Budget Reform Research Articles

Budget,Data,Development Performance Based Budgeting Model in Village Government

This article analyzes what arises from the use of traditional budgets with budget reforms, namely applying Performance-Based Budgeting (PBB) to the APBD. Appropriate, clear and real application and accountability are needed so that government and development violations can take place in an efficient and successful manner. The development of community needs will become the basis for thinking about how to operate autonomy so as to achieve the goal of increasing the standard and quality of people's lives. This article uses a qualitative method, namely data acquisition which is carried out through a literature review study and with the stages of presenting data and results of research data. The results show that there are significant differences in financial performance based on economic ratios, effectiveness, and regional independence ratios indicating that efforts to implement performance-based budgeting have been able to reduce the uneconomic use of regional expenditures used by the government and the ability of local governments to realize planned revenues compared to set targets has been running effectively. Then for benchmarks and performance through health and education services it shows an increase in the human development index number.
 Keywords: Budget, Data, Development, Government

To the question of openness and transparency of the budget of the Republic of Uzbekistan

In this article, the author presents the facts and analysis of how to ensure budget transparency based on the same budget reforms, as well as discusses and investigates topical issues of generating budget revenues at all levels. The sources of formation and the main directions of increasing the stability and increasing the revenues of budgets of all levels are studied. In order to ensure the openness of the budget process, an information portal “Open Budget” has been developed and launched, which contains detailed information on the execution of the state budget, its parameters, components and forecast indicators. The portal also provides an opportunity for citizens to determine the directions for the expenditure side of local budgets.

Совершенствование межбюджетных отношений на региональном уровне (на примере Республики Крым)

In the modern conditions of political and economic instability in the economy, interbudgetary relations in the regional budgetary system are of particular importance, they can be additional sources, a “driving force”, provided they are improved in the process of application. The purpose of the study is to create a synthetic model for interbudgetary relations improvement in the budget system, expressed in the principles and instruments of state regional policy in relation to municipalities. The study of the budget distribution was carried out using information and analytical and retrospective analysis based on statistical, graphical and calculation methods. The result of the study is the creation of a synthetic model for interbudgetary relations’ improvement in the regional budgetary system, which includes: analysis of the revenues of the consolidated budget, which revealed their insufficiency to fulfill their powers to meet public needs; in the form of grants, subventions, subsidies and other interbudgetary transfers, since municipalities need independence, which is not in the level of balancing the budgets of municipalities through the budget equalization system, but in the promotion of social, economic, innovative development of regions, jobs creation to increase the welfare of the population. Improvement of interbudgetary relations depends largely on the economic development of the region and its municipalities. In the real sector of the economy, tax instruments are used, and the revenue part of the consolidated budget is formed. The regions need budgetary reforms aimed at measures to support the liquidity of budgets in terms of their sources development. The study was conducted on the example of municipalities of the Republic of Crimea.

Budgetary Reforms for Growth and Poverty Reduction in Pakistan (The Mahbub-ul-Haq Memorial Lecture)

Webster’s Dictionary defines institution as “an established order, principle, law or usage as an element of organised society or of civilisation”. There are other interpretations of this term, depending upon the context for which the term is needed. For the purposes of the theme of this 19th Annual General Meeting of the Pakistan Society of Development Economists (PSDE), “Institutional Change, Growth and Poverty”, I find this well-crafted Webster Dictionary definition to be appropriate and adequate. There is now strong recognition that institutional reforms are necessary to sustain rapid growth and poverty reduction in developing countries. However, it is first necessary to identify and specify what these institutional reforms are. A number of systematic efforts to define institutions in an analytical context have been undertaken. For example, the World Development Report (WDR) 2002 of the World Bank focused on “Building Institutions for Markets” as the core theme of the report.1 There has been emphasis on aspects of institutions in other WDRs as well, including in the WDR 1997 on the Role of the State,2 the WDR 2003 on Environment,3 and the most recent WDR 2004 on Service Delivery.4 Each of the WDRs builds on the analysis of earlier WDRs and provides analysis of the institutional context of the development challenge in concrete terms to make associated reforms implementable. This is indeed a laudable effort and provides a fairly rich analytical base over which one can build on to move the institutional reform agenda forward.

