Budgeting Decisions Research Articles

Impact of Capital Budgeting Decision on Profitability of Firm – Selected Listed Automobile Companies in India

Purpose: Profitability plays an important function in the business operations and determines the value by which a business is held. The study set to investigate the impact of capital budgeting decisions on profitability of Automobile firms. Capital budgeting particularly addressed five areas of the study that included capital budgeting decisions (acquisition of long-term assets, replacement of long-term assets, investment appraisal techniques, outsourcing expenditure and working capital decisions) had a biggest and significant effect on profitability of the organizations. Methodology: This study basically involved survey of the Automobile Companies listed in NSE in India. Any business that seeks to invest its resources in a project without understanding the risks and returns involved would be held as irresponsible by its owners or shareholders. This study considered 10 companies are taken from Automobile sectors, which is listed in NSE. Correlation and paired T test were used. Findings: This study basically involved survey of the Automobile Companies listed in NSE in India.The findings set up that there was relationship between the independent variables of capital budgeting decisions and profitability. The study was examined the outcome of capital budgeting Impact on profitability of listed firms in India. The independent variables for the study were Capital Budgeting and Profitability. Research implications: it is evident that Maruti and Tata Motors produced positive and statistically significant values for this study (high t-values (12.37 and 11.26), p =0.00) respectively. Eicher Motor resulted a Lowest but insignificant values (t= 2.11, p = 0.07). Originality/Outcome: The study found that positive impact of capital budgeting on profitability of the firms under the study.

Influence of Leader’s Balanced Processing on Employee Commitment in Agencies Implementing Public Financial Management Reforms in Kenya

In many developing countries, Public Financial Management Reforms (PFMRs) have been considered an instrumental element of governance with the intent to curb wasteful expenditure and corruption. Before making any budgetary or financial decision, leaders are expected to make objective analysis of theavailable financial data and to take into consideration all available options from their subordinatesbefore deciding on a way forward. This is what defines balanced processing. The aim of this paper wastherefore to evaluate how leader’s balanced processing influence the commitment of employees inagencies implementing Public Financial Management Reforms (PFMRs) in Kenya. The study was guided by the positivism research philosophy and applied a descriptive correlational research design inconducting the study. This design is deemed relevant particularly as it reveals accurate informationallowing for inferences through hypothesis testing. This approach was favored because it explains what is in existence and, in turn, assists in revealing new realities and meanings, thus broadening the scope of the phenomenon under study. The study targeted 747 managers from the Kenyan PFMR implementing agencies from which a sample of 260 managers was obtained through simple random sampling technique. A structured questionnaire was used for data collection with analyses being done and presented using both descriptive and inferential statistics. The Binary logit regression model depicted a significant association between the variables with Chi-square χ² (1) = 139.881, p<.001, and the model summary result showed the Nagelkerke R square of .731 (equivalent to R 2 on the linear regression model) hence accepting the alternative hypothesis, which stated that leaders' balanced processing significantly influenced employee commitment among managers in agencies implementing PFMRs. In its recommendation, this study guides that leaders should listen carefully to ideas from every employee fairly and understand that different employees work differently. Some ideas can be implemented to improve the organization, and some can be implemented later; therefore, it effectively attracts employees in decisionmaking and enhances employee commitment.

Variations in global prices of chemotherapy for childhood cancer: a descriptive analysis.

