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IMPORTANCE OF FINANCIAL SECURITY IN FINANCIAL GLOBALIZATION
N.K. Ismailova, senior lecturer Tashkent institute of finance (Uzbekistan, Tashkent)
DOI: 10.24411/2411-0450-2019-10567
Abstract. This article focuses on the socio-economic nature of fiscal security. The author examines the importance of fiscal security in the economy. Describes the basic tasks associated with ensuring fiscal security in the Republic of Uzbekistan at the present time.
Keywords: economic security, financial security, fiscal security, tax burden, budget deficit, tax debt, fiscal security indicators.
The globalization of world economy, the integration of countries and the strengthening of international specialization give each national economy the task of increasing productivity, reducing product costs and taking a worthy place in the global market.
From the years of independence, one of the challenges facing the Republic of Uzbekistan is the issue of providing socio-economic and political stability of the country. Financial security is a key component of economic security and the development of financial relations is a key factor influencing the harmonization and development of national economy sectors. The availability of effective methods of financial security in Uzbekistan will help to address tasks related to the state's economic and financial policies.
Nowadays, the government of our country is implementing wide-ranging reforms to ensure economic security in Uzbekistan. An important factor in ensuring economic security is financial security and the provision of this sector plays an important role in shaping the country's economic system.
Financial security is a key component of the country's economic security, which creates the necessary conditions for socioeconomic and financial independence, stability and development of the country, as well as overcoming threats to the financial sector.
Financial security is:
An important component of the economic security of the state, based on the independence, effectiveness and competitiveness of the state in the finance and credit sphere, reflects the essence of its status and indicators system, adequate liquidity of assets, internal and ex-
ternal debt balance, the availability of necessary monetary and gold reserves;
The degree of protection of micro and macro financial interests, financial relations;
The ability to withstand internal and external negative effects of customs, tariff, finance, currency, budget, tax, monetary, accounting, investment, banking and funds systems. It characterizes the prevention of external financial threats, the effective functioning of the national economy, and economic growth.
World experience has shown that the power and national security of the state are characterized primarily by the economy of the country and its financial system. Therefore, the study of financial security in terms of national security of Uzbekistan and its national interests is one of the most important tasks at the time when its financial system is being formed. Financial security - a financial system that its descriptive indicators should not exceed the established norms, ensuring the functioning of the economy in accordance with the objectives of economic policy.
Traditional view that the main task of the economy is only for profit, is the cause of many controversy, especially after the global financial-economic crisis. Instead, concepts of capital security and its protection from unreasonable threats are being used.
In practical terms, all aspects of national security are linked to financial security. At the same time, financial security is also significantly dependent on other sectors of national security. Mutually dependent and interdependent study of various aspects of national
security allows preventing and eliminating threats to national interests of the country.
Simply explaining the dependence of national security on financial security, the lack of financial resources threatens national security by undermining any or all of the sectors of the economy. Threats in other national security networks also have a negative impact on financial security. For example, when the country's defenses need financing, huge amounts of money will be spent, and in case of anxiety, financial resources from the country will begin to "escape."
In the modern world, ensuring financial security is crucial to the rapid growth of the economy. Providing financial security reflects an anti-crisis policy as part of a state policy. At the same time, fiscal policy plays an important role. The stability of fiscal policy is important as a factor of creating necessary conditions for ensuring financial security and its formation.
At present, the level of security of the fiscal system, the monetary system, the banking system and the stock markets, as well as their respective sectors, are assessed on the basis of the following indicators:
The level of tax burden relative to GDP should not exceed 30%. The government widely uses budget revenues to implement its socio-economic policy. On the one hand, wisely carrying out tax policy provides budget revenue security. On the other hand, the tax policy also determines the amount of tax burden on producers in the country. Therefore, it is crucial that the tax policy, which plays a central role in maintaining budget revenues, be properly implemented. In this case, it is necessary to select the rate and amount of taxes at the optimum level to determine the highest point of revenue. The tax burden in our economy has changed dramatically over the past years and has dropped dramatically.
The amount of taxes that have not been paid to the State Budget shall not exceed 5%. Due to the increase in tax debts, annual plans remain unfulfilled, resulting in a fall in solvency. In the same way, it leads to budget deficit. There is a positive tendency related to the reduction of tax debts in recent years. The high share of them is one of the real risks to
financial security. In general, it is necessary to take measures to levy tax debts.
The ratio of the state budget deficit to GDP should not exceed 3%. It is well - known from the world experience that the 3% deficit of the state budget means the inefficiency of the financial system, inadequate state budget revenues, and the lack of good financial mechanisms. If we see the ratio of revenues and expenditures of the state budget of the Republic of Uzbekistan to GDP, the budget execution was completed with the surplus by 2017 due to the steady growth of the economy, in 2018, budget deficit occurred. Considering the budget deficit as a normal phenomenon for the development of the economy, this current macroeconomic situation can be assessed as satisfactory. More than 3% of the deficit is negative and more than 8% is a real threat to the economy. The situation in the country is quite positive: the execution of the state budget ends with a surplus from 2005 to 2017. This is the result of effective economic policy of the republic.
