Budget Security Research Articles

State budget deficit in the context of national security of Ukraine

The article considers the state budget deficit as a key indicator of Ukraine’s budget security. The main threats of the state national security in the economic sphere, their preconditions and consequences, as well as the impact on the state of public finances and processes of external migration of the population are investigated. The role of the Pension Fund of Ukraine in the process of forming the state budget deficit of Ukraine is analyzed. It is proved that each of these threats is a systemic destructive phenomenon that negatively affects the state’s economy and has direct or indirect impact on public finances and, in particular, on the level of budget security. It is substantiated that an adequate level of budget security is a basis for the protection of national interests’ formation of Ukraine and sustainable development of the national economy. It is noted that the overall effect of the totality of all threats (latent, explicit, potential, direct and indirect) to the national security of Ukraine is quite clearly traced when analyzing the state of public finances in general and the nominal volumes and dynamics of changes in the state budget deficit as a percentage of GDP. It is determined that the calculations of indicators of Ukraine’s budget security assessment and comparison of obtained results with their normative values prove that there is a threat to the financial and economic system of the state due to large amounts of government debt and excessive amounts for their repayment and servicing. The main reasons for the deviation from optimal values of the level of redistribution of GDP through the consolidated budget, the ratio of total payments for servicing and repayment of public debt to state budget revenues as the most critical indicator of budget security. A set of measures for minimizing the negative impact of systemic threats in the economic sphere on the state of public finances and the level of national security of the state is proposed

Budgetary Policy in the Financial Security System

The financial security of the state becomes especially important given the crisis manifestations in the global financial system, loosening of the state control over the monetary system and the increasing political pressures on economic processes. The article’s objective is to review the theoretical foundations of the financial security and analyze the impact of the budgetary policy on the budgetary security as the core the financial security of the state. A statistical analysis of the budgetary policy impact on the budgetary security is made for the period of 2015–2019 on the basis of Methodological Recommendations on Computation of the Economic Security Level in Ukraine, with assessing four indicators: (i) the ratio of the public budget deficit/surplus to GDP; (ii) the share of deficit of budget and off-budget funds of the general government in GDP; (iii) the share of GDP redistributed via the consolidated budget; (iv) the ratio of cumulated payment for debt service and repayment to the public budget revenue. The assessment scale ranges from 0 to 1 (or from 0 to 100%) and consists of five intervals: absolutely critical level of danger; critical level of danger; dangerous level; unsatisfactory security level; satisfactory security level; optimal security level. Results of the analysis give grounds to suggest that the policy concerned with public borrowing, debt service and repayment is must be urgently revised, because the respective indicator (which is the ratio of cumulated payment for debt service and repayment to the public budget revenue) was signaling extremely high levels threats to the budgetary security in 2015–2019 and, eventually, to the financial security of the country.

Фінансова безпека в умовах цифрової економіки: очікування і реальність

The article analyzes scientific views on the nature and factors of financial security. The features and qualitative characteristics of digital technologies and financial innovations based on them are disclosed in relation to expectations and impacts on financial security in the digital economy. It is determined that cryptocurrency is a radical financial innovation, with the growth of market capitalization of which we should expect the emergence of risks for monetary policy, the international monetary system, international settlements and lending, and attracting investments. The position of central banks on the regulation of cryptocurrency and the issue of digital currency of central banks is characterized. An assessment of the possible consequences of the impact of the spread of cryptocurrency on budgetary security is made. Generalization of the practice of taxation of cryptocurrency, made it possible to identify threats to tax security and measures to neutralize them. Taking into account the multi-aspect nature of financial innovations, the potential capabilities of digital technologies (Big Data, artificial intelligence, machine learning, blockchain) and financial innovations based on them to strengthen financial security are substantiated.