The stark disparity in survival for children with cancer across the world has inspired a global call to expand chemotherapy access in low and middle income countries. Among the numerous barriers to success, a paucity of reliable information regarding chemotherapy pricing hinders the ability of governments and other key stakeholders to make informed budget decisions or negotiate lower medication prices. The aim of this study was to generate comparative price information on both individual chemotherapy agents and comprehensive treatment regimens for common childhood cancers using real-world data. Chemotherapy agents were selected based on their inclusion in the World Health Organization (WHO) Essential Medicines List for Children (EMLc) and their use in frontline regimens for the tracer cancer types prioritized by the WHO's Global Initiative for Childhood Cancer (GICC). Sources included IQVIA MIDAS data, obtained under license from IQVIA, and publicly available data from Management Sciences for Health (MSH). Data on chemotherapy prices and purchase volumes spanning 2012-2019 were aggregated according to WHO region and World Bank (WB) income classification. Cumulative chemotherapy prices for treatment regimens were compared across WB income classification. Data representing an estimated 1.1 billion doses of chemotherapy were obtained for 97 countries: 43 high income countries (HICs), 28 upper middle income countries (UMICs), and 26 low and lower middle income countries (LLMICs). Median drug prices in HICs were 0.9-20.4 times those of UMICs and 0.9-15.5 times those of LMICs. Regimen prices were generally higher for HICs, hematologic malignancies, non-adapted protocols, and higher risk stratification or stage, albeit with notable exceptions. This study represents the largest price analysis to date of chemotherapy agents used globally in childhood cancer therapy. The findings of this study form a basis for future cost-effectiveness analysis in pediatric cancer and should inform efforts of governments and stakeholders to negotiate drug prices and develop pooled purchasing strategies. NB received funding support from the American Lebanese Syrian Associated Charities and Cancer Center Support grant (CA21765) from the National Cancer Institute through the National Institutes of Health. TA received funding through the University of North Carolina Oncology K12 (K12CA120780) and the University Cancer Research Fund from the UNC Lineberger Comprehensive Cancer Center.

The Cost of Providing Comprehensive HIV Services to Key Populations: An Analysis of the LINKAGES Program in Kenya and Malawi.

Timely data on HIV service costs are critical for estimating resource needs and allocating funding, but few data exist on the cost of HIV services for key populations (KPs) at higher risk of HIV infection in low- and middle-income countries. We aimed to estimate the total and per contact annual cost of providing comprehensive HIV services to KPs to inform planning and budgeting decisions. We collected cost data from the Linkages across the Continuum of HIV Services for Key Populations Affected by HIV (LINKAGES) program in Kenya and Malawi serving female and male sex workers, men who have sex with men, and transgender women. Data were collected prospectively for fiscal year (FY) 2019 and retrospectively for start-up activities conducted in FY2015 and FY2016. Data to estimate economic costs from the provider's perspective were collected from LINKAGES headquarters, country offices, implementing partners (IPs), and drop-in centers (DICs). We used top-down and bottom-up cost estimation approaches. Total economic costs for FY2019 were US$6,175,960 in Kenya and US$4,261,207 in Malawi. The proportion of costs incurred in IPs and DICs was 66% in Kenya and 42% in Malawi. The costliest program areas were clinical services, management, peer outreach, and monitoring and data use. Mean cost per contact was US$127 in Kenya and US$279 in Malawi, with a mean cost per contact in DICs and IPs of US$63 in Kenya and US$104 in Malawi. Actions undertaken above the service level in headquarters and country offices along with those conducted below the service level in communities, comprised important proportions of KP HIV service costs. The costs of pre-service population mapping and size estimation activities were not negligible. Costing studies that focus on the service level alone are likely to underestimate the costs of delivering HIV services to KPs.

A Time To Event Framework For Multi-touch Attribution

Multi-touch attribution (MTA) estimates the relative contributions of the multiple ads a user may see prior to any observed conversions. Increasingly, advertisers also want to base budget and bidding decisions on these attributions, spending more on ads that drive more conversions. We describe two requirements for an MTA system to be suitable for this application: First, it must be able to handle continuously updated and incomplete data. Second, it must be sufficiently flexible to capture that an ad’s effect will change over time. We describe an MTA system, consisting of a model for user conversion behavior and a credit assignment algorithm, that satisfies these requirements. Our model for user conversion behavior treats conversions as occurrences in an inhomogeneous Poisson process, while our attribution algorithm is based on iteratively removing the last ad in the path.

