Budgeting Procedures Research Articles

Treasury monitoring as a method of state financial control

The article identifies the elements of the control system, on the basis of which the organizational and functional structure of control monitoring as a method of internal state financial control is disclosed. The definition of the budgetary procedure is given and, based on the powers of the internal state financial control body, the budgetary procedures within which control monitoring is carried out are specified. The subject of control monitoring has been defined, which is to ensure that the object of control complies with the rules of accounting, preparation and provision of accounting (financial) statements, fulfillment of the terms of contracts (agreements) for the provision of budgetary funds, provision of reports on the implementation of state programs and government assignments, etc. The implementation of the powers to conduct control monitoring is carried out through operational and proactive interaction between the objects of control and the Federal Treasury through automated (information) systems, which allows you to receive real-time data on the use of financial resources and form a motivational opinion on the need to adjust the financial and economic activities of the object of control.

BUDGET EXECUTION PROCESS AS A STAGE OF THE BUDGET PROCESS IN UKRAINE

The article discusses budget execution as a complex sequence of stages and procedures that require the coordinated work of numerous state bodies, institutions, and individuals. The article emphasizes the importance of timely and full receipt of planned revenues, as well as timely, full, and continuous financing of measures provided for in the budgets. Budget execu­tion is considered as achieving compliance between the actual results of the actions of obligated subjects of budgetary legal relations with budget funds and the established budget-legal norms of the act on the budget regarding the crediting, distribution, and transfer of budget funds to the defined directions of financing in the established volume. Also highlighted are the problems that arise during the formation and execution of the state budget in Ukraine, including deficiencies in legislation, insufficient transparency of the electronic tax administration system, low responsibility of collection bodies, lack of proper coordination of budget procedures among participants in the budget process, absence of an ef­fective mechanism for controlling the activities of budget institutions, and lack of an effective system of responsibility for non-fulfillment of the budget. Budget adoption and implementation processes may be inefficient due to the lack of mechanisms to implement and adhere to the chosen course. This can lead to the fact that the budget, which should optimally represent the interests of society, is not implemented in full accordance with the established priorities. Implementation of the budget requires the coordinated work of a large number of state bodies, institutions, individuals and institutional mechanisms. However, in Ukraine there are numerous problems that complicate this pro­cess, including shortcomings in the legislation, insufficient transparency of the electronic tax administration system, low responsibility of collection agencies, lack of proper coordina­tion of budget procedures between participants in the budget process, lack of an effective mechanism for monitoring the activities of budget institutes, and lack of an effective system of responsibility for non-fulfillment of the budget.

Leveraging uncertainty, market-power, and fiscal opacity: The growth of financial security states

AbstractSince 2008, we have observed a more prominent role of the state in economic life, with the widespread use of financial tools. Advancing discussions on the financialization of distributional politics, the expansion of financial statecraft as a result of fiscal conflicts, and the fragmentation of state power, this article explores how proliferating financial policies reconfigure the state and its relationship with the economy as well as its democratic foundations. I introduce the concept of financial security states to theorize reactions to mature financialization and its inherent instabilities, which provoke socially structured demands for public stabilization. Leveraging the tradition of fiscal sociology, I work out differences between taxation and welfare systems and those based on financial security. In particular, I show that financial security states exploit value uncertainties to postpone loss-reckoning, are carried by hybrid state-banking institutions, and leverage the states’ endogenous power within market-based finance. This article argues that the by-and-large regressive distributional outcomes and fiscal costs of financial policies remain opaque, due to strategic obfuscation, the failure of traditional modes of political mediation, and deficient budgeting procedures.

Reproductive gerrymandering, bureaucratic violence, and the erosion of abortion access in the United States.

In the contemporary American political landscape, gerrymandering and the passage of anti-abortion legislation are intimately connected in what I call reproductive gerrymandering. I develop this concept as an analytic tool to understand the disjuncture between the passage of laws restricting reproductive healthcare access and the will of the majority of voters. In this ethnographic project, Ohio serves as an important case study where efforts to elect a supermajority of extremist anti-abortion Republican officials has allowed for the passage of unpopular legislation restricting abortion. I argue that the mundane bureaucratic processes involved in electoral redistricting and state budget procedures are forms of bureaucratic violence that result in structural harm experienced by pregnant people, especially those who are most marginalized. Reproductive gerrymandering provides a means for theorizing the connections across domains involving partisan redistricting, reproductive governance in the form of anti-abortion legislation, and the structural violence experienced by pregnant people seeking abortion.

Мониторинг в бюджетной сфере как инструмент обеспечения финансового суверенитет

The article formulates the concept of financial sovereignty based on the types of financial activities and the principle of integration of public and private interests. It is proved that one of the tools to ensure financial sovereignty is monitoring, implemented within the framework of a specific budget procedure. Based on the subject composition and functional component, the author proposes a classification of monitoring: as a type of budgetary legal relationship, as a method of public finance management, as an auxiliary method.

