. In addition to the division of tax revenues, relations between budgets can be built in the image and likeness of civil legal relations. This means that if a lower budget incurs any expenses for a higher budget, the latter reimburses these expenses according to quarterly information on the expenses incurred.

In exceptional cases, if local budget funds are insufficient to reimburse expenses, upon notification from financial authorities, the Ministry of Finance of the Russian Federation makes an advance transfer of funds for these purposes with their subsequent offset according to the established reporting submitted by financial authorities. Advance receipts are reflected in the accounting of budget execution in financial authorities as funds received from the republican budget of the Russian Federation. Thus, the general state budget can reimburse expenses for the maintenance of public authorities, expenses associated with ensuring the activities of people’s deputies, reimbursement of expenses for paying the difference in interest rates, compensation for damage caused to citizens, compensation for damage and expenses for paying compensation to rehabilitated citizens, payment of compensation victims of political repression, costs associated with storage, repair, forwarding, transportation of confiscated property and treasures that are subject to transfer to federal ownership, costs of paying benefits and compensation and other costs.

The basis of the relationship between budgets of various levels is the need to achieve the so-called minimum budget, i.e. carried out in accordance with the consolidation in accordance with social policy of certain guarantees for residents of a given region. The minimum budget represents the estimated volume of income of the corresponding consolidated budget of a lower territorial level, covering the minimum necessary expenses guaranteed by the relevant higher authorities, part of which, in the event of insufficiency of the estimated volume of assigned income, is covered by deductions from regulatory revenues, subsidies and subventions by decision of a higher representative authority.

The expenditure portion of the minimum budget is calculated according to single or group minimum social and financial norms and standards established by a higher representative body of government on the basis of current acts of legislation within the limits of its financial capabilities. The development of minimum social and financial norms and standards submitted for approval by Parliament is carried out by the Government.

The expenditure portion of the minimum budget is determined:

a) the amount of costs included in the budget of current expenses, taken into account by higher authorities in calculations for the budget of the year preceding the planned one (in comparable conditions), taking into account the increase (decrease) in these expenses caused by:

1. the amount of costs agreed upon with a higher authority in the manner prescribed by law in connection with changes in the composition of objects subject to budget financing;
2. decisions of higher authorities on changes in social and financial norms and standards;
3. changes in the price index and tariffs according to calculations of higher executive authorities, carried out in the prescribed manner;

b) the minimum required amount of costs included in the development budget of a given national-state or administrative-territorial entity.

And finally, the relationship between budgets is built on the basis of respect for the rights and obligations established by law or agreement. This is guaranteed by the fact that public authorities are obliged to compensate in full the damage caused to legal entities and individuals as a result of the adoption by these bodies of decisions on budgetary issues in excess of their competence. The damage caused is subject to compensation from the appropriate budget based on a court or arbitration court decision.

2. Expenditures of regional and local budgets

Expenditures of regional and local budgets can be divided into two large groups:

Operating expenses budget

Development budget

All expenses that are not related to the financing of capital construction, investments and other long-term investments (payment of salaries and other types of maintenance, expenses for organizing any festive events, covering losses). As well as expenses for the current maintenance and major repairs of housing and communal services, environmental protection facilities, educational institutions, health care and social welfare institutions, science and culture, physical culture and sports, the media, government and administrative bodies, local governments.

Allocations for financing investment and innovation activities and other costs associated with expanded reproduction. This can be investments in the authorized capital of enterprises, long-term loans for the development of local enterprises, for the socio-economic development of territories, for their own environmental programs and environmental protection measures (in excess of the allocations allocated from environmental extra-budgetary funds), other expenses for expanded reproduction

Executive bodies of power when drawing up draft budgets, clarifying budgets during their execution, representative bodies of power when considering draft budgets, approving budgets and clarifying them during execution, within the limits of their competence, respectively, have the right to:

(1) determine the amount of financing from their budgets for measures for the socio-economic development of the relevant national-state and administrative-territorial entities within the limits of planned budget revenues, provided subsidies, subventions, as well as taking into account borrowed funds;

(2) determine the directions for using budget funds for investments, own target programs, as well as joint programs with representative authorities of other national-state and administrative-territorial entities;

(3) for foreign economic activities, environmental protection measures (in excess of allocations allocated from environmental extra-budgetary funds), restoration of natural and cultural monuments under the jurisdiction of the relevant authorities, improvement of cities, towns and villages, maintenance and major repairs of housing stock, public utility facilities, a network of roads of appropriate importance (in excess of allocated allocations from road funds), educational institutions, health care and social welfare institutions, science and culture, physical culture and sports, the media, for the maintenance of state authorities and management and local government bodies and for other purposes;

(4) to increase, within the limits of available funds, the norms of expenses for the maintenance of housing and communal services, educational institutions, health care and social welfare institutions, science and culture, physical culture and sports, public security police, environmental protection and other purposes;

(5) determine, in the prescribed manner, within the limits of available funds, additional benefits and allowances, as well as, within the limits of available funds, make other expenses for providing assistance to certain categories of the population in need of social protection;

(6) create reserve and target funds within the limits of its budget revenues;

(7) determine the amount of subsidies and subventions to the budgets of lower territorial levels and their intended purpose; (8) combine, on a contractual basis, funds from their budgets with funds from other budgets, as well as enterprises, institutions, organizations, public associations and citizens to finance the construction, repair and maintenance of production and non-production facilities.

