Budget Process Research Articles

The concept of "budget execution" as a stage of the budget process and definition of its principles

The article is devoted to the study of the concept of "budget execution” as a stage of the budget process, taking into account the fact that lack of clarity in terminology and ambiguity in defining the key principles of budget execution create obstacles for qualitative analysis and effective management of the state's financial resources. Most of all, the importance of budget implementation lies in its role in providing financing for various areas of the economy, social programs and the development of the state as a whole. However, the lack of a clear definition of this concept and the uncertainty of its key principles create complications for the correct distribution and effective use of budget resources. Therefore, the study of the problem of defining the concept of "budget execution” involves the analysis of theoretical aspects of this process. Determining the basic principles of budget execution is critical to solving this problem, as it forms the basis for developing effective strategies for managing financial resources. It was found that the main task at the stage of budget execution is to ensure the full and timely receipt of taxes and other mandatory payments, as well as the financing of activities within the limits defined by the budget act. During the implementation of the budget, the bodies of representative and executive power at all levels, as well as local self-government bodies, make adjustments to the budget allocations that arise from changes in the exchange rate and uneven revenues to the budget. In addition, the goal of budget execution is to achieve compliance between actual budget receipts, expenditures from it, and budget- legal norms that establish the sources and volume of these revenues, as well as the directions and volumes of expenditures. Thus, the problem of defining the concept of "budget execution” and establishing its basic principles requires attention for further improvement of the budget process and effective use of financial resources. Ultimately, the article aims to systematize and clarify the terminology related to budget execution, as well as to reveal the key aspects of this stage of the budget process with an emphasis on those aspects that determine the efficiency and effectiveness of this process.

INTERNAL PLANNING AND ORGANIZATION OF INNOVATIONS IN ENTERPRISE ECONOMIC MANAGEMENT

The reform of economic management systems should be recognized as a long-term process, with gradual enhancements and innovations made in practical application, ultimately promoting sustainable enterprise development. This study delves into the internal mechanics of enterprise economic management innovation, primarily examining the aspects of planning and organization, within manufacturing enterprises like Midea Group. This paper extensively explores the relationship between the formulation and management of long-term and short-term plans, the philosophy of management, the current state of production management, and the overall development strategy within the field of enterprise economic management. It primarily emphasizes the following three points: 1) Enterprises must adjust their management philosophy to align with their development trajectory, the dynamically changing market competition landscape, and the evolving contours of the contemporary environment; 2) The trajectory from low-efficiency to high-efficiency production management is closely linked to the production budget and decision-making processes of enterprises; 3) The prevalence of internal strategic management within enterprises and the optimization level of resource allocation play a pivotal role in measuring the innovation quotient of internal planning management. Simultaneously, this paper places significant emphasis on the analysis of organizational innovation structures, indicating that enterprises should establish sound management systems to enhance internal efficiency and competitiveness. Moreover, enterprises should align themselves with market dynamics and trends, avoiding risky behaviors to ensure the long-term success of economic management practices. Additionally, enterprises must continually innovate and adjust organizational structures to adapt to market changes and development requirements, thereby achieving sustained growth.

ВІДПОВІДАЛЬНІСТЬ ЗА БЮДЖЕТНІ ПРАВОПОРУШЕННЯ

Budget Violations are a Significant Component of the Financial-Legal System in Ukraine, Regulating the Budgetary Process and Financial Relations among Its Participants. The article structures important aspects of budgetary violations, their legal responsibilities, and sanctions provided for by the relevant legislation. The Ukrainian system of responsibility in the field of budgetary legal relations encompasses a wide range of subjects and sanctions used to ensure compliance with financial norms and rules. This system is regulated by the current legislation, including the Budget Code of Ukraine, the Code of Ukraine on Administrative Offenses, and the Criminal Code of Ukraine. The definition of budget violations is a key aspect of analyzing this topic. A budget violation is the failure of a participant in the budget process to comply with the established procedure regulating the compilation, review, approval, amendment, and execution of the budget or the report on its execution. Participants in these violations include budget managers, recipients of budget funds, and local self-government bodies. Responsibility for such violations covers civil, disciplinary, administrative, and even criminal liability. For violations in the field of budgetary relations, the legislation provides a specific list of influence measures but also allows for the establishment of other sanctions through subordinate acts. Violations such as missing budget statements, improper budget fund allocation, and other forms of non-compliance can trigger the imposition of financial sanctions. An important characteristic is the specificity of budgetary relations, primarily having an imperative character and thereby constructing the structure of administrative responsibility in this area using formal elements of administrative-criminal acts. A comprehensive analysis and regulation of budget violations are essential elements of the stability and development of the state, ensuring compliance with financial norms and the accountability of budget process participants.

