Budget System Research Articles

Türkiye’de Parlamenter Sistemden Cumhurbaşkanlığı Sistemine Geçişin Bütçe Sistemine Etkisi

The budgetary process in a country is affected by the structure of the executive and legislative branches of the government and the distribution of power among these units. This study sets out to explore the effects of the change in these structures and power distribution on the budgetary system. Two main research questions are investigated: 1) How did the transformation from parliamentary to presidential system in Turkey influence the budgetary process and institutions? 2) What problems occurred with the transformation in the budgetary system? A case study of Turkey is undertaken, and interviews are conducted with budgetary officials to answer research questions. Three key findings emerged from this study’s analysis. Firstly, the transformation established new budgetary actors and kept some of the previous actors. Coordination between these actors is required for a well-functioning budgetary system. However, differences between the actors in terms of goals and practices can affect the quality of this coordination. Secondly, the emergence of two main actors in the budgetary process can cause issues resulting from different objectives, policies and statuses. Lastly, the timetable for the budget and the new budgetary approach can result in an unbalanced workload throughout the year for budgetary organisations.

The Financial and Legal Nature of Quasi-Grants Transferred to Polish Local Government Units From State Government Earmarked Funds

In the field of public finance, earmarked funds are regarded as a versatile instrument for funding public tasks, and an important complement to the traditional budgetary system. They were deliberately and extensively implemented in Poland during the COVID-19 pandemic crisis in 2020, as well as the refugee crisis in 2022. The funds earmarked by the state government, which were created at Bank Gospodarstwa Krajowego at that time, proved to be an efficient and prompt approach in tackling the crisis and promoting local development. These funds were directed towards local investments by local governments, who were amongst their beneficiaries. This development was aided by allocating part of the COVID-19 Response Fund to investment expenses as freely designated by local authorities. Given their prior experience with using European Union funds, Polish local governments efficiently and promptly adjusted their financial management from the budget economy to the fund economy. Local governments have obtained earmarked funds which have become a significant source for funding local investments. However, these funds lack unambiguous regulation in Polish public finance law. This paper aims to illustrate the role of state government earmarked funds, which are established outside the public finance sector in Poland, in creating the budget economy for local governments. An additional aim is to determine the legal and financial characteristics of the resources within these funds in the light of the regulations outlined in the Polish public finance law.

Structuring the budget process of the most powerful countries in the world: the United States, China, and Japan

In the conditions of overcoming the domestic crisis budget phenomena, the implementation of the chosen course of European integration and Euro-Atlantic integration, further development of the budget process based on the implementation of the best examples of the budget sphere of developed countries in the domestic budget sphere is an urgent need for the financial present of our country. The article structures the budget process of the United States, China and Japan through a detailed review of their budget systems and budget processes, as the most developed in terms of both GDP and the state budget of the country of the world. The authors identified and analyzed the budget legislation of the above-mentioned countries, identified the components of the budget systems of the latter, identified the powers of all branches of government regarding the budget process in the USA, China and Japan, described the step-by-step components of the budget process in these countries, worked out budget principles as part of the principles of budgeting and principles of the budget process in the USA, China and Japan, formed models of the budget process in the above-mentioned countries, including: budget principles, principles of the budget process, stages of the budget process with procedural powers. The structuring of the budget process of the USA, China and Japan was carried out, as well as the following comparative analysis allowed us to conclude about the strengths of both the budget process of the PRC (which is manifested in its clear regulation, systematization and legally fixed surplus of the state budget), and the USA and Japan (which is manifested in the repeated consistency of budget indicators at all levels and the level of their discussion and the openness of the latter during the first two stages of budget processes in these countries). It is concluded that these positions will be introduced into domestic practice, which will contribute to more effective implementation of all stages of the budget process, which, in turn, will help to stabilize the public finance system of Ukraine.

