Formation Of Budgets Research Articles

ON THE LEGAL BASIS OF PLANNING AND FORMING THE DEFENSE BUDGET OF UKRAINE

The article systematically investigates the legal bases of planning and formation of the defense budget of Ukraine. It is stated that the legal bases of the defense budget of Ukraine are the Constitution of Ukraine, the Budget Code of Ukraine, the Law of Ukraine «On National Security of Ukraine», the Strategic Defense Bulletin of Ukraine, the National Security Strategy, the Military Doctrine of Ukraine, the laws of Ukraine on the state budget for the respective year. It is stated that at the legislative level the sources of financing of defense expenditures are fixed: funds of the state budget of Ukraine, charitable donations, income from own economic activity of the Armed Forces of Ukraine. The mechanism and conditions for providing charitable assistance to the Armed Forces of Ukraine are described. The expediency of revising the Concept of economic and economic activity of the Armed Forces of Ukraine approved on April 19, 1997, approved by the President. The current Concept does not meet current conditions. It needs revision, based on Ukraine’s NATO course, of military aggression, reformatting the structure of the Armed Forces of Ukraine. It has been determined that the amount of defense expenditures as a percentage of the gross domestic product meets international standards. However, the weakness of the national economy indicates a lack of defense spending in dollar terms and in terms of one soldier. The expediency of optimizing the structure of expenditures, reorientation of creation of new administrative and economic units for project management in the sphere of defense, creation of an effective mechanism of public control over the distribution of defense expenditures is argued. Keywords: defense budget, legal framework, gross domestic product, national security, defense, budget, charitable donation, economic activity.

IMPROVING THE SYSTEM OF RURAL TERRITORIES MANAGEMENT IN UKRAINE

The questions of forming self-sufficient communities are considered in the article. The recommendations about improving a management system at the level of rural communities are developed directing on their productivity increase under the conditions of modern institutional changes. The main principles of self-government, which are the basis for development of an effective system of local self-government, are grounded.The modern system of management of the Ukrainian rural territories development should be constructed in a way that its main subjects to perform the functions, not to interfere with activity of each other and supplement it, that forms the united mechanism of providing comfort conditions for the population activity on the principles of social responsibility and partnership. The modern transformational changes of the rural territories institutional system are analyzed, in particular the threats as a result of implementation of the Concept of reforming the local self-government and power territorial organization in Ukraine were defined. It is possible to realize provisions of the Concept about transferring the majority of imperious functions of the Concept without deterioration of the services provided to the population only after expansion of the communities’ self-governing economic functions. The approach to the distribution of the state government and local self-government bodies’ functions in the sphere of a rural economy regulation is offered. The attention is focused that the functions of public authorities are oriented onto developing «rules of the game» and their performance supervising, and the functions of local government bodies are directed on creating the conditions for economic managing subjects which have important social value and prosecution for violating the state and society organizational and legal norms. The main directions of financial decentralization (formation of local budgets) are investigated in the article; also the priorities of forming economic incentives to the self-development and stimulation of Ukrainian rural communities economic growth are defined.

The State Budget in the Digital Age: Opportunities and Threats

The article is devoted to the changes in national budgets under the influence of digitization.
 The aim of the study is to determine the opportunities and threats posed by the development of the digital economy in the field of formation and implementation of national budgets, and to outline possible ways to effectively balance the potential benefits against the risks and limitations.
 This article argues that digitalization reshapes public finance. The main benefits of digital transformations such as increase of the tax base, optimization and transparency of government revenues and spending, fiscal savings, better tax administration, delivery of public services, administration of social programs, cutting of bureaucratic inefficiencies are considered. The most important risks and challenges, including privacy concerns, new avenues for fraud and evasion and institutional constraints are outlined.
 The article describes what governments should do to make benefits outweigh the risks. Taking full advantage of the opportunities of digitalization can require government to develop new skills. The article also stresses that each country needs to chart its own path to national budget digitalization that must depend on its own circumstances. It is concluded that developing countries may be able to leapfrog directly to the latest digital technologies and more sophisticated policies bypassing the intermediate stages.