3. Revenues of regional and local budgets

Taxes		Borrowing	Transfers from higher budgets
Fixed income - income that, in full or in a firmly fixed share (in percentage), on a permanent or long-term basis, in the prescribed manner, goes to the corresponding budget	Regulatory income - income that, in order to balance income and expenses, goes to the corresponding budget in the form of percentage deductions from taxes and other payments according to standards approved in the prescribed manner for the next financial year	If budgetary funds are insufficient to cover expenses exceeding the minimum budget, or in cases of temporary financial difficulties in the process of implementing the approved budget, executive authorities may receive interest-bearing or interest-free loans from other budgets, and also, by decision of representative authorities, in the prescribed manner, issue loans for investment targets in the respective territories. This includes the right to obtain short-term loans from commercial banks at the expense of one’s own resources	Subsidy– budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses; Subvention- an amount allocated for a certain period from a higher-level budget for specific purposes to equalize the socio-economic development of the corresponding national-state or administrative-territorial entity. Subsidy- budget funds provided to the budget of another level of the budget system, to an individual or legal entity on the terms of shared financing of targeted expenses.

Revenues of regional and local budgets are represented by tax revenues, income from the operation of state property or from the sale or rental of property created through budget investments, loans. However, regional and local budgets also have transfers.

4. Other funds

Off-budget funds are funds from the federal government and local authorities associated with the financing of expenses not included in the budget.

The formation of extra-budgetary funds is carried out through mandatory target contributions. These funds have a strictly designated purpose, which guarantees the use of funds in full. The main feature that distinguishes extra-budgetary funds from the budget is that the spending of the fund's funds is targeted, and the direction of funds is strictly limited to one area.

State extra-budgetary fund - a fund of funds formed outside the federal budget and the budgets of the constituent entities of the Russian Federation and intended to implement the constitutional rights of citizens to pensions, social insurance, social security in case of unemployment, health care and medical care.

The purpose of the creation and operation of extra-budgetary funds consists in the desire to isolate part of the resources due to the fact that the directions in which some resources are spent are extremely important. We are talking, first of all, about funds that are allocated for social payments - pensions, disability benefits, etc. The higher budget either assigns part of its funds to such a fund, or assigns the fund’s own sources of income to the fund. In the second case, a peculiar emergence of a “parallel” budget occurs; As a rule, the development of funds follows exactly this path.

The second type of funds are the so-called economic funds. Their essence is the same: part of tax revenues is separated from the national (regional or local) budget and assigned to some fund (funds for R&D and support of economic sectors, road fund).

The extra-budgetary funds that currently exist in Russia, in addition to the sources of income (taxes) assigned to them, can also receive income from commercial activities. Through various pension programs in developed countries, colossal funds are accumulated and used to invest in various, usually reliable, securities. And the US Road Fund is one of the largest creditors, lending funds to budgets of all levels. Another type of source of income can be borrowing from the loan capital market, including loans from the Central Bank.

Types of income and expenses of funds can be roughly represented as follows:

Income			Expenses
Taxes	Loans	Others	Target	To support activities
As a rule, a significant part of the budget of a particular fund is formed from tax revenues	In case of insufficient funds, funds can usually resort to borrowing from the capital market	Subsidies, transfers of fines and penalties, interest on deposits, as well as voluntary donations	For some purpose. Targeted spending of funds also means their transfer to other budgets	Firstly, the costs of collecting taxes and contributions to funds, and, secondly, the costs of maintaining the management apparatus, buildings, funds, etc.

The stock market is a special type of financial relationship that arises as a result of the purchase and sale of specific financial assets (securities).

The task of the stock market is to ensure the process of capital flow into industries with a high level of income. The stock market serves to mobilize and effectively use temporarily free funds.

Insurance market finances. The insurance market is a system of redistribution of resources in order to minimize or eliminate the adverse consequences of any event. Insurance meets two main features of finance - the accumulation of funds in certain funds and the distribution of these funds in a certain way. The basis of insurance is also national income.

Insurance consists of covering material and other damage to an individual or legal entity at the expense of the funds of the insurance organization, which were formed partially at the expense of the funds of the very person to whom the compensation is paid. That is, on the one hand, insurance can be considered as a unique form of credit: funds are transferred to the insurer in the form of an insurance premium - a regular payment under the insurance contract, and then they are “returned” to the policyholder upon the occurrence of an insured event. On the other hand, by the time the insured event occurred (and received insurance compensation), the policyholder might not have paid not only not the entire amount “due” to him, but even a hundredth of it; he can also continue to pay (and already “overpay”), and the insured event does not occur.

