Budget Deficit Research Articles

Position and Trends of Resource Gap in Nepal

Nepal's budget shortfall stems from excessively high recurring expenses, constituting over 60% of the government's total spending. Conversely, capital expenses linger below 20%. This imbalance highlights an unfriendly stance towards growth in the budget deficit, necessitating reduction. This study has examined the position and trends of resource gap in Nepal for which the source of the data used in the analysis was secondary. The data has been collected for the period 1986-87 to 2021-22 from the Central Bureau of Statistics (CBS) under the National Planning Commission (series of GDP). Descriptive statistics and trend analysis is used for secondary data analysis. A Statistical Package for Social Sciences (SPSS) software was used for data analysis for the study. The results revealed that Nepal is facing huge resource gap because of inability to raise revenue in comparison with the growing expenditure. To finance this huge resource gap the government is taking loans – both internal and external. Net outstanding public debt is increasing significantly. Government efforts should be placed on the mobilization of domestic resources for financing regular and development expenditure because foreign loan may be a great burden to the future.

Pengaruh FDI Dan Kontribusi Sektor Jasa Terhadap Penerimaan Pajak Dengan Pemoderasi Kualitas Peraturan

According to several reports from the international monetary authority, countries belonging to Sub-Saharan Africa still maintain their tax ratio below the threshold of 15%. In fact, the structure of tax revenues in many of these countries has improved in several periods. The slow growth of domestic revenue mobilization, the increase in the debt-to-GDP ratio and the occurrence of a budget deficit are clear manifestations that the tax policy needs to be reformed. This study focuses on analyzing the relationship between Foreign Direct Investment (FDI), the contribution of the Service Sector and the ratio of tax revenues in 33 countries in Sub Saharan Africa during the 2002-2019 period. Through a quantitative approach, this study uses multiple linear regression methods on panel data with the Fixed Effect Model estimation. The research results strongly state that all dependent variables can be explained by the independent variable by 89.19%. As independent variables, FDI and the contribution of the service sector are moderated by the regulatory quality variable. The conclusion stated FDI has a significant positive effect on tax revenues. However, the contribution of the service sector has a negative coefficient values but does not have a significant effect on tax revenues. This study also uses government effectiveness and the industrial sector's contribution to GDP as control variables.

Using ARCH and GARCH mathematical models to predict the general budget deficit for the period from (2008) to (2023)

In this research, (ARCH) and (GARCH) were used, which are mathematical models for time series, as the study of time series is considered one of the topics of great importance in analyzing the behavior of various phenomena and interpreting them by analyzing their change according to time, adopting different time periods. Among the most prominent time series are series Finance, which is volatile, that is, characterized by the characteristic of instability (volatility), which makes the use of (ARMA) models inaccurate in its predictive results, which work on the assumption that the variance of the random error, which is distributed normally, and which is constant over time. As for time series, this condition is This is not true and it shows variation and fluctuations at different periods of the series.
 This research aims to choose the best model for the conditional variance of the remainder of the time series model in the process of studying the surplus and deficit in the general financial budget of Iraq on a monthly basis for the period from January 2008 to September 2023. Accordingly, we will build a statistical model using the (ARCH) family and also know the risk element or Uncertainty) by using preference criteria to build time series models and then using the estimated model to predict the variance fluctuations of that model, The study showed that the best forecasting model is GARCH (2,0).

A Study of Government Initiatives to Promote Micro, Small and Medium Enterprises Sector in India

According to Hon’ble Prime Minister, Narendra Modi, “Skill Development of the new generation is a national need and is the foundation of Aatmnirbhar Bharat.”
 MSMEs are known as the backbone of the Indian economy; which employs nearly 11 Cr. of people and contributes over 30% of the nation's GDP and industrial output. To guarantee that MSMEs receive all of the benefits of these MSME schemes on proper time, the Indian government has taken the initiative. Micro, Small, and Medium Enterprises (MSMEs) are essential to India's economic development and expansion. This sector makes a specific contribution to exports, industrial output, employment creation, driving innovation, and inclusive socioeconomic development. To encourage the expansion and sustainability of MSMEs throughout the nation, the Indian government has put in place several policies and initiatives. Nonetheless, MSMEs have numerous obstacles concerning official credit, creating jobs, selling directly to the government, high-quality manufacturing, obtaining microcredit, ignorance, and other issues. To help new firms get off the ground, the government has already established several programs to address these difficulties. But, due to a lack of knowledge regarding various appropriate schemes, many units are not getting proper advantages. MSMEs have still several challenges and barriers when attempting to obtain financing from banks and other financial establishments. Even though the government has already taken great steps to facilitate credit flow to this industry, much more work needs to be done to fulfil the MSME sector's actual financing needs. The MSME sector in India has a bright future since it creates more job possibilities, and aids in the government's efforts to reduce other macroeconomic issues including inflation, massive budget deficits, poverty, and imbalance of payments.
 The present study confers the government initiatives for the MSME sector & the implementation & progress of important schemes in the present scenario.

