Budget System Research Articles

Predicting the probability of failure in medicinesʼ public procurement

The quality and timeliness of medicinesʼ supply to the healthcare system through public procurement is an urgent task of public policy in all countries of the world, including Russia. Failure to close (failure of tenders, termination of already concluded contracts) procurement procedures in such a socially significant area carries risks for the population, provokes the emergence of hidden transaction costs for the budget system to eliminate the consequences of procurement failures. In their previous works, the authors identified the factors that lead to the failure to close tenders for the purchase of remedies, and initially assessed the consequences of their influence on procurement procedures. The purpose of this article is to present a mathematical model of the probability of non-closure tenders based on the obtained results. To achieve this goal, through processing more than 1 million notifications of public procurement of remedies for 2022–2023, collected from the open sources, the tasks with no methodological solutions were completed. Thus, a set of features accompanying the failure to close procedures for the purchase of remedies was compiled. The composition of identified features was analyzed; their influence on non-closure of the procedure was assessed. A model of the probability of non-closure of the procedure was constructed, and the results were interpreted. Unlike previously published studies, the forecast model was implemented on the ensembles of decision trees using gradient boosting. This made possible to significantly improve the quality of the forecast for each factor affecting the probability of non-closure of the bidding. The results obtained in the article are not only scientifically novel, but can also be used by regulatory and control bodies in public procurement to develop methodological recommendations for customers on establishing optimal conditions for concluding and fulfilling contracts, which will reduce procurement risks and damage to the state budget.

Improving the budgetary policy of municipalities

The subject of the study is financial relations of municipalities in terms of income generation. The purpose of the article is to disclose and justify measures to increase fairness of the distribution of personal income tax by fixing the share of such a tax for the municipality in which the citizen lives but does not work. The research methods are general scientific (analysis, synthesis, deduction, classification, work with sources) and empirical ones (horizontal analysis). The article considers the problem of imbalance of local budgets caused by pendulum migration and, consequently, by outflow of income from municipalities. An information and software solution has been proposed to ensure the fair distribution of part of the personal income tax between municipalities by the place of residence and work of taxpayers. The logical model of the proposed solution and necessary changes in legislation for its implementation are described. The scope of application is the budget system of the Russian Federation, namely the spheres of municipal finance. Further research should be aimed at identifying additional reserves for strengthening the financial autonomy of municipalities. The expected results of the work include improving the financial situation of the population, optimising the budget system and leveling the level of development of municipalities. The importance of the proposed solution for balanced regional development and improving the quality of life of citizens is emphasised.

Directions for the development of socially oriented taxation of income of Russians

Personal income tax (hereinafter referred to as PIT), in interaction with other instruments, can have a significant impact on the implementation of social goals aimed at improving the quality of life of Russians, reducing poverty, overcoming monetary inequality, and supporting low-income citizens, including families with children. The article is aimed at studying the theoretical and practical aspects of taxation of personal income regulated by Chapter 23 of the Russian Tax Code. It reveals the significant role of the PIT due to its revenue potential for the budget system of the Russian Federation and its regulatory impact on socio-economic processes in conditions of geopolitical tension, describes the current system of tax deductions, the need and directions for its improvement. The methodological basis of the study is founded on the analysis of scientific publications and open data of public authorities posted on their official websites. The analysis has been conducted using comparison methods, systemic logical and semantic analysis, synthesis of theoretical and practical material. The purpose of the study is to propose a gradual improvement of the mechanisms for providing standard and social tax deductions by increasing their sizes, introducing a subsistence minimum as a non-taxable income for all categories of payers, expanding the scope of application with consideration to the results of the ongoing socio-economic policy. The conclusions and generalisations of the study can be used when legislative and executive authorities and the scientific community develop proposals for improving the provisions of Chapter 23 of the Russian Tax Code, which will create a socially oriented domestic tax system.