Topic 5. ENTERPRISE FINANCE

1. Principles of corporate finance

Enterprise finance is economic, monetary relations arising as a result of the movement of money and the cash flows generated on this basis, associated with the functioning of the monetary funds created at enterprises.

The principles of corporate finance represent the fundamental rules on which the activities of an enterprise, at least its economic part, are based. Strictly speaking, they represent the principles of functioning of the economic economy as a whole, and in this sense they connect the finances of enterprises with other parts of the financial system:

1. Ensuring diversity and protection of property rights, availability of legal protection and regulation of fundamental rights and obligations. The main type is private property. In most countries it is protected by law (the Constitution). Since ancient times, two main methods of protecting property rights have been used - reclaiming property from illegal possession (the so-called vindication claim) or a demand to stop violations of the owner's rights (the so-called negatory claim).

2. The presence of supply and demand in markets (capital, labor, goods, etc.). As a rule, the “inflow” of funds is ensured by the sale of goods (works, services), and the expenditure of funds is associated with wages, taxes, the purchase of the next batch of goods for sale or raw materials for production, etc. Thus, the finances of an enterprise are unlikely to be able to function normally without the presence of supply and demand in the relevant markets (commodity, raw materials, labor, etc.). Consequently, one of the rules of corporate finance is the need for such markets and free access to them.

3. Free pricing in markets, presence of competition. The manufacturer or seller must fight for a counterparty or buyer; Moreover, the struggle itself has two important aspects: (1) to convince the consumer of the need to purchase and (2) to convince him of his superiority over competitors. The function of the state as a guarantor of the legal protection of business entities is to minimize the negative consequences of this or that market monopolization, as well as to promote the establishment of pure competition.

4. Freedom of contract, will of the parties, decision-making, independence in carrying out activities, subordination only to one’s own profit.

5. The rule of self-financing and self-sufficiency, conducting activities at your own peril and risk.

Enterprise finance is extremely important in the structure of the financial system, because it is they that form the basis of the financial system. The state budget and the finances of foundations accumulate and redistribute enormous resources, but they are still less than the finances of enterprises.

PP finances are the basis of the state's financial system. The state of the finances of the PP influences the provision of national and regional monetary funds with financial resources. The relationship is direct: the stronger and more stable the financial situation, the more secure the national and regional monetary funds.

Enterprise finance performs the following functions:

Distributive (stimulating);

Test.

Distribution The function of finance in an enterprise is that with their help all cash income and funds available in the enterprise are formed and used. Performing a distribution function, finance serves the reproduction process as a whole, ensuring its continuity and influencing all its stages. In addition, the correct distribution of funds has a stimulating effect on improving the performance of the enterprise.

The ability of finance to quantitatively display the progress of the reproduction process allows for its control. The basis of the control function is the movement of financial resources in both stock and non-stock forms. The control function is implemented in two ways:

Through financial indicators in accounting, statistical and operational reporting indicators;

Through financial influence.

But if during the period of a centralized economic management system, enterprises were given strict boundaries for their activities in terms of output, profit, cost and other indicators, now the impact is carried out using economic levers and incentives (taxes, benefits, etc.).

2. Cash funds of enterprises

Financial relations of PP can be combined into 4 groups:

Relations with other PPs and organizations;

Relations within the PP;

Within PP associations (with a parent organization, within a holding);

With the financial and credit system (budgets and extra-budgetary funds, banks, stock exchanges).

The most important aspect of the financial activities of a private enterprise is the formation and use of various funds. Through them, economic activities are provided with the necessary funds, as well as expanded reproduction, financing of scientific and technical progress, development and introduction of new technology, economic stimulation, settlements with the budget and banks.

PP cash funds can be divided into 4 groups.

1. Own funds: authorized capital, additional and reserve capital, investment fund, currency fund.
2. Debt funds: bank loans, commercial loans, factoring, leasing, lenders.
3. Funds raised: consumption funds, dividend payments, deferred income, reserves for future expenses and payments.
4. Operating funds: for paying salaries, dividends, for payments to the budget.

Own funds play a decisive role in the activities of the PP. When organizing a private enterprise, it must pay the authorized capital, at the expense of which fixed assets and working capital are formed. The authorized capital is the source of the PE’s own funds. It acts as the first monetary fund reflected in the liability section of the PP balance sheet.

In this regard, the balance is divided into:

Asset (1. Non-current assets, 2. Current assets);

Liabilities (3. Capital and reserves, 4. Long-term liabilities, 5. Short-term liabilities).

Additional capital includes the results of the revaluation of fixed assets, share premiums of joint-stock companies (sale of shares in excess of their nominal value), gratuitously received cash and material assets for production purposes, budget allocations to finance capital investments, and receipts for replenishing working capital.

Reserve capital is formed through deductions from profits in the amount determined by the charter.

The investment fund is intended for the development of production. It concentrates the depreciation fund, accumulation fund, borrowed and attracted sources.

The funds raised are of a dual nature: on the one hand, these funds are in the circulation of the private enterprise, on the other hand, they belong to its employees (dividends and consumption fund).

