Legal Regulations of Public Finances and Financial Independence of the State

Abstract

Financial regulations contained in the Constitution and laws are important for creating the position and independence of the state. They can be used to conduct state policy, including financial policy. The position of the state – from the side of public finances – determine financial regulations regarding: own currency of a given country, position and powers of the central bank, state budget and state authorities’ powers to set the budget act, public debt (limits and structure of public debt), the state’s own business in the basic fields of social, economic, technical, and banking infrastructure.