Budget Security Research Articles

Подходы к выбору индикаторов региональной бюджетной безопасности (на примере арктических регионов России)

The article deals with the approach to selection of regional budget security indicators in order to develop a system of parameters to assess the regional budget security. The approach is based on the principle of identifying the interests of economic agents. The satisfaction level of regional authorities, economic entities, and population is considered as a budget security indicator. The express analysis based on the materials from the Arctic regions of Russia indicated an imbalance of interests of economic agents, which is further confirmed by the decline in regional and population welfare due to reduction in regional product volume redistributed through budgets and by the decrease in businesses financial results in context of the changing world economy conditions. Balance of economic interests will be achieved by the increase in budget revenues and per capita incomes.

The impact of local taxes and fees on the financial sustainability of territorial communities in times of war

The paper analyses the impact of local taxes and fees on the financial sustainability of territorial communities. The concept of financial sustainability is considered in relation to financial management, investment planning and debt control. It is noted that in the context of finance, the concept of ‘financial sustainability’ is identified with stability, security and flexibility. The author also analyses the share of local taxes and fees in the tax and total revenues of local budgets of Ukraine for the period 2021-2023. In turn, this allowed us to highlight changes in the structure of local budget revenues, in particular, changes in tax revenues and their relative contribution to total revenues. The calculated coefficients were used to highlight the role of local taxes and fees in ensuring financial sustainability on the example of the budget of the Lviv territorial community. The values of key financial indicators that characterise the level of financial sustainability of the budget of the Lviv city territorial community for the period 2021-2023 are also investigated. Using tables, the author analysed the coefficients such as the coefficient of independence, budget coverage, tax independence, budget security, subsidy and withdrawal of funds to the state budget. Fluctuations in these indicators over three years and their impact on the financial sustainability of local budgets in times of war were studied, i.e., the current state of the system of local taxes and fees was demonstrated. An important aspect of the study was the impact of the military conflict on the local taxation system in Ukraine, as in the context of the war in the country, it was necessary to consider not only the threat to security and stability, but also the economic consequences that significantly affect the financial support of local communities. Particular attention was paid to the efficient allocation of financial resources and the creation of reserve funds to ensure financial stability in unforeseen circumstances. The importance of local taxes as a key mechanism for strengthening the financial base and stability of territorial communities is highlighted, as this aspect contributes to their development and improves the quality of life of residents.

Interbudgetary transfers role in regulating the budgetary provision of the constituent entities of the Russian Federation

The article studies the issues of assessing the state of fiscal capacity of the economies of the constituent entities of the Russian Federation. Inter-budgetary transfers are important for ensuring the financial stability of economies and creating conditions for the implementation of socio-economic development programs of subjects. Because of this, it becomes relevant to administer the distribution and definition of criteria for the distribution of inter-budgetary transfers. The revenues volume indicators of the entities and federal districts with and without interbudgetary transfers, as well as their values per capita have been studied. The comparative analysis of the budget revenues and interbudgetary transfers dynamics has been carried out. The structure of interbudgetary transfers distribution among the regions has been assessed. Statistical characteristics of the interbudgetary transfers share in the revenues of the budgets of the entities showing their heterogeneity has been obtained. The fiscal capacity per capita indicators in the regions and their dynamics have been analyzed. The influence of inter-budgetary transfers on increasing the level of budgetary security of the population in the subjects of the Russian Federation is shown. The correlation per capita of interbudget transfers and gross regional product has been carried out, indicating their variability in time and space, as well as the presence of significant differentiation of their values in the constituent entities of the Russian Federation.

