What is financial policy? First of all, this is the sum of all actions aimed at using finances and relations related to the distribution of national wealth and income. In addition, this term refers to the implementation of activities designed to use these relations so that the state can fulfill its functions.
What is the content of financial policy?
• In order to ensure that the state’s activities are ensured in time, the concept of financial policy is first developed, tasks are set and its goals are determined.
• The second stage is the creation and continuous improvement of a competent financial mechanism.
• Adequate management of the monetary policy of the state, as well as other economic entities.
It should be borne in mind that financial policy is based on strategic principles that determine the use of finance in the future, providing for the solution of all the main tasks of the country. Along with this, the state determines the tactical goals of using finance. These events constitute a single complex, they are closely intertwined.
What are the tasks set by the state financial policy?
• Creating an enabling environment for the accumulation and use of the maximum amount of financial resources.
• Development of a scheme of rational, beneficial state use of financial resources.
• Use of financial mechanisms to stimulate diverse processes (for example, social or economic).
• Constant updating and improvement of the financial mechanism, ensuring its compliance with changing goals, strategies.
• Creation of an operational, adequate, convenient financial assets management system.
Financial policy is always closely intertwined with other parts of the economy: credit, monetary, price.
In order to take into account the results of financial policy and evaluate them, it is necessary to take into account how it meets the interests of citizens, social groups of society, whether it has achieved everything that was due to its goals.
Financial policy is impossible without a mechanism that ensures the activity of any state in the field of redistribution of finances. The financial mechanism is a special system developed by specialists and fixed by the state that unites all structures and types of financial relations. It includes the following components:
• forms of resources and methods for their creation,
• the legislative framework governing the movement of finance, the organization of the securities market, enterprise finance, and the budget system.
The financial mechanism is divided into directive and regulatory.
The first is created for financial relations with the direct participation of the state. This includes taxes and budget financing, financial planning, budget expenditures and its full organization. Often, a prescriptive mechanism can affect the securities market (corporate), other relations that are of no small importance for financial policy as a whole.
The regulatory mechanism works where the interests of the state are not directly affected, for example, in private enterprises. Here, the mechanism regulates only the general pattern of the use of financial resources.
What are the goals of financial policy?
• Political.
• Economic.
• Social
It should be remembered that financial policy as a unity of actions aimed at achieving goals can use its mechanisms and techniques to solve problems at different levels, from the world to the level of the household.
Financial policy can be classic, planning and regulatory, regulatory.