Operating funds are created by the PP periodically. In addition to those listed at the PP, a number of other funds of funds are created: to repay bank loans, develop new equipment, and R&D.

3. Cash flow management

One of the areas of financial management of a private enterprise is the effective management of cash flows. A full assessment of the financial condition of a PP is impossible without an analysis of cash flows. One of the tasks of managing DS flows is to identify the relationship between m/s flows of funds and profit, i.e. whether the profit received is the result of effective cash flows or is it the result of some other factors.

Cash flow refers to all gross cash receipts and payments of the PE. The DS flow is associated with a specific period of time and represents the difference between all funds received and paid by the PP for this period.

Managing traffic flows involves analyzing these flows, taking into account the traffic of the traffic, and developing a traffic plan for the traffic. In world practice, the DS flow is designated by the concept of “cache flow”. A cash flow in which outflows exceed inflows is called “negative cash flo”; in the opposite case, it is “positive cash flo”.

Primary activity
Revenue from product sales	Payments to suppliers
Receipt of accounts receivable	Salary payment
Proceeds from the sale of material assets, barter	Payments to the budget and extra-budgetary funds
Advances from buyers	Loan interest payments
	Consumption fund payments
	Repayment of accounts payable
Investment activities
Sale of fixed assets, intangible assets, unfinished construction	Capital investments for production development
Receipts from the sale of long-term financial investments	Long-term financial investments
Dividends, % of financial investments
Financial activities
Short-term loans and borrowings	Repayment of short-term loans, loans
Long-term loans and borrowings	Repayment of long-term loans, loans
Proceeds from the sale and payment of bills of exchange	Dividend payment
Proceeds from the issue of shares	Payment of bills
Special-purpose financing

The need to divide PP activities into 3 types is explained by the role of each and their interrelationship. If the main activity is designed to provide the necessary funds for all 3 types and is the main source of profit, while investment and financial are designed to contribute to the development of the main activity and provide it with additional DS.

As a result of the analysis of cash flows, the PP should receive an answer to the main questions: where do the funds come from, what is the role of each source, for what purposes are they used?

Conclusions are drawn about the sources and provision of each type of activity with the necessary DS. Cash flow analysis is associated with identifying the reasons that influenced the increase or decrease in cash inflows and outflows.

There are 2 methods for calculating DS flow:

1. straight;
2. indirect.

With the direct method, flows are calculated on the basis of PP accounting accounts; in case of indirect – based on balance sheet and F-2 indicators. The basis of calculation for the direct method is sales revenue, and for the indirect method it is profit.

With the direct method, the flow of DS is determined as their balance at the beginning, taking into account their flow for a given period. With the indirect method, the basis for calculation is retained earnings, depreciation, and changes in the assets and liabilities of the PP. An increase in assets reduces the PV PP, and an increase in liabilities increases it, and vice versa.

Topic 6. CREDIT AND CREDIT SYSTEM

1. The essence of credit and its functions

The concept of credit is closely related to the concept of loan capital.

Credit represents the movement of loan capital.

The latter represents temporarily released funds. Their source of origin, as a rule, is profit from production and trade, and this reveals the unity of three forms of capital - industrial, commercial and loan. The difference lies in the fact that loan capital is constantly found only in monetary form, taking neither production nor commodity forms. There are also features in the form of alienation: with the industrial or commodity form of capital, purchase and sale relations are clearly visible, while for loan capital credit relations are more characteristic.

Loan capital is capital in cash provided by its owner to the borrower under certain conditions.

Basic principles of the loan:

1. payment;
2. urgency;
3. repayment;
4. security;
5. target character.

The most important sources of loan capital are:

1. Cash intended for the restoration of fixed capital and accumulated in the form of depreciation;
2. Part of the working capital released in cash due to a discrepancy in the timing of the sale of goods and the purchase of raw materials;
3. Capital that is temporarily free in the interim periods due to the receipt of funds from the sale of goods and the payment of wages;
4. Savings funds;
5. Savings of the population;
6. State savings.

Closely related to the concept of credit is the concept of interest and interest rate. Interest is, relatively speaking, the price of loan capital, the cost for which the owner of free funds (creditor) could find other uses for them. In this regard, a distinction is made between the concept alternative possibilities. Let's imagine that Ivanov is the owner of 1000 rubles. With this money he could purchase a dozen securities, which, according to experts, in a year will cost 115 rubles each. He could also buy property, the demand for which is increasing by about 16-17% per year. This means that the potential borrower of these funds must offer Ivanov a large profit at the end of the year. Those. the amount of money that Ivanov should have must be greater than what he would have received if he had invested in the specified purchases. Calculations show that this “price” for Ivanov’s refusal to invest is at least 17% per annum. Therefore, the essence of the interest rate is to estimate the cost of a potential lender’s refusal to make other investments and force him to choose a loan, as well as reimburse him for the cost of those benefits that he refused as a result of lending.