Analysis of budget expenditures of the Republic of Kazakhstan

This article provides a comprehensive analysis of the structure of the budget system and expenditures of the Republic of Kazakhstan (ROK), which are characterized by complexity and multilevel and reflect the amount of financial resources and the size of budget constraints at the levels of the budget system. The main focus is on the republican budget, which generates the country's revenues and finances national expenditures directed to such areas as defense, national security, foreign policy, as well as projects and assistance programs. The functioning of the budget system is regulated by regulatory legal acts (NPAs), including the Constitution of the Republic of Kazakhstan, the Budget Code of the Republic of Kazakhstan and other NPAs, which ensures transparent and effective management of public finances. The Ministry of Finance of the Republic of Kazakhstan plays a key role in the implementation of the state financial policy, coordinating work with other ministries and departments.The article presents the results of the analysis conducted by the author of this article of the execution of republican budgets for the period 2018-2022. It is shown that all three categories of budgets (republican, regional and local) demonstrate steady growth in spending, which can lead to increased public investment and expansion of government programs. Special attention is paid to the increased level of education and health care, which ensures the priority and higher level of efficiency of these sectors in comparison with other sectors of the economy of the Republic of Kazakhstan. Based on the analysis, a SWOT analysis was conducted, which revealed the strengths and weaknesses of the budget system of the Republic of Kazakhstan, as well as identified threats and opportunities to improve its condition.The article concludes with recommendations on ensuring the sustainability of the budget system and improving the efficiency of budget funds, including measures to increase transparency and efficiency of budget processes, optimize budget allocation, improve the effectiveness of social programs, reduce public debt, develop interdepartmental experience and use the state experience achieved in a number of sectors and territories.

The principle of the budgetary system unity amid implementation of regional budget independence: A case study of the Chechen Republic

Aim. To identify the ways to improve the observance of the principle of unity in the process of formation of the budgetary system of the Russian Federation (RF) on the basis of the analysis of the revenue part of the regional budget of the Chechen Republic.Objectives. To identify problems related to the observance of the principle of unity in the process of forming the budget system of the Russian Federation; to reveal the problem of the socalled chronic income insufficiency in regional and local budgets; to provide evidence of the effectiveness or inefficiency of the current mechanism of inter-institutional financial relations in Russia on the example of the Chechen Republic.Methodology. In the course of the research, the authors used general scientific methods and a number of special ones, including statistical and economic analysis, economic-mathematical and abstract-logical methods, as well as the method of graphical representation of information.Results. The idea is substantiated that the principle of independence of regional budgets should not contradict the principle of unity of the country’s budget system. It is proposed to develop a budget financing mechanism that takes into account not only the difference in providing the region with financial resources for independent development, but also the opportunity to give the funds allocated from the state budget an investment character.Conclusions. The article defines the directions for improving the mechanism while respecting the principle of unity in the process of forming the budget system of the Russian Federation. The country’s budget system should become one of the main sources of investment in the economy of the country and regions.

Budgeting under martial law

In the conditions of martial law, the issues of ensuring the preservation of the national economy and further economic development are becoming relevant. An important condition for this is an efficient mechanism for the formation and implementation of the state budget. The budget formation mechanism is an important tool for ensuring sustainable economic develop­ment of the country while maintaining the stability of the budget system. The aim of the article is to determine the peculiarities of budgeting in the conditions of martial law. The research presented in the article is based on the hypothesis of the need to strengthen the financial potential of budgets of all levels at the expense of their revenues. Strengthening the income part will contribute to achieving economic stability and balance and determine the pace of social and economic development. The research methodology is based on general scientific and special methods. The main research methods are dialectical and institutional. Structural, compa­rative, method of scientific abstraction, analysis and expert evaluations were also used. Adap­tation of the budget formation system to social and economic changes and determination of priority directions for the further development of financial and budgetary relations require attention. For the thoroughness of the study, the structure of the revenue part of the state budget was analyzed during 2019–2023. The dynamics of attracting international financial aid and its share in the state budget were evaluated. In the course of the research, modern adaptation and transformation mechanisms implemented in budget policy under martial law conditions were determined. New approaches to the formation of the revenue part of the budget have been studied. On the basis of the conducted research, promising directions for improving the forma­tion of state budget revenues have been deter­mined, which will allow the budget system to function more effectively and efficiently. It is expedient to further improve the system of bud­get formation in terms of creating and imple­menting effective financial mechanisms of bud­get policy, with the aim of further social and eco­nomic development of the country. To increase the effectiveness of budget poli­cy in the conditions of martial law, it is necessary to strengthen the use of the principles of stability, financial and economic soundness, social jus­tice, and budget balance in the budget process