Finansinių ataskaitų informacijos kokybės užtikrinimo beieškant: nuo bendrų principų iki neuroapskaitos

[only abstract in English; full article and abstract in Lithuanian]
 The aim of the article is to study the relationship between neuroscience and financial accounting, the fundamental aspects of decision-making and decision-making by accounting specialists from the perspective of neuroscience. Methods: conceptual, critical, systematic analysis of scientific literature, comparison and generalization.
 Properly grouped and presented information in the financial statements conveys a clear and understandable picture about an entity that has to reduce the level of entropy (uncertainty) of its users. The financial statements are prepared by accounting specialists, and it is therefore important that they, when preparing their reports, would replicate the details of economic events and economic facts as accurately the information of reports.
 Scientific literature does not have a common definition of the “quality of accounting information”, but the concept of the quality of financial statements can be considered in the context of their normative regulation. In this case, compliance with the basic accounting principles in the preparation of financial statements must ensure the quality of the reports. The results of the research carried out in Lithuania revealed that the overall average of the financial statements is 50-59%. The quality of financial reports is influenced by not only compliance with the general principles, but also the human factor.
 Neuroaccounting - the subcategory of neuroscience - is a new trend in the modern behavioural accounting based on the research of the activity of neurons involved in the human decision-making process. Neuroaccounting is a new way for scientific evaluation of accounting, and research results are important both for investors who analyse financial statements, for auditors who perform audit tasks, and for accountants, who record business events, analyse and reflect transactions, formation of budget and perform other accounting tasks. Neuroscience research methods can also be valuable in conducting research and determining how the brain of accounting specialists can resolve conflicts arising from the adoption of one or another decisions related to the presentation of economic transactions in accounting, their assessment as well as presentation of information about them in financial statements.

Механізм забезпечення ефективності виконання програм соціального захисту населення регіону

Досліджено сучасні підходи до реалізації регіональної соціальної політики. Акцентовано увагу на важливості програм соціального захисту населення при реалізації регіональної політики у соціальній сфері. Розроблено механізм забезпечення ефективності виконання програм соціального захисту населення, який охоплює основні напрями соціального захисту населення в регіоні.

Formation of budgets of local self governance in the system of social development of territorial communities

The subject of the study is theoretical and practical issues of the formation of budgets of local self-government in the system of social development of territorial communities. The purpose of the study is to reveal the priority tasks for improving the system of formation of budgets of local self-government. Research methods. The paper uses a set of scientific methods and approaches, including systematic, structural, comparative, factor methods, which allowed to realize the conceptual unity of the research. Results of work. The article reveals the role of local self-government budgets in the development of administrative-territorial units. A number of legislative and normative acts on regulation of the process of formation of budgets of local self-government are generalized. The priority tasks of the budget policy concerning support of territorial communities, strengthening of their tax capacity, increase of efficiency of coordination of activity of bodies of state power and local self-government are determined. The article is based on the establishment of an effective institutional framework for the formation of local self-government budgets in the system of social development of territorial communities. The field of application of results. System of state financial regulation, budgetary policy, budget system. Conclusions. The development of the budget system is possible by ensuring the sustainability of the formation of local government budgets in the system of social development of territorial communities, activating their innovation-investment component and strengthening the influence on the socio-economic development of administrative-territorial units. The importance of further enhancing the effectiveness and efficiency of the formation of local government budgets is conditioned by the need to increase the efficiency of the management of public financial resources in the conditions of their constraints, the development of a strategy for the development of local government budgets and the creation of institutional conditions for increasing their self-sufficiency, taking into account the cyclical nature of economic fluctuations and the impact of exogenous and endogenous factors in financially -budgetary environment. At this stage, the important task is to implement effective transformations of the system of forming local budgets by supporting voluntary associations of territorial communities, which necessitates the increase of efficiency and efficiency of administrative decisions of executive bodies and local governments in the field of strategic budget planning. It is advisable to improve the system of monitoring the socioeconomic efficiency of local government budget expenditures by using qualitative and quantitative indicators, introducing medium-term budget planning at the local level, adhering to the principle of transparency and accountability of local self-governance bodies to the public. Important tasks are improving the system of formation of local budgets taking into account application of modern financial-budget methods and tools; Creation of effective incentives to ensure the interest of local self-government bodies in the growth of their own income base and increase their level of responsibility for the use of budget resources; ensuring adequate revenues to local government budgets, and increasing the efficiency of the use of budget resources.