From resources to sustainability: a practice-based view of net zero economy implementation in small and medium business-to-business firms

PurposeThis study examines the effect of resources (e.g. tangible resources, human skills and intangible resources) that are utilized as a bundle of standard practices on sustainable net zero economy implementation and their further impact on financial, environmental and social performance among small- and medium-level enterprises in business markets. The moderating effect of big data analytical intelligence is also examined.Design/methodology/approachThe samples were selected from the paper and chemical manufacturing industries of South Africa. The data analysis was performed using variance-based structural equation modeling.FindingsThe results show that tangible resources, human skills and intangible resources positively influence sustainable net zero economy adoption. However, intangible resources have a more substantial influence on sustainable net zero economy implementation. This shows that adopting a sustainable net zero economy depends more on a bundle of common practices, including sustainability culture, employee training and knowledge management, and managers must create the necessary action plans accordingly. In addition, sustainable net zero economy adoption positively influences financial performance, environmental performance and social performance. However, sustainable net zero economy adoption has a more substantial influence on social performance. Therefore, implementing a net zero economy will be more advantageous to society and to local communities.Practical implicationsTo achieve a sustainable net zero economy, managers should recognize the significance of resource management. While managing tangible resources and human skills is crucial, intangible resources, such as culture and organizational learning, require more attention. Additionally, the ability of small- and medium-sized enterprises to explore, store, share and apply knowledge is crucial to achieving net zero. Therefore, managers should make use of Industry 4.0-based digital technologies for effective knowledge management. Moreover, net zero economy adoption can significantly enhance societal performance. Hence, while making budgeting decisions, managers must consider the potential of the firm's resources to improve social performance.Originality/valueThis study is the first to investigate the impact of human skills and tangible and intangible resources on the adoption of a sustainable net zero economy by companies, using empirical evidence. The research expands on the concept of the practice-based view (PBV) in the implementation of sustainable net zero economies by small- and medium-sized business-to-business enterprises.

FOREIGN EXPERIMENTS IN PUBLIC CONTROL OVER THE STATE BUDGET: A COMPARATIVE ANALYSIS

Public control over the state budget is a critical aspect of democratic governance, ensuring transparency, accountability, and effective use of public funds. This scientific article provides a comprehensive analysis of foreign experiments and practices in public control over the state budget. By examining case studies from various countries, the article aims to identify innovative approaches, lessons learned, and best practices in enhancing public participation and oversight in budgetary processes. The article explores the mechanisms, tools, and institutional frameworks employed in different countries to promote citizen engagement, fiscal transparency, and effective budget management. Through a comparative analysis, this article seeks to contribute to the global understanding of public control over the state budget and provide insights for policymakers and practitioners seeking to strengthen public accountability and citizen involvement in budgetary decision-making.

Volatile Mining Revenues and State Government Budget Decisions

AbstractMining royalties provide a volatile source of revenue for state governments in Australia. We explore the effects of changes in royalty revenue received by a state government on current‐year budget decisions about expenditure, tax revenue and the budget surplus. The literature postulates different models for how lower‐level government budget decisions respond to a revenue windfall from a higher level of government. Empirical evidence on these models over 1998–2019 provides strong evidence that over a half of a royalty windfall becomes a change in budget expenditure. Estimates of changes to tax revenues and the surplus are not definitive nor robust.

Water Supply Infrastructure Investments RequireAdaptive Financial Assessment: Evaluation of Coupled Financial and Water Supply Dynamics

Water managers must constantly balance investment in infrastructure upgrades to ensure reliable water supply with the affordability of water rates for consumers. As a result, trade-offs between water supply and financial objectives have become central to the long-term sustainability of utility operations. Few studies, however, have directly quantified decision-relevant financial benchmarks of water supply system adaptation. Benchmarks include debt covenants, guidelines required by creditors seeking assurance that debt will be repaid. Violation of covenant thresholds risks a downgrade of a utility’s credit rating, higher interest rates on future debt, and higher costs for new infrastructure. This work introduces an exploratory modeling framework that carefully couples adaptive water supply planning with financial modeling to better track how utility budgetary decision making can adapt to infrastructure expansion and future water demand growth. Demonstrated through an evaluation of infrastructure planning for Tampa Bay Water (TBW), results showcase TBW budgetary adaptation in response to water demand growth and supply expansion, quantifying the financial implications of infrastructure planning decisions and demand growth on water rates as well as the bond covenants. This study underscores the importance of integrating dynamic and adaptive financial modeling in providing realistic decision support that addresses both supply reliability and financial stability.

