The author discusses his financial affairs sphere, looking at this issue under a double aspect: analysis of the financial relations sphere and analyzing the financial activity sphere. Analysis of the financial relations sphere is made on the basis of foufinancial sphere, distribution operations, financial operations, transfer, needs.

Bota Anton Florin

English

Research Papers in Economics

84 
 
A FEW CONSIDERATIONS REGARDING THE SPHERE OF FINANCIAL 
RELATIONS  
 
Bo a Anton-Florin  
University  of  Piteşti  Faculty  of  Economics  Science  Piteşti,  str.Republicii  nr.,  RO,  Tel/Fax  – 
0248223464, Prodean. e-mail: bota_anton.florin@yahoo.com telephone: 0740.09.29.30 
 
The author discusses his financial affairs sphere, looking at this issue under a double aspect: analysis of 
the  financial  relations  sphere  and    analyzing  the  financial  activity  sphere.  Analysis  of  the  financial 
relations sphere is made on the basis of four criteria, namely: the existence of the distribution relationship, 
the financial relationships as money relationships, a value basis; nature and conditions of transfer; the 
way  needs  are  satisfied.  In  the  sphere  of  business  financial  analysis,  are  used  three  areas:  the 
programming and planning, the financial and business performance analysis and control.  
 
Keywords: financial sphere, distribution operations, financial operations, transfer, needs. 
JEL code: B00 – General. 
 
1.The sphere of financial relationships  
Financial  relationships  are  relationships  of  individual  human  nature  in  time  between  the 
multitude of human relationships, being part of the economy overall. On the other hand both 
financial relations and economic relations are social relations.  
Finance science devoted some specific criteria (conditions) which delimits financial relationships 
and other types of relationships.  
These criteria are
63 :  
I. The existing distribution relationships  
II. The monetary values of distribution  
III. The nature and conditions of transfer  
IV. The way needs are satisfied  
 
I. The first criteria - Finance as  distribution operations  
Under  this  criteria,  as  well  as  economic  class,  social  relationships  are  finance-economic 
distribution of a part of G.D.P. to meet social needs. But the relations of distribution are more 
comprehensive than financial relationships because:  
a) relations of distribution are presented in the form of both monetary as well as natural, while 
financial relationships mandatory dress monetary form. But not all relationships are funds and 
financial relations.  
b) distribution is formed as financial income (for the shares of public and private) and non-
financial income (personal consumption purposes)  
About financial relationships we can only speak with the general form of value transfer.  
 
II. The second criteria - Finance  as financial operations  
Type monetary transfer is a mandatory financial relation, which are financial relationships. But 
money is the sphere of relations wider scope than financial relationships. In other words, not all 
relationships are funds and financial relations.  
 
III. The third criteria - the nature and conditions of transfer – practically limits  Financial 
reports itself in financial relationships.  
Thus, for a monetary operation belong to finance, it must meet mandatory and cumulative three 
conditions
64:  
                                                       
63 I. D. Morar. – „Public Finance”, University of Oradea Publishing House, 2004, page 14 85 
 
  1. to have a instant transfer of resources and purchasing power  
  2.the  transfer  must  be  done  without  binding  or  without  immediate  equivalent  but 
  may  take  as  definitive  and  free  or  on  a  temporary  basis,  repayable  and  payment  of 
interest.  
  3. the resources to finance actions aimed at public or private business.  
Express indication of the nature and conditions of transfer has a double utility:  
  a) primarily features enable a definitive formulation of financial operations, without the 
transfer being equivalent or without immediate equivalent generates changes in partners assets, in 
terms of enhancing the customer and reduce it to the payer.  
  b)  secondly,  to  specify  the  nature  and  conditions  of  transfer  is  a  basic  criterion  for 
analyzing the structure of finance, can delimit them in: finance itself; credit, the financial market, 
insurance and social protection, insurance of goods, persons and responsibility civil, business 
finance,  international  finance,  as  the  transfer  is  final  and  charge  or  on  a  temporary  basis, 
repayable with interest, etc..  
Therefore, transfer - in general - and the financial nature - in particular - is without equal and 
without immediate equivalent. Taxes, subsidies and other transfers without equivalent, usually 
from  taxpayers  to  the  state  are  final  and  non-transfer  relation  under  the  law  and  based  on 
documents generating obligations (drawing tax role).  
Permanent transfer, and without immediate benefits, grant represents financial relationship itself 
(in effect, restricted finances). 
Transfer value can be done  temporarily, value refund will be mandatory, and are accompanied 
by payment of interest (in case of credit) or voluntary repayment became compulsory only in the 
event of a random phenomenon (the case of relations of property insurance, people and civil 
liability).  
Such financial operations occur
65:  
-  Between  banks  and  their  customers  with  the  opportunity  of  attracting  funds  temporarily 
available resources, and the provision and reimbursement of loans;  
- Between owners and the beneficiars of  money through financial market;  
- Between the insurance institutions and their customers, at the collection of insurance premiums 
and payment of damages and sums insured;  
- Between participants from different forms of insurance and social protection and institutions 
that administer such funds, at the collection of contributions and payment allowances payable to 
the beneficiaries, etc..  
 
