Scientific works inside the theories of budget and credit, in step with the specification of the research item, are characterized to be many-sided and plenty of-leveled.
The definition of totality of the low in cost family members formed within the procedure of formation, distribution and utilization of finances, as money assets is widely unfold. For instance, in “the overall theory of price range” there are definitions of price range:
1) “…Finances reflect reasonably-priced relations, formation of the funds of money assets, within the technique of distribution and redistribution of countrywide receipts consistent with the distribution and utilization”. This definition is given notably to the conditions of Capitalism, when coins-commodity members of the family gain widespread individual;
2) “Finances represent the formation of centralized advert decentralized money resources, inexpensive family members pretty with the distribution and usage, which serve for achievement of the state capabilities and responsibilities and additionally provision of the situations of the widened similarly manufacturing”. This definition is introduced without showing the environment of its action. We percentage partially such rationalization of finances and think expedient to make some specification.
First, price range triumph over the boundaries of distribution and redistribution provider of the country wide earnings, although it’s miles a simple basis of budget. Also, formation and usage of the depreciation fund which is the part of a financial domain, belongs no longer to the distribution and redistribution of the countrywide earnings (of newly shaped fee at some stage in a year), however to the distribution of already developed price.
This contemporary first seems to be part of cost of main business finances, later it’s far moved to the cost price of a equipped product (this is to the price too) and after its realization, and it’s far set the depression fund. Its supply is taken under consideration earlier than hand as a depression type within the consistence of the geared up products price price.
Second, predominant aim of finances is lots wider then “fulfillment of the kingdom capabilities and responsibilities and provision of situations for the widened similarly manufacturing”. Finances exist on the country stage and also on the manufactures and branches’ degree too, and in such situations, whilst the maximum a part of the manufactures aren’t nation.
V. M. Rodionova has a distinctive position about this subject: “real formation of the monetary resources begins on the degree of distribution, whilst the price is realized and urban reasonably priced forms of the realized price are separated from the consistence of the income”. V. M. Rodionova makes an accent of a budget, as dispensing members of the family, while D. S. Moliakov underlines business foundation of a price range. Though both of them supply quite substantiate discussion of budget, as a machine of formation, distribution and utilization of the budget of cash assets, that comes out of the following definition of the price range: “economic cash members of the family, which bureaucracy within the technique of distribution and redistribution of the partial cost of the national wealth and overall social product, is associated with the topics of the economic system and formation and utilization of the kingdom cash incomes and financial savings inside the widened in addition manufacturing, within the cloth stimulation of the people for delight of the society social and different requests”.
In the manuals of the political-economic system we meet with the subsequent definitions of finances:
“Finances of the socialistic nation constitute economical (coins) relations, with the help of which, within the manner of planned distribution of the incomes and savings the finances of money sources of the nation and socialistic manufactures are shaped for making sure the increase of the production, growing the fabric and cultural level of the human beings and for gratifying other widespread society requests”.
“The machine of creation and utilization of vital price range of cash sources for guarantying socialistic widened further production constitute precisely the price range of the socialistic society. And the totality of competitively priced relations arisen among state, manufactures and corporations, branches, regions and separate citizen according to the movement of cash budget make financial members of the family”.
As we’ve seen, definitions of the budget made via financiers and political economists do now not differ greatly.
In each mentioned position there are:
1) expression of essence and phenomenon inside the definition of the budget;
2) the definition of the price range, as the gadget of the creation and utilization of finances of coins resources on the level of phenomenon.
3) Distribution of finances as a social product and the fee of countrywide profits, the definition of the distributions planned individual, principal dreams of the economy and most economical members of the family, for servicing of which it’s far used.