The Current State of the Russian Budget System and the Potential for Financing the Federal Budget Deficit

For the first time, Russia’s budget system is under large-scale stress in all areas: risks of losing the tax base due to international sanctions, a steady increase in unforeseen expenses, inflation risks, and rising debt servicing costs. In this regard, it is necessary to identify and analyze potential sources of financing the federal budget deficit as the main guarantor of budget stability. The article examines the state of the consolidated budget of the Russian Federation and the budgets of state extra-budgetary funds based on the results of the first half of 2024. It is shown that oil and gas revenues remain the main source of revenue growth. Among non-oil and gas revenues, personal income tax and VAT from domestic sales are growing at an accelerated rate. At the same time, the positive dynamics of some sectors of the Russian economy is largely due to budget financing. At the same time, inflation remains above target values, which forces the Central Bank of the Russian Federation to tighten monetary policy. The excess growth of federal budget expenditures and the increase in nominal rates threaten financial stability. In this regard, the article assesses the potential for financing the federal budget deficit in the context of strict borrowing restrictions. Based on the analysis of the state of the domestic federal loan bond market, a conclusion is made about the high risk of a liquidity crisis and the potential for placing domestic debt at the expense of non-bank financial institutions and individuals.

Pengaruh Penganggaran Berbasis Kinerja Terhadap Kenaikan Tunjangan Kinerja Bawaslu Dalam Perspektif Hukum Keuangan Negara

This research explores the impact of performance-based budgeting on the increase in the performance allowance of Indonesia's Election Supervisory Agency (Bawaslu) from the perspective of state financial law. This research examines how performance-based budgeting, which emphasises efficiency, effectiveness, and accountability, affects financial management and justifies the increase in allowances. By analysing the legal framework, empirical data, and performance metrics, this study aims to provide a comprehensive understanding of the alignment between budget allocations and performance outcomes in Bawaslu. The method used is normative research with primary, secondary and tertiary legal materials. The data generated from legal materials are described to find objective results. The results of this study The use of a performance-based budgeting system (ABK) by Bawaslu has influenced the policy of increasing performance allowances. Bawaslu's performance measurement refers to the principles of state finance, including efficiency, economic effectiveness, accountability, responsibility, professionalism, proportionality, and openness. The increase in Bawaslu's performance allowance is in accordance with the performance improvement that has been evaluated by Menpan RB, which is the institution responsible for bureaucratic reform.

Межбюджетные отношения в Казахстане: состояние и основные тенденции

Balance of the state budget is one of the necessary conditions for the effective functioning of the budget system of the country. This balance is largely determined by inter-governmental fiscal relations and the resulting redistribution of financial resources between the central, regional and local levels of the budget system. Inter-budget relations in Kazakhstan over the past two decades have undergonesignificant changes, which further increased the relevance of research on this topic. Such aspects of inter-budget relations as the increase in the volume and specific weight of transfers from the republican budget to the budgets of lower state bodies, the growth of the number of subsidized regions, the reduction of revenues to the republican level from the regional level, caused special attention to this problem in the budget process of Kazakhstan. The article examines the state and development of inter-budget relations in Kazakhstan in terms of these aspects in order to identify the main trends of their transformation and assess their impact on the budget process. The article analyses the main parameters of inter-budget relations in Kazakhstan, reveals trends in the role of subsidies and exemptions from local budgets, and considers the dynamicsof the number of subsidized regions and donor regions of the republican budget. It is noted that there is no noticeable improvement in the situation at the level of regional budgets, despite the increase in their revenue base due to the transfer of a number of tax revenues to the local level in 2020. Based on the analysis, the author concludes that the situation in the sphere of inter-budget relations in Kazakhstan is deteriorating, which is manifested in a constant decrease in the number of donor regions and an increase in the number of regions receiving subsidies, an increase in the share of subsidies in the revenues of local budgets, and a decrease in the share of exemptions from local budgets in the state budget revenues. It is also noted that the imbalance of inter-budget relations leads to the complication of the budget process at the republican level, which requires the adoption of measures to further increase the financial independence of the regions.