FINANCIAL POLICY AND ITS ROLE IN THE FORMATION OF LOCAL BUDGET REVENUES

Local budget revenues are a significant component of the financial relations system, and an effective financial policy for their formation determines the ability to meet local government expenditure commitments to ensure the social and economic development of territories. Qualitative and timely planning of local budget revenues influences the validity of indicators of social and economic development of the country and its administrative-territorial units. The purpose of the article is to iden-tify the features of financial policy and its role in shaping the revenues of local budgets in Ukraine and determine the directions of improving the processes of forming the revenues of local budgets. The article deals with the theoretical approaches to the formation of incomes of local budgets, acquires a special relevance on the path of European integration of Ukraine, since without the financial independence of local budgets with its numerous components and account of the tax potential of each territory, the con-struction and development of an effective national economy is impossible. The economic and social development of any country in many respects depends on the development of its territories. This, in turn, requires a proper financial policy implemented through the formation of local budgets. Local budgets are becoming increasingly important in the implementation of social and economic regulation, which is a decisive factor for their further development. The presence of a number of problems in the area of local budget revenues creates the need to expand the financial basis of local self-government as an important component of the mechanism for increasing the welfare of the population and economic development of communities in order to ensure a fair and impartial distribution of budgetary resources and compliance with the principles of balance and independence of budgets defined by the legislation.

The influence of decentralization on formation of local budgets in Ukraine

The influence of decentralization on formation of local budgets in Ukraine

Transparency of the budget process as a prerequisite for financial decentralization in Ukraine

The introduction of a qualitatively new type of relationship between citizens and authorities, one in which every person would be guaranteed real observation and protection of the rights and freedoms in these bodies activity, should be one of the priority areas of socio-political transformation in Ukraine. The urgency of the improving local finances, the formation of local budgets and the use of their funds is increasing due to changes in local self-government. The article proposes a scientific methodological approach to assessing the level of financial decentralization in Ukraine during the period of the decentralization reform (2014–2017). The universal integral indicator of financial decentralization has been calculated, which has found that local budgets improve public funds management, which is illustrated by the growth of the integral indicator level in dynamics. A number of recommendations are also provided for improving the budget process transparency for each of the components: budget information openness, the state and effectiveness of budgetary supervision, and public participation in the budget process. The idea of the relationship between the budget process transparency and the results of the financial decentralization reform is proposed.

Formation of "responsibility centers" in management of the aviation companies’ expenses

The study of sources of cost formation has been not learned enough in the practice of Ukrainian airlines. As a result the reserves of increasing operational efficiency have been not still utilized. Hence the request for the use of alternative methods of cost accounting, one of which is the concept of accounting for the centers of responsibility exists. The goal of the paper is to study the theoretical foundations of the formation of "the centers of responsibility" in managing the costs of the airline. This goal’s achievement involves such the tasks: to investigate the approaches to the classification of the centers of responsibility; to analyze the possibilities of functional and process budgeting on basis of the needs in evaluation the activities of the centers of responsibility; to identify the peculiarities of forming the operational budgets of the airline within the framework of a process-oriented approach; to develop an approach to accounting operational costs of airline. The methodological basis of the study is general scientific methods of analysis, synthesis, comparison, observation, and modeling. This methodological basis’s using allows achieving the following results. The structure and main functions of the responsibility centers has been investigated, the organizational structure and business processes of the Ukrainian Mediterranean Airlines have been learned, a model for the formation of operational budgets and a method of accounting for the display of operating costs have been worked out. The accounting and analytical tools of the responsibility centers provide a better description of the results of business processes, and also allows to form the system of indicators for functional areas. The basic structural-logical model of the responsibility centers ensures the flexibility of its adaptation to the organizational and functional structure of the airline. The method of process budgeting has appeared to be an optimal tool for analyzing and planning within this concept. This method allows managing the production functions of the airline more effectively in view of their contribution to the creation of additional cost.