CURRENT ISSUES OF REGULATORY AND LEGAL SUPPORT OF BUDGET SECURITY IN UKRAINE

The article is devoted to the characteristics of the regulatory and legal support of budget security in Ukraine. Regulatory and legal support of budget security is understood as a state view of its essence and content, which determines the official ideas and views that relate to it, including the conditions and procedure for cooperation between the state and society in ensuring budget security. A classification of doctrinal interpretations of the concept of "budget security" was proposed, namely: the ability of the state to effectively perform its own tasks and functions with the help of the budget; the ability of the banking system to ensure the rational formation and use of budget funds to ensure financial stability and independence of the state; the state of ensuring the solvency of the state; the process of developing, implementing and monitoring budget execution; an indicator for assessing the effectiveness of public policy in social and other spheres of public life and the performance of its functions. The author's interpretation of the concept of "budget security" as ensuring the safe state of public economic relations, which mediate the formation and use of a centralized fund of financial resources of state and local levels, designed to ensure the tasks and functions of these entities, creating conditions for development and strengthening democratic, social, legal state. It was proved that the regulatory and legal support of budget policy has a hierarchical organization and covers the Constitution of Ukraine, codes of Ukraine (Budget Code of Ukraine, Tax Code of Ukraine, Criminal Code of Ukraine, Code of Administrative Offenses), laws of Ukraine "On State Budget for… year" , a number of laws regulating relations in the field of budget security, as well as bylaws that ensure the implementation and enforcement of the mechanism of budget security of Ukraine, resolutions and regulations governing the work of state bodies and institutions in the field of budget security, decisions and normative legal acts of local authorities and local self-government bodies in the researched sphere. The leading role in the researched problems is played by a number of international acts ratified by Ukraine, the norms of which directly or indirectly concern ensuring the budgetary security of the country.

КОНЦЕПТУАЛЬНІ ПОЛОЖЕННЯ ДОСЛІДЖЕННЯ СУТНОСТІ БЮДЖЕТНОЇ БЕЗПЕКИ

Within the article, conceptual provisions of the essence research of the category "budget security" are considered. In particular, the nature of such definitions as "security" and "budget" is analyzed, which allowed us to clarify basic scientific concepts for considering their content. The study of certain provisions of security research as a universal scientific category allowed specifying its main characteristics, and the knowledge of the essence of the definition of "budget" as an integral part of the conceptual and categorical apparatus of financial science made it possible to establish the existence of a multivariate approach to understanding its nature. This contributed to the description and identification of specific provisions, and their consideration will justify the essence of the category of "budget security", given its complex structure.

Development of diagnostic tools and ensuring the financial and budgetary security of the region

The aim of the study is to analyze and improve the system of theoretical and economic tools for diagnosis and ensuring financial and budgetary security. The scientific approaches to the disclosure of the concept of the mechanism of ensuring economic security, the most important part of which is financial and budgetary security, are investigated. The above mechanism in these works is studied only within the framework of the national level (macro level), while due attention is not paid to the study of this concept at the regional level (mesoscale). The article formulates the concept of “a mechanism for ensuring the financial and budgetary security of the region”, and also proposes a new diagnostic toolkit for indicators of financial and budgetary security at the regional level, which was tested on the example of the Kirov region.

Methodology for assessing the budgetary security of regional infrastructure provision (case study of the Komi Republic)

The aim of the study is to analyze methodological approaches to assessing the budget component of financial and budgetary security and to develop a methodology for assessing the budgetary security of a region on their basis. In the process of research, statistical and mathematical methods were used, a comparison method, an indicative method, analysis and synthesis methods. A brief description of the main approaches and methods for assessing the regional budget security is given, and the most significant indicators are selected that allow diagnosing threats to the budget component of the regional financial and budget security. The article presents the author’s methodology for assessing the budget component of the financial and budgetary security of the region, a set of indicators and threshold values for its implementation is formed. The proposed methodology has been tested on the example of the analysis of budget security indicators of the Komi Republic.

Sustainability and economic security of territorial development in St. Petersburg

The research is devoted to improvement of the methodological tool for assessing the sustainability of the socio-economic territorial development in megalopolis based on the analysis of local budget expenditures for the development of social infrastructure and security. The purpose of the research is to determine the compliance of financial capabilities of the territory and the needs of the residents to for comfortable and safe urban environment. The paper uses methods for normalizing indicators by reducing the size scale to the dimensionless scale, comparative studies, and the results of sociological surveys. The author has calculated the coefficients of budget stability and security index for the St. Petersburg’ districts, and established the nature of the relationship between the factorial indicator of tax revenues and local budget expenditures to ensure the quality of life for residents. The proposed approach allows us to assess the efficiency of budget expenditures and compare the results of statistical data and sociological surveys on the level of development of social infrastructure and security in the metropolis. The results can be used to assess the effectiveness of local budget expenditures and programs for the sustainable development of St. Petersburg.

