Fiscal Budgeting Research Articles

Dynamics of Fiscal Policy and National Development in Nigeria

The study was designed to explore the relationship between fiscal policy and national development. Theexploratory research design was adopted in the investigation. Data were generated from both primary and secondary sources, which were found useful for the study. Fiscal policy is crucial in national developmentbecause manipulating revenueand expendituremeans that government must reduce taxation to increase spendingand vice-versa. In the public sector, the primary purpose of fiscal policyis ensuring that an agency operates within its budget limit. This means that public sector managers are charged withthe oversight of government’s revenues and expenditures, including budget management, corporate compliance, adherence to financial regulations,and plans. Data for the study were analyzed through the regression method, and the result showed positive association between fiscal policy and national development. Based on this finding, it was recommended among others that proper fiscal budgeting is essential fornational development.

A Commentary on Affirmative Action Policies for Women in India in the Backdrop of International Commitments

Affirmative action is often used as a tool by policymakers to promote women empowerment and gender sensitivity. This paper examines the affirmative action policies for women in India and highlights their impact on uplifting their social and economic status. India is a signatory to various international conventions on women's rights. This paper aims to study India's affirmative action policies to see whether they match with its global commitments under various frameworks like United Nations etc. An analysis of the existing research studies has been done to understand the benefits accrued to women as a result of affirmative action in the areas of education, politics and fiscal budgeting. A holistic picture of this issue has been presented so that relevant conclusions can be drawn about the efficacy of this programme.

Податкове бюджетування на підприємстві в умовах мінливого бізнес-середовища: бути чи не бути

In the process of achieving strategic goals of development, enterprise management should have an understanding of the amount of available resources and capabilities. In this context, the process of corporate planning of an enterprise plays an important role, based on the use of various methodological methods and techniques, among which is the widely known budgeting of the business entity and its tax payments. It has been determined that budgeting of business processes of the enterprise in recent years is accompanied by ambiguous scientific statements and practical recommendations, among which there are both supporters and opponents of the traditional method of budgeting. The purpose of the publication is to clarify the feasibility of using the budget method of enterprise management, in a changing business environment, review its existing advantages and disadvantages, as well as comparison with alternative methods of enterprise planning and its tax payments. The study focuses on fiscal budgeting in the enterprise, as the transformations in the domestic economy are accompanied by an increase in the tax burden and a more streamlined administration of taxes and fees, which ultimately requires management to better plan future tax payments and accumulate the necessary cash reserves. Established, the main alternative to classical budgeting at the enterprise is an adaptive approach to its management called Beyond Budgeting. However, the authors of the article are convincing statements about the necessity and economic expediency of using the budget method of enterprise management. Rational tax budgeting at an enterprise allows him to form a road map for his management in the planned period.

The Theoretical Relationship of Government Organizational Structure, Leadership, and Financing in Terms of Fiscal Budgeting and Their Applications

The corporatization of the government has resulted in the change of the government structure and leadership, and this change has a negative impact on the fiscal budgeting – from the sources of funds to expenditures, and the government financial management and accounting presentation. This change brings about the generalization and equalization of the government organizational structure, leadership, the fiscal budget, and financial presentation across sector, despite they are different in every aspect. However, the impact of the equalization or generalization of the government organizational structure and leadership has been an organizational and managerial dysfunctionality, leadership and democratic deficits, and a failing government worldwide. In terms of public finance, it causes the disappearance of sources of funds and an increase in government expenditures. The disappearing of sources of funds makes it difficult for the government to provide the goods and services to the citizens equally with high standard and quality and to meet the corporate government marketing message, a “professional government.” How can these conditions be remedied through the use theory in the application? Using the qualitative methodology, through a holistic perspective and phenomenological approach, this paper, first, discusses the theoretical relationship of government organizational structure, leadership and public finance, the causal effects of the change in the government and its negative impact, and the application of the theories to practice. Second, this paper discusses or proposes ways to remedy the negative impact of the change in the government by applying theory to practice and how the sources of funds can be recaptured to enable the government to survive as a legitimate institution to provide to its citizens what the market cannot provide. Chairman Mao once said, “Applying theory to practice is good for all works.” It raises the standard and quality of the goods and services, raises the quality and professionalism of the organization and its leadership, reduces social and economic exclusion, it is a good practice, produces more sustainable result, makes the tasks meaningful, and will result in a more democratic government.

Lessons from the great recession for developing countries

Many lessons can be taken from the Great Recession and the Euro crisis with respect to both pre-crisis and post-crisis policies. Appropriate measures can reduce the risk of crisis in individual countries, the severity of crises, and the magnitude of needed adjustments. These include an appropriate exchange rate policy (flexibility is highly desirable), ensuring the soundness of the financial system, not allowing expansion of credit at too high a rate, adopting structural fiscal budgeting policies, and avoiding dangerous sovereign debt build-up. On the crisis resolution side, the lesson that stands out is the desirability of decisive and credible action to address the causes of the crisis. The issues that arise when the banking and financial system is weakened in the run-up to crisis are extremely difficult, especially when sovereign debt is unsustainable. Therefore, while the important lesson is to avoid overly expansive credit build-up during good times, in the event of a crisis, it is important that the health of the banks be restored as quickly as possible and that a viable supervision and resolution framework be put in place.

