1.2 Structure of the financial system

At the present stage of public finance in other developed countries consists of four managers: the state budget, local finance, and special extra-budgetary funds and finances of state enterprises. The leading element of public finances appears the state budget. According to its material content - is the main central fund of funds of the state.

State budget - the main means of redistributing the national income. Through this link the financial system is distributed to 40% of national income. The state budget revenues are concentrated the largest and most important, politically and economically general state expenses. There are organic linking major financial institutions - taxes, home loans, expenses.

The main income of the state budget are the taxes of between 70 to 90% or more of its total revenue. For the state budget in countries with developed market economies, fixed principal taxes - income tax on individuals, corporate tax, excise duties, VAT and customs duties. From the state budget and made major costs: the military objectives, intervention in the economy, the content of the state apparatus, social spending, subsidies and loans to developing countries.

The state budget in a position closely related to other parts of the financial system. He performs a coordinating center, providing a market economy the help they need. This assistance is in the form of budget subsidies, loans, guarantees, ensures normal functioning of other parts of the financial system, the solution of their assigned tasks.

The next in importance is the financial element of the system of local finance. In modern conditions influenced the development of productive forces, scientific and technological progress is increasing the role and influence of local authorities. Is increasing the local economy, their relationship and dependence on big business, expand and become more complex functions of local authorities. All this reinforces the importance of local finances, increasing their role and share in the financial system. Local finance covers a wide group of minor taxes (mostly poimuschestvennyh), a system of local loans, special funds. Central to this link belongs to the local budgets, which are not part of the state budget and have a certain amount of autonomy. The structure of local finance is determined by the constitution and the relevant administrative division of the state.

In modern conditions is the link of the financial system is increasingly used for economic purposes, for the regulation of economic processes. For this purpose, a significant portion of local budgets is directed to the development of economic and social infrastructure.

Special financial link form special government funds, which have a certain autonomy, separate from the state budget and managed directly by the central, and in some cases - and local authorities. These include the social insurance funds, various trust funds and public and quasi-financial-credit institutions.

The initial objective of these funds was to finance the individual target actions. Subsequently, they get value reserve, to which the government resorted to in cases of financial hardship, that is, used to enhance maneuverability of the financial system. In contrast to the State budget funds are subject to much less control of the parliament, making them easier to use and increases the interest of governments in their growth. Independent financial link form the finances of state enterprises. Its appearance is associated with the development of the public sector in the economy of several countries of Western Europe (Britain, France, Italy, Germany, Austria) - a process that was most prevalent after the Second World War. Its main objective is to support the private economy through the preservation and development of important industries, which in its specificity have low profitability and thus unfavorable to business (rail, air transport, electricity, gas, coal, etc.). State-owned enterprises, thus, represent an attempt to resolve the contradiction between private business interests and national economic problems. At the same time, finances of state enterprises - a link of the financial system through which the state participates in the primary distribution of national income, accumulating in the hands of the revenue generated by these enterprises.

State-owned enterprises have assigned to them fixed and current assets, are self-estimates and carry out regulated by law relationship with the state budget. Depending on the type of business they have varying degrees of autonomy, operational and financial independence.

The second area of ​​financial systems of developed foreign countries are the finances of private enterprises, corporations and monopolies, which arise in the course of economic activity and provide production and profit. They materialize in the form of money capital, various cash funds of the enterprise.

Due to the fact that the activities of enterprises is based on the individual circuit of capital, these funds are separate funds, the decentralized nature. At the same time, the state has a direct financial relationship with private enterprise. They are expressed in the form of charging the state budget, the formation of sinking fund, to regulate credit relations, the provision of government subsidies.

Private enterprises constitute the bulk of material production, they account for major share of gross domestic product produced and national income. Therefore, the state uses different methods (including financial) to promote the activities of these enterprises, the growth of their savings, various cash funds related to the acceleration of scientific and technological progress, the creation of reserves, further training of employees. The state establishes a preferential tax treatment of profit, the system of accelerated depreciation, in some cases, provides low cost loans, provided other forms of financial support. In turn, private payments for its part in building the revenue base of the state budget and other state funds.