Strategic criteria for classifying the regions of Russia as subsidized

The article establishes strategic criteria for classifying regions (subjects) of the Russian Federation as subsidized. Improvement of the systems of allocation of budgetary funds and redistribution of financial resources ensures sustainable economic growth and improvement of the quality of life of the population. To identify the strategic criteria for classifying regions as subsidized the authors have analyzed the existing methodology of allocation of subsidies for equalizing budget security of the RF subjects. The list and the number of the regions classified as subsidized regions and donor regions did not significantly change in 2016–2022. Comparison of regions by such indicators as GRP and budget security before and after the allocation of subsidies proves that the existing system of support of subsidized regions is unable to ensure their economic growth and development. Strategic criteria for classifying regions as subsidized are established according to the theory of strategy and the methodology of strategizing by Academician Vladimir Kvint. When identifying strategic priorities of regional development it is essential to take into consideration the competitive advantages of each region. As well as the budgetary criteria, the authors define the strategic factors which have the greatest impact on the unchanged state of the group of subsidized regions: taxation potential, the development of the infrastructure, economic development, geographic development and social development. According to the proposed strategic criteria, financial resources will be granted for maintenance of the current state as well as for implementation of regional strategies, firstly, in the context of improving the quality of life of the population. Reasonable and effectively governed system of allocation of financial aid together with the system of establishing strategic criteria for classifying regions as subsidized are crucial for eliminating regional differences and promoting overall long-term socio-economic development of Russia.

Оценка органов местного самоуправления как органов публичной власти

Comprehension of the results of the reform of the Constitution of the Russian Federation allows us to conclude that the bodies of state power and local self-government bodies, united in a single system of public power by this very fact, are not transformed into public authorities. With regard to local self-government bodies, in the cases cited in the article, they are supposed to acquire identity as a public authority through a change in the model of financial and budgetary security.

“Whitewashing” the activities of real estate agencies as one of the directions for ensuring the economic security of public legal entities in the budgetary and tax sphere

The subject of the study is the relationships that arise in the process of ensuring fiscal security by public legal entities. Fiscal security is considered in the article from the perspective of its duality (budgetary security and tax security) in the context of the shadow sector, taking into account the risks of cartel collusion and concealment of part of the income and property from taxation. The nature of the formation of the shadow sector is explored, which is defined as a deep reserve that should be gradually mobilized into the budget system, while encouraging taxpayers to conscientiously fulfill their tax obligations, which will subsequently form a completely different level of tax culture. The article presents the author's logical model of leveling the shadow economy of public legal entities in order to ensure their fiscal security based on digital tools of public administration. The research is based on the following methods of scientific knowledge: comparison, analysis, synthesis of theoretical material. The author has developed an algorithm for comparing open Internet data with Federal Tax Service data in order to identify hidden income. The scientific novelty of the study lies in the development of the category “fiscal security”, the theoretical justification of the directions for its provision by public legal entities in the context of the “whitewashing” of the economy in the context of the use of digital tools of public administration.

ТЕОРЕТИЧНІ ЗАСАДИ БЮДЖЕТНОГО МЕНЕДЖМЕНТУ

The article is devoted to the study of the theoretical foundations of budget management. The article defines the place and role of budget management in effective state administration and local self-government. The peculiarities of budget management in special conditions were considered, as well as a functional analysis of budget management was carried out. The budgetary mechanism of innovation and investment development, which is one of the most important modern concepts in budget management, is substantiated. The current state and development trends of budget management in Ukraine at the state and local levels are studied. Different functional approaches to budget management are considered, the principles of budget management are defined. The latest IT tools for budget planning and monitoring budget execution are characterized, their prerequisites and advantages are given. The problems of the budget process in Ukraine are substantiated and the key aspects in the field of budgeting are substantiated. The main problem in Ukraine in recent years is the negative trend in the development of the budgeting process, and therefore, solving the issues of the management of budget expenditures and control over the effective use of budget funds is an urgent task. The analysis of the current state of budget management in Ukraine made it possible to determine the following directions of its development and improvement. Among the main ones: imbalance of revenue and expenditure parts of budgets of all levels and, as a result, its permanent deficit; widening of the gap between the volume of public borrowing and the repayment of the public debt, which causes the growth of the public debt in significant amounts over the last studied years; decrease in the degree of solvency of the state. As a result of the assessment of the current state of budget management at the meso-level, the presence of factors and factors that lead to the emergence of imbalance and inconsistency between its target orientation and tasks in the context of state regulation of the economy and the current state of formation and implementation of local budgets was ascertained. In the conditions of transformational changes, the main and necessary directions for improving budget management should be the introduction of budget control over the effectiveness of budget program implementation; improving the quality of capital budgeting; optimization of the number of budgetary state target programs; increase in budgetary security per capita; reduction of public administration expenditures and increase of social expenditures.