THE NEW BUDGET RULE FOR 2018-2020

The article considers a new mechanism for the formation of the Russian budget. This work is a continuation of the study of the draft budget for 2015 and the planning period 2016 and 2017. The new budget rule is aimed mainly at stabilizing the economy. The purpose of the rule is to reduce the dependence of the budget on market incomes. The new budget rule will be applied from 2018 onwards. The main directions of the new budget plan are defined, among which the development of the defense, space and nuclear industries is traditionally. The possible consequences of an increase in tax rates are considered. In this regard, the emphasis is on the main changes in the draft budget. The decision to change the budget rule is due to the fact that the current mechanism has a positive feedback, that is, it can contribute both to excessive strengthening of the ruble, and to its excessive weakening. The conclusions of the impact of the new budget rule on macroeconomic indicators and the ruble exchange rate have been made. Progressiveness of taxation in the oil sector will remain, but with the growth of oil prices, the ruble rate will no longer react so much. This means that the economy of oil projects will move along with oil prices. At the same time, the course’s stability will stabilize the situation for the non-oil part of the economy.

BUDGETARY REVENUE BREAKDOWN AT REGIONAL LEVEL OF PUBLIC ADMINISTRATION IN THE FEDERAL COUNTRIES

Urgency of the research. Process of democratization of public administration assumes redistribution of powers down within hierarchy of governance. Nevertheless, despite increase in a role of regional level of governance, financial resources of regional bodies are limited. Target setting. Regions in the most of federal countries have no full financial self-sufficiency. The truth is also that in the federal countries there is no uniform model of distribution of public incomes between the central and regional authorities. The specified circumstances induce to carry out the comparative analysis of regional budgets' revenues breakdown in these countries. Actual scientific researches and issues analysis. Nowadays more and more researches are devoted to studying of experience of various countries in formation of local budgets’ resource base: Foremny D. et al., Bobáková V., Malikká L., Reznichenko D. S. et al., Muzyka O, Volokhova I. and some other are the most noticeable. Uninvestigated parts of general matters defining. At the same time, more careful comparative analysis is necessary for understanding of an overall picture and regularities of fixing of certain financial resources to regional budgets. The research objective. To identify structural features and the directions of transformation of budgetary revenue breakdown at regional level of public administration in the federal states from 2000 till 2015. The statement of basic materials. Statistical materials for assessment of budgetary revenue breakdown is processed. Dynamics of revenue’s structural changes for budgets of regional level of public governance at federal states as well as similarity and distinctions of revenue’s breakdowns of regional budgets in federal countries are analyzed. Conclusions. A tendency to reduction of own tax revenues and increase the interbudgetary transfers share was revealed as well as two clusters (with domination of interbudgetary transfers in regional budgets’ revenue breakdown and with relatively higher of financial autonomy) were described. There is no strong evidence for real dependence between autonomy of the regional power and federal type of state system.

Проблеми реформування європейського союзу на сучасному етапі.

The article considers the key aspects of the European Union reforming at the present stage. Currently the European Union is in the process of deep transformational reformation, that’s why it is important to find out their nature and possible consequences. An attempt is made to show the interconnection of internal and foreign poilicy problems of EU with the choice of the future path of European integration in the direction of expansion or deepening. The main scenarios for the future development of the EU are described, as well as the propositions of the President of France Emmanuel Macron to reform the Community. The priority directions of future reforms are particularly estimated, such as: security and migration policy, joint financing of innovation projects, and also the formation of an overall budget for coordination of investment activity and stabilization in case of future economic crises. It was paid attention to the peculiarities of the EU integration in the security and defense fields and there changes towards its European partners since Brexit and the evolution of the US policy.A special emphasis in the publication is made on realization of a practical step in reforms – creation of a new defense and security project PESCO, which is intended to make European defense more effective and to strengthen operational cooperation between countries. The main idea of cooperation in this form is to increase efficiency through the joint implementation of what every country has done by its own before. At the same time it is important that participation in the projects of each country is voluntary. Currently the EU is considered not only as a powerful economic association, but also as a very powerful player in the international arena, which influences on the maintenance of continual international order. That’s why the article presents an analysis of the peculiarities of transformations that are necessary for the further viability of the EU.