Credit functions:

• redistributive (capital is redistributed by secondary industries);
• savings in distribution costs (cash is replaced by credit - bills, checks, non-cash payments);
• acceleration of concentration and centralization of capital (large producers-borrowers have the opportunity to quickly concentrate capital and increase production for the purpose of economies of scale. An example would be the issue of bonds, rather than shares, by a rapidly growing joint-stock company to finance its growth);
• credit regulation of the economy (a set of measures carried out by the state to change the volume and dynamics of credit in order to influence economic processes. Different rates and benefits are provided).

2. Forms of credit

1. A commercial loan is a loan provided by an enterprise to another in the form of the sale of goods with deferred payment. Often formalized by a promissory note. The purpose of such a loan is to speed up the sale of goods and profit.
2. Bank loan is a loan provided by banks and other credit organizations to borrowers in the form of cash loans. The scope of its use is wider than commercial.
3. Consumer loan is a loan provided to individuals. It comes in the form of a consumer commercial loan (sale of goods in installments) and a consumer bank loan (loans for consumer needs).
4. State credit is a set of credit relations in which the state acts as a borrower or lender.
5. International credit is the movement of loan capital between countries.

3. Credit system

The credit system is considered:

1. as a set of credit and settlement relations, forms and methods of lending;
2. as a set of credit and financial institutions.

Credit and settlement relations are associated with the movement of loan capital. The credit system as a set of credit and financial institutions accumulates free funds and lends them out. The basis of the credit system are banks.

The implementation of individual banking functions was carried out in ancient times (Ancient Babylon, Egypt, Greece, the Roman Empire). The first predecessors of banks arose in Florence and Venice (1587) on the basis of the money changer business. "Bank" translated from Italian ("banco") means "money changer's bench." The main operations of banks were accepting cash deposits and non-cash payments. There was a charge for this.

Credit and financial institutions are divided into:

Central banks;

Commercial banks;

Central banks issue banknotes and are the centers of the credit system. CBs carry out lending operations at the expense of attracted deposits.

SKFIs include banking and non-banking organizations (insurance, investment companies, savings institutions, Pension funds), they specialize in certain types of lending.

FUNCTIONS OF THE CB:

Emission;

Accumulation and storage of cash reserves of commercial banks;

Lending to commercial banks;

Conducting monetary policy;

Regulation of the credit system.

In most countries (and in the Russian Federation) there is a two-tier credit system, which can be represented as follows:

1. Central (issuing) bank.

2. Commercial banks and credit organizations

Banks and banking operations in any country are the basis for the functioning of the economy, since the overwhelming number of settlements and credit transactions take place through banks. In any country, special attention is paid to the regulation of the banking sector: due to problems in banks, payments of other economic entities suffer, stock exchange panic, withdrawal of deposits and an economic crisis may begin. Banking activities are regulated by the Federal Law "On Banks and Banking Activities".

The operations of credit institutions can be divided into banking credit operations proper:

Bank operations

Credit transactions

1) attracting funds from individuals and legal entities to deposits (on demand and for a certain period); 2) placement of raised funds on one’s own behalf and at one’s own expense; 3) opening and maintaining bank accounts for individuals and legal entities; 4) carrying out settlements on behalf of individuals and legal entities, including correspondent banks, on their bank accounts; 5) collection of funds, bills, payment and settlement documents and cash services for individuals and legal entities; 6) purchase and sale of foreign currency in cash and non-cash forms; 7) attraction of deposits and placement of precious metals; 8) issuance of bank guarantees

1) issuance of guarantees for third parties providing for the fulfillment of obligations in monetary form: 2) acquisition of the right to demand from third parties the fulfillment of obligations in monetary form (so-called factoring); 3) trust management of funds and other property under an agreement with individuals and legal entities; 4) carrying out transactions with precious metals and precious stones in accordance with the legislation of the Russian Federation; 5) leasing to individuals and legal entities special premises or safes located in them for storing documents and valuables; 6) leasing operations; 7) provision of consulting and information services

All banking operations and other transactions are carried out in rubles, and, if there is an appropriate license from the Bank of Russia, in foreign currency. The rules for carrying out banking operations, including the rules for their material and technical support, are established by the Bank of Russia in accordance with federal laws. A credit organization is prohibited from engaging in production, trade and insurance activities.

In accordance with the license of the Central Bank for banking operations, the bank has the right to issue, purchase, sell, record, store and other transactions with securities that perform the functions of a payment document, with securities confirming the attraction of funds into deposits and bank accounts, with other securities, the implementation of transactions with which does not require obtaining a special license in accordance with federal laws, and also has the right to carry out trust management of these securities under an agreement with individuals and legal entities. A credit institution has the right to carry out professional activities in the securities market.

Credit organizations are subject to state registration with the Bank of Russia. The Bank of Russia carries out state registration of credit organizations and maintains the Book of State Registration of Credit Organizations. Credit organizations receive the right to carry out banking operations from the moment they receive a license issued by the Bank of Russia.

4. Monetary policy

Monetary policy is a set of measures in the field of money circulation aimed at changing monetary credit.

