Budgetary Sphere Research Articles

Оцінка рівня бюджетної безпеки України в умовах економічної нестабільності

The purpose of the article is to study the theoretical foundations of budget security, highlight threats and directions for its strengthening, as well as an carry out an indicative analysis of the security situation in the budget sphere of Ukraine. Examining and summarizing the scientific works of many scholars, both economists and theorists, the authors’ own definition of the economic essence of «budget security» is developed. The basic foundations of theoretical identification of budget security of the State are allocated and substantiated. The indicators for assessing the level of budget security are outlined and the input information for their calculation is provided. The input information is analyzed to calculate the indicators of the state of budget security of Ukraine in 2016-2021. Critical and optimal values of indicators are highlighted. A list of indicators for determining the state of budget security of Ukraine in 2016-2021 was put to calculation. As a result, an integral indicator of Ukraine’s budget security was calculated. The level of budget security of Ukraine for 2022-2024 is prognosticated. Threats to ensuring the optimal level of budget security of Ukraine are allocated. It is proved that the main threats to Ukraine’s budget security can be determined by examining the ratio of total payments for servicing and repayment of public debt and the State budget revenues. The key directions of strengthening the budget security of our State have been identified. It is proved that ensuring the budget security of the State is one of the major tasks of implementing the strategic guidelines of the country’s development programs. Prospect for further research in this direction is to determine the degree of influence of business entities and the State institutions on the mechanisms for ensuring budget security. Further study and research of budgetary relations in the field of budget security can lead to the strengthening of traditional budget management.

Delegation of authority in the field of financial activity as a factor of socio-economic development

The article substantiates the application of the system of delegation of authority in the field of financial activity. Delegation of powers of public authorities to private entities is a common practice in a number of foreign countries, and has long been practiced in the field of business management. Delegation of authority can successfully develop those areas of the economy that are currently most affected by bureaucracy and related negative processes (formalism, corruption, complex and lengthy approval processes, obtaining permits, etc.). It seems that the delegation of certain powers in the budget sphere can significantly increase the efficiency, effectiveness and speed of achieving results by budget recipients, as well as provide a number of other advantages. Two main ways of implementing the delegation of powers in the field of financial activity, which can be carried out both jointly and independently of each other, are proposed: the conclusion of public contracts, as well as the establishment of the institute of parapublic organizations.

COVID-19 Pandemic: Global Reset of Political and Economic Fostering

The COVID-19 pandemic has had a profound impact on international relations and world politics. The global and national economies, social sphere and culture were influenced by the pandemic. The global pandemic impact has led to a reassessment of the future development of the modern world.Every country in the world has proposed its own way to address the challenges that occurred with the start of the pandemic and its consequences. At the first stage, the centrepiece of proposed measures was mainly focused on maintaining economic sustainability and providing social support. The emphasis was placed on fostering individual sectors of the economy, which has demonstrated its effectiveness. However, many states were balancing social stability and economic growth, which was hit by the imposed lockdowns. The steps taken have yielded shortterm positives in different countries. At the same time, they demonstrated the limited resources and low efficiency of measures to overcome the consequences of the COVID-19 pandemic. It is significant that many countries achieved socio-political stability by increasing the debt burden. In the first phase of the pandemic, such approach was assessed as optimal. In general, the COVID-19 pandemic has shown the vulnerability and weakness of the modern states to combat new challenges. First of all, this concerned economic policy, social issues and the labor market.Many states have drawn positives from the crisis by adjusting political approaches and economic decisions. The current experience has made it possible to transform social policy, support employment, and adjust approaches to labor market regulation. However, the task, targeted at finding optimal solutions from the government, respecting the interests of business, maintaining social stability and the possibilities of the budgetary sphere, is still high on the agenda.The lack of effective mechanisms for multilateral cooperation among world states in tackling global challenges, which include the COVID-19 pandemic, stimulated many countries to seek solutions aimed at protecting their own interests. All countries were forced to implement their foreign policy, build bilateral and multilateral relations in fundamentally new conditions. First of all, internal security and political stability were on the agenda.The global pandemic raised the issue of the prospects for the development of international relations and world politics. Amid relations between states, a tendency to searching for new partners capable of providing support in a difficult economic situation is on its way. This opened up new opportunities for them, making for strengthening their positions. On the other hand, the world’s leading countries are still numbed by their past approaches to shaping relations within the framework of the existing system of international relations. The sanctions policy and the confrontational approach are still actively implemented by Western countries in the policies towards Russia and China. This strengthens confrontational relations between countries and maintains dividing lines in world politics.The COVID-19 pandemic has given new impetus to debates on how to tackle global challenges. The climate agenda, problems of water resources, migration have previously been in the sharp focus of many states. However, the COVID-19 pandemic has resulted in a revision of the role of states in settling global problems, having the effectiveness of international institutions high on the agenda.The COVID-19 pandemic has adversely affected the development of the global economy, which faced various challenges. Developing economies were most stricken by the pandemic. In turn, the industrialized states were able to channel significant aid, which allowed them to smooth the negative impact of the pandemic. However, the global economic recovery has been uneven as a cosequence of political decisions, states’ economic capacities in certain regions.