Теоретико-методологічне обґрунтування розвитку місцевих бюджетів в умовах децентралізації

Теоретико-методологічне обґрунтування розвитку місцевих бюджетів в умовах децентралізації

BUDGET CONTROL WHEN PLANNING LOCAL BUDGETS

Introduction. Most of the local budgets are subsidized, there are many shortcomings in planning the revenue and expenditure part of the budgets, a rather high level of violations when considering and taking decisions on local budgets, which, accordingly, does not carry out a number of socio-economic functions of local self-government bodies. Therefore, the key role in reducing all of the above-mentioned negative phenomena, which are currently present in the process of forming local budgets, is allocated to budget control. Purpose. The purpose of the article is to analyze the current state of budget control in drafting, reviewing and making decisions about local budgets in order to identify the most significant problems and outline ways of their solution taking into account therealities of the modern economy. Results.To date, there are many shortcomings in the planning of the revenue and expenditure part of the budgets, as well as a rather high level of violations when considering and making decisions about local budgets, due to which the number of socioeconomic functions of local self-government bodies is not carried out accordingly. In 2017, at the time of the inspection, the facts of conducting operations with allocation of budget funds for the total amount of UAH 99.4 million were detected in violation of the legislation, which is UAH 20.9 million. more than in the previous year, incl. Violation of funds from the state budget – 58.6 million UAH, with funds from local budgets – more than 40.8 million UAH. A key role in reducing all of the above-mentioned negative phenomena, which are currently present in the process of formation of local budgets, is allocated to budget control. Conclusions. The conducted research of the practice of budget control in drafting, reviewing and taking decisions on local budgets made it possible to formulate the following conclusions and proposals: it is necessary to form a single mechanism for calculating the planned and forecast indicators of revenues of local budgets; it is necessary to increase the level of openness and transparency in the process of drafting local budgets; it is worth improving the legislative framework that would oblige local authorities to involve public representatives in the process of preparing and adopting decisions on local budgets.

REGIONAL ASPECTS OF DEVELOPMENT AND MODERNIZATION OF THE TEXTILE INDUSTRY OF UKRAINE

The article states that one of the leading branches of the economy, which largely ensures the formation of the state budget and is an important factor in the development of other sectors, such as agriculture and the chemical industry, is light industry, including textiles. However, in Ukraine, these spheres of activity have been in a crisis for many years. The question arises as to finding out the reasons that prevent the outbreak of the crisis and justify the directions of further development of the textile industry.

СТАЛИЙ РОЗВИТОК «ВИДОБУВНИХ» ОТГ У КОНТЕКСТІ ВПРОВАДЖЕННЯ ДЕМОКРАТИЧНИХ ПРАКТИК ПУБЛІЧНОГО УПРАВЛІННЯ

The issue of sustainable community development is very relevant in Ukrainian realities. There is found in the article that the main factors that determine the sustainable development of the community are the availability and productivity of extractive resources, human capital, greening of economic development, the quality of local development management. There is analyzed in the article that communities which have significant mineral reserves and actively develop them, the issue of sustainable development and active community participation in the formation and distribution of local budgets is critical. After all, in modern socio-economic conditions due to the violation of the production processes, in many territorial communities of Ukraine, where hydrocarbon production is carried out, the threat of environmentally dangerous man-made accidents and catastrophes has increased significantly. This highlights the need to strengthen the targeted use of funds received by local budgets of territorial communities from the usage of subsoil, in particular by directing them to support socio-economic development, repair of roads and engineering and social infrastructure, strengthening environmental safety. Residents of almost all territorial communities of Ukraine, as a rule, do not even have a general idea of the amount of revenues to the local budget and the structure of its revenue and expenditure parts. There is proposed in the article strengthening community participation through democratic practices (public hearings, participation budgets, discussions, competitions for local initiatives, e-petitions, etc.). Also a separate item of the proposals is the introduction of open data resources, which will reduce the corruption component and minimize the shadow component. In addition, open data resources provide a significant increase in the efficiency of using the financial and budgetary potential of the respective territorial communities.