Its main goal is to regulate economic conditions by influencing the state of credit and money circulation. Monetary policy has 2 directions:

1. Credit expansion – aimed at stimulating credit and money emission.
2. Credit restriction is their containment and limitation.

In the context of falling production and increasing unemployment, the Central Bank is trying to revive the market situation by expanding credit and lowering the interest rate. If there is a rise in prices, “stock market fever,” or an increase in imbalances in the economy, then credit restrictions, an increase in interest rates, and a curb on emissions are applied.

Monetary regulation is carried out in several directions:

A) state control over the banking system (in order to strengthen the liquidity of banks, i.e. their ability to timely cover the demands of depositors);

B) public debt management. In conditions of budget deficit and growing public debt, the influence of government credit on the loan capital market increases sharply. To do this, the Central Bank buys and sells government bonds, changes the price of bonds and the terms of their sale;

C) regulation of the volume of credit transactions and money emission in order to influence economic activity.

Monetary policy methods are divided into 2 types:

1. General – affect the loan capital market as a whole.
2. Selective – designed to regulate specific types of loans or lending to specific industries).

1. accounting (discount) policy. Used since the mid-19th century. The discount rate is a percentage on loans that the Central Bank provides to commercial banks, or a discount when discounting commercial bank bills.

An increase in the interest rate (the “dear money” policy) leads to a reduction in borrowing by commercial banks. This makes it difficult to replenish banking resources, leads to an increase in interest rates, and a reduction in credit transactions. Carried out to combat inflation. Lowering the rate ("cheap money" policy) leads to an increase in credit and money supply. Carried out in the event of a decline in production.

1. open market operations consist of the sale or purchase by securities from commercial banks of government securities, bankers' acceptances and other credit obligations at a market or pre-announced rate.

The initiator of these operations is the state. In order to prevent inflation, securities are sold. At the same time, their profitability should be higher than that of other assets.

1. reserve norms (requirements)- this is part of bank deposits and other liabilities that must be kept in an account with the Central Bank. CBs do not have the right to use this reserve to carry out their operations.

By regulating the required reserve ratio, the state increases or decreases the total money supply in the country. If the standards increase by 2 times, then commercial banks will be forced to reduce credit emission. In addition, this will force the bank to reduce current accounts and use part of the funds to increase reserves. As a result, the money supply decreases, and interest rates on loans increase. All this helps in the fight against inflation. If it is necessary to increase the money supply, then the norms are reduced.

Selective methods of monetary policy include:

Control over certain types of loans;

Regulation of risk and liquidity of banking operations.

Topic 7. TAXES AND TAX SYSTEM

1. Types of taxes

Taxing people is as old as time. One of the most famous taxes was the “tithe” - the peasant gave a tenth of the harvest as payment for the use of the land. This tax lasted until the end of the 19th century.

In the states of the ancient world (Rome, Athens, Sparta), taxes, as a rule, were not levied, because there were no permanent departments. While providing services to the state, citizens spent their own funds. But fees and duties from traders in ports, markets, and at city gates existed even then.

In some countries, in order to save public funds, the right to levy taxes was put up for auction. The one who gave the highest price received it. Many cities were surrounded by walls so that no one could escape the tax collectors.

Taxes are payments that are obligatory paid to the state by legal entities and individuals. These payments are forced and free of charge.

Taxes perform 2 functions:

1. fiscal (consists in the formation of cash revenues of the state);
2. economic (consists of influencing social reproduction through taxes). Taxes in this function play a stimulating, restrictive and controlling role.

The functions of taxes are interrelated. The growth of tax revenues to the budget creates a material opportunity for the implementation of the economic role of the state. And the achieved acceleration of development and growth in production profitability allows the state to receive more funds.

The tax contains the required elements:

1. subject (payer);
2. object (income, property, goods);
3. source of tax payment (profit, income, dividend);
4. unit of measurement of the taxable object;
5. the value of the tax rate (quota);
6. procedure and deadlines for tax payment;
7. tax benefits.

There are 3 ways to collect taxes:

1. Cadastral (cadastres are used, i.e. registers containing a classification of typical objects according to their external characteristics). Applies to land, buildings, deposits.
2. At source (collected before the taxpayer receives income).
3. By declaration (filing tax returns).

There are 2 types of taxes:

A) direct (levied directly on income and property);

B) indirect (set in the form of surcharges to the price or tariff). VAT, excise taxes.

Based on their impact, taxes are divided into:

Progressive (tax increases faster than income increases);

Regressive (a higher percentage is charged on low incomes and a lower percentage on high incomes);

Proportional.

2. Laffer curve

There are 3 known ways to increase tax revenues to the budget:

1. expanding the circle of taxpayers;
2. increasing the number of objects subject to indirect taxes;
3. increasing tax rates.

In foreign countries, such an indicator of the level of taxation as “elasticity of the tax system” is used. According to him, tax rates should be so high as to prevent inflation, but at the same time so low as to ensure the development of production.

