ДО ПРОБЛЕМИ ФОРМУВАННЯ ФІНАНСОВОЇ ПОЛІТИКИ СТАЛОГО РОЗВИТКУ УКРАЇНИ

The article defines, the need to improve the system of public financial control at the regional level is due to the concentration of financial and material resources of a particular area for more efficient use. Definitely at the current stage of development of financial control, scientists pay much attention to providing recommendations for reforming financial control over the implementation of local budgets, but they are diverse, which complicates the comprehensive improvement of the system of financial control over the implementation of local budgets. The need to increase the efficiency of the system of financial control over the implementation of local budgets in Ukraine, the need to revise many theoretical and practical provisions requires research and development of scientifically sound recommendations for further development of the control system at the local level. The purpose of the article is to identify problems of inefficiency of the state financial control of local budgets, develop directions for its reform in the context of organizational, regulatory, methodological support and justify the need for public monitoring in the budget process as a tool for civil society and local authorities. The methodological basis of the study are general philosophical and general scientific methods of cognition of phenomena and processes in the system of financial control. In the process of studying the theoretical aspects of control, a systematic approach was used to form a system of financial control over the implementation of local budgets.The directions of reforming the system of financial control over the implementation of local budgets in terms of elements of the support subsystem of the financial control system are proposed, namely: improvement of regulatory, organizational, personnel, methodological and information support. The practical implementation of the proposed measures will improve the quality of budget process management, the formation and development of the system of municipal financial control, increase the efficiency and effectiveness of local governments and other participants in the budget process.

The article explores the theoretical, methodological and applied aspects of the organization of state financial control in order to ensure sustainable economic development of Ukraine. A comprehensive model of the organization of state financial control has been formed, focused on ensuring sustainable economic development. The goals, directions, strategic and operational tasks of state financial control are determined to ensure stability, efficiency and systematic provision of budget services. Among the main tasks of reform system of state internal financial control the creation of a single legal field for development is indicated system of state internal financial control as an integral part of public administration and input relevant changes to the legislation. The relationship between public financial control and financial policy should be traced in determining the types of control. In our opinion, the division of financial policy into components is a prerequisite emergence of certain types of public financial control. In other words, each component of financial policy must have its own separate instrument, ie the type of public financial control. Coherence of financial policy components and types of control is necessary to build an effective and efficient structure of public administration bodies with a clear definition of the limits of their influence and the degree of responsibility. The necessity of institutional reform of state financial control in Ukraine is substantiated. The methodological foundations of state financial control for Ukraine are systematized based on the experience of the United States of America. A hypothesis has been put forward that the effectiveness of budgetary services at the regional (local) level is a criterion for the effectiveness of the use of state financial resources. The types of efficiency of budgetary services are defined with the aim of managing certain aspects of the provision of budgetary services, among which the effectiveness of the external and internal environment of state financial control is highlighted, as well as such types of efficiency as budgetary, social, commercial, public and so on. It is noted about the need to reform the existing model of state financial control in Ukraine and the direction of its implementation.

Using panel smooth transition regression (PSTR) models, this paper studies the effects of financial and fiscal policies on poverty reduction across 382 poverty-stricken counties in China. The findings are that both fiscal and financial policies have a positive influence on poverty reduction, and their relationships are nonlinear. For either a high or low degree of poverty, fiscal policies are effective for poverty reduction, while financial policies have a greater impact on poverty reduction when there is a medium degree of poverty. Therefore, in deciding which policies should be prioritized for reducing poverty, the level of poverty should be taken into account. To be more specific, when a portfolio of poverty-reduction policies is implemented, fiscal policies should be prioritized at the beginning, when the incidence of poverty is high. Then, financial support should come to the forefront as the poverty level drops, and fiscal support should be stepped up when the poverty level continues to drop.