Бюджетна складова фінансової безпеки регіону та її оцінювання в умовах війни

The aim of the article is to disclose theoretical and applied approaches to assessing the budgetary component of the financial security of the region. It is proposed to consider the financial security of the region as a state that reflects the financial capacity of the territory to ensure the potential for development by balancing financial resources, taking into account existential risks, threats and dangers. An approach to assessing the budgetary security of the region has been developed on the example of the Lviv region. It is noted that the revenue part was formed at the expense of tax, non-tax revenues, income from capital transactions and official transfers, which consisted of subsidies and subventions. In the structure of tax revenues, the largest share was occupied by taxes on income, profit, rent and payment for the use of water, subsoil, and other natural resources. Non-tax revenues were formed at the expense of own revenues of budgetary institutions and income from property, administration of fees and payments, income from non-commercial economic activities. Transfers in the form of subsidies and subventions came from public administration bodies to the local budget, among which subventions prevailed in targeted areas of use, aimed at supporting the needs of the State functioning under martial law, health care institutions and measures, educational needs, road repairs, etc. It is proved that the independence of budgets is possible only if there are sufficient own revenue sources. From the standpoint of observing the financial security of the region and taking into account international experience, an approach is recommended, according to which the share of own revenues in the budgets of self-government bodies should be at least 40%. It is substantiated that for 2018–2022 most of the expenditures of the regional budget of the Lviv region were directed to the socio-cultural sphere (education, health care, social protection and social security). Further research will be aimed at developing a comprehensive methodology for assessing the financial security of a region in the context of certain components and calculating an integral indicator of its level.

ОЗДОРОВЛЕНИЕ ГОСУДАРСТВЕННЫХ ФИНАНСОВ КАК КЛЮЧЕВОЙ ФАКТОР ОБЕСПЕЧЕНИЯ ФИНАНСОВО-БЮДЖЕТНОЙ БЕЗОПАСНОСТИ РЕСПУБЛИКИ СЕВЕРНАЯ ОСЕТИЯ-АЛАНИЯ

The article defines the essence and importance of the financial and budgetary security of the region. The analysis of the parameters of the consolidated budget and public debt of the Republic of North Ossetia-Alania was carried out, on the basis of which the main threats and the level of financial and budgetary security of the republic were identified. The main measures of the Program for the improvement of public finances of the Republic of North Ossetia-Alania for the period up to 2024, as well as the planned results of their implementation, are considered. Budget risks are analyzed and ways to minimize them and increase the level of ensuring the financial and budgetary security of the republic are outlined.

Budgetary security of Ukraine in the context of a large-scale war

The large-scale war taking place on the territory of Ukraine as of 2023 has a significant impact on budgetary processes and the financial system. In the face of new challenges, the budget system is becoming a key tool for ensuring financial stability and fulfilling the strategic objectives of the state. Military expenditures, reconstruction of the affected territories, social support for citizens and other unforeseen expenditures require effective management of the state and local budgets and improvement of the financial security mechanism. The purpose of this article is to define the theoretical and practical foundations of Ukraine’s budget security, to develop proposals for a strategy and measures to ensure the sustainability of the budget system in times of war. In studying the issues of formation and functioning of Ukraine’s budget security, the author used a combination of empirical, comprehensive, systemic and analytical methods and approaches that helped to achieve this goal. The study analysed statistical data reflecting the state of budget security, including indicators reflecting the specifics of the state budget system management. Nevertheless, the events that took place in the period from 2014 to 2022 led to political and economic instability in the country, which resulted in an imbalance in the functioning of Ukraine’s budget security. Given the difficulties associated with ensuring budgetary security in a time of war, the author offers recommendations for achieving future stability of the state’s financial system, which involves adherence to the national strategy and development of new financial security mechanisms. At the same time, a sustainable budget policy promotes efficient resource management and stimulates economic development. Investments in key industries, support for enterprises and innovations help to strengthen the country’s economy. The scientific results obtained in the course of this study solve the urgent problem of developing and substantiating theoretical and methodological approaches to the functioning of budget security, and can also be used to determine ways to improve it and apply it by the country’s state authorities