UNCOVERING THE PROCESS OF GENDER-RESPONSIVE BUDGETING OF THE PUBLIC SECTOR IN GORONTALO

This research aims to effectively analyze the gender-responsive budgeting process in the public sector that takes gender interests into account in the Gorontalo Provincial Office of Women's Empowerment and Child Protection. This research uses qualitative methods with a qualitative descriptive approach. The data sources are primary data and secondary data. Data collection techniques include observation, interviews, documentation, and literature research. Data analysis techniques use the following steps: data collection, data reduction, data display, verification, and conclusion. The results showed that there were three gender-responsive activities carried out in Gorontalo, namely increasing women's economic productivity, increasing institutional capacity for gender mainstreaming, and institutional strengthening. The management of gender-responsive budgeting starts with gender-responsive budget planning, budgeting gender-responsive activities, implementing gender-responsive budgeting, and monitoring and evaluating gender-responsive budgeting. Through gender-responsive budgeting, it is expected to make a major contribution to the achievement of women's empowerment goals and realize gender welfare and justice in various fields of development in Gorontalo Province.

INCREASING THE TRANSPARENCY OF THE BUDGET PROCESS OF UKRAINE IN CURRENT CONDITIONS

The transparency of the budget process is a guarantee of democratic governance and ensures the state's accountability to citizens. In Ukraine, a transparent budget mechanism is being implemented with the participation and active support of civil society. In 2015, a single web portal for the use of public funds "Electronic data" became operational (in 2017, the portal went from test mode to official mode), which became an important tool in the fight against corruption. An analogue of "Electronic data" is the search and analytical system “.007” — an accessible and easy-to-use web service for processing and convenient visual presentation of information on the use of state funds. Also, the state web portal “Budget for citizens” (Open budget) is active and effectively implemented today. It is an official state portal with open data on public finances: state and local budgets. The portal presents a glossary of budget terms, provides information about the budget process and its participants, and presents indicators of state and local budgets. The implementation of the principles of publicity and transparency guarantees a reliable budget, ensuring public trust in the state budget policy, and also increases revenues to the budgets of various levels and strengthens state control.

Фінансово-бюджетна спроможність розвитку вітчизняних суб’єктів підприємництва

The purpose of the article is to substantiate the theoretical and methodological foundations for the development of business entities and to develop practical recommendations based on the world experience of functioning in the context of transformation of interbudgetary and financial relations. To achieve this goal, the author sets the following tasks: to determine the peculiarities of business entities' activities at the present stage; to summarize the characteristics of business entities' development in the context of transformation of interbudgetary relations; to characterize financial and budgetary relations at the level of a specific business entity, taking into account budgeting as a system; to propose directions for modernization of financial and budgetary relations with a view to harmonizing the interests of business entities and adapting to the tools of program-targeted management. The priority and effective tools for the development of business entities under martial law are as follows: the introduction of a system of state support that allows to start and, in some cases, accelerate the restoration and modernization of the material base. The author proposes directions for improving the budgeting process on the example of a particular enterprise.

The budgets development of international projects in the context of improving the efficiency of foreign economic activities

Introduction. Effective management of international projects in modern conditions of globalization and ever-increasing competition is becoming an important success factor for many enterprises, requiring, at the same time, large intellectual, resource, and financial costs. One of the key elements of successful project implementation is a properly formed budget, which determines financial resources and costs necessary to achieve the set goals. However, despite the fact that budgeting, the result of which is the formation of the budget, is not a new practice of domestic organizations, difficulties and problems still arise in its implementation. The purpose of the paper is to identify the problems of the budget development of international projects by domestic enterprises in the context of increasing the efficiency of foreign economic activity and to develop recommendations for their solution. Results. The budget is the result of budgeting, which is an integrated management technology that is directly implemented at the first stage of the management process and forms the basis for its implementation. In the process of developing the budgets of international projects, a detailed analysis of the effectiveness of the use of financial resources, formed sources after the completion of the project and the ineffective use of information in the field of risks is often not carried out, which often leads to an increase in the expenditure part over the revenues in the budgets of international projects. In order to ensure optimal use of resources, improve the budgeting process and make better management decisions, the management staff of domestic enterprises is recommended to implement post-project analysis as the last stage of developing international project budgets. It is a post-completion evaluation of the project, analyzing actual and projected budgets for time, cost, and quality. And also to include the stage of risk management in the process of developing the budgets of international projects. This phase will involve justifying resource allocation decisions and carrying out an assessment of the cost of the measures to be taken to minimize, accept, eliminate or transfer risks. Conclusion. In conditions of uncertainty, recommendations for domestic enterprises to carry out post-project analysis to obtain information about existing advantages and disadvantages in the formed preliminary budgets and the introduction of a risk management stage in the development of the budget at all stages of the implementation of an international project will allow domestic companies to be more efficient in the implementation of foreign economic activities and to use your finances rationally.

