Examen Finante Publice - Finante Publice

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Economic content and concept of finance. Finances=entire heritage of the state. Finance=total income of the state. The concept of finance is closely related to the concept of the state. It is linked to the use of money and all other forms of value in the process of national distribution. There are 2 theoritical approaches:classical and modern one. Classical concepts reflect the liberal doctrine and states that business and economy should be conducted according to the principle of laissez-faire, in order to keep the balance between revenue and expenditure of the state, and to maintain normal operations of public institutions with necessary resources. At the stage of policeman states, with the doctrine of liberalism, the concept of finance has a highly legal and juridicial character. And after a great depressionof 1933 the policeman state is replaced by the welfare state- interventionist concept. Economic concept –modern approach of public finance. We distinguish 2 types of finances: Public finance(administration units, public institutions) &Private finance(banks, enterprises, insurance companies). Economic content The activity of a company is determined by a complex of actions and relations that are promoted by the participants of this activity. Financial relations=relations of allocating money to a global roduct or its components(money transfers). There are 3 categories of financial relations: 1)relations that express a transfer of money resources without title granting(taxes and charges); 2)relations that express a loan of monetary resources for a determined period of time(credit relations);3) relations that express a mandatory or voluntary transfer of money resources(ensurance rel). Public financial relations: a)classical(formation of state budget); b)special(credit&ensurance relations) Private financial rel.:a)at the level ofeconomic agents; b)at the levelof population. Finance=the economic relations expressed in monetary form connected with the creation, use and distribution of centralized cash funds in order to meet specific functions and objectives. Functions of finance1)distribution f.:a)creation or formation of funds from duties, taxes, social security contributions, insurance premium, penalties, rent dividends, donations, loans, income of public enterprises; b)allocation of financial funds among beneficiaries for the following destination:education, culture, health care, social insurance and protection, households, national defense, public order, economic activities, public debt. 2)contro f. derives from the fact that the conducted financial resources fund witch are at the state disposal belong to the entire population. This funct. Refers to the management of fund formation in the economy, their distribution. Financial control:-over production;-at the exchange phase;-consumption stage. In RM- Courts of audience. National Bank, Ministry of Finance.