IV. A fourth criterion - the kind needs satisfied  
Nature and conditions of transfer depends mainly on whether needs to be covered
66.  
Needs are satisfied by the public - as social needs, general level and at the company private - 
needs to own businesses.  
Social needs, materialized in the financing needs of different social structures and objectives are 
important public needs. General public services, and other elements of the public sector should be 
maintained on the public effort.  
Usually  needs  financing  of  economic  agents  is  due  to  meet  private  finance    but  sometimes 
finance can participate in public funding (eg subsidies)
67.  
Depending on how satisfied the needs, financial practice devoted two types of transfer:  
                                                                                                                                                               
64 C. I. Tulai, “Public Finance and Fiscality”, “Casa Căr ii de Ştiin ă” Publishing House, Cluj-Napoca, 2003,page 19-
22. 
65 C. I. Tulai, op.cit., page 19-22. 
66 I.D. Morar, op. cit. page 16. 
67 C.I. Tulai, op. cit. page 21. 86 
 
  a) the transfer for free and finally, when resources are intended to meet ongoing needs 
and support consumption permanently. In this case the funds are committed, directed towards 
public institutions and private entrepreneurs in certain circumstances subsidized by the state.  
  b) transfer on a temporary basis, repayable with interest and, when needs are temporary. 
In this case involved resources are directed towards applicants of credit loan.  
From another perspective, the transfer may be required (if the payment of taxes) and voluntary (if 
optional insurance).  
Regardless of the nature and terms of transfer, in all these cases are financial reports, not because 
we are dealing with an equivalent or immediate benefits.  
Therefore, financial relationships occur as a result of the transfer of value and power of buying 
up funds in the economy or from these funds to various beneficiaries, through the transfer of 
money made without benefits (equivalent) and direct and immediate as grant or under repayable - 
in some cases - in order to meet public needs and / or private.  
Synthetic, in the financial relationships we include:  
  a) relations which express a compulsory transfer of money resources (and   therefore 
the value of purchasing power) without equivalent (benefits) directly and   immediately  and 
for non-refundable. These are classic financial relationships or   relationships  in  the  financial 
sense or restricted public finances. They find their   reflection  in  the  state  budget,  budget 
social insurance state or local budgets in   some extra funds are defined in taxes and fees, 
including fees paid to social   insurance  and  health  insurance,  made  by  taxpayers,  which  is 
feeding public funds.   The purpose of public finances is generated from the needs of society.  
  b)  relations  expressing  the  transfer  of  value  and  power  of  compulsory  purchase  in 
  the form of money over a fixed period in the form of guarantees (material) or in   the  form 
of loan funds for which interest is due - if the credit relations -  are under   repayable  law 
(including public credit).  
  c)  relations  expressing  the  transfer  of  value  and  power  of  voluntary  or  compulsory 
  purchase  if  necessary,  without  direct  and  immediate  benefits,  but  with  possibility 
  of a subsequent benefits, in the event of a random phenomenon.  
  Examples:  insurance  relationships  of  goods,  persons  and  civil  liability  and 
  compensation. 
  d) relationships that occur in the formation and distribution of funds to money   available 
to enterprises, for economic activity and their development,  
  on account of his own income, the bank loans, the issuance of bonds, the sale of  
  social  parts  (or  shares).  These  relationships  are  called  finance  financial  enterprises 
  (or finances of company) and designed to achieve profits in the private  entrepreneur.  
In conclusion, financial relationships described in all four points, public finance (pet. a) credit 
relationships  (pet.  b)  insurance  relationships  (pet.  c)  and  the  finance  of  company  (pet.  d) 
financial relationships together form in the broad sense.  
In  case  the  movement  of  resources  between  partners  is  done  on  a  commercial  basis,  with 
equivalent or benefits, we are dealing with money relationships, which are not of financial nature. 
They  do  not  belong  to  either  distribution  or  serve  as  personal  consumption.  Appropriate 
operations for sale - purchase, payment of salaries, of works or services performed, etc..  
Even if a series of operations have money financial nature, they have a close connection with 
finance, representing as appropriate, be prerequisites for future financial operations, or the final 
effects of prior financial transactions, or use by spending itself of resources allocated of financial 
funds. Here are several examples of this regard
68:  
• financial operations, premises for future financial transactions:  
                                                       
