Changes Of The Concept Of State Finance And Subjects In Sustainability Context

Abstract

In a face of global financial crisis that is currently shaking the world, the issue what is the role of a state in its finance management and how each state influences, or can influence, its finance is extremely relevant.The objective of this research is to identify whether the contemporary approach to public finance and its subjects is suitable for the effective financial management at a state level in present conditions. In order to reach the objective, the research shall examine how the contemporary approach to finance limits possibilities of its management; form new concept of state finance involving private and public finance; and define how the application of new, broader, social partnership based approach, might change financial relationship between a state, citizens, and companies, and how practical application of this new approach might contribute to financial stability of a state. Practical application of the research results would allow saving 2­4 percent on the interest rates for state loans, create better conditions for the development of state economy, and increase financial sustainability of a state.