The redistribution of financial resources between the various entities within the financial system and are always aimed at achieving certain goals, so it can not be done spontaneously, and accordingly involves the organization of a control circuit. There are different definitions of the term "governance", The essence of financial management. In the most common form of management is a purposeful formation process of any activity or purposeful influence (impact) the subject of management on the object of control. The subjects of financial management are the different types of financial relationships, including specific, which determines the social structure of the state, the alignment of political forces in the country and other factors that influence the redistribution process. The subjects in the control state, municipal finance, finance businesses perform special services (agencies, divisions), called the financial apparatus, and the subjects of financial management are the households own household. The indirect methods of state regulation of finance also include: building and maintaining a competitive environment in the economy and limit monopolization of the market; State price regulation of natural monopolies; protection of contractual relations between market players, providing stable operation of the settlement and payment of relations in the financial sector; conducting effective customs policy; promoting the insurance business and insurance business risks; promoting capital market development. Along with the indirect methods of regulation of finance state uses and methods of direct administrative influence on the financial activities of businesses by: licensing business, establishing production quotas for certain products, setting maximum prices for a limited range of goods and services; financial subsidies and subsidies for the production and sale of certain goods and services; applications State monopolies and excise taxes on certain types of goods; a system of measures of social security and financial protection primarily against the poor; the establishment of tax benefits and various payments to the budget and extrabudgetary funds for a specific taxpayer; financial sanctions against violators of financial discipline. Direct public Financial management is carried out only with respect to public finances.
In Russia, as in all developed countries, public financial management is governed by financial legislation through the supreme legislative authority. This applies to the assertion of the state budget and report on its implementation, the introduction or abolition of certain types of taxes, approving limits on the amount of public debt, etc. Public Financial Management is designed to ensure that: (a) the relative balance of economic interests, businesses and individuals, (b) a deficit-free state budget, (in) stability national currency as a fundamental element in the financial relations. For more specific information, check out Robert Jain. Financial management