Financial policy is a set of measures for the use of financial relations aimed at improving the economic and social activities of the country. Its main task is to achieve the set goals in socio-political and certain economic conditions.
The main components of financial policy
The budgetary policy is based on the formation and regulation of the state budget to ensure the social and economic development of the country, manages the public debt and is used for various state needs - tax benefits, subsidies, subventions.
Tax policy is aimed at the formation of a tax system, due to which accumulation funds will be received and rationally used, by increasing or decreasing the share of tax revenues, changing tax rates and tariffs. By exempting certain groups of the population or industrial sectors from taxation, it contributes to the harmonization of economic processes and ensures the implementation of social programs.
Monetary policy is a set of measures aimed at regulating monetary circulation in order to ensure price stability and production growth. Promotes the provision of the country's economy with the national currency, regulates its circulation in order to increase economic growth, reduce inflation, and attract investment. Customs policy is the external activity of the state that regulates the conditions for the export and import of goods. Regulates customs duties, helps to replenish the budget and stimulate the domestic economy.
Debt policy is the management of public debt, regulation of government debt obligations, raising, placing and returning funds, determining the terms of loans and their repayment, ensuring solvency and making a profit from borrowed funds. Investment policy - attracting investors to the country's economy. In addition, the state itself can act as an investor.
Directions of state activity of financial policy
Financial policy in the field of the financial market consists in the adoption of legislative and regulatory acts on financial issues, as well as regulation of the issue and circulation of financial assets, protection of investors' rights, and financial control. The financial policy in the field of insurance covers legislative regulation of the insurance activities of the state, the creation of target reserves, the fulfillment of obligations under insurance contracts, and the provision of state supervision in the financial activities of insurance companies. In the social sphere, it regulates the establishment of the size of insurance premiums, various types of social payments and compensations, the creation of insurance reserves, and also exercises state control and supervision over targeted programs and funds.