Features of Disclosure of Information about Assets of Public Administration Sectors in the Balance Sheet

The article presents the development of the accounting of the public sector during the budget reform implemented in Russia in the late XXth — early XXIst centuries. The study showed a close relationship between the information request of users and the content of public sector accounting statements. It is found that the modern content of the balance sheet — one of the most important reporting forms is a consequence of changing approaches to the management of state (municipal) finances and objects of state (municipal) ownership, as well as the information needs of key users of reporting information. The article reveals the features of the first system — forming element of the balance sheet — an asset, and the criteria for assigning objects of public sector entities to assets. The analysis of federal accounting standards of public finance and other regulatory legal acts allowed us to systematize the requirements for the valuation of assets in the balance sheet. It is concluded that the expansion of valuation methods increases the qualitative characteristics that ensure the usefulness of reporting information for users. At the same time, the use of new methods of valuation of assets is problematic due to their insufficient development. The obtained results can be used for the further development of the valuation of objects, as well as by practitioners for the preparation of the balance sheet and the implementation of state financial control.

Crisis management, new constitutionalism, and depoliticisation: recasting the politics of austerity in the US and UK, 2010–16

ABSTRACT Political economy literature has sought to explain the rapid shift from fiscal stimulus to austerity after the 2008 crisis. Influential contributions highlight the relative explanatory value of ideational or structural factors in contributing to post-crisis austerity. Drawing on Stephen Gill’s (1998) analysis of new constitutionalism and Peter Burnham’s (2001) understanding of depoliticisation, I contend that these frameworks offer a more useful lens to understand how post-2010 austerity in the US and UK was shaped by an enduring consensus on macroeconomic policy governance consolidating during the 1990s. Examining the role of fiscal mechanisms such as PAYGO in the US and the ‘Fiscal Golden Rules’ in the UK, and the operational independence conferred to central banks, I illustrate how Third Way governments institutionalised budgetary reforms and distanced macroeconomic policymaking from popular political contestation. Despite temporary lapses with this logic of fiscal restraint, as well as the rollout of historic monetary policies after 2008, I argue that these practices became deeply embedded within state institutions. Focusing on PAYGO in the US and the OBR in the UK, I show how policymakers redeployed policies and practices from the 1990s amidst the 2008 crisis to externalise responsibility for implementing austerity measures.

Can performance-based budgeting reform improve corporate environment in ESG? Evidence from Chinese-listed firms

Finance is a pillar industry of national governance. It also provides a solid guarantee for achieving the official Double Carbon target. The question of how to forefront the role of environmental governance in the reform of fiscal and taxation systems, whilst also motivating enterprises to enhance Environment in Environmental, Social, and Governance (EESG) considerations is worth investigating in depth. This study takes A-share listed companies in China from 2001 to 2020 as examples. The effect of Performance-Based Budgeting (PBB) reform on the EESG of these enterprises is empirically examined through quasi-natural experiments using a multi-time difference-in-difference model. We find that PBB significantly optimizes the EESG of the enterprises. The placebo test, the difference-in-difference method, and a series of other robustness tests all support this conclusion. Furthermore, it is suggested that the environmental governance effect of PBB is more significant in areas with heavy financial pressure and stronger government audit. The environmental governance effect of the PBB reform is significant for enterprises with government contracts, strong green innovation capabilities, or high financing constraints. The mechanism test is performed, and the results suggest that the influence mechanism of this environmental governance role lies in the fact that PBB has improved environmental protection subsidies and enhanced fiscal transparency. Through the economic consequences test, we find that enterprise EESG can bring economic benefits to enterprises, which is reflected in the improvement of enterprise return on total assets, price-to-book ratio, and total patent authorization. This study enriches literature on the economic consequences of PBB, and has significance in deepening current fiscal and tax system reform, vigorously optimizing the major strategy of carbon peak and carbon neutrality.

