Fiscal Sector Research Articles

Analyzing the Challenges and Barriers to Develop State Civil Apparatus Competency Through Talent Management Development After the Release of the National Succession Planning System

Indonesia has transitioned from a public service management model to one to improve service delivery and competitiveness. However, this change faces challenges of efficiency in processes, human resource structures, and bureaucracy. Public distrust and State Civil Apparatus (ASN) non-compliance with the flow of reform pose challenges to increasing ASN competency and leadership reform. The implementation of breakthroughs in the development of public services still cannot prevent corruption both in regional and central government. Corruption does not only occur in the fiscal sector but also the ‘buying and selling’ positions due to the ASN’s low integrity. Regulation of the Minister of State Apparatus Empowerment and Bureaucratic Reform of the Republic of Indonesia Number 38 of 2017 concerning Competency Standards for State Civil Apparatus Positions requires that a State Civil Apparatus must have technical, managerial, and socio-cultural competence, which is constrained by the application of rules related to functional positions and career development, the institutionalization of the ASN’ workplace, and development of ASN training institutions. These constraints influence the ASN’s desire to develop. Thus, an integrated succession planning system for competency development which involves public participation is needed to prevent corruption, collusion, and nepotism in its implementation.

BANKING SECURITY AND ATMs

As the fiscal sector relies on automated teller machines (ATMs) for client deals, the security of these bias has come consummate. This exploration paper explores contemporary challenges and advancements in ATM security, fastening on vulnerabilities that hang banking systems and strategies to alleviate these pitfalls. We examine colorful attack vectors, including physical tampering, cyber-attacks, and social engineering tactics, and their counteraccusations for fiscal institutions and consumers. This paper also reviews current security measures, similar as encryption, biometrics, and machine literacy- grounded fraud discovery, assessing their effectiveness in precluding unauthorized access and icing sale integrity. By assaying recent case studies and security breaches, we give perceptivity into arising trends and recommend stylish practices for enhancing ATM security. Our findings emphasize the need for amulti-layered approach to securing ATMs, integrating technological inventions with robust functional protocols to cover against evolving pitfalls.

Investigating the relationship of government revenue and expenditure on economic growth using a generalized method of moments: Does state-level panel ensure sustainable growth?

The current research project investigates the correlation between economic growth, government spending, and public revenue in seventeen Indian states spanning the years 1990 to 2020. An analysis of the relationship between key fiscal policy variables and economic growth was conducted utilising a panel data approach, the Generalised Method of Moments (GMM), and fully modified Ordinary Least Squares (FMOLS & DOLS) estimation. In our investigation, we assessed the impacts of non-tax revenue, development plan expenditure, tax revenue, and development non-plan expenditure on (i) the net state domestic product (NSDP) and (ii) the NSDP per capita. The findings indicate that the selected fiscal variables are significantly related. The results indicate that expeditious expansion of the fiscal sector is obligatory to stimulate economic growth in India and advance the actual development of the economies of these states.

Convergence behavior of sovereign bond yields in the EU and COVID-19 government responses

This paper aims to investigate the convergence pattern of sovereign bond yields in European Union (EU) countries during the Covid-19 pandemic. To this purpose we employ the Phillips and Sul convergence methodology. We further test whether the above pattern was affected by the intensity of government responses against the Covid-19 dispersion. Our findings indicate the existence of two convergence clubs. Both clubs are composed of countries that have previously been classified as either ‘core’ or ‘periphery’ countries, indicating that in this particular health crisis, this classification is too simplistic. Moreover, our results suggest that the intensity of Covid-19 containment policies had little to no effect in shaping the convergence pattern of sovereign bond yields in the EU. These conclusions are robust even after accounting for the size of the fiscal sector of each country.