The article reveals the development of internal financial control mechanisms, which is considered in conjunction with the use of planning tools, budgeting based on performance monitoring, along with the involvement of financial instruments leasing, factoring, outsourcing, which are important means of solving financial and production problems faced by the institution. The authors emphasize that one of the main tasks of financial control is not only strict compliance with the legality and legitimacy of spending budgetary financial resources, but also the search for effective mechanisms for managing them in market conditions, along with the development of market management tools, the search for additional extrabudgetary resources and sources of their replenishment, taking into account their rational use in conditions of growing competition in the open market of medical services. The article analyzes the system of internal financial control, which is able to increase the efficiency of the organization and is able to make higher demands on the budgetary powers of its controlling agency. It is assumed that the system of internal financial control is designed to take into account the areas and requirements in anticipating the reduction of budget subsidies, paying attention to the crisis and recessions in the formation of an open market for medical services in order to comply with the timeliness and quality of budget tasks and eliminate irrational or inappropriate use of budget resources. In order to successfully implement the tasks set by the new system of financial control, a new structure of internal financial control bodies has been developed, which is a permanently functioning, multifaceted system of bodies aimed at organizing monitoring, analysis, evaluation and timely control, carried out within the framework of a rational combination of powers of internal and external financial control units, which contributes to the timely elimination of identified shortcomings in the field of legality, legitimacy, efficiency and rational use of budgetary and extrabudgetary resources.

The growth of the constructive role of public financial control in management is a logical consequence of the modernization of the established system of state financial control and necessitates an update of the ideology and paradigmatic principles of state financial control. A retrospective review of the theoretical and practical aspects of the methodology and organization in the state financial control of Ukraine suggests that in the scientific environment these issues are studied extensively. However, despite the scientific and practical value of these works, the question of the possible modernization of the modern system of state financial control in the conditions of Ukraine’s integration into the world economic system remains unresolved for the time being and is still the subject of lively discussions. The subject of the study is theoretical and methodological principles and methods for the implementation of state financial control, as well as the results of the activities of the State Audit Office of Ukraine for 2017. The purpose of the study is to substantiate the theoretical positions of the system of state financial control in Ukraine, to analyse the activity of the State Audit Service of Ukraine for 2017, and to suggest ways to improve it. To achieve the research goal, the following questions are addressed and solved: the analysis of the activity of the State Audit Service of Ukraine was carried out, based on the results of which the financial impropriety and state of its elimination for 2017 were described; the analysis revealed an increased attention to the organization of an effective system of financial control of budgetary institutions, the continuous improvement of mechanisms of management and control over budgetary funds. Method. To achieve the defined goal, a complex of general scientific and special methods was used: the method of system analysis and complex structures formalization; generalization and scientific abstraction; statistical method of data processing, grouping method. Results. However, despite the scientific and practical value of these works, the question of the possible modernization of the modern system of state financial control in the conditions of civilization and formation transformation of society through the establishment of paradigmatic principles of public audit, which are already typical of most highly developed countries of the world, remain in Ukraine today finally unresolved and still the subject of lively discussions. Conclusions. An important requirement for the construction of a modern system of state financial control at all levels of management is the implementation of control on the basis of ensuring a clear interaction and coordination of efforts of all participants in financial and budgetary relations to solve tasks of state financial control. The modern system of public financial control should be designed in such a way that it can be quickly and effectively adjusted to the solution of new challenges. Thus, only the complex realization of the measures specified in the study will provide the best effect from their introduction. In view of this, the need to improve the system of public financial control is particularly urgent and relevant. This contribution was supported by research work of the Department of Accounting and Taxing of the Zaporizhzhia National Technical University No. 0115U004682 “Transformation of accounting, analysis, and audit methods in the context of integration processes in Ukraine”.

