Smagulova D.S., Akhtamberdiyeva M.E.
Al-Farabi Kazakh National University,

LL.M., Senior lecturer Department of Customs, financial and environmental law,  the Faculty of Law, Republic of Kazakhstan, Almaty,

E-mail: smgdana@mail.ru

The financial system of the state

    The financial system - a form of organization of monetary relations between all the actors of the reproduction process on the distribution and redistribution of the gross national product.

     In a legal sense, it means the totality of the financial system of the state financial institution (financial department and its affiliated companies, tax authorities, state-owned banks, state-owned insurance companies).

     The financial system is an integration type system is characterized by close ties of its constituent elements (subsystems) and the fact that none of its subsystems can not exist independently: finances, on the one hand, express the part of the relations of production, and so are the element of the system of relations with the other - represent a system consisting of interconnected elements that have their functional properties. The finances can be called as a functional subsystems such as tax, budget, financial plans (forecasts), budget financing, financial performance, and others.

     Principles of the organization of the financial system can be defined as:

     1) finance of any country are organized, they are divided into certain funds of funds, indirect financial and economic institutions.

     2) Institute, dedicated to the organization of the monetary system in the Country affects all existing in the state of monetary relations (financial. Commodity-money, the relationship of wages).

     3) in the field of finance management is always an organizational nature, because its own finances is no organizational efforts appear not to function can not.

     4) the financial plan of growth is given in the budget planning, banking planning, financial planning gos.predpriyaty and organizations.

     5) types of financial control receives budget, banking, institutional control.

     The financial system of the state is a collection of various financial links and financial relations. In economic literature, the financial system is studied in three aspects:

     1. The set of financial relationships.

     2. The collection of funds of funds.

     3. The financial management unit.

     Financial relations are a set of economic relations arising between the state and enterprises. organizations, industries, and individuals in connection with the movement of funds. [1]

     For example:

- The financial relations between the state and now - this fee payments to the budget (tax income), as well as grants and loans.

- The financial relations between the enterprises - is equity participation in joint ventures; mutual credit: purchase and sale of securities.

- The financial relations between the company and its employees is the movement of material labor fund (salary, dividends, bonuses).

- The financial relations between the company and the credit system carried out at a payment of interest for the loans.

- The financial relations between the state and the public - is the payment of income tax; leaving funds to personal accounts, obtaining loans.

     The financial system is represented by centralized financial with decentralized finance.

     Centralised (national) Finance:

budget (national and local);

special extra-budgetary funds (Pension Fund, Social Insurance Fund, employment promotion fund, road fund, investment, etc.).

     Decentralized Finance:

- Finances of enterprises and organizations of the national economy, which are divided into finance sphere of material production and finance non-productive sphere;

- Finance population (income tax, obtaining tangible and intangible benefits, paid services, wages except for goods in cooperatives and other markets).

     The totality of the various spheres of financial relationships that exist in the country referred to the financial system. The value of the country's financial system can not be overestimated, t. To. It includes all the financial relations in the country, in addition, the collection of funds of funds and financial management personnel are also part of it.

     The complexity and multifactor financial system determine its units, which include the finance of managing subjects, personal finance and public finance. Each link in the financial system performs its function, but together they form a single country's financial system [2].

By definition, the financial system - a set of financial relationships. By the nature of its financial ratios are raspredelitelnymi, the cost of distribution is carried out primarily on the subjects. Subjects form of money earmarked funds, depending on the role they play in social production: are the direct participants in it, whether organized insurance coverage or carry out state regulation. It is the role of the subject in social production acts as a first objective criterion for classification of financial relations. According to him the major sphere can be isolated in a common set of financial relations: finance companies, institutions and parties, should strive; insurance; public finance.

Within each of these areas are allocated units, and the group of financial relations is dependent on the nature of the subject, has a decisive influence on the composition and purpose of funds targeted. This criterion allows to distinguish in the field of finance enterprises (institutions, organizations) such links as finance companies, operating on a commercial basis: Finance institutions and organizations engaged in non-commercial activities; finance associations. In the insurance sector, where the nature of the activity of the subject determines the specificity of the object of insurance, as the units are: social security, property and personal insurance, liability insurance, insurance of business risks. In the public finance field - accordingly, the state budget, off-budget funds, the state credit.

     Fields and financial relations units interconnected to form together a single financial system.

     Various units of the financial system serve different types of financial distribution: on-farm - the finance companies. interlining - financial enterprises, complexes, associations, intersectoral and interterritorial - state budget, extra-budgetary funds.

     Each link in the financial system, in turn, is divided into subunits in accordance with the internal structure contained therein financial relationships. So, as part of finance companies that operate on a commercial basis, depending on the direction of the industry, can be fleshed out finance industrial, agricultural, trade, transport companies, etc., and depending on the form of ownership From - finance state-owned enterprises, cooperatives, joint stock , private and others. Industry and economic characteristics of companies that operate on a commercial basis, okazyvayutcsuschestvennoe impact on the organization of financial relations, the composition purpose of funds generated by the order of their formation and use.

     The financial system is characterized not only by the composition of its constituent parts, but also the flow of financial resources (cash flow), the main financial relations binding agents. Such agents should be considered as the state budget, enterprises and business organizations, households.

     Finances public organizations manage financial departments or groups of these organizations.

     The unit finance departments of ministries and other higher bodies carrying out work on the consolidated financial pro-demand forecasting, credit system planning, control over you, complements the consolidated balance of income and expenses, coordinates the work of the finance department of the subordinate enterprises.

