Concept State

Posted by marmara on June 16, 2014

In the formation and development of economic and social structure plays an important role government regulation, carried out within the framework adopted by each historical stage policy. One of the mechanisms enable the State to carry out economic and social policies, is the financial system of a society and its constituent – the state budget. It is through the state budget is directed impact on education and the use of centralized and decentralized funds of funds. Budget – is a form of education spending and fund of funds intended for financial support tasks and functions of the state and local governments. With the state budget, public authorities receive funding for the maintenance of the state apparatus, army and implementation of social activities, implementation of economic problems, ie, to perform state functions assigned to it.

State budget, being a major financial plan for the state, gives the authorities a real economic feasibility of power. The budget reflects the size of the required state financial resources and thereby determines the tax policy in the country. The budget records the specific areas of spending, redistribution of national income and gross domestic product, which allows it to act as an effective regulator of the economy. At the same time the budget is legally regarded as an economic category, which expresses certain economic relations. Budget – category have different relationships. Its origin and development associated with the birth and formation of the state. The state uses the budget as a key tool for ensuring both direct its activities, as well as an essential element of economic and social policy.

As an economic category budgetary relations are an integral part of financial relations, therefore, it is inherent in monetary form and the main function of finance. Budget for the following tasks: redistribution of GDP; state regulation and to stimulate the economy; financial support for public sector and the implementation of social policy; control of the generation and use of centralized funds of funds. Distribution function of the budget is manifested through the formation and use of centralized funds of funds over the levels of state and territorial authorities and management. In developed countries, through the budgets of different levels to reallocate up to 50% of GDP. With the budget the state regulates economic life, economic relations, directing the budget to support or development of industries and regions. By adjusting the way economic relations, the state is able to specifically enhance or inhibit the rate of production, accelerate or reduce the growth of capital and private savings, to change the structure of demand and consumption.

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