An innovative toolbox to develop and evaluate a Personal Budget system together with chronic care stakeholders in Flanders and in Europe

In Flanders (the northern part of Belgium), as in many other countries, care and welfare policy for people with chronic care and support needs, such as people with disabilities (PwD), is undergoing a large-scale transformation from a service-centred to a more user-centred approach. This transformation is largely driven by the United Nations Convention on the Rights of People with Disabilities (UNCRPD), which promotes the autonomous practice of decision-making by PwD and the self-management of their care and support.
 An innovative way to foster this self-management is through user-centered funding models, such as Personal Budgets (PB), in which a public authority distributes funds directly to PwD, thereby helping them to personalize and actively organize the services they need for their own care and support needs. Flanders is considered a pioneer in such a PB system, which has been implemented since 2017, after a participatory process involving various stakeholders, such as PwD. The Flemish system consists of 2 stages: a first stage of directly accessible support and/or a care budget for people with relatively limited support needs. And a second stage for people with higher support needs that can apply for a PB. This budget allows them to self-manage their support, with access to both regular and disability-specific services.
 Following the implementation of PB the Flemish Agency for People with Disabilities (in Dutch: VAPH) is currently searching for both objective and participatory approaches to evaluate this system. This is why VAPH has been an active partner in the European UNIC project since 2020. The UNIC project is developing, with the financial support from the European Union Programme for Employment and Social Innovation, a toolbox to support the design, implementation, evaluation and compliance of PB. The toolbox consists of three online tools that use the UNCRPD as a framework for the goals of long-term care and support. The tools are developed with three target groups in mind, namely:
 1) Quality Monitoring Tool (QMT) to support PwD to self-assess the impact of their personal budget on their quality of life and to evaluate the PB system they receive.
 2) Service Delivery Tool (SDT) to help service providers evaluate the services they provide, and work towards the delivery of more rights-based and person-centred services.
 3) Compliance Assurance Tool (CAT) to help public authorities improve their policies around long-term care using PB systems.
 During the development phase in 2022, the tools were piloted in Flanders through interactive workshops with participants from the three different target groups who were encouraged to provide extensive feedback. The VAPH is thus co-producing the system of PB as well as its evaluation together with relevant stakeholders. In this presentation we want to present the UNIC toolbox as an example of how stakeholders can be included in a process of mutual learning to support the take-up and scale-up of personal budgets. This presentation aligns with conference theme 2 “Person-centred care: focus on integration of goals and needs”.

Фінансування дефіциту державного бюджету України в умовах воєнного стану

As a country that faces constant economic turbulence, Ukraine is dealing with several challenges. This includes a significant increase in the deficit of budget resources while needing to finance military expenses, all while trying to maintain macroeconomic stability. This article focuses on the specifics of financing the deficit of the state budget of Ukraine during martial law. The financing of the state budget deficit is analyzed in terms of the classification of budget financing by the type of creditor and the type of debt obligation. These indicators were significantly affected by the military challenges in 2022 and the first half of 2023. The article also covers the budget deficit’s coverage analysis at the expense of revenues from the privatization of state property and the issuance of military government bonds, which gained popularity in Ukraine. The authors emphasized the importance of cooperation between the state and IFIs and other institutions as an essential source of financing for overcoming the deficit of the state budget. This form of cooperation is necessary for maintaining the country’s financial stability and resilience to face complex challenges. The article examines the measures to cover the budget deficit in military conditions, including the need to carry out budget system reforms, cost optimization, searching for new sources of income, expanding the tax base, and improving the efficiency of the tax system, which can provide additional funds in the budget. Other measures include financial transparency, investment stimulation, budget consolidation, increasing transparency, fighting corruption, improving conditions for entrepreneurship, achieving low and stable inflation, expanding the tax base, and speeding up the privatization of state enterprises.

THE WAYS OF BUDGET FORMATION OF THE CITY OF YEREVAN AND THE LEVEL OF DECENTRALIZATION / ԵՐԵՎԱՆ ՔԱՂԱՔԻ ԲՅՈՒՋԵԻ ՁԵՎԱՎՈՐՄԱՆ ՈՒՂԻՆԵՐՆ ՈՒ ԱՊԱԿԵՆՏՐՈՆԱՑՄԱՆ ՄԱԿԱՐԴԱԿԸ

Since the budgets of the communities are an important link of the country's development, they should have a clear policy with perspective and innovative plans for budgeting. The budget policy should be based on the ways of solving the priority problems of the community, the implementation of which is directly proportional to the formation of the community budget. The effectiveness of local self-government in each community depends on many factors, including the level and features of decentralization of management. The main link in budget decentralization is the budgets of local governments, which are based on various principles. Own revenues of municipal budgets are still at a low level in our republic, at the expense of which local governments are not able to fulfill the powers assigned to them by law. The municipal budget, being an integral part of the budget system, in fact still remains dependent on state allocations, which is the result of many problems in the field of municipal budget management.