Strategic priorities of the country's debt policy

Relevance of the research topic. Ensuring purposeful influence on social development requires the formation and implementation of an effective debt policy based on improving the institutional support of financial and budgetary reforms. Formulation of the problem. Important tasks in modern conditions are: increasing the efficiency of the debt mechanism and ensuring debt sustainability; improving the debt instruments of fiscal policy; optimizing the structure of the debt portfolio. Analysis of recent research and publications. Problems of formation and implementation of debt policy are quite common in the research of: D. Ricardo, R. McConnell, J. Mill, P. Samuelson, A. Smith, M. Friedman, I. Zapatrina, G. Kucher, L. Lysyak, I. Lukyanenko, A. Mazaraki, M. Pasichnyi, I. Chugunov and others. Selection of unexplored parts of the general problem. The above issues are relevant in connection with the deteriorating trend of socio-economic development, increasing military aggression against Ukraine, which requires a number of specific tasks in the field of debt management. Problem setting, research goals. The objectives of the study are: to reveal the role of debt policy at this stage of development of public relations; substantiate the peculiarities of the application of debt instruments of fiscal policy. The purpose of the study is to reveal the strategic directions of debt policy in modern conditions. Method or methodology of the study. The article uses a set of research methods: a systematic approach, structuring, synthesis, etc. Presentation of the main material (results of work). The role of debt policy at this stage of development of public relations is revealed. The peculiarities of the application of debt instruments of fiscal policy are substantiated. The strategic directions of debt policy in modern conditions are determined. Field of application of results. The results of the study can be used in the formation and implementation of debt policy. Conclusions according to the article. The validity of the implementation of debt policy is an important condition for achieving national socio-economic interests. In modern conditions it is necessary to understand the complexity and multidimensionality of the issues raised. At the same time, one of the most important tasks is to increase the efficiency of the debt mechanism and ensure debt stability.

The perception of employees on performance‐based budgeting reforms in developing countries: The perspective from Ghana

AbstractIn the last few decades, the use of performance management to correct state finances has led to the (re)emergence of performance‐based budgeting (PBB), with the belief that it will reveal where scarce resources should be concentrated. The efficacy of PBB, however, continues to be debated. This paper attempts to contribute to the discussion, by examining the case of Ghana from the perspective of budget officers. How do budget officers perceive the PBB? It is argued that while PBB is professed as a useful budgetary mechanism, there are challenges that need to be addressed if it is to achieve its objectives.

Analysis of the Schedule of Budget Implementation, Organizational Commitment, and Bureaucratic Reforms on Budget Absorption in the North Tapanuli Regency Government

The purpose of this study was to analyze the effect of budget execution, bureaucratic reform, and organizational commitment to budget absorption with the quality of human resources as a moderating variable in the regional government organizations of North Tapanuli Regency. The population used was all regional apparatus organizations of the North Tapanuli Regency Government, totaling 45 (forty five) regional apparatus organizations. The sampling technique in this study was carried out by the census method or saturated sample, where all members of the population were sampled. Furthermore, 2 (two) questionnaires will be given to each regional apparatus organization which will be filled in by the Financial Administration Officer and the Expenditure Treasurer of the regional apparatus organization. So that the total sample to be used is 90 respondents. The type of data used in this research is primary data. The analytical method used is multiple linear regression analysis and interaction test. The results of this study indicate that the quality of the budget execution checklist, budget reform has a positive effect on budget absorption in the regional apparatus of the North Tapanuli Regency Government. Organizational commitment has no effect on budget absorption in the regional apparatus of the North Tapanuli Regency Government. The quality of human resources cannot moderate the relationship between the quality of the budget implementation checklist, budget reform, and organizational commitment and budget absorption in the regional apparatus of the North Tapanuli Regency Government.

Features of legal regulation of the financial system in the modern world

The article is devoted to the study of complex system analysis of the current state of the financial system and its elements. The current national financial legislation, by-laws and experience of forming the financial system in the European Union are considered. It is noted that the development and implementation of financial policy, the organization of sustainable and stable money circulation in the country is one of the important activities of the state. That is why the issue of the financial system has always, one way or another, been reflected in the constitutions, ie it was and remains one of the objects of legal regulation. As the world economy developed, the relevance and comprehensiveness of its legal regulation gradually increased, growing both in depth and breadth: on the one hand, the number of financial institutions and relations governed by the constitution and other sources of constitutional law increases, and on the other such regulation. In order to understand the points of contact between law and the financial system, the reasons, content and aspects of its legal regulation, it is necessary to try to formulate a general concept of finance and the financial system of the state and its structure. Only on the basis of the analysis of the essence and correlation of the named phenomena it is possible to determine the place and significance of finance in law. There is currently an urgent need for major legal changes regulation of financial and economic relations. Modern financial transformations have covered a wide range of public relations, as evidenced by changes in tax, budget, currency, insurance legislation, banking and credit reforms. However, the reality shows that the improvement of all management systems is taking place in a crisis caused by Russia’s military intervention in Ukraine’s internal affairs, in connection with which the need to use the experience of the European Union is particularly acute. This applies not only to fiscal policy, but also, in particular, issues of taxation, banking, building an effective financial management system, creating an effective structure of financial authorities.