68 C.I. Tulai, op.cit. page. 22. 87 
 
  -Surgery for sale - purchase, payment for finishing the goods, requires financial payments 
such as spilling taxes, payment of dividends, repayment of loans, interest payments, etc.. Or non-
financial operations such as payment of goods purchased, pay, payments for services; etc..  
  -Operation of the payment of wages, non-financial in nature leads to the typical financial 
payments:  taxes  on  wages,  contributing  to  fund  unemployment  or  supplementary  pension 
insurance and contribution to Mandatory health.  
  -Succession and donations from individuals have no financial nature but are accompanied 
by the obligation for payment of taxes.  
• financial transactions that give finality to prior financial transactions. In this situation are 
included, especially in operations caused by use or spending itself acquired resources of their 
beneficiaries, for example:  
  -Purchase of machinery, equipment, facilities investment, amounts due from associates 
captured;  
  -Pay for current production, due to borrowing from banks;  
  -Pay loans from the public budget allocated from the budget;  
  -Payment of pensions, unemployment aid, sickness allowances, maternity, etc..  
It may be noted that there are situations in which operations have the same type or financial 
nature,  in  relation  to  the  destination  resource  or  quality  of  such  beneficiary.  Appropriate 
donations  for  the  purpose  of  public  utility  and  the  benefit  of  individuals,  the  payment  of 
insurance premiums, and collection of damages or sums insured loans granted to state and those 
of individuals, etc..  
It is also mention the case of exceptional charges. Taxes are an exception to the principle of free 
and finally transfer (specific duties), the transfer of title and return time (if credit) and whose 
transfer to permanent or refund is conditioned on random factors (insurance). In the case of taxes, 
the money transfer means benefits. However, tax is included in financial operations, because the 
transfer is done by state or local organizations, in order to meet public needs.  
Moreover  the  correlation  of  financial  relationships  with  non-financial,  financial  bodies  are 
concerned about progress in the best conditions of all money transactions. Therefore, the scope of 
financial activity is greater than the scope of financial operations, or in other words, the sphere of 
finance  is  more  narrow  than  the  scope  of  financial  relationships,  in  the  sense  that  not  all 
relationships are funds and financial, but only those relationships which express money transfer 
value , assuming it is binding and transfer of purchasing power, producing in such a change in the 
size and not just a change in the forms.  
Changing the forms (in the form of “merchandise” in the form of “money” or vice versa), takes 
place  in  the  production  and  trade  and  is  not  part  of  the  sphere  of  finance,  since  financial 
relationships that generate leads only to changing the shape and value not changing the size of a 
person who has a physical or juridical person.  
In conclusion, financial relationships are money transfer permanently and without direct and 
immediate needs in terms of general satisfaction, and sometimes collective own businesses. This 
is the sphere of financial relations and the subject of finance economic class.  
Public finance division relations as the monetary part of the gross domestic product to the state 
to cover public needs.  
Private finance are relationships in the form of monetary allocation of a part of gross domestic 
product at businesses, in order to realize profits in their task.  
 
2. Financial sphere activity  
Financial activity represents all operations performed by financial institutions and specialized 
agencies  in  connection  with  developing  forecasts,  plans,  financial  budgets  and  programs, 
financial execution and financial control.  88 
 
