We explain what financial law is, its branches, sources and principles. Also, why it is important in the management of the State.
What is financial law?
Financial law It is the branch of public law that studies and regulates the financial activity of the State that is, the set of activities that allow obtaining capital income and making expenses to satisfy various collective needs (such as public services), through the operation of the different existing public organizations.
The financial activity of the State (also called public finance) necessarily produces a set of legal relationships between its organizations (that is, between themselves), and also between the State and individuals (private), which are the object of study. of this discipline. This can occur in two types of situations:
- When the State actively participates. That is, when it plays a role in the economy through the collection of taxes, direct intervention, etc. Your main tool for this is spending.
- When the State participates passively. That is, when it intervenes indirectly in the economy, through loans, exemptions, etc. Its main tool for this is tribute.
Branches of financial law
Financial law is classified into the following subdivisions or branches:
- Tax law Focused on the area of taxes and the collection of state taxes, as well as their exemption and tariff policies.
- Public property law. Focused on the area of, as its name indicates, the management of the State's assets, that is, the administration of public assets, which are owned by everyone.
- Monetary right. Focused on the rules that regulate monetary issuance and the management of public credit.
- Budget law. Focused on the way the State plans, constitutes and manages its budget.
Sources of financial law
Financial law has two clearly differentiated sources:
- The National Constitution The Magna Carta and the other internal rules of a country provide the legal and juridical framework that regulates financial matters and that can be invoked by both the Administration and individuals. In this, the decisions of the Constitutional Court, in charge of interpreting these rules for their application to specific real situations, are of particular importance.
- International treaties Similarly, the international treaties that different States sign to establish a common financial strategy (especially tariffs) of mutual, regional or global scope, are another source of financial law. These treaties are particularly important in contemporary times, in which there are remote economic activities (for example, through the Internet) that require agreements regarding taxes, contributions and exemptions.
Principles of financial law
Financial law should not be confused with the science of finance. The latter has a much broader field than that of this legal branch, focused on the organization of public financial activity.
It ensures that public spending (the money that the State invests in public works, subsidies, etc.), and public income (the money that the State collects through taxes and state-owned companies) keep a balance that allows the State to act and guarantees its persistence over time.
Importance of financial law
Financial law is fundamental for the management of the State. First of all, regulates the economic ties of the State with third parties or between its different institutions.
Besides, directly affects the composition of the National Budget as well as the administration of the nation's heritage. Therefore, it is much more than a set of administrative rules: it is a necessary legal tool for the proper public management of any nation.
Continue with: Economic law
References
- “Financial law” on Wikipedia.
- “Financial Law” in Legal Encyclopedia.
- “Financial Law” in Legal Dictionary.
- “Topic 1. Financial law: concept and content” at the University of Las Palmas de Gran Canaria (Spain).
- “Financial law” (video) at Virtual University of the State of Guanajuato (Mexico).
