Budget Security Research Articles

FINANCIAL CONTROL IN THE SYSTEM OF BUDGETARY SECURITY OF THE STATE AND REGIONS UNDER DECENTRALIZATION CONDITIONS IN UKRAINE

The relevance of the topic of the study is determined by the processes of reforming financial control system under conditions of the budgetary decentralization and euro integration processes in Ukraine. The theoretical and methodological principles of researching budgetary security and decentralization were determined. Based on the data within a twenty-five-year period the dynamics of profits, costs and surplus of the Consolidated budget of Ukraine were analyzed. The influence of the economic development cyclicity on budgetary security in the part of occurrence of budgetary deficit was identified. The quantitative assessment of budget decentralization in Ukraine was made based on the share of revenue of local budget in the revenues of Consolidated budget as well as transfers in the revenue and expenditure of the State budget of Ukraine.
 The scientific outcome of the study is the refinement of the definition of budget security for the state and the regions and substantiation of the conceptual model of financial control under decentralization conditions. 
 Unlike the existing definitions the proposed definition is grounded on the change of the ideology of the budget process participants under conditions of its democratization and decentralization as well as the risk-oriented and strategic approach.
 The proposed conceptual model of financial control under decentralization conditions is grounded on the unified network of the state and municipal control authorities, delegation of control functions according to the budget powers, transition from the inspection of inter-budgetary transfers to the audit of budget security under conditions of accepted socio-economic living standards of the local population, unification and standardization of the approaches to conducting audits of legality and effectiveness of the formation and using the local budgets.

Assessment of the factors contributing to the formation of regional budget of the Khanty-Mansi Autonomous Okrug –Yugra

  The relevance of this research is substantiated by the currently growing role of financial relations in the formation and execution of budgets of the constituent entities of the Russian Federation. The formation and implementation of budgetary policy of the Russian Federation determines the economic and financial framework for functionality of the region and life of the society as a whole. The goal is to assess the factors contributing to the formation of regional budget of the Khanty-Mansi Autonomous Okrug – Yugra. The subject of this research is the revenues and expenditures of the budget of Khanty -Mansi Autonomous Okrug – Yugra. Practical importance of the conducted research lies in the obtained results that allow the regional budgets to choose the way for improving budget security. The information base is comprised of the scientific works of Russian and foreign authors, educational-methodological publications, materials of the scientific conferences dedicated to the formation of regional budgets, legislative and normative acts of the Russian Federation, reference materials of the Federal State Statistics Service Of the Russian Federation. The main conclusion consists in determination of the factors influencing the regional budget of the Khanty-Mansi Autonomous Okrug – Yugra. The author's special contribution lies in evaluation of the specificity of formation of budget of the Khanty-Mansi Autonomous Okrug – Yugra, as well as the methods aimed at minimization of budget risks for solution of the regional budgetary problems. The formulated recommendations for increasing budget security would promote the innovative development and improvement of budgetary and tax relations of the regional budgets. The theoretical significance consists in advancement of the theory of regional economy. The acquired results can be applied in theoretical substantiation of the strategic tasks of managing regional budgets.  

Угрозы и риски бюджетной безопасности в контексте развития цифровой экономики

Currently, Russia has begun to form a legal framework for the development of the digital economy. The introduction of digital technologies affects all areas of public relations, including budgetary legal relations. In connection with digitalization, issues of budget security are becoming more relevant. The article substantiates the need to improve the legal regulation of budget relations in terms of ensuring budget security and the use of digital technologies. The author’s classification of budget security threats is given. Legal contradictions in the field of digital currency regulation are revealed. Measures are proposed to eliminate conflicts and gaps in the current legislation regulating budgetary legal relations and relations arising in connection with the use of digital currency.