Digital Project Management and Budgeting System

Digital Project Management and Budgeting System

Influence of the Budget Control System on the Company's Financial Performance

A company certainly has goals to achieve. Various things can help in achieving company goals, one of which is the budget control system. The purpose of this study was to determine the effect of the budget control system on financial performance. The type of research used is quantitative. The data source used is secondary data obtained through the documentation method. The population in this study were companies in City X. Meanwhile, the sampling technique used in this study is a non-probability sampling technique, more precisely using saturated sampling technique, namely sampling determination technique with all population members used as samples. The sample obtained was 90 companies in City X. The data analysis techniques used are validity test, reliability test, normality test, and t test and determination coefficient test for hypothesis testing. The results obtained that the budget control system has a significant effect on the company's financial performance. The better the financial control system, the better the financial performance.

Non-legal forms of financial activity in the context of the development of the concept of a “service state”

Taking into account the development of the concept of the “service state”, it is proposed to analyze the possibility of defining illegal forms of financial activity of the state. Foreign and domestic science consider the organizational activities of the state by building client relations between the state and society using various information technologies that allow providing state and municipal services. In this regard, it is appropriate to talk about the services provided related to the financial sector. The author concludes that: a) although the legal forms of financial activity of the state are predominant, nevertheless, non-legal forms are developing in the context of digitalization of public administration; b) non-legal forms of financial activity of the state should include: the portal of public services of the Russian Federation; a unified information system in the field of procurement; personal account of the taxpayer; unified portal of the budget system of the Russian Federation “Electronic budget”.

Impact of revenue on budget implementation in Nigeria: an Appraisal of FCTA

The study examines the impact of Revenue on Budget Implementation in Nigeria with particular reference to Federal Capital Territory Administration (FCTA). The data was obtained from secondary sources. The variables studied were Actual Total Expenditure as dependent variable while Actual Recurrent Revenue Receipt and Actual Capital Receipt as independent variables. The methodology employed was OLS regression model. The Result suggests that, the Actual Recurrent Revenue Receipt has a positive and significant impact on Budget Implementation. On the other hand, Actual Capital Receipt had a positive but insignificant impact on Budget Implementation. The researcher concludes that Actual Recurrent Revenue Receipt and Actual Capital Receipt have positive impact on Budget Implementation; however, bureaucratic bottleneck militates against budget implementation efficiency. In view of that, the study recommends that, there is need for increase in capital grants to enhance capital receipts in order to finance capital projects. FCTA should improve on its revenue collection by exploring other sources of Internally Generated Revenue (IGR) like Property Taxes on unoccupied estates in the city so as to boost performance in revenue collection and improve on collection of water bills etc. Relying on the existing tax base, FCTA can maximize on the collection of taxable (withholding tax etc.) and vatable items on goods, supplies and services through proper inspection of taxable and valuable items before payment to all and sundry. There is also the need for digitization of the budget system, incentives and adequate training to serve as motivation, improve capacity, collection of revenues, enhance the budget preparation exercise and implementation, as well as to guard against all sorts of behaviors.

