Public Finance Read and translate the following text

PUBLIC FINANCE

Read and translate the following text:

Finance is the provision of money at the time when it is needed. It is a system of monetary relations leading to formation, distribution and use of money in the process of its turnover between economic entities.

The financial system is the network of institutions through which firms, households and units of government get the funds they need and put surplus funds to work.

Savers and borrowers are connected by financial intermediaries including banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

Finance in an economic system comprises two parts: public finance and finance of economic entities.

Public finance is the provision of money by the community through taxes to be spent by national and local government authorities on projects of national and local benefit. It is a collective term for the financial flows and also the financial institutions of the public sector.

Public finance has the following four functions: a) the provision of essential services; b) the encouragement or control of particular sectors of the economy; c) the implementation of social policy in respect of social services, and d) the encouragement of the growth of economy as a whole.

The major instrument of any financial system is the budget. In a market-oriented economy the budget is the most important tool for achieving national priorities and goals through the allocation and distribution of resources, and the maintenance of a stable macroeconomic environment.

The budget is an estimate of national revenue and expenditure for the ensuing fiscal year. When expenditure exceeds the revenue the budget has a deficit.

Revenue and expenditure forecasting is the most fundamental step in the process of budget preparation. Adequate planning of recurrent and capital expenditure depends critically on an accurate forecast of revenue availability. The determination of the expected overall deficit in the public sector and therefore the macroeconomic impact of fiscal policy requires accurate forecast of tax collection аnd expenditures. Public finance is a sum of budgets, extrabudgetary and reserve funds. An accurate revenue forecast is the most critical for national government but it is also important for all subnational governments because over the last several years they have worked with increasingly autonomous budgets.

Budget preparation for the national government involves a number of institutions. The Ministry of Finance (MoF) is the central coordinating institution in charge of compiling and presenting the budget. It has major inputs from ministries in various sectors of the economy and the state tax bodies.

1. Find in the text English equivalents for the following Russian phrases.

предоставление финансовых средств; система денежных отношений;  создание, распределение  и  использование денежных средств; оборот денежных средств между экономическими субъектами; сеть организаций; заставить излишние денежные средства работать; быть связанными финансовыми посредниками; включать две составные части; осуществление социальной политики; основной инструмент финансовой системы; расчет доходов и расходов; подготовка бюджета; планирование текущих и капитальных расходов; макроэкономическое воздействие на  бюджетно-налоговую политику; работать в условиях все увеличивающейся автономии бюджетов; в подготовку бюджета вовлечен целый ряд организаций; отвечать за составление и представление бюджета.

2.  Mark the sentences with T if they are true and with F if they are false.

1. Finance in an economic system comprises three parts: firms, households and units of government.

2. Savers and borrowers are connected by banks, thrift institutions, insurance companies, pension funds, mutual funds, and finance companies.

3. In a market-oriented economy the budget is the most important tool for an unstable macroeconomic environment.

4. The determination of the expected overall deficit requires accurate forecast of tax collection аnd expenditures.

5. Budget preparation for the national government involves only one institution: the Ministry of Finance.

3. Match heads and tails.

1. Finance is the provision of money	A. from ministries in various sectors of the economy and the state tax bodies.
2. When expenditure exceeds the revenue	B. an accurate forecast of revenue availability.
3. Adequate planning of recurrent and capital expenditure depends critically on	C. the budget has a deficit.
4. An accurate revenue forecast is most critical for all subnational governments	D. at the time when it is needed.
5. The Ministry of Finance has major inputs	E. because over the last several years they have worked with increasingly autonomous budgets.

4. Match the definitions to the key words of the unit.

1. finance	A. an estimate of national revenue and expenditure for the ensuing fiscal year
2. public finance	B. a system of monetary relations leading to formation, distribution and use of money in the process of its turnover between economic entities
3. budget	C. an amount of money spent
4. revenue	D. the provision of money by the community through taxes to be spent on projects of national and local benefit
5. expenditure	E. the income accruing from taxation to a government during a specified period of time, usually a year

5. Fill each gap with a suitable word from the box.

coin	known	invented	handle
forms	small	using	big
used	objects	money	instruments
called	assets

What Is Money?

Money is an asset that serves as a means of payment, a store of value, and a unit of account. Money was _____ a long time ago.

Gold and silver coins are the best _____ form of money. They have the longest history and have been more widely accepted as payment than any other form of commodity money.

The popularity and universal acceptability of _____ money is easy to understand. Coins are solid, attractive, hard-wearing and easy to ______. In addition to the qualities mentioned above, coins can be produced in _____ and _____ denominations.

Societies _______ gold and silver have used other _______ as money, including shells, beads and pelts. Anything can serve as _______ that is easily recognized, widely accepted, and not easily copied. Gold, shells, and pelts are no longer used as money in the majority of countries.

Today two kinds of financial _______ serve as money: currency (coins and bills) and checking deposits at banks and thrift institutions.

Currency plus checking deposits at banks and thrifts is often _______ M1. The money that includes balances in money market funds, savings deposits in banks and thrifts and certain other liquid _______ is called M2.

Along with coins, paper currency, and checking deposits, "plastic money" is widely _______ today. "Plastic money" comes in two _______-credit cards and debit cards.