It is difficult to mathematically accurately determine the optimal tax rate, but there are 3 signs by which you can judge whether the critical tax point has been exceeded:

A) if, with the next increase in the tax rate, budget revenues grow disproportionately slowly or decrease;

B) if the rate of economic growth decreases, investments decrease, and the situation of the population worsens;

C) if the “shadow” economy grows - hidden and obvious tax evasion.

All this indicates the negative impact of taxes on the economy.

Studying the relationship between the tax rate and tax revenues to the budget, American economist Arthur Laffer showed that raising taxes can lead to a decrease in budget revenues.

Topic 8. INSURANCE

All participants in the insurance market can be roughly represented by the following groups:

Buyers	Intermediaries	Sellers	State
Policyholders	Insurance agents and insurance brokers	Insurers	Supervisory authorities
Persons who need or are required by law to insure their life, property or liability. These are those whose financial resources are “withdrawn” by the insurer and transferred to other segments of the financial market	Persons who bring supply and demand together. Insurance agents act on behalf of the insurer, and insurance brokers act on their own behalf, but both act on behalf of the insurer.	Duly licensed subjects of the insurance market are, in the overwhelming majority of cases, legal entities (including the state). They are the ones who accumulate the funds of policyholders and place these funds into reliable and liquid assets	We are talking about those cases when the state does not participate in insurance relations as a representative of one of the three previously listed groups. This refers to the participation of the state in regulating the insurance market, which is carried out in various ways (they will be discussed below)

Essential features of insurance:

1. When insuring, monetary redistribution relations arise due to the presence of the probability of sudden, unforeseen and irresistible events, i.e. insured events entailing the possibility of causing material or other damage.
2. When insuring, the damage caused is distributed among the insurance participants - the policyholders, which is always closed in nature. Those. conditions have been created for compensation of damage through the joint distribution of losses of some farms among all insured. Insurance becomes the most effective method of compensation when it involves millions of policyholders and insureds. This ensures the concentration of funds in a single fund – the insurance fund.
3. Insurance provides for the redistribution of damage both between territorial units and over time.

Insurance can be divided into 5 industries:

property, social, personal, liability insurance, business risk insurance.

Insurers are legal entities and capable individuals who have entered into insurance contracts with insurers or are insured by force of law.

Policyholders have the right to enter into agreements with insurers on insurance of third parties in favor of the latter (insured persons).

Insurers are legal entities of any organizational and legal form created to carry out insurance activities (insurance organizations and mutual insurance societies) and who have received a license to carry out insurance activities on the territory of the Russian Federation.

Legislative acts of the Russian Federation may establish restrictions on the creation of insurance organizations by foreign legal entities and foreign citizens on the territory of the Russian Federation.

The subject of direct activities of insurers cannot be production, trade, intermediary and banking activities.

Insurers may carry out insurance activities through insurance agents and insurance brokers.

Insurance agents are individuals or legal entities acting on behalf of the insurer and on his behalf in accordance with the powers granted.

Insurance brokers are legal entities or individuals registered in the prescribed manner as entrepreneurs, carrying out insurance intermediary activities on their own behalf on the basis of instructions from the policyholder or insurer.

An insurance risk is an expected event against which insurance is provided.

An event considered as an insurance risk must have signs of probability and randomness of its occurrence.

An insured event is an event that has occurred, provided for by an insurance contract or by law, upon the occurrence of which the insurer becomes obligated to make an insurance payment to the policyholder, the insured person, the beneficiary or other third parties.

In case of an insured event involving property, the insurance payment is made in the form of insurance compensation, in case of an insured event involving the person of the policyholder or a third party - in the form of insurance coverage.

The insurance amount is the amount of money determined by the insurance contract or established by law, on the basis of which the amounts of the insurance premium and insurance payment are established, unless otherwise provided by the contract or legislative acts of the Russian Federation.

Sum insured is the amount of money for which property, life, and health are actually insured.

When insuring property, the insured amount cannot exceed its actual value at the time of concluding the contract (insurance value). The parties cannot dispute the insurable value of the property determined in the insurance contract, except in cases where the insurer proves that it was deliberately misled by the insured.

If the insured amount determined by the insurance contract exceeds the insured value of the property, it is invalid by force of law in that part of the insured amount that exceeds the actual value of the property at the time of concluding the contract.

Insurance compensation cannot exceed the amount of direct damage to the insured property of the policyholder or a third party in the event of an insured event, unless the insurance contract provides for the payment of insurance compensation in a certain amount.

In the event that the insured amount is lower than the insured value of the property, the amount of insurance compensation is reduced in proportion to the ratio of the insured amount to the insured value of the property, unless otherwise provided by the terms of the insurance contract.

In the event that the policyholder has entered into property insurance contracts with several insurers for an amount exceeding the total insured value of the property (double insurance), then the insurance compensation received by him from all insurers for the insurance of this property cannot exceed its insured value. In this case, each of the insurers pays insurance compensation in an amount proportional to the ratio of the insured amount under the contract concluded by it to the total amount for all insurance contracts for the specified property concluded by this policyholder.

The terms of the insurance contract may provide for the replacement of the insurance payment with compensation for damage in kind within the limits of the amount of insurance compensation.

