UNIT 1 An Overview of the State Financial System

Finance is the system of science of public revenue and expenditure or the provision of funds when they are needed.

As a system of monetary relations leading to formation, distribution and use of funds in the process of turnover between economic units finance falls into public finance and finance of economic entities. The financial system is a network of institutions through which firms and government units obtain the funds they require and put surplus funds to work. Financial intermediaries including banks, thrift (saving) institutions, pension funds and insurance companies channel funds from people and companies wishing to lend to those wishing to borrow.

Public finance has four major functions. It is the provision of essential services, the encouragement of control of particular sectors of economy, the implementation of the social policy and the encouragement of the growth of the economy as a whole.

Public finance is the provision of money (obtained through taxes) to be spent by national and local government authorities on projects of national and local benefit. Central government raises money from individuals and companies by direct and indirect taxation and spends money on goods and services, such as health and defense, wages, salaries and pensions. Local government receives grants from Central government and raises revenue mainly through local property taxes. From these resources it provides services: education, police, fire services, etc.

All governments have budgets, the major instruments of any financial system. They show the sources from which the revenue will be collected and lists the expenditures for various public purposes. A budget is the forecast for a specific period of time known as a financial or fiscal year.

public (n) – общественный, государственный

revenue (n) – доход, денежные поступления

public revenues – государственные доходы

expenditure (n) – трата, расход

to list the expenditure - перечислять расходы

public expenditure - общественно-государственные расходы, расходы на социальные нужд

provision (n) – снабжение, обеспечение, ассигнование нераспределенной прибыли на конкретную цель

to provide (v) – снабжать, обеспечивать

provision of funds – предоставление средств

turnover (n) -оборот

public finance – государственные финансы

entity (n) – (экономическая) единица, организация, предприятие

institution (n) – учреждение, организация

surplus (adj) – избыточный, лишний

surplus (n) – излишек, остаток

in surplus - в излишке, в избытке

intermediary (n) – посредник, агент, брокер; учреждение, выступающее посредником между поставщиками и потребителями финансовых ресурсов

thrift (saving) institutions – сберегательные учреждения

insurance (adj) – страховой

insurance (n) - страхование

to insure (v) - страховать

lend (v) – одалживать, давать в долг

borrow (v) – з анимать, заимствовать

encouragement (n) – одобрение, поощрение, поддержка, стимулирование

to encourage (v) – одобрять, поощрять, поддерживать, стимулировать

implementation (n) – осуществление, выполнение

to implement (v) – осуществлять, выполнять

government (public) authorities – органы государственной власти

raise money (funds) – получать (добывать, занимать) деньги, мобилизовать капитал

direct and indirect taxation – прямое и косвенное налогообложение

property (n) – собственность, имущество

source (n) -источник

forecast (v) – прогнозировать, предсказывать

forecast (n) – прогноз, предсказание