What is finance

Finance is the revenue and expenditure activities of the state or government, it is a government to choose a certain form (in kind, servitude or money), a portion of the national income as the object of distribution, for the state to achieve the needs of its functions and the implementation of the act of distribution. Obviously, this definition contains the following elements, or, financial is composed of financial subject, financial object, financial form and financial purpose of the four elements

Finance is the government's "financial management of government". The term "finance", two meanings: from the practical sense, refers to the state (or government) of an economic sector, that is, the financial sector, it is the state (or government) of a comprehensive sector, through its revenue and expenditure activities to raise and supply funds and funds to ensure the realization of the state (or government) functions. Understood in the sense of economics, finance is an economic category, finance as an economic category, is a kind of economic behavior of the state as the main body, is the government to concentrate a part of the national income to meet the needs of the public **** expenditure activities, in order to achieve the optimization of the allocation of resources, the fair distribution and the economic stability and development of the goal.

Expanded Information:

p>The mechanisms and means of fiscal allocation are:

(1) Determine a reasonable proportion of fiscal revenue to GDP based on the government's economic functions, so as to realize the overall efficiency of resource allocation.

(2) Optimizing the structure of fiscal expenditures, ensuring key expenditures, compressing general expenditures, and improving the structural efficiency of resource allocation.

(3) Reasonably arranging the scale and structure of government investment to ensure the country's key construction.

(4) To drive and promote private investment, attract foreign investment and foreign trade, and increase the economic growth rate by means of government investment, tax policy and financial subsidies.

(5) To improve the efficiency of financial resource allocation itself.

Baidu Encyclopedia-Finance