A system dynamics model and analytical hierarchy process: an integrated approach for achieving sustainable solid waste management system.

Waste management in low-income countries faces challenges with an average cost of $35/ton approximately 51% collection efficiency. Despite investments in treatment, processing, and recycling, the system remains unsustainable owing to poor planning and policies. The current analysis of Lahore's solid waste management (SWM) system, selected as a major city of a low-income country as a case study, focuses on collection efficiency and waste generation. However, it neglects the complex and dynamic nature of SWM systems. To capture the complexities and dynamic nature of the SWM system, system dynamic (SD) modeling is proposed for its effectiveness in modeling complex and dynamic systems. Unlike previous attempts at SD modeling that mostly consider only some components of the SWM system with varying success, this study attempts to use a holistic approach by considering all aspects of an integrated SWM system. In addition, this study explores different financial and management policies, highlighting the weaknesses of the system through a quantitative comparison of three scenarios: (1) business-as-usual (BAU) which considers the current trends in waste generation and practices of collection and disposal to landfill, (2) waste treatment system (WTS) in which various waste treatment systems are included to reduce burden on landfill, and (3) introduction of user fee with awareness campaigns (UFAC) which encourages community participation towards reduction in waste generation and financially supports the SWM. All three scenarios use four indices: waste generation, waste ending up in landfill, uncollected waste, and annual budget deficit as performance indices. These scenarios were simulated over a 25-year period using an SD model, covering all six components of the SWM system. The BAU scenario shows a 16% increase in waste generation, a 173% increase in landfill waste, an 11% reduction in uncollected waste, and a 64% increase in the budget deficit over the simulation period, indicating an unsustainable SWM system. The WTS scenario exhibits a 16% increase in waste generation, a 155% increase in landfill waste, an 11% reduction in uncollected waste, and a 61% increase in the budget deficit, showing a significant reduction in landfill waste and a slight reduction in deficit but it remains unsustainable. The UFAC scenario, however, results in a 40% reduction in waste generation, a 67% decrease in uncollected waste, an 8% decrease in landfill waste, and a 59% decrease in the budget deficit. These results demonstrate that instituting user fees for SWM services and incentivizing community participation towards waste reduction and segregation can make the SWM system of Lahore sustainable. This SD model provides insights for policymakers, aiding what-if analyses and long/short-term waste management plans for metropolitan cities in low-income countries. To validate the sustainability judgments based on performance indices, the analytical hierarchy process (AHP), a multi-criteria decision analysis (MCDA) tool commonly used for ranking policy decisions based on competing criteria, was employed. It considered the same four criteria as in the SD model. The results of the AHP analysis aligned with those of the SD model, ranking the UFAC scenario as the most sustainable option.

THE CONSEQUENCES OF A FORCED MIGRATION SHOCK FOR THE ECONOMY OF A COUNTRY AT WAR: THE CASE OF UKRAINE

The full-scale war in Ukraine, which started with the Russian invasion in February 2022, has led to an unprecedented forced migration crisis not seen in Europe since the Second World War. The current Ukrainian forced displacement, which has no analogues in terms of its scale, geographical coverage, quantitative indicators and timeframe, represents an exceptional case to study in terms of its impact on the economic environment of the country of origin. The purpose of this paper is to identify and analyse the short- and long-term effects of the forced migration shock on the economy of a combatant country in the context of a full-scale war in Ukraine. Methodology. To address the task of classifying the economic consequences of a forced migration shock from the perspective of the country of origin, the publication uses the matrix diagram method. The matrix developed is based on two key characteristics that indicate the durability of the impact (short-term or long-term) and the nature of the impact (explicit or implicit). The analysis of the short-term and long-term effects of forced migration on the Ukrainian economy is based on macroeconomic statistics (key macroeconomic indicators, labour market indicators, public finance indicators, external sector statistics) in the pre-war period, the war period since 2022, and forecasts for 2024-2025. Results. Unlike regular labour migration, forced migration has a predominantly negative impact on the economy of a country of origin, both in the short and long term. The explicit effect of forced migration on the economic system of the country of origin is to damage the labour market. The implicit effects include a decrease in remittances, a reduction in production facilities, an increase in the budget deficit and regional budget imbalances, an increase in the level of external and internal debt, increased dependence on international aid, a decrease in consumption, investment and GDP growth rates. Practical implications. The practical results provide a basis for further research into policy measures to address the negative aspects of increasing migration processes in Ukraine, particularly with a view to the country's future post-war reconstruction. Value/Originality. The matrix developed to assess the impact of the forced migration shock provides a deeper understanding of the multifaceted effects of this phenomenon on the socio-economic system of a country at war.