Checks and balances w procedurze budżetowej w Polsce

The article presents the checks and balances in the budget procedure in Poland. In the first place, the article explains the term checks and balances. Next the article discusses the constitutional regulation of the budget procedure and the public authorities that participate in this procedure. These considerations allow to distinguish “budget checks and balances” and describe them from the point of view of the relationship between the public authorities participating in the budget procedure. The article also presents the legal nature of the state budget and the legal norms contained therein, the differences between the state budget and the Budget Act and the issue of the draft budget versus the principle of discontinuation of works of the parliament.

ОСНОВНЫЕ ПРИОРИТЕТЫ БЮДЖЕТНОЙ ПОЛИТИКИ РОССИЙСКОЙ ФЕДЕРАЦИИ В УСЛОВИЯХ МЕНЯЮЩЕГОСЯ МЕСТА РОССИИ В СОВРЕМЕННОМ МИРЕ

The article examines statistical data on the volumes of revenues and expenditures of the federal budget of the Russian Federation, as well as expenditures on national defense, national secu-rity and social policy for 2023-2026. A conclusion is made about the stability of budgetary resource spending. An analysis of changes in tax legislation from 2025, the implementation of which determines the implementation of budget policy in Russia, is carried out. The main innovations boil down to an increase in tax rates and an expansion of the list of taxable items. This will increase tax collection and the revenue side of the budget. An analysis of budget expenditures for the implementation of state pro-grams in the considered priority areas of activity of the Russian Federation showed that quite large vol-umes of budget financing are allocated for these purposes. The level and dynamics of the allocation of financial support are different. There will be no significant decrease or increase in the volume of budget financing in the next two-year period for all analyzed state programs. This is a positive moment, indicating the stability of the budget policy in the Russian Federation. The negative aspects include the potential existence of a situation in which a significant increase in budget expenditures is possible, their significant redistribution across industries and areas of activity, and a reduction in budget financing for a number of expenditure items. These are objective reasons that are currently associated with great difficulties in forecasting the development of events. The paper examines the regulatory framework concerning the pri-orities of budget policy in the medium term. The main areas include increasing the openness of budget procedures, the level of tax collection, the quality of tax administration, developing the institute of "pref-erential taxation", focusing on the most complete long-term forecasting and budget planning, optimizing budget financing with maximum focus on "goals-costs-results", focusing on the development of scientific research, radio-electronic, machine-tool industries, expanding the possibilities for using information technologies in the budget sector and strengthening control over the expenditure of budget financing.

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.

Legal characteristics of internal financial audit as a tool for public management of the quality of public finances (financial management)

The article examines the legal regulation of internal financial audit in relation to the system of state management of public finances. A legal and economic parallel is drawn between public financial management in economic and legal terms. According to the author, quality management is carried out in the following areas of public finance management assessment: quality of management organization in the field of public finance; the quality of the use of public resources. While internal financial audit contributes to the improvement of financial management and is aimed at minimizing risks in the implementation of budgetary procedures, the formation of proposals and recommendations for the effective management of «budgetary processes» in the course of financial management.The legal essence is considered and the types of budgetary procedures are identified, in the context of which the budgetary powers of the main administrators of budgetary funds are exercised.

Budgeting And Emotional Exhaustion In Covid-19 Pandemic: Survey From Indonesia

Management control practices will change in response to the global crisis. This study aims to investigate the behavioural impacts of adjustments in budget control brought on by the worldwide crisis, particularly during the transition to the COVID-19 pandemic. This quantitative study employs a questionnaire survey approach with a sample of 96 managers from West Java manufacturing enterprises. The results of the study show that the negative impact of the Covid-19 pandemic transition period is positively related to budget tightening, tightening budget control is positively associated with role conflict, enabling budget design can reduce the impact of budgetary tightness on role conflict, and role conflict is positively related to emotional exhaustion of budget holders. This study contributes to the body of knowledge on management control, particularly the budget, which sheds further light on how budgeting procedures change in times of crisis and what happens to employees as a result of those changes.

