This article will explain to you what financial law is, its branches, sources, and principles, also why it is important in the management of the state.
What is finance law?
Financial law is the branch of public law that examines and regulates the financial activity of the state, i. H. the set of activities that make it possible to generate income from capital and expenses to meet various collective needs (e.g., the various existing public institutions.
This discipline. The financial activity of the state (also called public finances) necessarily leads to several legal relationships between its institutions (i.e., among themselves) and also between the state and (private) persons who are the subject of the investigation. This can happen in two types of situations:
When the state is actively involved, it has a role in the economy through tax collection, direct intervention, etc. Your primary tool for doing this is spending.
When the state participates passively, when it intervenes indirectly in the economy, through credits, exemptions, etc., your primary tool for doing this is the tribute.
Branches of financial law
Financial law is divided into the following subdivisions or branches:
Focused on the area of taxes and government tax collection as well as their exemption and tariff policy.
Public property rights
Focuses on the area, as the name suggests, the management of state assets, i. H. the management of public property that belongs to everyone.
Focuses on the rules that govern the issuing of money and the management of public credit.
Focuses on the way the state plans, constitutes and manages its budget.
Sources of financial law
Financial law has two differentiated sources:
The state constitution
The Magna Carta and the other internal standards of a country form the legal and legal framework that regulates financial matters.
Both the administration and individuals can refer. Of particular importance are the decisions of the Constitutional Court, which is responsible for interpreting these norms for their application to real concrete situations.
Likewise, the international treaties that the various states sign to define a common financial strategy (in particular tariffs) of mutual, regional, or global scope are another source of financial law. These contracts are signed in contemporaneity.
where economic activities are carried out remotely (e.g., via the Internet) that require agreements on taxes, levies, and exemptions.
Principles of financial law
Finance law should not confuse with finance. The latter has a much broader field than this area of law, which focuses on public finance activity.
It ensures that public spending (the money the state invests in public works, subsidies, etc.) and general revenue (the money the state earns through taxes and state-owned companies) maintain a balance that allows the state to act and guarantees its constancy over time.
Importance of finance law
Financial law is fundamental to the administration of the state. First and foremost, it regulates the state’s economic relations with third parties or between its various institutions.
In addition, it has a direct impact on the composition of the state budget, as well as the management of state assets. Hence, it is much more than just a set of administrative rules: it is a legal tool require for the proper public administration of a nation.
Review What is Financial Law and its Branches?.