Estimation of state financial support for non-priority territorial units using the example of bridge construction

Iaroslava Levchenko,Igor Britchenko

doi:10.15587/1729-4061.2021.225524

Abstract

The article discloses the problem of distributing state financial support based on an integrated approach. The study has proved the urgency and necessity of state support for the lowest priority territorial units (regions). It answers the research question of what components need to be included in the methodology for determining state financial support. A comprehensive method for estimating the share of public funds is proposed, taking into account the investment attractiveness of a region (oblast) and the risk of the corresponding region (oblast). To achieve this goal, the following general scientific and special methods and research techniques were used in the work, such as comparative analysis of scientific literature and information sources based on methods of comparison, systematization, and generalization; generalization of the analysis results, as well as logical generation of conclusions and integral assessment. Since the problem of financing the construction and reconstruction of bridges is relevant for a number of countries, this technique was tested using an example of bridge construction. According to the obtained results, territorial units (regions) that are not leaders in priority for the investor and have a high level of riskiness of investing financial resources become eligible for state financial support. The problem of financing such regions can be solved only through state support. The results of calculations show that the distribution of financial resources with the available volume of public finances K=1 allocated for support is carried out proportionally. An integrated approach made it possible to identify 10 territorial units (oblasts) for funding, with the oblasts with the worst priority factors receiving the largest share of state financial support. This study is of practical interest to government agencies in the distribution of public funds, and it is of theoretical importance to researchers dealing with issues of financial security and public administration

Highlights

Research that is aimed at solving the problem of financing the reconstruction and construction of bridges is relevant for a number of countries [1]
In contrast to them, where preference for financing is given to objects that have high investment attractiveness and, high priority, the proposed innovative methodology is focused on determining financial support for non-priority territorial units
Further research should continue in the direction of estimating state financial support for a field or industry, which can act as an independent component of determining state financial support for non-priority territorial units

Summary

Introduction

Research that is aimed at solving the problem of financing the reconstruction and construction of bridges is relevant for a number of countries [1]. It was noted in [11] that researchers in Brazil focus on solving “narrow problems” They are engaged in technical developments related to the construction of new roads, bridges and hydraulic systems, which are considered as priority ones on the path to the innovative development of the country. In this case, we are talking about structures in big cities and about small ones, in which people live and which must follow the path of innovative development [11]. This is what provokes the development of new forms of financing the latter [21], which provide for the solution of both problems at once

Literature review and problem statement

The purpose and objectives of the study

Findings

Conclusions