Mathematical modeling of the regional budget formation procedure

The regional budget is a key element of the regional financial system. According to budget legislation, the formation of the budget of the subject of the Russian Federation is carried out by state authorities of the constituent entity of the Russian Federation in accordance with the requirements established by the Budget Code of the Russian Federation, as well as the laws of the subject of the Russian Federation and other regulatory documents adopted in accordance with it. The procedure for forming a regional budget is quite well regulated, but poorly formalized. It should be noted that budget planning tactics and strategy differ significantly, since long-term goals are set on the basis of the development of strategic plans. The purpose of this study is to implement an approach to the formation of the regional budget according to the optimal structure. The uniqueness of the concept lies in the development of the target vector and positioning of budget planning as a Bayesian process. The criterion of optimality is the location of a multidimensional point expressing the composition of the budget on a straight line reflecting the target vector. Such an approach in relation to the procedure for the formation of the regional budget has not been considered before. The solution to this problem involves the formation of a target vector for both its revenue and expenditure parts. The methodological tools used in the work are classical methods of analytical geometry and an algorithm for forming a regional budget. To increase the adequacy of the results when modeling the regional budget, it is advisable to add the condition that the random process belongs to the Bayesian type, then, in addition to the obtained values, the share of the item in the regional budget is also taken into account. The Bayesian process takes into account conditional probabilities. In this work, the relative measure of achievement of each budget item of the target state in the base period acts as conditional probabilities. The article uses an illustrative example to show the use of the proposed methodological approach for the formation of an optimal regional budget within the framework of revenue and expenditure parts for items approved by Russian legislation. The construction and analysis of a regional budget allows us to take a new approach to solving this problem, and most importantly, to create an optimal budget while saving intellectual and time costs for participants in the budget process. The results of mathematical modeling of the regional budget are presented in the form of an algorithm, which makes it possible to consolidate the relevant procedures for calculating the revenue and expenditure parts of the budget in regulatory documents (at the federal and/or regional level) for their further use in the budget process.

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.

Analisis Penganggaran Modal Pekerjaan Perluasan Terminal Bandara Internasional Lombok PT. Angkasa Pura 1 (Persero)

This study aims to analyze the budgeting process for the Expansion of Zainuddin Abdul Madjid Lombok International Airport Terminal at PT. Angkasa Pura 1 (Persero). The output of the final planning report will be analyzed using a comparative description method of aspects of company budgeting through the perspective of capital budgeting or investment, which is more project management or engineering system than investment in securities or others. The budgeting of Lombok International Airport Terminal Expansion Work from the search results has fulfilled some aspects of good corporate budgeting, although some strategic predictions missed expectations. The company's own capital budgeting in application and practicality there are several weaknesses in predicting future returns from the value of investments issued due to lack of integration with the company's strategic objectives or to top-level regulations that must be met, especially in the acquisition of asset values or fixed assets with significant value. With this paper, it is hoped that it can generate awareness of the importance of evaluating capital budgeting before the budget is issued to be tested for implementation from a value and time perspective.

Budgeting Management for the Top Priority and National Priority Programs of Nawacita

Among many of the government-sector programs are the Top Priority and National Priority Programs. These programs translate the government's vision, which is known as Nawacita. It is undeniable that the Top Priority and National Priority Programs certainly require a budget. However, whether the Top Priority and National Priority programs received preferential treatment in budgeting still became an issue. For this reason, this study was intended to analyze whether there was any special treatment given to the budgeting process compared to other programs in general. This qualitative research utilized a case study model based on observations, interviews, and literature studies on Performance-Based Budgeting (PBB) management in the public sector. It was revealed that there was no special treatment for budgeting the Top Priority and National Priority Programs. This study also found several problems related to the budgeting coordination, so that activity plans were not fully following the budget. Finally, this study suggested that a greater need for budgeting skills and the importance of detailing budget information were also crucial.