State regulation of socio-economic development in a pandemic

During the economic crisis caused by the coronavirus pandemic (COVID-19), the governmentsof the countries implemented measures in various areas of domestic policy – financial, monetary andsocial. The measures were of an extraordinary nature, providing for the solution of such tasks as thepreservation of business and employment support, social protection and public health protection. Forobvious reasons, in most countries of the world, all means have been used to fight the pandemic. Inthe budgetary sphere, extraordinary and far-reaching measures have been taken regarding taxes andexpenditures, designed to save lives, support the population and businesses, and create conditions foreconomic recovery.The article reveals the current economic and social consequences of the COVID-19 pandemic basedon a literature review, as well as identifies strategic actions of state regulation to solve problems after theend of the pandemic in the field of digital technologies and expanding access to the Internet, revisingthe system of social benefits. The necessity of introducing a progressive tax system has been substantiated.Particular attention is paid to professional orientation of the population, taking into account theconsequences of the pandemic and current trends in the labor market and the functions of employment centers, as well as the importance of training in accordance with skills for life and adaptation to changingrealities.The object of the research is the socio-economic processes in the Republic of Kazakhstan duringthe pandemic. In the country, an unprecedented situation has developed and established itself in 2020-2021, for which both the government and the population were not prepared. Day by day, the numberof fatal cases is increasing, a new strain of the virus has appeared, and the vaccination is not giving theexpected results. The government of the country needs to take tough and effective measures. All thissubstantiated the relevance of the chosen research topic.Key words: social projects, COVID-19, macroeconomics, labor market, education, governmentregulation, vocational guidance.

Regional budget policy: conceptual dominants and vectors of development

The paper is devoted to the implementation of regional budget policy in Ukraine. The main vectors of budget policy development as a component of socio-economic policy at the local level are highlighted. Within the framework of the declared budget policy, the peculiarities of the formation and functioning of local (regional) budgets are considered. The interpretation of the definitions of "budget" and "policy" is presented, and the author's definition of the essence of the budget policy of the region is offered. The conceptual dominants of budget policy, the implementation of which takes place through the budget mechanism, are studied. It is proved that budget policy is an important lever of influence and a real reflection of the tactics and strategy of public authorities and local governments in the budget sphere. It is substantiated that the effectiveness of the implementation of regional budget policy directly depends on the sequence of steps aimed at increasing the level of competitiveness of the regions and overcoming the existing regional disparities. On the basis of generalization of thematic researches and practice the offers concerning application of levers of budgetary regulation which define a level of efficiency of budgetary policy of region are formulated. It is stated that the content of the budget policy of the region should be to determine the course, tasks and activities of the state and local governments in the field of formation and use of budget funds. Full implementation of the budget policy of the region stimulates the functioning of economic activity of administrative-territorial units, promotes rational budget planning, as well as the effective filling, distribution and use of local financial resources.

