The concept and characteristics of financial law

The concept and characteristics of financial law


In the system of Kazakhstan law as one of its integrated industries included financial law. The relationship between financial law and Finance is obvious; therefore, the study of financial law traditionally begins with consideration of the concepts of Finance, financial systems and financial activities of the state.

Finances represent economic category, the essence of which, patterns of development, the scope covered by the commodity-money relations and role in the process of social reproduction are determined by the economic structure of society, nature and functions of the state.

The state needs funds to implement its goals and tasks set by society. The emergence of financial relations, as well as their death, is not the result of arbitrary state action, it will. Finance is objectively necessary, as driven by the needs of social development.

Finance — is the economic relations connected with formation, distribution and use of centralized and decentralized funds of funds in order to fulfill the functions and tasks of the state.

Finance is not the equivalent of money, and have a specific and public purpose, which is expressed in their functions – distribution and control.

The distribution function of Finance is that through the distribution and redistribution of newly created value is provided by the national needs, formed the sources of financing the public sector of the economy, achieving a balance of budgets and extra-budgetary funds in the framework of a unified budget system of the RK. Beginnings of financial law are Constitution and Financial law (codecs) According to the Constitution of the Republic of Kazakhstan:

Article 35

Payment of legally established taxes, fees and other obligatory payments shall be a duty and responsibility of everyone.

Financial law includes the hypothesis, the disposition, and sanction.

The redistribution of national income occurs between productive and non-productive spheres, branches of material production, different regions of the country, and forms of ownership, classes, and social groups.

The control function of monetary authorities is evident in the tracking of real money in circulation, which is the state, the distribution of the gross domestic product during the formation of the relevant funds of funds and spending them for their intended purpose. The control function of Finance always has a specific form of manifestation. It can be aimed at a certain budget level, budget Fund, the enterprise or institution, etc.

In general, the socio-economic essence of financial relations is to define sources of formation of funds of funds of the state and municipal formations and directions of spending of these funds, that is, in the question — by whom the state receives the financial resources and in whose interests will use these funds.

Finance have their own structure, which consists of several interrelated parts, each of which represents a certain sphere of financial relations (Finance Institute) and has its own specifics. Different financial institutions constitute the financial system of the country.

In other words, the financial system is a system of forms and methods of formation, distribution and use of funds of funds of the state and municipalities.

Both the legal and the economic literature there are different opinions about the content of the financial system. The most common is the approach that the financial system of Kazakhstan included: budgetary system, including state and local budgets, as well as government (national and local), extra budgetary funds, funds of property and personal insurance; credit (government and Bank); financial institutions of various forms of ownership, sectors of the economy.

The use of government Finance occurs through the exercise of specific (financial) activities. Financial activities are the process of formation, distribution and use of financial resources by the state through its cash funds in order to fulfill their tasks and perform their functions.

It is more correct to consider the financial activities of the state as a special kind of state activities, including legislative activities of the representative bodies of the state in Finance (the adoption of laws on financial matters establishment and introduction of, for example, taxes and fees, approval of budgets) and management activities of the Executive authorities, through which implemented the regulatory legal acts in the sphere of financial relations.

The Executive authorities should be divided into has General competence (the Government of Kazakhstan, etc.) and special competence in the financial sector (Ministry of Finance).

Special status was the national Bank of Kazakhstan. Its status, powers and functions as party – nick the financial activities of the state defined in the Constitution of the RK and the Law RK “On National Bank of the Republic of Kazakhstan.

Financial activities administrative-territorial units are carried out by bodies of local Executive and representative bodies during the formation and execution of local budgets.

Indicators of financial affairs:

  1. Inflation
  2. Gross domestic income
  3. Budget deficit
  4. Residents’ minimal salaries


Financial law — public branch of law, which is a set of legal norms regulating social relations that arise and are realized in the course of the financial activities of the state.

Financial law has its own subject and method of legal regulation, which allows distinguishing it from other branches of the Kazakhstan right.

The subject of financial law are social relations arising in the process of formation, distribution and use of funds of funds of state and municipal entities needed to perform their functions and tasks.

These relations have certain features that arise in the process of financial activities of the state and local authorities; constitute a species of property, as there are about money; one of the parties always was a state or local authority, vested with governmental authority.

The primary method of financial law is imperative, or method of government regulations. The use of this method for the regulation of financial relations does not require between their subjects obedience “vertical”. Most often this method is used by bodies specifically created for the implementation of financial activities — financial-credit bodies, which other participants of the financial relations under – canine only in the sphere of financial activities.

Based on the structure of financial law as a branch are financial and legal norms. Financial and legal norm can be defined as specified by the competent authority, the rule of conduct in public relations arising in the course of the financial activities of the state and municipalities, which enshrines the legal rights and duties of their members, and provided measures of state coercion.

Financial law has certain features that are primarily due to features of subject and method of Finance law in General.

Feature of financially-legal norms is that they are mainly imperative nature i.e. they contain requirements cannot be modified by agreement of the participants of public relations.

As for financial penalties, they include a fine, forced the withdrawal of budgetary funds, stay of operations under accounts in banks, a ban the Bank from carrying out certain banking operations, etc. Feature in this case is that measures of force were economic (monetary) in nature, as they are focused on money (funds) of the offender.

Under the sources of financial law refers to legal acts containing norms of financial law, published by the representative and Executive bodies of state power.

Feature of financial law is the absence of any single source for this branch of the law as a whole, for example, of the code. However, there are a number of legislative acts that regulate the financial relationship. 

Financial relationship 

The financial relationship is regulated by rules of law social relation arising in the process of formation, distribution and use of funds of funds, whose members have certain rights and responsibilities.

Important for a more complete discussion of the financial relations is the study of the circle of its participants (actors). The subject of the financial relationship is the real participant, the specific financial relations.

The subjects of financial law can be divided into the following groups:

– Public-territorial entity (these include the Republic of Kazakhstan, the administrative-territorial units);

– Collective actors – state and non-state organizations;

– Individual entities — physical persons (citizens of Kazakhstan, foreign citizens and persons without citizenship).

A financial relationship is something that is directed to the conduct of its members carried out in the framework of their subjective rights and obligations and determines their interests.

The objects of the financial relationship can be the financial resources of the state and administrative-territorial units (budget allocations, subsidies, grants, taxes, fines, etc.); normative legal acts, planning acts and their projects (budget laws and their projects, estimates of budgetary institutions, etc.), as well as the results of activity of subjects of financial relations (financial control).

As already noted, one of the institutions of financial law is the state financial control, on the consideration of which is necessary to elaborate.

Financial control is regulated by legal norms of activities of authorized entities to verify the legality and expediency of actions in the field of education, distribution and use of funds of funds of the state.

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The concept and characteristics of financial law

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