Louis Fisher on Congress and the Budget: Institutional Responsibility and Other Taboos

The serial fiscal policy and budgeting woes of the United States over the last three decades have been compounded by a bipartisan evasion of institutional responsibility by elected leaders. Long before “sequestration” and “fiscal cliffs,” Louis Fisher argued that presidents and members of the House and Senate undermined constitutional power balance and the spirit of budgeting law. A variety of ill-conceived process “reforms” further damaged the separation of powers system. As a scholar, Fisher uses an institutional lens to explore budget concepts that are rare in political science, such ascapacity, accountability, andduty. And as a public intellectual, Fisher's relevance has been secured by his repeatedly broaching these scholarly and political taboos.

A Quick Method for Assessing Economic Damage Caused by Natural Disasters: An Epidemiological Approach

In the aftermath of any natural disaster, a quick assessment of economic damage is called for, without which recovery planning and fiscal budgeting is impossible. What is customarily done as damage accounting is to use some aggregation by parts method, which is predisposed to commit double counting, omission, and bureaucratic inconsistencies. As an alternative, we propose to work with a social epidemiological model. First, we present a result by means of a log linear model which shows evidence of hazard factors and vulnerability factors at work. We then simplify the model by deleting the variables that are not significant in a linear formulation. Lastly, we give our estimate of economic damage for the case of the North East Japan Earthquake and Tsunami of March 11, 2011 and alert that the true damage may well be the double of government’s estimate.

Analysing the fiscal process under a stochastic environment: evidence from Egypt

This paper investigates the sustainability of the fiscal budgeting process for Egypt, for both stochastic and non-stochastic environments. Note that persistent deficits and the accumulation of debt do not necessarily imply that the debt is unmanageable, and hence, that fiscal processes are unsustainable. It is possible for a government to change the historical pattern it has been following so that it will not continue to borrow and run a ‘Ponzi’ scheme in the future. This implies that the standard cointegration approach to testing whether a government adheres to its intertemporal budget constraint does not provide sufficient criteria for determining whether the fiscal process is truly sustainable. Consequently, we also use a more encompassing set of criteria under more realistic assumptions for determining whether the fiscal process in Egypt exhibits a sustainable budgeting process. These criteria for sustainability are based on the multicointegration approach. Therefore, both cointegration and multicointegration methodologies were used to evaluate these processes. It was found that the fiscal budgeting process in Egypt is sustainable in neither a stochastic nor a non-stochastic environment. Furthermore, the earlier and recent nationalisation of foreign trade resulted in an increase in deficits-GDP ratio. Adopting an austerity budget in 1967 and paying an additional cost of living allowance to government employees since 1975 were the only two policy regime changes which reduced the deficit per GDP.

Fiscal sustainability in emerging countries: Evidence from Iran and Turkey

This paper investigates the fiscal sustainability of two emerging countries – Iran (an oil-producing country) and Turkey (an agricultural country) – for both stochastic and non-stochastic environments. Cointegration and multicointegration methodologies were used to evaluate fiscal budgeting processes in these countries. A model for testing the sustainability of a fiscal policy, based on Barro's tax smoothing, was also developed to test the Iranian fiscal policy. It was found that the fiscal budgeting process in both countries is not sustainable. Furthermore, the Iranian fiscal policy, as far as oil and gas income is concerned, is not a fully responsible policy.

THE POLITICAL ECONOMY OF BUDGET DEFICITS

In Leachman et al. (2005) we use the multicointegration approach to test for sustainable fiscal budgeting processes in a stochastic setting in 15 industrialized countries. In this paper, we extend the analysis in order to rank these same countries as well as an additional three, according to the degree to which their budget processes are sustainable. Rankings are related to theories regarding the political economy of budget deficits. Evidence clearly indicates that fiscal performance is better where fiscal budgeting institutions are strong. Additionally, we find that in conjunction with fiscal strength, greater degrees of federalism positively affect intertemporal budget management.

MULTICOINTEGRATION AND SUSTAINABILITY OF FISCAL PRACTICES

Using multicointegration methodology, we develop criteria for testing sustainability of fiscal budgeting processes across all states of nature. Criteria are derived from the optimal control literature where levels and rates of change of a system of variables are determinants of policy response. The appropriate policy response mechanisms are outlined and linked to the multicointegration methodology. We then test government spending and revenue systems of 15 industrialized countries for the presence of such mechanisms. We find that only Norway and the United Kingdom exhibit policy responses that are consistent with our criteria.(JEL H6, E62, C22)