State Budgetary Security Determinants

Бюджетна безпека держави обумовлюється низкою детермінантів, які визначають зміст, структуру та рівень її забезпечення. Визначено, що визначальними фактами забезпечення державного бюджету є фактори, загрози як екзогенного, так і ендогенного походження, а також причинно-наслідкові зв’язки, які прямо чи опосередковано визначають його рівень та складність процесів його забезпечення.Запропоновано перелік основних детермінант, що впливають на забезпечення бюджетної безпеки держави з урахуванням процесів глобалізації, конструктивного / руйнівного впливу факторів та загроз. Зазначається, що систематичним елементом забезпечення державного бюджету є державний бюджет, який є багатогранним поняттям. Бюджет як інструмент державної політики відіграє ключову роль у забезпеченні соціально-економічного розвитку держави, реалізації її національних інтересів, а саме на обсяг та структуру дохідної та видаткової частини бюджету впливають на функціонування всіх галузей економіка.Обґрунтовується необхідність забезпечення бюджетної безпеки як складової соціально-економічного розвитку та передумовою здійснення ефективної державної фінансово-економічної політики як основи досягнення національних економічних інтересів держави.Систематизовано основні детермінанти впливу на бюджетну безпеку держави з урахуванням глобалізаційних процесів та багатокритерії існуючих факторів та загроз як екзогенного, так і ендогенного походження.

Strengthening financial decentralization: driver or risk factor for sustainable socio-economic development of territories?

The article deals with the problem of modeling the effectiveness of the development of financial decentralization mechanisms. A conceptual approach is proposed, which allows to form a complex of models. The models allow to evaluate the socio-economic effects of financial decentralization increase; to determine the “threshold” value of the level of financial decentralization, upon which slowdown in economic growth may occur. The models are based on based on the principal components’ method, canonical correlations, cluster analysis, Kohonen neural networks, the level of development method, production and institutional functions. The modeling results showed that a high level of financial decentralization is inherent to countries with a high level of economic development, where high quality institutional environment and administrative decentralization lead to the increase of the efficiency of the public sector functioning. At the same time, in countries with a high level of competitiveness and socio-economic development the gap between the growth rates of income and expenditure powers of budgets of various levels and the growth rate of GDP is growing. This fact reduces the level of budget and debt security. Models of production and institutional functions have been developed, countries with a “reference” development model have been identified, as well as groups of countries that would have a higher effect from the re-centralization of government finances or financial decentralization.

Evaluating the Performance of the Policy and Potential Investment Development of Northern and Artic Municipalities

ABSTRACT The article considers the efficacy of municipal investment policy in the Russian North and Arctic, as well as the budget security and investment potential of municipalities during financial crises. The measures taken by federal and municipal authorities to create a favorable investment environment are given a performance evaluation. In terms of potential northern municipal investment, it is concluded that the growth and intensification of investment activity depend on the locations and capabilities of city-forming enterprises. Therefore, future investment in the northern regions will be primarily dependent on the stable functioning of oil-and-gas municipalities and monotowns.

Financial Support of Regions as a tool to Equalize budgetary Security of the Constituent Entities of the Russian federation

The authors have considered current forms and methods of financial support for the regions in Russia. The dynamic analysis allowed to obtain a comprehensive assessment of the interbudgetary transfers provided by the federal budget for the socioeconomic development of the regions in recent years with a view to reducing their economic differentiation and ensuring the implementation of the state regional powers. The methods of economic and statistical analysis were used. The authors conclude that the main form of financial support for the regions of Russia is subsidies to equalize fiscal security. The study proved that the increasing financial assistance in the form of subsidies leads to a decrease of the budgetary support level of the regions. Financial support for the Russian regions in the form of subsidies and subventions has a number of serious shortcomings: the multi-channel financial assistance to the region and the lack of an integrated approach which leads to dispersal and low return on public funds and makes it difficult to control their spending; fragmentation of its provision; reduction of incentives for self-development; difficulty in assessing the amount of assistance needed; refinancing. The identified problems require further implementation of motivation mechanisms for the state authorities of the constituent entities of the Russian Federation to increase the tax revenues of the regional budget. The article outlines possible ways to form financial incentives for independent regional development. It is proposed to provide the regions with consolidated subsidies. The regions will be able to independently determine the directions for their spending. This will allow for a balanced transition from the state control over spending the subsidies to the control over the results of their allocation.