Strategic concept of national economy development in the focus of design management

The purpose of the article is to substantiate the strategic concept of national economy development in the focus of design management. Methodology. General scientific methods are used in the research, in particular theoretical generalization – to determine the theoretical foundations and trends of content and components of design management; system economic analysis – to substantiate the model of strategic economic transformations management in the context of design management; statistical analysis, namely correlation-regression analysis – to study the relationship between macroeconomic indicators and social indicators. Results. It is proved that the current economic model of the national economy is unsuitable for achieving the goals of sustainable development, ensuring the competitiveness of the state in the global environment and a decent standard of living in the long run. Attempts to improve (reform) certain parameters and components of the outdated model may lead to a loss of time and resources, which will cause Ukraine to further lag behind the developed countries of the world. Solving the problem of ensuring a decent living standard for citizens and the human potential development requires a comprehensive reengineering of the structure and processes of the socio-economic system based on design management. Design management is an innovative concept of thinking. The study of its features allowed to formulate our own approach to determining the strategic management of the national economy. Under this approach, it is proposed to understand the process of designing a socio-economic model of development. The parameters of its operation will guarantee a decent satisfaction level of the population needs in the long run, the choice of a system of optimal strategies and mechanisms for their implementation, taking into account the factors of national security and environmental protection. The corresponding model of strategic management of economic transformations is substantiated. The main directions and priorities of economic policy (sectoral, fiscal, tariff, customs and public procurement policy) aimed at the implementation of qualitative structural transformations to ensure economic growth of the national economy in the strategic perspective are given. The correlation-regression analysis of influence of separate macroeconomic parameters is carried out. Among them: GDP, gross value added, gross capital formation and export balance, ensuring household income growth and employment. According to the design concept, they are key factors in social development. According to the analysis results the number of people employed in the economy by 72–73% correlates with GDP and GVA growth, but this relationship turned out to be negative. One of the reasons for the negative correlation may be the growth of labour productivity due to the introduction of innovative technologies. Practical meaning. Employment growth is also negatively affected by the processes of optimizing the number of employees in enterprises due to certain structural changes, including reduction of the share of industry in the structure of GDP, reduction of employees in the budget sphere and increase of the services sector, which does not require such a large number of employees. In the future, the extrapolation of these trends threatens to further deteriorate the labour market. Prospects for further research. Using correlation-regression analysis, close correlations have been established between household incomes and the growth of gross value added in the economy, the increase in the export balance and the gross accumulation of capital. Using correlation-regression analysis, close correlations have been established between household incomes and the growth of gross value added in the economy, the increase in the export balance and the gross accumulation of capital. This indicates the priority of developing economic activities with a high level of value added, increasing exports and capital investment as imperative factors in reducing poverty in the long run.

Theories and Methods Involved in the Interpretation and Assessment of the Financial Security of the State in the Context of Socio-Economic Transformation

Theoretical and methodological tools for determining and assessing financial security have been deepened. An analysis of the publications of Ukrainian scholars on approaches to the interpretation of the concept of “financial security”, including the definition of components of financial security, which shows that most often it is allocated to budget security. A matrix of approaches to determining the components of financial security. The essence and nature of budget security are determined, it is shown that budget security is the main component of financial security, which indicates the importance of budget policy in the system of financial security of the state. The author’s definition of financial security of the state as a state of stability and stable protection against threats in the budget sphere, which is characterized by ensuring the solvency of the state and a high level of budget, debt, banking, currency, monetary security and is achieved through effective fiscal policy.
 Based on the Guidelines for calculating the level of economic security of Ukraine of the Ministry of Economic Development and Trade of Ukraine from 2013, 6 indicators (sub-indices) of economic security of Ukraine for 2016–2018 were calculated (banking security, security of non-banking financial sector, debt security, currency security, monetary credit security and budget security), as well as an integrated indicator of financial security of Ukraine. The results of calculations show that the financial security of Ukraine in 2016–2018 was at a dangerous level, which confirms the need to form and implement a set of policy measures to support it.