Incorporating artificial intelligence in microsimulation

The analysis of behaviours of individuals or small groups of individuals has many applications in economic and social policy, in particular in study of impacts of alternative policy measures. Microsimulation models allow such microanalyses to be quantitative and empirical. Microsimulation may be viewed as an attempt to model and simulate whole distribution of policy target variables, not only their mean values. The microsimulation approach is thus primarily designed for studies of distributional effects of economic policy, and one of its main advantages is that it permits assumptions about heterogeneous behaviour. Troitzsch et al. (1996) describe social science microsimulation as the simulation of dynamic feedback (in both directions) between individual states and states of population as a whole or certain groups within a population. Microsimulation was introduced over four decades ago by Orcutt (1957), and has experienced something of a revival in social sciences over past decade (Merz, 1991; Clarke, 1996; Isard et al. 1998). It has been used to study various social phenomena such as population growth and development, effect of ageing and pension formulas on social insurance funding, and effect of various tax regimes on fiscal budgeting. The spatial dynamic microsimulation model (dubbed SVERIGE, or System for Visualising Economic and Regional Influences Governing Environment) built at Spatial Modelling Centre in Kiruna, Sweden, is unique (Vencatasawmy et al. 1999). It is first national-level spatial microsimulation model to be constructed, thereby permitting analysts to study spatial consequences of various national, regional and local-level public policies. Assisting model-building effort is an important database comprising longitudinal socio-economic information on every resident of Sweden for period 1985 to 1995. The locations of individuals in this database are given in co-ordinates accurate to 100 metres. This database may be augmented using data from other sources if required. It is therefore possible to estimate behavioural equations on various geographical scales and to describe complex dynamic spatial relationships. This paper is an investigation into what can be gained by replacing property value module of SVERIGE based on hedonic price regression equations with neural networks. It addresses design problems that have to be accounted for in both methods, and compares advantages and efficiencies of using one approach in favour of other.

Regulatory budgeting: A bad idea whose time has come?

Advocates of regulatory relief propose a budget that would annually cap regulatory costs. But emulating fiscal budgeting would be much more difficult than they envision. An arbitrary macrobudgetary constraint would have to be selected, and the potential scope of the regulatory budget would be vast. The process of regulatory budgeting would be very-time consuming, and could increase micromanagement by the Congress. Estimating regulatory costs would be challenging, and ignoring regulatory benefits would be unfair and inefficient. A preferable alternative to regulatory budgeting would be to expand the Government Performance and Results Act to include cost-effectiveness reviews for regulations.

Approaches of Extension Specialists to Teaching Community and Economic Development

A survey of community resource and economic development extension specialists was conducted to reveal where specialists get information and ideas and how they disseminate this information through educational programs and various media. Results indicated that the Journal of the Community Development Society was the most commonly cited source of information and ideas. Almost 40 percent of all specialists published or contributed to newsletters. The most common topics for educational programs included business assistance and entrepreneurship, fiscal policy, budgeting and government services, strategic planning and leadership development. Recommendations included establishing more student intern programs, making extension community development educational materials more available through electronic media and recognition of the Community Development Society as a principal outlet for professional communication between specialists.

Project Research Team, State Planning Commission Basic Line of Thought for Reform of the Economic System in the Next Eight Years

The key to the reform of the fiscal system lies in deepening the reforms in three areas: tax collection, the budget, and debts. We must, in accordance with the principles of equal and fair tax burdens, encourage competition and realize the industrial policy, through a new system that would separately channel profits and taxes, improve the tax system of circulation taxes, income taxes, and behavior taxes, and comprehensively carry out a system of repayment of loans after taxes, and, based on these operations, basically put in reasonable order the relationship between the government and enterprises. Through reform of the divided tax system, we must redraw the scope of the incomes and expenditures at all levels of government and establish a multiple budgeting system that includes current budgets, construction budgets, and debt budgets, and, in general, form a relatively independent and stable level-by-level fiscal budgeting system. Through developing and nurturing a market for the issuance and circulation of government bonds, we must expand the scope in the use of repayable funds, and preliminarily establish a fiscal credit system to enhance the effectiveness of the use of fiscal funds.

Biotechnology, Anticipated Productivity Increases and U.S. Dairy Policy

AbstractA major difficulty with the U.S. milk price support program is the instability in fiscal budgeting caused by the rapid technological change occurring in the industry. Further, the introduction of foreseeable new technologies such as synthetic bovine Somatotropin (bST) will compound the levels and costs of government purchases of milk after the technology is introduced in 1990. In this paper, an optimal control model is developed to stabilize government purchases of surplus milk in anticipation of bST. Results indicate that the current policies of Food Security Act of 1985 do not adequately anticipate the introduction of bST, and this will present a large dilemma for dairy policy. Provisions of FSA are adequate to stabilize government purchases of milk at acceptable levels only if bST is not introduced. Either the technology must be restricted, possibly through product taxes, or support prices must be lowered dramatically. Even with lower support prices, CCC purchases may still climb to high levels (15 billion pounds), depending on the rate of adoption.

Seven Key Managerial Functions of Sound Fiscal Budgeting

This paper examines major underlying assumptions supporting the validity df seven key managerial functions as these functions are achieved and enhanced through the systematic, conscious deployment of four current budgeting strategies. Increasingly enlightened public social policy is demanding better utilization of scarce fiscal and professional resources to meet the expanding objectives of the social environment in a complex and interdependent society. What modern human services managers need to know in substance about essential budget strategies and their increased functional utility for enhancing the objectives of human services management provide the integrating theme for the presentation.