MENAVIGASI TANTANGAN FISKAL: EFEKTIVITAS SUKUK SEBAGAI INSTRUMEN ALTERNATIF PEMBIAYAAN DEFISIT DI INDONESIA

In the past half-decade, Indonesia encountered its highest budget deficit in 2022, amounting to IDR 464.3 trillion or 2.38% of the nation's GDP, as reported by the Ministry of Finance. To counteract this, the government formulates the State Revenue and Expenditure Budget (APBN) annually, serving as a pivotal tool for national welfare and economic governance. Governed by fiscal policy, APBN orchestrates government revenue and spending to propel economic enhancement. This paper scrutinizes the efficacy of sukuk as a deficit financing alternative, considering policies, implementation strategies, targeting precision, and procedural efficiency. The study, covering the period from 2018 to 2023, accentuates sukuk's resilience amidst economic uncertainties. Key determinants of sukuk effectiveness include well-aligned policies with national objectives, collaborative execution involving diverse stakeholders, congruence with targeted goals, and streamlined processes adhering to legislative frameworks. The research further delves into the varied spectrum of sukuk instruments traded in the market, distinguishing between tradable and non-tradeable categories. Tradable sukuk exhibit liquidity advantages, while non-tradable sukuk offer price stability. Indonesia's substantial growth in sukuk from 2020 to January 2023 underscores its potential in a predominantly Muslim-populated country. This research method is qualitative with a literature study approach obtained from secondary data. The results of this research are that sukuk is very effective as an alternative financing method. This is proven by an increase in total assets in 2022 amounting to IDR 131.46 trillion from 68 issuers and there were 512 recorded emissions using a circulating nominal value of IDR 459.15 trillion and US$ 47.5 million

Фінансування дефіциту державного бюджету України в умовах воєнного стану

As a country that faces constant economic turbulence, Ukraine is dealing with several challenges. This includes a significant increase in the deficit of budget resources while needing to finance military expenses, all while trying to maintain macroeconomic stability. This article focuses on the specifics of financing the deficit of the state budget of Ukraine during martial law. The financing of the state budget deficit is analyzed in terms of the classification of budget financing by the type of creditor and the type of debt obligation. These indicators were significantly affected by the military challenges in 2022 and the first half of 2023. The article also covers the budget deficit’s coverage analysis at the expense of revenues from the privatization of state property and the issuance of military government bonds, which gained popularity in Ukraine. The authors emphasized the importance of cooperation between the state and IFIs and other institutions as an essential source of financing for overcoming the deficit of the state budget. This form of cooperation is necessary for maintaining the country’s financial stability and resilience to face complex challenges. The article examines the measures to cover the budget deficit in military conditions, including the need to carry out budget system reforms, cost optimization, searching for new sources of income, expanding the tax base, and improving the efficiency of the tax system, which can provide additional funds in the budget. Other measures include financial transparency, investment stimulation, budget consolidation, increasing transparency, fighting corruption, improving conditions for entrepreneurship, achieving low and stable inflation, expanding the tax base, and speeding up the privatization of state enterprises.

