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Fourth: the financial activity
o The financial activity:
It is a group of the public needs that the state has to satisfy in a certain and stage of the society's development stages.In order to satisfy these needs, the state has to use the expenditure to buy the necessary service, as well and as to establish public projects and operating them whose applying differs from the capitalist states to the socialist states.In addition to the expenditure of the state to help the poor classes which have different shapes such as subsidies, compensations, fines, the public projects profits, the new monetary issuances.
Fourth: the financial activity
• The financial activity:
It is a group of the public needs that the state has to satisfy in a certain and stage of the society's development stages. In order to satisfy these needs, the state has to use the expenditure to buy the necessary service, as well and as to establish public projects and operating them whose applying differs from the capitalist states to the socialist states. In addition to the expenditure of the state to help the poor classes which have different shapes such as subsidies, compensations, fines, the public projects profits, the new monetary issuances.
Meeting the public expenditures with public revenues need from the public authorities to put a specific program for a specific future period of which time which lasts often a year; such program is called "a budget" or "a public budget".
So, we can say that pubic expenditures, public revenues and public budget are the main three subjects for the axis of the financial state ale activity and at the same time they are re the main tools for applying the financial state policy.
• The financial system:
It is defined as a group of elements and relations. These elements are the parts that form the system but the relations link the elements that form the system. As a result, the financial system can be defined as a part of the economic system which is a part of the social system. In fact, the relationship between the financial systems with the economic system is a relation between a part with a whole.
Such relations are very clear as the essence of the economic activity is doing a lot of work using the existing resources under the control of the society to satisfy the individual needs; a part of these public needs is satisfied by the state and its authorities. Thus, the financial system is just a part of the public economic activity, and the quantity of money which represents public expenditures and public revenues is economic quantities which act as a part from a whole that have an exchange relations as follows:
First: the public revenues represent a part of the aggregate economic quantities which are: the national product, the national income and the national expenditure.
Second: the public expenditures add to the economic amounts through the economic quantities by increasing the public expenditure which participate in creating national product and national income.
As a result, the financial activity is not only connected with the public economic activity but it becomes a part of it. Such fact leads to two Important results: one of them deals with submitting the financial tivity of the state to the main concepts of the economic analysis. The second result deals with the coincidence of the financial policy with the economic policy.
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