Divergent Effects of Budgeting for Gifts versus Personal Purchases

Abstract Consumers often set budgets with the goal to minimize their spending. Contrary to this traditional interpretation, our research suggests that budgets can take on a different psychological meaning depending on whether the budget is for a personal or gift purchase. Across 11 studies, we find that consumers aim to spend below their budgets for personal purchases (budget minimizing) but aim to spend the entirety of their budgets for gift purchases (budget maximizing). We differentiate budget maximizing from spending maximizing, showing that gift purchasers are more likely to prefer “at-budget” than “above-budget” purchases. We also show that gift purchasers have weaker savings goals than personal purchasers—a difference that mediates the effect on their budget-minimizing and -maximizing tendencies. We explore multiple reasons that could explain why savings goals are less prevalent among gift purchasers and find an upstream role for price consciousness, guilt, and perceived specialness. Finally, we find that consumers’ preference for spending the entirety of their budgets on gifts was moderated by two separate factors: consumers’ budget slack and salience. Our research adds to the literatures on mental budgeting, gift giving, and self-other decisions.

The power struggles of executives and legislators in a kingship budget setting: The role of informal and formal power

AbstractDrawing on the power struggles of executives and legislators in a kingship budget setting, the study sheds light on the role of informal power in budget decisions and what makes one of the key actors more powerful than the other in the budgeting process. The study employs a qualitative case study collecting data through face‐to‐face interviews, observations, and documentary analysis. The paper advances the research stream of budget politics in public administration literature, highlighting the intense exercise of informal power to drive budget decisions. The paper provides evidence that informal power has heavily influenced the interactions between executives and legislators by the King and his fictive kin, exercised by formal and informal mechanisms (e.g., half‐room meetings). Utilizing Weber's traditionalism, we demonstrate that the role of informal power over formal power is especially critical in a context where democratic institutions have no solid foundation.

Implementing Technologies: Assessment of Telemedicine Experiments in the Paris Region: Reasons for Success or Failure of the Evaluations and of the Deployment of the Projects.

Telemedicine is increasingly viewed as a tool to provide a wide range of health services. This article presents policy lessons drawn from the evaluation of telemedicine experiments conducted in the Paris region. We used a mixed method design to study telemedicine projects commissioned by the Paris Regional Health Agency between 2013 and 2017. We combined data analysis of the telemedicine projects, review of the protocols, and interviews with stakeholders. We identified the following reasons for disappointing outcomes: the outcome measure was requested too early during the experiments because payers required information for budgetary decisions; and the learning curve, technical problems, diversion of use, insufficient number of inclusions, and a lack of adherence prevented the demonstration of successful outcomes of the projects. The evaluation of telemedicine should be undertaken after sufficient uptake to ensure barriers to implementation are overcome, and to obtain the sample size necessary for statistical power and reduce the average cost for one telemedicine request. Randomized controlled trials should be encouraged with appropriate funding and the follow-up period should be extended.

DAMPAK TEKNOLOGI INFORMASI PADA PERCIEVED USEFULNESS DARI PENGAMBILAN KEPUTUSAN

The preparation of regional budgets is influenced by many factors, so the decision-making must be careful and thorough and supported by adequate data sources. However, human resources also have limitations in storing and remembering the data needed for making budgetary decisions. The preparation of government financial statements currently uses the accrual basis, so that more and more data will be available. Information technology support can reduce the gap between the capabilities of human resources and the demands of budget decisions. This study aims to examine and analyze the effect of information technology support on the perceived usefulness of decision making and its implications for the quality of accrual-based accounting. The object of this research is the government of Lampung Province. The population used is the entire Lampung Provincial Government, while the sample used in this study is the Lampung Provincial Government SKPD. The data was obtained through the distribution of questionnaires to the respondents, namely the SKPD of the Lampung Provincial Government. The data was analyzed using structural equation modeling (SEM) with Lisrel software. This study uses primary data by using a questionnaire as a research instrument. The output of this research is expected to be published in Scopus indexed international journals or national journals (SINTA-3) and the results of this study are expected to be taken into consideration by the government in improving its regional financial performance and realizing financial management accountability in government in Indonesia.