Conceptual Approaches to the Concepts of Tax and Budget Federalism

In the work carried out, the theoretical aspects of budget and tax federalism were explored, taking into account the diversity of proposed conceptual approaches to their content and the lack of a unified approach to defining these concepts. The vagueness and diversity of interpretations of budgetary and tax federalism reduces their scientific validity and certainty, which hinders their effective implementation in the process of developing management decisions. Features of the organization of the system of state and municipal government in the Russian Federation in matters of delimitation of budgetary and tax powers between levels of government lead to the emergence of many problems, the key of which is the high level of differentiation of the subjects of the Russian Federation in terms of budgetary security. The purpose of the study was to develop a conceptual approach to understanding the concepts of “fiscal federalism” and “tax federalism” based on existing scientific definitions, as well as taking into account the peculiarities of their implementation in the Russian Federation. To carry out the work, methods of fundamental developments in the field of financial theory, scientific generalizations and comparative analysis were used. The results of the study were theoretical generalizations and analysis of the practical implementation of fiscal regulation mechanisms, as well as the author’s definition of the concept of “tax federalism”, and the key elements of its focus were highlighted. The final part of the article formulates the main conclusions based on the results of the analysis of the theory of budgetary and tax federalism, characterizes the features of their implementation in the Russian Federation, reveals the economic essence of tax federalism, its functional basis for the purpose of improving the mechanism of interbudgetary relations.

Влияние COVID-19 на бюджетную обеспеченность жизнедеятельности населения

The article discusses the problems that arose during the COVID-19 pandemic and the post-pandemic period related to the budgetary security of people's livelihoods. The purpose of the article is to show the need to resolve issues related to the decrease in budget revenues, which is reflected in the level of livelihoods of the population of the territories. To understand the problems that have arisen, the concepts of “budget sustainability” and “fiscal security” are identified, and the author’s point of view regarding the nature of these concepts is proposed. The authors hypothesized that the quality of budget planning affects the level of budgetary security of people, and, consequently, their level of living. And this type of problem can be minimized using methods used to solve socially oriented problems. In the author's study, special emphasis is placed on the ideology of territorial assessment, which is based on an indicative approach. A methodological approach to express assessment of the level of budgetary security of people's livelihoods based on an analysis of relative budget indicators is proposed. The assessment was carried out comparatively across twenty regions and showed mixed results, but most regions experienced a deterioration in budgetary security not only during the pandemic period, but also in the post-pandemic period. The fact has been revealed that the process of formation of budget funds and their further distribution occur in uncertain conditions. The main conclusions of the authors prove that during the pandemic and post-pandemic impact on the budgetary security of people's livelihoods, regional and local authorities are faced with difficult tasks in preventing and eliminating socially oriented problems.

Budgetary security of Ukraine in the context of a large-scale war

The large-scale war taking place on the territory of Ukraine as of 2023 has a significant impact on budgetary processes and the financial system. In the face of new challenges, the budget system is becoming a key tool for ensuring financial stability and fulfilling the strategic objectives of the state. Military expenditures, reconstruction of the affected territories, social support for citizens and other unforeseen expenditures require effective management of the state and local budgets and improvement of the financial security mechanism. The purpose of this article is to define the theoretical and practical foundations of Ukraine's budget security, to develop proposals for a strategy and measures to ensure the sustainability of the budget system in times of war. In studying the issues of formation and functioning of Ukraine's budget security, the author used a combination of empirical, comprehensive, systemic and analytical methods and approaches that helped to achieve this goal. The study analysed statistical data reflecting the state of budget security, including indicators reflecting the specifics of the state budget system management. Nevertheless, the events that took place in the period from 2014 to 2022 led to political and economic instability in the country, which resulted in an imbalance in the functioning of Ukraine's budget security. Given the difficulties associated with ensuring budgetary security in a time of war, the author offers recommendations for achieving future stability of the state's financial system, which involves adherence to the national strategy and development of new financial security mechanisms. At the same time, a sustainable budget policy promotes efficient resource management and stimulates economic development. Investments in key industries, support for enterprises and innovations help to strengthen the country's economy. The scientific results obtained in the course of this study solve the urgent problem of developing and substantiating theoretical and methodological approaches to the functioning of budget security, and can also be used to determine ways to improve it and apply it by the country's state authorities