New Developments in Environmental, Social, and Governance (ESG): A Corporate Disclosure About India's Top ESG Scorer

Nowadays, companies across all assiduity around the world face the challenges of extraordinary dislocation due to climate changes and other social dislocation. It is the responsibility of standard setters and controllers of the fiscal sector to constantly encourage industries to follow and respond rather of ignoring the dislocation. The present study is an independent and methodical analysis of reporting and evaluation of ESG factors and exposure performance of selected Indian companies. This study investigates how top ESG scorer declared Environmental, Social and Governance factors and BRR in their sustainability report. Environmental, Social and Governance disclosure is one of the main arising corporate disclosures aspects. The other ideal of the study is to produce a mindfulness so that appreciation for ESG becomes communicable and becomes hardwired in the organizational foundation. It will further enable gap analysis and drive companies to achieve leadership status within their assiduity and achieve better performance. The corporate sector and the investment community are crucial players towards achieving sustainable development. It ‘ll also give investors a ready-made tool to measured standard of companies. For the compliance of the objective each ESG factors divided into components and analyzed. The study concluded that the Companies having high scored on policy disclosures followed by governance factor, compared to environment and social factors.

Some Aspects of Karnataka State Finances : A Critical Analysis

In Indian fiscal federalism states play important role by shouldering responsibility of social and economic development activities. With the progress in economic development, fiscal burden of states is increasing over the years. On the other hand, fiscal sector reforms like introduction of GST have affected the revenues of states. As a result, most of the state governments are finding it difficult to manage finances effectively. This paper tries to analyse the financial position of Karnataka state by taking into consideration revenue and expenditure aspects. It is concluded that due to proactive policies and efficient fiscal management Karnataka state was able sustain prudent fiscal management

Valuing high temperature's fiscal costs: Evidence from China

Developing effective climate governance policies requires a comprehensive understanding of climate change's costs. However, the existing literature investigates the impacts of climate change on the private sector but neglects to evaluate the fiscal costs. Using fiscal data from Chinese county governments and meteorological data from weather stations from 1995–2019, this paper empirically examines the impacts of climate change, represented by changes in extremely high temperatures, on fiscal sustainability. Our results document that extremely high temperatures significantly increase fiscal expenditure and fiscal balance pressures on local governments. Mechanistically, extremely high temperatures have increased public demand for social and health spending, forcing local governments to increase expenditure. This paper reveals the substantial climate risks embedded in the fiscal sector. Local governments should incorporate the fiscal cost of climate change into their decision-making frameworks when making fiscal decisions and recalculate the costs and benefits of mitigation and adaptation policies.

Macroeconomic stabilisation properties of a euro area unemployment insurance scheme

In this paper we use a medium-scale DSGE model to quantitatively assess the macroeconomic stabilisation properties of a supranational unemployment insurance scheme. The model is calibrated to the euro area’s core and periphery and features a rich fiscal sector, sovereign risk premia and labour market frictions. Adopting both simple policy rules and optimal policies for the centralised insurance scheme, our simulations point to enhanced business cycle synchronisation and inter-regional consumption smoothing. The results suggest a sizeable reduction in the volatility of macroeconomic aggregates at the region-level, while the cross-regional correlation of unemployment and inflation increases significantly, compared to the decentralised setting. The higher degree of inter-regional risk-sharing comes at the cost of sizable fiscal transfers. Limiting such transfers via claw-back mechanisms reduces the degree of stabilisation across countries.

The Causes of Hiking Ethiopian Consumer Prices

A growing consumer price is creating instability in the macroeconomic environment and hinders the consumption level of especially the poor society. This paper then explored the major causes of such increasing consumer prices using Ethiopian cases. Using data from the National Bank of Ethiopia from 1982/1983 to 2019/2020, it condensed the information of monetary sector, external sector and fiscal sector variables to a small set to estimate the causes of Ethiopian consumer price hiking using the ARDL model. The factors determining consumer price differ from food to non-food. The most important factors determining food price are price expectation and fiscal factors. On the other hand, the main determinant of non-food consumer prices is the fiscal factor. The author also found evidence of fiscal factors and price expectation effects on general consumer prices. Therefore, to contain the rise in consumer prices, it needs to exercise conservative fiscal stances, which require minimizing deficit financing, reducing the import tax rate and reducing domestic indirect tax rates such as excise tax and value added tax on basic consumer goods and services. Moreover, sound government policies are essential to address inflation anticipations (providing information for society about the future of inflation) to change public opinion.