Інституалізація державного управління у сфері бюджетної безпеки: суб’єктне оновлення

The article aims at forming a general vision of the institutionalization of public administration in the field of budget security and summing up the latest trends in the sphere. Systematic, integral, complex and logical approaches are used in the research. It is suggested to understand the institutionalization of public budget security management as the process of identifying relevant institutions, formalizing and systematizing fundamental provisions (object, purpose, principles, functions, tasks, forms, and norms), their connections and communications within public budget security management in particular and in general, as a whole or in the context of a particular focal request. Regulatory institutions of direct and indirect action as for budget security are identified in accordance with the legislation of Ukraine, namely: the Ministry of Finance and the Verkhovna Rada of Ukraine are institutions of direct action; the Ministry of Economy, the Accounting Chamber, the State Audit Service of Ukraine, the State Customs Service of Ukraine, the State Treasury Service of Ukraine, and the State Financial Monitoring Service are institutions of indirect action. A general institutional activity model for the Bureau of Economic Security of Ukraine is designed on the basis of the elaboration of legislative documents. The analysis made of its provisions provides grounds for formulating a proposal to clarify the Law of Ukraine "On the Bureau of Economic Security in Ukraine" by introducing a new section III "Lines of Activity of the Bureau of Economic Security of Ukraine" with a specific structure; provisions of budget security are presented in three draft articles of the law, enumerating the objects of regard for the Bureau of Economic Security and the grounds for starting activity and communication. Prospects for further research are seen in continuing to detail the institutional provisions for all the declared regulatory institutions, while identifying vulnerabilities for each of them with regard to the object of the research, i.e., public budget security management, and in suggesting recommendations for their solution.

Methodology for assessing the investment component of the region’s financial and budgetary security (case study of the Komi Republic)

The purpose of the study is to analyze the existing methodological approaches to assessing the investment component of financial and budgetary security and to develop, on their basis, a methodology for assessing the investment security of a region. In the course of the study, methods such as indicative method, comparison method, analysis, synthesis were used. The article provides a brief description of approaches to assessment of investment security and the author's methodology for assessing the investment component of the financial and budgetary security of the regions. In addition, the article presents the author's list of indicators, with the help of which it is proposed to assess, diagnose and identify threats that pose a threat to the financial and budgetary sphere. The proposed methodology has been tested on the example of the Komi Republic.

Возможности повышения уровня бюджетной обеспеченности муниципальных образований

The issue of budget security of municipalities in the Russian Federation remains relevant today due to the unstable economic situation. This topic is particularly acute in the context of a shortage of resources and problems in the social sphere of individual subjects of the country. The indicator of the level of provision of municipal budgets is the basis of the mechanism of budget regulation in our state and acts as one of the main criteria for characterizing the socio-economic development of regions. This article will consider the problems of municipalities that can have an impact on their budget security, as well as options for optimizing it in order to increase the prospects for their further development.

PUBLIC FINANCES' TRANSPARENCY AS A FACTOR OF ENSURING THE STATE'S FINANCIAL SECURITY

Attention to the topic of transparency of public finances today is growing worldwide. It is generally accepted that transparency in the field of public finances is one of the key tools for ensuring good governance, which in turn contributes to improving the financial security of the state. In general, transparency is understood as full, reliable, timely and systematic disclosure of all important information and implies free access to it, as well as comprehensibility for all citizens of the state. This article examines the impact of transparency of financial relations at the public level in today's digital environment on the components of financial security. As a result, it was established that at the state level the components of financial security are banking security, security of the non-banking financial sector, debt security, budget security, currency security, monetary security. Research on various sources of information has determined that central banks must be properly accountable to legislators and society, as transparency is a key element of this social responsibility. In turn, the impact of transparency on the financial security of the non-banking financial sector is manifested in an increase in confidence in non-banking market institutions. For its part, maintaining the regulatory level of public debt, as well as its most efficient spending is the main task of the authorities, so based on this, it is necessary to constantly monitor public debt, which can be provided only in conditions of transparency. A significant role in shaping the financial security of the state belongs to the provision of budget security indicators, which are primarily influenced by the principles of transparency of budgetary relations. For this purpose, information portals were created: “Unified web portal for the use of public funds” and “State web portal of the budget for citizens”. The next component of financial security is currency security, ensuring publicity and transparency of which is part of the functions of the NBU. In the current context of globalization and informatization of society in order to reduce undesirable synergies in the monetary system, one of the ways to improve the monetary policy of the National Bank should be to increase the transparency of foreign exchange transactions, which increases financial security. Thus, ensuring the transparency of public finances should be the main task of the authorities, which will increase the financial security of the state and provide access to open budget data for the public, as well as enable their active participation in the budget process.