Assessment of the Budgetary Security of the Arctic Regions in Order to Equalize Incomes and Improve the Welfare of the Population

Assessment of the Budgetary Security of the Arctic Regions in Order to Equalize Incomes and Improve the Welfare of the Population

PROBLEMS OF ENSURING BUDGETARY SECURITY OF THE STATE DURING MARTIAL LAW

Larysa Sidelnykova 
 Email:larisa1907s@gmail.com
 Doctor of Economics, Professor Kherson National Technical University 
 Khmelnytskyi, Ukraine 
 https://orcid.org/0000-0001-7182-2923
 Oksana Posadnieva 
 Email:posadnevaoksana@gmail.com
 PhD in Economics, Associate Professor Kherson National Technical University 
 Khmelnytskyi, Ukraine 
 https://orcid.org/0000-0001-8721-5124
 
 Abstract. The article examines the assessment of the budgetary security of the state in periods of macroeconomic shocks. The balance of the State Budget of Ukraine over the past 10 years is analyzed. A chronic deficit of the state budget are revealed. The main reasons for the budget deficit are given. It is noted that the chronic budget deficit is the main destructive factor that leads to a decrease in budget security. The place of budgetary security in the general economic security of the state is shown. The main indicators that characterize the level of budgetary security of the state are described. Special attention is paid to indicators that depend on the level of budget balance. The main reasons for the growth of the deficit during the previous destructive events in the Ukrainian economy and the factors that contributed to the growth of the deficit during the Russian-Ukrainian war are indicated. The main indicators of Ukraine's budgetary security over the past 10 years are analyzed. A significant deterioration of budgetary security indicators in 2022 is established. A significant decrease in the level of GDP in 2022 and its decisive impact on indicators of budgetary security are revealed. It is noted that the decrease in the level of budgetary security leads to a decrease in the level of debt security of the state. Forecast figures for certain budgetary security indicators are provided. The main directions for using budget funding for further strengthening of budgetary security are suggested.

Digital Economy Technologies and Financial Security

Problem setting. The transformation of the Ukrainian economic system and the financial sector is connected with the new needs of the state, the globalization of the world financial space, and therefore with new challenges and threats. Analysis of recent research and publications. In their works, I. Andrushkiv, L. Nadievets, L. Haryaga, O. Stoyko, and others dealt with issues of increasing the volume of digitalization, digitalization of financial products, and the specifics of the influence of fintech companies on the financial sector. The issue of security of financial institutions was studied by such domestic scientists as: O. Baranovskyi, Z. Varnaliy, S. Yegorycheva and others. Purpose of the research is to analyze the connection of digital financial technologies to the financial security of the state, to study the positive and negative impact of FinTech on the state economic policy and financial security, and to emphasize the need to adapt regulatory approaches to support a safe financial system. Article’s main body. The article is devoted to the issue of the relationship between digital economy technologies used in the financial sector and the financial security of the state. Positive and negative factors of influence of FinTech on banking, budgetary and monetary security, as components of financial security of the state, are determined. The author concludes that the development of financial technologies has the potential to increase financial security by improving the security of transactions, effective compliance with regulatory requirements, expanding access to financial services, and reducing the potential for money laundering and terrorist financing. Digital technologies are a powerful driver of the principles of transparency of financial relations, which is especially noticeable at the level of public finances. A key role in the formation of the financial security of the state is played by the provision of indicators of budget security, therefore the author paid attention to the consideration of the peculiarities of the openness of the budget. RegTech and SupTech, which in turn are technologies for managing regulatory processes and supervisors in the financial industry. Conclusions and prospects for the development. The author concludes that the regulatory framework should be based on risk assessment, contributing to cyber security, data privacy and protection of consumers of financial services, while contributing to the financial security of the state.