Enhancing the Role of Parliament in the Budget-Making Processes

A budget is an important financial plan that provides a framework for the effective allocation of resources and is thus vital for ensuring effective public financial management. Parliaments play a critical role in ensuring that budgets deliver their intended outcomes. It is the responsibility of Parliaments to exercise oversight roles over the executives’ budget proposals, scrutinise budget information, and depending on the government system in place, approve, amend, or draft a new budget. The aim of this paper is to explore mechanisms that can be used to enhance the role of Parliament in budget-making processes by focusing on gender budgeting, budget reforms, and capacity building through the establishment of Independent Financial Institutions (IFIs) such as Parliamentary Budget Offices (PBOs) as mechanisms of enhancement. Based on the aim of this paper, the researcher chose to use a descriptive research design and employed a desktop research approach through a literature review. The relevant data was collected from various sources such as books, journals, and the internet. The online sources included in the academic database and government portals containing information relating to Parliaments, budgeting processes, and budget management. The findings suggest that Parliament plays an important role in ensuring that a budget is transparent, accountable, and responsive to the needs and demands of the public, including women and marginalised groups. It is also evident that some of the main challenges faced by Parliament to ensure an effective budgeting process include limited resources, political interference, and inadequate public participation. The study concludes that parliamentary involvement during the budget-making process is critical and therefore recommends strengthening the institutional capacity of Parliament, promoting public participation in the budget process, and ensuring gender-responsive budgeting in all stages of the budget cycle. Keywords: Parliament; Budget; Budget-making processes

Investigating young people’s involvement in participatory budgeting

It is widely believed that assisting young people to participate in community affairs is a potent way to contribute to both youth and community development. One way in which youth can become involved in their communities is through participatory budgeting (PB) processes. This study investigates young people’s understanding of, and experience with, the PB process organized by Toronto Community Housing in Canada. The findings of our qualitative study suggest that some youth understand the primary purpose of PB to be the betterment of the community as a whole; that motivation to become involved can be enhanced through appropriate identity-formation and adult support; and that youth can serve as a litmus test for the fairness of the deliberative practices associated with PB.

Antecedent Budgeting Affecting Operational Productivity Moderated by Sustainable Development Goals

The purpose of this paper is to provide a deeper insight into the relationship between budget and sustainable development, and how organizations can utilize it to achieve better results in various aspects. This paper uses a qualitative research method with literature related to the variables in this paper, which will look at the implementation of the variables in this paper, the literature comes from international journals with a span of ten years. Integrating sustainable development goals into their budget process, businesses can create a more positive impact on the environment and society and ensure better financial accountability. Adopting a more sustainable approach in budgeting and integrating the principles of the SDGs, businesses can contribute to sustainable development and achieve better operational productivity, while fulfilling their social responsibilities.

PELATIHAN PENYUSUNAN ANGGARAN PENJUALAN DAN PRODUKSI PADA DASA WISMA DAHLIA I TRUNUH DI KLATEN SELATAN

Budgeting is a crucial activity that must be undertaken by business practitioners. Without a well-established budgeting process and allocation, management would find it challenging to develop and achieve the company's goals in enhancing profitability. Therefore, this research aims to provide training related to the formulation of sales and production budgets. The method employed in this engagement is through providing training and lectures. Additionally, before receiving the training, participants in the engagement will undergo pre-tests and post-tests. Following this engagement activity, the managed businesses are expected to progress further and potentially increase the income of the women members of Dawis Dahlia I, as errors in sales and production estimates are minimized.

Research on Internal Control Optimization of Geological Team A

At present, there are still many areas for improvement in the internal control construction of Geological Team A. The construction of systems, organizations, decision-making, information systems, and other aspects is weak, and the processes of budgeting, revenue and expenditure, procurement, and construction are not standardized. The execution and supervision of internal control are also inadequate, and the effectiveness of internal control is greatly reduced. This has exposed many risks in the business development of Geological Team A, which has long been detrimental to the survival and competition of the unit in the industry. Therefore, this article takes Geological Team A as the research object, based on the framework of "Unit Internal Control Standards", and referring to relevant research on internal control, geological exploration institutions, and internal control of public institutions at home and abroad, analyzes the current situation of internal control of Geological Team A from the unit level and business level, summarizes the problems of internal control, and proposes feasible optimization measures based on the actual situation of the unit, Intended to improve the internal control system of Geological Team A, enhance its comprehensive strength, and provide some reference for the internal control construction of other geological exploration institutions.