If refuse the preposition “socialistic” inside the definition of finances, we may additionally say, that it nonetheless continues truth. We meet with such traditional definitions of finances, with out an adjective “socialistic”, in the modern cost-effective literature. We may additionally give such an elucidation: “finances represent coins sources of manufacturing and usage, additionally coins family members regarded inside the process of dispensing values of fashioned reasonable product and country wide wealth for formation and in addition production of the cash incomes and savings of the within your budget subjects and state, worthwhile of the people and delight of the social requests”. On this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the conventional inheritance, we meet with the widening of the monetary basis. They subject “distribution and redistribution of the fee of created within your budget product, additionally the partial distribution of the fee of countrywide wealth”. This present day is very actual, incredibly to the process of privatization and the transition to privateness and is periodically utilized in exercise in exceptional countries, as an example, Great Britain and France.
“Finances – are coins sources, financial resources, their advent and motion, distribution and redistribution, utilization, additionally reasonable relations, which might be conditioned by means of intercalculations between the low-cost subjects, the motion of coins resources, cash flow and utilization”.
“Finances are the gadget of low in cost members of the family, which are connected with the firm advent, distribution, and utilization of economic resources”.
We meet with certainly innovational definitions of finances in Z. Body and R. Merton’s foundation manuals. “Finance – it is the science about how the people lead spending `the deficit coins resources and incomes in the precise time frame. The economic decisions are characterised via the costs and earning that are 1) separated in time, and a pair of) most often, it’s miles not possible to take them under consideration in advance neither by way of individuals who get selections nor another man or woman” . “Financial principle consists of numbers of the conceptions… Which learns systematically the topics of distribution of the coins sources exceedingly to the time component; it also considers quantitative fashions, with the help of which the estimation, setting into exercise and cognizance of the opportunity variants of each financial selections take place” .
These primary conceptions and quantitative fashions are used at every degree of getting economic choices, but in the trendy definition of budget, we meet with the subsequent doctrine of the financial foundation: foremost function of the finances is inside the pleasure of the humans’ requests; the subjects of reasonable activities of any type (companies, additionally nation organs of every stage) are directed in the direction of pleasant this primary function.
For the desires of our monograph, it’s miles critical to examine well-known definitions approximately finances, credit and investment, to decide how and how much it is feasible to integrate the price range, investments, and credit into the only general part.
Some researcher aspect that credit is the consisting a part of the price range if it’s miles mentioned from the placement of essence and class. The other, extra numerous institution proves, that a cheap category of credit score exists parallel to the affordable class of price range, by using which it underlines impossibility of the credit’s existence within the consistence of budget.
N. K. Kuchukova underlined the independence of the class of credit score and notes that it’s far most effective its “characteristic function the grew to become motion of the fee, which is not related with the transmission of the mortgage possibilities together with the proprietors’ rights”.
N. D. Barkovski replies that functioning of money created a cheap foundation for apportioning price range and credit score as an unbiased class and gave rise to the credit score and economic members of the family. He noticed the Gnoseological roots of technology in cash and credit, as the technological know-how approximately price range has an enterprise with the studies of such in your price range family members, which lean upon cash waft and credit score.
Let’s speak the maximum unfold definitions of credit score. In the cutting-edge courses, credit score appeared to be “luckier”, then budget. For example, we meet with the following definition of credit inside the finance-reasonably priced dictionary: “credit is the mortgage in the shape of cash and commodity with the situations of returning, normally, by using paying percentage. Credit represents a shape of motion of the mortgage capital and expresses low-cost relations between the creditor and borrower”.
This is the conventional definition of credit. In the sooner dictionary of the economic system, we read: “credit is the gadget of cost-effective relations, that is formed while the transmission of cash and material manner into the temporal utilization, probably beneath the conditions of returning and paying percent”.
In the manual of the political-economic system posted under discount of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created members of the family among the society, labour collective and employees at some point of formation and usage of the loan budget, beneath the terms of paying gift and returning, at some stage in transmission of assets for the temporal utilization and accumulation”.
Credit is mentioned inside the following manner in the sooner schooling-methodological manuals of political economy: “credit is the system of money relations, that is created in the system of the usage of and mobilization of temporarily free cash means of the kingdom price range, unions, manufactures, agencies and populace. Credit has a goal man or woman. It is used for imparting widened similarly manufacturing of the country and different wishes. Credit differs from finances with the aid of the returning person, while financing of manufactures and groups by means of the country is fulfilled with out this circumstance”.