РЕГИОНАЛЬНОЕ НЕРАВЕНСТВО В СОЦИАЛЬНО-ЭКОНОМИЧЕСКОМ РАЗВИТИИ РОССИИ

The topic of regional inequality in socio-economic development is becoming more relevant every year. Ensuring the uniform development of the Russian regions is complicated by the high degree of heterogeneity of the country's economic space, which is expressed in socio-economic inequality between the regions. Currently, there is a differentiation of the subjects of the Russian Federation by the sectoral structure of GRP, by the level and quality of life of the population, etc., there are imbalances in budget security. This leads to a decrease in the attractiveness and competitiveness of the regions and generally weakens the national economy. According to the World Bank, Russia ranks 3rd in the world in terms of regional inequality. Government documents indicate that the state's goal is to reduce the differentiation of socio-economic development in regions with a reduced standard of living by 2022. The spatial development of most economic entities is characterized by significant differences. Economists point out that interregional asymmetryarises due to competitive advantages and features of the institutional environment. Reducing the inequality of regional development is possible if the standard of living in the depressed regions of the Russian Federation is increased. An important area for assessing the differentiation of regions is the development of a system of indicators that assess regional inequality. The assessment of the role of the region in the production of GRP can be obtained by calculating localization indicators and relative position indices, the dynamics, variation and depth of regional inequality are characterized by dispersion coefficients, as well as the differentiation of the population of regions by income, the analysis of the uniformity of the distribution of regions can be obtained from the analysis of income concentration indicators. In general, it can be noted that regional inequality in the socio-economic development of Russia tends to increase.

Проблемы выравнивания уровня бюджетной обеспеченности муниципальных образований и пути их решения

The subject of the study is the processes of forming the budget security of municipalities. The purpose of the study was to identify problems that reduce the effectiveness of leveling the level of budget provision of municipalities. It is shown that it is impossible to equalize the budget provision of municipalities by establishing standards for the formation of expenditures of local budgets or improving interbudgetary relations within the framework of «model» budgets. Using the example of the Khabarovsk Territory, the preference for an evolutionary approach to improving the methodology for equalizing the degree of budget security in modern conditions is shown, with an emphasis on taking into account differences in housing and communal services costs and transport accessibility of municipalities

Developing a Methodology for Assessing the Financial and Budgetary Security of a Region under the Conditions of a Perfect Storm

Developing a Methodology for Assessing the Financial and Budgetary Security of a Region under the Conditions of a Perfect Storm

Issues of ensuring budget security as a legal category in the digital age

The digital development of society is determined by the fact that all aspects of the development of the technical environment and the formation on this basis of an equilibrium process of social development can be singled out as a structural feature of national security. The budget as a source of social development has a tax, social and social foundation under it. All this is determined by the necessity for additional research on issues related to the formation of the possibility of maintaining the vector of development of society. The novelty of the study is that all legal research is limited to the formation of only framework conditions, which in turn affect such aspects as the development of deterrent mechanisms. In the work, the authors determine the possibility of development and formation of the budget security category on the basis of a model that is provided not only by legal conditions, but also regulated by information components. The article provides a component model, which is determined by the fact that it forms a protective mechanism based on a legal decision. The practical significance of the study is determined by the fact that budget security stands out primarily as a component of social development and can be considered in order to improve and shape the sustainable development of society as a whole.

