Право. Административное и финансовое право.

 

Karabayev N.T.

 undergraduate of 2nd course Al-Farabi KazNU

Scientific leader: Candidate of Law, associate professor Seitzhanov A.A.

 

The functions of government in the economy

State, economy and law - is known to be interrelated phenomena and categories. Through the existing connection between these categories are reviewed laws and the economic basis of the ratio of state-legal superstructure. Experience in many countries show that it is impossible to build a powerful state without the support of a well-regulated legally economy. Conduct of the States of the economic policy requires a dynamic and adequate development and improvement of the legal system.

At the present stage of our government is trying to create a comprehensive program of socio-economic development, reform the economy, provide the necessary mechanisms of management, appropriate fiscal, monetary and credit system.

In addition, the scope of direct government management of the economy today is shrinking. If previously dominated and strengthen public ownership of the means of production, and the majority of enterprises, associations and other facilities owned by the state, it was designed through their bodies to manage them.

As you know, administrative management practices stem from the very nature of government, which provides some authoritativeness and subordination of others. In this case, through an appropriate system of government, their officials and the state as the owner of the property subject to implement the necessary functions in the economic sphere [1].

The basis of administrative methods is necessary, first of all, the adoption of mandatory for the lower levels of management decisions, which exercises direct influence on the object of control by the unilateral determination of its tasks, and in some cases - ways and means to solve them. So weighty instrument of his time, for example, advocated planning by the state. It was at the same time functions and methods of government.

Of course, to use economic methods, combining them with administrative. The basis of these methods is necessary the use of economic instruments and incentives such as price, credit, profit (income), public order and other economic methods. The content does not directly impact on the management of subordinate objects and placing them with the help of economic levers and incentives an economic situation that is dictated to them the appropriate behavior in order to achieve positive economic effects, that is, to stimulate economic interest [2].

In the context of state domination of non-state ownership implement appropriate policies in the economic sphere, realizing it as their economic, organizational, social and other functions. But at the same time, such a policy should not dictate to dominate, and regulation, control, coordination, etc.

And predominantly economic methods, which are based on reasonable tax system rests, which would stimulate production and entrepreneurship. Requires its’ improvement and credit policy pursued by the state. Generally, in such an economic situation, taking into account the restructuring of ownership, the challenge is to make the first, though still far and the development of market principles to the active tool to promote effective operation of all participants in social production [3].

At the same time today expressed a lot of opinions, the meaning of which boils down to a complete disregard for the centralized control of the state, the possibility of its functioning only on the basis of market relations. These do not include any history of economic development of Kazakhstan, nor the scale and complexity of the structural economic complex, nor the division of labor and cooperation, or other factors, the presence of which require centralized regulation of economic processes.

However, social production, distribution and exchange consist of many industries that are both autonomous systems with their internal relationships and patterns of functioning. Given these factors, we can't just ignore them and build the economy exclusively on market mechanisms. It isn't necessary to refuse an essential role of the state in the economic sphere, to underestimate a role of state regulation and management.

Public administration — this conscious impact of the state institutes on activity of society, its separate groups in which public requirements and interests, the valid purposes and will of society are realized. The concept "management" designates mainly influence (proceeding from the subject) the purposeful impact on system, the influence which is a factor of preservation and stimulation of a certain orientation of self-development of system. Regulation assumes creation of necessary conditions for spontaneous action of internal regularities and mechanisms of system. According to the Explanatory dictionary to regulate one of values of the term – operate direct. Along with it this term it can be designated: 1) impact on something for the purpose of achievement of the necessary results; 2) submission of this or that action to certain rules [3]. The economy as object of public administration is considered in various directions: The economy is a set of branches, public administration – a branch, departmental ex. Economy - set of spheres, public administration - management of various spheres. Economy – set of the markets, need of management of the markets as subjects of economic activity. To operate various relations: between hired workers and the enterprises. To operate economy means practically to carry out all types of managing directors of influences on all spheres. On the volume of distribution of influences and their content of public administration are subdivided on: branch and territorial. There is a management on micro (at the level of firm) level and macro (at the level of the state) level. Management of basic elements of economy: Here the integrated approach assuming administrative preparation not only administrative shots or public servants for public administration, but also those who is in the operated objects is necessary, is guided by the operating influences and perceives them. After all if those who on the different bases and the reasons join in administrative processes, don't understand value and sense of public administration, they won't be able to share its ideology and values pursued by it a state policy. In this case it is difficult to hope that the state will be able objectively to realize the purposes facing it. Competence of government bodies of management of the sphere of regulation of economy is reduced to the following directions: formation and transformation of the economic services and institutes, replacement which were outdate the new; legal bases of the uniform market; power systems, transport, communication; state budget; financial, credit, currency, customs regulation; price policy; monetary issue.

