In market conditions, the state of the financial system reflects the social, economic and political aspects of the life of the state. Acting as a multi-level structure, it covers the country's resources in the form of monetary funds, different in their purpose. Within this system, centralized and decentralized finance are distinguished. Further we consider these categories in more detail. 
General information
Monetary funds may be owned by the state, represented by the executive and legislative bodies, or citizens and legal entities. In the course of activity, various means are used. These include, in particular, cash (treasury bills, banknotes), non-cash money (in bank accounts, credit institutions, letters of credit and certificates), securities (stocks, options, bills, bonds).
Fund transfer
Being in constant motion, finances form the corresponding flows, which require a clear organization. The directions of the movement of money connect the elements of the whole system into one. Depending on the complexity, there are many, one and two-way flows. In the latter, money flows in one direction. For example, funds transferred from the federal budget are used to finance the expenses of the Pension Fund. In a two-way flow, money moves between two elements or a specific link and a sector that does not include it, directly and back. For example, taxes from companies are transferred to the budget, but subject to a number of conditions, the latter can receive funds back to form of loans or subsidies. Multilateral flows cover simultaneously different parts of financial resources and go in different directions. In the household, the budget is formed from income from various sources. So, the head of the family or another member receives a salary at the enterprise, from the budget come transfer payments. Along with this, entities deduct taxes to extrabudgetary funds and directly to the budget. 
Centralized and decentralized finance
With the collapse of the USSR, the country's monetary system underwent a number of significant changes. Until 1991, the structure included finance of national importance, non-production and production. In the USSR state budget, the union monetary system was directly integrated, as well as state republican flows and social insurance funds. The first element accounted for 50-52% of the total cash resources. 35% of these funds were at the disposal of the republics, and 15% were local budgets. Since January 1, 2000, the Industry Code has been in force in the Russian Federation. In accordance with it, funds owned by the state are combined into a budget system - centralized finance. This institution is an essential element of the entire monetary structure. However, another key element is singled out in the system - decentralized finance and enterprise finance. They underlie the monetary system, since it is in the field of material production that the bulk of the country's funds are concentrated.
Public funds
Today, Russia has a three-tier budget system. Centralized funds include budgets:
- Federal.
- Subjects of the Russian Federation (territories, republics, regions, AO, cities of the Fed. Value).
- Municipalities.
Budgets represent the financial basis of state and local government administration. Each of the elements of the system operates autonomously.This means that the lower budget with its expenses and income is not included in the higher. Within these links, special funds can be created for the intended purpose or for deductions from certain income and other income. Planning of budgetary resources is carried out through the preparation of a consolidated budget - a consolidated plan. It combines the financial resources of all levels of the system. At the expense of the latter, structural reform of the economy, the development of technology and science are ensured, production efficiency is increased, and reforms are being carried out in the housing and communal services and the military industry. 
Composition of decentralized finance
This institute combines various means. In particular, decentralized finance includes cash flows of non-profit and commercial companies, households. These resources are involved in the formation of monetary funds in the country. The state of funds included in the sphere of decentralized finance has an impact on the solvency of the state and, therefore, the implementation of all planned social and economic programs.
Sources of formation
Decentralized finance is formed by the distribution of the value of GDP and other reserves. The structure of decentralized finance includes:
1. Own funds and equivalent to them. The first category includes company profits and other accumulations. Equal means shall be considered the minimum debt for:
- salaries to employees;
- advances to customers for the performance of a certain type of work;
- tax and non-tax deductions.
2. Borrowed funds. These include:
- budget loans;
- commercial loans;
- bank loans.
3. Attracted flows (funds of other business entities) - external investments and share contributions.
4. Resources that are received in the order of redistribution in the insurance and financial markets from the budget by higher organizations.
Principles of the Institute
In market conditions, monetary relations between business entities are based on a number of fundamental provisions. Subject to these principles, the use of decentralized finance, the functioning of the entire system become as efficient as possible. They ensure the stability of the economy and the social sector. At the same time, income becomes the main source of social and industrial development of work collectives.
Distribution of funds
Of great importance for the stable functioning of the institute is the order in which decentralized finance is managed. It involves the development of certain programs, identifying the most promising areas of distribution of funds. Resources can be used for:
- Repayment of borrowed funds, interest rate payments.
- Fulfillment of financial obligations established by law.
- Coverage of expenses related to the expansion of production (increase in working capital and fixed capital, investments related to technological re-equipment, modernization, reconstruction).
Subjects independence
In modern conditions, domestic companies operating on the market have the right to independently direct decentralized finances. This relative independence allows firms to:
- Rationally and most profitably distribute profits from the sale of their products.
- Dispose of income as you wish.
- Form social and production funds.
- To seek the funds necessary for them to implement investment programs, using, among other things, external resources (bank loans, certificates of deposit, bonds, issues and other instruments).
The decentralized finances of organizations provide the necessary means for the manufacturing sector of the economy. The main goal of commercial firms is profit.Only with its continuous receipt can obligatory and voluntary payments, investments, salaries and other necessary measures be carried out to increase the welfare of society. 
Nonprofit Structures
This category includes various voluntary foundations, unions, religious and charitable organizations. When they are formed, certain goals are set, which do not include making a profit. Their funds are formed through donations and voluntary contributions, budget revenues, funds of institutions, etc.
Household
Decentralized finances are formed, among other things, at the expense of personal funds of the population. Monetary resources of households occupy a special place in the institution in question. These flows are of paramount importance when creating ND and GDP. Decentralized finance is also involved in the process of regulating effective demand in the country. A certain share of the generated GDP in the form of services and goods passes through family budgets. Higher will population incomes therefore, correspondingly, there is a higher demand for produced material assets. This, in turn, ensures a stable economic condition of the producers themselves.
Balance sheet
The entire financial system and its resources are reflected in the revenue part of the statements. However, it should be noted that the consolidated balance sheet covers far from all of the country's monetary reserves. Fully included in it are only centralized finances - funds from budgets and extra-budgetary funds. As for the rest of the resources, they are represented only by depreciation and profit. The consolidated balance sheet does not include income from insurance payments, borrowed funds, savings and household incomes, attracted investments, deductions from penalties. According to indicative data, centralized funds account for about 60%, while decentralized funds account for about 40% of all financial resources. But if we take into account all household incomes and take into account more accurate values of company funds, then the situation may change in favor of the latter. 
Conclusion
As part of financial activities, a variety of activities are carried out. These include planning, investing, insurance, taxation, auditing, inspection and so on. The formation and distribution of centralized funds is carried out by the state. For these funds, normative acts rigidly determine the sources and directions of movement. As for decentralized finance, such control has not been established with respect to them. Business entities have a certain independence, independence in solving these issues. Along with this, they are also liable to the state for compliance in their financial activities with the requirements established by law.