Object of economic activity differ in relation to the level at which it unfolds
69:  
• at the macro level and mezzo-economic level, forecasts are developed in extensive programs, 
using models to optimize options, aims monetary financially mechanism functioning as a whole;  
• micro-level (base level units) programs are developed, plans and budgets a little complexity, 
and the most intense activity is related to the financial execution.  
Financial scope of activity has three components, namely
70:  
1. The programming and planning, which includes the operations of making plans, programs and 
financial performance forecasts  of  future  financial  flows.  This activity  is  materialized in  the 
programs, plans, budgets - such as budget revenues and expenditures, the state budget, special 
funds, social insurance budget, financing plans, programs, etc..  
2. Financial activity execution, which includes the operations of receipts and payments necessary 
in financial activity. Revenue collection, preservation and making their payments operations are 
called treasury operations. An important part of execution is the execution of financial budget, 
which includes two parts:  
- the Execution of revenue, which materialized in cashing operations, tracking revenue collection 
and  
- the Execution of expenditure, which provides operations to pay expenses on the budget.  
Treasury notion that has multiple meanings
71:  
a) it represents the storage and administration of treasury, consisting of: the income state reserves 
of precious metals and precious stones, foreign currencies, currency, debt of state;  
b) the execution of the house of the state budget and the institution that creates this execution;  
c) treasury operations of economic agents, operations that are related to the execution of budget 
revenue and expenditure, with an attempt of synchronization of money flows - financial and non-
financial  -  in  order  to  avoid  situations  and  lack  of  availability  and  financial  blockade,  the 
bankruptcy and insolvency. How in practice can not be timing perfect, often appear pluses or 
goals of the house. Company Treasurer role is just to prevent gaps and to mobilize the cheapest 
resources to cover that, respectively, to find the most profitable investments available resources 
for short and long term, so that cash will increase the company.  
 
3. Activities include analysis and control operations to synthesize the results of the execution of 
their financial and valuation in order to use the results of this activity, and financial control of 
operations performed at the level of the firm, and company level through specialized organs and 
conditions established by law .  
Scope along with the financial relations field financial activity are represented by the area of 
finance.  
 
3. SELECTIVE BIBLIOGRAPHY  
1. Anton Florin Bo a - Finance and Contemporary Society, vol I, “Milestones of Integration: 
Public Finance”, Paralela 45 Publishing House, Piteşti, 2002. 
2. Condor I. - Fiscal and Financial Law, Tribuna Economică Publishing House, Bucuresti, 1996. 
3. Drăcea Marcel,  Berceanu Dorel Public Finance, Sitech Publishing House, Craiova, 2005. 
4.  Lăzureanu  M.  -  Exchange  of  scientific  and  financial  legislation,  M.  Bădeanu  Publishing, 
Bucharest, 1942. 
5. Morar loan Dan - Public Finance, University of Oradea Publishing House, 2004. 
6.  Manolescu  Gheorghe  -  Budget  -  Financial  and  economic  approach,  Economic  Publishing 
House, Bucharest, 1997. 
                                                       
69 C.I.Tulai, op.cit. page 23. 
70 I.D. Morar, op. cit. page 17-18. 
71  C.I.Tulai,op.cit., page 23. 89 
 
7. Tulai Constantin I. - Public Finance and Taxation Publishing House Book of Science, Cluj-
Napoca, 2003. 
8. Văcărel I. and parteners - “Public Finance”, E.D.P - R.A., Bucharest, 2007, The sixth Editione. 
9. Magazine “Dreptul” nr.8/1995 - Liviu Giurgiu., Considerations on the public domain.  
10. *** The Romanian Constitution, revised form, published in MOR no. 767/31.10.2003.  
11. *** Law nr.500 of 11 July 2002 on public finances, published in the Official Gazette no. 597 
of 13.08.2002, with subsequent modifications and additions.  
12. *** Law. 273 of 29 June 2006 on local public finances, published in Public Monitor  
no. 618 of 18.7.2006, with subsequent modifications and additions.  
13. *** Law. 213/14.09.1998 on public property and the basis thereof published in the Official 
Gazette no. 448 of 24.09.1998. 

213/14.09.1998 on public property and the basis thereof published in the Official Gazette no.

and parteners - “Public Finance”,

Berceanu Dorel Public Finance,

Bo a - Finance and Contemporary Society, vol I, “Milestones of Integration: Public Finance”,

Exchange of scientific and financial legislation, M. Bădeanu Publishing,

Financial and economic approach, Economic Publishing House,

on local public finances, published in Public Monitor no. 618 of 18.7.2006, with subsequent modifications and additions.

on public finances, published in the Official Gazette no. 597 of 13.08.2002, with subsequent modifications and additions.

Public Finance and Taxation Publishing House Book of Science,

The Romanian Constitution, revised form,

A FEW CONSIDERATIONS REGARDING THE SPHERE OF FINANCIAL RELATIONS

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A FEW CONSIDERATIONS REGARDING THE SPHERE OF FINANCIAL RELATIONS

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