COMPONENTS OF THE BUDGET SYSTEM OF UKRAINE AS FACTORS OF FINANCIAL AND ECONOMIC SECURITY

The purpose of this study is to analyze the components of the budget system of Ukraine as factors of financial and economic security to identify negative trends in the context of the implementation of decentralization reform. It is proved that the research of this direction should start with the analysis of the conceptual apparatus and structural relationships between categories. At the top level of the hierarchy there is the category of national security of Ukraine, which, according to current legislation, means the protection of state sovereignty, constitutional order and other national interests of the country from real and potential threats. The category of financial and economic security is also often used in the scientific literature. Given the above classification, in this case we are talking about the financial security of the country as a factor of economic security. Methodology. To stimulate economic development, the practice of modern budget regulation provides for the presence of a planned deficit, which is a source of local and public debt. Depending on the areas of its financing, there are domestic and foreign, local and national debts. The relationship between the above indicators determines the level of budget security of the country, which is one of the most important factors of financial stability was identified in the work. Results. It is proved that, according to the results of the analysis, practical recommendations on budget policy of Ukraine as a factor of financial and economic security should take into account the following steps: against the background of growing social burden on the budget, it is necessary to continue the redistribution of budget funds in favour of the regions, which will increase their level of financial autonomy and reduce the amount of transfer payments; pursue a strict restriction policy to prevent the growth of the state budget deficit and uncontrolled increase in debt; the problem of pension provision increases the burden on the state budget every year. It is necessary to take measures to create a cumulative system of state and non-state pension insurance. Practical implications. The practical consequences prove that in 2016 the public debt of the consolidated budget of Ukraine reached a record 81% of GDP. However, effective economic and budgetary policy allowed to reduce it in 2019 to 50.3%, which was positive. Moreover, the share of external debt was 29.2%. The high budget deficit in 2020 will lead to an increase in debt to 58.7% of GDP, which offsets the previous positive changes. It is determined that at the beginning and at the end of the study period the expenditures of the pension system of Ukraine have been equal to about 10% of GDP. At the same time, financing from own revenues has decreased from 8% to 6%, which is negative. The most critical situation became after 2013, when this indicator began to decline rapidly, increasing the burden on the state budget. Value/originality of the work is an analysis of the components of the budget system of Ukraine as factors of financial and economic security, which in contrast to the existing ones is based on the need for further implementation of decentralization reform and allows to develop practical recommendations for budget regulation.

Budget Security as Factor of Economic Development of the State

A system analysis of the core threats to the budgetary security of the state shows that the current performance of the budgetary system in Ukraine was formed under the pressure of destructive external and internal risks aggravating the budgetary security problem. The article’s objective is to deepen theoretical and methodological foundations for the assessment of core threats to the budgetary security of the state. 
 It is demonstrated that the occurrence of external and internal threats to the budgetary security is characterized by the following tendencies: high level of GDP redistribution through the budgetary system; the growing figures of the total public debt, the government guaranteed debt and the payments to service and repayment of the public debt in Ukraine; the persisting high deficit of the public budget; high level of centralization of the budgetary funds. 
 It is substantiated that the execution of budget revenues involves two main dimensions of risk activities, which are the threats related with the proceeding of taxes and other categories of obligatory payments to the budget, and the administrative threats stemming from the existing system of tax administering. The impact of the first group of threats can be minimized by building up a rational budgetary system with the optimal level of fiscal burden. Minimization of the impact from the second group of threats will enable for the effective work of government bodies charged with administering and control. 
 The factors that cause risks and threats of budget losses resulting from failures in the budget revenues administration system are determined: risks which occurrence will result in the budget revenues never reaching the expected levels due to the inefficiency of forecasting and planning of budget revenues and failures in the routine operation process, first and foremost when mobilizing payments to the budget; risks of the excessive costs with the occurrence of which the costs for guaranteeing the projected figures of budget revenues by revenue category will exceed the economically viable ones; risks of the violation of the law, and risks of budget revenues administering per se.