Теоретичні аспекти фіскального регулювання економічного розвитку держави

The current socio-economic situation of Ukraine can be characterized as difficult and tense as a result of military operations on the territory of the country, numerous destruction of infrastructure facilities, energy capacities and long-term decline, lack of modernization of production, wear and tear of fixed assets almost to zero. In these conditions, the issue of finding incentives from the state to carry out modernization measures for the restoration and creation of new energy capacities, which are based on new types of generation, is acute. For example, generation from renewable energy sources. Balanced fiscal policy and regulation can act as such a unique state development tool. Therefore, the purpose of the article is to determine the peculiarities of using fiscal regulation tools in the institutional space of the economy to support the development of certain industries, and primarily energy, with special attention to the experience of EU countries that have achieved significant success in using fiscal stimulation for the development of energy, especially renewable energy. In the modern economy, the state plays a key role in the regulation and development of the institutional space. For this, various instruments of fiscal regulation are used, which allow the state to influence economic processes and create favorable conditions for business development and investment stimulation. The experience of the EU shows that the most frequently used tool of fiscal support for the development of economic sectors, and primarily energy, is the use of energy subsidies and state intervention related to specific initiatives. The use of energy subsidies and state intervention in EU countries has already brought impressive results. There are already a number of countries in which the amount of electricity produced from renewable energy sources has already exceeded the amount of energy from traditional sources. Wide use of EU experience in Ukraine regarding fiscal support for energy development can help the development of the economy and the post-war recovery of the energy sector based on the development of new energy sources. The conducted research allows us to conclude that fiscal regulation is a powerful tool that governments can use to stimulate economic growth and development. Tax policy, government spending, budget deficit and debt management - all these tools can be effectively used to achieve the country's economic goals.

Застосування фіскальних правил у період подолання наслідків війни

Introduction. During the period of overcoming the consequences of the COVID-19 pandemic and the full-scale Russian invasion of Ukraine, the risks of compliance with fiscal rules have intensified. Fiscal policy restrictions imposed by them restrained the active budget expansion necessary to increase spending and attract resources to finance adopted state programs. The task of revising the application of fiscal rules, determining rational levels of state budget financing, and preventing critical levels of the state debt from exceeding has arisen. Problem Statement. The negative effects of the pandemic and the war required a sharp increase in public expenditures, adjustments to their structure, and an increase in financial resources to cover them. Compliance with the requirements stipulated by the fiscal rules in force at that time did not allow to go beyond the accepted limits (regarding the maintenance of the indicators of the budget deficit and state debt). There was a need to make changes to the implementation of the budget policy to take into account the restrictions imposed by the fiscal rules. The purpose is to assess the application of fiscal rules in the period of overcoming the consequences of the war, as well as their adjustment in the aspect of reform programs in the EU. Methods. Conceptual approaches to complying with fiscal rules during the war and overcoming its consequences are defined. The issue of methodical provision of fiscal rules, application of mechanisms and budgetary procedures with the aim of their implementation in the practice of state administration is revealed. Results. In Ukraine, the introduction of fiscal rules into the practice of public finance management is in the initial stages. Unlike the EU, they contain only digital limits of budget aggregates, but do not provide for the use of mechanisms for maintaining fiscal stability and debt sustainability. It is also not provided for the application of the necessary budgetary procedures directing the state administration bodies to comply with these rules. During the period of overcoming the consequences of the pandemic and the war, fiscal rules began to restrain the implementation of an active expansionary policy, and therefore their effect was suspended. The recovery of Ukraine involves a review of the use of fiscal rules, taking into account the experience of their reform in the EU. Conclusions. The application of fiscal rules in Ukraine requires significant changes for their application in the practice of budget management, which take into account the results of their use in the EU member states, as well as the features of the economic and social development of our country. Such changes include: the adoption of real medium-term budget goals, the use of preventive mechanisms aimed at developing the state budget taking into account updated approaches, the adjustment of budget operations (in cases of deviations from the accepted requirements), the use of budget procedures that direct the government to comply with fiscal rules for the early correction of such deviations, deepening the transparency of budget operations, strengthening monitoring and evaluation of the use of budget rules by the parliament and specially created independent fiscal institutions.

Determinants of Uganda’s Debt Sustainability: The Public Debt Dynamics Model in Perspective