A Tiered Model for Data Management, Curation, and Sharing Support in Grant Proposals and Budgets

Recent trends in research funder policies and guidelines increasingly point to requirements for more detailed plans for data management, curation, and sharing with an emphasis on including allowable costs in grant budgets to support these activities as well. As a result, libraries and other collaborating units at academic institutions have an opportunity to develop streamlined models that allow researchers to incorporate institutional resources for data management, curation, and sharing into their grant proposals along with costs to support these resources. While the current literature contains examples and discussions of general funding approaches to activities like data curation and long-term preservation, little has been written on formal models or strategies for incorporating data management and curation support into the grant proposal and budget process itself. This article describes the development and implementation of a tiered grant support model at the University of Colorado Boulder that provides three levels of services, infrastructure, and expertise to researchers who are looking to incorporate support and costs for data management, curation, and sharing into their grant proposals. The article also presents lessons learned since the soft launch of the grant support model as well as key challenges that have emerged. This model may serve as an example for other institutions to use or adapt to continue to help researchers meet funder requirements while simultaneously increasing the visibility of existing data management and curation resources and identifying potential new revenue or cost recovery streams.

Decision support in the budget management of a public institution: a constructivist multicriteria model

The need for having controls that provide support for decision-making and the improvement of management techniques encourages managers to seek greater efficiency in the use of public resources. Utilizing tools that allow for a more in-depth evaluation and analysis, using clearly defined and transparent criteria encompassing the public budget, assists in decision support and enhancing the budgeting process. By defining criteria for each context, those responsible gain the means to support their decisions, backed by consistent and measurable information. In this way, this study aimed to construct a multicriteria performance evaluation model to support the budget management of a public institution, based on the needs and perceptions of its budget manager. To do this, the MCDA-C methodology was adopted as the methodological procedure. This instrument allowed for the identification of 34 descriptors considered relevant by the decision-maker, an understanding of the impact of their decisions, and the recommendation of improvement actions. Furthermore, the study compared the criteria identified in the literature, directed toward performance evaluation and public budget, with the descriptors highlighted in the model. It was found that some concerns of the decision-maker, listed in the model, are not present in the criteria identified in the literature, resulting from a constructivist bias. As a contribution, the model provides a new tool to support the manager in making decisions regarding the use of public resources, as well as serving as a reference for other institutions and in the development of further research.

Integrating climate change and regulating budget processes in Georgia

An important priority for managing finances at the state level in Georgia is the mid-term and annual budgetary process and the gradual integration of the negative consequences caused by climate change in this process. Perfection of state finance management harmonized with international standards is an integral part of the budget system and is an opportunity to connect the goal of climate change and sustainable development. Today, economically developed countries and Georgia are well aware that one of the key directions in assessing the country's fiscal risks is the assessment of risks related to climate change and the possibility of potential consequences and losses arising from it, and their consideration in budgetary processes. Also the importance of climate change mitigation and adaptation costs, which in turn represents a step forward towards the goal of sustainable development. The paper analyzes the step-by-step approach of integrating climate change into the medium-term and annual budgeting process in Georgia, finding the necessary tools and means to update the action plans and budget programs related to climate change in the budgetary processes, which is still a challenge, remains open and has not yet been established as a final result.

НАПРЯМИ РЕФОРМ І СОЦІАЛЬНО-ЕКОНОМІЧНОГО РОЗВИТКУ УКРАЇНИ В ПЕРІОД ПІСЛЯВОЄННОГО ВІДНОВЛЕННЯ

Широкомасштабне вторгнення РФ на територію України вплинуло на життя пересічних українців, раптово перетворивши їх на біженців. Решта громадян змушені жити в умовах війни і нести на собі тягар важких випробувань і страждань, принесених війною. Війна також є глобальним викликом, що похитнув основи фінансово-економічної стабільності держави, змінив пріоритети державної політики в різних галузях, переформатував міжнародні відносини. Водночас війна – це шанс для суспільства, щоб змінити чинну недостатньо ефективну систему суспільно-політичного і економічного життя країни. Уже сьогодні, коли на фронті тривають бойові дії, слід напрацьовувати чіткий алгоритм дій і формувати власну місію і візію розвитку України, проведення структурних реформ у контексті майбутньої європейської цивілізаційної суб’єктності держави.Обґрунтовано, що після війни в новій економічній політиці людина як головна продуктивна сила і рушій економічного прогресу повинна бути в центрі оновлення й розвитку країни, яка має перетворитися на невід’ємну частину формування європейського і міжнародного цивілізаційного простору. Звісно, це вимагає змін у підходах до формування і реалізації бюджетної, соціальної, екологічної політики країни.Висвітлено хронічні недоліки, які стримували динаміку соціально-економічного розвитку країни як до війни, так і нині, в умовах воєнного стану. Акцентовано на необхідності дотримання учасниками бюджетного процесу основних принципів бюджетної системи, а саме ефективності й результативності використання бюджетних коштів.Визначено напрями реформ і перспектив соціально-економічного розвитку країни, які мають змінити систему державного управління економікою, удосконалити механізми регулювання в різних галузях, підвищити ефективність використання ресурсів, у тому числі фінансових.