s from short-run shocks, and which is capable of highlighting many important interactions between fiscal and monetary policies. We look at both the steady-state and the stability properties of the system. The analysis is especially relevant for cases where fiscal and monetary policies are decided with reference to different objectives, possibly by different authorities. It may be less useful for cases which one type of policy (e.g., fiscal policy) is given absolute priority (e.g., the fiscal authority behaves as a Stackelberg leader) and monetary authorities are forced to behave ways that ensure the maintenance of fiscal policy. The latter was what Sargent and Wallace had mind when they derived the path of the money stock and of inflation necessary to maintain fiscal policy settings [7]. The interesting literature that emerged along those lines was surveyed by Haliassos and Tobin [6]. The analysis introduces some new perspectives on policies aimed at attaining an acceptable inflation rate over the longer run. When a monetary authority maintains a target rate of inflation over the longer run, it also fixes the long-run real rate of return on money which is directly linked to inflation when money bears a zero (or an institutionally fixed) nominal interest rate. As a result, the size of the long-run inflation target generally affects the equilibrium composition of the total government debt, i.e., the ratio of money to government bonds. A sustainable monetary policy is one which not only fixes the rate of growth of nominal money to equal the target inflation rate plus the rate of growth of real GNP, but which additionally ensures that the equilibrium composition of government debt will be attained over the longer run. Otherwise, the system does not get onto its steady state, and the package of fiscal and monetary policies is not sustainable over the longer run. From this point of view, simple monetary policy rules targeting inflation, such as Friedman's x % rule, are not general sustainable, because they only fix the slope of the money path, without ensuring that the composition of government debt gets to the appropriate steady-state level. This point has implications for the interaction between fiscal and monetary policies. The steady-state equilibrium composition of government debt is not influenced only by the size of the inflation target, but also by fiscal policy settings. A change fiscal policy alters the equilibrium composition of government debt that the monetary authority has to bring about through its open market operations if it does not want to abandon its inflation target. Changes fiscal policy for a given inflation target also have effects on the long-run capitaloutput ratio, unless the conditions for debt neutrality are met. With regard to government spending on goods and services, G, the question is whether crowding out of private capital is unavoidable. The possibility that capital may be crowded in by higher ratios G/Y has been noted by Tobin and Buiter and by Friedman, but not under inflation targeting [9; 3; 4]. In fact, the present paper shows that crowding may still be observed situations where the mechanisms identified by the previous authors cannot operate. In particular, the mechanism whereby an increase government expenditure leads to crowding existing models is by raising the steady-state rate of inflation, thus lowering the real rate of return on money. This produces effects on the demand for money and for government bonds that create room portfolios for the extra holdings of capital. However, when inflation is set at a target level, this channel is not open. What can still happen is higher short-run inflation the transition to the steady state, so that the level of the steady-state price path ends up being higher while its slope is still equal to the long-run inflation target. This possibility is demonstrated here. The above effects on the capital-output ratio presuppose that complete debt neutrality does 1011 This content downloaded from 157.55.39.209 on Sat, 14 May 2016 06:30:33 UTC All use subject to http://about.jstor.org/terms 1012 Michael Haliassos not hold. If it does, then cuts current taxes would have no effect on the capital-output ratio. The work of Barro [2] inspired a voluminous theoretical literature on debt neutrality (or Equivalence). Haliassos and Tobin [6] present a comprehensive account of the literature exploring the restrictive conditions under which the neutrality theorem holds. The present analysis of sustainability adds a new dimension to the debate. Suppose that agents believe debt neutrality and save the current tax cut, so as to raise their bequests to descendants and to eliminate any effects on their utility arising from future tax increases. Then, the question is whether taxes will indeed have to go up the future, i.e., whether current fiscal policy is sustainable or not. If it is, Ricardian behavior on the part of agents is not rational, since the expectation that taxes will have to rise the future leads to behavior which violates it. It turns out that Ricardian equilibria are not necessarily rational, while one can also construct non-Ricardian equilibria which are rational. Section II presents an illustrative model for analyzing sustainable fiscal and monetary policies. Section III investigates the requirements for a sustainable monetary policy targeting inflation. Section IV discusses the interactions of fiscal and monetary policies and the implications of inflation targeting for crowding out or crowding of private capital. Section V investigates the rationality of Ricardian behavior. Section VI offers concluding remarks. The Appendix contains a formal derivation of comparative statics and stability results. II. An Illustrative Model The economy to be considered is one which fiscal policy rules are decided with reference to different objectives from those of monetary policy, which is aimed at maintaining a target inflation rate over the longer run. According to the notion of sustainability introduced here, if the combination of fiscal and monetary policies is unsustainable, the economy cannot attain a steady state by following those policies. This is either because a steady state does not exist or because it is not stable. If the government persists following those policies, then the economy is likely to get onto an unstable trajectory. It is difficult to describe precisely what will be observed if this is allowed to happen. A plausible doomsday scenario might be that we would experience a stock market crash, for example. However, it seems more likely that policy authorities will not allow the economy to reach such a point. After realizing that their policies are unsustainable, they are likely to reverse them, e.g., by abandoning their inflation target or by reducing the deficit-to-GNP ratio. Here, we highlight some general principles for detecting unsustainable policy mixes. The points can be made by employing a relatively general macroeconomic structure which explicitly allows for asset accumulation. Consider a closed economy with three assets: high-powered money, H, government bonds of total nominal value B, and claims to homogeneous physical capital K, one for each unit of capital. All asset stocks are measured per efficiency unit of labor. The fiscal policy instruments are (i) the ratio of real government expenditure on goods and services, G/Y, and (ii) the average tax rate, t, which is the ratio of total taxes net of transfers (T) to GNP. The primary budget deficit to GNP ratio is then G/Y t. Fiscal authorities issue bonds to finance the total budget deficit, while the monetary authorities determine the degree of monetization and the overall composition of accumulated government debt, H + B, through their open market exchanges of money for bonds.' 1. This is different from saying that the monetary authorities can exogenously fix the fraction of the deficit which is monetized. It will be seen below that this fraction is dictated by inflation targeting steady state. This content downloaded from 157.55.39.209 on Sat, 14 May 2016 06:30:33 UTC All use subject to http://about.jstor.org/terms SUSTAINABILITY, INFLATION TARGETING, AND CROWDING OUT