To investigate Uganda's debt sustainability determinants. The fundamental framework for this study is the public debt dynamics model, which looks at connections between changes in public debt and important macroeconomic factors such as real GDP, primary balance, currency rate, real interest rate, and trade openness. While acknowledging the significance of the primary variables identified by Mupunga and Le Roux, our empirical analysis of a country's debt dynamics extends beyond these factors. Additional considerations include the incorporation of controls such as the production gap and the non-interest current account balance. Tailored to Uganda's economic context, our comprehensive empirical model aims to provide a nuanced understanding of the diverse determinants influencing debt dynamics in the region. The major conclusions indicate that the Primary Balance, Real Interest Rate, and Real Effective Exchange Rate all positively and significantly affect the debt ratio, suggesting that fiscal surplus, low-interest rates, and currency appreciation are favorable to debt reduction and sustainability. The paper also finds that the debt ratio is negatively and significantly influenced by the Current Account Balance, indicating that trade surplus is beneficial for debt management. The paper further finds that the debt ratio is not significantly influenced by GDP growth, suggesting that economic growth may not have a strong effect on debt dynamics in Uganda. Given the significant impact of the "Primary Balance" on the "Debt-to-GDP ratio in the long run, policymakers should prioritize maintaining a fiscal surplus and prudent fiscal management. Implementing measures to enhance revenue generation, control government expenditures, and reduce budget deficits can contribute to reducing the debt burden and ensuring long-term debt sustainability. To keep the debt-to-GDP ratio in good shape, fiscal policies and long-term restraint are crucial.

Keterkaitan Hukum Privatisasi BUMN Terhadap Kewenangan Negara

Privatization of State-Owned Enterprises (BUMN) in Indonesia. Privatization is undertaken with the intention of enhancing company performance, contributing to the country's economy, and improving less efficient management. However, there are concerns regarding the loss of economic sovereignty through privatization. The Indonesian government has implemented a privatization policy based on the 1999 GBHN and the 2003 BUMN Law. Privatization has various dimensions and objectives, including reducing the state's role in the economy, increasing management efficiency, and filling the state budget deficit. The role of BUMN in development has been significant, but there have also been cases of poor management and financial losses. Privatization of BUMN is considered to overcome this problem and improve company performance. However, there are challenges in achieving professionalism and competitiveness in BUMN because employee status is like civil servants. There is also controversy regarding privatization, with some arguing that certain sectors should remain under government control in the interests of the economy. The privatization of BUMN is regulated by the BUMN Law, which emphasizes the importance of transparency, accountability, and fairness in the privatization process. However, there are concerns regarding the consistency of these regulations with the Constitution. Therefore, it is recommended that there be restrictions on the sale of shares during privatization and that the government maintain majority ownership of the shares. Apart from that, a clear definition is needed for the purpose of privatization and more detailed regulations in the BUMN Law.

Moderating Effect of WAQF for Tourism Sustainability in Malaysia: A Mixed-Method Approach

Due to its substantial contributions to the economy, society, environment, and other sectors, tourism is vital. To keep the tourism business sustainable, the government and other relevant stakeholders must allocate a sizable budget. Consequently, waqf is one way to lessen reliance on government funding. Waqf, in general, refers to assets that Muslims willingly donate and plan to use or grow for the good of the community. The purpose of this study is to determine whether the tourism industry and the economic, social-cultural, environmental, and transversal pillars are significantly correlated. It also looks at how waqf moderates the relationship between the tourism sector's sustainability and the economic pillar. Both quantitative and qualitative methods are used in this methodology. Quantitative data were obtained from 150 respondents, and qualitative data were collected through interviews to verify the quantitative findings. The results show significant positive relationships between economic, social-cultural, environmental, and transversal pillars with tourism industry sustainability. The result also demonstrates that waqf moderates the relationship between the economic pillar and tourism industry sustainability. The implications of waqf would contribute to essential services to the community. This had many significant impacts on the economy as a whole and the sustainability of the tourism industry itself. Waqf can reduce the budget deficit, decrease the need for government borrowing, and decrease the interest rate, thereby removing a significant impediment to private and investment growth.

Effect of Public Debt on the twin deficits using a Threshold time series model: Case Study of Jordan 1980-2020

This study examines the Effect of Public Debt on the twin deficits using the threshold time series model of the Jordanian economy from 1980-2020. The independent variables were relied upon: private saving, production gap, economic growth, trade openness, and budget deficit. In addition to public debt as a threshold variable. The results indicated that the optimal number of model systems is six systems only, which means that there are only five thresholds. The results also showed that three threshold values are significant, but there are two values of the threshold which are not significant, but there are two values of the threshold which are not significant. The results support the Keynesian view of the strong and positive relationship between the current account balance deficit, saving, budget deficit, and trade openness in Jordan during the period 1980-2020. Work must be done to reduce the budget deficit or to enhance saving and investment, or both in Jordan, which may help reduce the current account deficit. However, it requires radical reforms in the trade and financial sectors to achieve efficient markets. To increase external competitiveness, it is necessary to put in place incentive policies for production to increase exports to take advantage of trade liberalization policies in the field of specialization in production.