Impact of Covid-19 on the budget security of the national economy: a forecast for Ukraine

Nowadays, it is necessary to consider the impact of the COVID-19 pandemic on the state of the national economy, in particular on the budget system. This paper examines the essence of budget security and identifies the key threats to budget security in the current context. The methodological aspects of calculating Ukraine’s budget security key indicators (their list, criteria for the use of weighting factors, range of characteristic values of budget security levels) are investigated and their state in 2015–2019 is assessed. The influence of quarantine measures on the level of budget security in Ukraine is determined. Analysis of the current state of budget security and development prospects of Ukraine, determined by the Ministry for Development of Economy, Trade and Agriculture of Ukraine, the International Monetary Fund and the World Bank Group, made it possible to predict Ukraine’s budget security indicators for 2020–2021 and define prospects for changing budget security of Ukraine until 2024. Based on the results of forecasting, the need was identified for planning and implementing urgent anti-crisis measures in the field of managing the country’s budget security, as well as ensuring the consistency of the norms of budget and tax legislation in integration with effective measures to support the socio-economic environment of Ukraine.

Methods of organizing the preliminary selection of projects and works in the business portfolio of a multidisciplinary enterprise

A review of the structural and functional model of development and an analysis of market conditions that are taken into account when choosing a project based on a group of influencing factors when choosing project options. The necessity of the analysis of the basic indicators concerning management of a subject area of ​​the project, management of cost, time management, and other component functions of management of the project of development is defined. From the standpoint of the structural approach, the real estate market is analyzed and classified by indices of value, price expectations, etc. It is revealed that the method of distribution of funds from the regional development fund, based on the analysis of a number of indicators of the region, the main of which are industrial output, budget and financial security, the ratio of per capita income and subsistence level, social structure, social security. and engineering infrastructure. The method of the list of criteria concerning the method of selection of projects for realization which consists in conformity of indicators of the project to each criterion is investigated, and on each criterion the expert estimation is given. The method allows to analyze all the advantages and disadvantages of the evaluated projects and ensures that none of the criteria will be forgotten, even if there are difficulties with the initial evaluation or with the formalization of the data. The developed mechanism influencing the project implementation allows to select in the portfolio such projects that are highly likely to be successfully implemented by the enterprise, and will really improve the internal processes at the enterprise and increase its competitiveness in the future, ie the portfolio is not just focused on in the near future, it aims to increase competitiveness in the long run. The advantages for companies that use the developed tools are to increase competitiveness based on accurate calculation of economic indicators of projects, ensuring a clear relationship between current project activities and management of enterprise strategy (due to concentration on strategic goals), use of strengths of internal development. the environment of the enterprise and the leveling of the weak (due to the importance of projects to improve business processes of the enterprise).

INNOVATIVE APPROACHES FOR THE EVALUATION AND FORECASTING OF DEBT LEVELS OF THE SECURITY IN UKRAINE

Abstract. Improving the methodology for estimating and forecasting the level of debt security of the country in the medium and long term is of paramount importance for an adequate response to destabilizing factors. Increasing the degree of openness of the national economy, the existing problems of the internal development of the country’s economy, significant changes in the global economic space and adjusting the methodological approaches to integrated assessments and forecasting the level of debt security in Ukraine are all of particular relevance. World practice has shown that countries with higher public debt are more vulnerable to changing financial conditions that can actually endanger the economy and contribute to increasing the depth and duration of a recession, given the government’s inability to provide sufficient budget to support the economy. The purpose of this study is to develop innovative approaches to assess and forecast the level of Ukraine’s debt security in order to adequately respond to existing destabilizing factors. The use of a methodical approach to estimate and forecast the level of debt security in Ukraine is substantiated. The following indicators are proposed for application in the process of debt security assessment: external debt to annual exports; the ratio of the total amount of external debt servicing payments to the state budget revenue (which is currently considered as an indicator of the state of budgetary security); the ratio of the cost of external debt servicing to annual exports and GDP; the ratio of international reserves to short-term public debt; the share of short-term public debt in its total volume. The state of debt security in Ukraine in 2009—2017 was estimated and a forecast was made for 2018—2020. Modern estimation mechanisms of the state of debt security were studied, their deficiencies were outlined and directions of improvement were proposed. It is shown that the overwhelming majority of Ukraine’s debt security indicators are in the critical and unsatisfactory and, moreover, tend to further deterioration. The methodical approach to the estimation and forecasting of the level of debt security of Ukraine, which represents the gradual implementation of the estimation and forecasting of debt security of the state, is highlighted and a list of the most optimal methods for application at each of the stages is grounded. Keywords: debt security of the state, state debt, debt guaranteed by the state, assessment of the level of debt security of the state, gross external debt, official international reserves. JEL Classification F34; H63; C60 Formulas: 4; fig.: 4; tabl.: 3; bibl.: 17.