Fiscal DSGE model for Latvia

ABSTRACT We develop a fiscal dynamic stochastic general equilibrium (DSGE) model for policy simulation and scenario analysis purposes tailored to Latvia, a small open economy in a monetary union. The fiscal sector elements comprise public investment, public consumption, government transfers that are asymmetrically directed to both optimizing and restricted (hand-to-mouth) households, cyclical unemployment benefits, foreign ownership of public debt, import content in public consumption and investment, and fiscal rules for each fiscal instrument. The model features a search-and-matching labour market friction with pro-cyclical labour costs, a financial accelerator mechanism, and import content in final goods. We estimate the model using Latvian data, study the new channels in the model, and provide a comprehensive analysis on the macroeconomic effects of the fiscal elements. Our results indicate that Latvian fiscal policy was pro-cyclical during the boom-bust period of 2004–2010 and that foreign ownership of public debt breaks Ricardian equivalence and raises fiscal multipliers.

Monetary, fiscal, and structural drivers of inflation in Ethiopia: new empirical evidence from time series analysis

AbstractThis study empirically investigates the drivers of inflation in Ethiopia using monthly data over the period July 1998 to September 2020. It explores short‐run and long‐run effects of domestic and external determinants of inflation—including demand‐side, supply‐side, and structural factors—using the cointegration and vector error‐correction methodology. Four measures of inflation are considered: cereals, food, nonfood, and all‐items Consummer Price Index (CPI) inflation. A key contribution to the existing literature is the investigation of the role of the fiscal sector in modeling inflation, a topic that has been neglected in the existing studies on inflation in Ethiopia. The empirical results show that disequilibria in the monetary sector, grains sector, and food markets have long‐run effects on inflation. In the short run, inflation is driven by structural factors (notably, cereal output gaps and imported inflation) as well as demand‐side factors (notably, money growth and public sector borrowing). The results hold when analysis is limited to the high growth period from 2005 onward, following the end of the International Monetary Fund (IMF) program in the country. The evidence provides valuable insights in the context of ongoing macroeconomic policy reforms in Ethiopia.

MICRO, MACRO, MONETARY, AND FISCAL SECTORS OF INDONESIAN ECONOMICS DEPEND ON DEFENSE ECONOMICS

Indonesia as a developing country, has good awareness of the importance of national development in many aspects. The national development process includes the developments of micro, macro, monetary and fiscal sectors. These factors have affected the allocation of resources, distribution of income, economic growth, and stabilization related to military defense. This paper aims to describe the Indonesian economic condition in 2022 from the defense economics perspective. The method used in this paper is a qualitative literature study with a descriptive and narrative approach. The conclusion is that the Indonesian economic current condition from the micro and macro sectors shows a good development. Furthermore, the policies taken by the government in the monetary and fiscal sectors are considered to be able to stimulate economic recovery. From the defense economics point of view, this condition must be accompanied by conducive country security so the public welfare can be stable

The Sectoral Nexus in a Small Open Economy: Evidence from Nigeria

The interrelationship between the real, monetary, fiscal, and external sectors of the Nigerian economy is an issue of concern, as it will provide policymakers with insight on which of the sectors is potent in influencing output in the real sector, which little or no attention was given. This study, therefore, examines the interrelationships between these sectors in Nigeria between 2010Q1 and 2021Q1. Structural Equation Model (SEM) was employed. The study finds that monetary and fiscal sectors have a positive influence on the real sector output, while the external sector has a negative influence on the real sector output in Nigeria. It was found that only the monetary sector influenced real sector output significantly. This study recommends effective collaboration between the monetary and fiscal authorities in stimulating aggregate demand, boosting economic activities, and spurring economic growth in Nigeria using money supply, and external and domestic debt.

Analisis Derajat Desentralisasi Fiskal di Provinsi Sulawesi Tenggara Tahun 2016-2020

One form of the implementation of regional autonomy is the existence of autonomy in the aspect of regional financial management which is called fiscal autonomy. Fiscal autonomy is the delegation of responsibilities and the distribution of power and authority for decision-making in the fiscal sector, which includes both revenue and expenditure aspects. Fiscal decentralization is linked to the duties and functions of local goverment in providing public goods and services. This study aims to analyze the degree of fiscal decentralization in Southeast Sulawesi Province in 2016-2020.The degree of fiscal decentralization is a measure of the ability of local goverment in order to increase Local Own Revenue which is used to finance development in Southeast Sulawesi Province. This is study uses secondary data. The analytical tool used in this study is quantitative analysis, namely the analysis of the degree of fiscal decentralization, namely the ratio between Regional Original Income and Total Revenue Regional. The results showed that the degree of fiscal decentralization of Southeast Sulawesi Province in 2016-2020 fluctuated with an average 0f 25,25% so it could be said that it was still in the moderate category.