СУЧАСНІ ФОРМИ СПІВПРАЦІ УКРАЇНИ З МІЖНАРОДНИМИ ФІНАНСОВИМИ ІНСТИТУТАМИ

In this article, the importance of modern forms of Ukraine’s cooperation with international financial institutions (IFSs) is discussed. The author systematised IFIs by classification criteria and looked into the main forms of financial cooperation between the government of Ukraine and IFIs. The analysis indicates that in today’s global economic system, the most common form of cooperation between governments and IFIs lies in lending. The structural and dynamic analysis of the forms of financial assistance from IFIs to Ukraine also confirmed this. The analysis of the cooperation between the Ukrainian government and IFIs also confirmed that loans from IFIs are the main source of long-term financing for socio-economic development projects in Ukraine’s priority sectors. Additionally, the author analyses the aspects of Ukraine’s cooperation with the IMF, the World Bank Group, and the IBRD, and identifies the areas of use of credit and investment resources in 2020-2023. Hence, the borrowed credit resources received by Ukraine from the IMF are used to service external debt, finance the budget deficit and deficits in the balance of payments and trade. In times of crisis for Ukraine’s economy, the IMF’s loans help replenish the NBU’s foreign exchange reserves, maintain the stability of the national currency, and optimize the monetary policy of the National Bank of Ukraine which stimulates lending to the real economy. Ukraine used the loan resources from the IFIs of the World Bank Group to cover the budget deficit, to implement institutional and structural reforms as well as long-term investment projects. The author also defines the importance and role of international technical assistance in the framework of Ukraine’s cooperation with IFIs, proving that international technical assistance is provided to Ukraine on a free and non-refundable basis by donor countries and international institutions. In conclusion, the author underlines the expected risks and necessity of this cooperation.

Budget Deficit Financing and Macroeconomic Outcomes: New Evidence from a VARX Model for the Iranian Economy

The main goal of the study is to evaluate the impacts of different government deficit financing strategies on GDP growth and inflation in the oil-rich nation of Iran from 1990:1 to 2018:4. The link between the government’s budget deficit and GDP growth is examined using the Explanatory-Augmented Vector Autoregressive (VARX) model. Because of the presence of unmodelled variables in the research, the VARX model was applied. The results of the study indicate that the way that the government finances the budget deficit had a direct impact on GDP growth, such that when the Foreign Exchange Reserve Account (FERA) is for most of the financing, the budget deficit’s impact on GDP growth is positive and its severity is increasing. Although the government’s budget deficit has a positive impact on GDP growth, it becomes less severe when most of the financing is obtained through the Selling Government-Owned Companies (SGOC), and when the sale of Debt Securities (DS) is for most of the financing, the impact of the government’s deficit on GDP growth is positive. The study concludes that there is an insignificant effect of a government’s budget deficit on inflation when most of the deficit is covered by withdrawals from the foreign exchange reserve account. However, the budget deficit has raised inflation when the two other sources of funding have gotten most of the funding. One of the study’s innovations is its investigation of the ways used to finance the government’s budget deficit in oil economies, especially Iran. The use of a VARX model to analyse the impact of the government’s budget deficit on macroeconomic indicators and the severity of that impact is another novel aspect of this research. In the Iranian economy, there is no proper statistical information available about the spending of the budget deficit (especially after 2009). This article concludes with a clear message to policymakers: if the government tends to reduce the share of oil income in financing the budget deficit, increasing the share of debt securities is the best alternative.

NPM and public financial management - directions of rationalization (selected economic aspects)

Abstract From the subjective point of view, public finances can be divided into central and local government. Local government finances are local and regional finances. However, a question arises whether, when considering the areas of public funds management and wanting to indicate their specificity, this branch is sufficient. It seems that it is not, because it is important to take into account institutional and content-related criteria. From the point of view of these criteria, it should be pointed out that the most important institution of public finances is the budget of both the state and local government units. On the other hand, in the substantive area, the most important phenomena from the point of view of their effects, such as the budget deficit and the State Treasury debt, should be mentioned. Keywords: new public management, public administration, efficiency, rationality, process economisation

Modernization of Primary Healthcare: Efficiency of Social Policy in the Post-Soviet State