МЕХАНІЗМ ДЕРЖАВНОГО УПРАВЛІННЯ БЮДЖЕТНОЮ БЕЗПЕКОЮ: КОНСТРУЮВАННЯ КАТЕГОРІЇ

Approaches to the definition of the category "public administration mechanism" are developed. Based on this, taking into account the peculiarities of the objective attention of the study, substantiated and formed the following conceptual content: "mechanism of public budget security management" is a subsystem of public budget security management, which is a set of interrelated methodological and organizational components. logical causal-effective connection reflects the actual content-structural sequence of the above process in space and time, through which the leading influence on budget security

Business Intelligence para apoio à gestão na construção civil: uma revisão sistemática da literatura

Introdução: A gestão é essencial para que se cumpram os requisitos de um projeto, e as ferramentas computacionais de Business Intelligence (BI) têm grande potencial de contribuição, fornecendo informações gerenciais sobre o negócio. Ferramentas desse tipo são utilizadas em diversos setores da indústria, porém na construção civil, foco deste trabalho, o cenário é diferente, com muito a avançar. Diante disso, apresenta-se um levantamento das ferramentas de BI aplicáveis ao setor da construção e suas utilizações. Método: Conduz uma revisão sistemática da literatura, que analisou 595 artigos de seis bases de dados (ACM, Engineering Village, IEEE, Material Science Engineering, Science Direct, Scopus e Web of Science). Resultados: Identifica 12 diferentes aplicações, principalmente na área de gestão de custos, orçamento da obra e segurança do trabalho. Nas aplicações, foram evidenciadas utilizações das tecnologias de Data Warehouse e OLAP. Verifica que a maioria das ferramentas de BI foram desenvolvidas para cada empresa em detrimento dos softwares comerciais. Conclusão: Existem diversas ferramentas de BI para a construção civil, com diferentes aplicações. A maioria dos softwares foram desenvolvidos para cada caso estudado devido às características únicas do setor da construção. A adoção em larga escala das ferramentas passe pela cooperação entre empresas, entidades de classe e universidades. Verifica limitações na pesquisa quanto à caracterização das empresas, devido à ausência desses dados nos artigos analisados. Sugere que os desafios de implementação das tecnologias e as limitações verificadas sejam abordados em estudos futuros.

Analysis of the distribution of equalizing grants for budgets of constituent entities of the Russian Federation

In the system of inter-budgetary relations in the Russian Federation, subsidies for equalizing the budget provision of regions take priority. The article analyzes their distribution, mainly for the subjects of the southern and North Caucasus Federal districts, as regions with the lowest budget security. The authors put forward proposals to improve the efficiency of the distribution of equalizing subsidies to the budgets of the Russian Federation’s constituent entities.

COMPARATIVE ANALYSIS OF INVESTMENT EXPENDITURES IN BUDGETS: REGIONAL ASPECT

The high level of differentiation of the constituent entities of the Russian Federation determines different approaches to the policy of budget investment. The purpose of the paper is to identify common regional trends in the implementation of capital investments at the expense of budget funds, interregional differences and interpret it. In the study, horizontal and vertical analysis of budget investments has been made, the lack of a significant relationship between the level of budgetary security of the constituent entity of the Russian Federation and the scales of its budget investments has been shown. It has been shown that the investment activity of the constituent entities of the Russian Federation is not a determining fac tor, but an important factor of their investment attractiveness. The materials of the article can be used as an information base for further theoretical and applied research on the expenditures of regional budgets in general and the problem of budget investment in particular.