STIMULATION OF EFFECTIVE EMPLOYMENT IN THE CONDITIONS OF SOCIAL VULNERABILITY

The purpose. The purpose of the article is to substantiate the need to improve the modern state employment policy under the intensification of external migration of the population of Ukraine. Effective institutional-administrative, organizational-economic, and information tools of the state employment policy should be used to create and improve the quality of existing jobs, intensify employment in rural areas, eliminate shadow employment and wages, equalize imbalances in supply and demand in the labor market. Design/Methodology/Approach. To study the need to develop modern state employment policy in Ukraine, the authors used the following research methods - theoretical and logical explanation, statistical analysis, systematization and explanation, semantic analysis. The study was conducted within the framework of institutional economic theory, migration, and state regulation of the economy. Conclusions. The studies have shown that the containment of external migration processes by increasing the number and improving the quality of jobs, in connection with which the task of developing the state employment policy against the background of high migration activity of the population of Ukraine is relevant. It is substantiated that the main challenges of the modern sphere of employment in Ukraine lead to an increase in external migration, namely: formation of labor shortage in the national labor market, intensification of destructive changes in employment; low pay, especially for budget sphere workers, the spread of shadow employment schemes, which leads to a decrease in social protection of employees; strengthening of professional and qualification imbalance in demand and proposals in the labor market due to the mismatch in training the specialists for the needs of the economy. Other challenges are the unformed labor market in rural areas, preservation trends of open and hidden unemployment among the rural population, reducing the demand for labor in rural areas; lack of appropriate conditions for the development of inclusive labor market, the insufficient realization of opportunities and potential of the state employment services in ensuring the innovative development of employment. The objective necessity of realization of effective institutional-administrative, organizational-economic, and information tools of the state employment policy is proved, which largely depends on the natural containment of migration processes in Ukraine. The implementation of the presented tools is focused on economic stabilization of the situation in the country and regions by stimulating the de-shadowing of business and income, increase the welfare of the population, increase of opportunities for young people in employment, and the growth of aspirations of migrant workers to remigration and realization of own business goals on the territory of Ukraine. Originality/value. The value of the research lies in the development of the mechanisms to ensure the competitiveness of national and regional labor markets as a tool for regulating external labor migration, as well as for improvement of the state employment policy, especially the development of innovative and creative types of work.

Internal Control in State Institutions

The article considers the features of the state institutions activities related to their organizational structure, areas of their activity and the composition of objects under control. It defines the main directions of internal control in the budgetary sphere and reveals the features of the budget process management. The author highlights the topical issues related to the necessity of strengthening the regulation of the state institutions activities and improving the internal control system. The purpose of the research is to analyze the procedure for organizing internal financial control in the state institutions and determine the main directions for its improvement. In the course of the research, the methods of analysis, synthesis, comparison, deduction, logical thinking, and the dialectic method of cognition were used. The peculiarities of the organization of internal control in state institutions are related to the fact that they face a dual task. On the one hand, it is necessary to ensure the rational use of budget funds and resources allocated for the maintenance of their apparatus. On the other hand, it is necessary to ensure control over the rational distribution and effective use of budget funds in subordinate organizations. The actuality of considering the issues of internal control regulation is determined by the necessity of creating a cross-cutting risk-oriented internal control system aimed at the effective use of public resources provided for organizations. The results of the research include the development of a methodological approach to improving the mechanisms of organizing internal financial control in federal executive bodies. It is concluded that strengthening the regulation and unification of internal control in the state institutions contributes to improving the quality of public resource management.

Valuation techniques and hierarchy of fair value of inventories and property, plant and equipment in the Russian accounting of organizations that are not budgetary sphere organizations

In the previous article, we analyzed the scope and features of the formation of fair value, which is entered into the Russian accounting of inventories and property, plant and equipment of non-budgetary sphere organizations (including healthcare organizations) thanks to the Federal Accounting Standards (FAS) 5/2019 “Inventories”, 6/2020 “Property, Plant and Equipment”, and 26/2020 “Capital Investments”. This article examines the valuation techniques and hierarchy of fair value of these assets. This study is all the more relevant since the fair value is entered into the Russian accounting of inventories and property, plant and equipment of non-budgetary organizations for the first time and it is still quite unusual for many domestic accountants. Analysis, synthesis, grouping method, comparison, analogy method, logical approach, and systemic approach were used as research methods. As a result of the research carried out, the article analyzes the fundamental issues in the field of valuation techniques and hierarchy of fair value of inventories and property, plant and equipment of non-budgetary sphere organizations (including healthcare organizations), identifies the most important problems in this area and presents recommendations for their solution.

