Finance – Historical category, they appear together with the state and change with them. The essence of Finance, the regularities of their evolution, scope and role in the process of social reproduction are determined nature of the state and its functions. Finances are isolated from the total aggregate monetary relations only in the event of a specific historical background: The first was the following. As a result, the first bourgeois revolutions was significantly limited the power of monarchs. Monarchical regimes have survived, but the heads of state could not unilaterally use and dispose of the treasury. The latter has become a whole- Fund of funds – the budget. The second premise – the formation and use of the budget has become a regular basis. Have any system of public revenues and expenditures with a specific composition, structure and legislative embodiment.

Finally, the third precondition – taxes were levied mainly in cash. Whereas previously the state revenues were formed mainly at the expense of natural and labor taxes dues by the end of xix – early xx century. the share of tax money is already accounted for 80-90% of total revenues. Only at this stage of development of statehood and monetary relations made possible the full distribution created the product in terms of value. Thus, the finance act simultaneously and economic, and historical category: they emerge, evolve, mutate over time.

This process can be divided into smaller least two stages. The first – an undeveloped form of finance. Characteristic features of this stage: non-productive use of funds raised (up to 2 / 3 of the budget spent for military purposes); little regulatory influence budget on the economy, underdeveloped financial system, consisting of nearly one link – the budget. Financial relationships were associated exclusively with the formation and use of the budget. The second phase of development finance, in contrast, is characterized by multi-tier financial system, a high degree of regulatory impact on the economy, a wide variety of financial relations.