Association Between Local Boards of Health Authority Over Budgets and PHAB Accreditation Standard Score

This study examined the relationship between local board of health authority and local health departments' budget-related activities and performance scores in the Public Health Accreditation Board standards while considering the governance structure under which the local health agencies operate. Data from 250 local health departments were obtained from the Public Health Accreditation Board and were combined with data from the 2016 National Association of County and City Officials Profile Survey. Multilevel regression analysis was used to examine the relationship between local board of health authority on local health departments' budget-related activities, using the governance structure as the group-level variable. Analyses identified positive associations between local board of health authority on local health departments' budget-related activities and local health departments' aggregate average performance scores in Public Health Accreditation Board accreditation. No apparent association was found between the type of governance structure under which a local health department operates and performance scores in Public Health Accreditation Board accreditation standards, perhaps attributable to variation in the characteristics and roles of their governing bodies. The analyses suggest that local boards of health with authority related to local health departments' budgets appear to have an influential role in budget-related activities and may improve local health departments' performance scores in Public Health Accreditation Board accreditation standards. However, vast variations in more specific local boards of health roles and characteristics exist across local health departments and for which there are no national data. More research is thus needed to control for or examine the influences of specific local boards of health characteristics before the benefits of expanded local boards of health authority over local health departments' budgetary decision making on local health departments' performance can be fully understood.

БЮДЖЕТНЕ ПЛАНУВАННЯ ЯК ЧИННИК ПІДВИЩЕННЯ ЕФЕКТИВНОСТІ ФІНАНСУВАННЯ ОСВІТИ В УКРАЇНІ

The article examines the issues of budget planning as a factor in increasing the efficiency of education financing in Ukraine. Budget planning plays a crucial role in enhancing the efficiency of education financing in Ukraine. A well-structured and strategic budget is essential for addressing the diverse needs of the education sector and ensuring optimal utilization of financial resources. Transparency and openness in the budgeting process are equally vital. Providing accessible information on budget allocations fosters accountability and engages stakeholders, including educators, parents, students, and the broader community. This collaborative approach ensures that budgetary decisions align with the expectations and aspirations of those directly affected by educational funding. Targeted funding strategies should be employed to direct financial resources to priority areas within education. Whether it's investing in modern educational technologies, innovative teaching methods, or teacher development programs, allocating resources strategically can significantly enhance the overall quality of education. Financial discipline is another critical aspect. Implementing mechanisms for monitoring and evaluating the effectiveness of budget expenditures helps identify areas for improvement. This feedback loop enables continuous refinement of budgetary strategies, promoting a more efficient allocation of resources. Innovative financial instruments, such as partnerships with the private sector and philanthropic foundations, can also be explored to supplement traditional funding sources. This diversification of funding sources provides a sustainable foundation for educational development. Regular monitoring and assessment of budget outcomes contribute to a dynamic and responsive budgeting process. This approach allows for adaptability to changing circumstances, ensuring that educational financing remains effective and aligned with the evolving needs of the education sector. In conclusion, effective budget planning is integral to the enhancement of education financing in Ukraine. By prioritizing transparency, strategic allocation, financial discipline, and innovation, the education sector can achieve greater efficiency and, ultimately, provide a higher quality of education for the country's learners.

Political Leaders’ Socioeconomic Background and Public Budget Deficits: Evidence from OECD Countries

This paper empirically analyses the relationship between political leaders socioeconomic backgrounds and public budget deficits utilising panel data on 21 OECD countries from 1980 to 2008. Building on sociological, as well as economic, research, we argue that the socioeconomic status of political decision-makers, i.e., presidents or prime ministers, is an important determinant of fiscal budget decisions. Our theory-consistent findings show that the tenures of lower-class leaders i.e., leaders of low socioeconomic status are associated with a deficit-to-GDP ratio which is 1.6 percentage points higher than that during tenures of upperclass leaders.

