Finance refers to the revenue and expenditure activities of a country or government. It is a country's government choosing a certain form (in kind, labor or currency) to distribute part of the national income to fulfill its functions for the country. Distribution behavior implemented based on needs. Obviously, this definition contains the following elements, or in other words, finance is composed of four major elements: fiscal subject, fiscal object, fiscal form and fiscal purpose

Finance is the government's "financial management policy" . The word "finance" has a second meaning: in a practical sense, it refers to an economic department of the country (or government), that is, the financial department. It is a comprehensive department of the country (or government) that through its revenue and expenditure activities Raise and supply funds and funds to ensure the realization of state (or government) functions. From the perspective of economics, finance is an economic category. As an economic category, finance is an economic behavior with the state as the main body. It is an expenditure activity in which the government concentrates a part of its national income to meet the needs of the public. To achieve the goals of optimizing resource allocation, fair distribution and economic stability and development.

Extended information:

The mechanisms and means of fiscal allocation include:

(1) Determine the reasonable proportion of fiscal revenue to GDP based on the government’s economic functions, so as to achieve Overall efficiency of resource allocation.

(2) Optimize the structure of fiscal expenditures, ensure key expenditures, compress general expenditures, and improve the structural efficiency of resource allocation.

(3) Reasonably arrange the scale and structure of government investment to ensure the country’s key construction.

(4) Drive and promote private investment, attract foreign investment and foreign trade, and increase economic growth rate through government investment, tax policies and financial subsidies.

(5) Improve the efficiency of financial resource allocation itself.

Baidu Encyclopedia-Finance