What started as a sub-prime mortgage crisis in the US in 2007 snowballed into global recession soon after. It has turned itself into an economic crisis, if not a sociopolitical one. While the period covering 2014–19 was one of return to the growth trajectory, albeit of the new normal variety, there were various headwinds affecting growth—the US-China trade war, initial confusing signals of Brexit finally culminating in the UK’s exit from the European Union—to name a few. In 2020, the world witnessed the emergence of the COVID-19 pandemic that culminated in a once-in-a-century type of human tragedy and a return to more aggressive fiscal and monetary stimuli. This book looks at the impact of the global crisis on fiscal positions and fiscal implications of the measures undertaken to deal with the situation. The authors explore cross-country experiences with special focus on the euro area economies and India. Analysing the issues relating to the interaction between monetary, fiscal, and financial policies, with emphasis on public debt management, sovereign debt restructuring, taxation, and regulation of the financial sector and sub-national finance, they present the emerging challenges. Recognizing the inter-linkages between monetary, financial, and fiscal policies against the backdrop of the global crisis, this book offers an understanding of possible institutional arrangements for the future.

The main objective of this paper is to provide an objective approach, starting from the current legislation, on the financial control system and the extent to which it can be an instrument of financial policy. At the same time, this paper captures the structure of the financial control system in Romania with brief considerations of the forms of financial control that make it up, starting from the community acquis in the field of financial control. In the current economic-social context, the existence of financial control standards is required, which are guaranteed by the Romanian state through the creation of a set of laws that govern this field. The pragmatic approach to financial control is vital for establishing its objective, based on specific management methods and techniques, and with the help of which the consolidation of order, discipline, the spirit of responsibility, as well as the efficient management of the economic and financial resources managed by the entities can be achieved public. Financial control must ensure the good functioning of all activities in the economic sphere and is called to act systematically in order to identify or prevent possible deviations and deficiencies, increase the efficiency in the use of resources, preserve the integrity of the heritage and, last but not least, in understanding the way in which legality is respected in the economic and financial field.