     In some ministries and departments fi¬nansami control scheme combined with the implementation of other management functions: pla¬nirovaniya (Forecasting), accounting. In such cases, there are pla¬novo-financial or financial and accounting management. These orga¬ny analyze the economic and financial activities of the system, prepare proposals aimed at improving its effectiveness, efficiency with the use of finances. They are also developing uka¬zaniya, instructions, training materials, regulating finanso¬vuyu job subordinate enterprises, organizations, uchrezhde¬ny.

    The financial work at enterprises, associations osuschestvlya¬etsya finance department, which is independent struktur¬nym division. For small businesses finance departments can be combined with the sales department or accounting (financial accounting, marketing or finance department).

     uchre¬zhdeniya banks taking part in the operational management of finances. Second-tier banks carry cash management services to enterprises and organizations to lend vre¬mennye cash requirements [3].

     Currently, the improvement of financial management takes place on the basis of linking this process with the development and vnedreni¬em in the financial management of automated systems.

     Under the automated financial management system means the totality administrativ¬nyh, economic and mathematical methods and computational or¬ganizatsionnoy technology, communications, allowing to manage finances efficiently the financial system.

     The financial management applies automated sis¬tema financial calculations - ASFR. It consists of an interconnected, co-operating subsystems: functional, obespechivayu¬schih, technology.

     In terms ASFR changes significantly the contents of the unit of financial management. Information received financial ra-workers of the automated control systems, allowing them to improve the quality of management decisions based on consideration of many options and select the best.

     In Kazakhstan for the twenty years of independence has completely changed the system of economic and social relations. Since the beginning of the 1994 global economic reform to a large extent achieved financial stabilization, is nearing completion, privatization of all state property, there has been a rise in production. There have been almost complete liberalization of prices and the abolition of most restrictions on foreign trade. [4]

     The financial system of the Republic of Kazakhstan is the nature of the market, usually it consists of five units: the state budget, local finance, special funds, finance state-owned banks, finance companies and public corporations.

     Prospects for the development of the financial system at the stage of building a market economy and the way of its human resources and professional software should be considered in the context of their role and influence on the functioning of our society. It is well known that the finances of the economy on the value equivalent to the circulatory system of the body. They create a close intertwining of specific financial spheres, such as - the budget, treasury, taxation, social security, banking or credit, if even be brought to the ideal state, can not be a positive influence on the economy as it is the individual links in a single chain. They need to be improved simultaneously.

     Such an approach to solving the urgent problems require focus in the context of two planes: improve the assessment of the available financial system and mechanisms of its functioning, respectively modern needs and assess professional staff of financial services and their ability to implement these tasks. After all, the financial system institutions - are not abstract form, they are represented by people who carry on their shoulders the heavy burden of today's financial problems. Only the professionalism and responsibility - the success in the formation of financial management and improving the efficiency of the financial system impact on the socio-economic development of society.

     The financial system should be constantly improved.

     The main objective of this process is to increase its impact on the stabilization and subsequent socio-economic development of the country, to ensure the steady growth of the gross domestic product, financial resources, the strengthening of commercial and economic accountability at all levels of social production. It is necessary to increase the effectiveness of public finance management by strengthening the central principles in conjunction with the widespread introduction of economic methods of management, independence of business entities, local authorities in the production and social development. [5]

     Thus, financial status is determined by the state of affairs in society, and therefore the stabilization and development programs should provide for implementation in the first economy-wide measures to increase the efficiency of the economy. Among these measures - improvement of industrial relations, social reorientation of the economy, structural transformation of the national economy, the acceleration of scientific and technological progress, intensification of foreign economic activity, the decision problem of saturation of the consumer market at the expense of domestic production. Among the financial measures necessary rationalization of investment, decline in maintenance of management costs, stricter regime of economy at all levels of management; in the lower levels of the economy - the elimination of loss-making, the development of commercial calculation, indicative regulation of financial relations at all levels of the financial system.

     Place and role of the individual components of the financial system are not the same. The primary (main) element occupies a leading position among the other elements of the system, because of its role in the relationship of elements and parts of the system is critical. This element in the financial system are the nation-wide finance, represented primarily by the state budget.

     As the President said at the VI Congress of Kazakhstan Financiers "financial sector - is our pride and competitive advantage by the joint efforts of the private sector and the state". [6]

     Despite the achievements, the domestic financial market is characterized by a high degree of sensitivity and elasticity to changes in both external and internal environment.

     The main problem in the financial sector, in our view, lies in the fact that the quantitative growth of the revenue part of the budget of Kazakhstan and all the other important financial indicators achieved by the fall of tenge exchange rate against the dollar and the revenues from the oil industry, which could lead to deeper the economic downturn, as the entire financial and economic system depends on the quotations of raw materials on the world market;

     financial recovery problems concern the international community. After all, what is currently happening in the financial sector activity is closely associated with personal well-being of everyone. The size of profits and taxes, social security contributions and pensions, the price of stocks and bonds, investment funds form the production and the social sphere, etc. - Such questions are discussed today not only in government circles, they are deeply concerned about all of us.

 

 

 

References

 

1. Melnikov VD, "Finance. Textbook for high schools of economics ", Almaty, 2005. - 98c.

2. AI Khudyakov, "Financial Law of the Republic of Kazakhstan", Almaty, 2001. - 15 s.

3. Artemenko GN, "Financial Analysis", Moscow, 1998. - 77c.

4. Naymanbaev SS, "Financial Law", Almaty, 2004. - 125c.

5. Zhusupov AD, "The financial system of the Republic of Kazakhstan", Astana, 2007. - 219s.