We meet with the following definition if “the course of economy”: “credit is an economical class, which represents relations, at the same time as the separate industrial agencies or humans transmit money method to every-different for temporal utilization beneath the conditions of returning. Creation of credit score is conditioned by a historical system of gratifying the cost-efficient and cash family members, the shape of that is the money relation”.
Following scientists deliver slightly specific definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the share price via the borrower”.
Credit is giving the temporally loose money resources or commodity as a debt for the described terms by the price of a fixed percent. Thus, a credit score is the mortgage inside the shape of money or commodity. In the technique of this loan’s movement, specific family members are fashioned among a creditor (the loan is given by way of a juridical of bodily person, who gives certain coins as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving cash capital of commodity as a debt, for sure terms and material provision beneath the charge of firm percent rate. It expresses precise reasonable members of the family between the individuals of the technique of capital formation. Necessity of the credit score relations is conditioned, from one facet, through amassing stable amount of briefly unfastened money sources, and from the second one facet, lifestyles of requests of them.
Though, at the equal time, we have to distinguish equivalent to ideas: mortgage and credit score. The loan is characterized via:
o Here, the dialogue may additionally comment on transmission of cash and also things shape one facet (loaner) to another (borrower): a)beneath the owning of the borrower and, on the identical time, b) below the situations of returning equal amount or same amount and high-quality of the matters;
o The loaning of money may additionally bear no interest;
o Any man or woman may additionally participate in it.
With the difference with loan, credit, that is somehow a personal occasion of the mortgage, represents:
o One facet (loaner) gives to the second one (borrower) only cash, and _ for temporal usage;
o It won’t endure no hobby (if the mission would not foresee some thing);
o In it creditor is not any person, however a credit agency (at the first place, banks).
So, a credit score is the financial institution credit score. To our mind, it isn’t always correct to apply “credit” and “mortgage” as the synonyms.
Banking crediting is the union of relations between the bank (as a creditor) and its borrower. These relations touch upon:
a) Giving a sure amount of money to the borrower for particular purpose (although, we meet with the so-referred to as unfastened credits, goals, and gadgets of crediting are not appointed within the undertaking);
b) It’s opportune returning;
c) Getting percent charge from the borrower for using the assets underneath his/her disposal.
The vital basis of the credit score essence and its essential detail is lifestyles of considering among the two facets (in Latin “credo”, from which comes the phrase “credit”, approach “trust”).
From the location of stream of cash forms (in the abstraction, ancient manner of formation reasonable relations and social price range and banking structures expressed via them) comparing exceptional definitions of price range and credit score, the ambiguity conclusion seems: credit score is the private occasion of finances. And really, from the position of motion of the money paperwork, finances constitute the process of formation and utilization of the funds of coins method. Very frequently such movements are fulfilled without returning, but sometimes, it’s miles feasible to give loans from the budget for the funding initiatives of other needs. Also, while a manufacture or corporations use their cash finances and we mean the price range of business issue, such usage can be realized as in the manufacture or organisation (there is no challenge about returning or now not returning of the usage), so gratis underneath situations of returning. This brand new is referred to as commercial shape because of transmitting the resources to others, however even in this occasion, it is the detail of financial device of the manufacture and company.
From the point of cash approach movement, main man or woman of credit is the technique of formation and usage of the budget of coins way beneath the situations of returning and, most commonly, taking the price-percentage. If gating the credit score cost would not take place (even inside the super occasions), in line with the movement form, credit score becomes a private event of finances, as from the internet monetary budget (therefore from the kingdom budget) the loans which undergo no pursuits may be used. If gating credit value takes place, by the arrival form, credit is discussed to be a financial amendment.