Does the MTEF shape annual budgets in a developing country?

PurposeThis paper explores how the Medium-Term Expenditure Framework (MTEF) conflicts with annual budgeting and how University actors responded to such conflicting demands in a public university in Tanzania, a developing country.Design/methodology/approachThe data for this study were collected from interviews, observations and document reviews. Data analysis processes were guided by the concepts of organizational façades and organized hypocrisy.FindingsThe findings show that while the state required the university to implement the MTEF, budget preparers and managers were concentrating on basic budgeting problems in annual budgeting. As a result of these conflicting demands decoupling occurred, as there were inconsistencies between the talk and actions of actors in MTEF implementation. In response, actors engaged in organized hypocrisy. The talk and actions were organized by developing pro-effective and symbolic layers. The pro-effective layer showed that actors were concentrating on annual budgeting, while the symbolic layer, through the creation of façades, showed that actors symbolically implemented the MTEF.Practical implicationsThe paper suggests that budgetary reforms of governments, Western donors, such as the International Monetary Fund and the World Bank, and bilateral donors should focus on addressing the basic problems in annual budgeting rather than advocating complex reforms that compel actors to engage in hypocrisy and developing façades. Moreover, university management should address basic budgeting problems to avoid budgeting games during annual budgeting.Originality/valueThis is the first paper to employ the concept of organized hypocrisy to investigate the MTEF. By demonstrating the pro-effective layer, the paper responds to the call for investigation of how accounting works in practice (van Helden et al., 2021). Moreover, by presenting the symbolic layer, the paper responds to the call to investigate how facades are created (Michelon et al., 2016). The paper demonstrates how the concept of organized hypocrisy works well with the concept of organizational facades.

Linking Budget and Policies: The Case of Ivory Coast

In the case of Ivory Coast, some budgetary reforms have been implemented since 1999 in order to improve the budget allocation and ensure a better translation of development strategies into budget. Unfortunately, taking into account national strategies and policies have not always been the main preoccupation during budgeting. However, the requirements of managing for results bring the fiscal authorities to pay particular attention to the establishment of the link between policies and budgets. Moreover, establishing this link between policies and budget is becoming a major issue since the West African Economic Monetary Union (WAEMU) adopted in 2009 new budgetary reforms to promote performance budgeting. So, this study addresses the issue of linking policies and budgets in the specific case of Ivory Coast. To that end, it focuses on the existing gaps between the budgeting process and policies through the Poverty Reduction Strategy Papers (PRSPs) or simply the National Development Plans (NDPs). The analysis of the current budgeting process shows that the budgeting is not based on the PRSPs and sectoral plans; the integration between planning and budgeting is low, the budgeting is done through a resource-based approach and the medium and long-term budgeting is not established. Moreover, the Parliament has not been involved in the budget process and PRSP elaboration especially in the last years. Only the civil society has been involved in the PRSP elaboration but they are not consulted during the budget process. Therefore, attention should be given to the challenges related to strategic planning, management style and actors to be involved. This must be done through (i) the drafting of sectoral plans based on the NDPs/PRSPs; (ii) the integration between planning and budgeting; (iii) the introduction of a strategic phase and a medium-term perspective to the budget process; (iv) the shifting from a resource-based to a results-based approach; (v) the increase of the involvement of parliament and civil society in the budget process. Further, the MTEF process that started in 2010 should be reinforced through the completion of a Macro-economic framework and a Medium Term Budgetary Framework, a national MTEF to give the ceilings on expenditure to line ministries for a medium and long-term view in order to establish their sectoral MTEFs. Moreover, the public financial management reforms should continue in order to reinforce the budget credibility which is essential in the establishment of good and reliable MTEFs.

Determinants of Gender Budgeting Practices: Evidence from Municipal Governments in South Korea

In recent decades, many countries have introduced gender budgeting initiatives both at the national and subnational levels. Gender budgeting aims to enhance the gender responsiveness of government spending by integrating gender-disaggregated analyses and gender equality outcome targets into the budgetary process. Although gender budgeting has been practiced for decades, empirical studies on the topic (including on the potential determinants of gender budgeting practices) have been scarce. This paper exploits a unique data set from South Korea. In that country, a gender budgeting system was uniformly introduced to local governments in 2013, but the extent of its use was left to the discretion of municipalities. Drawing from the gender budgeting statements of 66 municipal governments during 2013–2018, I find significant variations in the amount and types of gender budgeting across municipalities. I further find that the amount and types of gender budgeting are significantly influenced by political factors, institutional support, pro-equality climates of civil society, and the socioeconomic and fiscal conditions of the municipalities. Overall, the results suggest that, both inside- and outside-government conditions that are conducive to budgetary reform facilitate the implementation of gender budgeting.

