State and municipal finances form the basis of the economy of any country. They are defined as a complex of monetary relations arising in the real circulation of funds between the relevant authorities and other entities. Let us further consider how state regulation of finance is implemented. 
general information
Public finance management allows the use of centralized funds to repay the country's internal and external spending obligations. The presence of this complex contributes to the systematic expansion of all sectors of the economy.
State and municipal finances, among other things, ensure the sufficiency and stability of social guarantees, the stability of money circulation, as well as the solvency of the country as an independent borrower. Inside this complex, there is a huge variety of types of budgetary relations, consisting of various links. These interactions are constantly complicated by the expansion of services, globalization money market increasing the stabilizing role of power in the economic field.
Public Finance Structure
This complex is today considered one of the most dynamic sectors. The public finance system includes federal, regional and local budgets. Within the framework of this institute, many issues are being addressed. One of the most pressing tasks is the search for optimal methods and directions in which public finances can be used. The country's economy only then reaches a fundamentally new, more advanced level, when competent planning of the distribution of the existing monetary fund is carried out. In this regard, the study of the patterns of the public sector and its expansion trends is of particular importance. This approach provides an objective look at the formation of public finance.
Importance of learning
The study of the patterns by which the functions of public finance are implemented allows us to fully master the necessary culture of thinking in the field of budget relations. Along with this, the availability of knowledge makes it possible to qualitatively analyze socially significant processes and problems existing in the country, with a high degree of probability to predict possible and priority areas for the use of funds.
The study of patterns allows you to clearly state the goals of public finance and find the most optimal ways to achieve them. For each citizen acting as a recipient of budget funds, such knowledge will make it possible to more clearly realize their own responsibilities and rights, to determine the degree of responsibility for each budget level. This is especially important in the issue of the ability to use the basic forms of state support provided by law. 
Exposure tools
The development of public finances, their stability are ensured through the use of certain coordinating methods. In particular, the distribution and redistribution of funds between existing budget units is carried out. Various forms of public finance are formed as a result of the interaction of various institutions of government and citizens. Impact on cash is carried out indirectly.For example, the state influences business through the establishment of tax policies, market coordination, the formation of an amortization fund, state support for enterprises through subsidies, and so on. Thus, the public finance system is not directly influenced by the authorities. The government acts through the monetary fund on the economic and social sectors through the planning and implementation of budgetary policies.
Dependence of the complex on other sectors
The sphere of public finance is directly influenced by the transformations taking place in various parts of the money turnover. First of all, this concerns the interconnections between the means of the macro and micro levels. The first include municipal and state budget funds. They are based on the monetary potential of enterprises operating in the country. The funds are used to implement common tasks to improve the business sector. In this regard, the optimal organization of public finances is necessary. The method by which this issue is resolved reflects the qualitative certainty of the means.
Basic principles
They act as an important methodological factor in the coordination and use of municipal and state finances. Existing principles make it possible to determine the direction of influence of funds on the formation of all economic sectors, to establish criteria for activities within them. Two main principles should be distinguished, on the basis of which the functions of state finance are realized:
- Interaction with information flows. These or other government decisions are made in accordance with the complex of data received. The incoming information on the state of the economic and social sector is being processed and analyzed. Evaluation of information is important not only at the time of decision-making. The analysis is important in the subsequent control over the course of its implementation. The necessary data comes in the form of statistical and operational reporting, agreements and contracts, accounting documentation and so on.
- Clear focus. Funds from budget funds relate to certain socio-political interests of certain categories of citizens. Moreover, in each interaction, finances are focused on solving territorial and federal tasks.
The essence of administration
In order for the state finances of the Russian Federation to be in a stable state, a set of certain incentives and sanctions is used that provide a quick and effective solution to the tasks set. Administration of monetary resources is carried out through the adoption of budget legislation, the approval of items of expenditure and income of federal and regional funds, the preparation of a report on their implementation, the abolition or introduction of certain fees and taxes, the establishment of a limit on public debt, and so on.
The object is public finance or a complex of monetary interactions. The subjects of administration are authorized services, institutes, departments, inspections and others. The essence of management is reflected in the financial policy of the state. It represents a complex of methodological principles, practical methods of use. Administration provides monetary independence and sustainability. They, in turn, are manifested in the stability of the ruble, a decrease in internal and external debts, and a combination of public and state interests.
Main elements
Public finance is coordinated through the use of several elements. In particular, they include:
- Planning. During this process, an assessment is made of the state of the monetary fund and the areas of effective allocation of funds.
- Operational management.It includes a set of measures that are developed in accordance with the real situation. Operational management allows you to maximize the effect while minimizing costs. This is achieved through the redistribution of existing financial resources.
- Control. It is carried out at all stages and in all areas in which public finances are used. Monitoring includes a comparison of actual and planned results.
Administrators
At the macroeconomic level, the directions in which public finances are distributed are controlled by various government institutions. They are authorized at the federal level to conduct relevant activities. Such institutions should include: directly the bodies of state power and territorial self-government, as well as other participants in the budget turnover, whose competence includes the solution of these problems.
Forecasting
This process involves the study of the state of public finances in the reporting period, the establishment of the mobilization of budget funds, directions of use and sources, justification of indicators of the developed plans. Prediction is widely used at all levels, acting as a tool for scientific foresight, obtaining additional information, and variant analysis.
In this regard, it contributes to the development of a financial concept for the development of the state or a specific business entity. Forecasts allow authorized bodies to identify several possible options for improving the complex and provide methods for implementing budgetary policies. In financial forecasting, economic models are traditionally used. They can, with a certain degree of probability, illustrate the dynamics of indicators, taking into account various factors that can affect cash flow.