Current state of financial policy and budgetary security of Ukraine

The subject of the study is financial policy and budgetary security. The purpose is studying the current state of financial policy and budgetary security of Ukraine. The methods used in the research process: method of comparative analysis, generalization, statistical and other research methods. The results of the work. In the article the current state of financial policy and budgetary security of Ukraine is characterized; the state debt, budget deficit and the expenditures for financing the needs of defence and security are analyzed. The important task of the state financial policy and the ways of its implementation are noted. The factors to be taken into account in financial policy-making for the medium-term perspective and the main problems of financial policy are identified. The attention is paid to the important issues of the relevant financial policy implementation. The budgetary security of the state with its main tasks is analyzed. Its most important criteria and what it should provide are defined. The initial characteristics of budgetary security and its leading threats are shown as well as the main indicators of budgetary security and priorities for its strengthening. The field of application of results: the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine. Conclusions. The article contains the analysis of the state debt of Ukraine (estimated at UAH 1929759 million in 2016, UAH 2141674 million in 2017, UAH 2168627 million in 2018, UAH 2171918 million as of 31.01.2019), the deficit of state budget of Ukraine (estimated at UAH 70130 million in 2016, UAH 47850 million in 2017, UAH 94116 million in 2018, UAH 90732 million as of 31.01.2019), the state budget expenditures for financing the needs of defence and security (estimated at UAH 58097 million in 2016, UAH 68859 million in 2017, UAH 98800 million in 2018, UAH 102910 million as of 31.01.2019). Analyzing the data of state debt, budget deficit and state budget expenditures for financing the needs of defence and security we can say that today there is much work to do. It is necessary to find the ways of solving many problems for our country’s prosperity.

Assessment of Budget Security of the Region in the Context of Strategic Transformations

The key problems of the functioning of regions in the context of strategic transformations are associated with the formation, distribution and deficit of budgets. The main idea and purpose of the article show the importance of addressing issues related to the emergence of current and future threats of a budgetary nature, which allow ensuring the smooth functioning of strategic mechanisms in the region. To achieve this goal, a theoretical identification of the concept of budget security was conducted, as well as studies of the empirical nature of the main components of budget security for the budget of the Perm region. The authors hypothesize that budget security is a key component of the budget system, and budget system methods are applicable to neutralizing the threats to this system. In the authors’ observation, special emphasis is placed on the ideology of assessing the budget security of the region, which is based on an indicative approach. A methodological approach to assessing the budget security of the region based on the coefficient analysis of budget indicators is proposed. The assessment of the budget security index of the regions of the Volga Federal District and their typology demonstrates the threats of a significant group of regions. Among the main reasons, the fact of formation of a revenue part of budgets, occurring in ambiguous conditions, which are determined by various factors, is noted. The main conclusions of the authors prove that during the time of strategic changes in the budget system, regional and local authorities face difficult tasks in eliminating growing threats.

Features of formation of the state budget security

Relevance of the research topic. Socio-economic development, which is the main task and simultaneously an instrument for ensuring the effective functioning of the country and increasing the well-being of its population, is directly dependent on the effectiveness of fiscal policy. The choice of forms, methods and models of budget regulation allows to achieve the achieved results by allocation and redistributing the gross domestic product according to the priorities of ensuring economic growth. However, at the present stage, the danger of destructive influence on the budget system of endogenous and exogenous factors of influence increases. Thus, the analysis and characterization of the main approaches to the formation of the state budget security and determination of its increase the directions in the conditions of the country's transformation fiscal system and the limited financial resources are relevant. Formulation of the problem. Budgetary security as a component of the country's financial and economic security reflects the ability to effectively use financial resources accumulated in centralized and decentralized funds to ensure the country's financial stability, opportunities for expanded reproduction and social development. That is why it is expedient to determine the main threats to budget security, the degree of their impact on economic dynamics and possible options for their minimization. Analysis of recent research and publications. The work of foreign scientists is devoted to the study of the formation and assessment of the country's budget security: S. Blancart, J. Buchanan, J. Golden, R. Kelly, A. Rotfeld, A. Pigou, R. Dornbusch, J. Stiglitz, A. Hansen and others. Theoretical and practical contribution to the assessment of the budget regulation role of the socio-economic development and ensuring a sufficient level of its budgetary security of domestic scientists was made by O. Vasilik, V. Geyts, V. Gorbulin, A. Gritsenko, L. Lysyak, I. Lukyanenko, V. Oparin, S. Pirozhkov, V. Fedosov, I. Chugunov, S. Yuri and others. Selection of unexplored parts of the general problem. Highlighting issues become relevant in the face of increasing integration processes and financial globalization. It is important to develop the institutional framework for budget security, the expansion the system factors and indicators that characterize it, in accordance with international requirements and standards. Setting the task, the purpose of the study. The task of the study is to analyze the budget security characteristics. The aim of the study is to reveal the methodological and practical provisions of the formation Ukraine budget security in the context of the institutional modernization of the economy and to determine the directions of its increase by means of fiscal regulation. Method or methodology for conducting research. The article uses a set of methods and approaches of scientific knowledge, among which it is worth noting: systemic, structural, comparative, statistical, analysis and synthesis, synthesis and scientific abstraction. Presentation of the main material (results of work). The features of the formation of the country's budget security are determined. The main indicators of the functioning of the budget system of Ukraine are characterized and the degree of their influence on the level of budget security and socio-economic development is determined. The directions of increasing budget security in the context of institutional modernization of the economy are substantiated. The field of application of results. Organization and conduct of research on the formation and improvement of the budget security. Conclusions according to the article. The country's budget security is one of the main indicators of the level of development of the financial system. Providing long-term sustainability of public finances, balancing social and economic development is a priority task of state authorities. The main indicators of Ukraine's budget security show that there are destabilizing factors, but effective budget regulation will minimize their negative impact on the pace of economic growth. It is advisable to increase the level of budgetary discipline, improve medium-term budget planning and forecasting, form an effective strategy for managing public debt and budget deficit.

