Research of the essence of financial flows

The objective need in the increase of the role of regional finances at the current stage of market relations in Russia demands systematisation of financial flows in regions of the Russian Federation and an efficient model of financial management at the regional level. Solving of these problems leads to the task of intentional definition of regional financial management based on research of the essence of financial flows as a general object of state financial management. The review of three main scientific concepts of interpretation of the essence, characteristics and functions of finances allows to draw a conclusion that the meaning of finances as an instrument and object of management of socio-economic processes ensures the distributional nature of financial relations - by means of regulation of distributional processes it is possible to change the production volume, the economic growth rate and by this to manage economic and social development on the territory. In the system of state financial management, financial flows are the movement of finances as a result of distributional processes accompanied by the formation and utilization of target financial funds, that defines them as process financial flows. The nucleus of process financial flows is formed by budgetary financial flows being an efficient instrument of impact on the economic model in financial relations of all participants of the social process of production. The author treats the regional finances as the finances of the financial relations subjects in the region: the state power authorities of the subject of the Russian Federation, the local authorities, the agents of economic management and the population of the region. Taking into consideration the key position of the regional and local budgets within the finances of regional state power authorities and the regional finances in whole, a hierarchy of levels of management of regional finances comprises the state power authorities of the region of the Russian Federation and the local authorities. Theclassification of process regional flows as 'internal - external' as to the region in general and 'incoming - outcoming' as to each participant of financial relations, suggested by the author, sequentially performed identification of the list of regional process financial flows. It lets determine the objective and strategy of their management. As a result management of regional finances is the impact on the internal financial regional flows to increase their volume by means of budgetary financial flows management with splitting up the competences on the levels of regional budgetary system.

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