Analisis Manajemen Perencanaan Kurikulum dalam Menghasilkan Kualifikasi Lulusan Program Studi Pendidikan Bahasa Arab di Indonesia

This research aims to analyze the curriculum planning management strategy based on Merdeka Belajar Kampus Merdeka (MBKM) in the Arabic Language Education Study Program in Indonesia in producing graduate qualifications that meet community needs and job demands through online surveys. This research is qualitative in nature by inviting responses from 4 Heads of Study Programs and analyzing curriculum documents for the Arabic Language Education Study Program. The study program criteria are selected to represent State General Universities and State Islamic Religious Universities. The results of the research show that the curriculum planning management strategy carried out in the Arabic Language Education Study Program in Indonesia is: a) Mapping the main and supporting profiles of graduates in accordance with needs and job opportunities, b) Forming a special team to manage the MBKM program, c) Planning a budgeting system funding for the MBKM program with clear regulations, d) Carrying out effective and deep-rooted socialization, e) Increasing lecturer competency, f) Reforming Arabic language learning based on information technology and integrated with multidisciplinary science, and g) Optimizing partnership collaboration with various parties, especially industry. Through this curriculum planning management strategy, 10 profile qualifications for graduates of the Arabic Language Education Study Program suit the needs and demands of the job market. From the results of this research, it is hoped that there will be further mapping of the 10 profile qualifications of graduates of the Arabic Language Education Study Program in Indonesia along with their instruments.

Budgetary and tax policy at the present stage and its role in forming budgets of different levels

Budgetary and tax policy is designed to ensure sustainable development of the Russian economy on the basis of modernization, to improve the living standards of the population by reducing social inequality, and to adapt the budget system to modern realities. The sanctions imposed by the European Union and the United States of America against Russia affect not only the production sphere, but also economy as a whole. The decline in oil prices, ruble devaluation, and outflow of foreign capital eventually lead to budget deficit. In these conditions, budgetary and tax policy remains one of the most important instruments of the economic policy pursued by the state. Increasing tax system efficiency becomes a priority. The objectives of the study include establishing budgetary and tax system effectiveness in forming budget revenues of different levels, including administrative centers (capitals of republics, regional centers). The article uses analysis and synthesis, generalization, grouping, dynamics, comparison, tabular method, and data of the Federal State Statistics Service, the Ministry of Finance of the Russian Federation, and the Federal Tax Service of the Russian Federation. It has been established that the existing budget and tax policy does not provide regional and local budgets with necessary financial resources as they are dominated by inter-budget transfers that cover only their deficit and do not ensure economic growth. All this predetermines the need to redistribute tax revenues in favor of regional and local budgets that will weaken the share of inter-budget transfers in these budgets.

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

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

Comparing COVID–19 Budgeting Responses: New Budgeting Principles that Resulted from the Pandemic

This study provides a comparative analysis of the budget limits of the Commonwealth of Independent States members, focusing on fiscal responses to the COVID crisis and options for improving the structure. The methodology comprised a statistical approach based on assessments of macroeconomic indicators for 2020–2021, as well as world rankings and several measurement systems. The following new budgeting principles were formulated as a result of the comparative analysis of public administration. The proposed principles focus on monitoring, assessing, and forecast data of long‑term sustainability management and other fiscal risks. The proposed budgeting principles could provide a country with the new opportunities needed to expand its potential during further economic advancement in global politics. The central result of this work is a renewed approach to budget management using data on the actual economic situation and adaptability to changes. The proposed budget management scheme lays the foundation for the future development of a country’s potential and aligns with the priority goals of the CIS member states in terms of democracy. The value of this research lies in presenting and summarizing the analysis of the budget management system and the detailing of budgetary policies to identify and reflect the political priorities of countries. This helps formulate recommendations and suggestions for improving the budgetary process, achieving a balanced distribution of resources, and attaining strategic development goals. The practical application of the findings will allow budget policy specialists, economists, and statisticians to become familiar with the changes in the institutional landscape amid COVID–19 and assess the situation in their region through the prism of administrative sovereignties.

BUDGET PERFORMANCE RISKS ASESSMENT ISSUES IN RA

The article analyses the budget system of control implementation and applied approaches in the implementation stage of budgeting performance. The methodology of risk-based inspections in RA was surveyed, and some problematic parts were highlighted. By addressing the above-mentioned questions, it has been proposed more complete and effective approach to risk assessment, which allows more accurate assessment for the implementation of maximum effective control with limited resources.

