Financial law is the set of rules that regulate the financial activity of the State and other public administrations, it organizes the resources of the Public Treasury.
The regulation of financial law is based on two pillars: public revenues and expenditures. Financial activity is that activity to obtain income and its subsequent form of expenditure, always in order to achieve various objectives.
In this case it is the activity of obtaining income and employment of public expenditure. That is to say, of the State and public administrations.
What defines this type of regulation is the end of this financial activity and not the income and expense operations themselves, but the end pursued by these operations. This aim is to achieve the general interest of society.
Characteristics of financial law
The main characteristic notes of financial law are:
- Regulates the public finances. This means that it regulates the procedures for the perception of income and the use of expenses.
- It is public law, since it does not regulate financial activity procedures of private persons (physical or legal), but rather regulates public income and expenses of public administrations.
- It is responsible for the collection, management and distribution of economic resources.
- It is an autonomous branch of public law.
- Financial law is studied together with tax law since the one without the other would not make sense.
Principles of financial law
The basic principles on which this right is based are:
- Principle of reserve of law: Without there being an explicit regulation that constitutes the regulation of collection, management and expenditure, no financial activity considered legal may be undertaken.
- Principle of redistribution of wealth: This principle seeks that the rules of financial law aim to meet all social needs by balancing the development of people.
- Irretroactivity of sanctions: This principle in those rights that establish sanctions for private persons is essential. It means that, if a rule regulates a penalty, for example, of 100 euros for not paying the annual traffic tax and it will come into force in 2020, people who did not pay this tax in 2018 will not be able to be fined for this new tax. regulation.
Financial entitlement is based on income and expenses:
From financial law there are three large legal bodies:
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