Planning
It is carried out on the basis of indicators obtained in the forecasting process. Planning is necessary for the scientific justification of the movement of monetary resources and changes in the corresponding budgetary relations in a certain (predetermined) period. At this stage, a balanced and proportional development and activity of economic entities is achieved. In the course of planning, an analysis of the monetary condition is carried out, the possibilities of increasing the volume of budget resources, as well as the directions of their most effective implementation, are determined. As the information basis at this stage are the data present in the operational, statistical and accounting reporting. Information in these documents should be reflected in full and be reliable.
Optimization
The operational management phase provides for the development of a set of measures aimed at achieving the highest possible financial results at the lowest possible cost. At this stage, the analysis of the current situation in the public sector and the corresponding reallocation of funds are taken into account.
In the course of the operational management of public finances, the stability of the country's economy and the entities involved in it is thus achieved. At this stage, in particular, the tasks of providing monetary support to the population are being addressed. In addition, the elimination and prevention of crisis phenomena in the course of economic activity is carried out and the consequences are minimized, maneuvering is carried out by means for the implementation of budget indicators at all levels of the system within the framework of existing conditions.
Strategic coordination
This is one way to manage your finances. Strategic coordination is the responsibility of the highest executive and legislative bodies. This process involves:
- The establishment of sources and the amount of budgetary funds through which reproduction is ensured in such proportions as were laid in the main areas of financial policy implementation.
- Determination of the optimal ratio between monetary resources between institutions of power operating at the federal and local levels, and business entities.
- Identification of the most productive areas for using budget funds and reserves for their growth.
Scientific approach
In the process of operational and strategic coordination of finances, it is necessary to observe consistency in making administrative decisions. It is based on the scientific approach of substantiating the methods of planning and forecasting, the development of control methods and techniques that correspond to existing market conditions for economic activity.
Such a strategy allows creating new regulatory mechanisms, revealing the futility of some areas and the advantages of others, and developing additional prerequisites for improving budget tools.
The scientific basis for the development and implementation of specific measures is especially important in the framework of a market economy, where the activities of business entities are under the influence of fierce competition, and its functioning is characterized by spontaneity. Such a strategy helps to ensure the well-being of the population, stable support of organizations and economic sectors. It allows you to prevent or mitigate the effects of crisis phenomena. 
Legal basis
The successful implementation of financial policies, the effective implementation of the budget and administrative mechanism, largely depend on the regulatory design of budget relations. Due to the fact that the country switched to market economic conditions, the role of law in the field of monetary interactions has increased significantly.
The creation of federal relations between government bodies and a radical change in the administrative apparatus also had a significant impact on public finances. This contributes to the emergence of prerequisites for the development of new budget legislation and the adoption of modern legal standards. Such events provide the most effective financial management of business entities and government agencies, protect the interests of participants in money circulation and strict discipline.
Features of legal control
In the application of the rules in financial management, their imperative is noted. This illustrates practice authorities to coordinate budgetary relations. Such activity of the state deprives business entities of the opportunity to acquire financial rights at will and discretion, to determine their content and independent implementation.
Budget legislation is closely related to the Administrative and Civil Codes. In this regard, the opinion that financial law regulates all monetary relations is incorrect. Budget legislation acts as a set of legal norms and regulations aimed at controlling the relations that appear during the formation, distribution and use of funds of the country's monetary fund.
Classification of Standards
Financial legal acts used in the coordination of the budget sphere are diverse. They are classified by:
- Legal force. Acts are divided into laws and regulations.
- Level of power. Norms may be adopted by state or territorial bodies.
- Degrees of control over budget areas and links. On this basis, acts are divided into regulatory relations in all or individual areas. The former include, for example, the Constitution, Tax, Budget Codes.
Specifics of legislation
Fundamentals of financial management are laid down in the Constitution. She defines federated device Accordingly, three levels are distinguished in the tax and budget areas. In addition, the Constitution establishes the sphere of influence of the President, federal representative and executive bodies, as well as local self-government in the financial process.
The norms of budget legislation coordinate the relations arising in the process of money circulation. They include, among other things, the formation of income and expenses of existing public funds. The provisions of the law also coordinate intergovernmental relations, the application of penalties for violation of prescriptions, as well as the direct implementation of money circulation within the country. Tax rules govern interactions that arise in the process of establishing and levying fees and taxes. Legislation also includes coordination of relations in the field of control and responsibility for non-compliance with budgetary discipline.
Laws and regulations
The system of state and regional finances is based on decisions and standards adopted by representative bodies authorized to coordinate the public sector in Russia or in a separate entity of the country. The Presidential Decrees, government decrees, departmental acts — letters, instructions, explanations, orders of federal agencies and services, regional executive authorities, as well as local authorities are of particular importance in controlling cash flow.
The latter play a significant role in the issue of control over the circulation of municipal and state finances. They allow on a legal basis to coordinate budget relations in different economic sectors, between recipients and managers of funds.
It should be noted that legal regulation extends to absolutely all elements of the process of administering the financial industry - from planning and forecasting the sources of budget funds to control the implementation of adopted expenditure and revenue items and the procedure for overseeing the activities of executive bodies. The quality of existing laws and regulations determines the effectiveness of the coordinating activity of the authorities as a whole. Due to the undoubted importance of this issue, the Government pays special attention to the tasks of legal regulation of the financial sector.