From the historical factor of view, budget (specifically in the kind of the nation price range) and credit (starting with usury, later commercial and banking) were growing in another way for considering credit to be the part of budget. Though, from the genetic-historical point of view, preceding loaners, before giving mortgage, needed accumulating the permanent capital now not returning, that is the net financial foundation. The banks analogously wanted concentration of the critical personal capital for influxing the customers’ way and for getting higher percentage price under the conditions of returning. Herewith, precisely on the economic foundation, in the type of economic fund (which later in part turns into loan fund) part of the bank capital appears to be the reservation (insurance) a part of the fund, which with the aid of nature is financial and not mortgage. So however the vital distinctions between budget and credit score shape the genetic-historical factor of view, credit score appears to be shaped from price range and represent their modification.
From the important function of expressing most economical relations of budget and credit score, we meet with cardinal differences between these classes. Which typically expressed with the aid of the difference of the motion paperwork however they may be returnable or not. Finances express members of the family within the elements of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the perfect value handiest in the segment of percentage given for mortgage, at the same time as consistent with the loan itself, a best a temporal distribution of money assets takes region.
Herewith, there is a lot of commonplace among the budget and credit as from the critical point of view, so in step with the shape of motion. At the identical time, there is a considerable distinction between budget and credit score as within the essence, so inside the shape too. According to this, there must be a kind of typically not pricey category, with the intention to take into account price range and credit score as a total cohesion, and within the bounds of this class itself, the separation of the specific essence of the finances and credit might take vicinity.
Funding of the coins approach is commonplace to the researched comparatively cheap classes. It takes vicinity in any separate system of price range and credit, that have been touched upon at some stage in the analyses of defining finances and credit. Word combination “investment of the coins resources (fund formation)” displays and defines precisely essence and form of low-priced class of more well-known individual, those of budget and credit classes. Though within the in in your price range texts and practice, it’s far very uncomfortable to apply a termini, which consists of 3 words. Also, “unloading” with an statistics hardens greatly its influxing into the move even inside the conditions of its strict substantiation and thoroughness.
In the discussing context we don’t forget:
1) extensive and narrow know-how of low in cost category of the budget;
2) discussing price range in slender information under fashionable conventional which means;
3) discussing price range, as the funding of the coins method, in huge knowledge, which worries finances – in slender that means and credit – in complete which means.
Termini “funding” and its equivalent “fund formation” are used by us because the practical structuring of coins means, that is based totally on two poles – accumulation of cash resources (gathering) and its utilization for precise reason within the way of financing and credit.
We have hooked up a new termini – “finance-funding sphere” (FIS). Analyses approximately interrelation of price range and credit score made by means of us provide us an opportunity of proving, that in the given termini, the word “economic” is used with the that means of investment coins sources, its purposeful structuring. In this system we keep in mind at the same time financial, credit score and investments’ least expensive categories.
Let’s sum up center consequences of discussing the new idea – “finance-funding sphere” and talk its funding consisting parts.
The concept “investments” became delivered into the native low cost technological know-how from the West. In the Soviet inexpensive science they for a long term used within the place “investments” the termini “capital placement”, which expressed using the economic elements in the sphere of actual industrial sports at some stage in realization of capital tasks. From one look, this termini in its idea is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the gain in the direction of the termini “capital placement” from linguistic and philological factors of view, because they are expressed with one phrase. This isn’t handiest low in cost and relaxed in the technique of running with the termini “investment” itself, however also it offers an possibility of termini formation. More concretely: “funding method”, “investment area”, “finance-investment sphere” – most of these termini are plenty more applicable.
Changing native low-budget termini with overseas ones is functional, if it in reality matters (through preserving parallel utilization of the native termini for the inheritance). Though we need to not exchange native reasonably-priced termini into foreign ones all collectively, when via ordinal conventional language clean to explain private and slim concrete strategies and elements get their own termini. The “movement” of these termini is accredited in the slim expert bounds, however their “spitting out” into the in your price range technology might also flip good value language into the tangled slang.
Let’s speak termini – “funding” and “capital placement’s” usage in the cost-efficient literature.
Investments are the placement of funds into the primary and circulate capital for the motive of having income. “Investments in cloth property – are the placements of the budget into the mobile and actual estate (land, buildings, fixtures and so forth). Investments in economic assets are the placements of funds into the securities financial institution money owed and different monetary contraptions”.