In a personal insurance contract, the insured amount is established by the policyholder by agreement with the insurer.

Insurance coverage is paid to the insured or a third party regardless of the amounts due to them under other insurance contracts, as well as under social insurance, social security and in compensation for harm. At the same time, insurance coverage for personal insurance due to the beneficiary in the event of the death of the policyholder is not included in the estate.

The insurance premium is the payment for insurance that the policyholder is obliged to pay to the insurer in accordance with the insurance contract or law. In international insurance it is called an insurance premium.

The insurance tariff is the rate of insurance premium per unit of sum insured or object of insurance.

Insurance coverage is the ratio of the insured amount to the value of the insured property. Max. insurance coverage – 100%.

Insurance rates for compulsory types of insurance are established or regulated in accordance with the laws on compulsory insurance.

Insurance rates for voluntary types of personal insurance, property insurance and liability insurance can be calculated by insurers independently. The specific amount of the insurance rate is determined in the insurance contract by agreement of the parties.

The insurance object can be insured under one contract jointly by several insurers (co-insurance). At the same time, the contract must contain conditions defining the rights and obligations of each insurer.

Reinsurance is insurance by one insurer (reinsurer) under the conditions specified in the contract for the risk of fulfillment of all or part of its obligations to the insured by another insurer (reinsurer).

The insurer who has entered into a reinsurance agreement with the reinsurer remains liable to the policyholder in full in accordance with the insurance agreement.

Insurance field – the maximum number of objects that can be insured.

The insurance portfolio is the actual number of insured persons, objects or existing insurance contracts in a given territory.

An insured event is an event that actually occurred, in connection with the negative or other specified consequences of which an insurance indemnity or an insured amount may be paid.

Insurers may form unions, associations and other associations to coordinate their activities, protect the interests of their members and implement joint programs, if their creation does not contradict the requirements of the law. These associations do not have the right to directly engage in insurance activities.

Insurance loss is the cost of completely lost or the degree of depreciation of partially damaged property according to the insurance assessment.

The minimum amount of paid-up authorized capital, formed from funds, on the day a legal entity submits documents to obtain a license to carry out insurance activities must be at least 25 thousand minimum wages - for types of insurance other than life insurance, at least 35 thousand minimum wages labor - when carrying out life insurance and other types of insurance, at least 50 thousand minimum wages - when carrying out exclusively reinsurance.

To ensure the fulfillment of accepted insurance obligations, insurers form from the received insurance premiums the insurance reserves necessary for upcoming insurance payments for personal insurance, property insurance and liability insurance.

In a similar manner, insurers have the right to create reserves to finance measures to prevent accidents, loss or damage to insured property.

Insurers have the right to invest or otherwise place insurance reserves and other funds, as well as issue loans to policyholders who have entered into personal insurance contracts, within the limits of the insured amounts under these contracts.

To ensure their solvency, insurers are required to comply with the regulatory relationships between assets and insurance liabilities assumed by them. The methodology for calculating these ratios and their standard amounts are established by the federal executive body for supervision of insurance activities.

Thus, the financial stability of insurers is ensured by:

payment of the authorized capital;

availability of insurance reserves;

reinsurance system;

establishing the obligation to comply with various regulations and guarantees.

Authorized capital of an insurance company	Availability of insurance reserves and funds	Reinsurance system	Standards and guarantees
The size of the authorized capital of a legal entity applying for a license to carry out insurance activities must be at least __________ ECU. By the time the license is received, the entire capital must be fully paid	To ensure the fulfillment of accepted insurance obligations, insurers form from the received insurance premiums the insurance reserves necessary for upcoming insurance payments for personal insurance, property insurance and liability insurance. Insurers also create reserves to finance measures to prevent accidents, loss or damage to insured property From the income remaining after taxes and at the disposal of insurers, they can form the funds necessary to ensure their activities	Reinsurance is insurance by the insurer (in this case he acts as the policyholder) of part of the risks from another insurance company. In this case, the original insurer remains fully responsible to the policyholder for the payment of insurance compensation. Through reinsurance, risks that are “unaffordable” for one insurer are distributed among several insurance companies, thereby reducing the risk for each individual insurer. Of course, this is not done for free, and the insurer pays the reinsurer a certain premium	To ensure their solvency, insurers are required to comply with the regulatory relationships between assets and insurance liabilities assumed by them. Insurers who have accepted obligations in volumes exceeding the possibility of their fulfillment at the expense of their own funds and insurance reserves are obliged to insure the risk of fulfillment of the corresponding obligations with reinsurers. The placement of insurance reserves must be carried out by insurers on the terms of diversification, repayment, profitability and liquidity

Vasilyeva Finance and credit course of lectures for specialty: 080502. Finance and credit: course of lectures [for specialty 080502. Designed for students of the specialty Economics and enterprise management by industry for a wide range of specialists in financial and banking systems, managers and specialists in financial services of enterprises, as well as all interested in these problems. Mastering modern knowledge, including in such disciplines as finance and credit, opens up prospects for...

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