Local finances, or local government finances are an important part of the financial systems of developed foreign countries. The share of local finance a significant part of the financial resources of these countries: USA, Germany and Japan - 50-60% in the UK and France - 30%.

They represent a system of economic relations, through which local governments distribute, redistribute, and use national income in accordance with their assigned functions.

In recent decades, many countries are witnessing a regionalization of economic and social processes. Increasingly, the regulatory function of these processes are moving from central levels of government to the local. Therefore, the role of regional finance increases, but their scope is expanding. Local finances are actively involved in the regulation of the economy, stimulating economic growth, the realization of regional programs, the reproduction of labor power.

Through local government finance is actively pursuing a social policy.

Through the provision of local government funds for their budgets by municipal funding of public education, health, municipal services. At the same circle of funded activities is expanding. Due to the regional budgets are financed not only schools, but also universities, health agencies, activities for homeland security, law and order, environmental protection, etc.

In accordance with the constitution and laws of local authorities in managing their own household budget independently, ie responsible for the planning and execution of their budgets, but also exercise control over these processes.

Composition and structure of local finance. Functioning system of local finance are local budgets and special funds of local importance, finance companies owned by local governments. The main element of local finance - local budget, which includes the main revenue and expenditure of local authorities. In the U.S., these include the budgets of states, counties, municipalities, townships, France - regions, departments, districts, communes, and in Germany - Land, counties, cities and communities in the UK - counties, districts, and in Italy - the countries, provinces, communes, and in Japan - prefectures and municipalities.

Under present conditions increasingly local authorities are designed to provide a comprehensive development areas, a balanced development of the productive and nonproductive spheres. Greatly increases their coordination function in the economic and social development of regions. These factors make it necessary to further expand and strengthen the financial base of the regional government, a number of challenges associated with the improvement of methods of formation and use of financial resources of the regions.

Incomes of local budgets are formed by local taxes and fees, non-tax revenues, revenues from higher-level budgets and loans. Relationship between these sources depends on the functions assigned to local governments, from the potential opportunities of local taxes, as well as opportunities for higher authorities to provide financial assistance to the Territories. International experience shows that in more economically developed countries the share of revenues of regional budgets in the total resources of the state above. So, if she is in Portugal - 3% of GNP, in Norway - 15% in Sweden - 31%.

Taxes are a major source of revenue for local budgets.

In accordance with the tax laws of every country they are assigned to certain types of regional budgets. The rates on these taxes are established, usually by local authorities. The number of such taxes in different countries varies from 20 to 100, while their share in total revenues of local budgets - from 30 to 70%.

There are three main groups of local taxes. Local direct and indirect taxes that apply in almost all countries. Widespread direct local taxes are poimuschestvennye, fishing, and agrarian taxes on cars, and in some countries - for residents and their profession (France). The local indirect taxes include taxes on purchases, excise duties on petrol, tobacco, alcoholic beverages, the consumption of electricity and gas. In the UK, local indirect taxes, in essence, is absent.

The second group of local taxes can be called a tax that is levied as a supplement to national taxes or deductions from them (for example, in Italy - to the land-and agricultural taxes). These taxes are set at a certain percentage to the state, collected in local government. In particular, in Germany, 42.5% of the income tax revenue from individuals to the federal budget, 42.5% - in the budget of the earth and the corresponding 15% - in the local budget, the tax on corporate profits divided in proportion of 50 to 50% between federal and state budgets.

Other local taxes are a special group of local taxes. This is a tax on the spectacle of dogs engaged in trade, to own vehicles, the issuance of licenses for gambling business (Spain), etc. Typically, these taxes are great financial value to have incomes of local budgets.

A definite place in the formation of local budgets and non-tax revenues take. This includes income from property, managed by local authorities, from the rental or sale of land, forests, and profits from the operation of reservoirs, utilities, revenues from court fees, fines and various fees. In France, many communes established a tax on municipal public transport. Usually it is introduced in towns with a population of more than 30 thousand inhabitants. His pay all the industries in which the number of employees exceeds 9 laborers. Local authorities in consultation with the public may introduce other permanent or temporary taxes - paving roads and laying sidewalks, street cleaning, etc.