Режимно-правовое регулирование рассмотрения и утверждения бюджетов

Regime and legal regulation of the consideration and approval of budgets in the Russian Federation has undergone significant changes in recent years, and, at the moment, it can be characterized by a number of specific features. Firstly, after the approval of the draft law on the federal budget, such a document acquires the status of a normative legal act — a federal law for the federal budget and a normative legal act of a different level for budgets of other levels of the budget system of the Russian Federation, while it is limited to the next financial year and planning period. Secondly, the peculiarity of the process of reviewing and approving the budget is associated with the presence of the “zero reading”procedure, which does not have legislative regulation in the norms of Russian law, but since 2002 has been actively used in practice, and, in its essence, is an integral stage of the review process and approval of the budget not only of the federal budget, but also of other budgets of the budget system of the Russian Federation. In this regard, at the moment, the most relevant direction for improving the budgetary and legal regime for reviewing and approving the budget seems to be improving national legislation in terms of enshrining “zero reading” in the provisions of the Budget Code of the Russian Federation as an integral part of the process of reviewing and approving the budget. Thirdly, the regime-legal regulation of the consideration and approval of budgets involves the establishment of general rules for approving a draft law in a stable situation, as well as the establishment of special rules if it is impossible to apply the traditional procedure for approving a draft budget law. The purpose of such a special budgetary and legal regime is to ensure stability and continuity of the budgetary process, regardless of internal or external factors, until a regulatory legal act of the appropriate level is adopted.

State target pogrammes in the system of results-based budgeting: Legal aspect

The relevance of this study is conditioned by the need to improve the legal regulation of state targeted programmes in Ukraine, which is an essential part of the results-based budgeting methodology. Due to the constant changes in the budget planning system, there is a need for a comprehensive study of the effectiveness of such programmes and optimisation of legal support. The purpose of this study was to formulate scientific and theoretical provisions for identifying systemic shortcomings in the implementation of budget targeted programmes, assessing the effectiveness of legal regulation and developing a unified methodology for strategic planning. To fulfil this purpose, the study employed the dialectical method of analysis, as well as special legal methods, including comparative and historical and legal analysis. The study examined the evolution of the budget planning system in Ukraine, starting with state programmes, which were replaced by state targeted programmes, and ending with national projects. It was found that, despite the changes in the titles of the documents, the main problems persist, namely, the uncertainty of the methodology for developing programmes and inconsistency of legal norms. The study analysed the causal factors of failures in the implementation of state targeted programmes, including unclear and redundant development methodology, as well as problems with legal regulation. The conclusions on the need to improve the legislation governing certain elements of national projects were summarised, and the expediency of continuing to apply result-based budgeting for state targeted programmes was confirmed. The practical value of this study lies in the fact that its findings can be used by public administration bodies, developers of strategic documents, and academics to improve the budget planning process and improve the implementation of state targeted programmes

Tax potential of municipalities as the basis of regional budgets

In the Russian Federation (hereinafter referred to as RF, Russia), which is a federal state with a three-level budget system, it is assumed that there is tax potential at all levels: federal, regional, and local. With the help of taxes, the financial basis of local governments is formed and the socio-economic development of municipalities is ensured. In developed countries, municipal budgets are formed mainly from the taxes assigned to them. In Russia, they continue to remain the most problematic link in the country’s budget system. The purpose of the article is to study the influence of the taxes assigned to local budgets on the formation of the tax potential of the municipalities. Objectives are the following: analysis and assessment of revenues of the Russian local budgets in dynamics, justification of directions for increasing the tax potential. The methodological basis of the research is founded on a systematic approach, within which the following methods have been used: analysis and synthesis, generalisation, grouping, tabular method, etc. The research has found that over the past years, with the introduction of the Tax Code of the RF, problems of insufficient tax and non-tax revenues remain for most municipalities, low level of the tax potential and predominance of interbudgetary transfers in their budgets are current. Due to the increasing centralisation of the tax revenues, the degree of dependence of the municipalities on the federal centre is high. Without actually enhancing the tax potential of the municipalities, the development of the regional economy is impossible. The re -search results can be used in practice when developing economic policy for municipal development.