Ukrainian regions’ budget security in the conditions of public administration decentralization

The significance of regions’ budget security as a component of financial self-sufficiency in the conditions of public administration decentralization is revealed. The definition content of «region’s budget security “ is defined from the standpoint of balance of local budgets in terms of revenues and expenditures, risk and threat assessment, sufficiency of financial support for the execution of functions and powers entrusted to local governments. The budgetary security of the region is proven to be a condition that ensures the balance of local budgets in terms of revenues and expenditures in current and strategic dimensions, which allows the local governments to fully fulfill their functions and powers, to neutralize the existing risks, threats and dangers. The author’s approach to rating regions of Ukraine is outlined. It is carried out on the basis of such key indicators as balance of the regional budget in % to GRP, budget’s revenues of the region per capita, budget expenditures per capita, ratio of the amount of received transfers to the sum of budget expenditures of the region in the consolidated state budget, the ratio of tax and non-tax revenues to the local budget, the share of tax revenues in the total budget of the region, the share of official transfers in the total local budget revenues, transfers from the state budget in % to GRP. This allows for determining of the level of budgetary security of territorial entities. The main methodological principles for the rating of regions are defined: the selection and evaluation of absolute indicators, the analysis of relative coefficients, the choice of integral indicators and the formation of rating estimates. The results of the analysis of the budgetary security of the regions revealed significant disparities in the formation of local budgets in terms of revenues and official transfers from the state budget and their significant budgetary differentiation. The uneven amount of transfers in total local budget revenues and the substantial dependence of territorial communities on public funding are emphasized.

«Модельные» бюджеты: последствия для субъектов Российской Федерации

The article studies the proposed method of distribution of subsidies among the subjects of the Russian Federation based on the calculations of ‘model’ budget. The authors analyzed the real consequences of the mechanism of redistribution of total subsidies aimed at equalizing the budgetary security and clarified the method of increasing the subsidies to the least secure regions to realize two goals: 1) provide equal access to constitutional rights to all the citizens; 2) limit the burden on federal budget and decrease the level of subsidies to the federal subjects of Russia. The analysis of consequences of using ‘model’ budget was based on the Far Eastern subjects of Russia. There are positive and negative sides to changing to the ‘model’ budget method for the Far East. In case of using the ‘model’ budget there is a discrepancy between budget expenses and estimated demand for subsidies. It is necessary to fully account for appreciation factors and coefficients, population numbers and the specifics of transportation expenses of institutions that provide the access to constitutional rights, including the specifics of transport network of every federal subject. The hypothesis is that the ‘model’ budget has to be based on the norms of financial expenses required to carry out the authority by a particular subject. Otherwise the regional budgets will be based on the current actual average expenses, which will lead to the transfer of budgetary means from the northern and Far Eastern subjects to the others

Бюджетна безпека України: динаміка рівня в умовах глобалізаційних змін

Бюджетна безпека України: динаміка рівня в умовах глобалізаційних змін

Економічна сутність та роль бюджетної безпеки держави: вітчизняний і зарубіжний досвід

Економічна сутність та роль бюджетної безпеки держави: вітчизняний і зарубіжний досвід

Механизм финансирования бюджетных учреждений как инструмент обеспечения бюджетной безопасности государства

Механизм финансирования бюджетных учреждений как инструмент обеспечения бюджетной безопасности государства