The share of total external debt of the state relative to GDP should not exceed 30%. If the share of external debt exceed 30% relative to GDP, it starts to threaten the economy. Because of external debt, state budget loses huge amount of money, and it increases external dependency. The increase in the external debt to GDP is one of the major factors affecting the global financial crisis.
The volume of foreign-exchange reserve of the country should be equal to the volume of 3-month-import. Foreign-exchange reserve consists of two components: currency reserve and gold reserve. In 2018, the foreign-exchange reserve of Uzbekistan totaled 26,4 billion USD. 3-month-import volume was 4,55 billion USD. Considering above stats, the level of foreign-exchange coverage is normal.
Capital investment should not be below 25% of GDP. Investments are the basis of this economic development, and the greater the number of them means the development of economic relations and the growth of additional production capacities. The situation in Uzbekistan is quite positive and in 2018, it was 26%.
The annual rate of inflation in the state should be less than 5 percent. It is normal for industrialized European countries and the United States to have an average annual inflation rate of 3-4%. For emerging markets, 5% of inflation is the normal zone. In 2018, the inflation rate in Uzbekistan was 18%. Nevertheless, it is forecasted that in the future, inflation in the republic will decrease to 16 percent in 2019, 12 percent in 2020, and 9 percent in 2021.
One of the main objectives of financial security is timely and accurate assessment of the situation. In the study of financial security issues, the indicator system and the limit value-based approach are effective. The point of this approach is that in the financial security system, the establishment of an indicator system in line with the national interests and threats in the sector will allow timely detection of the negative effects of the financial system and the adoption of concrete measures.
Therefore, the level of financial security of the Republic of Uzbekistan is assessed on the basis of indicative system showing that there are shortcomings in the following areas of the financial system of Uzbekistan: lack of correspondence of banking system to international standards, i.e. lack of bank assets relative to GDP and low profitability of majority of banks; the level of inflation in the monetary system and the low level of the economy's monetization level.
The State Economic Security Strategy states that "the stability of the financial system is characterized by the level of budget deficit, the degree of financial flows and accounting relationships, the degree of protection of interests of depositors, the stock market, the decline in foreign and domestic debt
nancial security for business growth". Budget security implies fiscal policy aimed at implementing the national economic interests of the country.
Today, the economies of all countries are closely connected, and the role of economic and financial security is important in ensuring national security. It is enough to point out that as a result of the global financial-economic crisis, all the countries are exposed to its negative effects and a significant decline in the global economy. Many countries have been financially exposed to the effects of its influence on the country's economy, and significant changes have been made in the financial system. The occurrence of such negative consequences has caused all the countries of the world to radically reform the country's financial system. In such a dreadful situation, the role of financial security plays a key role in ensuring the stable growth of Uzbekistan's economy and preventing the collapse of the economic system. At present, all sectors of national security are interconnected, and financial relations play an important role in the interconnection of all economic relations. It should be noted that, in crisis in some sectors of the economy, primarily, the financial system is damaged and its chain linkage entails a negative impact on the entire economy. One of the main objectives of financial security is timely and accurate assessment of the situation. In the study of financial security issues, the indicator system and the limit value-based approach are effective. The point of this approach is that in the financial security system, the establishment of an indicator system in line with the national interests and threats in the sector will allow timely detection of the negative effects of the financial system and the adoption of concrete measures.
and balance of payments, and the level of fi-
References
1. Economic security. Text of lectures. Academy of Public Administration under the President of the Republic of Uzbekistan. 2014.
2. Gaponenko V.F., Margiev Z.V. Ekonomicheskaya i finansovaya bezopasnost kak vajneyshaya funktsiya gosudarstva v sovremennix usloviyax // Vestnik Moskovskogo universiteta MVD Rossii. - 2013.
3. Goreglyad V.P. Byudjet kak finansoviy regulyator ekonomicheskogo razvitiya - M.: Ekonomika, 2005. - p. 256.
ЗНАЧЕНИЕ ФИНАНСОВОЙ БЕЗОПАСНОСТИ В ФИНАНСОВОЙ
ГЛОБАЛИЗАЦИИ
Н.К. Исмаилова, старший преподаватель Ташкентский институт финансов (Узбекистан, г. Ташкент)
Аннотация. Данная статья посвящена социально-экономической сущности бюджетно-налоговой безопасности. Автором рассматривается значение бюджетно-налоговой безопасности в экономике. Описываются базовые задачи связанные с обеспечением бюджетно-налоговой безопасности в Республике Узбекистан в настоящее время.
Ключевые слова: экономическая безопасность, финансовая безопасность, бюджетно-налоговая безопасность, налоговое бремя, бюджетный дефицит, налоговая задолженность, индикаторы бюджетной безопасности.