Современная парадигма пенсионного обеспечения в Европе

Introduction. Pension systems are a key element of social protection for the elderly. They are designed to provide senior citizens with stable income not from work. However, pension systems currently being developed in Europe are increasingly exposing the working-age population to the risk of poverty in old age. The European pension paradigm strives for an adequate level of pension payments and builds financial protection against poverty, while the future evolution of wages and prices remains unknown for Europe as a whole.Methods. Scientific research is based on general and special methods of scientific cognition. In the process of forming the concept of the scientific article, modern scientific methods of studying economic and social phenomena were used, including methods of system-structural, functional, factorial and comparative analysis, as well as categorical, logical and structural analysis and synthesis, detailing and generalization, grouping and comparison, identification of cause-and-effect relationships. The authors proceed from an understanding of the scientific hypothesis of reforming the pension system, which ensures long-term investment by the working-age population with income in the future. The empirical base of the study was made up of current data from cross-country comparative studies of Europe in terms of typology of state pension systems.Results. Based on the functional method of cognition, the authors of the scientific article systematize the main types of state pension systems of the European Union, representing the complex content of the indicator value of pension payments. It is noted that in the context of reforming the pension systems of the European Union countries, the reorganization of the functional and ideological components of pension provision, aimed at protecting consumers of pension savings, makes it possible to increase the socio-economic standard of living. Although EU pension systems differ in many respects, they all have one common problem - finding ways to maintain the financial sustainability of the budgetary system while paying pensions in the long term against the backdrop of an aging population and the problem of increasing the ratio of pensioners to the working-age population.

ДЕЦЕНТРАЛИЗАЦИЯ МУНИЦИПАЛЬНЫХ ФИНАНСОВ КАК СПОСОБ ПОВЫШЕНИЯ УСТОЙЧИВОСТИ МУНИЦИПАЛИТЕТОВ

Financial independence is one of the "pillars" on which local self–government rests. Without adequate funding, it is impossible to fully resolve issues of local importance. In Kyrgyzstan, the issue of financial decentralization has always been in the spotlight, but the view on it has constantly changed. Until the 2000s, the number of local taxes and fees in the arsenal of local government included sixteen items, then this number was reduced to eight. The Tax Code in its modern version contains only one type of local tax – on property (movable and immovable). Although funds from some republican taxes go to local budgets. In 2006, a two-tier budgeting system was introduced with the abolition of the budgets of regions and districts, and standards for the formation of local budgets began to be calculated according to the Government formula. The author of the article has his own opinion, believing that it is necessary to increase the number of local taxes and fees, thereby stimulating interest in their collection, and not depend on the formula and transfers. At least half of the local budget and more should be formed at the expense of local taxes.

Особенности возбуждения уголовных дел по налоговым преступлениям, предусмотренным статьями 198 и 199 УК РФ

The article analyzes the peculiarities of the initiation of criminal cases on tax crimes. It is noted that if the facts of nonpayment of taxes by the taxpayer’s counterparties with signs of fictitiousness are revealed, the head or other officials of the taxpayer organization can be held liable for tax evasion (Articles 198, 199 of the Criminal Code of the Russian Federation) only if there is evidence of their collusion with individuals controlling the counterparty or evidence of the counterparty’s control over the head or other officials of the taxpayer organization. In the case of establishing the fictitiousness of an intermediate link, it is necessary to establish who actually exercised control over such a link, where the funds were sent, as well as other circumstances that may contribute to the identification of the final beneficiary. The conclusion is formulated that the initiation of criminal cases after full payment of taxes is not allowed. Timely payment of the additional amounts excludes bringing a person to criminal responsibility. The initiation of a criminal case, which generates unjustified threats to a person, his rights and freedoms, is disproportionate to the consequences in the case of full compensation for the damage caused to the budget system.

Optimization Analysis of Comprehensive Budget Management from the Perspective of Digital Restructuring: Taking a Water Company as an Example

This article takes water enterprises as the research object, exploring the organic combination of comprehensive budget management under the trend of digitalization and digital technology in the new era, as well as the process of management system reform. Introduce the current status of its budget management work, comprehensively analyze the architecture and operation mode of the current comprehensive budget management system of water enterprises, and evaluate and analyze the overall situation and shortcomings of its budget management system based on financial data such as budget formulation and execution. From the perspective of digital restructuring and upgrading of comprehensive budget management work, corresponding countermeasures are proposed to make up for the shortcomings and suggestions for the future development of the enterprise’s comprehensive budget.