FINANCIAL SYSTEM AS A PART OF ECONOMIC DEVELOPMENT

The subject of research are theoretical and practical aspects of the financial system as a component of economic development. The aim of the study is disclosure of the financial system as a component of economic development. Research methods. The paper applied a set of scientific methods and approaches, including systemic, structural, comparative, factorial methods, allowing to implement conceptual integrity of the study. Results of work. The economic nature of the financial system as a component of economic development, which is to use a set of economic relations in the formation of an effective distribution and redistribution of gross domestic product and national income between the individual links, which are defined properly structured system of financial institutions and their relationships with to create appropriate conditions for sustainable economic growth. Determined that in terms of economic reforms is important strengthening the role of the state in regulating social and economic processes, improve the quality of the management of fiscal and monetary system with increased efficiency of coordination. However, financial policy has become more dependent on external economic factors, resulting in further need to improve the financial system. Formation of financial and economic policy, including the regulation of budget revenues and expenditures, intergovernmental relations, budget deficit, public debt, monetary, exchange rate, balance of payments is based on the totality of external factors aimed at improving the investment climate for international capital, the competitiveness of domestic products on world markets. It is reasonable implementation of prudent financial regulation taking into account trends in economic growth, decrease in the share of public debt to gross domestic product and the debt burden on the budget. An important task of the financial system is to ensure optimal redistribution of gross domestic product, financial and economic resources aimed at stimulating the domestic economy. Scope of results of work. The development of the financial system. Financial support for economic development. Conclusions. The financial component of economic development makes a significant impact on the expanded reproduction of society. It is appropriate to further improve the mechanism of fiscal control, in-depth study of the formation of the institutional framework of the financial system, increased efficiency in the implementation of the state policy in the fields of revenue, planning and use of public spending, regulation deficit, public debt and intergovernmental relations. The financial mechanism is an important component of state regulation of the economy, which is aimed at ensuring balanced development of economic and social development. In terms of economic recovery observed strengthening and promoting the role of the state in regulating industrial and financial sector, defined as economic support of entities, a substantial share of funding research projects through the budget, increasing the state's share in the total gross investment , the volume of government contracts. At the present stage of economic development is the realization of an important financial incentive policies aimed at restoring the positive dynamics of economic growth and welfare.