Positive Aspects of the US Financial System
In the US financial sphere, one can find a lot of players, starting from traditional banks and ending with Payday Depot and similar financial institutions. Let’s see how they are controlled through executive power and what is positive about the system as a whole.
The bodies of executive power, which are endowed with the greatest powers in the area of federal finances, include:
- Administrative-budgetary administration is a federal body within the Administration of the President of the USA, which is responsible for drafting the federal budget and its implementation in terms of expenditures. This body was created back in 1921. It helps the President in preparing the budget and formulating the financial program of the government, exercises control over the implementation of the budget; makes plans to improve the administration, and gives advice to executive departments and agencies regarding the improvement of their structure and work order, etc.
- The Ministry of Finance (Treasury) of the USA is a federal body in the composition of the Administration of the President of the United States, whose powers include the execution of the federal budget according to revenues, management of the public debt, and control in the area of the budget process.
- The Council of Economic Consultants is an advisory body created in 1946 under the Administration of the President of the USA, which helps to form the basic principles of economic policies. The Council of Economic Consultants makes recommendations to the president on economic issues and prepares economic reports for the President of Congress.
An important and specific feature of the management of the financial sphere in the USA is that the authorities of individual states have a significant amount of authority, which allows them to independently solve financial issues in the middle of the state and participate in the management of the general federal financial system.
The key positive aspects of the management of the financial system in the USA, which must be paid attention to in the context of improving the administrative and legal mechanism for managing the financial sphere of other countries, include the following:
- Quite detailed definition at the constitutional level of the powers of the highest legislative body of the state (the US Congress) in the financial sphere.
- The active role of the Head of State — the President — in the formation of the national budget and the implementation of control over its use (expenditure).
- Significant autonomy of regional authorities in terms of the formation and implementation of financial policy in the territory under their jurisdiction.
Of course, the features of the state mechanism for managing the financial sphere in the USA are unlikely to be implemented in their pure form, in particular, due to the difference between the territorial structures of various countries. However, this does not prevent the possibility of strengthening the controlling role of the President in terms of the legality, efficiency, and expediency of the use of budget funds, as well as increasing the autonomy of regional authorities in solving financial issues at the local level.