In order to improve the control system in the public sector in line with international standards and best practices in the European Union, the European Commission created the concept of public internal control in 2002. This model is globally recognized as a best practice that provides the foundation for preventing fraud and corruption. A successfully established and implemented financial management and control system ensures compliance with positive legal regulations, which is reflected in the responsible spending of entrusted pub lic funds, contributing to efficient and effective financial reporting. The obligations to establish internal financial control systems in all West ern Balkan countries were undertaken by signing the Stabilization and Association Agreement with the European Union. Bosnia and Herzegovina, thus, committed to cooperation in the field of audit and financial control, which is defined by Article 90 of the Stabilization and Association Agreement. This cooperation is achieved through the establishment of a financial management and control system, independent internal auditing, as well as the creation and strengthening of Central Harmonization Units and independent external audit systems. Finan cial management and control (FMC) is one of the three pillars of inter nal financial control in the public sector and is based on the principles of modern public administration and managerial accountability.

The article reveals the essence of state financial control over the activities of budgetary institutions, defines its purpose and objectives at the macro and microeconomic level, presents the bodies conducting external and internal state financial control, analyzes the results of the Accounting Chamber of Ukraine on financial control, outlines the main directions reforming public financial control in the context of strengthening European integration processes. Aspects of the importance and role of public financial control in the system of market relations, the need for its systematic development and improvement of its organization and the definition of effective methods of operation in the future are considered. It is argued that today the system of financial control practically does not perform a preventive function, and mostly states violations. Therefore, it is necessary to create a more integrated, structured system of general financial control in a single information space of public finance management system with mechanisms of interaction, justification of its development strategy, improvement of forms and methods of control actions, increase their efficiency and effectiveness. The need to clarify the conceptual basis for the formation and development of financial control, its organization, understanding of how its bodies function, the development of new methodologies and experience in the implementation of control measures. It is stated that the transformational model of financial control requires the introduction of qualitatively new management at the present stage of development of Ukraine’s economy, which is increasingly acquiring the properties of mixed. It is proved that in practice the weakness of the activity of controlling bodies is the lack of a clear methodological basis for conducting inspections, as the most frequently used audit, which does not allow to identify funds used for other purposes. It is proposed to each body of the system of state financial control to outline the sphere of influence, which will give a real opportunity to purposefully influence the financial policy of the state.

Problem setting. At present, the Institute of Public Financial Control is one of the main mechanisms for implementing financial and legal policy in Ukraine. At the same time, many questions regarding the legal and organizational support of the Institute, both in theory and in practice, have not yet been finally resolved and need further improvement. Since the 90’s of the twentieth century. Ukraine has started the transition to market relations. Financial and control bodies began to emerge, which appeared most often spontaneously in the state mechanism and were not brought into a single system, which was facilitated by the imperfect legal system. Therefore, it is no coincidence that their work today lacks proper coordination and coherence, and there is a clear and hidden duplication of functions, which leads to numerous abuses in the sphere of financial activity. Analysis of recent researches. Issues related to the formation and development of public financial control in the Russian Empire in the second half of the nineteenth century – beginning of the twentieth century, нave been the subject of scientific research of such scientists as: I.I. Blech, I.S. Blich, F.I. Bochkovsky, V.O. Tatarinov and others. Article’s main body. Pre-revolutionary historiography is rich in studies that have covered various aspects of financial policy, analyzed issues of budget, credit, taxation, including public financial control. In the pre-revolutionary period, neither the law nor the scientific literature used the term “state financial control”; instead, it used the term “state control”, which meant the procedure for verifying the execution of a decision made by anybody, or for the purpose of verification, and also the institution that conducted the audit. In the history of the Russian Empire in the 1960s, it was a time of transition to a new economic formation, the beginning of civil society formation and the transformation of state-legal institutions. This transition has undergone a number of transformations, including financial control reform, which has been of great importance for the development of the institution of public financial control. Conclusions and prospects for the development. From the 60’s of the XIX century and up to the end of the century in the Russian Empire observed: improvement of the legal framework of the system of state financial control; strengthening the position of the State Control as an independent body of financial control in the state mechanism; trend of decentralization of state financial control, development of previous financial control; putting in place the elements of publicity in the activities of financial control bodies.