The national security depends on the health of the population, which, in its turn, depends on the healthcare system. After the collapse of the Soviet Union, Russia focused on the primary healthcare. The goals, tools, and results of the reforms that have taken place in the last three decades are usually considered from the point of view of law, economic feasibility, or organizational effectiveness. The author applied the historical and political approach to these reforms, thus evaluating their ability to preserve and increase human health. Fertility, morbidity, and mortality usually serve as national health criteria. The research relied on regulatory legal acts, speeches of senior government officials, official statistics, and sociological surveys. Demographic problems and budget deficits proved to be the main reasons behind the post-Soviet reforms, which transferred some material obligations from the federal to the local level and expended the scope of commercial medicine. Part of the financial burden moved from expensive specialized hospitals (secondary healthcare) to cheaper polyclinic and preventive medicine (primary healthcare). Federal budget expenditures decreased as patient capacity and the number of medical organizations went down and the productivity of primary healthcare went up. However, the national mortality and morbidity kept growing. The current diagnostic preventive healthcare model concentrates on primary healthcare: it reduces financial expenditures but fails to solve the demographic problems.

Debt ceiling problems: is the US facing a technical default?

On January 19, 2023 political contradictions between Republicans and Democrats on the issues of the national debt ceiling and the growing budget deficit have once again brought the United States to the brink of a technical default. The article examines how the Treasury tried to push back the date of such a default. Two types of national debt (public debt and intragovernmental debt) and their role in maintaining the debt ceiling are analyzed. The paradoxes of decision-making in the budget process regarding the debt ceiling are considered. When adopting the budget, legislators already estimate the amount of the budget deficit that will be added to the debt, threats of technical default have become a bargaining chip in disputes about budget policy. This is especially evident in the conditions of divided government. Republicans with the majority in the House of Representatives actively played a card of budget deficit. After months of bitter struggle between the administration and republicans in Congress, the latter approved a bill that shifted the limit on the national debt to January 1, 2025. On June 3, the president signed it. The debt ceiling problem has been postponed, but not solved. Lawmakers did not go for the abolition of the "debt ceiling", which some budget experts consider necessary. Particular attention in the article is paid to how Congress has been trying for decades to legislate the problem of the budget deficit and the debt ceiling and how effective these attempts have been. The American decision-making mechanism in the budgetary sphere is increasingly coming to a standstill. Trust in treasuries allows the US government to attract the savings of its citizens and the world's savings. Each time, the protracted confrontations over the debt ceiling can make investors begin to doubt whether American treasuries are such a reliable asset.

Luxury tax perspectives: The evidence of the Republic of Belarus

The study is dedicated to the reasons for luxury tax implementation into the national taxation system. The purpose of the research is to study the emergence and experience of applying the luxury tax in various countries in order to determine the feasibility of introducing such a tax in the Republic of Belarus. Authors’ conclusions and findings have been presented against the background of the analysis of digitized texts on tax and bibliometric and scientometric analysis of the scientific field of taxation. As a testing ground for making our conclusions in terms of lessons learned from past historical experience and real economic background, the Republic of Belarus was chosen. Possible reasons for the introduction of such a tax were considered, as well as an analysis of the market for luxury goods in the Republic of Belarus and the demand for them was conducted. We have drawn some parallels between the Republic of Belarus and the Russian Federation to reach a reasonable conclusion. For this purpose, the Russian luxury goods market (premium car and real estate markets) was analyzed based on available statistics for the years 2020-2022. As the most politically controversial tax that can be not as efficient as income taxes and have unintended consequences, luxury tax was examined from the point of international experience and historical perspective. Examples of luxury goods throughout history and in real life together with historical references to the implementation of this tax were presented. The effectiveness of luxury tax and its impact that depends on a variety of factors (tax rate, types of goods and services being taxed, economic conditions, etc.) together with the modern concept of luxury tax with national specific was evaluated. Considering the situation in the Republic of Belarus, although during recent years there has been a budget deficit and there is a necessity to find new sources of state income, we didn’t find any reasons for the implementation of such a tax into the national taxation system. These types of taxes are mainly imposed in highly developed countries where people can afford “luxurious” goods and the variety of these goods is higher. In the case of the Republic of Belarus, there is a trend of decreasing the number of people whose purchasing power would allow them to buy luxury goods and the real disposable income of Belarusians has also declined, making it less likely that Belarusians will spend money on the consumption of luxury goods.