An Institutional Explanation of the Role of Legislature Accountability in Local Government Budgetary Decision-Making

Legislature plays an important role to ensure accountability in the budgetary decision-making of the Indonesian local government. The legislature's accountability role in budgetary decision-making concerns the Indonesian local government. Thus, this research investigated the legislature’s accountability role in the budgeting process and institution's budgetary decision-making. It also examined the planning and budgeting documents in the budget policy-making by the legislature from the Institutional perspective. This research used a qualitative approach and selected three (3) local governments in Indonesia as case study sites. The three case study sites selected represented local governments with high, medium and low fiscal capacity. Data were collected using interviews with 19 budget actors from the three case study sites. The findings revealed institutional weaknesses in the form of norms and rules about legislature in their regional decisions. The regional decision-making and discussions or forums on budget spending and financing among the legislature were found to be politically driven and lacked focus on technical matters such as value for money. The findings of this research provide some basis for strengthening the regulation by central government authorities regarding the role of the legislature in decision-making based on the principles of transparency and accountability. Keywords: legislature, local government, budgetary decision

Gender responsive budgeting and its implementation efforts in Nepal

The purpose of this article is to analyze the contemporary experiences of gender responsive budgeting and its implementation efforts in Nepal. In recent years, the introduction of gender responsive budgeting has become an important topic on the government agenda to meaningfully internalize gender equality in public finance. Gender responsive budgeting, as an integral part in fiscal and budgetary decision making, can make gender equality and help differentiate the impacts on men and women. This article is based on the analytical and descriptive research design based on literature review of secondary data and information used for the analysis of the information. Therefore, the analysis of public expenditure and revenue policies and practices should consider this differentiated gender impact. Gender responsive budgeting in Nepal is committed to maintaining progressive social change, but efforts that are more concrete are needed to match political commitments. In the entire world, women only make 77 cents for every $1 earned by males. This gender responsive budgeting receives the highest share of the Nepal's budget in fiscal year 2021/22 (2078/79), accounting for 39 percent of all investments. Nepal has been associated with various gender responsive activities through different national policies, budgets, periodic and yearly plans and projects since the fiscal year 2007/08; and it is dedicated to the global commitment for the sustainable development goals and its timely achievements with the national targets; and leading the nation towards the gender inclusive society and gender friendly behaviors by the nation in all processes of the governance of Nepal.

Investigating Household Food Expenditures and the Engel’s curve in Ghana: The Empirics

This paper examines Ghana's annual household food expenditures and their Engel food curve using data from the 2013-2014 sixth round of the Ghana Living Standards Survey which covered 16, 772 household and lasted for one-year. A sample size of 16,035 was however valid for the model estimation in this paper. Household demographics and specific variables, including income, education status, religion, number of rooms, access to clean water, ownership of household, electricity supply to household, and refrigerators availability at the household that influence the annual household food budget decisions in Ghana are examined. It establishes an inverse relationship between the share of the household food budget and the increase in household income. The paper established high annual household food expenditure elasticity with 0.52 pesewas out of every one cedi serving as an annual household marginal food budget share in Ghana, on average and ceteris paribus and provides additional statistical evidence that characterises food as a necessity in Ghana. Policy-wise, the central government is advised to take more pro-poor agricultural interventions to improve food production and reduce its cost in the country. With a rapidly growing population, these measures will bring Ghana's economy into a state of food security and allow the country to also achieve the SDG 2 goals it has set for itself.

An impulsive and switched system based maintenance plan optimization in building energy retrofitting project

The maintenance time schedule optimization into the investment budget decision for building energy retrofitting and maintenance planning is incorporated. The aggregate performance and population dynamics of the totality of retrofitted items is described by an impulsive switched system model. The items are switched to different working states by maintenance actions with impulsive effects. Considering the retrofitting project with deterioration. The objective of optimal maintenance control is to maximize the overall energy savings and financial payback. The optimal maintenance control problem is showed to be feasible and bounded. The maintenance time schedule and intensities are simultaneously optimized by an improved differential evolution (DE) algorithm. Compared with the fixed maintenance time schedule, the proposed approach is validated by simulation results, specifically, 3.36% of energy saving and 23.09% of internal rate of return (IRR) can be improved.