Entry fees enhance marine protected area management and outcomes

Well-resourced marine protected areas (MPA) are better managed, leading to improved ecological outcomes. Tourism is often cited as an important source of financial support for MPA management, yet it is unclear whether funding from visitor entry fees improves the effectiveness of the world's MPAs. Here we ask whether fees to enter MPAs associate with enhanced fish biomass, a key ecological goal of many MPAs, and whether relations exist among entry fees and management effectiveness. In an analysis of 86 MPAs, we found entry fees were associated with greater fish biomass when compared to parks without entry fees, but only for parks with lower scores for management effectiveness. A global assessment of management survey responses from 214 MPAs suggested the hypothesis that MPA entry fees benefit budget security and staff capacity to carry out critical management activities. Together, the results suggest a mechanism whereby entry fees support greater capacity to educate parks users on rules and enforce those rules. Future work should look at the details of MPA budgets to unravel the relationship between funding, management activities and ecological outcomes. Dependency on tourism also comes with the important implication that declines in tourism caused by socio-economic shocks and geopolitical events may have affected the financial security and therefore possibly the ecological effectiveness of MPAs.

State wartime budget: 2022

Introduction. Increasing the quality level of implementation of the State Budget of Ukraine requires a systematic approach in view of the importance of the development and adoption of mutually agreed decisions of financial and bud­getary institutions under martial law. Problem. It is important to ensure dynamic budget balance, take into account the principles that determine the basic model of the budget regulation mechanism in the conditions of large-scale military operations, which significantly influenced the change in the trend of economic development. The aim of the paper is to identify the main principles of implementation of the State Budget of Ukraine under martial law. Methods. Complex analysis, scientific gene­ralization, comparison and analogy; specifica­tion, generalization of theoretical and practical material, sampling; scientific abstraction, induc­tion, deduction and dialectical, abstract-logical, economic and statistical methods were used in the paper. Results. The role of the State Budget of Ukraine in ensuring the financial and budgetary security of the country was defined. The peculia­rities of the budget toolkit were revealed. An ana­lysis and assessment of revenues and expenditures of the State Budget of Ukraine was carried out. The author developed approaches to the use of financial and budgetary tools and substantiated strategic directions of the budget policy of Ukraine under martial law. Conclusions. An effective revenue mobili­zation mechanism is an important prerequisite not only for increasing budget revenues, but also for restoring economic balance in the country. At the same time, under martial law, considerable attention should be paid not only to the task of ensuring an effective mechanism of revenue mobilization, but also to the obser­vance of the principles of fairness of taxation, related to the rational redistribution of the level of tax burden among taxpayers. Important tasks of budget policy are to increase the efficiency of budget expenditures and ensure a balance between financing the most critical items of the state budget and stimu­lating the recovery of the economy.

Budget analysis and assessment of the budgetary security of the Kamchatka Territory

Budget analysis and assessment of the budgetary security of the Kamchatka Territory

Special knowledge of an expert economist in the field of budget security of Russia

Subject. This article explores the role of the public sector in the Russian economy and the problem of improving the quality of forensic economical examination. Objectives. The article aims to identify and systematize the differences between accounting and reporting of enterprises in the commercial and public sectors of the economy, as well as study statistics on economic crimes in the public sector. Methods. For the study, I used analysis, synthesis, and comparison. Results. The article presents a systematization of the features of budget accounting and describes the characteristic features of unlawful acts in the budgetary sphere. Conclusions. The results of the study can contribute to the competent compilation of the research part of the expert opinion and the obtaining of reasonable conclusions, which will optimize the judicial process as a whole.