Inappropriate use of budget funds, implementation of budget expenditures or provision of loans from the budget without the established budget allocations or exceeding them

The full-scale military aggression of the Russian Federation not only violated the territorial integrity of our state, but also significantly deformed the entire system of global and regional security, increased the level and severity of criminal offenses. Non-targeted use of budget funds, in particular, spending from the budget or providing loans from the budget without the established budget allocations or exceeding them. In addition, a part of such subjects is a symbiosis of criminal organizations and the state, where the latter through its bodies uses criminal means, methods and types of activities to achieve its own goals or is completely dependent on such organizations, which, in turn, use state policy to concealing the essence of one’s activity.
 This article deals with the issue of misuse of budget funds, in particular, making expenditures from the budget or providing loans from the budget without the established budget allocations or exceeding them. The causes, consequences and possible ways to prevent such a negative phenomenon are analyzed.
 Cases of violations of budget procedures and violations that may have a negative impact on financial stability and the efficiency of the use of budget resources are considered in detail.
 The author of the article analyzes the legislative framework related to budget management and considers recommendations for strengthening control and responsibility for the use of budget funds. This article aims to raise awareness of the problem of inappropriate use of budget resources and contribute to the improvement of budget management to achieve greater efficiency and transparency in the use of public finances.
 This article is a valuable source of information for specialists, researchers and legislators who deal with the problem of inappropriate use of budget funds, implementation of budget expenditures or provision of loans from the budget without established budget allocations or exceeding them. It emphasizes the need for joint efforts of all interested parties to prevent this phenomenon and to ensure effective measures against misuse of budget funds, implementation of budget expenditures or provision of loans from the budget without established budget allocations or exceeding them.

Challenges and Opportunities in Adopting Capital Budgeting Practices

This study aims to examine the obstacles and potential advantages that small and medium firms encounter when using capital budgeting techniques. The present study employs a design that involves doing a comprehensive literature analysis to analyze various papers and prior research. The present study reveals a number of problems encountered by small and medium firms in the process of adopting capital budgeting techniques. One of the most significant obstacles that has a profound impact is the deficiency in understanding capital budgeting. The implementation of capital budgeting procedures is infrequently observed among small and medium firms, resulting in limited impact. Despite the potential benefits it offers to the development of small and medium firms, capital budgeting facilitates crucial decision-making processes pertaining to investments, long-term planning, and investment assessment for business owners. The practical implication of this study suggests that owners of small and medium firms should consider enhancing their financial knowledge or seeking professional experience in the areas of finance and management.

Controlling Public Expenditure in the Light of Constitutional Standards in Poland and the Czech Republic: Selected Aspects

Abstract This paper aims to answer the following research problem: what are the models of reasonable (proper) implementation of public expenditure arising from specific constitutional rules, and what are the standards for such spending? The authors present a thesis that the constitutional principle of legality, as well as the principle of public finance as a good which is protected constitutionally, sets general models, which consequently determine the standards of reasonable (proper) spending of public funds in the broad sense, i.e. in the context of legality and economy (purpose, economy, effectiveness and efficiency). Notably, these models and standards meet the postulate of complete financial control, i.e. at every stage of the budget procedure (budget design, planning and execution). The article uses so-called non-reactive research methods, based on the analysis of the content and availability of source information, i.e. theoretical and legal publications as well as legal regulations (especially constitutional ones) crucial from the point of view of the selected subject.

An empirical analysis using new instrumental variable methods of distributional effects of corruption on public expenditures in developing countries.

The online version contains supplementary material available at 10.1007/s43546-023-00452-1.

Внутренний финансовый контроль за достоверностью финансовой отчётности государственных (муниципальных) учреждений

At present internal financial control is an effective tool to improve quality of financial management in the public sphere. The reliability assessment of internal financial control is carried out in the process of internal financial audit and is an independent process of execution ensuring of budgetary powers during budget formation and performance, fulfillment of state tasks and disbursement of allocated funds. The formation problems of the system of internal financial control in the state (municipal) institutions are currently relevant. A number of normative regulations in the field of internal control were abolished and recommendations for accounting processes control were introduced, which significantly narrow the scope of control and lead to violations and errors. The purpose of the study is to develop theoretical, methodological and practical aspects of organization and conduct of internal financial control of state (municipal) institutions to confirm the reliability of financial statements, transparency and correctness of budget process, and the legality of budget procedures. Abstract-logical method, discussion method, normative-legal study, methods of comparison, matching technique, hypothetical assumption, grouping method and the author's expert assessment of the current state of the issue were used in the article to study the multidimensional problems of internal financial control. As a result, the assessment of the main local acts in the field of internal financial control is given, the necessity and practical examples of data control automation processes are substantiated, components of the internal financial control system in a public institution are considered, methods and procedures of internal financial control are summarized, and control actions are proposed to confirm financial statements reliability.

The Role of Participatory Budgeting Management in Reducing the Budget Slack in an Islamic Education Institution

This study aims to explore participatory-based budgeting procedures and their role in reducing budgetary slack in Islamic boarding schools. Using a qualitative approach, the research method was conducted at a pesantren-based madrasah in the City of Kudus involving foundation administrators, school principals, leaders, teachers, and plan participants. Primary and secondary data were collected through interviews, observation, and documentation. The data were then analyzed using descriptive analysis. The findings of this study reveal that budgeting in Islamic boarding schools is based on participatory budgeting. Bottom-up budgeting is done from the lowest unit in the organization. The lower unit is the party with a deeper understanding of the smallest practical problems. Having the same responsibility for preparing the budget, lower units are expected to allocate budget items proportionally. Even though we hope that the participatory pattern will not cause slack, the facts show the potential for budgetary slack. This relaxation occurred because of a conservative attitude to anticipate uncertain conditions.

