What is finance?

What is finance? Finance - a synonym for cash (cash and non-cash), as well as relations associated with their movement and usage. Finance is the union of all economic relations that arise in the process of the origin, distribution, redistribution and use of cash flows, both central funds and decentralized, which often act as public treasury. Thus, finance is an important link in the formation of government. In human terms, finance is, above all, money that has a certain value. Money can be exchanged for other money, goods or services. Financial management implies sustainable events, during which the redistribution and distribution of monetary assets among all participants in economic activity takes place. This also includes actions that increase the economic return from the use of monetary resources.

Public finances are represented by a special formation of a set of financial and economic relations and the distribution of cash streams, the use of which helps the state to implement a number of strategically important projects.

Government loans also include government credits, a taxation system, tax revenues to the treasury and various funds, and a budget regulation system. Finance, in addition to its secondary functions, possess two main - distributive and controlling. The distribution function of finance allows you to form the state treasury of the country due to the redistribution of national wealth. The distribution and redistribution of state accumulation is carried out through the budget sphere. In addition, the financial and insurance markets are involved in the redistribution. In addition, one of the tools for the redistribution of national wealth of the state can be past savings, profits from foreign economic activity, loans and borrowings.

Centralized finance is a system that forms and expends financial flows for the permanent work of all government bodies. Finance centralized belong to the budget system. Centralized finance generates public value finances, which are managed by various government agencies. The share of local money in the financial system reaches 70%, which depends on the government. So, the more developed a country's economy, the greater the share of local cash savings and related relations in it, which stimulates the work of local authorities. Today, there is a steady increase in local finances, which speaks eloquently of the importance of local governments. But economic freedom is still limited by the local authorities, who are forced to constantly coordinate their actions with the supreme government, which creates a certain bureaucratic delay.