Bai, N. and He, Z., 2020. Construction of financial risk management and control system for shipping companies. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 490–493. Coconut Creek (Florida), ISSN 0749-0208.This paper attempts to study the financial risk management and control system of shipping companies for improving their operation and investment efficiency. To this end, selecting Z shipping company as an example, this paper analyzes the current status and influencing factors of financial risk management in Z shipping company on the basis of financial risk management-related theories. The financial index analysis was also adopted. The research results show that Z shipping company has different degrees of risk in terms of financing, investment, capital recovery, and income distribution; in the financial risk management of Z company, there exist problems such as the lack of a financial risk management atmosphere and the awareness of financial risk management for all employees, an irrational postsetting of risk management agency, the lack of a scientific financial risk management system, and absence of financial risk professionals. In response to these problems, control measures were proposed from four aspects: financing risk, investment risk, capital operation risk, and establishing a supervisory agency and improving the operating mechanism. The research findings enrich the theoretical research content of financial risk management in shipping companies and play a certain guiding role in the construction of a financial risk management and control system.

Purpose – The aim of this study is to examine the financial policies implemented by EU countries in the tourism industry during the COVID-19 process. Design/methodology/approach – The tourism industry has been studied for two reasons. First, the pandemic has significantly affected the tourism industry due to its dynamic structure, which is very quickly affected by crises. The rapid spread of the pandemic through international travel operations has deepened this situation. Second, there are a large number of new entrepreneurs and SME-level enterprises in the tourism industry mostly in need of financial support. In the study, qualitative research methods were used and document analysis was used as a data collection tool. Data on the fiscal and monetary policies implemented by EU countries for the tourism industry during the COVID-19 process were obtained from the United Nations World Tourism Organization (UNWTO). Content analysis was used in the study. The data obtained were analyzed with the help of MAXQDA Qualitative Analysis Program. Findings – According to the results of the study, the financial and monetary policies developed by European Union countries to reduce the impact of COVID-19 on the tourism industry have strong relations with each other. Countries provide support for tourism enterprises to continue their activities. The support given is mainly focused on SMEs. In addition, support is provided to make employment sustainable, liquidity assistance is provided to eliminate cash shortages, especially in credit and employment support Discussion – In fiscal policy, it functions as important in banks as it does in public authorities. Credit, liquidity and tax are the financial instruments most involved in financial policies.

Principles of budgetary and financial policy: Willem H. Buiter. Cambridge, MA: The MIT Press, 1990. 461 pp. $40.00 ISBN 0-262-02303-2

The article is devoted to studying the impact of the rapid development of financial technologies (fintech) on the system of financial control in business structures. The systemic changes in financial services thanks to fintech are highlighted, and its importance and challenges for modern business are emphasized. The article includes research on various fintech innovations, including digital payments, blockchain, artificial intelligence, and data analytics. The work examines social problems associated with introducing innovations and the legal status of information resources involved in financial control. The potential advantages and problems of introducing technological and financial innovations into the financial control system are substantiated. Adhering to ethical principles, including data privacy, transparency, and bias, was emphasized, especially when implementing blockchain and artificial intelligence innovations. The risks and challenges associated with introducing fintech innovations in financial control were revealed, and the authors analyzed social aspects such as resistance to change, uncertainty in new technologies, and information confidentiality. An important consideration is also the legal status of information resources used in financial control. A few limitations and synergistic effects in the financial control of business structures, positive and negative aspects of innovations in the financial control system, and determination of ways to overcome existing challenges have been identified. The methodological basis of the article includes historical and logical methods, legal, ethical, comparative analysis, and data triangulation methods. The historical and logical method is used to analyze the evolution of financial and technological innovation. With the help of legal analysis, normative legal acts relating to the relevant sphere of social relations were studied. The ethical analysis allowed us to identify ethical guidelines for assessing the social and legal consequences of innovations in financial control. Comparative analysis has become the basis for comparing enterprise approaches to introducing innovations into the financial control system. Generalizing situational problems made it possible to evaluate the results of innovation implementation by business structures. The data triangulation method ensured the high reliability of the research results. The integration of these methods made it possible to obtain a comprehensive understanding of innovations in financial control, to study the social problems of their implementation, and to study the legal status of information resources in the context of relevant risks and challenges. Keywords: business structures, innovative development, financial control, social risks, social challenges, information resources, legal information.