СОВЕРШЕНСТВОВАНИЕ БЮДЖЕТНЫХ ПРОЦЕДУР, НАПРАВЛННЫХ НА ПРЕДОТВРАЩЕНИЕ ВЛИЯНИЯ УХУДШЕНИЯ ГЕОПОЛИТИЧЕСКОЙ И ЭКОНОМИЧЕСКОЙ СИТУАЦИИ НА РАЗВИТИЕ ОТРАСЛЕЙ ЭКОНОМИКИ

The rapidly changing geopolitical situation in the world has launched the process of transformation of the state's development strategy, forcing the Russian economy to adapt to modern conditions. Initial steps will be ineffective and long-term without the development of appropriate relevant mechanisms for the implementation of measures aimed at achieving the goal. One of these mechanisms is the full, targeted and timely fi- nancing of the event. Modern methods of redistribution of available financial resources have a significant impact on the timeliness of the implementation of the measures taken, and therefore, it is necessary to analyze the ongoing budgetary procedures, monitor their relevance and efficiency in budgeting practice.

HORIZONTAL EQUITY, SELF-EFFICACY, AND BUDGETARY SLACK: COMPARING AMERICAN AND BRAZILIAN CULTURES

This study analyzed the effect cross-cultural differences in perceived horizontal equity and self-efficacy have on the creation of budgetary slack. This research addressed the gap in the role of ethical ideology in business by empirically examining the influence of culture on an individual’s ethical ideology and their propensity to create budgetary slack. A total of 803 subjects included 413 individuals from America and 390 from Brazil. A series of analysis of variance testing identified statistical significance between horizontal equity and the creation of budgetary slack, as well as statistically significant differences between low/high years of experience and budgetary slack levels. Additional cross tabulations were included related to both horizontal equity as well as self-efficacy. The results highlight budgetary procedures that may impact a person’s perceptions of fairness in pay compared to colleagues or peers with similar positions in organizations. Findings suggest that employees with more years of professional experience could benefit from education on potential negative unintended consequences of creating slack in their budgetary decisions. Our findings may be used by managers to gain awareness of this significance and take necessary steps to create equitable pay policies and budgetary targets. Study results indicated no statistical difference in slack levels between Americans and Brazilians.

Problems of Ensuring the Balance of Regional Budgets in The Conditions of Sanctions Pressure

Having successfully passed the tests of the pandemic, the Russian economy has faced new challenges. Unprecedented sanctions have been imposed on our country by unfriendly States. They affected the Bank of Russia and are related to the management of reserves and assets, as a result of which more than half are blocked. A number of Russian banks have disconnected from the SWIFT payment system and restricted cross-border transfers. Against the background of such a difficult geopolitical situation, the regional economy and the budget system were under serious threat. However, the «pandemic» experience gained allowed the Government of the Russian Federation, the Parliament, and regional management teams not to react slowly to the events taking place and take the necessary steps to contain external sanctions pressure. Priority actions were aimed at stabilizing the situation in financial markets, tax incentives and reducing regulatory restrictions, import support, speeding up budget procedures and the use of funds from state-owned companies, support for SMEs and system-forming enterprises. The rights of the Government of the Russian Federation have been expanded and the opportunity has been given to direct the funds of the NWF for the purchase of Russian government securities and shares of Russian issuers, to identify specific investment projects in the tourism industry. In addition, legislative norms have been adopted that allow regions to respond quickly to changes in the geopolitical situation and the economic situation and reduce the impact of negative factors on the budget system. This article examines the issues of the state of regional budgets in modern conditions, analyzes the state measures taken to preserve the stability of the budget system, and also suggests mechanisms aimed at further strengthening and stabilizing the situation in the regions to ensure the balance of regional budgets.

Fighting back? The role of the European Parliament in the adoption of Next Generation EU

ABSTRACT The article aims to assess how and why the EP played the role of EU democratic institution par excellence in the procedures leading to the adoption of the anti-pandemic measures from February 2020 till February 2021: Which arguments has the EP sought to advance in the various stages, for what reasons, and how successful it was? Indeed, while it is undeniable that certain contextual elements – the nature of the crisis, the creation of EU debt and the EU competences affected – did play a role in the advancement of the EP’s agenda, it is argued here that in the aftermath of the pandemic the EP has managed to become more aware of its own institutional role compared to the previous financial crisis and to present itself as a truly supranational institution representing the whole European citizenry and committed to improving the transparency and the democratic accountability of the EU budgetary procedures.