THEORETICAL ASPECTS OF BUDGET DECENTRALIZATION IN THE CONTEXT OF PUBLIC ADMINISTRATION REFORMS IN UKRAINE

Introduction.The urgency of studying theoretical foundations of budget decentralization for Ukraine is conditioned by the necessity of developing an effective scheme of macroeconomic regulation of social and economic processes in the context of decentralization. The process of social and economic development in Ukraine on a democratic and legal basis is impossible without increasing the role of the local self-government. Decentralization is one of the main motive forces in reforming self-government today. The purposeis deepening theoretical and methodological principles of budget decentralization and theoretical aspects of budget decentralization with the definition of its influence on processes of state regulation in Ukraine. Results.It is substantiated that in modern science theoretical aspects of decentralization are considered in relation to its types. The classification of decentralization types is carried out depending on their characteristics: financial (fiscal) one is the process of distribution of functions, financial resources and responsibility for their use between central and local levels of management; budget one, in the broadest sense, is the division of responsibility between authorities of different levels (including national governments, regional authorities and local self-government bodies) with the management of budgetary resources; in the narrow sense it is the presence of certain functions and powers at the local level, autonomy of local authorities in making independent decisions in the fiscal sphere. Conclusions.It is substantiated that budget and financial decentralization considerably influences the formation of local budgets. It is found that the decentralization course shows both prospects and problems of the Ukrainian development. Grouping the main benefits and positive effects of decentralization is carried out. The research analysis made it possible to establish that decentralization may have the risks and dangers grouped in the article.

INCREASING THE EFFECTIVENESS OF THE UNIVERSITY BASED ON ECONOMIC MODELING

The article is the research paper, with case elements and illustration of specific calculations based on the developed model using the data of a pilot university. Its goal is to form a model for decision support system for the effective use of the institution’s property, investigate the model for specific university’s data and propose recommendations for improving the effectiveness of the university as a whole. The problem of analyzing the budget sufficiency for maintaining the university’s assets and ensuring its current activities is examined in the paper, as well as the opportunity of increasing the efficiency of the use of property. The model is proposed for decision support system for the property of the institution. This model is formed from several submodels: «educational activity», «scientific activity», «living activity», «expenses», «development of the property», and «budget». The model can be used for simulation «what if» analysis of different scenarios of the external and internal parameters (in particular, to estimate the achievement of the strategic goals of the university) and forecasting the results of activities. The methodological basis of the research included general scientific methods, such as analysis and synthesis, modeling and classification, as well as methods of decision theory. Simulation calculations allow us to identify the most significant factors in the impact on the financial result of the university. In particular, for the scenario of high degree of occupancy of premises, the growth in the number of students (admission control indicators) requires the construction of new buildings under current operating conditions and is possible only with the support of the state. The scenario of increasing the efficiency of the use of property makes it possible to achieve the growth of the target indicators of the university without additional investments from the state. For the scenario of a decrease in the contingent of students, the model allows the estimation of the necessary amount of optimization of the specific economic parameters for the formation of a no-deficit budget. The complex covers the educational and scientific activities of the university, the formation of a timetable for students and the occupancy of audiences, maintenance of rooms and hostels, as well as the budget of the university making the developed model new. It is expected that this approach is applicable for different institutions of higher education. The application of the model for the conditions of specific universities will allow their management to set the parameters for the development of the university for the goal-targeted approach for the development. In the future, researchers can develop the model under detailed empirical data, taking into account the variety of internal and external factors. The results of this study van be of practical importance for vice-rectors on economics, administrative affairs, heads of financial and economic departments as well as university executives responsible for taking decisions on strategy development in the context of limited budget taking into account risks.

Some issues on the transition of the Kyrgyz Republic to the formation of budget on the program basis

Some issues on the transition of the Kyrgyz Republic to the formation of budget on the program basis