Отдельные аспекты применения федеральных стандартов внутреннего государственного (муниципального) финансового контроля

The article is dedicated to the review of the federal standards of internal state (municipal) financial control. The article reveals the possibilities of applying the developed standards by supervisors while performing control measures in the financial and budgetary sphere. The article highlights the necessity of increasing the efficiency, rationalization and modernization of the processes of organization and implementation of internal state (municipal) financial control through standardization, covering all stages of the control event. The approved standards reveal the principles of control activities, organize the rights and responsibilities of officials of objects and subjects of internal state (municipal) control. The review includes standards that regulate the planning and conduct of inspections, audits and surveys, the formulation and implementation of their results, and standards that detail the rules for pre-trial appeal and reporting on the results of control activities.

Financial security of the state in the field of circulation and use of virtual currencies

Financial security of the state in the field of circulation and use of virtual currencies

Fair value measurement of inventories and property, plant and equipment in the Russian accounting of organizations that are not budgetary sphere organizations: scope and features of formation

The Federal Accounting Standard (FAS) 5/2019 “Inventories” provides for a fairly broad application of fair value measurement of the inventories of non-budgetary sphere organizations (including healthcare organizations). An even more active use of fair value is suggested by FAS 6/2020 for the measurement of property, plant and equipment of the aforementioned organizations. The specified value is entered into the domestic accounting of the listed assets for the first time and is unusual for many Russian accountants. All this indicates the relevance of a detailed study of issues related to the fair value measurement of inventories and property, plant and equipment of the aforementioned organizations. In this article, the scope and features of the formation of this measurement are investigated. Other issues related to this measurement will be analyzed by us in the next article. The research methods were analysis and synthesis, grouping method, comparison, analogy method, logical approach, systemic approach. As a result of the research carried out, the article defines the scope of the fair value measurement of inventories and property, plant and equipment in the Russian accounting of organizations that are not budgetary sphere organizations, analyzes the features of the formation of such a measurement of these assets, identifies the most important problematic issues in this area and identifies ways to solve them.

How to improve the efficiency of budget control?

The article is devoted to analysis of current indicators of control efficiency in the budgetary sphere, main directions of the reform of control and supervisory activity (hereinafter — CSA), held in Russia since 2009, as well as objective obstacles to the successful implementation of the reforms in the budget sphere. According to the author, in the budget sphere, the general ideology of the CSA reform does not work well, since the amount of violations detected by the control bodies is not equal to the amount of damage caused to the budget. The author comes to the conclusion that the main reason for the low efficiency of control in the budget sphere is the latent nature of embezzlement of budget funds, as a result of which such embezzlement is usually qualified as «inefficient use of budget funds», which excludes liability and recovery of damage caused to the budget. According to the author, the effectiveness of control in the budget sphere can be improved by shifting the focus from subsequent control to preliminary control, which should be carried out mainly by automated means, as well as by introducing a certain form of responsibility of officials for the «inefficiency» of their activities.

Modern aspects of stock accounting in budgetary organizations

The article considers the problem of current accounting of stocks in public sector organizations through the prism of new standards. As a result, the unity of the system of requirements for accounting of tangible assets was confirmed. The paper reveals the positions of modern scientists and practitioners on the novelty of requirements in the accounting of short-term assets. The author presents the logical scheme of application of norms of accounting of material stocks in the budgetary sphere from the point of view of their subordination. The study generally discloses the criteria for fulfilling the utility of the potential contained in the asset. The article presents and discloses the logical scheme for achieving the utility criterion reflected in the material stock. The author describes the necessity to use inventory as a way to identify signs of attributing assets to stocks or property in storage.