ФІСКАЛЬНА ДИДЖИТАЛІЗАЦІЯ: СУТНІСТЬ ТА РОЛЬ У РОЗВИТКУ НАЦІОНАЛЬНОЇ ЕКОНОМІКИ

Today, information and communication technologies play a significant role in the work of state authorities. The question is particularly acute, taking into account the current realities of the economic development of Ukraine, the use of information and communication technologies in the work of state authorities. The available personnel potential, the constant development of the digital infrastructure, and the significantdemand for new information services from the population contribute to the active implementation of such technologies in the work of state institutions.The article deepens the theoretical provisions of the essence of fiscal digitalization as one of the directions of transformation of the fiscal system under the influence of modern information and communication technologies. A detailed examination of the essence of digitization as a process of active use of modern information technologies in the developmentof social systems allowed us to specify the content of this process and specify its features.In the article, the essence of the fiscal system, the fiscal sector is studied in sufficient detail, the features of such a system, its role in the development of the national economy are specified. it is generally substantiated that the fiscal system is an important component of ensuring the development of the financial system of the state, and, accordingly, of the national economy. The article identifies the reasons for the need for further use of information and communication technologies in the fiscal sphere, specifies the directions of application of such technologies, specifies the content of fiscal digitization as a separate scientific definition.The role of fiscal digitization in the development of the national economy is also specified and it is clarified that due to the opportunities to influence the level of development of the tax system, the digitalization of the fiscal sphere is important from the point of view of ensuring the level of competitiveness of the tax system and the national economy in general in the world.

Economy of the Neighborhood Belt Countries in the Context of the COVID-19 Pandemic and Peculiarities of Post-Crisis Recovery

Aim. The presented study aims to identify key factors affecting the macroeconomic situation in the EAEU countries and Tajikistan (hereinafter referred to as the region) in the context of the COVID-19 pandemic.Tasks. This study summarizes trends in the development of the neighborhood belt countries in recent years; investigates changes in the real, monetary, fiscal, and external sectors of the economies caused by the spread of COVID-19; identifies the vulnerability factors of the countries in the region and key trends in responding to the crisis and post-crisis recovery.Methods. To investigate the effects of the COVID-19 pandemic on the macroeconomic situation in the neighborhood belt countries, the authors analyze the dynamics of major macroeconomic indicators characterizing the state of the real, monetary, external, and fiscal sectors of the economies under consideration.Results. The macroeconomic situation in the neighborhood belt countries at the beginning of the COVID-19 pandemic and during the post-crisis recovery is largely similar. The effects of the pandemic include sharp depreciation of national currencies, increased budget deficits, and increased national debt. Post-crisis recovery in the region is characterized by persistent risks to fiscal and debt sustainability and the effect of pro-inflationary factors.Conclusions. Despite the consistent post-crisis recovery of the neighborhood belt countries, sustainable growth is still threatened by the possible deterioration of the epidemiological situation, national budget deficit, high level of national debt, and increasing inflationary pressure. Macroeconomic policy in the countries of the region can be improved by enhancing the macroeconomic forecasting system and applying budget rules for managing budget and debt risks.