We do not meet with the termini “investments” in the earlier least expensive dictionary, but we meet the blended termini “funding policy” – the union of the economic decisions, which guarantee essential directions of the capital investments, the activities in their awareness inside the determinant suburbs, on which the attaining of deliberate charges of improvement of the society manufacturing is depended, balancing and effectiveness, getting increasingly more production and income of the countrywide earnings for each lost Ruble”. For today, within the maximum actual definitions, the capital investments are bounded only through financial means, when now not most effective economic, however additionally the funding of natural, cloth-technical and informational sources takes location. Labour assets take an actual area inside the investment process. They themselves satisfy this or that funding technique.
A tremendous side of the mentioned definitions is that they connect funding policy and capital placements (investments):
– budget friendly improvement consistent with the important thing directions to the attention;
– presenting excessive costs of not pricey growth;
– elevating a cost-effective effectiveness, that is expressed:
a) by way of growing the throw off of the manufacturing and countrywide profits for every lost Ruble;
b) via pleasurable the branch structure of the investments;
c) by means of enhancing their technological shape;
d) with the aid of optimization of their in addition manufacturing shape.
Compared with such definition of the investments (capital placement) the definition of investments within the dictionary attaching the “Economics” seems to be unimproved: “investments – the costs of collecting manufacturing and industrial method and increasing material reserve”. In this definition contemporary charges (manufacturing expenses) are mixed with the investment (capital) cost. Also, not the investment costs however (though the investments are accompanied with the aid of the suitable fees) exactly advancing. It differs from the costs by means of that the means (manner) are placed via returning the advanced values, also, beneath the situations of growth, to which the idea-superior capital is corresponding. The advancing can be realized inside the money, natural-fabric and informational forms.
Except the termini “investments”, there are two extra termini related to the funding. They are shown below.
“Human capital funding” – any activity supplied for growing the employees labour productiveness (inside the way of developing their qualification and growing their skills); on the expenses of enhancing the people’ training, fitness and raising the mobility of the working forces”. It is very useful to apply the noted termini, although it needs one correction: the human capital investments do now not problem only workers, however additionally the servants, representatives of each sort of labour.
“Investment commodity, capital goods – a capital.”
In the official manuals of the political economy of the reformation time, the capital investments are mentioned as “expenses for developing new foremost price range and widening, reconstruction and renewing the active ones”. In this definition, the investments (capital placements) throughout separation of the forms (sorts) of in addition manufacturing of the principle finances are bounded handiest through important finances (with out will increase of the move budget and insurance reserves):
a) developing new ones;
Also, the concept of the industrial gathering appears, at the charges of the widening of simple, flow funds and also coverage reserves takes location”.
You’ll meet below the definitions of investments from “the course of the economic system”: the investments are known as “placements of the fund into the basic capital (fundamental means of manufacturing), reserves, also different cost-effective objects and approaches, which request lengthy-termed influxing of fabric and cash way. “According to the department of capital into physical and cash forms, the investments too should be divided into cloth and cash investments”.
They apportion investment commodity, to which belong commercial and nonindustrial constructing items, automobiles purposed for converting or widened technical park and the furnishings, increasing reserves and others.
“They call the whole investments of production an investment product, which is directed closer to maintaining and growing the primary capital (primary approach) and reserve. Total investments consist of two elements. One of them is called the depreciation; it represents essential investment resources for repayment of renewal till the level of before business usage, wearing out and repairing of the fundamental method. Second consisting part of the whole investments is represented by using net investments – capital investments for the motive of increasing basic method”. Depreciation isn’t always a compensation useful resource of wearing the fundamental budget out, however it’s miles the practical monetary supply of such assets.
Human capital investment is “a selected sort of investments, typically in education and health safety”.