Ways to optimize inter-budget relations in the Republic of Kazakhstan

In this article, the authors considered the principles of the budget system, implemented their comparative differentiation and analyzed the process of moving funds from one level to another in the form of a transfer of funds in inter-budgetary relations. Inequality of tendencies of formation of budget revenues in these regions is also noted, the needs for the emergence of inter-budget relations and the volume of gross domestic product in the territory of the republic with low concentration of the number and volume of large producers in the domestic market are determined in the context of regions. During the study, the authors also analyzed the volume of subventions from the republican budget, budget exemptions from the local budget and the ratio of subventions to budget exemptions: it is noted that the mechanism of subventions and exemptions leads to a decrease in the share of tax revenues in local budgets against the background of growth of transfers from the republican budget, which, in turn, contributes to a decrease in the independence of local authorities. The main purpose of the scientific article is to analyze the financial policy of the state with regard to the optimization of inter-budget relations in the RK, to identify problems and consider ways of solution. In assessing the state and identifying the problems of inter-budget relations in the country used general scientific methods of research, methods of statistical and comparative analysis. According to the results of the study it was established that to increase the tenge of inter-budget relations a number of measures are taken, in particular, the work on expanding financial autonomy and stimulating local executive bodies to develop the regional economy and increase the revenues of local budgets has been implemented. The conclusions and proposals of the study can serve as a scientific basis for the implementation of policies related to inter-budget relations of the RK.

Effects of Psycho-Cultural Factors on Adopting Changes in Defense

There is a constant need for the defense/military institutions to undergo continuous development in order to adjust to modern standards and requirements, often necessitating systemic changes. As part of this development, since the end of the Cold War, defense organizations in many Central and Eastern European (CEE) countries have endeavored to adopt advanced strategic management practices from their Western counterparts in terms of integration process into NATO and the EU.
 However, these efforts have not always been successful. The attempt of the Central and Eastern European (CEE) countries to adopt changes within their defense organizations, particularly in strategic defense planning area through institutionalizing Planning, Programming and Budgeting System (PPBS) serves as such a case. Scholars often highlight factors altering this failure, focusing on the issues like centralized decision making, lack of understanding, resistance to change etc.
 This paper analyzes other influencing factors, namely the importance of considering psycho-cultural factors while introducing changes within defense organizations and explains the main reasons for failure in successfully adopting PPBS. The study was conducted using qualitative methodology, primarily case study, to comprehensively analyze the topic.
 Based on the findings, the authors conclude that in CEE countries psycho-cultural apsects significantly influence the implementation of changes in the defense sector in parallel with the factors mentioned above. In the case of CEE countries, these psycho-cultural factors are reinforced by the post-socialist legacy, which is characterized by a lack of creativity, collaboration, coordination, and consensus building, leading to reluctance and resistance to changes when it comes to adopting modern practices.
 Overall, the findings validate the hypothesis proposed in the paper - disregarding psycho-cultural factors in the process of change implementation contribute to the failure.
 The study also demonstrates the effectiveness of supporting the change implementation process through the utilization of Organizational Change Management (OCM) which is actively employed by Western organizations in the defense sector.

Изменение бюджетных параметров в условиях турбулентности

Declining budget revenues, the coronavirus pandemic, economic sanctions imposed by unfriendly states, and other similar factors that have a significant impact on the budget and budget system require prompt management decisions. The fiscal policy of all budget levels is currently being implemented in conditions of turbulence, faced with the need to respond to the challenges of the new reality. The research hypothesis was that there are many facts and phenomena that reflect the presence of non-systemic external influence on the approval and execution of the budget. These include budget imbalance, deviation of its execution from the approved one, adjustments to the approved volumes of budget revenues and expenditures, asynchrony of its execution in during the financial year, etc. Using data collected from federal laws on the federal budget since 1999, as well as data from the Russian Treasury, we show that the above phenomena are generally characteristic of the budget policy of the Russian Federation, and elements of manual control only increase during crisis periods. At the same time, the lower levels of the budget system have fewer opportunities to respond to the challenges of turbulent time than the higher ones.

Информационно-аналитическое обоснование осуществления внутреннего финансового контроля в государственном секторе

The article substantiates the relevance of using information and analytical data for assessing and planning control checks by external control structures and internal financial control. An assessment was made of the identified violations in the financial sector in recent years and a conclusion was made about the growth of violations in the budget system, accounting and reporting, and procurement. A sample of financial inspections at the level of external control by type of organization showed that the number of inspections is optimal and allows one to achieve its maximum effect when building a predictive model of financial control.