ШЛЯХИ ДОСЯГНЕННЯ МАКРОЕКОНОМІЧНОЇ СТАБІЛІЗАЦІЇ В УКРАЇНІ

The comprehensive analysis of domestic economy and it’s actual state undoubtedly confirms its steady transformation into a small, resource-based economy. Its also proves the absence of positive trends related to key factors for ensuring financial sustainability and attaining national security. Special attention is paid to factors in the fiscal sector (an increase in budget revenues based on economic growth as the result of changes in the volume of domestic and foreign trade, due to improvement in the financial results of enterprises and an increase in wages, as well as due to changes in direct tax receipts, and a decrease in the budget deficit); it is also analysed the debt sector (management of Ukraine’s sovereign debt); the detailed attention is given to banking sector (overcoming crisis phenomena in the banking system). Revealing the institutional problems, inefficiency of the public administration system we are justifying the implementation the number of measures in the areas of economic growth recovery, development of the internal market as the basis for sustainable growth, changes in the structure and activation of export policy. The expansion of small farming can be a trigger of the Ukrainian economy’s development. A significant part of the world’s natural resources is located in Ukraine. There is a significant increase in the number of populations worldwide, as well as an increase in soil deficiency suitable for agriculture. Since Ukraine is an agricultural country and most of its lands are suitable for the production of agricultural products – it gives it significant advantages for both self-sufficiency and economic development. Ukraine has always been and remains an agrarian country. Most of its’ lands are suitable for the growing of agricultural products and it gives Ukraine the significant self-sustaining advantages for both exponential growth and supporting of country’s economy. Small farming stays the main factor of the agrarian sector’s development, it supports the economy and helps to sustain the natural resources of Ukraine.

Dynamics of Twin Deficits, Ricardian Equivalence, and Feldstein-Horioka Puzzle in South Asian Countries

This study examines the relationship between budget deficit and current account deficit, specifically twin deficits hypothesis, Ricardian equivalence hypothesis, and Feldstein-Horioka puzzle in South Asian countries. Results show that budget deficit and private savings investment balance do not affect current account deficit in the long run and rejects the Keynesian view of twin deficits hypothesis in South Asian countries. No causality exists between current account deficit and budget deficit in India, Pakistan, and Sri Lanka in short run, while bidirectional causality exists in Bangladesh. Ricardian equivalence hypothesis is rejected in Bangladesh and Sri Lanka, while it holds in India and Pakistan. Feldstein-Horioka puzzle exists in Bangladesh and Sri Lanka, while it does not exist in India and Pakistan. Structural reforms in fiscal and trade sector are required to avoid emergence of twin deficits, while an active and effective role of government is required for sustainable economic growth.

A Registration Space of the Kingdom of Spain: The Sector of the Acts of Civil Status

A registration space of the Kingdom of Spain that covers the legal statuses of subjects and the legal regimes of objects, is represented by three zones: international, public and private. The state registration area can be contingently divided into four sectors: Civil Status Registry Office, Notary, commercial and fiscal sectors. The author chooses the civil status registry office sector as a subject of research, since she believes that the registration of acts of civil status that determines the legal status of persons, identifies and individualizes participants in legal relations, is of primary importance in the registration space. Thus, the record of the birth of a child is the beginning of his social life (not biological). It is the record of the birth of a child that generates a stable political and legal relation with the state expressed in the acquisition of citizenship and it confirms the chil’s legal capacity. The author believes that the study of foreign experience of legal regulation, especially in modern conditions of digitalization, contributes to the improvement of their own legislation.

Transforming public finance under the impact of COVID-19

Devastating effects of the COVID-19 pandemic throughout the world enhance the societal requests for effective healthcare and social protection systems, modern education, and high-quality infrastructure. In Ukraine, education, healthcare, and social services have been chronically deteriorating, and the corona-crisis has further exacerbated their state and increased poverty in the country. The aim of this study is to reveal the main weaknesses of fiscal policy in Ukraine and to outline the prospects of public finance transformations under the impact of the COVID-19. To achieve this aim, the indicators of fiscal policy response to the pandemic in Ukraine are calculated and a comparative analysis of Ukraine’s public finance structure with the international patterns is undertaken. A moderate fiscal impulse and insufficient fiscal rescue package in Ukraine are shown. Moreover, the inconsistencies of anti-crisis fiscal policy instruments with the international best practice are revealed. Summarizing the available theoretical sources and recent applied research allows identifying the prospects of public finances transformations under the impact of the COVID-19 in a global context. Along with the obtained results of Ukraine’s fiscal sector analysis, these form the basis for shaping the fiscal policy response in Ukraine over the medium term. Proposals for public financing of Ukraine’s health care and educational sectors, of the social safety nets and infrastructures under the impact of the pandemic are developed. Offsetting measures from the expenditure and revenue sides of the budget are drawn up for closing the arising fiscal gaps.