Investigating the Validity of Wagner's Law and Performance-Based Budget Reform in Public Expenditure of Selected Asian Countries

Investigating the Validity of Wagner's Law and Performance-Based Budget Reform in Public Expenditure of Selected Asian Countries

Editorial: EU Budgetary Reform and Tax Harmonization: Becoming Brothers in Arms

Editorial: EU Budgetary Reform and Tax Harmonization: Becoming Brothers in Arms

Implementation of the program and target method for managing the State financial resources in the Russian Federation

Subject. The article considers processes of introducing the program-target method of managing the federal budget funds in the Russian Federation. Objectives. The aim is to justify the need for a wider application of project management tools, and, therefore, the need to change the structure of budget management of the budget system. Methods. The study employs universal methods of scientific knowledge, like analysis, synthesis, generalization, abstraction, and methods of induction and modeling. Results. I offer a variant of adapting such a project management tool as a matrix, for dividing administrative management tasks for the public financial management sector. The paper substantiates that in the conditions of the current structure of the State financial management in the Russian Federation, the effective operation of the program-target method of financial management is significantly complicated. I developed an option of temporary adaptive structure of public financial management for the period of implementation of priority national projects until the end of the current stage of budget reform. Conclusions. Approaches to the adaptation of project management tools to their use in the public administration sector, proposed in the article, on the one hand, will enable practitioners to improve the efficiency of planning and using the public financial resources, and, on the other hand, to open new areas of research to improve the public financial and budgetary management.

Austerity and the use of performance information in the budget process

IMPACT Using evidence from Austria, Ireland and Portugal, the authors show that, although the experience of a fiscal crisis can act as a useful trigger for adopting performance budgeting reforms, the context of fiscal stress and austerity does not offer a fertile ground for implementing reforms. In addition, it can undermine the use of performance information in budgetary decision-making. This article will help policy-makers and practitioners to develop realistic expectations about the impacts of performance budgeting in a climate of austerity and fiscal stress.

The political economy of budget reforms: Evidence of an emerging market

The purpose of the paper was to investigate the socio-economic and political processes that influenced Kuwait’s budget reforms in the wake of declining oil prices. A qualitative study and a literature review were adopted and informed by political economy theory to generate in-depth insights into similar and different socio-economic and political processes that influenced the adoption and implementation of a range of budget reforms in Kuwait. The study revealed that the budget reforms in Kuwait, as part of the austerity measures, were influenced by the dwindling oil revenues; the entrenched welfare system; the power struggles between the state actors; and the strategic partnerships and coercive role of supranational agencies, especially in creating an enabling environment for global capitalism. The paper demonstrates how the socio-economic and political environment influences and is influenced by the strategic accounting choices and practices adopted and implemented. Budget reforms in Kuwait were proposed to address the socio-economic and political realities of the day, but also, the reforms prepared fertile grounds to support global capitalism. The paper contributes to the debate on the political economy and how it is relevant in understanding the socio-economic and political processes involved in the adoption and implementation of accounting changes, especially in developing countries.

‘We Are Not Just Asking What Poland Can Do for the Polish Diaspora but Mainly What the Polish Diaspora Can Do for Poland’: The Influence of New Public Management on the Polish Diaspora Policy in the Years 2011–2015

This article describes and analyses Polish diaspora policy changes in the years 2011–2015. Two decades after the rebirth of the Polonia policy in 1989, it was completely rebuilt. Emphasising values and Poland’s obligations towards the diaspora was replaced by paying more attention to the interests and profitability of this policy. The authors demonstrate how New Public Management (NPM) concepts influenced this shift. Analysis of two different sources – documents programming Polish diaspora policy and interviews with experts and persons designing the Polonia policy – confirmed that NPM principles influenced Polish diaspora policy on five dimensions: organisational restructuring, management instruments, budgetary reforms, participation, marketisation/privatisation.