In the economic sphere control (supervision) in varying degrees, carry virtually all specially created inspection services and other authorities in accordance with its powers.

Public administration in the sphere of economy is exercised appropriate authorities of executive power and officials. Their competence and the principles of activity are defined by laws and other regulations.

By managing the economic sphere, the state guarantees the subject of economic relations:

- Real protection of economic activities (legal, organizational, financial, etc.);

- Unity of economic space;

- Free movement of goods, services and financial resources;

- Development and support of competition;

- Freedom of economic activity, except as provided by federal law.

At the present stage, the work is to establish a system of state support of business entities at the federal and regional levels are fulfilled and is determined mechanism for coordination and exchange of experience on the implementation of programs to support economic activity, implemented with the support of international organizations.

The state uses the available intellectual, material and financial resources to strengthen and expand the network of scientific and educational institutions related to the training and retraining of personnel, studying the problems of effective economic development.

A feature of modern activities of state bodies to regulate the country's economy is more clear lines of authority and responsibility of the state and its agencies for issues of support and control of economic activity.

Public administration in the sphere of economy is exercised appropriate authorities of executive power which, in turn, represent uniform system.

The most important function of the state is economic. It is a matter of debate. It has been suggested that the state should not participate actively in economic life. In particular as the advocates of liberal economics, representatives of Keynesianism, in contrast, argued for the impact of public policy on economic processes.

The answer to the question of whose arguments weightier, depends on the specific historical situation.

However, the situation began to change dramatically in the early 60s. Scientific and technological progress does not require a large concentration of capital. High efficiency and mobility showed small and medium enterprises, providing scope for private initiative. In such circumstances, the state investment in the real sector has become redundant. But the importance of purchased government investment in education and fundamental science.

Is it possible to assume that in the future the situation will change again, and the state will be forced to invest in the real sector? Yes, this can happen when the direction of development of the productive forces. For example, if in the future will require huge investments to prevent environmental disasters and the development of alternative energy sources.

Consequently, the economic function of the state in the long term is determined by the peculiarities of development of the productive forces.

In addition, accumulating and redistributing financial resources, the state provides adjustment of the market mechanism, acts on income generation and the functioning of markets.

Thus, organizational, social and economic functions determine the necessary financial resources, the cost structure of the budget and the proper structure of its revenue.

All economic systems that exist in the real world are mixed (with the growing influence of the state or the market). In such systems, the state and the market system is divided between the responsibility for implementation of the five economic functions:

- Development and implementation of legal and social activities

- Maintenance of competition in the markets

- Redistribution

- Reallocation of resources

- Stabilization of the economy

These functions help to strengthen economic and simplify operation of the market system is modified pure capitalism towards achieving economic and social goals of society.

In the course of macroeconomic regulation state performs the following economic functions:

- Develops and approves the legal framework of the economy;

- Defines the priorities of macroeconomic development that is allocates among macroeconomic objectives are those that are most important at this stage of economic development;

- Provides normal working conditions for the market mechanism, including anti-monopoly policy.

- Shall regulate economic activities to achieve the objectives on the basis of certain economic policies

Complements the market mechanism in the areas of economic activity where the lack of effectiveness.

Solves the problem of social protection of the population, ensuring its socio-economic rights and distributing income more equitably between members of society.

 

Literature

1. V.A. Maltsev. Financial law. Tutorial,- 2008, p.56
2. Krokhina Y.A. Financial Law
, -2010, p.202
3. Mandritsa VM Financial Law: Textbook, - 2011, p-212