On the differences in the fundamentals of legal regulation of external and internal state financial control

This article analyzes the differences in the fundamentals of legal regulation of internal and external state financial control, as well as the legal status of branches exercising internal and external state control in the financial and budgetary sphere. The goal of this article consists in the comprehensive analysis of their legal regulation to answer the question on the possibility of unification of the norms of financial control in a single normative legal act, as well as on the need for systematization of the theoretical framework in this sphere within the framework of any policy document. Analysis is conducted on the specific aspects characteristic to legal regulation of external and internal state financial control, as well as on the peculiarities of the history of their development. The article examines the role of international institutions in creation of legal regulation in the indicated sphere of public relations. The scientific novelty consists in consideration of the key features of internal and external state financial control, as well as the corresponding conceptual apparatus for the purpose of systematization of their legal regulation. The conclusion is made on the possibility of systematization of financial control; however, due to the complex nature of financial law and substantial differences in different spheres of financial relations and exercising of different types of financial control, such systematization should take place not within the framework of law, but rather within the framework of policy document. The author believes that namely the creation of the concept for the development of financial control is the preferential way for unification of the  conceptual framework, as well as the main methods of regulation and organization of financial control.

Привлечение сотрудников организаций бюджетной и коммерческой сферы к занятиям физической культурой и спортом

The article analyzes the results of a survey of the population in the framework of identifying the needs (motivation) for sports. A comparison of the commercial and budgetary spheres allows us to analyze the qualitative characteristics of the current system and current problems, as well as on the basis of these results, we can make recommendations that will allow us to effectively adapt the current system to modern conditions and, thereby, improve the quality of life of the population. The object of the study is public opinion in the field of needs (motivation) for physical education and sports. The subject of the study is the social environment in terms of conditions for physical education and sports.

Improving the activities of the audit commission in the state audit system in the Republic of Kazakhstan

This article analyzes the activities of the audit commission in the system of state audit in the regions of the Republic of Kazakhstan in modern conditions. Issues of effective management of budgetary funds and strengthening of financial and executive discipline, as well as the importance and necessity of conducting joint or parallel control measures by external state control bodies have been investigated. The author studied the issues of the effectiveness of the use of funds allocated from the republican budget. The organization of the effective activity of the Audit Commission, first of all, depends on the correct formation of long-term goals, as well as strategic priorities. The introduction of long-term planning is associated with the desire of the Audit Commission to fulfill its mission with the maximum benefit for the state and publicity. Long-term planning is aimed at ensuring the further development of governmental audit and financial control in accordance with the Law of the Republic of Kazakhstan “On State Audit and Financial Control”, as well as new concepts of budgetary policy. State audit in the Republic of Kazakhstan. With the gradual integration into the world community, there is a growing need to increase the competitiveness of government agencies. To protect regional interests, it is necessary to effectively manage local budgets, strengthen financial and executive discipline. Increasing the accountability of the state apparatus to the public for decisions made in the budgetary sphere will lead to the transformation of state financial control into an institution of state audit, which will make it possible to assess the existing economic mechanisms and promptly develop recommendations for the effective use of state financial control.

The role of primary financial monitoring subjects in the system of state control over the identification of risks of spending budget funds

The article defines the concept of “budget risk”, considers the most vulnerable component of budget risk-the stage of budget execution for expenditures, financial monitoring is considered as one of the methods of financial control, defines the functions of Rosfinmonitoring in the system of state bodies controlling the financial and budgetary sphere, as well as the role of subjects of primary financial monitoring to prevent and suppress risks associated with the expenditure of budget funds.

Modernization of Prosecutorial Research Methods to Ensure the Rule of Law in the Budgetary Sphere

The article discusses methods of post-classical scientific research used in Specialty 12.00.11. The author argues for the preservation of historical and legal, comparative-legal, and formal-dogmatic methods and constitutionally protected, rights-based methods in the study of prosecutorial activity in the public sector.