INFLUENCE OF MANAGEMENT ACCOUNTING PRACTICES ON MSMEs FIRMS PERFORMANCE

The motivation behind this work was to explore the management accounting practices in Small Medium Enterprices (SMEs) in Indonesia, using primary data captured across Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek). The research compiled primary data using personally administered questionnaries. Using 185 completed questioneries from respondents. PLS was used to perform analysis of the research, with uniqnes of financial resources and technological literacy as moderating variables. This research indicate three interesting findings that are in line with previous researchs. The budgeting system, performance measurement system and strategic management accounting influence firm performance positively. While the technology literacy and financial resources fail to strengthen their influence towards firm performance. Costing system and decision support system do not influence firm performance, and further technology and financial resource were not able to make the influence strengthened.

Improving Project Budgeting Systems by Developing Machine Learning Models

The lack of an efficient budgeting system makes it more difficult for a business to satisfactorily execute projects or gain new business. To improve the accuracy of budgeting using the classical approach, a dynamic system is required. Building dynamic systems that apply machine learning techniques can support companies in improving their budgeting system. This quantitative study built five machine learning regression models: multiple linear regression, artificial neural network, support vector machine, k-nearest neighbors, and random forest. The five built models were used to predict the closing costs of 552 industrial automation projects that were carried out in Africa and the Middle East. Using root mean square error, the model forecast precision was compared to that of the classical system. The outcome shows that there is a significant difference between machine learning models and classical systems. Therefore, the use of machine learning techniques can improve the accuracy for businesses of their budgeting system.

Правовое регулирование администрирования расходов бюджетов бюджетной системы Российской Федерации

В статье исследованы проблемы, связанные с использованием понятия «бюджетное администрирование», возникающие при применении национальных правовых норм, касающихся развития законодательства в области бюджетного управления, а также исследуется само понятие администрирования расходов как отдельного направления бюджетного администрирования. В статье рассмотрены содержание, классификация и правовой механизм администрирования расходов. The article examines the problems associated with the use of the concept of budget administration, arising from the application of national legal norms concerning the development of legislation in the field of budget management, and examines the very concept of cost administration as a separate area of budget administration. The article discusses the content, classification and legal mechanism of cost administration.

Investment project management paradigm: budgeting challenges

Introduction. The paper discusses methods of investment capital budget management, which adapts budget management practices and increases synergy with project management, adjusting the allocation of resources in accordance with the constraints and operational risks of business processes. Businesses regularly use project management to achieve unique results with limited resources under critical time constraints. In the service sector of the economy (in particular, trade), the use of project management to achieve organizational goals is even more common. The purpose of the paper is the application of the budgeting system in the management of the investment project. Results. As a result, it encourages flexibility in dealing with contingencies, focus on a strategic perspective, speed of budget management, cost-effective budgeting, added value to the enterprise and encouragement of collaboration. Thus, constraints can be operational or managerial, related to organizational politics and culture. To identify constraints in an organization, you must understand how the organization works as a system. In the business sphere, the functioning of the company is a vision of business processes. Business processes are sets of activities that create results (products and services) whose value is perceived by interest groups (stakeholders). The impact of deterministic decisions in the short term on the overall result of the organization decreases. However, budget management methods do not represent a probabilistic approach, as seen in the proposal of the critical path method as a means of improving project management in a volatile business environment. Conclusion. It is recommended that each capital investment of the organization be structured in the form of projects, and the method of rewarding managers should also reward those who achieve goals with minimal use of investment resources. If possible, the manager should strive to evenly return resources to investment capital. Finally, it is suggested for future research to identify other business practices that can benefit from this paradigm shift.

Budgets of Russia's largest cities in the face of external constraints

Subject. This article discusses the issues of implementation of the fiscal federalism policy. Objectives. The article aims to analyze the budgets of Russia's largest cities through various parameters of income and expenditure. Methods. For the study, we used logical and comparative analyses. Results. The revenue part of the budgets of the country's largest cities is characterized by an increase in the share of gratuitous receipts. The dependence of local budgets on other levels of the country's budget system is noted, and the differentiation of the largest cities in terms of budget expenditures per capita is increasing. Conclusions. The results of the study can be used to develop a new model of the country's internal development, involving a more efficient use of financial resources and taking into account the factor of international sanctions.