“Real investments are the investments within the cost-effective branches and also, they’re forms of least expensive activities, which offer influxing the will increase of real capital, this is growing material values of the commercial means”. We can believe such definition with one specification that cloth and nonmaterial values too belong to the actual capital (wealth), therefore technology-getting to know experimental-construction consequences, various information, training of he employees and others. Such service as the company of the excitable games, also the service of redistribution social wealth from one personal individual to another (except charity).
“Financial investments constitute placement of budget into the stocks, obligations, promissory notes, other securities and units. Such investments, of route, do not deliver increases of the real material capital, but they help getting income, consequently on the costs of changing the direction of the securities in the time of hypothesis, or distinguishing the path in exclusive locations of promote and purchasing”. We percentage totally such definition, therefore it follows that monetary investments (if it isn’t observed by real investments as a end result) do no longer boom real cloth wealth and real nonmaterial wealth. According to this context, the expression under could be very essential: “we ought to distinguish financial investments, which constitute placement of the price range within the ways of promoting and buying the securities for the cause of having earnings and economic investments, which emerge as cash and actual, moved to real physical capital.”
In the “economical path” quoted before long and quick-termed investments are separated. Recognizing the lifestyles of the boundaries among them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned standards, that we can name the investments which triumph over the phrases of some months, lengthy-termed ones, which is very doubtful and we don’t consider it. A lengthy-termed person of the fund placement is a enormous function of the investments (quick-time period doesn’t combine with the idea of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:
– much less then 6 months – short compensative;
– from 6 months up to the 12 months and a 1/2 – center termed compensative;
– more then the 12 months and a 1/2 – lengthy termed compensative.
We stopped on the definition of the investments inside the capital work “cost-efficient path” for the special cause, as, in it, the author attempted to talk about the concept of investments systemically and quite absolutely, herewith the e-book is posted just now.
We’ll go back to the dialogue the definition economical class of “investments” in different courses inside the following chapter. The definitions given here are pretty enough for having a belief of the extent of lights up the given category within the not pricey literature.
What conclusions may be made according to the definition of the mentioned within your means category inside the published works, except the made notions and specifications?
There is quite deeply, concretely and punctiliously described the concept of “investments”, special definitions inside the affordable literature; but mostly in each works about the investments discussed with the aid of us till now, there isn’t always opened the essence of investments as an economical category. In every monograph , even supposing it has a identify investment, as a cheap class , there is given only the definition, idea of investments. But, because the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing function of the researched object. A concept out of a good deal essential feature features represents best one, and important in it is simplest – definition”.
But the categories are a good deal wider; it’s miles “a key, the most fundamental idea of each technological know-how”. Economical categories theoretically represent real, objectively existed effective members of the family. A class is the definition of activities of existed characters, connections, relations of the objective world. Generally, any instructional manner is fulfilled via the types, which provide possibilities for dividing the strategies and events semantically, for expressing the definitions of a topic and recognize their unique peculiarities and low in cost family members of a cloth global.
Our aim is exactly to substantiate investments – as a cost-effective class and also, as a monetary category within the slender knowledge.
Here we practice for another guide thesis made by means of the academician Vasil Chantladze: “each financial relation is a cheap one and every monetary class is and cost-effective one, however no longer each good value relation and low in cost class is the financial relation and financial class”.
In the method of defining the investments, it’s far important to take in thoughts the edges of assets, costs and earning, because investment, from one facet, is the end result of the manufacture’s hobby, and, from every other one, – a part of profits, which, in this example, isn’t used for utilization.
Another occasion: it is really helpful to talk about investments in two elements: as a category of reserve and flow, with a purpose to mirror exactly the connection between “placement of budget” and “investments”.
As we’ve referred to above, no longer long ago, in the famous Soviet literature the ideas of “the location of budget” and “investments” had been commonplace to be the synonyms and concerned to be funding of resources for further manufacturing of the main price range and formation of the turnover budget. We meet with such understanding of the concept of “funding” (here, they separate three forms of the investment costs: investments within the basic capital of investments, investments in the house building and investments in the reserves) in the contemporary reasonable guides and it’s miles often used on the macro degree throughout a statistical analyze of comparatively cheap methods. In this concrete occasion investment is the category of reserve.